SST VI Refinances Seven Additional Properties, Bringing Total to 11 for Year
Strategic Storage Trust VI Inc. – a publicly registered non-traded real estate investment trust sponsored by an affiliate of SmartStop Self Storage REIT Inc. – has refinanced loans on seven more of its Canadian properties. This refinancing proactively addresses the loans’ upcoming 2025 maturities while lowering SST VI’s interest rate by approximately 170 basis points. It reduces the annual interest expense by approximately $2.4 million CAD as compared to the previous loans.
The refinanced portfolio consists of six properties in the Greater Toronto area, Ontario, and one in Vancouver, B.C. Acquired in various stages of lease up, the properties have shown strong performance, according to the REIT, with average occupancy rising from approximately 58% at acquisition to around 86% as of Dec. 31, 2024.
Earlier this year, the REIT refinanced loans for four of its Canadian properties for CAD $64 million. This activity addressed the loans’ prior 2025 maturities and effectively reduced SST VI’s interest rate by approximately 100 bps as compared to the previous loans. The refinancing included three properties in the Greater Toronto area, Ontario, and one in Edmonton, Alberta.
The REIT said the improved loan terms further reinforce SST VI’s income and growth investment strategy, disciplined acquisition standards, and ability to deliver long-term value to its shareholders.
“We are pleased to complete this refinancing, which not only resolves our near-term maturities but also meaningfully reduces our borrowing costs,” said H. Michael Schwartz, chairman and chief executive officer of SST VI. “This transaction highlights our proactive financial management strategy and ongoing efforts to strengthen our balance sheet for sustained growth.”
QuadReal Finance, L.P. served as the lender and servicer for the new loan. As SST VI continues optimizing its capital structure, the company said it remains focused on identifying further opportunities to enhance its financial flexibility and operational efficiency.
As of March 13, 2025, SST VI has a portfolio of 13 operating properties in the United States comprising approximately 9,050 units and 1,080,000 rentable square feet (including parking); 11 properties with approximately 10,200 units and 1,065,000 rentable square feet (including parking) in Canada, joint venture interests in one operational and four development properties in two Canadian provinces (Ontario and Québec) and one wholly owned development property in Ontario.
SST VI is an affiliate of SmartStop Self Storage REIT Inc., a self-managed real estate investment trust. As of March 13, 2025, SmartStop has an owned or managed portfolio of 218 operating properties in 23 states, the District of Columbia, and Canada, comprising approximately 155,700 units and 17.5 million rentable square feet. SmartStop and its affiliates own or manage 39 operating self-storage properties in Canada, which total approximately 33,600 units and 3.4 million rentable square feet.
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