Strategic Storage Trust II, Inc. Reports 2018 Fourth Quarter and Fiscal Year End Results
LADERA RANCH, CA – April 3, 2019 – Strategic Storage Trust II, Inc. (“SST II”) announced increases in total revenues and net operating income (“NOI”), as well as increases in same-store results, including revenues, NOI and annualized revenue per occupied square foot, as part of its overall operating results for the three and twelve months ended December 31, 2018.
“The existing SST II portfolio continues to perform,” said H. Michael Schwartz, CEO and chairman of the board of directors of SST II. “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.”
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% 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”). SSGT stockholders approved the transaction at a special meeting of stockholders held on January 18, 2019. SSGT stockholders received $12.00 per share in cash which represented a total purchase price of approximately $350 million, which includes SSGT debt and other liabilities that were assumed or repaid. In conjunction with the SSGT Merger, SST II entered into new financing for an aggregate initial draw of approximately $500.2 million and repaid approximately $141.1 million of existing debt. The new debt is comprised of a $235 million CMBS/SASB loan, a $104 million CBMS loan, an approximately $96.4 million secured property loan and an $87.7 million senior term loan.
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.
On March 18, 2019, SST II’s board of directors declared a distribution rate for the second quarter of 2019 of $0.001644 per day per share on the outstanding shares of common stock payable to both Class A and Class T stockholders of record of such shares as shown on their books at the close of business on each day during the period, commencing on April 1, 2019 and continuing on each day thereafter through and including June 30, 2019. In connection with this distribution, after the stockholder servicing fee is paid, approximately $0.0014 per day will be paid per Class T share. Such distributions payable to each stockholder of record during a month will be paid the following month.
SmartStop Asset Management, LLC
10 Terrace Rd.
Ladera Ranch, CA 92694
T: (949) 429.6600
F: (949) 429.6606