SmartStop Self Storage REIT, Inc.
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
SMA$38.92+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0000950170-25-105824
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001193125-25-272347
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 203 previous paragraphs and 201 current paragraphs.
112 unchanged; 82 reworded; 7 added; 5 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
On October 1, 2025, pursuant to a contribution agreement (the “Contribution Agreement”), we acquired Argus Professional Storage Management, LLC (“Argus”). The principal assets acquired were property management contracts, covering the management of more than 225 properties and 400 employees (as of September 30, 2025), and an operating lease for their corporate headquarters in Tucson, Arizona and other intellectual and personal property.
Current report
Recent Tax Legislation
Current report
Effective July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. Certain provisions of OBBBA modified U.S. tax law and impact us and our shareholders. Among other changes, this legislation (i) permanently extended the 20% deduction for “qualified REIT dividends” for individuals and other non-corporate taxpayers under Section 199A of the Code, (ii) permanently reinstated 100% bonus depreciation for certain property acquired after January 19, 2025, (iii) increased the percentage limit under the REIT asset test applicable to taxable REIT subsidiaries from 20% to 25% for taxable years beginning after December 31, 2025, and (iv) increases the base on which the 30% interest deduction limit under Section 163(j) of the Code applies by excluding depreciation, amortization and depletion from the definition of “adjusted taxable income” for taxable years beginning after December 31, 2024. We are currently evaluating the provisions of OBBBA, but do not expect it to have a material impact on our Consolidated Financial Statements.
Current report
Comparison of the nine months ended September 30, 2025 and 2024
Current report
Cash flows provided by financing activities for the nine months ended September 30, 2025 and September 30, 2024 were approximately $304.9 million and $19.1 million, respectively, an increase of approximately $285.8 million. The increase in cash provided by financing activities is primarily due to the net IPO proceeds of approximately $874.2 million, offset by the $200.0 million redemption of Series A Convertible Preferred Stock and net reductions in cash flows related to debt financing proceeds in the prior year and net repayments in the current year of approximately $384.9 million.
Current report
The RBC JV Term Loan, RBC JV Term Loan II, and SmartCentres Financing were all refinanced on October 31, 2025. See Note 14 – Subsequent Events, of the Notes to the Consolidated Financial Statements contained in this report for additional information.
Current report
As of June 30, 2025, SST VI closed the primary portion of its public offering. The Sponsor Funding Agreement was terminated immediately in connection with the closedown of SST VI’s primary offering. In accordance therewith, we have no further funding obligation in connection with the Sponsor Funding Agreement.
Removed paragraphs (5)
Previous report
Comparison of the six months ended June 30, 2025 and 2024
Previous report
Loss on Debt Extinguishment
Previous report
Cash flows provided by financing activities for the six months ended June 30, 2025 were approximately $230.1 million, and cash flows used by financing activities for the six months ended June 30, 2024 were approximately $29.1 million, respectively, a change of approximately $259.2 million. The increase in cash provided by financing activities is primarily due to the net proceeds received on the 2028 Canadian Notes of approximately $111.4 million and from the Credit Facility in the amount of approximately $65.0 million, which were utilized to fund acquisitions and for general corporate purposes and was not used to pay-down other pre-existing debt. The net IPO proceeds were nearly fully utilized to pay down debt and redeem in full our Series A Convertible Preferred Stock; we otherwise retained approximately $24.8 million thereof. Other more minor favorable improvements which served to increase the improvement in net cash provided by financing activities during the six months ended June 30, 2025, as compared to June 30, 2024 include reductions in debt issuance costs and cash utilized for redemptions of common stock.
Previous report
Through June 30, 2025, we had incurred approximately $10.2 million in connection with the Sponsor Funding Agreement, representing approximately 1.1 million Series C Units issued by SST VI OP. During the six months ended June 30, 2025 we incurred approximately $0.9 million, of which approximately $0.1 million was accrued as a payable pursuant to the Sponsor Funding Agreement.
Previous report
As of June 30, 2025, the maximum remaining commitment of SRA pursuant to the Sponsor Funding Agreement was approximately $0.2 million.
Reworded paragraphs (82)
Previous wording
We focus on the acquisition, ownership, and operation of self storage properties located primarily within the top 100 metropolitan statistical areas, or MSAs, throughout the United States and Canada. Based on the Inside Self Storage Top-Operators List ranking for 2024, and after accounting for recent market transactions, we are the 10th largest owner and operator of self storage properties in the United States based on number of properties, units, and rentable square footage. As of June 30, 2025, our wholly-owned portfolio consisted of 171 operating self storage properties diversified across 20 states, the District of Columbia, and Canada comprising approximately 118,000 units and 13.5 million net rentable square feet. Additionally, we owned a 50% equity interest in eleven unconsolidated real estate ventures located in Canada, which included ten operating self storage properties, and one other property, which is being developed into a self storage property. Further, through our Managed REIT Platform (as defined below), we serve as the sponsor of Strategic Storage Trust VI, Inc., a publicly-registered non-traded REIT (“SST VI”), Strategic Storage Growth Trust III, Inc., a private REIT (“SSGT III”), and Strategic Storage Trust X, a private net asset value REIT launched in January 2025, ("SST X" and together with SST VI and SSGT III, the “Managed REITs”), additionally, we manage one other self storage property for an affiliated entity, which pays us fees, as applicable, to manage such property. Inclusive of this aforementioned property and the Managed REIT's, in total, as of June 30, 2025, we managed 49 operating self storage properties which we did not directly own.
