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LADERA RANCH, Calif. - SmartStop Self Storage REIT, Inc. (NYSE:SMA), a $1.42 billion market cap self-storage operator, announced Wednesday it has signed a contribution agreement to acquire Argus Professional Storage Management (APSM), the second largest independent self-storage third-party management company in the U.S. According to InvestingPro analysis, SmartStop currently appears undervalued based on its Fair Value assessment.
The combined entity will own or manage over 460 self-storage properties across North America. The transaction is expected to close in October 2025, subject to customary closing conditions, according to a company press release.
SmartStop currently operates 236 properties in 23 states, the District of Columbia, and Canada, comprising approximately 170,500 units and 19.1 million rentable square feet. With an EBITDA of $123.56 million in the last twelve months and revenue growth of 8.93%, the company has shown solid operational performance. APSM manages 227 stores across 26 states, encompassing approximately 16.6 million rental square feet and 102,000 units.
Following the acquisition, SmartStop will offer three partnership options for third-party management: a traditional SmartStop-branded strategy, a SmartStop Legacy option allowing partners to maintain their existing brand while operating on SmartStop’s platform, and a Full Private Label solution that preserves existing brand identity.
H. Michael Schwartz, Chairman and CEO of SmartStop, stated the strategic combination "expedites SmartStop’s expansion into third-party management in a manner that we believe will be immediately accretive to SmartStop’s FFO as Adjusted."
Ben Vestal, CEO of APSM, called the merger "a game-changing deal for the self-storage industry" that will create "a best-in-class operating and management platform."
BMO Capital Markets Corp. is acting as SmartStop’s exclusive financial advisor for the transaction. Nelson Mullins Riley & Scarborough LLP is providing legal counsel to SmartStop, while Fennemore Craig, P.C. is advising APSM.
The financial terms of the transaction were not disclosed in the announcement. Analysts maintain a strong buy consensus on SmartStop’s stock, with InvestingPro data showing multiple additional growth indicators and financial metrics available for subscribers. Get access to the comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks, for detailed analysis and actionable insights.
In other recent news, SmartStop Self Storage REIT, Inc. has successfully closed a CAD $200 million offering of Series B Senior Unsecured Notes. These notes, which mature on September 24, 2030, carry an interest rate of approximately 3.888% per annum and have been rated BBB mid with a Stable Outlook by Morningstar DBRS. Truist Securities has reaffirmed its Buy rating for SmartStop Self Storage, citing stabilization in core operations and improved demand. Additionally, SmartStop has acquired a Class A self-storage facility in Rahway, New Jersey, which features approximately 53,450 net rentable square feet and offers climate-controlled storage units and RV parking units.
Strategic Storage Trust VI, affiliated with SmartStop, has entered into a $35 million preferred unit investment agreement, with an initial $5 million investment already closed. The company priced its CAD $200 million Maple Bond offering, set to mature in 2030, with the same interest rate and rating as the Series B notes. These developments reflect SmartStop’s active engagement in strategic investments and expansions.
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