SmartStop Self Storage REIT, Inc. · NYSE:SMA
SmartStop Self Storage REIT — Investor Presentation (March 2025)
40 slides from SmartStop Self Storage REIT's investor presentation, March 2025
Slide 1: Investor Presentation March 2025
Investor Presentation March 2025 Location: 16900 State Road 54, Lutz, FL
Slide 2: Disclaimer & Risk Factors
CONFIDENTIAL Disclaimer & Risk Factors Certain of the matters discussed in this investor presentation constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be ident
Slide 3: SmartStop is a Premier, Growth-Oriented Self Storage Platform
CONFIDENTIAL SmartStop is a Premier, Growth-Oriented Self Storage Platform SMARTSTOP OVERVIEW ATTRACTIVE FINANCIAL AND OPERATING PROFILE • SmartStop Self Storage REIT, Inc. (“SmartStop” or the “Company”) is a premier self storage owner and operator that maintains a high-quality and diversified portf
Slide 4: Key Investment Highlights
CONFIDENTIAL Key Investment Highlights 1 Multi-Pronged Growth Strategy 2 High Quality, Diversified Portfolio In Key Growth Markets Mavis Road Mississauga, ON 3 Differentiated Exposure to the Greater Toronto Area (“GTA”) 4 Scalable, Branded Platform Positioned to Drive Growth Milner Avenue 5 Unique M
Slide 5: Successful Track Record of Growing the SmartStop Platform
CONFIDENTIAL 1 Successful Track Record of Growing the SmartStop Platform JUNE 2022 SmartStop JUNE 2024 JANUARY 2014 SEPTEMBER 2015 MARCH 2022 completes 100% SmartStop NOVEMBER 2005 SST II declared SST closes a $1.4 billion all-cash SmartStop stock-for-stock surpasses H. Michael effective and merger
Slide 6: The SmartStop Opportunity
CONFIDENTIAL 1 The SmartStop Opportunity Scalable platform positioned to Highly fragmented sector that is going generate outsized returns with through a wave of consolidation improved cost of capital ⚫ Over 52,000 self-storage facilities in the US with only 22.5% penetration from public self storage
Slide 7: Multi-Pronged North American Growth Strategy
CONFIDENTIAL 1 Multi-Pronged North American Growth Strategy ADDITIONAL GROWTH DRIVERS ORGANIC ACQUISITIONS Joint ventures GROWTH DRIVERS ⚫ Accretive development opportunities within Acquisitions on balance sheet Canadian JV SmartCentres Property revenue maximization ⚫ Leverage institutional operatin
Slide 8: SmartStop Owns a High Quality Portfolio in Key Growth Markets
CONFIDENTIAL 2 SmartStop Owns a High Quality Portfolio in Key Growth Markets GEOGRAPHIC FOOTPRINT (OWNED AND MANAGED)(1) TOP MARKETS BY NRSF(3) (OWNED) 3 Toronto 15% BC AB SK MB All Other 4 Miami - Fort 38% Lauderdale 5 WA MT ND ON QC 13.4 9% million MN 11 ME Los OR ID SD WI MI VT Total NRSF Angeles
Slide 9: SmartStop Maintains a High-Performing Portfolio Relative to Peers
CONFIDENTIAL 2 SmartStop Maintains a High-Performing Portfolio Relative to Peers High quality portfolio with strong rents and demographics Q4 2024 SAME-STORE RENT / SQUARE FOOT (RENTPOF) Q4 2024 ENDING SAME-STORE OCCUPANCY $22.89 $22.66 $21.63 93.7% $20.21 92.4% $15.56 90.5% 89.3% 84.4% (2) (2) AVER
Slide 10: Portfolio Focused on Large Markets with Attractive Demographics
CONFIDENTIAL 2 Portfolio Focused on Large Markets with Attractive Demographics POPULATION GROWTH IN SMARTSTOP’S MARKETS IS EXPECTED TO OUTPACE SMARTSTOP’S MARKETS DISPLAY OUTSIZED INCOME GROWTH PROJECTIONS THE U.S. AVERAGE 2025 – 2030 Claritas/SNL Financial Projected Population Growth 2025 – 2030 Cl