Current wording
We focus on the acquisition, ownership, and operation of self storage properties located primarily within the top 100 metropolitan statistical areas, or MSAs, throughout the United States and Canada. As of September 30, 2025, based on the Inside Self Storage Top-Operators List ranking for 2025, and before accounting for the October 1, 2025 acquisition of Argus, we were the 10th largest owner and operator of self storage properties in the United States based on number of properties, units, and rentable square footage. As of September 30, 2025, our wholly-owned portfolio consisted of 177 operating self storage properties diversified across 20 states, the District of Columbia, and Canada comprising approximately 121,800 units and 13.9 million net rentable square feet. Additionally, we owned a 50% equity interest in 12 unconsolidated real estate ventures located in Canada, which included ten operating self storage properties, one property which is being developed into a self storage property, and another parcel of land which we intend to develop. Further, through our Managed REIT Platform (as defined below), we serve as the sponsor of Strategic Storage Trust VI, Inc., a publicly-registered non-traded REIT (“SST VI”), Strategic Storage Growth Trust III, Inc., a private REIT (“SSGT III”), and Strategic Storage Trust X, a private net asset value REIT launched in January 2025, ("SST X" and together with SST VI and SSGT III, the “Managed REITs”), additionally, we manage one other self storage property for an affiliated entity, which pays us fees, as applicable, to manage such property. Inclusive of this aforementioned property, the Managed REIT's, and the properties owned by Delaware statutory trusts ("DSTs") sponsored and operated pursuant to a lease with the DSTs by one of the Managed REITs, in total, as of September 30, 2025, we managed 49 operating self storage properties which we did not directly own.
Previous wording
Our primary business model is focused on owning and operating high quality self storage properties in high growth markets in the United States and Canada. We finance our portfolio through a diverse capital strategy which includes cash generated from operations, borrowings under our syndicated revolving line of credit, secured and unsecured debt financing, equity offerings and joint ventures. Our business model is designed to maximize cash flow available for distribution to our stockholders and to achieve sustainable long-term growth in cash flow in order to maximize long-term stockholder value at acceptable levels of risk. We execute our organic growth strategy by pursuing revenue-optimizing and expense-minimizing opportunities in the operations of our existing portfolio. We execute our external growth strategy by developing, redeveloping, acquiring and managing self storage facilities in the United States and Canada both internally and through our Managed REITs, and we look to acquire properties that are physically stabilized, recently developed, in various stages of lease up or at certificate of occupancy. We seek to acquire undermanaged facilities that are not operated by institutional operators, where we can implement our proprietary management and technology to maximize net operating income.
Current wording
Our primary business model is focused on owning and operating high quality self storage properties in high growth markets in the United States and Canada. We finance our portfolio through a diverse capital strategy which includes cash generated from operations, borrowings under our syndicated revolving line of credit, secured and unsecured debt financing, equity offerings and joint ventures. Our business model is designed to maximize cash flow available for distribution to our stockholders and to achieve sustainable long-term growth in cash flow in order to maximize long-term stockholder value at acceptable levels of risk. We execute our organic growth strategy by pursuing revenue-optimizing and expense-minimizing opportunities in the operations of our existing portfolio. We execute our external growth strategy by developing, redeveloping, acquiring and managing self storage facilities in the United States and Canada both internally and through our Managed REITs and prospectively through our acquisition of Argus, and we look to acquire properties that are physically stabilized, recently developed, in various stages of lease up or at certificate of occupancy. We seek to acquire undermanaged facilities that are not operated by institutional operators, where we can implement our proprietary management and technology to maximize net operating income.
Previous wording
Additionally, we may look to establish our third-party management platform in both Canada and the United States, either through the development of our own third-party management platform or an investment in an existing third-party management platform.
Current wording
Additionally, we plan to continue to expand our third-party management platform in both Canada and the United States, by scaling our Argus third-party management platform or through additional investments in or acquisitions of third-party management firms.
Previous wording
We have provided financing to the Managed REITs in the form of mezzanine loans, bridge loans and promissory notes, as applicable. We intend to continue in this practice going forward, if necessary. We may look to expand our lending practice to self storage facilities outside of the Managed REITs, potentially to third party managed properties or joint venture properties. We may enter into joint ventures or other forms of co-investments in order to scale our overall property count and diversify our portfolio of properties. Joint ventures may also allow us to acquire an interest in a property without requiring that we fund the entire purchase price, but for which we would target being the property manager, both in the U.S. and Canada.
Current wording
We have provided financing to the Managed REITs in the form of mezzanine loans, bridge loans, promissory notes, and preferred equity as applicable. We intend to continue in this practice going forward, if necessary. We may look to further expand our lending practice to self storage facilities outside of the Managed REITs, potentially to third party managed properties or joint venture properties. We may enter into joint ventures or other forms of co-investments in order to scale our overall property count and diversify our portfolio of properties. Joint ventures may also allow us to acquire an interest in a property without requiring that we fund the entire purchase price, but for which we would target being the property manager, both in the U.S. and Canada.
