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October 27, 2020

Extra Space Storage Invests $50 Million in SmartStop Self Storage REIT

Extra Space Storage Inc. subsidiary Extra Space Storage LP acquired an additional $50 million of SmartStop Self Storage REIT Inc.’s series A convertible preferred stock. The self-storage real estate investment trust unit initially purchased $150 million of the preferred stock…

Extra Space Storage Invests $50 Million in SmartStop Self Storage REIT

Extra Space Storage Inc. subsidiary Extra Space Storage LP acquired an additional $50 million of SmartStop Self Storage REIT Inc.’s series A convertible preferred stock.

The self-storage real estate investment trust unit initially purchased $150 million of the preferred stock on October 29, 2019. Extra Space Storage committed to purchase up to an additional $50 million, at the option of SmartStop, which SmartStop subsequently exercised. Accordingly, on October 26, 2020, Extra Space purchased the remaining $50 million in shares of Series A Preferred Stock.

SmartStop will use the net proceeds from the transaction to repay debt, fund self-storage acquisitions, and for working capital or other general corporate purposes.

As of June 30, 2020, SmartStop Self Storage REIT, Inc. had total assets with a book value of $1.238 billion and net long term debt with a book value of $710 million.  As of June 30, 2020, the REIT owned 112 operating self storage facilities located in 17 states and Ontario, Canada (the Greater Toronto Area). Based on the REIT’s original offering price of $10.00 per share, the distribution rate for Class A common stock was 6.00% annualized and 5.34% annualized for Class T common stock after fees. The net asset value per share was reported by Blue Vault for Q2 2020 at $10.40 for both common share classes.

Visit the South Coast Marketplace for an overview of self-storage as an asset class with SmartStop Executive Chairman, Michael Schwartz.

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