Slide 11: Key SmartStop U.S. Markets – Miami / Ft. Lauderdale and Los Angeles
CONFIDENTIAL 2 Key SmartStop U.S. Markets – Miami / Ft. Lauderdale and Los Angeles MIAMI/FT. LAUDERDALE, FLORIDA LOS ANGELES, CALIFORNIA $74,730 $89,860 Average 5-mi Household Average 5-mi Income(1) Household Income(1) 232,570 414,360 Average 5-mi Population Average 5-mi Population 1,221,100 882,00
Slide 12: Toronto and Greater Canada Represent an Untapped Growth Opportunity
CONFIDENTIAL 3 Toronto and Greater Canada Represent an Untapped Growth Opportunity POPULATION GROWTH VS. SUPPLY RATIO – SELECT LARGE CITIES OPPORTUNITY TO EXPAND IN SEVERAL UNDERPENETRATED CANADIAN MARKETS 14% Supply Ratio Edmonton 12% Alberta Vanouver Toronto vs. Top 25 U.S. MSA Avg. Delta 10% 3 Po
Slide 13: SmartStop's GTA and broader Canadian expansion is a differentiated strategy
CONFIDENTIAL 3 SmartStop’s GTA and broader Canadian expansion is a differentiated strategy STRATEGIC RATIONALE SMARTSTOP GTA OWNED AND MANAGED PORTFOLIO(5) ✓ The Canadian storage market is less mature than the U.S. and meaningfully underpenetrated with only 3,390 storage properties(1) (vs. ~52,300 i
Slide 14: Our Success in Canada: Case Studies
CONFIDENTIAL 3 Our Success in Canada: Case Studies BRAMPTON, ONTARIO GTA – 8 FACILITY PORTFOLIO ACQUISITION • Ground-up JV development property with 1,050 • In 1H23, the Managed REITs(1) acquired an eight- Vaughan storage units facility portfolio in the GTA for approximately CAD $300 million • Situa
Slide 15: Introducing: Dash, SmartStop's Proprietary Integrated Technology Platform
CONFIDENTIAL 4 Introducing: Dash, SmartStop’s Proprietary Integrated Technology Platform CUSTOM-BUILT ⚫ Collaborative development with vendor ⚫ Designed for real-time data access and availability ⚫ Focus on customer-centric and mobile engagement SCALABLE ⚫ Built to operate with hundreds of propertie
Slide 16: Ability To Deliver Leading Customer Experience
CONFIDENTIAL 4 Ability To Deliver Leading Customer Experience Technology-driven platform gives SmartStop the ability to meet customers’ unique service needs Modern & convenient website ✓ experience Integrated into revenue Dedicated In-House Online Rentals and Call Center Reservations Walk-Ins ✓ mana
Slide 17: Award Winning Customer Service and Strong Brand Awareness
CONFIDENTIAL 4 Award Winning Customer Service and Strong Brand Awareness CUSTOMER SERVICE AWARDS AND ACCOLADES CONSISTENT BRAND STANDARDS Newsweek Awards Named the top-ranked self storage company for customer service by Newsweek and Statista in 2021, 2023 and 2024 SMARTSTOP SPONSORSHIP Sports / ente
Slide 18: Internal Growth Strategy
CONFIDENTIAL 4 Internal Growth Strategy INTERNAL GROWTH STRATEGIC HIGHLIGHTS HISTORICAL SAME-STORE AVERAGE OCCUPANCY(1) 95.4% 95.1% 95.5% Average: 93.5% 94.5% 93.3% 93.1% 93.7% 93.2% 92.4% 92.5% 92.5% 92.4% 92.4% ✓ Maximize net operating income with a balanced approach to rate and occupancy Majority
Slide 19: Strong Track Record of Internal Growth
CONFIDENTIAL 4 Strong Track Record of Internal Growth SmartStop’s internal growth strategies have translated into successful long-term growth HISTORY OF OPERATIONAL EXCELLENCE HIGHLIGHTED BY SAME-STORE PERFORMANCE VS. PEERS EMBEDDED NOI UPSIDE FROM NON SAME-STORE ASSETS YoY Same-Store Revenue Growth
Slide 20: Operations Update
