Second Quarter 2026
Filed Aug 5, 2026SmartStop reported second-quarter growth in self storage-related revenue, FFO as adjusted per share, same-store NOI and same-store operating margin, while same-store occupancy declined year over year.
Second-quarter FFO as adjusted per share increased by approximately $0.07 year over year to $0.49, same-store NOI increased by 3.7%, and same-store operating margin reached 67.3%, up 150 basis points year over year. Revenue growth and expense control offset a decline in same-store average physical occupancy.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income attributable to common stockholdersGAAP | approximately $11.2 million | – | increase of approximately $19.6 million |
| Net income per share of Common Stock, basic and dilutedGAAP | $0.20 | – | increase of approximately $0.36 per share |
| Total self storage-related revenuesGAAP | approximately $65.8 million | – | increase of approximately $4.9 million |
| Self storage rental revenueGAAP | $ 62,880 (Amounts in thousands) | – | – |
| Ancillary operating revenueGAAP | $ 2,957 (Amounts in thousands) | – | – |
| FFO, as adjusted (attributable to common stockholders and Operating Partnership unit holders)non-GAAP | approximately $29.3 million | – | increase of approximately $4.9 million |
| FFO, as adjusted per share and OP unit outstanding – dilutednon-GAAP | $0.49 | – | increase of approximately $0.07 per share |
| Same-store revenuesother | 1.3% | – | increased by 1.3% |
| Same-store property operating expensesother | decreased by 3.4% | – | decreased by 3.4% |
| Same-store net operating incomeother | increased by 3.7% | – | increased by 3.7% |
| Same-store operating marginsother | 67.3% | – | up 150 basis points year over year |
| Same-store average physical occupancyother | 92.5% | – | decrease of approximately 0.6% |
| Same-store annualized rent per occupied square footother | approximately $20.33 | – | increase of approximately 1.9% |
| Cash and cash equivalentsother | $ 38,185 (Amounts in thousands) | – | – |
| Debt, netother | $ 1,119,645 (Amounts in thousands) | – | – |
| Total assetsother | $ 2,437,872 (Amounts in thousands) | – | – |
| Total liabilitiesother | $ 1,178,856 (Amounts in thousands) | – | – |
| Total equityother | $ 1,259,016 (Amounts in thousands) | – | – |
Capital returns
- For the months of June, July and August 2026, holders of outstanding common stock will receive a distribution equivalent to an annualized distribution of $1.60 per share.
- Each monthly distribution was paid, or will be paid, on or about July 15, 2026, August 14, 2026 and September 15, 2026, respectively.
What drove it
- Same-store revenues increased by 1.3%, same-store property operating expenses decreased by 3.4%, and same-store NOI increased by 3.7% compared to the same period in 2025.
- Same-store annualized rent per occupied square foot was approximately $20.33, an increase of approximately 1.9% compared to the same period in 2025.
- In June, SmartStop acquired three self storage facilities in the greater Spartanburg, South Carolina area for total consideration of approximately $29.7 million.
- In June, SmartStop closed a preferred investment totaling approximately $16.3 million and became property manager of the associated self storage facility.
- The weighted average yield between the June preferred investment and the August preferred investment was approximately 10.9%.
- SmartStop managed approximately 220 stores representing approximately 15.7 million net rentable square feet on its third-party platform at quarter end.
Concerns
- Same-store average physical occupancy was 92.5%, a decrease of approximately 0.6% compared to the same period in 2025.
- Cash and cash equivalents declined to $ 38,185 (Amounts in thousands) at June 30, 2026 from $ 54,224 (Amounts in thousands) at December 31, 2025.
- Debt, net increased to $ 1,119,645 (Amounts in thousands) at June 30, 2026 from $ 1,098,248 (Amounts in thousands) at December 31, 2025.
- The North Carolina Department of Transportation took the majority of the Asheville III property on April 27, 2026, and subsequently took a small portion of the Asheville IV property on July 27, 2026. Both properties were removed from the 2026 same-store pool during the second quarter of 2026.
What to watch
- Execution against the increased 2026 same-store NOI guidance and FFOa per share guidance, for which specific revised ranges were not included in the provided filing text.
- Same-store occupancy and annualized rent per occupied square foot trends.
- Deployment and yield realization from the preferred investment and bridge capital platform.
- The anticipated fourth-quarter 2026 closing of the Managed REIT Merger, after which SmartStop expects to continue as advisor and property manager to SST VI as the surviving company.
