SmartStop Self Storage REIT Files for Underwritten IPO After 1-for-4 Reverse Stock Split
SmartStop Self Storage REIT, Inc., a self-managed and non-traded real estate investment trust focused on self-storage assets, has initiated an underwritten public offering. The company plans to offer 27 million shares of its common stock, with an anticipated price range between $28.00 and $36.00 per share, or $756 million to $972 million.
Additionally, SmartStop intends to grant underwriters a 30-day option to purchase up to an additional 4.05 million shares at the public offering price.
Subject to issuance, the common stock’s ticker symbol on the New York Stock Exchange will be “SMA.”
This move follows the company’s recent one-for-four reverse stock split announced late Friday. As a result of the reverse split, every four shares of common stock were automatically converted into one share, effectively reducing the number of outstanding shares. The reverse split did not impact the total value of shareholders’ investments, voting rights, or ownership percentages.
Just prior to the reverse stock split, SmartStop declared an estimated net asset value per share of $14.50 as of March 12, 2025. Adjusting for the one-for-four reverse split, the post-split estimated NAV per share would be approximately $58.00. This adjustment reflects the consolidation of shares and maintains the overall valuation of the company.
The company says the proceeds from the public offering are intended for several corporate purposes, including the redemption of all issued and outstanding Series A Preferred Stock, repayment of existing debt under the company’s credit facility, repayment of an acquisition facility, funding of property acquisitions, and other general corporate uses.
J.P. Morgan, Wells Fargo Securities, KeyBanc Capital Markets, BMO Capital Markets, and Truist Securities are acting as joint book-running managers; Baird, Stifel, National Bank of Canada Financial Markets, Raymond James, and Scotiabank are acting as bookrunners; and BTIG, M&T Securities and Fifth Third Securities are acting as co-managers.
Last month, the REIT’s board of directors reinstated its distribution reinvestment plan while it reviewed pathways for stockholder liquidity. Distributions for the month of January 2025 were payable around Feb. 15, 2025. That was a change of course from November 2024 when AltsWire reported that the REIT had suspended its share redemption program and distribution reinvestment plan as it considered “alternatives for stockholder liquidity,” such as listing on a national securities exchange.
SmartStop has previously eyed a listing on the NYSE, filing a registration statement that was never declared effective with the SEC in April 2022 for an underwritten public offering and listing under the ticker symbol “SMST.”
Should SmartStop now move forward with its current plans for the IPO and listing, it would join American Healthcare REIT (NYSE: AHR) and Sila Realty Trust (NYSE: SILA) – two formerly non-traded REITs that listed on the NYSE in 2024. AR Global’s Healthcare Trust, now known as National Healthcare Properties Inc., has also declared its intention to pursue a listing. In October 2024, National Healthcare internalized management and also completed a reverse stock split in preparation for such an event.
SmartStop’s portfolio comprises 218 operating properties across 23 states, the District of Columbia, and Canada, totaling approximately 156,400 units and 17.6 million rentable square feet. This extensive footprint positions the company as a significant player in the self-storage sector.
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