Previous wording
As an operating business, self storage requires a much greater focus on strategic planning and tactical operation plans. Our in-house call center allows us to centralize our sales efforts as we capture new business over the phone, email, web-based chat, and text mediums. As we have grown our portfolio of self storage facilities, we have been able to consolidate and streamline a number of aspects of our operations through economies of scale. We also utilize our digital marketing breadth and expertise which allows us to acquire customers efficiently by leveraging our portfolio size and technological proficiency.
Current wording
As an operating business, self storage requires a much greater focus on strategic planning and tactical operation plans. Our in-house call center allows us to centralize our sales efforts as we capture new business over the phone, email, web-based chat, and text mediums. As we have grown our portfolio of self storage facilities, we have been able to consolidate and streamline a number of aspects of our operations through economies of scale. We also utilize our digital marketing breadth and expertise which allows us to acquire customers efficiently by leveraging our portfolio size and technological expertise. To the extent we acquire facilities in clusters within geographic regions, we generally see property management efficiencies resulting in reduction of personnel and other administrative costs.
Previous wording
As discussed herein, we, through our subsidiaries, currently serve as the sponsor of SST VI, SSGT III, and SST X. We operate the properties owned by the Managed REITs, which together with one other self storage property we manage consist of, as of June 30, 2025, 49 operating properties and approximately 39,500 units and approximately 4.3 million rentable square feet. In addition, we have the internal capability to originate, structure and manage additional self storage investment programs (the “Managed REIT Platform”) which would be sponsored by SmartStop REIT Advisors, LLC (“SRA”), our indirect subsidiary. We acquired the Managed REIT Platform in 2019 from Strategic Asset Management I, LLC (f/k/a SmartStop Asset Management, LLC), our former sponsor ("SAM"). We generate asset management fees, property management fees, acquisition fees, and other fees and also receive substantially all of the tenant protection program revenue earned by our Managed REITs. For the property management and advisory services that we provide, we are reimbursed for certain expenses that otherwise helps to offset our net operating expense burden.
Current wording
As discussed herein, we, through our subsidiaries, currently serve as the sponsor of SST VI, SSGT III, and SST X. We operate the properties owned by the Managed REITs, the properties owned by the ("DSTs") sponsored and operated pursuant to a lease with the DSTs by one of the Managed REITs, which together with one other self storage property we manage consist of, as of September 30, 2025, 49 operating properties and approximately 40,000 units and approximately 4.4 million rentable square feet. In addition, we have the internal capability to originate, structure and manage additional self storage investment programs (the “Managed REIT Platform”) which would be sponsored by SmartStop REIT Advisors, LLC (“SRA”), our indirect subsidiary. We generate asset management fees, property management fees, acquisition fees, and other fees and also receive substantially all of the tenant protection program revenue earned by our Managed REITs. For the property management and advisory services that we provide, we are reimbursed for certain expenses that otherwise helps to offset our net operating expense burden.
Previous wording
As of June 30, 2025, our wholly-owned operating self storage portfolio was comprised as follows:
Current wording
As of September 30, 2025, our wholly-owned operating self storage portfolio was composed as follows:
Previous wording
Includes all rentable units, consisting of storage units and parking (approximately 3,500 units).
Current wording
Includes all rentable units, consisting of storage units and parking (approximately 3,600 units).
Previous wording
Includes all rentable square feet, consisting of storage units and parking (approximately 1,068,000 square feet).
Current wording
Includes all rentable square feet, consisting of storage units and parking (approximately 1,100,000 square feet).
Previous wording
Represents rental income (excludes administrative fees, late fees, and other ancillary income) for all facilities we owned in a state or province divided by our total rental income for the six months ended June 30, 2025.
Current wording
Represents rental income (excludes administrative fees, late fees, and other ancillary income) for all facilities we owned in a state or province divided by our total rental income for the nine months ended September 30, 2025.
Previous wording
Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible assets and other intangible assets acquired. Goodwill is allocated to various reporting units, as applicable, and is not amortized. We perform an annual qualitative impairment assessment as of December 31 for goodwill; between annual tests we evaluate the recoverability of goodwill whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be fully recoverable. If circumstances indicate the carrying amount may not be fully recoverable, we perform a quantitative impairment test of goodwill to compare the fair value of each reporting unit to its respective carrying amount. If the carrying amount of goodwill exceeds its fair value, an impairment charge will be recognized. No impairment charges to goodwill were recognized during the six months ended June 30, 2025 and 2024.
Current wording
Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible assets and other intangible assets acquired. Goodwill is allocated to various reporting units, as applicable, and is not amortized. We perform an annual qualitative impairment assessment as of December 31 for goodwill; between annual tests we evaluate the recoverability of goodwill whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be fully recoverable. If circumstances indicate the carrying amount may not be fully recoverable, we perform a quantitative impairment test of goodwill to compare the fair value of each reporting unit to its respective carrying amount. If the carrying amount of goodwill exceeds its fair value, an impairment charge will be recognized. No impairment charges to goodwill were recognized during the nine months ended September 30, 2025 and 2024.
