SmartStop Self Storage REIT, Inc. (“SmartStop” or “the Company”), a self-managed and fully-integrated self-storage company, announced its overall results for the three and 12 months ended December 31, 2024.

“First and foremost, we are relieved to report that none of our employees or properties were affected by the recent wildfires in Southern California,” said H. Michael Schwartz, Chairman and Chief Executive Officer of SmartStop. “Our thoughts are with the people and communities affected by this terrible disaster. Turning to the fourth quarter, we are very pleased with our results. Despite continued muted activity in the U.S. single-family home market, we’ve seen improving customer demand since peak rental season and many of our key metrics stabilize during the fourth quarter. Most notably, we were able to maintain strong occupancy during a time of year which is typically marked by declines in occupancy, ending the year with same-store occupancy of 92.4%. This paired with a year-over-year increase in achieved move-in rates for certain periods during the quarter, gives us confidence as we enter 2025.

“To that end, we believe that the foundation has been laid for 2025 to be more favorable than 2024, both in the U.S. and Canada, as we believe that sector operating fundamentals appear to have bottomed. While we expect self storage demand to remain below that of recent COVID-19 era demand, we expect demand to surpass that of 2024. Likewise, we expect fewer storage deliveries annually through 2026, leading to a moderating impact from new supply. We believe the combination of these trends will produce an improving operating environment over the course of the year, and storage fundamentals that are incrementally better than 2024 levels. We are extremely proud of our team that continues to outperform even in a challenging macro environment. Many of our largest markets continue to outperform, proving out our operating strategy. Specifically, year-over-year NOI growth in our same-store properties in the Greater Toronto Area was 13.1% on a constant currency basis. This truly is a testament to our tremendous team, as well as the strength of our best-in-class North American self storage portfolio.”

Three Months Ended December 31, 2024 Financial Highlights:

• Net loss attributable to common stockholders was approximately $3.7 million. This represents a decrease in earnings of approximately $2.6 million when compared to the same period in 2023. Net loss per Class A and Class T shares (basic and diluted) was $0.04, an increase in net loss per share of $0.03 as compared to the same period in 2023.
• Total self storage-related revenues were approximately $56.0 million, an increase of approximately $2.7 million when compared to the same period in 2023.
• FFO, as adjusted (attributable to common stockholders and Operating Partnership (“OP”) unit holders), was approximately $11.6 million, a decrease of approximately $2.3 million when compared to the same period in 2023.
• FFO, as adjusted per share and OP unit outstanding – diluted was $0.11, a decrease of approximately $0.02 when compared to the same period in 2023.
• Same-store revenues increased by 2.4%, same-store expenses increased by 5.6%, while same-store net operating income (“NOI”) increased by 1.0% compared to the same period in 2023.
• Same-store average physical occupancy decreased by 0.1% to 92.3% compared to the same period in 2023.
• Same-store annualized rent per occupied square foot was approximately $20.21, an increase of approximately 2.3% when compared to the same period in 2023.

12 Months Ended December 31, 2024 Financial Highlights:

• Net loss attributable to common stockholders was approximately $18.4 million. This represents a decrease in earnings of approximately $15.6 million when compared to the same period in 2023. Net loss per Class A and Class T shares (basic and diluted) was $0.20, an increase in net loss per share of $0.17 when compared to the same period in 2023.
• Total self storage-related revenues were approximately $219.0 million, an increase of approximately $3.7 million when compared to the same period in 2023.
• FFO, as adjusted (attributable to common stockholders and Operating Partnership (“OP”) unit holders), was approximately $46.8 million, a decrease of approximately $13.7 million when compared to the same period in 2023.
• FFO, as adjusted per share and OP unit outstanding – diluted was $0.42, a decrease of approximately $0.13 when compared to the same period in 2023.
• Same-store revenues increased by 0.4%, same-store expenses increased by 5.1%, while same-store net operating income (“NOI”) decreased by 1.7% compared to the same period in 2023.
• Same-store average physical occupancy decreased by 0.7% to 92.2% compared to the same period in 2023.
• Same-store annualized rent per occupied square foot was approximately $20.02, an increase of approximately 1.0% when compared to the same period in 2023.

External Growth

During the quarter, the Company acquired five self-storage properties located in the Boston MSA, the Denver MSA, the San Jose MSA , the Washington DC MSA and the Los Angeles MSA for a combined purchase price of approximately $132.2 million. The properties comprise approximately 383,000 net rentable square feet and 3,750 storage units.

Subsequent to quarter end, we purchased two self storage facilities located in the New York MSA for a combined purchase price of approximately $74.5 million. The properties comprise approximately 228,000 net rentable square feet and 2,485 storage units. Additionally, we purchased a self storage facility located in the Nashville, TN MSA for approximately $7.9 million. The property comprises approximately 63,300 net rentable square feet and 500 storage units.

