SmartStop Self Storage REIT, Inc. (SMA) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: 1.8%
• Average Volume (3M): 538.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: 8.86%
• EPS Growth: N/A
• Country: US
• Employees: 560
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Specialty
• EPS (TTM): -0.16
• Shares Outstanding: 31,050,000
• 10 Day Avg. Volume: 432,781
• 30 Day Avg. Volume: 538,801
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: 11.86
• Enterprise Value/Gross Profit: 18.48
• Enterprise Value/Ebitda: 24.39
• 1Y Price Target: $40.00
• Price Target Upside: 5.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 61 Neutral
• Price Target: $39.00 ▲(2.98% Upside)

SmartStop Self Storage REIT, Inc. has a moderate overall stock score driven by positive corporate events and technical analysis indicators. The company's financial performance is stable but challenged by high leverage and negative profitability, which impacts its valuation. The recent public offering and dividend declarations are positive signs, but the negative P/E ratio and profitability issues remain concerns.

Positive Factors

Strategic Growth Initiatives

The successful public offering and NYSE listing provide significant capital to reduce debt and expand the property portfolio, positioning SmartStop for future growth and enhancing its market presence.

Dividend Commitment

Consistent dividend declarations reflect SmartStop's commitment to shareholder returns, potentially increasing investor confidence and appeal over the long term.

Operational Efficiency

The increase in occupancy rates indicates effective management of storage facilities, contributing to stable revenue streams and operational efficiency, which are crucial for long-term success.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns.

Profitability Challenges

Ongoing profitability issues, as indicated by a negative net profit margin, can hinder SmartStop's ability to reinvest in its business and may affect long-term financial stability.

Declining Free Cash Flow

A decline in free cash flow growth can impact liquidity and limit the company's ability to fund new projects or weather financial challenges, affecting its long-term operational capabilities.

SmartStop Self Storage REIT, Inc. Business Overview & Revenue Model

Company Description

SmartStop is a technology-driven, self-managed REIT with a fully integrated operations team of approximately 570 self-storage professionals. It is one of the largest self-storage companies in North America, with a growing portfolio in Canada and high-growth markets in the U.S.

How the Company Makes Money

SmartStop Self Storage REIT, Inc. generates revenue primarily through rental income from its self-storage facilities. Customers pay monthly fees for renting storage units, which vary based on unit size, location, and additional features like climate control. The company may also earn ancillary income from the sale of packing supplies, insurance offerings, and late fees. SmartStop benefits from economies of scale, as its extensive portfolio allows for operational efficiencies and competitive pricing. Strategic acquisitions and partnerships further enhance its revenue by expanding its market presence and customer base.

SmartStop Self Storage REIT, Inc. Financial Statement Overview

Summary

SmartStop Self Storage REIT, Inc. demonstrates stable revenue growth and strong gross margins, but faces challenges with profitability and high leverage. The balance sheet reflects significant debt, which could impact financial flexibility. Cash flow generation is positive, though recent declines in free cash flow growth warrant attention. Overall, the company shows potential for growth but must address profitability and leverage concerns to enhance financial health.

Income Statement

SmartStop Self Storage REIT, Inc. shows a modest revenue growth rate of 3.12% TTM, indicating steady expansion. However, the company struggles with profitability, as evidenced by a negative net profit margin of -3.76% TTM. The gross profit margin remains healthy at 67.11%, but the declining EBIT margin from 30.41% in 2023 to 28.00% TTM suggests pressure on operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 2.49 TTM, indicating significant leverage, which could pose financial risks. The return on equity is negative at -1.52% TTM, reflecting challenges in generating returns for shareholders. However, the equity ratio of 52.82% TTM suggests a reasonable proportion of equity financing.

Cash Flow

Operating cash flow remains positive with a coverage ratio of 1.16 TTM, indicating adequate cash generation relative to net income. However, free cash flow growth has declined by 15.39% TTM, which could impact future liquidity. The free cash flow to net income ratio of 1.0 TTM shows that cash flow aligns with reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	253.07M	237.01M	232.99M	206.32M	168.76M	124.02M
Gross Profit	162.42M	157.69M	158.50M	148.91M	114.91M	77.11M
EBITDA	123.09M	124.03M	131.09M	127.25M	65.38M	21.09M
Net Income	-12.93M	-5.62M	9.75M	18.82M	-16.90M	-44.30M
Balance Sheet
Total Assets	2.30B	2.04B	1.90B	1.95B	1.62B	1.28B
Cash, Cash Equivalents and Short-Term Investments	37.72M	23.11M	45.08M	39.49M	37.25M	72.71M
Total Debt	950.01M	1.32B	1.09B	1.07B	873.87M	724.38M
Total Liabilities	1.00B	1.37B	1.13B	1.11B	943.22M	785.29M
Stockholders Equity	1.22B	584.10M	671.97M	740.29M	610.42M	436.93M
Cash Flow
Free Cash Flow	50.91M	64.03M	73.19M	87.91M	58.76M	26.77M
Operating Cash Flow	50.91M	64.03M	73.19M	87.91M	58.76M	26.77M
Investing Cash Flow	-403.21M	-180.94M	262.00K	-205.15M	-120.21M	-28.96M
Financing Cash Flow	354.03M	94.82M	-66.10M	120.07M	25.67M	13.74M