CONFIDENTIAL 4 Operations Update POST QUARTER-END OPERATIONAL UPDATES Same-Store Ending Occupancy(1) Same-Store In-Place Rates(2) December January February December January February $1.64 $1.64 $1.63 92.6% 92.8% $1.59 92.3% 92.4% 92.3% 92.3% $1.58 $1.57 Surprise, AZ 2023 2024 2024 2025 2024 2025 202
Slide 21: Management's Track Record of External Growth
CONFIDENTIAL 4 Management’s Track Record of External Growth SMARTSTOP AND AFFILIATES’ INVESTMENT ACTIVITY 2016-2024 (in millions) (3) ✓ Stabilized Acquisitions: ~$1.0bn of investments on balance $595(1) • Acquired approximately $1.0bn of stabilized properties sheet or on behalf of Managed (3) since
Slide 22: Recent Acquisition Activity (since 9/30/24)
CONFIDENTIAL 4 Recent Acquisition Activity (since 9/30/24) Recently Under closed1 contract Kelowna Total Properties 8 1 Total Purchase Price ($mm) $214 $26 5 10 Total NRSF (Storage Only) ~674,000 ~74,100 13 Boston 6 4 New York Total Units (Storage Only) ~6,700 ~810 Denver 2 2 12 San Jose 10 2 5 Wash
Slide 23: Existing Embedded Internal Growth Opportunities
CONFIDENTIAL 4 Existing Embedded Internal Growth Opportunities SMARTSTOP SAME-STORE RENTAL RATE AND NOI MARGIN EXPANSION PEER COMPARISON - NOI MARGIN AND ADJ. EBITDA(2)(3) FY 2024 Same-store NOI margin FY 2024 Adj. EBITDA margin (1) (3) (4) Rent POF NOI Margin $25 70.7% 71.3% 73.9% 69.6% 67.6% 67.8%
Slide 24: Solar Initiative
CONFIDENTIAL 4 Solar Initiative HIGHLIGHTS(1) ACTUAL GWH PRODUCTION $854K $1.2M $7.7M $10.8M 54 65 9.7 GWh 7.7 GWh Existing Est. Expected Est. Existing Expected Live Solar Expected Solar Cumulative Expected Annual Annual Savings Annual Savings Investment Investment Sites Sites Production Production
Slide 25: SmartStop Managed REIT Platform Provides Additional Capital Allocation Flexibility
CONFIDENTIAL 5 SmartStop Managed REIT Platform Provides Additional Capital Allocation Flexibility Managed REIT and third-party platforms represent a significant expansion opportunity for SmartStop OPERATIONAL PROPERTIES • Acquire growth-oriented properties that broaden STRATEGIC STORAGE TRUST VI, IN
Slide 26: Experienced Senior Management Team
CONFIDENTIAL 6 Experienced Senior Management Team SMARTSTOP EXECUTIVE MANAGEMENT TEAM H. Michael Schwartz James Barry Wayne Johnson Joe Robinson Chairman & Chief Executive Officer CFO & Treasurer President & CIO Chief Operations Officer 19 Years of Storage Experience 12 Years of Storage Experience 3
Slide 27: Experienced Board of Directors
CONFIDENTIAL 6 Experienced Board of Directors • Founder, CEO, and Chairman of SmartStop H. Michael Schwartz • In 2007, founded Strategic Storage Trust (“SST”), which was ultimately sold to Extra Space Storage in 2015 • Negotiated the all-cash merger of Strategic Storage Growth Trust, Inc. (“SSGT”) w
Slide 28: Investment Grade Rated Balance Sheet
CONFIDENTIAL 7 Investment Grade Rated Balance Sheet PRO-FORMA CAPITALIZATION TABLE (MM)(1)(2) SMARTSTOP PRO-FORMA BALANCE SHEET HIGHLIGHTS(1) Revolving Credit Facility $615 Term Loans $128 BBB- 3.5 Years 41.5% Kroll rating Wtd. Avg. Debt Maturity(6) Leverage w/o Preferred(7) Bridge Loan CMBS Debt $3
Slide 29: Appendix
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Slide 30: MSA Exposure – Same-Store (Three Months Ended)
CONFIDENTIAL MSA Exposure – Same-Store (Three Months Ended) Same-Store Portfolio at 12/31/24 Net Rent / Occupied Sq. Avg. Occupancy for the Expenses for the Three Ft. for the Three Months Three Months Ended Revenue for the Three Months Ended December NOI for the Three Months (2) (3) # of Net Rentabl