Capital Market Activities

During the quarter, the Company entered into a loan with Extra Space Storage LP, as lender, with a loan amount of $42.0 million (the "2027 Ladera Ranch Loan"), in connection with the acquisition of the property located in the Los Angeles MSA in Ladera Ranch (the "Ladera Ranch Property") from Extra Space Storage. The loan is interest only with a fixed rate of 5.0% per annum, has a maturity date of December 5, 2027, and is secured by the Ladera Ranch Property.

During the quarter, the Company entered into a credit agreement with KeyBank with a maximum total commitment of $175 million (the "2025 KeyBank Acquisition Facility"). Upon the closing of the 2025 KeyBank Acquisition Facility, the Company immediately borrowed approximately $15 million, which was used to fund the acquisition of a self storage facility. In December 2024, the Company borrowed an additional approximately $85.2 million, which was used to fund the acquisition of four self storage facilities. As of December 31, 2024, there was $100.2 million outstanding on the 2025 Keybank Acquisition Facility. Subsequent to December 31, 2024, the Company borrowed an additional approximately $74.8 million, which was used to fund the acquisition of two self storage facilities. As such, the maximum commitment of $175 million was borrowed, and no further draws could be made in connection with the credit agreement.

Subsequent to quarter end, the Company defeased its KeyBank Florida CMBS Loan, which carried a balance of approximately $49.9 million as of December 31, 2024. In connection with the completion of the defeasance of the KeyBank Florida CMBS Loan, the Company exercised the accordion rights under the 2024 KeyBank Credit Facility (the "Credit Facility") to increase commitments by $50 million to a total of $700 million and simultaneously drew approximately $51 million. Furthermore, in connection with the completion of the defeasance, we executed joinders to add the five properties previously encumbered by the KeyBank Florida CMBS Loan onto the Credit Facility, and to remove one property in Asheville, North Carolina that was severely damaged by Hurricane Helene.

Managed REIT Platform Update

SmartStop, through an indirect subsidiary, serves as the sponsor of Strategic Storage Growth Trust III, Inc. “SSGT III” and Strategic Storage Trust VI, Inc. (“SST VI” and together with SSGT III, the “Managed REITs”). SmartStop receives asset management fees, property management fees, acquisition fees, and other fees and receives substantially all of the tenant protection program revenue earned by the Managed REITs, which had a combined portfolio of 36 operating properties and approximately 28,000 units and 3.1 million rentable square feet at quarter end. Assets under management for the Managed REITs was approximately $771.2 million at quarter end. SmartStop also manages one additional property, not owned by the Managed REITs.

Declared Distributions

On January 31, 2025, our board of directors declared a distribution rate for the month of February 2025 of approximately $0.0460 per share on the outstanding shares of common stock payable to Class A and Class T stockholders of record of such shares as shown on our books at the close of business on February 28, 2025. Such distributions payable to each stockholder of record will be paid the following month.

On February 26, 2025, our board of directors declared a distribution rate for the month of March 2025 of approximately $0.0510 per share on the outstanding shares of common stock payable to Class A and Class T stockholders of record of such shares as shown on our books at the close of business on March 31, 2025. Such distributions payable to each stockholder of record will be paid the following month.

SmartStop's same-store revenue increased by approximately $1.2 million for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 due to higher annualized rent per occupied square foot, partially offset by the impact of decreased occupancy. The increase in property operating expenses is primarily attributable to increased property insurance costs, property taxes, payroll costs, and advertising expenses.

The following table presents a reconciliation of net income (loss) as presented on our consolidated statements of operations to net operating income, as stated above, for the periods indicated (in thousands):

SmartStop's same-store revenue increased by approximately $0.8 million for the year ended December 31, 2024 compared to the year ended December 31, 2023 due to higher annualized rent per occupied square foot, partially offset by the impact of decreased occupancy. The increase in property operating expenses is primarily attributable to increased property insurance costs, property taxes, payroll costs, repairs and maintenance expenses, and advertising expenses.

The following table presents a reconciliation of net income (loss) as presented on our consolidated statements of operations to net operating income, as stated above, for the periods indicated (in thousands):

ADDITIONAL INFORMATION REGARDING NOI, FFO, and FFO, as adjusted

Net Operating Income (“NOI”)

NOI is a non-GAAP measure that SmartStop defines as net income (loss), computed in accordance with GAAP, generated from properties, excluding tenant protection plan revenue, before corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization, acquisition expenses and other non-property related expenses. SmartStop believes that NOI is useful for investors as it provides a measure of the operating performance of its operating assets because NOI excludes certain items that are not associated with the ongoing operation of the properties. Additionally, SmartStop believes that NOI is a widely accepted measure of comparative operating performance in the real estate community. However, SmartStop’s use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount.

Funds from Operations (“FFO”) and FFO, as Adjusted

Funds from Operations

Funds from operations ("FFO"), is a non-GAAP financial metric promulgated by NAREIT that SmartStop believes is an appropriate supplemental measure to reflect operating performance. SmartStop defines FFO consistent with the standards established by the white paper on FFO approved by the board of governors of NAREIT, or the White Paper. The White Paper defines FFO as net income (loss) computed in accordance with GAAP, excluding gains or losses from sales of property and real estate related asset impairment write downs, plus depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. Additionally, gains and losses from change in control are excluded from the determination of FFO. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. SmartStop’s FFO calculation complies with NAREIT’s policy described above.

