Smartstop Self Storage REIT Inc Q3 FY2025 earnings call

• Strong third quarter results with sector-leading same-store revenue growth of 2.5% and average occupancy of 92.6%. • Returned to Canadian Maple bond market, raising CAD 200 million at 3.89% coupon with 5-year maturity. • Acquired ~$86 million of Class A storage properties on balance sheet in U.S. and Canada, and $15.3 million property post quarter end. • Increased loans and preferred investments to managed REITs by ~$20 million, deploying ~$106 million of accretive capital during the quarter. • Entered into contribution agreement with Argus Professional Storage Management, doubling store count and increasing owned and managed net rental square feet to over 35 million. • SmartStop included in MSCI U.S. REIT Index. • Same-store revenue growth, operating expense growth, and NOI growth in line with expectations. • Managed REITs had assets under management of $972 million, recognized gross fees and interest income. • Balance sheet updates including pricing of second Maple bond and JV level debt refinance.

Same-store pool posted year-over-year revenue growth of 2.5%, with operating expense growth of 4.5%, leading to an NOI increase of 1.5%. FX impact from 13 Canadian same-store assets was a headwind of ~10 basis points. Constant currency revenue growth was 2.6%, expense growth 4.6%, and NOI growth 1.6%. Same-store pool ended the quarter at 92.4% occupancy, up 10 basis points year-over-year, while average occupancy was 92.6%, up 40 basis points year-over-year. Acquired 6 properties for $83 million and a piece of land within a joint venture for $1 million during the quarter, with full year acquisition of $318 million through end of September. 3 managed REIT funds had assets under management of $972 million, recognized gross fees of $3.6 million, and increased loans and preferred investments to managed REITs by ~$20 million, recognizing interest income of $1.5 million. FFO as adjusted per share and unit for third quarter of 2025 was $0.47, below expectations due to unexpected vacate of industrial tenant and onetime equity-based compensation expense.

• Updated full year 2025 guidance: same-store revenue growth in 1.9% to 2.3% range, operating expense growth 4.0% to 4.4% range, resulting in NOI growth 0.9% to 1.1%. • Tightened FFO as adjusted per share range to $1.87 to $1.91 for full year 2025. • Narrowed acquisitions guidance to $365 million to $385 million. • 4Q FFO as adjusted per share implied is $0.56 on midpoint, reflecting various financing activities and G&A seasonality.

• Volatile capital markets and broader economic uncertainty. • Choppy self-storage market with uncertain customer demand. • Potential impact of new self-storage supply on occupancy and rates. • Uncertainty related to macroeconomic factors affecting demand for self-storage. • Integration risks related to the acquisition of Argus Professional Storage Management, though initial integration is going well with no employee turnover so far.

Q: Todd Thomas with KeyBanc Capital Markets asked about acquisitions, target leverage range, and integration of Argus.

A: David Corak and H. Schwartz discussed target leverage range in 5-6x, prudent capital deployment, and integration of Argus with menu of options for owners.

Q: Jonathan Hughes with Raymond James asked about considerations for implied fourth quarter FFO and G&A seasonality.

A: David Corak discussed 4Q FFO, G&A seasonality, and various factors affecting next year's earnings.

Q: Nicholas Yulico with Scotiabank asked about 2026 macro expectation, move-in rents, and synergies from third-party managed platform.

A: David Corak and H. Schwartz discussed supply picture, demand, and margin expansion from economies of scale.

Q: Robin Haneland with BMO Capital Markets asked about Toronto market performance, capital deployment for SmartCentres JV, and recapture rate into managed REIT funds.

A: H. Schwartz and David Corak discussed Toronto market supply, demand, JV deployment, and recapture rate.

Q: Michael Mueller with JPMorgan asked about margin in markets with 10+ properties and trade-off of adding JV.

A: James Barry discussed margin in markets with 10+ properties, and David Corak discussed adding institutional acquisitions joint venture.

Q: Wesley Golladay with Baird asked about revenue management and fourth quarter same-store revenue.

A: H. Schwartz and David Corak discussed revenue management strategy and factors driving fourth quarter same-store revenue.

Q: Eric Luebchow with Wells Fargo asked about October performance, exit rate into 2026, and competitive backdrop.

A: David Corak and H. Schwartz discussed October occupancy, move-in rates, ECRIs, and competitive strategy regarding concessions and marketing spend.