Slide 31: MSA Exposure – Same-Store (12 Months Ended)
CONFIDENTIAL MSA Exposure – Same-Store (12 Months Ended) Same-Store Portfolio at 12/31/24 Net Rent / Occupied Sq. Avg. Occupancy for the 12 Expenses for the 12 Ft. for the 12 Months Months Ended December Revenue for the 12 Months Months Ended December NOI for the 12 Months (2) (3) # of Net Rentable
Slide 32: MSA Exposure – Total Portfolio
CONFIDENTIAL MSA Exposure – Total Portfolio Wholly-Owned Total Portfolio at 12/31/24 % of Portfolio % of Portfolio Net Rentable MSA/CMA(1) by NRSF by NOI Sq. Ft. # of Stores Units Miami - Fort Lauderdale 9.7% 12.9% 1,221,100 12 10,470 Toronto 8.8% 10.8% 1,110,700 13 10,610 Las Vegas 6.9% 7.1% 865,00
Slide 33: MSA Exposure – Owned & Managed Portfolio
CONFIDENTIAL MSA Exposure – Owned & Managed Portfolio Owned and Managed Total Portfolio at 12/31/24 % of Portfolio by Net Rentable MSA/CMA(1) NRSF Sq. Ft. # of Stores Units Toronto 18.9% 3,147,300 34 30,575 Miami - Fort Lauderdale 7.7% 1,289,600 13 11,230 Las Vegas 5.5% 916,900 10 7,495 Asheville 5.
Slide 34: Reconciliation: Net Income (Loss) to Net Operating Income
CONFIDENTIAL Reconciliation: Net Income (Loss) to Net Operating Income ($ in thousands) 2024 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2023 2023 Q4 2023 Q3 2023 Q2 2023 Q1 Net income (loss) ($5,887) ($151) ($3,392) ($705) ($1,640) $11,647 $2,356 $2,979 $4,279 $2,033 Adjusted to exclude: Tenant protection prog
Slide 35: Non-GAAP Reconciliations (continued)
CONFIDENTIAL Non-GAAP Reconciliations (continued) ($ in thousands) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Reconciliation to fully diluted FFO & FFO, as adjusted: Net income (loss) (151) (3,392) (705) (1,640) $2,356 Other noncontrolling interests (183) (108) (106) (109) (102) Distributio
Slide 36: Non-GAAP Reconciliations (continued)
CONFIDENTIAL Non-GAAP Reconciliations (continued) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Weighted average Class A & T shares outstanding - basic 96,151,349 96,476,987 96,775,724 96,831,903 96,758,797 Weighted average OP units outstanding 13,248,016 13,245,359 13,229,294 13,127,843 12,86
Slide 37: Reconciliation: Net Income (Loss) to Adjusted EBITDA: Trailing 8 Quarters
CONFIDENTIAL Reconciliation: Net Income (Loss) to Adjusted EBITDA: Trailing 8 Quarters ($ in thousands) 2024 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2023 2023 Q4 2023 Q3 2023 Q2 2023 Q1 Net income (loss) ($5,887) ($151) ($3,392) ($705) ($1,640) $11,647 $2,356 $2,979 $4,279 $2,033 Adjustments: Interest expen
Slide 38: Reconciliation: Same-Store Net Operating Income to Total Net Operating Income
CONFIDENTIAL Reconciliation: Same-Store Net Operating Income to Total Net Operating Income ($ in thousands) Net Rent / Occupied Sq. Revenue for the Three Expenses for the Three Ft. for the Three Months Ending Occupancy as Months Ended Months Ended NOI for the Three Months Net Ended December 31,(1) o
Slide 39: Additional Information Regarding FFO & FFO, as Adjusted and NOI
CONFIDENTIAL Additional Information Regarding FFO & FFO, as Adjusted and NOI Funds from Operations (“FFO”) and FFO, as adjusted Funds from operations (“FFO”) is an industry wide metric promulgated by the National Association of Real Estate Investment Trusts, or NAREIT, which SmartStop believes to be
Slide 40: Thank you!
Thank you!
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