FFO, as Adjusted

SmartStop uses FFO, as adjusted, as an additional non-GAAP financial measure to evaluate their operating performance. FFO, as adjusted, provides investors with supplemental performance information that is consistent with the performance models and analysis used by management. In addition, FFO, as adjusted, is a measure used among SmartStop’s peer group, which includes publicly traded REITs. Further, SmartStop believes FFO, as adjusted, is useful in comparing the sustainability of their operating performance with the sustainability of the operating performance of other real estate companies.

In determining FFO, as adjusted, SmartStop makes further adjustments to the NAREIT computation of FFO to exclude the effects of non-real estate related asset impairments and intangible amortization, acquisition related costs, other write-offs incurred in connection with acquisitions, contingent earnout expenses, accretion of fair value of debt adjustments, amortization of debt issuance costs, gains or losses from extinguishment of debt, adjustments of deferred tax assets and liabilities, realized and unrealized gains/losses on foreign exchange transactions, gains/losses on foreign exchange and interest rate derivatives not designated for hedge accounting, and other select non-recurring income or expense items which SmartStop believes are not indicative of their overall long-term operating performance. SmartStop excludes these items from GAAP net income (loss) to arrive at FFO, as adjusted, as they are not the primary drivers in their decision-making process and excluding these items provides investors a view of their continuing operating portfolio performance over time, which in any respective period may experience fluctuations in such acquisition, merger or other similar activities that are not of a long-term operating performance nature. FFO, as adjusted, also reflects adjustments for unconsolidated partnerships and jointly owned investments. SmartStop uses FFO, as adjusted, as one measure of their operating performance when they formulate corporate goals and evaluate the effectiveness of their strategies.

Presentation of FFO and FFO, as adjusted, is intended to provide useful information to investors as they compare the operating performance of different REITs. However, not all REITs calculate FFO and FFO, as adjusted, the same way, so comparisons with other REITs may not be meaningful. Furthermore, FFO and FFO, as adjusted, are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) as an indication of our performance, as an alternative to cash flows from operations as an indication of SmartStop’s liquidity or indicative of funds available to fund their cash needs including their ability to make distributions to their stockholders. FFO and FFO, as adjusted, should be reviewed in conjunction with other measurements as an indication of our performance.

Neither the SEC, NAREIT, nor any other regulatory body has passed judgment on the acceptability of the adjustments that SmartStop uses to calculate FFO or FFO, as adjusted. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the allowable adjustments across the publicly registered, non-traded REIT industry and SmartStop would have to adjust its calculation and characterization of FFO or FFO, as adjusted.

This press release, our Form 10-K for the year ended December 31, 2024, a financial supplement, and additional information about SmartStop are available on our website, investors.smartstopselfstorage.com.

About SmartStop Self Storage REIT, Inc. (“SmartStop”):

SmartStop Self Storage REIT, Inc. (“SmartStop”) is a self-managed REIT with a fully integrated operations team of approximately 570 self-storage professionals focused on growing the SmartStop® Self Storage brand. SmartStop, through its indirect subsidiary SmartStop REIT Advisors, LLC, also sponsors other self-storage programs. As of March 12, 2025, SmartStop has an owned or managed portfolio of 218 operating properties in 23 states, the District of Columbia, and Canada, comprising approximately 156,400 units and 17.6 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.

Forward-Looking Statements

Certain of the matters discussed in this earnings release, other than historical facts, 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 identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. There are several factors which could cause actual plans and results to differ materially from those expressed or implied in forward-looking statements, including, without limitation, the following: (i) disruptions in the economy, including debt and banking markets and foreign currency changes; (ii) significant transaction costs, including financing costs, and unknown liabilities; (iii) whether we will be successful in the pursuit of our business plan; (iv) whether we will succeed in our investment objectives; (v) changes in the political and economic climate, economic conditions and fiscal imbalances in the United States, and other major developments, including wars, natural disasters, epidemics and pandemics, military actions, and terrorist attacks; (vi) changes in tax and other laws and regulations; (vii) difficulties in our ability to attract and retain qualified personnel and management; or (viii) the effect of competition at our self-storage properties or from other storage alternatives, which could cause rents and occupancy rates to decline.

Actual results may differ materially from those indicated by such forward-looking statements. In addition, the forward-looking statements represent SmartStop’s views as of the date on which such statements were made. SmartStop anticipates that subsequent events and developments may cause its views to change. These forward-looking statements should not be relied upon as representing SmartStop’s views as of any date subsequent to the date hereof.

Additional risk factors that may affect the business or financial results of SmartStop are described in the risk factors included in SmartStop’s filings with the SEC, including SmartStop’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and Quarterly Reports on Form 10-Q, which factors are incorporated herein by reference, all of which are filed with the SEC and available at www.sec.gov. All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. SmartStop expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences.

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