Street Calls of the Week
LADERA RANCH, Calif. - SmartStop Self Storage REIT, Inc. (NYSE:SMA), a self-storage operator with a market capitalization of $1.42 billion and annual revenue of $243.4 million, announced Wednesday it has closed its previously announced CAD$200 million aggregate principal amount of Series B Senior Unsecured Notes. The notes, due September 24, 2030, were issued by the company’s operating partnership, SmartStop OP, L.P. According to InvestingPro data, the company maintains a Fair financial health rating, with particularly strong cash flow metrics.
The notes bear interest at approximately 3.888% per annum, payable in equal semiannual installments starting March 24, 2026. Morningstar DBRS has rated the notes BBB mid with a Stable Outlook. With an EBITDA of $123.56 million in the last twelve months, the company demonstrates solid operational performance despite currently trading above its Fair Value, according to InvestingPro analysis.
This represents SmartStop’s second senior unsecured Canadian bond offering, reflecting the company’s established presence in the Canadian market, where it has operated for more than 15 years in the Greater Toronto Area. The company plans to use the net proceeds to repay outstanding debt, fund acquisitions and for general corporate purposes.
"Coming back to the Maple Bond market is a representation of SmartStop’s ability to be opportunistic, raising capital at an attractive cost and reinforcing our position in this particular space," said H. Michael Schwartz, Chairman and CEO of SmartStop.
The notes were offered by a syndicate of agents including BMO Capital Markets and National Bank Capital Markets as bookrunners, with Scotia Capital Inc. and RBC Dominion Securities Inc. serving as co-managers.
SmartStop is a self-managed REIT with a portfolio of 236 operating properties across 23 states, the District of Columbia, and Canada, comprising approximately 170,500 units and 19.1 million rentable square feet, according to the company’s press release statement. InvestingPro analysis reveals strong growth potential, with revenue growing at 8.93% and analysts expecting continued sales growth this year. Get access to more detailed insights and 12+ additional ProTips with an InvestingPro subscription.
The notes have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
In other recent news, SmartStop Self Storage REIT, Inc. announced the pricing of a CAD $200 million Canadian Maple Bond offering through its operating partnership, SmartStop OP, L.P. The series B senior unsecured notes, which mature in 2030, carry an interest rate of approximately 3.888% per annum. Additionally, the notes received a BBB (Stable) rating from Morningstar DBRS. Strategic Storage Trust VI, an affiliate of SmartStop, entered into a $35 million preferred unit investment agreement, with an initial $5 million investment already completed. In terms of acquisitions, SmartStop Self Storage REIT acquired a Class A self-storage facility in Rahway, New Jersey, expanding its property portfolio. On the analyst front, Truist Securities reaffirmed its Buy rating for SmartStop Self Storage, raising the stock price target to $39.00. The firm cited stabilization in self-storage core operations and improved demand as factors for maintaining its full-year operating guidance. These developments highlight the company’s ongoing strategic initiatives and financial maneuvers.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.