SmartStop Self Storage REIT Reports $1.3B Capital Raise to Close Q2 2025
SmartStop Self Storage REIT, Inc. (NYSE:SMA) reported its financial results for the second quarter of 2025, highlighting a successful inaugural quarter as a publicly traded company. The company’s performance was boosted by a substantial capital raise and strategic acquisitions, positioning it for future growth.
“We posted a highly successful inaugural quarter as a publicly traded REIT,” said H. Michael Schwartz, chairman and chief executive officer of SmartStop. “We had a robust second quarter, both in terms of performance and activity, as we execute on the business plan we outlined earlier this year.”
The REIT’s self-storage related revenues were approximately $60.9 million, an increase of approximately $5.9 million when compared to 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.
The company’s same-store portfolio showed signs of stabilization, with average physical occupancy increasing by 90 basis points to 93.1% compared to the second quarter of 2024. However, same-store net operating income saw a slight decrease of 1.1% during the quarter, as compared to the same period in 2024, while same-store revenues increased by 0.4%.
“We continue to see improving operating metrics across our portfolio as the sector stabilizes following years of elevated new supply,” Schwartz noted. He also highlighted the company’s success in managing expenses and its “opportunistic” revenue management strategy.
The quarter was defined by SmartStop’s successful entry into the public market and its subsequent financial maneuvers. SMA closed a $1.3 billion capital raise, including an underwritten public offering that generated approximately $875.6 million in net proceeds.
SmartStop used these proceeds to immediately strengthen its balance sheet; it redeemed all outstanding Series A convertible preferred stock for approximately $203.6 million. Also, it paid off the Keybank Acquisition Facility for approximately $175.1 million and paid down existing debt under its credit facility by approximately $472.1 million.
Additionally, SMA secured a new credit rating of BBB with a stable outlook from DBRS Morningstar and received an upgrade from Kroll Bond Rating Agency, or KBRA, to BBB/Stable.
The REIT was active in deploying its capital, acquiring nearly $200 million in new assets during the quarter. The company purchased self-storage facilities in Kelowna, British Columbia; Lakewood, Colo.; and a portfolio of five facilities in Houston.
The company is also a party to agreements to acquire an additional eight properties in Canada for a total of approximately $80.3 million, which are expected to close in the near future.
SMA’s board of directors approved distributions for the month of June 2025, such that all holders of its Class A, Class T, and unclassified shares of common stock, received $0.1315 per share. For July, that distribution rose to $0.1359, which will be paid to each stockholder of record at the end of July on or about Aug. 15.
Finally, SmartStop Self Storage REIT announced the appointment of Lora Gotcheva as an independent director to its board, effective July 10, 2025. Gotcheva brings over 25 years of financial management and investment experience from her time at CPP Investments, one of Canada’s largest pension fund managers. Gotcheva was added following Paula Mathews’ retirement at the end of June.
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