v3.25.3
Real Estate
9 Months Ended
Sep. 30, 2025
Real Estate [Abstract]  
Real Estate

Note 3. Real Estate

The following summarizes the activity in real estate facilities during the nine months ended September 30, 2025 (in thousands):

 

Real estate

 

 

 

Balance at December 31, 2024

 

$

2,091,196

 

Impact of foreign exchange rate
   changes and other

 

 

3,381

 

Improvements and additions

 

 

11,611

 

Acquisitions

 

 

303,992

 

Balance at September 30, 2025

 

$

2,410,180

 

Accumulated depreciation

 

 

 

Balance at December 31, 2024

 

$

(305,132

)

Depreciation expense

 

 

(45,712

)

Impact of foreign exchange rate
   changes and other

 

 

1,055

 

Balance at September 30, 2025

 

$

(349,789

)

 

Self Storage Facility Acquisitions

On January 7, 2025, we purchased a self storage facility located in Hillside, New Jersey (the "Hillside Property"). The purchase price for the Hillside Property was approximately $35.9 million, plus closing costs. This acquisition was funded with proceeds drawn from the 2025 KeyBank Acquisition Facility.

On January 7, 2025, we purchased a self storage facility located in Clifton, New Jersey (the "Clifton Property"). The purchase price for the Clifton Property was approximately $38.6 million, plus closing costs. This acquisition was funded with proceeds drawn from the 2025 KeyBank Acquisition Facility.

On February 20, 2025, we purchased a self storage facility located in Murfreesboro, Tennessee (the "Murfreesboro Property"). The purchase price for the Murfreesboro Property was approximately $7.9 million, plus closing costs. This acquisition was funded with proceeds drawn from the Credit Facility.

On April 15, 2025, we purchased a self storage facility located in Kelowna, British Columbia (the "Kelowna Property"). The purchase price for the Kelowna Property was approximately USD $29.1 million, plus closing costs. This acquisition was partially funded with proceeds drawn from the Credit Facility. In connection with this acquisition, we

assumed a loan from the seller in the amount of approximately $24.5 million CAD or approximately $17.7 million USD on the date of close, (the "Kelowna Canadian Property Loan"). Please see Note 5 – Debt for additional information.

On May 29, 2025, we purchased a self storage facility located in Lakewood, Colorado (the "Lakewood II Property"). The purchase price for the Lakewood II Property was approximately $12.7 million, plus closing costs. This acquisition was funded with proceeds drawn from the Credit Facility.

On June 17, 2025, we purchased a portfolio of five self storage facilities located in Houston, Texas. The combined purchase price for these five properties was approximately $108.1 million, plus closing costs. This acquisition was funded with proceeds from the 2028 Canadian Notes. In connection with the acquisition of this portfolio, we assumed a mortgage loan on one of the properties from the seller in the amount of approximately $8.8 million, (the "Houston Property Loan"). Please see Note 5 – Debt for additional information.

On August 26, 2025, we purchased a portfolio of five self storage facilities located in Alberta, Canada. The combined purchase price for these five properties was approximately $97.4 million CAD or approximately $70.3 million USD on the date of close, plus closing costs. This acquisition was funded with proceeds drawn from the Credit Facility.

On September 3, 2025, we purchased a self storage facility located in Rahway, New Jersey (the "Rahway Property"). The purchase price for the Rahway Property was approximately $15.3 million, plus closing costs. This acquisition was funded with proceeds drawn from the Credit Facility.

 

 

The following table summarizes the purchase price allocations for the real estate related assets acquired during the nine months ended September 30, 2025 (in thousands):

 

Acquisition

 

Acquisition
Date

 

Occupancy Upon Acquisition(1)

 

Real Estate
Assets

 

 

Intangibles

 

 

Total (2)

 

 

2025
Revenue
(3)

 

 

Hillside

 

1/7/2025

 

89%

 

$

34,556

 

 

$

1,388

 

 

$

35,944

 

 

$

1,824

 

 

Clifton

 

1/7/2025

 

93%

 

 

37,072

 

 

 

1,575

 

 

 

38,647

 

 

 

2,152

 

 

Murfreesboro(4)

 

2/20/2025

 

89%

 

 

7,578

 

 

 

