{"success":true,"data":{"pressRelease":{"id":"155565","rtpr_id":"nBwRVdNza-20260929","ticker":"SMA","exchange":"NYSE","all_tickers":["SMA"],"title":"SmartStop Expands North American Platform Through ~$140 Million of Strategic Investments Amongst Other Initiatives, Driving Accretive Growth on a Leverage-Neutral Basis; Raises 2026 Same-Store and FFO, as Adjusted Guidance","author":"Business Wire","published_at":"2026-09-29T13:26:00.101Z","article_body":"SmartStop Expands North American Platform Through ~$140 Million of Strategic\nInvestments Amongst Other Initiatives, Driving Accretive Growth on a\nLeverage-Neutral Basis; Raises 2026 Same-Store and FFO, as Adjusted Guidance\n\n\n * Enters into agreement for investment in Strategic Storage Canada, LP, a joint\nventure fund (including a 50% GP interest) in 14 owned self-storage properties\nin Canada for approximately USD $54 million, positioning SmartStop as Canada's\nthird-largest storage operator\n\n * Acquiring two wholly owned properties for approximately $37 million (Las\nVegas, Nevada, and Asheville, North Carolina), expanding SmartStop's\nclustering in two existing core U.S. markets\n\n * Enters programmatic investment partnership with an institutional sponsor with\na robust pipeline of Class A self-storage preferred or mezzanine net\ninvestments\n\n * Transactions expected to be modestly accretive to 2026 estimated FFO, as\nadjusted, per share and accretive by approximately $0.05 to $0.06 per share to\n2027 estimated FFO, as adjusted;\n\n * Raises full-year 2026 same-store revenue and NOI guidance, and raises\nfull-year 2026 FFO, as adjusted, per share guidance\n\n * Initiates a strategic asset management program for the disposition of\nproperties in select noncore markets to redeploy capital into core markets\n\nSmartStop Self Storage REIT, Inc. (“SmartStop”) (NYSE: SMA), an internally\nmanaged real estate investment trust and a premier owner and operator of\nself-storage facilities in the United States and Canada, announced a series of\nstrategic investments totaling approximately $140 million across Canada and\nthe United States. These transactions align with four of the Deca\nInitiative’s growth pillars including 1) Disciplined Capital Allocation, 2)\nAcquisitions Joint Venture, 3) Third-Party Management further enhanced by\nbridge investment activity and 4) continued clustering across SmartStop's core\nmarkets. These announcements build on a strong second quarter of 2026, in\nwhich SmartStop delivered sector-leading FFO, as adjusted, per share growth of\n17.6% year-over-year.\n\n“Today’s announcement is a perfect reflection of The Deca Initiative,”\nsaid H. Michael Schwartz, Founder, Chairman, and Chief Executive Officer of\nSmartStop. “We are significantly expanding our footprint in Canada, adding\nhigh-quality assets on-balance sheet in core U.S. markets, and growing a new\nprogrammatic investment relationship with an exceptionally high-quality\nsponsor, all while funding this growth on a leverage-neutral basis. The\naddition of 25 Class A self-storage properties increases clustering and\noperating efficiencies in many of our core markets. We expect these\ntransactions and the associated financing to be materially accretive to our\n2027 FFO, as adjusted per share on an approximately leverage-neutral basis. We\nbelieve the Strategic Storage Canada portfolio will see meaningful embedded\nNOI upside as the properties lease up over the coming years, with an\nanticipated stabilized yield over 6%.”\n\n“Scale within a market is one of the most important drivers of margin in our\nbusiness,” continued Mr. Schwartz. “As we addressed in our IPO Road Show,\nwe believe our portfolio has tremendous upside driven by scale, one of the\nprimary drivers of entry into third-party management. Our strategic asset\nmanagement program will expedite this by divesting from markets where we lack\ndensity and reinvesting in markets where we already operate at scale. In doing\nso, we expect to strengthen our balance sheet while improving the overall\nquality and efficiency of our portfolio.”\n\nStrategic Storage Canada Joint Venture Investment\n\nSmartStop has agreed to invest approximately CAD $74 million (approximately\nUSD $54 million) into a Canadian joint venture fund. The investment provides\nSmartStop with a 50% General Partner ownership interest and an approximate 34%\nLimited Partner ownership interest in 14 self-storage properties in Canada,\ncomprising approximately 961,000 net rentable square feet and 9,600 units; the\nportfolio is in early lease-up and is approximately 50% physically occupied.\nThe investment is structured as approximately CAD $49 million of LP equity and\nCAD $25 million of convertible preferred equity bearing a 6.5% coupon,\nconvertible to LP equity in stages over the following 24 months at the Net\nAsset Value established at close, to provide an LP ownership of approximately\n44% at the end of year two. SmartStop also has the opportunity to make\nadditional investments of up to CAD $228 million (approximately USD $163\nmillion) over the next few years primarily in connection with additional\nself-storage properties being acquired by the fund.\n\nIn connection with the investment, SmartStop will provide property management\nservices on properties in the fund under five-year contracts, will receive a\nRight of First Offer on all fund properties, and has been awarded third-party\nmanagement contracts on three additional Canadian properties outside the fund,\nalong with exclusivity on future third-party management for future development\nprojects by the fund’s affiliates. The investment positions SmartStop as\nCanada's third-largest self-storage operator, with 70 operating properties,\nexpanding SmartStop's presence in the existing markets of Vancouver, British\nColumbia, Calgary, Alberta, and the Greater Toronto Area, and establishing a\nnew presence in the markets of Halifax, Nova Scotia and Quebec City, Quebec.\nStrategic Storage Canada also serves as a Canadian-domiciled vehicle, which\ncan be utilized for future contributions from Canadian self-storage owners in\na tax-efficient manner.\n\nSmartStop's investment reflects its continued conviction in the Canadian\nself-storage market. The same-store Canadian portfolio experienced occupancy\nincreases of approximately 75 basis points year-over-year as of August 31,\n2026, outperforming trends in SmartStop's U.S. portfolio over the same period.\n\nThe investment and related transactions pertaining to this closing are subject\nto approval under the Canadian Competition Act and certain other closing\nconditions customary in transactions of this nature. SmartStop anticipates\ncompleting the transaction in the fourth quarter of 2026. National Bank of\nCanada served as financial advisor and McMillan LLP served as legal advisor to\nSmartStop in connection with the Strategic Storage Canada joint venture\ninvestment.\n\nOn-Balance Sheet U.S. Acquisitions\n\nSmartStop expects to acquire two stabilized properties in Las Vegas, Nevada,\nand Asheville, North Carolina, for approximately $37 million, comprising more\nthan 186,000 net rentable square feet and approximately 1,600 units. These\nproperties add additional clustering within SmartStop's existing footprint in\ntwo of SmartStop's top U.S. markets, including being SmartStop’s 10th wholly\nowned asset in the Las Vegas MSA.\n\nProgrammatic Investment Partnership\n\nSmartStop and its joint venture partner AXCS Capital have established a new\nprogrammatic investment relationship with a vertically integrated Class A\nself-storage developer. In September, the SmartStop and AXCS joint venture\nclosed one preferred investment, reflecting a net investment of $13.2 million\nfrom SmartStop. The joint venture expects to close five additional preferred\nequity and/or mezzanine loan investments, reflecting a net investment from\nSmartStop of approximately $35 to $40 million by the end of the fourth quarter\nof 2026. The investments are expected to have average maturities of\napproximately five years with yields in the mid-teens. SmartStop is expected\nto receive a Right of First Offer on all six assets, in addition to entering\nproperty management agreements. The sponsor’s broader development platform,\nwhich spans nearly 50 properties and over 4.0 million net rentable square\nfeet, provides a robust pipeline of potential future investment opportunities\nbeyond the initial six transactions.\n\nFinancing Activities\n\nTo fund the investments described above while maintaining a leverage-neutral\ncapital structure, SmartStop utilized its at-the-market equity program to\nprice approximately 2.4 million shares sold on a forward basis at an average\nprice of $32.01 per share for gross proceeds of up to approximately $78\nmillion, depending on the forward settlement dates. SmartStop anticipates\nsettling the shares forward in the fourth quarter of 2026, consistent with the\ntiming of the above investment activity.