SmartStop Self Storage REIT Reports 13% Revenue Growth but Net Loss in Q2 2025

SmartStop Self Storage REIT, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $66.8 million, a 13% increase from $59.2 million in the same period last year. The growth was primarily driven by a rise in self-storage rental revenue, which reached $58.2 million, up from $52.7 million in the prior year. The company also noted an increase in ancillary operating revenue and managed REIT platform revenues, contributing to the overall revenue growth. However, SmartStop recorded a net loss of $4.8 million for the quarter, compared to a loss of $0.7 million in the previous year, reflecting increased operating expenses and interest costs.

In terms of operational metrics, SmartStop's same-store revenue increased by approximately 0.4%, attributed to a slight rise in average occupancy rates. The company managed 171 self-storage facilities across 20 states and Canada, with a total of 118,225 units and 13.5 million net rentable square feet. The average physical occupancy rate stood at 92.6%, indicating stable demand for its storage units. The company also reported a significant increase in property operating expenses, which rose to $22.1 million, largely due to higher payroll costs and stock-based compensation related to its recent IPO.

Strategically, SmartStop has been active in expanding its portfolio, acquiring several self-storage facilities during the first half of 2025. Notable acquisitions included properties in New Jersey, Tennessee, and Texas, totaling approximately $221.9 million. The company also completed a successful underwritten public offering, generating net proceeds of approximately $875.6 million, which were utilized to fund acquisitions and pay down debt, including the redemption of $200 million in Series A Convertible Preferred Stock.

Looking ahead, SmartStop anticipates continued challenges in the self-storage market due to economic conditions, including inflation and rising interest rates, which may impact pricing power and revenue growth. The company plans to focus on operational efficiencies and strategic acquisitions to enhance its market position. Additionally, SmartStop aims to maintain its REIT status and continue providing returns to shareholders through dividends, with recent distributions set at $0.1315 per share for June and $0.1359 for July 2025. The company remains committed to leveraging its operational capabilities and market presence to drive long-term growth.