TSX runs higher on rate cut expectations
Investing.com - Truist Securities raised its price target on SmartStop Self Storage (NYSE:SMA) to $39.00 from $38.00 while maintaining a Buy rating on the stock. The company, with a market capitalization of $1.35 billion, currently trades at $36.11, near its 52-week high of $37.79. According to InvestingPro, the stock offers a notable dividend yield of 4.52%.
The price target increase is based on an updated net asset value per share of $43.06 using a blended cap rate of approximately 5.4%, along with a discounted cash flow valuation of $36.55 per share that uses a 3.5% terminal growth rate and 9.6% discount rate. InvestingPro analysis reveals that while net income growth is expected this year, the company is not currently profitable over the last twelve months. Get access to 10+ additional ProTips and comprehensive financial metrics with InvestingPro.
Truist has raised its 2025 funds from operations (FFO) per share estimate to $1.90 from $1.89, which exceeds the midpoint of management’s guidance range of $1.85-$1.93 and is above the consensus estimate of $1.89 per share.
The firm maintained its 2026 FFO per share estimate at $2.21, above the consensus of $2.15, projecting 12.3% year-over-year FFO growth in 2025 followed by 16.3% growth in 2026, with 5.3% annual FFO growth projected from 2025-2030.
Truist’s model assumes $374 million of acquisitions in 2025, aligning with management’s guidance of $350-$400 million, and projects $250 million in acquisitions for fiscal year 2026.
In other recent news, SmartStop Self Storage REIT Inc reported its second-quarter earnings for 2025, with an adjusted funds from operations (FFO) per share of $0.42. The company experienced a net loss of $0.16 per share, which did not meet analysts’ expectations. Revenue for the quarter was reported at $66.82 million. Additionally, Raymond James reiterated its Strong Buy rating for SmartStop Self Storage, maintaining a price target of $42.00. This decision came after investor meetings with management, where the firm expressed increased confidence in the company’s value creation strategy. Furthermore, SmartStop executives showcased their proprietary AI pricing technology at the Ai4 2025 conference in Las Vegas. They were the only representatives from the self-storage sector at this major artificial intelligence event. These developments reflect the company’s ongoing efforts to leverage technology and strategic initiatives.
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