SmartStop Self Storage REIT, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SELF	73 Outperform	$58.28M	23.57	5.15%	5.64%	4.08%	11.03%
SEVN	66 Neutral	$163.93M	10.38	5.71%	12.12%	-16.74%	-32.89%
Sector *	63 Neutral	$7.03B	13.25	-0.30%	6.93%	4.01%	-25.47%
SMA	61 Neutral	$1.49B	―	-1.46%	1.80%	8.86%	―
LFT	60 Neutral	$121.95M	12.83	6.01%	16.67%	-24.12%	-47.91%
MDV	59 Neutral	$149.63M	75.12	-1.11%	7.90%	-2.40%	42.84%
FSP	51 Neutral	$175.24M	―	-8.18%	2.41%	-18.12%	24.44%

SmartStop Self Storage REIT, Inc. Corporate Events

SmartStop Self Storage Joins 2025 Fall Conference

On September 3, 2025, SmartStop Self Storage REIT, Inc. announced its participation in the Self Storage Association’s 2025 Fall Conference & Trade Show. The company reported a 2.9% year-over-year revenue growth for its same-store facilities in July 2025 compared to July 2024, excluding tenant protection program revenue. This metric reflects the company’s operational performance and its ability to generate increased revenue from its existing properties.

SmartStop Declares September 2025 Dividend

On August 28, 2025, SmartStop Self Storage REIT, Inc.‘s Board of Directors declared a dividend for September 2025, targeting an annualized dividend of $1.60 per share. This decision impacts stockholders with dividends payable on October 15, 2025, reflecting the company’s commitment to providing returns to its investors.

SmartStop Completes Public Offering and NYSE Listing

On August 22, 2025, SmartStop Self Storage REIT, Inc. announced the successful completion of a public offering and NYSE listing, raising $875.6 million. The company has used these proceeds to strengthen its financial position, reduce debt, and expand its property portfolio, positioning itself for future growth. The offering has also enhanced stockholder liquidity, with Class A and Class T shares set to convert to listed shares on October 1, 2025. Despite initial concerns about the offering price, the management remains optimistic about the company’s growth prospects and market positioning.

SmartStop Reports Slight Increase in Occupancy Rates

On August 11, 2025, SmartStop Self Storage REIT, Inc. reported metrics for its same store facilities, showing a slight increase in physical occupancy from 92.0% in 2024 to 92.8% in 2025. However, the company experienced a decrease in monthly web and move-in rates over the same period, while monthly in-place rates remained stable. These metrics provide insights into the company’s operational performance and market conditions over the past year.

SmartStop Declares August 2025 Dividend Announcement

On July 31, 2025, SmartStop Self Storage REIT, Inc. declared a dividend for August 2025, targeting an annualized dividend of $1.60 per share. The dividend will be payable on September 3, 2025, to stockholders of record as of August 29, 2025, impacting the company’s financial distribution strategy and potentially influencing investor sentiment.

Lora Gotcheva Joins SmartStop Self Storage Board

On June 30, 2025, Paula Mathews retired from the Board of Directors of SmartStop Self Storage REIT, Inc., with her resignation not stemming from any disagreements with the company. In recognition of her contributions, the Board accelerated the vesting of her long-term incentive plan units, valued at approximately $450,000. Subsequently, on July 1, 2025, Lora Gotcheva was appointed as an independent director, effective July 10, 2025. With over 25 years of financial management experience, Gotcheva will serve on the Audit and Compensation Committees, bringing her expertise from her previous role at CPP Investments. Her appointment is accompanied by standard director compensation, including cash retainers and an equity award.

SmartStop Declares July Dividend, Boosting Investor Appeal

On June 27, 2025, SmartStop Self Storage REIT, Inc.‘s Board of Directors declared a dividend for July 2025, targeting an annualized dividend of $1.60 per share. This decision, with a record date of July 31, 2025, and payment on August 15, 2025, reflects the company’s commitment to providing returns to its stockholders, potentially enhancing its attractiveness to investors.

SmartStop Self Storage Holds 2025 Annual Meeting

On June 24, 2025, SmartStop Self Storage REIT, Inc. held its 2025 Annual Meeting of Stockholders, where five directors were elected to the board, including H. Michael Schwartz and Paula Mathews. Additionally, the appointment of BDO USA, P.C. as the independent registered public accounting firm for the year ending December 31, 2025, was ratified by the stockholders.

SmartStop Self Storage Completes CAD$500M Note Offering

On June 11, 2025, SmartStop Self Storage REIT, Inc. announced a private placement offering of CAD$500 million in 3.907% Senior Unsecured Notes due 2028, with the sale completed on June 16, 2025. The proceeds from this offering are being used to repay existing debt, fund acquisitions, and support general corporate purposes, reflecting the company’s strategic focus on growth and financial stability.

SmartStop Reduces Authorized Shares to 225 Million

On June 12, 2025, SmartStop Self Storage REIT, Inc. filed an Articles of Amendment that reduced its total authorized shares from 900 million to 225 million. This strategic move, approved by the board of directors, significantly decreases the number of common and preferred stocks, potentially impacting the company’s capital structure and shareholder value.

SmartStop Announces CAD $500 Million Bond Offering

On June 11, 2025, SmartStop Self Storage REIT, Inc. announced the pricing of a CAD $500 million Canadian Maple Bond offering, with notes due in 2028 at an interest rate of approximately 3.91% per annum. The proceeds from this offering are intended to repay higher interest debt, fund acquisitions, and support general corporate purposes, with the closing expected on June 16, 2025. The offering is limited to Canadian residents and will not be sold outside Canada.