329

 

 

 

7,907

 

 

 

451

 

 

Kelowna

 

4/15/2025

 

88%

 

 

27,445

 

 

 

762

 

 

 

28,207

 

 

 

707

 

 

Lakewood II

 

5/29/2025

 

87%

 

 

12,242

 

 

 

507

 

 

 

12,749

 

 

 

401

 

 

Holzwarth Rd, Houston

 

6/17/2025

 

82%

 

 

14,525

 

 

 

744

 

 

 

15,269

 

 

 

431

 

 

Holcombe Blvd, Houston

 

6/17/2025

 

92%

 

 

35,835

 

 

 

1,686

 

 

 

37,521

 

 

 

884

 

 

Louetta Rd, Houston

 

6/17/2025

 

88%

 

 

19,141

 

 

 

872

 

 

 

20,013

 

 

 

507

 

 

FM 2978, Houston

 

6/17/2025

 

83%

 

 

13,867

 

 

 

643

 

 

 

14,510

 

 

 

381

 

 

Shenandoah, Houston

 

6/17/2025

 

88%

 

 

19,603

 

 

 

910

 

 

 

20,513

 

 

 

504

 

 

Edmonton, Alberta

 

8/26/2025

 

68%

 

 

9,373

 

 

 

346

 

 

 

9,719

 

 

 

71

 

 

Sherwood Park, Alberta

 

8/26/2025

 

72%

 

 

11,349

 

 

 

455

 

 

 

11,804

 

 

 

87

 

 

Red Deer, Alberta

 

8/26/2025

 

72%

 

 

13,232

 

 

 

550

 

 

 

13,782

 

 

 

100

 

 

Canmore, Alberta

 

8/26/2025

 

86%

 

 

20,202

 

 

 

859

 

 

 

21,061

 

 

 

169

 

 

Cochrane, Alberta

 

8/26/2025

 

69%

 

 

13,372

 

 

 

632

 

 

 

14,004

 

 

 

117

 

 

Rahway

 

9/3/2025

 

94%

 

 

14,600

 

 

 

728

 

 

 

15,328

 

 

 

104

 

 

 

 

 

 

 

 

$

303,992

 

 

$

12,986

 

 

$

316,978

 

 

$

8,890

 

 

 

(1) Represents the approximate occupancy percentage of the property at the time of acquisition.

 

(2) The allocation noted above is based on a determination of the relative fair value of the total consideration and represents the amount paid including capitalized acquisition costs, as applicable.

(3) The operating results of the self storage properties acquired have been included in our consolidated statements of operations since their acquisition dates.

 

(4) This property was sold to SST X on October 30, 2025 for approximately $7.9 million. Please see Note 14 – Subsequent Events for additional detail.

 

 

Potential Acquisitions

As of November 7, 2025, we, through our wholly-owned subsidiaries, were party to five purchase and sale agreements with unaffiliated third parties for the acquisition of three self storage facilities and four development sites located in the United States and Canada. The total purchase price for these properties and parcels of land is approximately $43.4 million, plus closing costs. If we fail to acquire these properties or parcels of land, in addition to the incurred acquisition costs, we may also forfeit earnest money of approximately $0.7 million as a result.

We may assign some or all of the above purchase and sale agreements to one or more of our Managed REITs and/or contribute such property to a joint venture.

Eminent Domain

In May 2025, we learned that two of our self storage properties in Asheville, North Carolina, the Asheville III and Asheville IV properties, may be impacted by the current plan for an extensive and prolonged highway expansion project. We are in the preliminary stages of evaluating the impact that this project may have on these two properties, including how much of each property may be taken. The aggregate rentable square feet and carrying value of these properties as of September 30, 2025, was approximately 115,000 square feet and $15.9 million, respectively. We will continue to work with the authorities and their representatives to further understand the impact to our properties, attempt to mitigate the impact to us and our tenants, and as needed, negotiate the fair value of any property that may ultimately be taken. We do not expect the taking to have a material impact on our results of operations and we evaluated these properties for impairment, concluding that as of September 30, 2025 there continues to be no impairment. The total revenue for the Asheville III and Asheville IV properties for the nine months ended September 30, 2025 was approximately $0.8 million and $0.7 million, respectively.