Key Highlights

  • Same-store net Operating Income grew 4.9% in the third quarter, with same-store Revenue up 2.0% and same-store property operating expenses down 3.8%, extending a run of Margin gains.
  • FFO as adjusted reached USD 0.51 per diluted share and OP unit, a gain of about USD 0.04, or USD 30.3 million in total, while Net Income per share came to USD 0.16, up about USD 0.07.
  • The company agreed to invest roughly CAD 74.3 million in a Canadian joint venture fund owning 14 properties, with additional commitments of up to CAD 228.0 million.
  • Same-store average physical occupancy was 92.2%, down about 0.4% year over year, while annualized rent per occupied square foot rose about 2.6% to USD 20.99.

Lower Operating Costs Carry Same-Store Profit

SmartStop Self Storage REIT (NYSE:SMA) released third quarter figures on November 4, 2026. Self storage-related revenue came to about USD 68.2 million, roughly USD 3.6 million higher, and net income attributable to common stockholders was about USD 9.0 million. Nine-month FFO as adjusted reached USD 1.49 per share, up about USD 0.18, and net income for the period was USD 0.53 per share. The chief executive described this as the third straight quarter of margin improvement and said full-year same-store NOI guidance had been raised for the fourth time this year. Funds from operations adds real estate Depreciation back to net income, and the company presents the adjusted version.

Strategic Storage Canada Stake, Bond Deal and Managed REIT Merger

The Strategic Storage Canada transaction would give SmartStop a 50% general partner interest and a projected 34% limited partner stake, which could reach about 44% after conversions. The fund is roughly 50% occupied and still in early lease-up, and closing hinges on Canadian Competition Act clearance, anticipated in the fourth quarter. SmartStop also priced a CAD 200 million bond at about 4.32%, maturing February 2031. On November 1, 2026 one managed REIT absorbed another, eliminating the subordinated distribution SmartStop could have drawn from the acquired vehicle, while leaving a comparable interest in the survivor.

Bridge Lending, Forward Share Sale and Monthly Distributions

Through bridge lending and preferred investments, the company closed USD 18.2 million of preferred positions and a USD 16.7 million bridge loan, with a weighted average Yield of about 17.6% before fees. It also manages about 230 stores for outside parties. A program to sell USD 75 million to USD 125 million of non-core properties begins in early 2027, and two stabilized properties are under contract for about USD 37 million. Around 2.4 million shares were sold forward at an initial average gross price of USD 32.01, bringing gross proceeds of up to about USD 78.1 million, expected to settle in the fourth quarter. Occupancy softened and a currency headwind weighed on results, and the Canadian transaction carries closing conditions and lender guarantees. The board set monthly distributions at an annualized USD 1.60 per share.

Where Things Stand

Lower property costs, not revenue, produced the margin gain: same-store operating expenses fell 3.8% while revenue rose 2.0%, lifting the Operating Margin by 190 basis points. Because occupancy eased, the next checks are the pending Canadian expansion, the planned property sales and the share settlement. The release contained no stock price reaction, and the Canadian deal may not close.