SmartStop Self Storage Q3 adjusted FFO rises on lower property costs; lifts NOI outlook

Overview

• Self storage REIT's Q3 revenue and net income rose yr/yr

• Q3 adjusted FFO increased from prior year

• Company agreed to $74.3 mln CAD investment in Canadian joint venture

Outlook

• SmartStop raises 2026 same-store NOI growth guidance to 2.0%-2.5% from 1.15%-2.15%

• Company expects to close Canadian joint venture investment in Q4 2026

• Company plans $75 mln to $125 mln in property sales starting early 2027

Result Drivers

• MARGIN EXPANSION - Higher same-store revenue and lower operating expenses drove margin improvement

• RENT GROWTH - Company said higher annualized rent per occupied square foot contributed to revenue increase

• OCCUPANCY PRESSURE - Same-store average occupancy declined 40 basis points to 92.2%

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for SmartStop Self Storage REIT Inc is $37.00, about 1% above its November 3 closing price of $36.65

• The stock recently traded at 65 times the next 12-month earnings vs. a P/E of 67 three months ago

Reuters Recommended Reads

• Nov 3 - Postal Realty Trust Q3 rental income rises 25% on acquisitions

• Nov 2 - Realty Income's Q3 revenue beats; raises 2026 AFFO per share outlook

• Nov 3 - Canada's Dream Industrial REIT Q3 net rental income jumps on strong leasing activity

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)