Strategic Storage Trust II Inc. (SST II), a public, non-traded, self storage real estate investment trust (REIT) sponsored by SmartStop Asset Management LLC, has released its financial statement for fourth-quarter and full-year 2018. In general, the company showed year-over-year gains in total revenue, same-store revenue and net operating income (NOI).

“The existing SST II portfolio continues to perform. We are also excited for the recent closing of the Strategic Storage Growth Trust Inc. merger, which will be a transformative acquisition for the company. Following the merger, SST II has become a portfolio of over 110 high-quality self storage assets with a combined value in excess of $1.3 billion.”

-H. Michael Schwartz, CEO and chairman of the board of directors, SS II

Fourth Quarter 2018 Highlights

  • Increased total revenue by approximately $0.8 million, or 4.1%, when compared to the same period in 2017.

  • Increased same-store revenues and NOI by 3.4 percent and 1.3%, respectively, compared to the same period in 2017.

  • Increased same-store annualized revenue per occupied square foot by approximately 7.6% to $16.19 from $15.05 when compared to the same period in 2017.

  • Modified funds from operations decreased by approximately $0.5 million, or 10%, when compared to the same period in 2017, primarily related to increases in general and administrative costs and interest expense.

Twelve Months Ended December 31, 2018 Highlights

  • Increased total revenue by approximately $4.3 million, or 5.7%, when compared to the same period in 2017.

  • Increased same-store revenues and NOI by 4.0% and 4.8%, respectively, compared to the same period in 2017.

  • Increased same-store annualized revenue per occupied square foot by approximately 9.5% to $15.81 from $14.44 when compared to the same period in 2017.

  • Increased modified funds from operations by approximately $1.4 million, or 7.8%, when compared to the same period in 2017.

Merger with Strategic Storage Growth Trust, Inc.

On January 24, 2019, SST II completed its acquisition of Strategic Storage Growth Trust, Inc. (“SSGT”).

As a result of the SSGT Merger, SST II acquired 28 operating self storage facilities located in 10 states and in the Greater Toronto, Canada area and one development property in the Greater Toronto Area, together comprising approximately 19,800 self storage units and approximately 2.2 million net rentable square feet of storage space.

SST II also obtained the right to acquire one other self storage facility currently under contract.

Accordingly, SST II now has a portfolio consisting of 111 operating self storage facilities located in 17 states and Ontario, Canada, comprising approximately 70,000 self storage units and approximately 8.1 million net rentable square feet of storage space, and one development property in the Greater Toronto Area which will contain approximately 900 self storage units and 85,000 net rentable square feet of storage space once completed.

While SST II has historically focused on stabilized properties, the SSGT Merger adds growth properties to SST II’s portfolio, providing SST II with opportunities in development, redevelopment and lease-up of self storage properties. Moreover, the addition of SSGT’s portfolio expands SST II’s geographic reach into three new states (Arizona, Massachusetts and Texas) and grows SST II’s existing presence in seven other states and Ontario, Canada.


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Anastasia Malagisi

Anastasia leads the Radius+ marketing efforts. She was previously Director of Marketing & Outreach at the national Self Storage Association, where she developed integrated marketing and communication strategies. She has over a decade of experience in the self storage industry and 15 years’ experience in building brand visibility and establishing strategic partnerships. Anastasia received a B.A. in Public Relations from Quinnipiac University and an MBA Certificate from Canisius College.