SmartStop Self Storage REIT, Inc. announced a series of strategic investments totaling approximately $140 million on September 29, 2026. The company stated that these transactions are expected to be modestly accretive to its 2026 estimated Funds From Operations (FFO), as adjusted, per share, and will add approximately $0.05 to $0.06 to its 2027 estimated FFO, as adjusted, per share.
The company is expanding its North American platform through four primary initiatives:
- Canada Joint Venture: SmartStop agreed to invest approximately USD $54 million into a Canadian joint venture fund. This investment provides SmartStop with a 50% General Partner interest and a 34% Limited Partner interest in 14 self-storage properties comprising approximately 961,000 net rentable square feet and 9,600 units. The portfolio is approximately 50% physically occupied and is in early lease-up. SmartStop anticipates completing this transaction in the fourth quarter of 2026, subject to approval under the Canadian Competition Act. This investment positions SmartStop as Canada's third-largest self-storage operator.
- U.S. Acquisitions: The company expects to acquire two stabilized properties in Las Vegas, Nevada, and Asheville, North Carolina, for approximately $37 million, adding more than 186,000 net rentable square feet and 1,600 units.
- Programmatic Investment Partnership: SmartStop established a new programmatic investment relationship with a vertically integrated Class A self-storage developer. In September, the joint venture closed one preferred investment reflecting a net investment of $13.2 million from SmartStop. The joint venture expects to close five additional preferred equity and/or mezzanine loan investments by the end of the fourth quarter of 2026, reflecting a net investment from SmartStop of approximately $35 to $40 million.
- Asset Management Program: SmartStop initiated a strategic asset management program to pursue the opportunistic disposition of select wholly owned properties in noncore markets. The company initially targets $75 million to $125 million of property sales beginning in early 2027, intending to recycle capital into its core markets.
To fund these investments while maintaining a leverage-neutral capital structure, SmartStop utilized its at-the-market equity program to price approximately 2.4 million shares sold on a forward basis at an average price of $32.01 per share for gross proceeds of up to approximately $78 million. The company also utilized a CAD $200 million Maple Bond offering closed on August 18, 2026, which carries a fixed-interest rate of 4.317% and matures in 2031.
In conjunction with the announcement, SmartStop raised its full-year 2026 guidance for FFO, as adjusted, per share by $0.01. The company updated its same-store guidance ranges for 2026, projecting same-store revenue growth of 0.75% to 1.75%, same-store operating expense growth of 0.00% to 1.00%, and same-store net operating income growth of 1.15% to 2.15%.
