SmartStop Self Storage REIT Announces Merger With Leading Third-Party Provider

SmartStop Self Storage REIT Inc. (NYSE: SMA) – an internally managed real estate investment trust that focuses on self-storage facilities in the United States and Canada – announced an agreement to acquire Argus Professional Storage Management for $21 million. Together, SmartStop and Argus Professional Storage Management, or APSM, will own or manage more than 460 self-storage properties in North America.

APSM is the No. 6 overall and No. 2 independent self-storage third-party management company in the United States, according to Inside Self Storage magazine. SmartStop, through its subsidiaries, remains an active sponsor of self-storage-focused non-traded REIT and Delaware statutory trust programs available to retail investors.

“We are very excited to announce this strategic combination, which expedites SmartStop’s expansion into third-party management in a manner that we believe will be immediately accretive to SmartStop’s FFO as adjusted,” said H. Michael Schwartz, chairman and chief executive officer of SmartStop. “Perhaps more importantly, we are doing so with an absolutely top-notch entrepreneurial partner managing a portfolio with sizeable geographic overlap to our existing portfolio.”

Under the terms of the agreement, SmartStop’s $21 million transaction is comprised of $8.5 million in cash and 328,343 units of limited partnership interests in the REIT’s operating partnership. In addition, the agreement includes a potential earnout of up to $11 million based on revenues generated during fiscal year 2028, with 75% payable in cash and 25% being payable in OP units.

The transaction is expected to close in October 2025, subject to customary closing conditions. BMO Capital Markets Corp. is acting as SmartStop’s financial adviser in connection with the transaction.

“APSM has earned a strong reputation for integrity and performance within the self-storage industry, and we are proud to join our two great companies. By combining Argus’ presence in the property management space with our innovative technology-driven platform, we can provide storage owners with a differentiated offering that is both flexible and powerful. Likewise, we believe that our entrepreneurial roots make us a terrific partner for owners both in the U.S. and Canada,” added Schwartz.

With the merger, SmartStop will offer independent storage owners within APSM’s network three partnership/branding options:

• SmartStop: Facility operates under the SmartStop brand;
• SmartStop legacy:Partners keep their brand name but use SmartStop’s website and management platform; or
• Private label:Full white-label option allowing partners to preserve their existing brand identity while running on the SmartStop platform.

By joining SmartStop, the REIT said APSM gains access to technology that handles dynamic pricing, and offers efficiency and marketing support. Additionally, SmartStop will offer tailored bridge loans to give partners more financial flexibility and liquidity.

“This is a game-changing deal for the self-storage industry,” said Ben Vestal, chief executive officer of APSM. “This merger will create a best-in-class operating and management platform. SmartStop’s entrepreneurial approach along with its robust technology will allow APSM to continue to provide its clients with the flexibility they value while tapping into an industry-leading platform. The two companies’ cultures are very similar, with an emphasis on putting the client’s investment goals and objectives first.”

In August, AltsWire reported REIT performance for the end of the second quarter of 2025. SmartStop’s self-storage related revenues were approximately $60.9 million, an increase of approximately $5.9 million from the same period in 2024. Funds from operations, or FFO, as adjusted, increased by $12 million to $24.4 million, although FFO per share saw a slight decrease. 

As of Sept. 24, 2025, SmartStop had an owned or managed portfolio of 236 operating properties in 23 states, the District of Columbia, and Canada, comprising approximately 170,500 units and 19.1 million rentable square feet. SmartStop and its affiliates own or manage 49 operating self-storage properties in Canada, which total approximately 41,800 units and 4.2 million rentable square feet.

 Founded in 2012 and headquartered in Tucson, Ariz., APSM is the No. 2 exclusively third-party management company in the self-storage industry. It manages 227 stores across 26 states as of late September 2025, encompassing approximately 16.6 million rental square feet and 102,000 units. APSM generates more than $150 million of revenue per year for its third-party management stores and completes more than $10 million in capital improvements.

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