Analyst Ki Bin Kim of Truist Financial maintained a Buy rating on SmartStop Self Storage REIT, Inc., retaining the price target of $39.00.
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Ki Bin Kim has given his Buy rating due to a combination of factors related to SmartStop Self Storage REIT, Inc.’s strategic acquisition of Argus Professional Storage Management. This acquisition is set to enhance SmartStop’s position in third-party management by adding 227 assets under management, which is expected to close in early October 2025.
Kim views this deal favorably as it is anticipated to contribute positively to the company’s financials, with an annual increase in funds from operations per share. Additionally, the acquisition is expected to provide scale benefits, such as improved marketing efficiency and data collection, which will enhance revenue management and marketing strategies. Furthermore, the potential to introduce right of first refusal provisions in future contracts and the opportunity to become a capital solution for other owners are seen as significant growth opportunities for SmartStop.