Previous wording
The broader economy has been experiencing elevated levels of inflation, higher interest rates (including higher mortgage rates), tightening monetary and fiscal policies and a slowdown in home sales and population mobility. These dynamics resulted in a reduction in pricing power for self storage operators, leading to a deceleration in revenue growth in 2023 and once again in 2024. Without a near term change in monetary policy and subsequent reduction in mortgage rates, we expect self storage demand to remain reduced relative to COVID-19 era demand and more comparable to historical averages. While the broader interest rate and inflationary environment has moderated since the beginning of 2024, broader demand for self storage has not returned to pre-COVID-19 era levels thus far in 2025. Continued improvements in such factors could lead to increasing levels of population mobility, specifically amongst single family home buyers and sellers, which could increase demand for self storage. Based on these dynamics, we believe that disciplined self storage operators will generate revenue growth in the near term and will continue to drive revenue through various economic cycles.
Current wording
The broader economy in the U.S. has been experiencing elevated levels of inflation, higher interest rates (including higher mortgage rates), tightening monetary and fiscal policies and a slowdown in home sales and population mobility. These dynamics resulted in a reduction in pricing power for self storage operators, leading to a deceleration in revenue growth in 2023 and once again in 2024. Without a near term change in monetary policy and subsequent reduction in mortgage rates, we expect self storage demand to remain reduced relative to COVID-19 era demand and more comparable to historical averages. While the broader interest rate and inflationary environment has moderated since the beginning of 2024, broader demand for self storage has not returned to pre-COVID-19 era levels thus far in 2025. Continued improvements in such factors could lead to increasing levels of population mobility, specifically amongst single family home buyers and sellers, which could increase demand for self storage. Based on these dynamics, we believe that disciplined self storage operators will generate revenue growth in the near term and will continue to drive revenue through various economic cycles.
Previous wording
From a supply perspective, the top 50 MSA’s in the United States saw a historically elevated amount of new self storage supply come online from 2018 to 2023, both on an absolute and relative basis. This new supply outpaced population growth in the same markets by nearly five times during that period. We believe the broader shift of people working from home related to the COVID-19 pandemic, elevated migration patterns and strength in the housing market helped drive revenue growth in self storage demand and absorb this supply. These demand drivers produced a 36-month period in which self storage industry fundamentals were very strong relative to historical operating levels, including all-time high occupancy and revenue growth. However, as COVID-related demand waned in 2023, many of the tenants that rented due to the COVID-19 pandemic vacated. We expect the new supply delivered in the recent past to continue to be absorbed and we expect only moderate growth in new supply through 2026.
Current wording
From a supply perspective, the top 50 MSA’s in the United States saw a historically elevated amount of new self storage supply come online from 2018 to 2023, both on an absolute and relative basis. This new supply outpaced population growth in the same markets by nearly five times during that period. We believe the broader shift of people working from home related to the COVID-19 pandemic, elevated migration patterns and strength in the housing market helped drive revenue growth as a result of elevated self storage demand and absorb this supply. These demand drivers produced a 36-month period in which self storage industry fundamentals were very strong relative to historical operating levels, including all-time high occupancy and revenue growth. However, as COVID-related demand waned in 2023, many of the tenants that rented due to the COVID-19 pandemic vacated. We expect the new supply delivered in the recent past to continue to be absorbed and we expect only moderate growth in new supply through 2026.
Previous wording
As of June 30, 2025 and 2024, we wholly-owned 171 and 155 operating self storage facilities, respectively.
Current wording
As of September 30, 2025 and 2024, we wholly-owned 177 and 157 operating self storage facilities, respectively.
Previous wording
Our operating results for the three months ended June 30, 2025 included full quarter results for 164 self storage facilities, and partial period results for seven self storage facilities. Our operating results for the three months ended June 30, 2024 included full quarter results for 154 self storage facilities, and partial period results for one self storage facility.
Current wording
Our operating results for the three months ended September 30, 2025 included full quarter results for 171 self storage facilities, and partial period results for six self storage facilities. Our operating results for the three months ended September 30, 2024 included full quarter results for 156 self storage facilities, and partial period results for one self storage facility.
Previous wording
Our operating results for the six months ended June 30, 2025 included full period results for 161 self storage facilities, and partial period results for ten self storage facilities. Our operating results for the six months ended June 30, 2024 included full period results for 154 self storage facilities, and partial period results for one self storage facility.
Current wording
Our operating results for the nine months ended September 30, 2025 included full period results for 161 self storage facilities, and partial period results for 16 self storage facilities. Our operating results for the nine months ended September 30, 2024 included full period results for 154 self storage facilities, and partial period results for three self storage facility.
Previous wording
In addition to the above noted substantial acquisition activity, which occurred during the twelve months ended June 30, 2025, during the three months ended June 30, 2025, we also completed our Underwritten Public Offering, generating net proceeds of approximately $875.6 million. We utilized such proceeds to fund certain acquisitions, fully redeem $200 million of Series A Convertible Preferred Stock, and pay off approximately $647.1 million in previously outstanding debt. In connection with the foregoing, we also issued the IPO Grant. Furthermore, on June 16, 2025, we issued $500 million CAD indebtedness in our 2028 Canadian Notes Offering, which has a fixed interest rate of approximately 3.91% and paid down approximately $255.4 million of debt and a related interest rate swap, which at the time of the paydown had a weighted average interest rate of approximately 5.9%. Such transactions have had a significant impact on our operating results for the three and six months ended June 30, 2025, and will further impact our operating results in the future.