\n\nThe Canadian portion of these investments is further supported by SmartStop's\npreviously announced CAD $200 million Maple Bond offering, which closed on\nAugust 18, 2026. This offering carries a fixed-interest rate of 4.317% and\nmatures in 2031.\n\nFinancial Impact\n\nSmartStop expects the investments described herein, together with the\nassociated equity financing, to be modestly accretive to full-year 2026\nestimated FFO, as adjusted, per share, and accretive by approximately $0.05 to\n$0.06 to full-year 2027 estimated FFO, as adjusted, per share.\n\nStrategic Asset Management Program\n\nSmartStop has initiated a strategic asset management program to pursue the\nopportunistic disposition of select wholly owned properties located in noncore\nmarkets, initially targeting $75 million to $125 million of property sales\nbeginning in early 2027. These noncore markets are generally markets in which\nSmartStop owns only a handful of properties and where management believes the\nCompany is unlikely to achieve the scale necessary to realize meaningful\noperating efficiencies or clustering benefits. SmartStop intends to use net\nproceeds from these dispositions to recycle capital into its core markets,\nwhere greater density allows SmartStop to leverage shared on-site staffing,\nmarketing spend, and revenue management across multiple properties.\n\nUpdate to Full-Year 2026 Guidance\n\nIn tandem with today's announcement, SmartStop is raising its full-year 2026\nguidance for FFO, as adjusted, per share by $0.01, primarily attributable to\nincreased same-store guidance. SmartStop is raising its full-year 2026\nsame-store guidance ranges as follows: same-store revenue growth to 0.75% to\n1.75% (from 0.50% to 1.50%); same-store operating expense growth to 0.00% to\n1.00% (from 0.25% to 1.25%); and same-store net operating income growth to\n1.15% to 2.15% (from 0.65% to 1.65%).\n   \n SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES \n \nOUTLOOK FOR FULL YEAR 2026 \n \n(Unaudited) \n \n(Dollar amounts in thousands, except share and per share data) \n   \n     Assumptions   Notes for Updated Annual Assumptions \n     as of August 5, 2026   as of September 29, 2026   as of September 29, 2026 \n Same-store growth   Low   High   Low   High   2026 Same-store pool: 155 Properties \n \n(as translated in U.S. dollars) \n Revenue   0.50%   1.50%   0.75%   1.75%     \n Operating expense   0.25%   1.25%   0.00%   1.00%     \n Net operating income ((3))   0.65%   1.65%   1.15%   2.15%   Reflects an average CAD/USD exchange rate for full year 2026 of approximately \n 0.72x. The average CAD/USD exchange rate for the 12 months ended December 31, \n 2025 was approximately 0.72x. \n                       \n Same-store growth   Low   High   Low   High   2026 Same-store pool: 155 Properties \n \n(constant currency) ((1)) \n Revenue   0.50%   1.50%   0.75%   1.75%     \n Operating expense   0.25%   1.25%   0.00%   1.00%     \n Net operating income ((3))   0.65%   1.65%   1.15%   2.15%   Reflects an average CAD/USD exchange rate for full year 2026 of approximately \n 0.72x. The average CAD/USD exchange rate for the 12 months ended December 31, \n 2025 was approximately 0.72x. \n                       \n FFO, as Adjusted ((2))   Low   High   Low   High     \n FFO, as adjusted per share & OP unit outstanding - diluted ((3))   $ 1.98   $ 2.04   $ 1.99   $ 2.05     \n Weighted average share count (Not in thousands)     59,400,000     59,400,000     59,400,000     59,400,000     \n                       \n     Low   High   Low   High     \n Non same-store net operating income   $ 19,900   $ 20,700   $ 20,000   $ 20,600   Includes properties in the non same-store pool as of June 30, 2026. Excludes \n Tenant Protection Program net margin. \n Tenant Protection Program net margin   $ 9,625   $ 9,925   $ 9,625   $ 9,925   Represents Tenant Protection Program revenues less Tenant Protection Program \n related expense for the same-store and non same-store pools. \n Managed REIT adjusted EBITDA ((4))   $ 13,650   $ 14,250   $ 13,600   $ 14,100   Represents Managed REIT Platform revenues less Managed REIT Platform expenses. \n Assumes average AUM of $1,040 million (low) to $1,090 million (high) for the \n year ending December 31, 2026. Excludes $0.3 million of equity based \n compensation expense related to IPO grants. (Not in thousands) \n Third-party management adjusted EBITDA ((4))   $ 1,750   $ 2,250   $ 1,850   $ 2,350   Represents third-party management revenues less third-party management \n expenses. Excludes an estimated $0.7 million of acquisition related expenses \n and transactional expenses. (Not in thousands) \n General and administrative expenses   $ 33,000   $ 34,000   $ 33,100   $ 34,100   Excludes an estimated $4.5 million of equity based compensation expense \n related to IPO grants and legacy stock compensation. (Not in thousands) \n Interest expense   $ 53,450   $ 54,950   $ 54,150   $ 55,650   Assumes average one-month SOFR of 3.8%. \n Investment income, net   $ 9,200   $ 10,000   $ 10,100   $ 10,700   Assumes average one-month SOFR of 3.8%. \n                       \n Capital Deployment   Low   High   Low   High     \n Acquisitions, loans, bridge loans & preferred investments   $ 55,000   $ 75,000   $ 190,000   $ 210,000   Includes wholly-owned acquisitions, the Company's investment in joint \n ventures, bridge loans to or investments in third parties and investments in \n the Managed REITs, net of any repayments of existing loans or investments. \n Solar spend   $ 2,250   $ 2,750   $ 2,250   $ 2,750     \n Development spend   $ 9,000   $ 10,000   $ 9,000   $ 10,000   Related to the Company's portion of properties under construction in the \n SmartCentres joint venture. \n Redevelopment and expansion spend   $ 13,000   $ 15,000   $ 13,000   $ 15,000     \n\n Note: The Company’s estimates are forward-looking and based on \n management’s view of current and future market conditions. The Company’s \n actual results may differ materially from these estimates. A reconciliation of \n net income outlook to same-store net operating income outlook is provided \n later in this release entitled “Reconciliation of Estimated GAAP Net Income \n to Estimated Same-Store Net Operating Income.” A reconciliation of net \n income per share outlook to funds from operations, as adjusted per share \n outlook is provided later in this release entitled “Reconciliation of the \n Range of Estimated GAAP Fully Diluted Net Income Per Share and OP Unit to \n Estimated Fully Diluted FFO, As Adjusted Per Share and OP Unit.” \n (1)   Stores in Canada are operated in Canadian dollars (CAD), and their financial \n results are translated to U.S. dollars (USD) in accordance with GAAP. These \n stores represent 13 of the Company’s 155 stores in the 2026 same-store pool. \n Constant currency results are calculated by translating current-year results \n at prior-year average exchange rates. The average CAD/USD exchange rate for \n the 12 months ending December 31, 2025, was 0.72x. \n (2)   FFO, as adjusted, estimates for the year are fully diluted for an estimated \n average number of shares and OP units outstanding during the year. \n (3)   A reconciliation of net income outlook to same-store net operating income \n outlook is provided below under the heading “Reconciliation of Estimated \n GAAP Net Income to Estimated Same-Store Net Operating Income.” The \n reconciliation includes details related to same-store revenue and same-store \n expense outlooks. A reconciliation of net income per share outlook to funds \n from operations, as adjusted per share and OP unit outstanding outlook is \n provided below under the heading “Reconciliation of the Range of Estimated \n GAAP Fully Diluted Net Income Per Share and OP Unit to Estimated Fully Diluted \n FFO, As Adjusted Per Share and OP Unit.” \n (4)   Consistent with applicable Securities and Exchange Commission (“SEC”) \n rules, SmartStop does not provide a reconciliation of estimated 2026 Managed \n REIT Adjusted EBITDA or third-party management adjusted EBITDA to estimated \n GAAP net income because SmartStop is unable to reasonably predict certain \n items that are included in these measures. \n\n\nReconciliation of the Range of Estimated GAAP Fully Diluted Net Income Per\nShare and OP Unit to Estimated Fully Diluted FFO, As Adjusted Per Share and OP\nUnit\n\nThe following table presents a reconciliation of the range of estimated GAAP\nnet income (loss) per share to estimated fully diluted FFO, as adjusted per\nshare, as provided in SmartStop’s Outlook for Full Year 2026:\n     Ranges for 2026 Annual Assumptions   \n     as of September 29, 2026   \n               \n     Low     High   \n Net income   $ 0.49     $ 0.52   \n Depreciation & amortization of real estate and intangible assets from     1.34       1.36   \n consolidated and unconsolidated entities \n Gain on disposition of real estate     (0.03 )     (0.03 ) \n FFO per share & OP unit outstanding - diluted   $ 1.80     $ 1.86   \n Acquisition related expenses and foreign currency (gains) losses, net from   $ 0.01     $ 0.01   \n unconsolidated entities \n Amortization of debt issuance costs     0.05       0.05   \n IPO & legacy performance grants     0.08       0.08   \n Other( (1))     0.04       0.04   \n FFO, as adjusted per share & OP unit outstanding - diluted   $ 1.99     $ 2.05   \n\n (1) Includes the following: Intangible amortization expense – contracts, \n accretion of fair market value of secured debt, foreign currency, contingent \n earnout adjustment, interest rate derivative (gains) losses, net, net loss on \n extinguishment of debt, noncash adjustments and adjustment of deferred tax \n liabilities. \n\n\nReconciliation of Estimated GAAP Net Income to Estimated Same-Store Net\nOperating Income\n\nThe following table presents a reconciliation of the range of estimated GAAP\nnet income (loss) to total same-store net operating income, as provided in\nSmartStop’s Outlook for Full Year 2026 (in thousands):\n     Ranges for 2026 Annual Assumptions   \n     as of September 29, 2026   \n               \n     Low     High   \n Net income   $ 28,920     $ 30,604   \n Adjusted to exclude:             \n Tenant Protection Program net margin( (1))     (9,625 )     (9,925 ) \n Managed Platform net margin ((2))     (14,450 )     (15,450 ) \n General and administrative expenses     37,600       38,600   \n Depreciation & amortization of real estate and intangible assets from     80,150       80,250   \n consolidated entities \n Interest expense     54,150       55,650   \n Equity in (earnings) losses of unconsolidated joint venture properties and     1,950       1,550   \n investments in Managed REITs \n Income tax expense     2,055       2,355   \n Investment income, net     (10,100 )     (10,700 ) \n Other, net ((3))     (4,520 )     (4,762 ) \n Non same-store revenue     (32,900 )     (33,700 ) \n Non same-store operating expense     12,900       13,100   \n Total same-store net operating income   $ 146,131     $ 147,573   \n\n (1) Includes Tenant Protection Program revenue, less expenses. \n (2) Includes Managed Platform revenues, less expenses. \n (3) Includes the following: contingent earnout adjustment, net loss on \n extinguishment of debt, gain on disposition of real estate, state tax \n expenses, foreign currency fluctuations, and changes in value related to \n SmartStop’s foreign currency. \n\n\nADDITIONAL INFORMATION REGARDING NOI, FFO, and FFO, as adjusted\n\nNOI\n\nNOI is a non-GAAP measure that SmartStop defines as net income (loss),\ncomputed in accordance with GAAP, generated from properties, excluding tenant\nprotection plan revenue, before corporate general and administrative expenses,\nasset management fees, interest expense, depreciation, amortization,\nacquisition expenses, tenant protection economics, stock compensation related\nto SmartStop’s IPO Grant and other non-property related income and expense.\nSmartStop believes that NOI is useful for investors as it provides a measure\nof the operating performance of its operating assets because NOI excludes\ncertain items that are not associated with the ongoing operation of the\nproperties. Additionally, SmartStop believes that NOI is a widely accepted\nmeasure of comparative operating performance in the real estate community.\nHowever, SmartStop’s use of the term NOI may not be comparable to that of\nother real estate companies as they may have different methodologies for\ncomputing this amount. In addition, NOI is not a substitute for net income\n(loss), cash flows from operations, or other related financial measures, in\nevaluating SmartStop’s operating performance.\n\nFunds from Operations (“FFO”) and FFO, as Adjusted\n\nFFO\n\nFFO is a non-GAAP financial metric promulgated by NAREIT that SmartStop\nbelieves is an appropriate supplemental measure to reflect operating\nperformance. SmartStop defines FFO consistent with the standards established\nby the white paper on FFO approved by the board of governors of NAREIT, or the\nWhite Paper. The White Paper defines FFO as net income (loss) computed in\naccordance with GAAP, excluding gains or losses from sales of property and\nreal estate related asset impairment write downs, plus depreciation and\namortization and after adjustments for unconsolidated partnerships and joint\nventures. Additionally, gains and losses from change in control are excluded\nfrom the determination of FFO. Adjustments for unconsolidated partnerships and\njoint ventures are calculated to reflect FFO on the same basis. SmartStop’s\nFFO calculation complies with NAREIT’s policy described above.\n\nFFO, as Adjusted\n\nSmartStop uses FFO, as adjusted, as an additional non-GAAP financial measure\nto evaluate their operating performance. FFO, as adjusted, provides investors\nwith supplemental performance information that is consistent with the\nperformance models and analysis used by management. In addition, FFO, as\nadjusted, is a measure used among SmartStop’s peer group, which includes\npublicly traded REITs. Further, SmartStop believes FFO, as adjusted, is useful\nin comparing the sustainability of their operating performance with the\nsustainability of the operating performance of other real estate companies.\n\nIn determining FFO, as adjusted, SmartStop makes further adjustments to the\nNAREIT computation of FFO to exclude the effects of non-real estate related\nasset impairments and intangible amortization, acquisition related costs,\nother write-offs incurred in connection with acquisitions, contingent earnout\nexpenses, accretion of fair value of debt adjustments, amortization of debt\nissuance costs, gains or losses from extinguishment of debt, adjustments of\ndeferred tax assets and liabilities, realized and unrealized gains/losses on\nforeign exchange transactions, gains/losses on certain foreign exchange and\ninterest rate derivatives not designated for hedge accounting, provision for\n(recovery of) non-cash reserve adjustments, and other select non-recurring\nincome or expense items which SmartStop believes are not indicative of their\noverall long-term operating performance. SmartStop excludes these items from\nGAAP net income (loss) to arrive at FFO, as adjusted, as they are not the\nprimary drivers in their decision-making process and excluding these items\nprovides investors a view of their continuing operating portfolio performance\nover time, which in any respective period may experience fluctuations in such\nacquisition, merger or other similar activities that are not of a long-term\noperating performance nature. FFO, as adjusted, also reflects adjustments for\nunconsolidated partnerships and jointly owned investments. SmartStop uses FFO,\nas adjusted, as one measure of their operating performance when they formulate\ncorporate goals and evaluate the effectiveness of their strategies.\n\nPresentation of FFO and FFO, as adjusted, is intended to provide useful\ninformation to investors as they compare the operating performance of\ndifferent REITs. However, not all REITs calculate FFO and FFO, as adjusted,\nthe same way, so comparisons with other REITs may not be meaningful.\nFurthermore, FFO and FFO, as adjusted, are not necessarily indicative of cash\nflow available to fund cash needs and should not be considered as an\nalternative to net income (loss) as an indication of SmartStop’s\nperformance, as an alternative to cash flows from operations as an indication\nof SmartStop’s liquidity or indicative of funds available to fund their cash\nneeds including their ability to make distributions to their stockholders. FFO\nand FFO, as adjusted, should be reviewed in conjunction with other\nmeasurements as an indication of SmartStop’s performance.\n\nNeither the SEC, NAREIT, nor any other regulatory body has passed judgment on\nthe acceptability of the adjustments to FFO that SmartStop uses to calculate\nFFO, as adjusted. In the future, the SEC, NAREIT or another regulatory body\nmay decide to standardize the allowable adjustments across the REIT industry\nand SmartStop may have to adjust its calculation and characterization of FFO,\nas adjusted.\n\nThis press release, a financial supplement, and additional information about\nSmartStop are available on SmartStop’s website,\ninvestors.smartstopselfstorage.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fsmartstop2021ir.q4web.com%2Foverview%2Fdefault.aspx&esheet=54612674&newsitemid=20260928055272&lan=en-US&anchor=investors.smartstopselfstorage.com&index=1&md5=b50431ae261484457498bd7b234ce724)\n.