SmartStop Self Storage REIT Reinstates Distribution Reinvestment Plan
The board of directors for SmartStop Self Storage REIT Inc. – a self-managed and non-traded real estate investment trust focused on self-storage assets – announced that while it reviews alternatives for stockholder liquidity, it has decided to reinstate its distribution reinvestment plan.
In practice, this means that distributions for the month of January 2025, payable on or about Feb. 15, 2025, as well as any distributions declared by the board for future months will be invested in shares of the company’s common stock for those stockholders that previously elected into the distribution reinvestment plan in such states where the plan is offered.
This company’s latest activity is a change of course from November 2024 when it, as reported previously by Alts Wire, elected to suspend its share redemption program and distribution reinvestment plan as it considered “alternatives for stockholder liquidity,” such as listing on a national securities exchange.
The REIT noted that the distributions will be reinvested at the most recently published estimated net asset value per share, which is currently $15.25. The REIT also said that it may raise additional equity through the issuance of stock and/or provide additional options for liquidity to its stockholders in the future, including listing on an exchange.
As Alts Wire previously reported, in April 2022, SmartStop filed a registration statement with the U.S. Securities and Exchange Commission for a proposed underwritten public offering in conjunction with the listing of its common stock on the New York Stock Exchange under the ticker symbol “SMST.” That registration statement, however, has never been declared effective.
AR Global’s Healthcare Trust, now known as National Healthcare Properties Inc. also recently declared its intention to pursue a listing last fall. Earlier in 2024, National Healthcare internalized management in preparation for such an event.
SmartStop Self Storage REIT Inc. is a self-managed REIT with a fully integrated operations team of approximately 525 self-storage professionals. As of Nov. 13, 2024, SmartStop has an owned or managed portfolio of 203 operating properties in 22 states and Canada, comprising approximately 144,000 units and 16.2 million rentable square feet. Its most recent estimated net asset value per share of common stock was $15.25 as of Sept. 30, 2023.
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