Current wording
In addition to the above noted substantial acquisition activity, we also completed our Underwritten Public Offering, generating net proceeds of approximately $875.6 million. We utilized such proceeds to fund certain acquisitions, fully redeem $200 million of Series A Convertible Preferred Stock, and pay off approximately $647.1 million in previously outstanding debt. In connection with the foregoing, we also issued the IPO Grant. Furthermore, on June 16, 2025, we issued $500 million CAD indebtedness in our 2028 Canadian Notes offering, which have a fixed interest rate of approximately 3.91% and paid down approximately $255.4 million of debt and a related interest rate swap, which at the time of the paydown had a weighted average interest rate of approximately 5.9%. Additionally, on September 24, 2025, we issued $200 million of CAD denominated debt through our 2030 Canadian Notes. Such proceeds were used to pay down our Credit Facility, reducing our interest costs. Such transactions have had a significant impact on our operating results for the three and nine months ended September 30, 2025, and will further impact our operating results in the future.
Previous wording
Total self storage related revenues for the three months ended June 30, 2025 and 2024 were approximately $60.9 million and $55.0 million, respectively. The increase in total self storage revenues of approximately $5.9 million, or approximately 11%, is primarily attributable to an increase in non same-store revenues of approximately $5.3 million, largely as a result of 17 property acquisitions after June 30, 2024, the operating results of which were not included during the three months ended June 30, 2024. Additionally, our same-store revenues were up approximately $0.2 million, or approximately 0.4%.
Current wording
Total self storage related revenues for the three months ended September 30, 2025 and 2024 were approximately $64.6 million and $55.4 million, respectively. The increase in total self storage revenues of approximately $9.2 million, or approximately 17%, is primarily attributable to an increase in non same-store revenues of approximately $7.6 million, largely as a result of 21 property acquisitions after September 30, 2024, the operating results of which were not included during the three months ended September 30, 2024. Additionally, our same-store revenues were up approximately $1.3 million, or approximately 2.5%.
Previous wording
We expect self storage revenues to primarily fluctuate based on the performance of our same-store pool, which will be influenced by the overall economic environment and increases in self storage supply, amongst other things.
Current wording
We expect self storage revenues to primarily fluctuate based on the performance of our same-store pool, which will be influenced by the overall economic environment and increases in self storage supply, amongst other things. Additionally, we expect our non same-store revenues to grow, given certain of these properties were not owned for the full period.
Previous wording
Managed REIT Platform revenues for the six months ended June 30, 2025 and 2024 were approximately $8.1 million and $5.4 million, respectively. The increase in Managed REIT Platform revenues of approximately $2.7 million is primarily attributable to increased acquisition fees of approximately $1.7 million and an increase in the other recurring revenues derived from the Managed REIT's, generally commensurate with their growth, as compared to the same period in the prior year.
Current wording
Managed REIT Platform revenues for the three months ended September 30, 2025 and 2024 were approximately $3.8 million and $2.9 million, respectively. The increase in Managed REIT Platform revenues of approximately $0.9 million is attributable to increased recurring revenues derived from the Managed REITs, generally commensurate with their growth, as compared to the same period in the prior year.
Previous wording
Reimbursable costs from Managed REITs for the three months ended June 30, 2025 and 2024 were approximately $1.9 million and $1.5 million, respectively. Such revenues consist of costs incurred by us as we provide property management and advisory services to the Managed REITs, which are reimbursed by the Managed REITs, pursuant to our related contracts with the Managed REITs. The increase in reimbursable costs from Managed REITs is primarily related to the growth in the Managed REITs' assets under management. We expect reimbursable costs from Managed REITs to increase in future periods as a result of additional acquisitions by our Managed REITs. We further expect reimbursable costs from Managed REITs to generally fluctuate commensurate with our Managed REITs' increase in operations as we receive reimbursement for providing such services.
Current wording
Reimbursable costs from Managed REITs for the three months ended September 30, 2025 and 2024 were approximately $2.0 million and $1.9 million, respectively. Such revenues consist of costs incurred by us as we provide property management and advisory services to the Managed REITs, which are reimbursed by the Managed REITs, pursuant to our related contracts with the Managed REITs. The increase in reimbursable costs from Managed REITs is primarily related to the growth in the Managed REITs' assets under management. We expect reimbursable costs from Managed REITs to increase in future periods as a result of additional acquisitions by our Managed REITs. We further expect reimbursable costs from Managed REITs to generally fluctuate commensurate with our Managed REITs' increase in operations as we receive reimbursement for providing such services.
Previous wording
Property operating expenses for the three months ended June 30, 2025 and 2024 were approximately $22.1 million (or 36% of self storage revenue) and $17.7 million (or 32% of self storage revenue), respectively. Property operating expenses include the costs to operate our facilities including compensation related expenses, utilities, insurance, real estate taxes, and property related marketing. The increase in property operating expenses of approximately $4.4 million is largely attributable to increased property operating expenses of approximately $2.1 million related to our non same-store properties and an additional $1.7 million of stock based compensation due to the IPO Grant to store level employees, and to a lesser extent increased property insurance costs, property taxes, payroll costs, and repairs and maintenance expenses at our same-store properties. Generally, we expect the IPO Grant expense included in property operating expenses to significantly decrease after October 1, 2025 when the majority of such awards become fully vested. We expect property operating expenses to fluctuate commensurate with inflationary pressures and any future acquisitions.