\n\nAbout SmartStop Self Storage REIT, Inc. (SmartStop):\n\nSmartStop (NYSE: SMA) is a self-managed REIT with a fully integrated\noperations team of more than 1,000 self-storage professionals focused on\ngrowing the SmartStop® Self Storage brand. SmartStop, through its indirect\nsubsidiary SmartStop REIT Advisors, LLC, also sponsors other self-storage\nprograms, and through its Managed Platform offers third-party management\nservices in the U.S. and Canada. As of September 29, 2026, SmartStop has an\nowned or managed portfolio of approximately 475 operating properties in 36\nU.S. states, the District of Columbia, and Canada, comprising more than\n285,000 units and approximately 36.8 million rentable square feet. Additional\ninformation regarding SmartStop is available at www.smartstopselfstorage.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.smartstopselfstorage.com&esheet=54612674&newsitemid=20260928055272&lan=en-US&anchor=www.smartstopselfstorage.com&index=2&md5=e04f13c1269e4911438dd3cf100a7e87)\n.\n\nForward-Looking Statements\n\nCertain statements contained in this press release, other than historical\nfacts, may be considered forward-looking statements within the meaning of the\nfederal securities laws, including statements regarding the expected timing,\nbenefits, and financial impact of the transactions described herein, including\nanticipated accretion to FFO, as adjusted, per share, expected NOI\nstabilization, the anticipated settlement of the forward equity sales, the\nstrategic asset management program, and any updates to SmartStop’s 2026\nguidance. Such statements are subject to known and unknown risks and\nuncertainties, including but not limited to SmartStop’s ability to\nsuccessfully complete, fund, and integrate the transactions described herein\nwithin the time frame expected or at all; the settlement of SmartStop’s\nforward equity sales and the amount of proceeds received; the performance of\nthe borrowers and underlying properties in SmartStop’s preferred and\nmezzanine investments; the lease-up and stabilization of the Strategic Storage\nCanada properties and risks associated with joint venture investments;\nSmartStop’s ability to complete dispositions under its strategic asset\nmanagement program on favorable terms, within expected time frames or at all,\nand to redeploy the proceeds into core markets on accretive terms; changes in\neconomic and market conditions, including self storage demand, occupancy,\nrental rates, and competition, and changes in the CAD/USD exchange rate;\nSmartStop’s ability to achieve the intended outcomes of The Deca Initiative;\nfluctuations in interest rates and capitalization rates; and other risks\ndescribed in SmartStop’s filings with the Securities and Exchange\nCommission, including its Annual Report on Form 10-K for the year ended\nDecember 31, 2025, and subsequent Quarterly Reports on Form 10-Q. Readers are\ncautioned not to place undue reliance on these forward-looking statements,\nwhich speak only as of the date of this press release. SmartStop undertakes no\nobligation to publicly update or revise any forward-looking statements,\nwhether as a result of new information, future events, or otherwise.\n\nThis press release includes certain non-GAAP financial measures, including\nFFO, as adjusted, per share, and Same-Store NOI. These measures should not be\nconsidered alternatives to net income as a performance measure or to cash\nflows from operations as a liquidity measure, and should be considered in\naddition to, and not in lieu of, financial measures prepared in accordance\nwith GAAP. Reconciliations of these non-GAAP measures to their most directly\ncomparable GAAP measures are available in SmartStop’s most recent quarterly\nfinancial supplement, available at investors.smartstopselfstorage.com.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260928055272/en/\n(https://www.businesswire.com/news/home/20260928055272/en/)\n\nDavid Corak \n\nSenior VP of Corporate Finance and Strategy\n\nSmartStop Self Storage REIT, Inc.\n\nIR@smartstop.com (mailto:IR@smartstop.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBwRVdNza-20260929","title":"SmartStop Expands North American Platform Through ~$140 Million of Strategic Investments Amongst Other Initiatives, Driving Accretive Growth on a Leverage-Neutral Basis; Raises 2026 Same-Store and FFO, as Adjusted Guidance","author":"Business Wire","ticker":"SMA","created":"2026-09-29T13:26:00.101Z","tickers":["SMA"],"exchange":"NYSE","article_body":"SmartStop Expands North American Platform Through ~$140 Million of Strategic\nInvestments Amongst Other Initiatives, Driving Accretive Growth on a\nLeverage-Neutral Basis; Raises 2026 Same-Store and FFO, as Adjusted Guidance\n\n\n * Enters into agreement for investment in Strategic Storage Canada, LP, a joint\nventure fund (including a 50% GP interest) in 14 owned self-storage properties\nin Canada for approximately USD $54 million, positioning SmartStop as Canada's\nthird-largest storage operator\n\n * Acquiring two wholly owned properties for approximately $37 million (Las\nVegas, Nevada, and Asheville, North Carolina), expanding SmartStop's\nclustering in two existing core U.S. markets\n\n * Enters programmatic investment partnership with an institutional sponsor with\na robust pipeline of Class A self-storage preferred or mezzanine net\ninvestments\n\n * Transactions expected to be modestly accretive to 2026 estimated FFO, as\nadjusted, per share and accretive by approximately $0.05 to $0.06 per share to\n2027 estimated FFO, as adjusted;\n\n * Raises full-year 2026 same-store revenue and NOI guidance, and raises\nfull-year 2026 FFO, as adjusted, per share guidance\n\n * Initiates a strategic asset management program for the disposition of\nproperties in select noncore markets to redeploy capital into core markets\n\nSmartStop Self Storage REIT, Inc. (“SmartStop”) (NYSE: SMA), an internally\nmanaged real estate investment trust and a premier owner and operator of\nself-storage facilities in the United States and Canada, announced a series of\nstrategic investments totaling approximately $140 million across Canada and\nthe United States. These transactions align with four of the Deca\nInitiative’s growth pillars including 1) Disciplined Capital Allocation, 2)\nAcquisitions Joint Venture, 3) Third-Party Management further enhanced by\nbridge investment activity and 4) continued clustering across SmartStop's core\nmarkets. These announcements build on a strong second quarter of 2026, in\nwhich SmartStop delivered sector-leading FFO, as adjusted, per share growth of\n17.6% year-over-year.\n\n“Today’s announcement is a perfect reflection of The Deca Initiative,”\nsaid H. Michael Schwartz, Founder, Chairman, and Chief Executive Officer of\nSmartStop. “We are significantly expanding our footprint in Canada, adding\nhigh-quality assets on-balance sheet in core U.S. markets, and growing a new\nprogrammatic investment relationship with an exceptionally high-quality\nsponsor, all while funding this growth on a leverage-neutral basis. The\naddition of 25 Class A self-storage properties increases clustering and\noperating efficiencies in many of our core markets. We expect these\ntransactions and the associated financing to be materially accretive to our\n2027 FFO, as adjusted per share on an approximately leverage-neutral basis. We\nbelieve the Strategic Storage Canada portfolio will see meaningful embedded\nNOI upside as the properties lease up over the coming years, with an\nanticipated stabilized yield over 6%.”\n\n“Scale within a market is one of the most important drivers of margin in our\nbusiness,” continued Mr. Schwartz. “As we addressed in our IPO Road Show,\nwe believe our portfolio has tremendous upside driven by scale, one of the\nprimary drivers of entry into third-party management. Our strategic asset\nmanagement program will expedite this by divesting from markets where we lack\ndensity and reinvesting in markets where we already operate at scale. In doing\nso, we expect to strengthen our balance sheet while improving the overall\nquality and efficiency of our portfolio.”\n\nStrategic Storage Canada Joint Venture Investment\n\nSmartStop has agreed to invest approximately CAD $74 million (approximately\nUSD $54 million) into a Canadian joint venture fund. The investment provides\nSmartStop with a 50% General Partner ownership interest and an approximate 34%\nLimited Partner ownership interest in 14 self-storage properties in Canada,\ncomprising approximately 961,000 net rentable square feet and 9,600 units; the\nportfolio is in early lease-up and is approximately 50% physically occupied.\nThe investment is structured as approximately CAD $49 million of LP equity and\nCAD $25 million of convertible preferred equity bearing a 6.5% coupon,\nconvertible to LP equity in stages over the following 24 months at the Net\nAsset Value established at close, to provide an LP ownership of approximately\n44% at the end of year two. SmartStop also has the opportunity to make\nadditional investments of up to CAD $228 million (approximately USD $163\nmillion) over the next few years primarily in connection with additional\nself-storage properties being acquired by the fund.