SmartStop Self Storage REIT, Inc.: Strong Market Position and Growth Potential Justify Buy Rating

Ki Bin Kim, an analyst from Truist Financial, has initiated a new Buy rating on SmartStop Self Storage REIT, Inc. (SMA).

Ki Bin Kim has given his Buy rating due to a combination of factors that highlight SmartStop Self Storage REIT, Inc.’s strong market position and growth potential. The company holds a unique and dominant position in the Greater Toronto Area, a market characterized by limited supply per capita compared to the U.S. average, which suggests significant growth opportunities. Additionally, SmartStop’s expected same-store revenue growth in 2025 is relatively attractive, surpassing that of its peers, and its historical performance has been favorable, demonstrating consistent growth in same-store net operating income and revenue.
Moreover, the company is projected to experience substantial growth in funds from operations per share, with expectations of a 12.4% increase in 2025 and a 15.5% rise in 2026. SmartStop also has the potential for margin enhancement as it continues to mature, with plans to allocate more resources to technology and operations. Furthermore, the company possesses strong external growth potential, which further supports the Buy rating recommendation.

In another report released today, BMO Capital also initiated coverage with a Buy rating on the stock with a $40.00 price target.

Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SMA in relation to earlier this year.