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KeyBanc raised its price target on SmartStop Self Storage (NYSE:SMA) to $40.00 from $38.00 on Monday, while maintaining an Overweight rating on the self-storage company’s stock. The company, currently valued at $1.35 billion, trades near its 52-week high of $37.74, with shares at $36.02. According to InvestingPro data, the stock offers a notable 4.42% dividend yield.
The price target increase follows SmartStop’s CAD $500 million private placement (approximately USD $368 million), which KeyBanc noted was priced better than expected at 3.91%. The favorable pricing was supported by SmartStop’s receipt of a BBB rating from rating agency Morningstar DBRS in late May.
The debt issuance exceeded KeyBanc’s previous assumptions by approximately $168 million and surpassed management’s guidance of USD $200-250 million. KeyBanc believes this successful execution will drive down SmartStop’s blended cost of capital.
SmartStop has been accelerating its investment activity, completing or putting under contract $186 million in acquisitions since its initial public offering in early April. This pace exceeds previous expectations, according to KeyBanc.
Based on these developments, KeyBanc has increased its 2025 and 2026 estimates for SmartStop and expects the improved cost of capital to put upward pressure on consensus forecasts.
In other recent news, SmartStop Self Storage REIT Inc. reported its Q1 2025 earnings, showcasing a 3.2% growth in same-store revenue and a 2.3% increase in same-store net operating income. Despite a negative earnings per share (EPS) of -$0.35, the company achieved a revenue of $65.45 million. SmartStop also acquired three properties for $82.5 million during the quarter, underscoring its strategic focus on expansion. Additionally, the company provided full-year guidance, projecting funds from operations (FFO) per share between $1.84 and $1.92. In another development, SmartStop is set to join the Russell 3000 Index following its recent debut on the New York Stock Exchange. This inclusion is expected to enhance the company’s visibility among institutional investors. Furthermore, the company continues to emphasize technology investments, which are integral to its growth strategy.
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