\n\nIn connection with the investment, SmartStop will provide property management\nservices on properties in the fund under five-year contracts, will receive a\nRight of First Offer on all fund properties, and has been awarded third-party\nmanagement contracts on three additional Canadian properties outside the fund,\nalong with exclusivity on future third-party management for future development\nprojects by the fund’s affiliates. The investment positions SmartStop as\nCanada's third-largest self-storage operator, with 70 operating properties,\nexpanding SmartStop's presence in the existing markets of Vancouver, British\nColumbia, Calgary, Alberta, and the Greater Toronto Area, and establishing a\nnew presence in the markets of Halifax, Nova Scotia and Quebec City, Quebec.\nStrategic Storage Canada also serves as a Canadian-domiciled vehicle, which\ncan be utilized for future contributions from Canadian self-storage owners in\na tax-efficient manner.\n\nSmartStop's investment reflects its continued conviction in the Canadian\nself-storage market. The same-store Canadian portfolio experienced occupancy\nincreases of approximately 75 basis points year-over-year as of August 31,\n2026, outperforming trends in SmartStop's U.S. portfolio over the same period.\n\nThe investment and related transactions pertaining to this closing are subject\nto approval under the Canadian Competition Act and certain other closing\nconditions customary in transactions of this nature. SmartStop anticipates\ncompleting the transaction in the fourth quarter of 2026. National Bank of\nCanada served as financial advisor and McMillan LLP served as legal advisor to\nSmartStop in connection with the Strategic Storage Canada joint venture\ninvestment.\n\nOn-Balance Sheet U.S. Acquisitions\n\nSmartStop expects to acquire two stabilized properties in Las Vegas, Nevada,\nand Asheville, North Carolina, for approximately $37 million, comprising more\nthan 186,000 net rentable square feet and approximately 1,600 units. These\nproperties add additional clustering within SmartStop's existing footprint in\ntwo of SmartStop's top U.S. markets, including being SmartStop’s 10th wholly\nowned asset in the Las Vegas MSA.\n\nProgrammatic Investment Partnership\n\nSmartStop and its joint venture partner AXCS Capital have established a new\nprogrammatic investment relationship with a vertically integrated Class A\nself-storage developer. In September, the SmartStop and AXCS joint venture\nclosed one preferred investment, reflecting a net investment of $13.2 million\nfrom SmartStop. The joint venture expects to close five additional preferred\nequity and/or mezzanine loan investments, reflecting a net investment from\nSmartStop of approximately $35 to $40 million by the end of the fourth quarter\nof 2026. The investments are expected to have average maturities of\napproximately five years with yields in the mid-teens. SmartStop is expected\nto receive a Right of First Offer on all six assets, in addition to entering\nproperty management agreements. The sponsor’s broader development platform,\nwhich spans nearly 50 properties and over 4.0 million net rentable square\nfeet, provides a robust pipeline of potential future investment opportunities\nbeyond the initial six transactions.\n\nFinancing Activities\n\nTo fund the investments described above while maintaining a leverage-neutral\ncapital structure, SmartStop utilized its at-the-market equity program to\nprice approximately 2.4 million shares sold on a forward basis at an average\nprice of $32.01 per share for gross proceeds of up to approximately $78\nmillion, depending on the forward settlement dates. SmartStop anticipates\nsettling the shares forward in the fourth quarter of 2026, consistent with the\ntiming of the above investment activity.\n\nThe Canadian portion of these investments is further supported by SmartStop's\npreviously announced CAD $200 million Maple Bond offering, which closed on\nAugust 18, 2026. This offering carries a fixed-interest rate of 4.317% and\nmatures in 2031.\n\nFinancial Impact\n\nSmartStop expects the investments described herein, together with the\nassociated equity financing, to be modestly accretive to full-year 2026\nestimated FFO, as adjusted, per share, and accretive by approximately $0.05 to\n$0.06 to full-year 2027 estimated FFO, as adjusted, per share.\n\nStrategic Asset Management Program\n\nSmartStop has initiated a strategic asset management program to pursue the\nopportunistic disposition of select wholly owned properties located in noncore\nmarkets, initially targeting $75 million to $125 million of property sales\nbeginning in early 2027. These noncore markets are generally markets in which\nSmartStop owns only a handful of properties and where management believes the\nCompany is unlikely to achieve the scale necessary to realize meaningful\noperating efficiencies or clustering benefits. SmartStop intends to use net\nproceeds from these dispositions to recycle capital into its core markets,\nwhere greater density allows SmartStop to leverage shared on-site staffing,\nmarketing spend, and revenue management across multiple properties.\n\nUpdate to Full-Year 2026 Guidance\n\nIn tandem with today's announcement, SmartStop is raising its full-year 2026\nguidance for FFO, as adjusted, per share by $0.01, primarily attributable to\nincreased same-store guidance. SmartStop is raising its full-year 2026\nsame-store guidance ranges as follows: same-store revenue growth to 0.75% to\n1.75% (from 0.50% to 1.50%); same-store operating expense growth to 0.00% to\n1.00% (from 0.25% to 1.25%); and same-store net operating income growth to\n1.15% to 2.15% (from 0.65% to 1.65%).\n   \n SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES \n \nOUTLOOK FOR FULL YEAR 2026 \n \n(Unaudited) \n \n(Dollar amounts in thousands, except share and per share data) \n   \n     Assumptions   Notes for Updated Annual Assumptions \n     as of August 5, 2026   as of September 29, 2026   as of September 29, 2026 \n Same-store growth   Low   High   Low   High   2026 Same-store pool: 155 Properties \n \n(as translated in U.S. dollars) \n Revenue   0.50%   1.50%   0.75%   1.75%     \n Operating expense   0.25%   1.25%   0.00%   1.00%     \n Net operating income ((3))   0.65%   1.65%   1.15%   2.15%   Reflects an average CAD/USD exchange rate for full year 2026 of approximately \n 0.72x. The average CAD/USD exchange rate for the 12 months ended December 31, \n 2025 was approximately 0.72x. \n                       \n Same-store growth   Low   High   Low   High   2026 Same-store pool: 155 Properties \n \n(constant currency) ((1)) \n Revenue   0.50%   1.50%   0.75%   1.75%     \n Operating expense   0.25%   1.25%   0.00%   1.00%     \n Net operating income ((3))   0.65%   1.65%   1.15%   2.15%   Reflects an average CAD/USD exchange rate for full year 2026 of approximately \n 0.72x. The average CAD/USD exchange rate for the 12 months ended December 31, \n 2025 was approximately 0.72x. \n                       \n FFO, as Adjusted ((2))   Low   High   Low   High     \n FFO, as adjusted per share & OP unit outstanding - diluted ((3))   $ 1.98   $ 2.04   $ 1.99   $ 2.05     \n Weighted average share count (Not in thousands)     59,400,000     59,400,000     59,400,000     59,400,000     \n                       \n     Low   High   Low   High     \n Non same-store net operating income   $ 19,900   $ 20,700   $ 20,000   $ 20,600   Includes properties in the non same-store pool as of June 30, 2026. Excludes \n Tenant Protection Program net margin. \n Tenant Protection Program net margin   $ 9,625   $ 9,925   $ 9,625   $ 9,925   Represents Tenant Protection Program revenues less Tenant Protection Program \n related expense for the same-store and non same-store pools. \n Managed REIT adjusted EBITDA ((4))   $ 13,650   $ 14,250   $ 13,600   $ 14,100   Represents Managed REIT Platform revenues less Managed REIT Platform expenses. \n Assumes average AUM of $1,040 million (low) to $1,090 million (high) for the \n year ending December 31, 2026. Excludes $0.3 million of equity based \n compensation expense related to IPO grants. (Not in thousands) \n Third-party management adjusted EBITDA ((4))   $ 1,750   $ 2,250   $ 1,850   $ 2,350   Represents third-party management revenues less third-party management \n expenses. Excludes an estimated $0.7 million of acquisition related expenses \n and transactional expenses. (Not in thousands) \n General and administrative expenses   $ 33,000   $ 34,000   $ 33,100   $ 34,100   Excludes an estimated $4.5 million of equity based compensation expense \n related to IPO grants and legacy stock compensation. (Not in thousands) \n Interest expense   $ 53,450   $ 54,950   $ 54,150   $ 55,650   Assumes average one-month SOFR of 3.8%. \n Investment income, net   $ 9,200   $ 10,000   $ 10,100   $ 10,700   Assumes average one-month SOFR of 3.8%. \n                       \n Capital Deployment   Low   High   Low   High     \n