Current wording
Property operating expenses for the three months ended September 30, 2025 and 2024 were approximately $23.5 million (or 36% of self storage revenue) and $18.2 million (or 33% of self storage revenue), respectively. Property operating expenses include the costs to operate our facilities including compensation related expenses, utilities, insurance, real estate taxes, and property related marketing. The increase in property operating expenses of approximately $5.2 million is largely attributable to increased property operating expenses of approximately $3.0 million related to our non same-store properties and an additional $1.9 million of stock based compensation and related costs due to the IPO Grant to store level employees, and to a lesser extent increased, property taxes, payroll costs, and repairs and maintenance expenses at our same-store properties. Generally, we expect the IPO Grant expense included in property operating expenses to significantly decrease after October 1, 2025 when the majority of such awards became fully vested. We expect property operating expenses to fluctuate commensurate with inflationary pressures and any future acquisitions.
Previous wording
Managed REIT Platform expenses for the six months ended June 30, 2025 and 2024 were approximately $4.5 million and $1.5 million, respectively. Such expenses primarily consisted of expenses related to non-reimbursable costs associated with the operation of the Managed REIT Platform. Included in the six months ended June 30, 2025 was approximately $1.2 million of contract termination costs related to the termination of the Former Dealer Manager for our Managed REIT's and approximately $1.0 million of stock compensation costs related to our IPO Grant related to the management of the Managed REIT's. We expect Managed REIT Platform expenses to fluctuate in future periods commensurate with our level of activity related to the Managed REITs.
Current wording
Managed REIT Platform expenses for the three months ended September 30, 2025 and 2024 were approximately $2.1 million and $1.1 million, respectively. Such expenses primarily consisted of expenses related to non-reimbursable costs associated with the operation of the Managed REIT Platform. Included in the three months ended September 30, 2025 was approximately $1.1 million of stock compensation and related costs associated with our IPO Grant related to the management of the Managed REITs. We expect Managed REIT Platform expenses to fluctuate in future periods commensurate with our level of activity related to the Managed REITs.
Previous wording
Reimbursable costs from Managed REITs for the three months ended June 30, 2025 and 2024 were approximately $1.9 million and $1.5 million, respectively. Such expenses consist of costs incurred by us as we provide property management and advisory services to the Managed REITs, which are reimbursed by the Managed REITs, pursuant to our related contracts with the Managed REITs. The increase in reimbursable costs from Managed REITs is primarily related to the growth in the Managed REITs' assets under management. We expect reimbursable costs from the Managed REITs to fluctuate commensurate with our Managed REITs' increase in operations as we receive reimbursement for providing such services.
Current wording
Reimbursable costs from Managed REITs for the three months ended September 30, 2025 and 2024 were approximately $2.0 million and $1.9 million, respectively. Such expenses consist of costs incurred by us as we provide property management and advisory services to the Managed REITs, which are reimbursed by the Managed REITs, pursuant to our related contracts with the Managed REITs. The increase in reimbursable costs from Managed REITs is primarily related to the growth in the Managed REITs' assets under management. We expect reimbursable costs from the Managed REITs to fluctuate commensurate with our Managed REITs' increase in operations as we receive reimbursement for providing such services.
Previous wording
General and administrative expenses for the three months ended June 30, 2025 and 2024 were approximately $11.7 million and $7.8 million, respectively. Such expenses consist primarily of compensation related costs, equity based compensation, marketing related costs, legal expenses, accounting expenses, transfer agent fees, directors and officers’ insurance expense and board of directors related costs.
Current wording
General and administrative expenses for the three months ended September 30, 2025 and 2024 were approximately $10.4 million and $7.2 million, respectively. Such expenses consist primarily of compensation related costs, equity based compensation, marketing related costs, legal expenses, accounting expenses, transfer agent fees, directors and officers’ insurance expense and board of directors related costs.
Previous wording
The increase in general and administrative expenses as compared to the prior period was primarily attributable to increased stock compensation costs, which was approximately $2.5 million more compared to the prior year period, inclusive of the IPO Grant, as well as the above mentioned expenses related to our Underwritten Public Offering. The change was to a lesser extent also attributable to increased compensation costs and professional expenses. We expect general and administrative expenses to decrease as a percentage of total revenues over time.
Current wording
The increase in general and administrative expenses as compared to the prior period was primarily attributable to increased stock compensation related costs, which was approximately $2.5 million more compared to the prior year period, inclusive of approximately $1.5 million related to the IPO Grant. The change was to a lesser extent also attributable to increased compensation costs and professional expenses. We expect general and administrative expenses to decrease as a percentage of total revenues over time.
Previous wording
Depreciation and amortization expenses for the three months ended June 30, 2025 and 2024 were approximately $17.3 million and $13.8 million, respectively. Depreciation expense consists primarily of depreciation on the buildings and site improvements at our properties. Amortization expense primarily consists of the amortization of our in place lease intangible assets resulting from our self storage acquisitions. The increase in depreciation and amortization expense is primarily attributable to the depreciation and intangible amortization expense related to 17 properties which were acquired after June 30, 2024.
Current wording
Depreciation and amortization expenses for the three months ended September 30, 2025 and 2024 were approximately $19.2 million and $14.1 million, respectively. Depreciation expense consists primarily of depreciation on the buildings and site improvements at our properties. Amortization expense primarily consists of the amortization of our in place lease intangible assets resulting from our self storage acquisitions. The increase in depreciation and amortization expense is primarily attributable to the depreciation and intangible amortization expense related to 21 properties which were acquired after September 30, 2024.
