Wang & Lee Group board approves 250-to-1 reverse share split
SmartStop Self Storage REIT, Inc. (the "Company"), a Maryland-based real estate investment trust with a market capitalization of $31.86 billion and a "GOOD" Financial Health rating according to InvestingPro, announced today a one-for-four reverse stock split of its Class A and Class T common stock. The reverse stock split took effect on Thursday, March 20, 2025, following approval from the Company’s board of directors.
The reverse stock split reduced the number of outstanding shares of the Company’s common stock, with every four shares being combined into one share. This action was immediately followed by a decrease in par value from $0.004 per share to $0.001 per share for all issued and outstanding shares. The Company maintains strong financial fundamentals with a healthy current ratio of 1.33, indicating sufficient liquidity to meet its short-term obligations.
In conjunction with the reverse stock split, the Company also executed a one-for-four reverse unit split of the units in SmartStop OP, L.P., its operating partnership. As a result, every four Operating Partnership units were consolidated into one unit.
The Company’s board also decided to suspend the distribution reinvestment plan (DRP), meaning that distributions for March 2025 and any future distributions will be paid in cash until further notice.
These changes were made to update the Company’s financial information and related disclosures in its Annual Report on Form 10-K for the year ended December 31, 2024. The updated financial statements reflect the reverse stock split and include consolidated balance sheets, statements of operations, statements of equity and temporary equity, and notes to the consolidated financial statements.
The reverse stock split and related actions are intended to increase the per-share trading price of the Company’s common stock, potentially improving marketability and liquidity.
This information is based on a press release statement.
In other recent news, Extra Space Storage (NYSE:EXR) Inc. reported its fourth-quarter 2024 earnings, which revealed a mixed performance. The company surpassed earnings per share (EPS) estimates with an actual EPS of $1.24, exceeding the forecasted $1.07. However, revenue fell slightly short of expectations, coming in at $821.89 million compared to the anticipated $825.25 million. In another development, Extra Space Storage completed a public offering of $500 million in senior notes, which are due in 2035 with an interest rate of 5.400%. The proceeds from these notes are guaranteed by the company and associated business trusts, with the notes being unsecured senior obligations.
Additionally, Extra Space Storage provided guidance for 2025, setting its Core Funds From Operations (FFO) between $8.00 and $8.30 per share. The company anticipates same-store revenue growth ranging from -0.75% to +1.25% and expects expense growth between 3.75% and 5.25%. Despite the revenue miss, the company maintained industry-leading occupancy rates and focused on strategic brand consolidation and digital marketing enhancements. Furthermore, the company faced challenges such as potential property tax increases and price sensitivity among new customers. These recent developments highlight Extra Space Storage’s strategic financial maneuvers and operational resilience in a competitive market environment.
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