Acquisitions, loans, bridge loans & preferred investments   $ 55,000   $ 75,000   $ 190,000   $ 210,000   Includes wholly-owned acquisitions, the Company's investment in joint \n ventures, bridge loans to or investments in third parties and investments in \n the Managed REITs, net of any repayments of existing loans or investments. \n Solar spend   $ 2,250   $ 2,750   $ 2,250   $ 2,750     \n Development spend   $ 9,000   $ 10,000   $ 9,000   $ 10,000   Related to the Company's portion of properties under construction in the \n SmartCentres joint venture. \n Redevelopment and expansion spend   $ 13,000   $ 15,000   $ 13,000   $ 15,000     \n\n Note: The Company’s estimates are forward-looking and based on \n management’s view of current and future market conditions. The Company’s \n actual results may differ materially from these estimates. A reconciliation of \n net income outlook to same-store net operating income outlook is provided \n later in this release entitled “Reconciliation of Estimated GAAP Net Income \n to Estimated Same-Store Net Operating Income.” A reconciliation of net \n income per share outlook to funds from operations, as adjusted per share \n outlook is provided later in this release entitled “Reconciliation of the \n Range of Estimated GAAP Fully Diluted Net Income Per Share and OP Unit to \n Estimated Fully Diluted FFO, As Adjusted Per Share and OP Unit.” \n (1)   Stores in Canada are operated in Canadian dollars (CAD), and their financial \n results are translated to U.S. dollars (USD) in accordance with GAAP. These \n stores represent 13 of the Company’s 155 stores in the 2026 same-store pool. \n Constant currency results are calculated by translating current-year results \n at prior-year average exchange rates. The average CAD/USD exchange rate for \n the 12 months ending December 31, 2025, was 0.72x. \n (2)   FFO, as adjusted, estimates for the year are fully diluted for an estimated \n average number of shares and OP units outstanding during the year. \n (3)   A reconciliation of net income outlook to same-store net operating income \n outlook is provided below under the heading “Reconciliation of Estimated \n GAAP Net Income to Estimated Same-Store Net Operating Income.” The \n reconciliation includes details related to same-store revenue and same-store \n expense outlooks. A reconciliation of net income per share outlook to funds \n from operations, as adjusted per share and OP unit outstanding outlook is \n provided below under the heading “Reconciliation of the Range of Estimated \n GAAP Fully Diluted Net Income Per Share and OP Unit to Estimated Fully Diluted \n FFO, As Adjusted Per Share and OP Unit.” \n (4)   Consistent with applicable Securities and Exchange Commission (“SEC”) \n rules, SmartStop does not provide a reconciliation of estimated 2026 Managed \n REIT Adjusted EBITDA or third-party management adjusted EBITDA to estimated \n GAAP net income because SmartStop is unable to reasonably predict certain \n items that are included in these measures. \n\n\nReconciliation of the Range of Estimated GAAP Fully Diluted Net Income Per\nShare and OP Unit to Estimated Fully Diluted FFO, As Adjusted Per Share and OP\nUnit\n\nThe following table presents a reconciliation of the range of estimated GAAP\nnet income (loss) per share to estimated fully diluted FFO, as adjusted per\nshare, as provided in SmartStop’s Outlook for Full Year 2026:\n     Ranges for 2026 Annual Assumptions   \n     as of September 29, 2026   \n               \n     Low     High   \n Net income   $ 0.49     $ 0.52   \n Depreciation & amortization of real estate and intangible assets from     1.34       1.36   \n consolidated and unconsolidated entities \n Gain on disposition of real estate     (0.03 )     (0.03 ) \n FFO per share & OP unit outstanding - diluted   $ 1.80     $ 1.86   \n Acquisition related expenses and foreign currency (gains) losses, net from   $ 0.01     $ 0.01   \n unconsolidated entities \n Amortization of debt issuance costs     0.05       0.05   \n IPO & legacy performance grants     0.08       0.08   \n Other( (1))     0.04       0.04   \n FFO, as adjusted per share & OP unit outstanding - diluted   $ 1.99     $ 2.05   \n\n (1) Includes the following: Intangible amortization expense – contracts, \n accretion of fair market value of secured debt, foreign currency, contingent \n earnout adjustment, interest rate derivative (gains) losses, net, net loss on \n extinguishment of debt, noncash adjustments and adjustment of deferred tax \n liabilities. \n\n\nReconciliation of Estimated GAAP Net Income to Estimated Same-Store Net\nOperating Income\n\nThe following table presents a reconciliation of the range of estimated GAAP\nnet income (loss) to total same-store net operating income, as provided in\nSmartStop’s Outlook for Full Year 2026 (in thousands):\n     Ranges for 2026 Annual Assumptions   \n     as of September 29, 2026   \n               \n     Low     High   \n Net income   $ 28,920     $ 30,604   \n Adjusted to exclude:             \n Tenant Protection Program net margin( (1))     (9,625 )     (9,925 ) \n Managed Platform net margin ((2))     (14,450 )     (15,450 ) \n General and administrative expenses     37,600       38,600   \n Depreciation & amortization of real estate and intangible assets from     80,150       80,250   \n consolidated entities \n Interest expense     54,150       55,650   \n Equity in (earnings) losses of unconsolidated joint venture properties and     1,950       1,550   \n investments in Managed REITs \n Income tax expense     2,055       2,355   \n Investment income, net     (10,100 )     (10,700 ) \n Other, net ((3))     (4,520 )     (4,762 ) \n Non same-store revenue     (32,900 )     (33,700 ) \n Non same-store operating expense     12,900       13,100   \n Total same-store net operating income   $ 146,131     $ 147,573   \n\n (1) Includes Tenant Protection Program revenue, less expenses. \n (2) Includes Managed Platform revenues, less expenses. \n (3) Includes the following: contingent earnout adjustment, net loss on \n extinguishment of debt, gain on disposition of real estate, state tax \n expenses, foreign currency fluctuations, and changes in value related to \n SmartStop’s foreign currency. \n\n\nADDITIONAL INFORMATION REGARDING NOI, FFO, and FFO, as adjusted\n\nNOI\n\nNOI is a non-GAAP measure that SmartStop defines as net income (loss),\ncomputed in accordance with GAAP, generated from properties, excluding tenant\nprotection plan revenue, before corporate general and administrative expenses,\nasset management fees, interest expense, depreciation, amortization,\nacquisition expenses, tenant protection economics, stock compensation related\nto SmartStop’s IPO Grant and other non-property related income and expense.\nSmartStop believes that NOI is useful for investors as it provides a measure\nof the operating performance of its operating assets because NOI excludes\ncertain items that are not associated with the ongoing operation of the\nproperties. Additionally, SmartStop believes that NOI is a widely accepted\nmeasure of comparative operating performance in the real estate community.\nHowever, SmartStop’s use of the term NOI may not be comparable to that of\nother real estate companies as they may have different methodologies for\ncomputing this amount. In addition, NOI is not a substitute for net income\n(loss), cash flows from operations, or other related financial measures, in\nevaluating SmartStop’s operating performance.\n\nFunds from Operations (“FFO”) and FFO, as Adjusted\n\nFFO\n\nFFO is a non-GAAP financial metric promulgated by NAREIT that SmartStop\nbelieves is an appropriate supplemental measure to reflect operating\nperformance. SmartStop defines FFO consistent with the standards established\nby the white paper on FFO approved by the board of governors of NAREIT, or the\nWhite Paper. The White Paper defines FFO as net income (loss) computed in\naccordance with GAAP, excluding gains or losses from sales of property and\nreal estate related asset impairment write downs, plus depreciation and\namortization and after adjustments for unconsolidated partnerships and joint\nventures. Additionally, gains and losses from change in control are excluded\nfrom the determination of FFO. Adjustments for unconsolidated partnerships and\njoint ventures are calculated to reflect FFO on the same basis. SmartStop’s\nFFO calculation complies with NAREIT’s policy described above.\n\nFFO, as Adjusted\n\nSmartStop uses FFO, as adjusted, as an additional non-GAAP financial measure\nto evaluate their operating performance. FFO, as adjusted, provides investors\nwith supplemental performance information that is consistent with the\nperformance models and analysis used by management. In addition, FFO, as\nadjusted, is a measure used among SmartStop’s peer group, which includes\npublicly traded REITs. Further, SmartStop believes FFO, as adjusted, is useful\nin comparing the sustainability of their operating performance with the\nsustainability of the operating performance of other real estate companies.