Previous wording
Acquisition expenses for the three months ended June 30, 2025 and 2024 were approximately $0.4 million and $0.1 million, respectively. These acquisition expenses were incurred prior to acquisitions becoming probable in accordance with our capitalization policy, and such costs increased over the prior period given our increase in acquisition volume in the current period.
Current wording
Acquisition expenses for the three months ended September 30, 2025 and 2024 were approximately $0.5 million and less than $0.1 million, respectively. These acquisition expenses were recognized in accordance with our capitalization policy, and such costs increased over the prior period given our increase in acquisition volume in the current period.
Previous wording
Losses from our equity method investments in the JV Properties for the three months ended June 30, 2025 and 2024 were approximately $0.1 million and $0.4 million, respectively. Losses from our equity method investments in the JV Properties consists of our allocation of earnings and losses from our unconsolidated joint ventures.
Current wording
Losses from our equity method investments in the JV Properties for the three months ended September 30, 2025 and 2024 were less than $0.1 million and approximately $0.4 million, respectively. Losses from our equity method investments in the JV Properties consists of our allocation of earnings and losses from our unconsolidated joint ventures.
Previous wording
Losses from our equity method investments in the Managed REITs for the three months ended June 30, 2025 and 2024 were approximately $0.2 million and $0.3 million, respectively. Losses from our equity method investments in the Managed REITs consists primarily of our allocation of earnings and losses from our investments in SST VI and SSGT III.
Current wording
Losses from our equity method investments in the Managed REITs for the three months ended September 30, 2025 and 2024 were approximately $0.2 million and $0.2 million, respectively. Losses from our equity method investments in the Managed REITs consists primarily of our allocation of earnings and losses from our investments in SST VI and SSGT III.
Previous wording
Other, net for the three months ended June 30, 2025 and 2024 was approximately $1.4 million and $0.8 million of expense, respectively. Other, net consists primarily of certain state tax expenses, foreign currency fluctuations, changes in value related to our foreign currency and interest rate hedges not designated for hedge accounting, and other miscellaneous items. The unfavorable variance is primarily attributable to the termination of certain of our SOFR interest rate caps and the interest rate swap related to our 2027 NBC Loan, which was paid off in June 2025. Please see Note 7 – Derivative Instruments, of the notes to consolidated financial statements contained in this report for additional information.
Current wording
Other, net for the three months ended September 30, 2025 and 2024 was approximately $4.7 million of income and $2.0 million of expense, respectively. Other, net consists primarily of certain state tax expenses, foreign currency fluctuations, changes in value related to our foreign currency and interest rate hedges not designated for hedge accounting, and other miscellaneous items. The favorable variance is primarily attributable to foreign currency changes associated with our Canadian Dollar denominated debt.
Previous wording
Interest Income for the three months ended June 30, 2025 and 2024 was approximately $0.7 million and $0.7 million, respectively. Interest income includes interest income on loans to the Managed REITs, accretion of financing fee revenues associated with such loans, and interest earned on cash held at financial institutions. We expect interest income from the Managed REITs to fluctuate commensurate with their borrowings, as well as changes to benchmark interest rates on such borrowings.
Current wording
Interest Income for the three months ended September 30, 2025 and 2024 was approximately $1.5 million and $1.0 million, respectively. Interest income includes interest income on loans to the Managed REITs, accretion of financing fee revenues associated with such loans, and interest earned on cash held at financial institutions. The favorable variance is related to increased lending to the Managed REITs. We expect interest income from the Managed REITs to fluctuate commensurate with their level of borrowings, as well as changes to benchmark interest rates on such borrowings.
Previous wording
Interest expense for the three months ended June 30, 2025 and 2024 was approximately $12.0 million and $17.3 million, respectively. Interest expense includes interest expense on our debt, accretion of fair market value of debt, amortization of debt issuance costs, and the impact of our interest rate derivatives designated for hedge accounting. The decrease of approximately $5.3 million as compared to the same period in the prior year is primarily attributable to decreased borrowings, as well as a lower average effective interest rate. We expect interest expense to fluctuate in future periods commensurate with our future debt levels and fluctuations in interest rates.
Current wording
Interest expense for the three months ended September 30, 2025 and 2024 was approximately $12.5 million and $19.1 million, respectively. Interest expense includes interest expense on our debt, accretion of fair market value of debt, amortization of debt issuance costs, and the impact of any interest rate derivatives designated for hedge accounting. The decrease of approximately $6.6 million as compared to the same period in the prior year is primarily attributable to decreased borrowings, primarily as a result of Underwritten Public Offering proceeds used to reduce our overall borrowings, as well as a lower average effective interest rate. We expect interest expense to fluctuate in future periods commensurate with our future debt levels and fluctuations in interest rates.
Previous wording
Income tax expense for the three months ended June 30, 2025 and 2024 was approximately $0.3 million and $0.3 million of expense, respectively. Income tax expense consists primarily of state, federal, and Canadian income tax. We expect our income tax expense to increase in future periods primarily related to our operations in Canada.
Current wording
Income tax expense for the three months ended September 30, 2025 and 2024 was approximately $0.6 million and $0.4 million of expense, respectively. Income tax expense consists primarily of state, federal, and Canadian income tax. We expect our income tax expense to increase in future periods primarily related to our operations in Canada.
