SmartStop REIT Files Q2 2024 10-Q

TL;DR

**SmartStop REIT Q2 10-Q dropped: Financials and derivatives in focus.**

AI Summary

SmartStop Self Storage REIT, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial instruments and fair value measurements are disclosed, including interest rate derivatives and noncontrolling interests.

Why It Matters

This filing provides investors with a detailed look at SmartStop's financial health and operational performance during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, including fair value measurements and derivative instruments, which can introduce complexity and potential volatility.

Key Numbers

• 2024-06-30 — Period End Date (The reporting period for this 10-Q filing.)
• 2024-08-13 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• SmartStop Self Storage REIT, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — Period of report for the 10-Q
• 20240813 (date) — Filing date of the 10-Q
• Strategic Storage Trust II, Inc. (company) — Former company name

FAQ

Filing Documents

• ck0001585389-20240630.htm (10-Q) — 5216KB
• ck0001585389-ex31_1.htm (EX-31.1) — 14KB
• ck0001585389-ex31_2.htm (EX-31.2) — 14KB
• ck0001585389-ex32_1.htm (EX-32.1) — 8KB
• ck0001585389-ex32_2.htm (EX-32.2) — 8KB
• 0000950170-24-096043.txt ( ) — 21837KB
• ck0001585389-20240630.xsd (EX-101.SCH) — 2908KB
• ck0001585389-20240630_htm.xml (XML) — 4844KB

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 15 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 62 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 82 Item 4.

Controls and Procedures

Controls and Procedures 83 PART II. OTHER INFORMATION 84 Item 1.

Legal Proceedings

Legal Proceedings 84 Item 1A.

Risk Factors

Risk Factors 84 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 84 Item 3. Defaults Upon Senior Securities 84 Item 4. Mine Safety Disclosures 84 Item 5. Other Information 84 Item 6. Exhibits 84 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this Form 10-Q of SmartStop Self Storage REIT, Inc., other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "seek," "continue," or other similar words. Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of, and assumptions made by, our management and involve uncertainties that could significantly affect our financial results. Such statements include, but are not limited to: (i) statements about our plans, strategies, initiatives, and prospects; and (ii) statements about our future results of operations, capital expenditures, and liquidity. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation: We have paid, and may continue to pay, distributions from sources other than cash flow from operations; therefore, we will have fewer funds available for the acquisition of propert

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

CONSOLIDATED FINANCI AL STATEMENTS (UNAUDITED)

ITEM 1. CONSOLIDATED FINANCI AL STATEMENTS (UNAUDITED) The information furnished in the accompanying unaudited consolidated balance sheets and related consolidated statements of operations, comprehensive income (loss), equity and temporary equity, and cash flows reflects all adjustments (consisting of normal and recurring adjustments) that are, in management's opinion, necessary for a fair and consistent presentation of the aforementioned consolidated financial statements. The accompanying consolidated financial statements should be read in conjunction with the notes to our consolidated financial statements included in this report on Form 10-Q. The accompanying consolidated financial statements should also be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Our results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the operating results expected for the full year. 5 SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES CONSOLIDATED BA LANCE SHEETS (Amounts in thousands, except share and per share data) June 30, 2024 (Unaudited) December 31, 2023 ASSETS Real estate facilities: Land $ 432,381 $ 430,869 Buildings 1,404,894 1,401,981 Site improvements 93,105 91,896 1,930,380 1,924,746 Accumulated depreciation ( 281,485 ) ( 255,844 ) 1,648,895 1,668,902 Construction in process 8,968 5,977 Real estate facilities, net 1,657,863 1,674,879 Cash and cash equivalents 34,677 45,079 Restricted cash 7,368 8,348 Investments in unconsolidated real estate ventures (Note 4) 36,442 35,832 Investments in and advances to Managed REITs 39,837 34,391 Deferred tax assets 4,568 4,450 Other assets, net 17,698 21,701 Intangible assets, net of accumulated amortization 1,635 1,170 Trademarks, net of accumulated amortization

View Full Filing

View this 10-Q filing on SEC EDGAR