\n\nIn determining FFO, as adjusted, SmartStop makes further adjustments to the\nNAREIT computation of FFO to exclude the effects of non-real estate related\nasset impairments and intangible amortization, acquisition related costs,\nother write-offs incurred in connection with acquisitions, contingent earnout\nexpenses, accretion of fair value of debt adjustments, amortization of debt\nissuance costs, gains or losses from extinguishment of debt, adjustments of\ndeferred tax assets and liabilities, realized and unrealized gains/losses on\nforeign exchange transactions, gains/losses on certain foreign exchange and\ninterest rate derivatives not designated for hedge accounting, provision for\n(recovery of) non-cash reserve adjustments, and other select non-recurring\nincome or expense items which SmartStop believes are not indicative of their\noverall long-term operating performance. SmartStop excludes these items from\nGAAP net income (loss) to arrive at FFO, as adjusted, as they are not the\nprimary drivers in their decision-making process and excluding these items\nprovides investors a view of their continuing operating portfolio performance\nover time, which in any respective period may experience fluctuations in such\nacquisition, merger or other similar activities that are not of a long-term\noperating performance nature. FFO, as adjusted, also reflects adjustments for\nunconsolidated partnerships and jointly owned investments. SmartStop uses FFO,\nas adjusted, as one measure of their operating performance when they formulate\ncorporate goals and evaluate the effectiveness of their strategies.\n\nPresentation of FFO and FFO, as adjusted, is intended to provide useful\ninformation to investors as they compare the operating performance of\ndifferent REITs. However, not all REITs calculate FFO and FFO, as adjusted,\nthe same way, so comparisons with other REITs may not be meaningful.\nFurthermore, FFO and FFO, as adjusted, are not necessarily indicative of cash\nflow available to fund cash needs and should not be considered as an\nalternative to net income (loss) as an indication of SmartStop’s\nperformance, as an alternative to cash flows from operations as an indication\nof SmartStop’s liquidity or indicative of funds available to fund their cash\nneeds including their ability to make distributions to their stockholders. FFO\nand FFO, as adjusted, should be reviewed in conjunction with other\nmeasurements as an indication of SmartStop’s performance.\n\nNeither the SEC, NAREIT, nor any other regulatory body has passed judgment on\nthe acceptability of the adjustments to FFO that SmartStop uses to calculate\nFFO, as adjusted. In the future, the SEC, NAREIT or another regulatory body\nmay decide to standardize the allowable adjustments across the REIT industry\nand SmartStop may have to adjust its calculation and characterization of FFO,\nas adjusted.\n\nThis press release, a financial supplement, and additional information about\nSmartStop are available on SmartStop’s website,\ninvestors.smartstopselfstorage.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fsmartstop2021ir.q4web.com%2Foverview%2Fdefault.aspx&esheet=54612674&newsitemid=20260928055272&lan=en-US&anchor=investors.smartstopselfstorage.com&index=1&md5=b50431ae261484457498bd7b234ce724)\n.\n\nAbout SmartStop Self Storage REIT, Inc. (SmartStop):\n\nSmartStop (NYSE: SMA) is a self-managed REIT with a fully integrated\noperations team of more than 1,000 self-storage professionals focused on\ngrowing the SmartStop® Self Storage brand. SmartStop, through its indirect\nsubsidiary SmartStop REIT Advisors, LLC, also sponsors other self-storage\nprograms, and through its Managed Platform offers third-party management\nservices in the U.S. and Canada. As of September 29, 2026, SmartStop has an\nowned or managed portfolio of approximately 475 operating properties in 36\nU.S. states, the District of Columbia, and Canada, comprising more than\n285,000 units and approximately 36.8 million rentable square feet. Additional\ninformation regarding SmartStop is available at www.smartstopselfstorage.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.smartstopselfstorage.com&esheet=54612674&newsitemid=20260928055272&lan=en-US&anchor=www.smartstopselfstorage.com&index=2&md5=e04f13c1269e4911438dd3cf100a7e87)\n.\n\nForward-Looking Statements\n\nCertain statements contained in this press release, other than historical\nfacts, may be considered forward-looking statements within the meaning of the\nfederal securities laws, including statements regarding the expected timing,\nbenefits, and financial impact of the transactions described herein, including\nanticipated accretion to FFO, as adjusted, per share, expected NOI\nstabilization, the anticipated settlement of the forward equity sales, the\nstrategic asset management program, and any updates to SmartStop’s 2026\nguidance. Such statements are subject to known and unknown risks and\nuncertainties, including but not limited to SmartStop’s ability to\nsuccessfully complete, fund, and integrate the transactions described herein\nwithin the time frame expected or at all; the settlement of SmartStop’s\nforward equity sales and the amount of proceeds received; the performance of\nthe borrowers and underlying properties in SmartStop’s preferred and\nmezzanine investments; the lease-up and stabilization of the Strategic Storage\nCanada properties and risks associated with joint venture investments;\nSmartStop’s ability to complete dispositions under its strategic asset\nmanagement program on favorable terms, within expected time frames or at all,\nand to redeploy the proceeds into core markets on accretive terms; changes in\neconomic and market conditions, including self storage demand, occupancy,\nrental rates, and competition, and changes in the CAD/USD exchange rate;\nSmartStop’s ability to achieve the intended outcomes of The Deca Initiative;\nfluctuations in interest rates and capitalization rates; and other risks\ndescribed in SmartStop’s filings with the Securities and Exchange\nCommission, including its Annual Report on Form 10-K for the year ended\nDecember 31, 2025, and subsequent Quarterly Reports on Form 10-Q. Readers are\ncautioned not to place undue reliance on these forward-looking statements,\nwhich speak only as of the date of this press release. SmartStop undertakes no\nobligation to publicly update or revise any forward-looking statements,\nwhether as a result of new information, future events, or otherwise.\n\nThis press release includes certain non-GAAP financial measures, including\nFFO, as adjusted, per share, and Same-Store NOI. These measures should not be\nconsidered alternatives to net income as a performance measure or to cash\nflows from operations as a liquidity measure, and should be considered in\naddition to, and not in lieu of, financial measures prepared in accordance\nwith GAAP. Reconciliations of these non-GAAP measures to their most directly\ncomparable GAAP measures are available in SmartStop’s most recent quarterly\nfinancial supplement, available at investors.smartstopselfstorage.com.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260928055272/en/\n(https://www.businesswire.com/news/home/20260928055272/en/)\n\nDavid Corak \n\nSenior VP of Corporate Finance and Strategy\n\nSmartStop Self Storage REIT, Inc.\n\nIR@smartstop.com (mailto:IR@smartstop.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-09-29T13:26:00.175736222Z","server_sent_at_ms":1790688360175},"received_at":"2026-09-29T13:26:00.424Z","source_url":"https://www.businesswire.com/news/home/20260928055272/en/"},"analysis":{"id":"144289","press_release_id":"155565","analysis_json":{"industry":{"label":"Real Estate Management & Development","sector":"Real Estate"},"redFlags":["Canadian JV investment subject to Canadian Competition Act approval and other closing conditions","Strategic Storage Canada portfolio only ~50% physically occupied with lease-up risk","Forward equity settlement (up to ~$78M) expected in Q4 2026 introduces settlement/issuance risk","Disposition program dependent on achieving favorable pricing for noncore assets"],"eventType":"m_and_a","narrative":"SmartStop announced approximately $140 million of strategic investments, anchored by a CAD $74 million (~USD $54 million) investment in Strategic Storage Canada, a 14-property joint venture fund that makes the company Canada's third-largest self-storage operator with 70 properties.\n\nThe company also agreed to acquire two wholly owned U.S. properties for about $37 million, launched a programmatic preferred/mezzanine investment partnership (mid-teens yields) alongside JV partner AXCS Capital, and initiated a strategic asset management program targeting $75-$125 million of noncore dispositions starting early 2027.