Previous wording
Of the total rentable square feet, parking represented approximately 1,068,000 square feet as of June 30, 2025 and approximately 1,042,000 square feet as of June 30, 2024, respectively. On a same-store basis, for the same periods, parking represented approximately 975,000 square feet. Amount not in thousands.
Current wording
Of the total rentable square feet, parking represented approximately 1,100,000 square feet as of September 30, 2025 and approximately 1,040,000 square feet as of September 30, 2024, respectively. On a same-store basis, for the same periods, parking represented approximately 977,000 square feet. Amount not in thousands.
Previous wording
Determined by dividing the aggregate realized rental income for each applicable period by the aggregate of the month-end occupied square feet for the period. Properties are included in the respective calculations in their first full month of operations, as appropriate. In the event a property is disposed of, or becomes completely inoperable during the period, such property is excluded from the respective calculation in the first full month of non-operation. We have excluded the realized rental revenue and occupied square feet related to parking herein for the purpose of calculating annualized rent per occupied square foot. Amount not in thousands.
Current wording
Determined by dividing the aggregate rental income, net of discounts and concessions and excluding late and administrative fees for each applicable period by the aggregate of the month-end occupied square feet for the period. Properties are included in the respective calculations in their first full month of operations, as appropriate. In the event a property is disposed of, or becomes completely inoperable during the period, such property is excluded from the respective calculation in the first full month of non-operation. We have excluded the rental revenue and occupied square feet related to parking herein for the purpose of calculating annualized rent per occupied square foot. Amount not in thousands.
Previous wording
Our same-store revenue increased by approximately $0.2 million, or approximately 0.4%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 due to an approximately 0.9% increase in average occupancy, an increase in late and administrative fees of approximately $0.2 million, slightly offset by an approximately 1.0% decrease in annualized rent per occupied square foot. Property operating expenses increased by approximately 3.5%, primarily attributable to increased property taxes and payroll costs.
Current wording
Our same-store revenue increased by approximately $1.3 million, or approximately 2.5%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to an approximately 0.4% increase in average occupancy, an approximately 0.7% increase in annualized rent per occupied square foot, and an increase in administrative and late fees. Property operating expenses increased by approximately 4.5%, primarily attributable to increased property taxes and payroll costs.
Previous wording
(1) Included within ancillary operating revenue within our consolidated statements of operations, approximately $4.1 million and $3.8 million of Tenant Protection Program revenue was earned at same-store facilities during the six months ended June 30, 2025 and 2024, respectively, with the remaining approximately $0.6 million and $0.2 million earned at non same-store facilities during the six months ended June 30, 2025 and 2024, respectively.
Current wording
(1) Included within ancillary operating revenue within our consolidated statements of operations, approximately $2.1 million and $2.0 million of Tenant Protection Program revenue was earned at same-store facilities during the three months ended September 30, 2025 and 2024, respectively, with the remaining approximately $0.4 million and $0.1 million earned at non same-store facilities during the three months ended September 30, 2025 and 2024, respectively.
Previous wording
(2)Stock compensation expense herein only includes such expense related to the Underwritten Public Offering (the "IPO Grant") which is included in property operating expense.
Current wording
(2)Stock compensation and related expense herein only includes such expense related to the Underwritten Public Offering (the "IPO Grant") that is included in property operating expense.
Previous wording
Total self storage related revenues for the six months ended June 30, 2025 and 2024 were approximately $120.1 million and $107.6 million, respectively. The increase in total self storage revenues of approximately $12.4 million, or approximately 11.5%, is primarily attributable to an increase in non same-store revenues of approximately $9.9 million, largely as a result of 17 property acquisitions after June 30, 2024, the operating results of which were not included during the six months ended June 30, 2024. Additionally, our same-store revenues were up approximately $1.8 million, or approximately 1.8%.
Current wording
Total self storage related revenues for the nine months ended September 30, 2025 and 2024 were approximately $184.7 million and $163.0 million, respectively. The increase in total self storage revenues of approximately $21.6 million, or approximately 13%, is primarily attributable to an increase in non same-store revenues of approximately $17.5 million, largely as a result of 21 property acquisitions after September 30, 2024, the operating results of which were not included during the nine months ended September 30, 2024. Additionally, our same-store revenues were up approximately $3.1 million, or approximately 2.0%.
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Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
To the extent we acquire facilities in clusters within geographic regions, we generally see property management efficiencies resulting in reduction of personnel and other administrative costs.
Previous report — wording carried elsewhere
During the three months ended June 30, 2025, we incurred approximately $0.7 million incidental to our Underwritten Public Offering which was included in general and administrative expenses but were not capitalized as they were not directly attributable thereto, and were therefore included in general and administrative expense.
Previous report — wording carried elsewhere
Loss on debt extinguishment for the three months ended June 30, 2025 and 2024 was approximately $1.7 million and none, respectively. Loss on debt extinguishment for the three months ended June 30, 2025 was primarily related to debt issuance costs written off in connection with a reduction in the total commitment on our Credit Facility from $700 million to $600 million, the pay-off of the 2027 NBC loan and the full repayment of the 2025 KeyBank Acquisition Facility which were all completed during the three months ended June 30, 2025.
Previous report — wording carried elsewhere
$0.1 million earned at non same-store facilities during the three months ended June 30, 2025 and 2024, respectively.