SmartStop Self Storage REIT Reports 14.7% Revenue Growth but Net Loss in Q1 2025

SmartStop Self Storage REIT, Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $65.4 million, a 14.7% increase from $57.0 million in the same period last year. The growth was primarily driven by a rise in self-storage rental revenue, which reached $56.6 million, up from $50.5 million, alongside a notable increase in Managed REIT Platform revenues, which rose to $4.1 million from $2.7 million. Despite the revenue growth, the company experienced a net loss of $5.5 million, compared to a loss of $1.6 million in the prior year, attributed to higher interest expenses and acquisition costs.

In terms of operational metrics, SmartStop's same-store revenues increased by 3.2%, reflecting a slight uptick in average occupancy rates and annualized rent per occupied square foot. The company owned 164 self-storage facilities across 20 states and Canada as of March 31, 2025, with a total of approximately 112,700 units and 12.8 million net rentable square feet. The company also reported a significant increase in property operating expenses, which rose to $20.1 million from $17.4 million, largely due to rising property insurance costs and payroll expenses.

Strategically, SmartStop completed several acquisitions during the quarter, including properties in New Jersey and Tennessee, totaling approximately $82.4 million. The company also announced plans for further acquisitions, with agreements in place for nine additional self-storage facilities valued at approximately $157.8 million. Following a successful underwritten public offering that raised approximately $931.5 million, SmartStop used the proceeds to pay down significant debt, including the full repayment of its 2025 KeyBank Acquisition Facility and a substantial portion of its Credit Facility.

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 occupancy levels. However, the company remains optimistic about its growth strategy, focusing on operational efficiencies and potential expansion through its Managed REIT Platform. The management emphasized its commitment to maintaining its REIT status and maximizing shareholder value through disciplined capital management and strategic acquisitions.