\n\nGrowth is funded leverage-neutrally via ~2.4 million forward ATM shares at an average $32.01 (up to ~$78 million) plus a previously closed CAD $200 million Maple Bond at 4.317%. The transactions are expected to be modestly accretive to 2026 FFO, as adjusted, and add $0.05-$0.06 per share to 2027 FFO, as adjusted.\n\nSmartStop raised full-year 2026 guidance: FFO, as adjusted, per share to $1.99-$2.05 (+$0.01), same-store revenue growth to 0.75%-1.75%, and same-store NOI growth to 1.15%-2.15%.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Leverage-neutral $140M expansion makes SmartStop Canada's #3 storage operator while raising 2026 same-store and FFO guidance with 2027 accretion of $0.05-$0.06 per share."},"keyFigures":{"guidance":"2026 FFO, as adjusted, per share raised $0.01 to $1.99-$2.05; same-store revenue growth raised to 0.75%-1.75% (from 0.50%-1.50%); same-store NOI growth raised to 1.15%-2.15% (from 0.65%-1.65%)","dealValueUsd":140000000,"customDimensions":{"atm_average_price":"$32.01","maple_bond_coupon":"4.317%","ffo_accretion_2027":"$0.05 to $0.06 per share","canada_jv_occupancy":"approximately 50% physically occupied","us_acquisitions_usd":"$37 million","canada_jv_properties":14,"canada_jv_gp_interest":"50%","canada_jv_lp_interest":"approximately 34%","atm_gross_proceeds_usd":"up to approximately $78 million","disposition_target_usd":"$75 million to $125 million","atm_shares_sold_forward":2400000,"canada_jv_investment_cad":"CAD $74 million","canada_jv_investment_usd":"$54 million","canada_jv_stabilized_yield":"over 6%","same_store_noi_growth_2026":"1.15%-2.15%","preferred_investment_yields":"mid-teens","canada_jv_future_capacity_cad":"CAD $228 million","ffo_as_adjusted_2026_guidance":"$1.99-$2.05","preferred_investments_net_usd":"$13.2 million","same_store_revenue_growth_2026":"0.75%-1.75%","additional_preferred_pipeline_usd":"$35 to $40 million"}},"quotedText":"We are significantly expanding our footprint in Canada, adding high-quality assets on-balance sheet in core U.S. markets, and growing a new programmatic investment relationship with an exceptionally high-quality sponsor, all while funding this growth on a leverage-neutral basis.","namedEntities":{"people":[{"name":"H. Michael Schwartz","role":"Founder, Chairman, and CEO"},{"name":"David Corak","role":"Senior VP of Corporate Finance and Strategy"}],"products":["SmartStop Self Storage"],"companies":[{"name":"SmartStop Self Storage REIT, Inc.","ticker":"SMA","relationship":"filer"},{"name":"Strategic Storage Canada, LP","relationship":"joint venture investment target"},{"name":"AXCS Capital","relationship":"joint venture partner"},{"name":"National Bank of Canada","relationship":"financial advisor"},{"name":"McMillan LLP","relationship":"legal advisor"}],"dollarAmounts":[{"amount":"~$140 million","context":"total strategic investments"},{"amount":"USD $54 million","context":"Strategic Storage Canada JV investment (CAD $74 million)"},{"amount":"$37 million","context":"two wholly owned U.S. property acquisitions (Las Vegas, Asheville)"},{"amount":"$13.2 million","context":"net investment in first preferred investment under programmatic partnership"},{"amount":"$35 to $40 million","context":"expected additional preferred/mezzanine investments by end of Q4 2026"},{"amount":"$75 million to $125 million","context":"targeted noncore property dispositions beginning early 2027"},{"amount":"$78 million","context":"gross proceeds from 2.4M shares sold forward via ATM at $32.01 average price"},{"amount":"CAD $200 million","context":"Maple Bond offering closed August 18, 2026, 4.317% coupon maturing 2031"},{"amount":"CAD $228 million","context":"potential additional investments in Strategic Storage Canada fund"},{"amount":"$0.05 to $0.06","context":"2027 FFO, as adjusted, per share accretion"}]},"materialImpact":{"score":4,"reasoning":"Issuer-authored announcement of ~$140M of strategic investments including a Canadian JV that makes SmartStop Canada's third-largest storage operator, plus raised 2026 same-store and FFO guidance. Accretive to 2027 FFO by $0.05-$0.06/share, funded leverage-neutrally via forward ATM equity."},"tickerRelevance":{"others":[],"primary":"SMA"},"globalImportance":42,"audienceRelevance":35,"eventTypeSecondary":["guidance_update","offering","restructuring"],"importanceComponents":{"tickerTier":"mid-cap recent-IPO REIT","eventGravity":"$140M strategic investments plus guidance raise","sectorWeight":"self-storage REIT, niche retail interest","guidanceRaise":true,"issuerAuthored":true}},"event_type":"m_and_a","event_type_secondary":["guidance_update","offering","restructuring"],"sentiment":"bullish","material_impact_score":4,"narrative":"SmartStop announced approximately $140 million of strategic investments, anchored by a CAD $74 million (~USD $54 million) investment in Strategic Storage Canada, a 14-property joint venture fund that makes the company Canada's third-largest self-storage operator with 70 properties.\n\nThe company also agreed to acquire two wholly owned U.S. properties for about $37 million, launched a programmatic preferred/mezzanine investment partnership (mid-teens yields) alongside JV partner AXCS Capital, and initiated a strategic asset management program targeting $75-$125 million of noncore dispositions starting early 2027.\n\nGrowth is funded leverage-neutrally via ~2.4 million forward ATM shares at an average $32.01 (up to ~$78 million) plus a previously closed CAD $200 million Maple Bond at 4.317%. The transactions are expected to be modestly accretive to 2026 FFO, as adjusted, and add $0.05-$0.06 per share to 2027 FFO, as adjusted.\n\nSmartStop raised full-year 2026 guidance: FFO, as adjusted, per share to $1.99-$2.05 (+$0.01), same-store revenue growth to 0.75%-1.75%, and same-store NOI growth to 1.15%-2.15%.","key_figures":{"guidance":"2026 FFO, as adjusted, per share raised $0.01 to $1.99-$2.05; same-store revenue growth raised to 0.75%-1.75% (from 0.50%-1.50%); same-store NOI growth raised to 1.15%-2.15% (from 0.65%-1.65%)","dealValueUsd":140000000,"customDimensions":{"atm_average_price":"$32.01","maple_bond_coupon":"4.317%","ffo_accretion_2027":"$0.05 to $0.06 per share","canada_jv_occupancy":"approximately 50% physically occupied","us_acquisitions_usd":"$37 million","canada_jv_properties":14,"canada_jv_gp_interest":"50%","canada_jv_lp_interest":"approximately 34%","atm_gross_proceeds_usd":"up to approximately $78 million","disposition_target_usd":"$75 million to $125 million","atm_shares_sold_forward":2400000,"canada_jv_investment_cad":"CAD $74 million","canada_jv_investment_usd":"$54 million","canada_jv_stabilized_yield":"over 6%","same_store_noi_growth_2026":"1.15%-2.15%","preferred_investment_yields":"mid-teens","canada_jv_future_capacity_cad":"CAD $228 million","ffo_as_adjusted_2026_guidance":"$1.99-$2.05","preferred_investments_net_usd":"$13.2 million","same_store_revenue_growth_2026":"0.75%-1.75%","additional_preferred_pipeline_usd":"$35 to $40 million"}},"named_entities":{"people":[{"name":"H. Michael Schwartz","role":"Founder, Chairman, and CEO"},{"name":"David Corak","role":"Senior VP of Corporate Finance and Strategy"}],"products":["SmartStop Self Storage"],"companies":[{"name":"SmartStop Self Storage REIT, Inc.","ticker":"SMA","relationship":"filer"},{"name":"Strategic Storage Canada, LP","relationship":"joint venture investment target"},{"name":"AXCS Capital","relationship":"joint venture partner"},{"name":"National Bank of Canada","relationship":"financial advisor"},{"name":"McMillan LLP","relationship":"legal advisor"}],"dollarAmounts":[{"amount":"~$140 million","context":"total strategic investments"},{"amount":"USD $54 million","context":"Strategic Storage Canada JV investment (CAD $74 million)"},{"amount":"$37 million","context":"two wholly owned U.S. property acquisitions (Las Vegas, Asheville)"},{"amount":"$13.2 million","context":"net investment in first preferred investment under programmatic partnership"},{"amount":"$35 to $40 million","context":"expected additional preferred/mezzanine investments by end of Q4 2026"},{"amount":"$75 million to $125 million","context":"targeted noncore property dispositions beginning early 2027"},{"amount":"$78 million","context":"gross proceeds from 2.4M shares sold forward via ATM at $32.01 average price"},{"amount":"CAD $200 million","context":"Maple Bond offering closed August 18, 2026, 4.317% coupon maturing 2031"},{"amount":"CAD $228 million","context":"potential additional investments in Strategic Storage Canada fund"},{"amount":"$0.05 to $0.06","context":"2027 FFO, as adjusted, per share accretion"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-29T13:26:11.496Z","global_importance":42,"audience_relevance":35,"importance_components":{"tickerTier":"mid-cap recent-IPO REIT","eventGravity":"$140M strategic investments plus guidance raise","sectorWeight":"self-storage REIT, niche retail interest","guidanceRaise":true,"issuerAuthored":true}},"durationMs":11026,"modelName":"glm-5.3-flashx"}}