SmartStop Self Storage REIT, Inc. reported its financial results for the three and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. The company recorded total revenues of $60.2 million for Q3 2024, an increase from $58.7 million in Q3 2023, driven primarily by a rise in self-storage rental revenue, which reached $52.9 million, up from $52.5 million year-over-year. However, the net loss for the quarter was $(3.4 million), a significant decline from a net income of $3.0 million in the same quarter of the previous year.

For the nine months ended September 30, 2024, total revenues were $176.4 million, slightly up from $175.4 million in the prior year. The net loss for this period was $(5.7 million), contrasting sharply with a net income of $9.3 million for the same period in 2023. The decline in profitability was attributed to increased operating expenses, which rose to $125.0 million from $121.8 million, largely due to higher costs in property operations and general administrative expenses.

The company’s total assets increased to $1.94 billion as of September 30, 2024, from $1.90 billion at the end of 2023, while total liabilities also rose to $1.25 billion from $1.13 billion. This resulted in a decrease in total equity to $431.7 million from $495.9 million. The net debt increased to approximately $1.18 billion, reflecting a shift in the company’s capital structure with a higher proportion of variable-rate debt.

Strategically, SmartStop continued its acquisition strategy, adding three properties in 2024 for a total of approximately $55 million, which contributed to the increase in rental income. The company also reported a net casualty loss of approximately $4.6 million due to Hurricane Helene, although insurance recoveries are expected to offset some of this loss.

In terms of operational metrics, the average occupancy rate for same-store facilities decreased by 0.7%, while annualized rent per occupied square foot increased by 0.5%. The company’s Managed REIT Platform revenues also saw a modest increase, reflecting growth in property management fees and tenant protection program fees.

Overall, SmartStop Self Storage REIT, Inc. is navigating a challenging economic environment marked by rising interest rates and increased operational costs, while continuing to pursue growth through strategic acquisitions and management of its self-storage facilities.