Strategic Storage Growth Trust Inc. (SSGT) and Strategic Storage Trust II Inc. (SST II), both public, non-traded, self-storage real estate investment trusts (REIT) sponsored by SmartStop Asset Management LLC, have released their financial statements for the second quarter of 2018, which ended June 30. In general, the companies showed year-over-year gains in total revenue, same-store revenue and net operating income (NOI).
SSGT increased total revenue 57 percent to $1.7 million, while same-store revenue and NOI grew 7.8 percent and 6.2 percent, respectively, compared to the same period in 2017.
Average physical occupancy was 88.5 percent at the end of the quarter, down from 92.5 percent the previous year. The REIT reported growth in same-store annualized rent per occupied square foot, showing an increase of 14 percent ($13.84) year over year. Modified funds from operation grew 1.8 percent to $673,981 compared to the same period in 2017.
SSGT acquired a self-storage facility in McKinney, Texas, during the quarter for $10.4 million. It also completed development and opened a new property in Stoney Creek, Ontario, Canada.
“We continue to experience solid growth in SSGT’s portfolio, both in our same-store results and in our more recent lease-up acquisitions and completed developments,” said H. Michael Schwartz, chairman and CEO.
After factoring operating and other income expenses, SSGT reported a net loss for the quarter of about $1.2 million, up slightly from a loss of about $1.1 million from the same period a year ago. The REIT took in more than $4.6 million in self-storage rental revenue and $144,496 in ancillary operating revenue during the quarter.
SST II increased total revenue 5 percent to $1 million, while same-store revenue and NOI grew 3.9 percent and 2.9 percent, respectively, compared to the same period in 2017.
Average physical occupancy was 88.7 percent at the end of the quarter, down from 93.7 percent the previous year. The REIT reported growth in same-store annualized rent per occupied square foot, showing an increase of 10.1 percent ($15.95) year over year. Modified funds from operation declined 6.8 percent to $4.7 million compared to the same period last year.
“Our results thus far in 2018 remain solid, despite moderate property-tax expense headwinds,” Schwartz said. “Our annualized revenue per occupied square foot continues to climb in both the U.S. and Toronto, and our lease-up assets continue to fill up, both indicators of our strong North American portfolio.”
After factoring operating and other income expenses, SST II reported a net loss for the quarter of about $1.4 million, an improvement from a loss of $3.5 million from the same period a year ago. The REIT took in more than $19.5 million in self-storage rental revenue and $490,036 in ancillary operating revenue during the quarter.
The SSGT portfolio includes 27 self-storage facilities in 10 states comprising approximately 2 million net rentable square feet in 18,400 units. The SST II portfolio includes 83 self-storage facilities in Canada and the United States. It comprises approximately 51,300 self-storage units and about 6 million rentable square feet of storage space. Both companies are sponsored by SmartStop Asset Management, a diversified real estate company with a managed portfolio of 118 self-storage facilities in Canada and the United States. Its managed properties comprise approximately 8.6 million rentable square feet.
