Strategic Storage Trust VI announces $35 million preferred unit investment

Strategic Storage Trust VI, Inc. disclosed Friday it has entered into a Series D Cumulative Redeemable Preferred Unit Purchase Agreement with SSSR Preferred Investor, LLC, an affiliate of SmartStop Self Storage REIT, Inc. (NYSE:SMA). SmartStop, currently valued at $1.4 billion, has shown strong momentum with its stock trading near its 52-week high of $37.79. The agreement, signed Thursday, allows SSSR Preferred Investor to acquire up to 1,400,000 Series D Cumulative Redeemable Preferred Units in Strategic Storage Operating Partnership VI, L.P. for up to $35 million.

The initial closing occurred Thursday with the issuance of 200,000 Series D Preferred Units in exchange for a $5 million investment. Each unit is priced at $25, with an investment fee of 1.0% of the invested amount applied at each closing.

The company stated it intends to use the net proceeds to pay down debt, fund development and improvement projects, provide working capital, or for other general corporate purposes. This capital raise comes as SmartStop demonstrates solid revenue growth of 8.93% over the last twelve months. According to InvestingPro analysis, which offers comprehensive insights on over 1,400 US stocks, the company maintains a healthy dividend yield of 4.29%.

According to the filing, the Series D Preferred Units rank senior to all common units and junior to certain other preferred units, including the Series B Preferred Units. The preferred units carry a distribution rate of 6.0% per annum on the liquidation amount until the second anniversary of issuance. The rate increases to 7.0% after two years, 8.0% after three years, and 9.0% after four years, with distributions paid monthly and calculated on an actual/360 basis.

In the event of a liquidation, dissolution, or winding up of the operating partnership, holders of Series D Preferred Units are entitled to receive $25 per unit plus any accrued and unpaid distributions, subject to adjustments for recapitalizations or similar events.

The operating partnership may redeem the Series D Preferred Units in whole or in part at any time after the second anniversary of issuance at a price equal to the liquidation preference plus accrued but unpaid distributions. Holders may also request repurchase of their units following an Optional Repurchase Event as defined in the agreement.

This information is based on a press release statement contained in the company’s recent SEC filing. Strategic Storage Trust VI, Inc. does not have securities listed for trading on a public exchange.

In other recent news, SmartStop Self Storage REIT reported its second-quarter earnings for 2025, with adjusted funds from operations per share at $0.42. Despite strong operational performance, the company recorded a net loss of $0.16 per share, falling short of analysts’ expectations. Revenue for the quarter amounted to $66.82 million. In addition to the earnings report, SmartStop Self Storage REIT announced the acquisition of a Class A self-storage facility in Rahway, New Jersey, which spans approximately 53,450 net rentable square feet. Analyst activity around the company included Truist Securities raising its price target for SmartStop to $39, maintaining a Buy rating. Similarly, Raymond James reiterated a Strong Buy rating with a $42 price target, citing confidence in the company’s value creation strategy. Furthermore, SmartStop executives showcased their AI pricing system at the Ai4 2025 conference in Las Vegas, highlighting the company’s technological advancements.

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