- The $2.0 million negotiated payment payable in units of limited partnership interest in the SSGT III operating partnership immediately prior to the effective time of the Managed REIT Merger.
Balance sheet and cash flow
- Cash and cash equivalents were $ 38,185 (Amounts in thousands) at June 30, 2026, compared with $ 54,224 (Amounts in thousands) at December 31, 2025.
- Restricted cash was $ 6,008 (Amounts in thousands) at June 30, 2026, compared with $ 5,144 (Amounts in thousands) at December 31, 2025.
- Debt, net was $ 1,119,645 (Amounts in thousands) at June 30, 2026, compared with $ 1,098,248 (Amounts in thousands) at December 31, 2025.
- Total assets were $ 2,437,872 (Amounts in thousands) at June 30, 2026, compared with $ 2,432,172 (Amounts in thousands) at December 31, 2025.
Analysis
SmartStop's second quarter showed positive core operating momentum. Total self storage-related revenues were approximately $65.8 million, an increase of approximately $4.9 million from the same period in 2025. FFO, as adjusted was approximately $29.3 million, up approximately $4.9 million, while FFO, as adjusted per share and OP unit outstanding – diluted was $0.49, an increase of approximately $0.07 per share. Net income attributable to common stockholders was approximately $11.2 million and net income per share of Common Stock, basic and diluted, was $0.20.
Same-store performance was led by expense control. Same-store revenues increased by 1.3%, same-store property operating expenses decreased by 3.4%, and same-store NOI increased by 3.7% from the prior-year period. Management reported same-store operating margins of 67.3%, up 150 basis points year over year. Rent growth supported revenue, with same-store annualized rent per occupied square foot of approximately $20.33, up approximately 1.9%, but same-store average physical occupancy of 92.5% was down approximately 0.6% year over year.
Capital deployment included the approximately $29.7 million acquisition of the Spartanburg Three Properties and a preferred investment totaling approximately $16.3 million in June. SmartStop also disclosed an August preferred investment with AXCS in which its portion was approximately $3.1 million. The weighted average yield between the two investments was approximately 10.9%. The Managed REIT platform had approximately $1.0 billion of assets under management at quarter end, and the proposed merger of SST VI and SSGT III is anticipated to close in the fourth quarter of 2026.
The balance sheet showed cash and cash equivalents of $ 38,185 (Amounts in thousands) and debt, net of $ 1,119,645 (Amounts in thousands) at June 30, 2026. Cash was lower and debt was higher than the respective December 31, 2025 balances shown in the filing. SmartStop maintained an annualized distribution equivalent of $1.60 per share for the June, July and August 2026 monthly distributions.
Management stated that it increased 2026 same-store NOI guidance and FFOa per share guidance, citing core operating improvement. The provided filing text does not include the numerical guidance ranges, so the magnitude of the increase and the detailed forward assumptions cannot be assessed from this document. Key reported operating markers for subsequent periods are occupancy, rental-rate growth, same-store expense control, and execution on acquisition and preferred-investment deployment.
Management, verbatim
We posted a strong quarter of growth, highlighted by 17.6% year over year increase in our Funds from Operations as Adjusted per share.
H. Michael Schwartz, Chairman and Chief Executive Officer of SmartStop
Our strong same-store results were driven by our revenue management platform, talented operations and store level teams, growing efficiencies from scale, and effective expense control.
H. Michael Schwartz, Chairman and Chief Executive Officer of SmartStop
Additionally, we deployed over $46 million this quarter into accretive on balance sheet acquisitions and bridge capital investments, while also organically reducing our cash flow leverage from the prior quarter.
H. Michael Schwartz, Chairman and Chief Executive Officer of SmartStop
Not in the filing
stated, not guessed- Complete consolidated statements of operations after the filing text truncates at the beginning of the management revenue line item.
- Gross profit or gross margin.
- Operating income, operating margin, and operating expenses.
- Net income attributable to common stockholders for the comparable three-month 2025 period as an exact reported line-item figure.
- FFO, as adjusted for the comparable three-month 2025 period as an exact reported line-item figure.
- GAAP and non-GAAP diluted weighted-average shares outstanding.
- Operating cash flow.
- Free cash flow.
- Detailed cash flow statement.
- Specific numerical ranges and assumptions for increased 2026 same-store NOI guidance and FFOa per share guidance.
- Prior-quarter operating metrics and prior-quarter earnings metrics.
- A previous-release outlook section needed to compare actual results with prior guidance.
- Segment revenue disclosures.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.