Summary of Significant Accounting Policies (Tables)
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9 Months Ended |
Sep. 30, 2025 |
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| Accounting Policies [Abstract] |
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| Summary of Sponsorship Funding Payments |
Below is a summary of the portion of sponsorship funding payments which exceeds the fair value of the Series C Units received, and is recorded pursuant to ASC 606 as described above (in thousands):
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Balance as of December 31, 2023 |
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$ |
3,493 |
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Amounts incurred |
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|
1,210 |
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Recorded sponsor funding reduction |
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|
(844 |
) |
Balance as of December 31, 2024 |
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$ |
3,859 |
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Amounts incurred |
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$ |
384 |
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Recorded sponsor funding reduction |
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(779 |
) |
Balance as of September 30, 2025 |
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$ |
3,464 |
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| Estimated Useful Lives used to Depreciate Real Property Assets |
Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives
as follows:
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|
Description |
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Standard Depreciable Life |
Land |
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Not Depreciated |
Buildings |
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30-40 years |
Site Improvements |
|
7-10 years |
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| Summary of Fixed Rate Notes Payable |
The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of our fixed and variable rate debt was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities (categorized within Level 2 of the fair value hierarchy). The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. As of September 30, 2025 and December 31, 2024, we believe the fair value of our variable rate debt was reasonably estimated at their notional amounts as there have been minimal changes to the fixed spread portion of interest rates for similar loans observed in the market, and as the variable portion of our interest rates fluctuate with the associated market indices. The table below summarizes the carrying amounts and fair values of our fixed rate debt which are not carried at fair value as of September 30, 2025 and December 31, 2024 (in thousands):
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September 30, 2025 |
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December 31, 2024 |
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Fair Value |
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Carrying Value |
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Fair Value |
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Carrying Value |
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Fixed Rate Secured Debt |
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$ |
1,034,100 |
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$ |
1,034,219 |
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$ |
531,400 |
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$ |
554,348 |
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| Schedule of Assets and Liabilities Measured at Fair Value |
The tables below present our assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands):
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Fair Value Measurements at September 30, 2025 Using |
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Description |
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Quoted Prices in Active Markets for Identical Assets
(Level 1) |
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Significant Other Observable Inputs
(Level 2) |
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Significant unobservable Inputs
(Level 3) |
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Foreign Currency Hedges |
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Other assets |
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$ |
— |
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$ |
32 |
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$ |
— |
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Accounts payable and accrued liabilities |
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$ |
— |
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$ |
123 |
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$ |
— |
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Fair Value Measurements at December 31, 2024 Using |
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Description |
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
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Significant Other Observable Inputs
(Level 2) |
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Significant unobservable Inputs
(Level 3) |
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Interest Rate Derivatives |
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Other assets |
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$ |
— |
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$ |
1,523 |
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$ |
— |
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Accounts payable and accrued liabilities |
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$ |
— |
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$ |
6,591 |
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$ |
— |
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Foreign Currency Hedges |
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Other assets |
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$ |
— |
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$ |
4,667 |
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$ |
— |
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Accounts payable and accrued liabilities |
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$ |
— |
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$ |
39 |
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$ |
— |
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| Schedule of Computation of Earnings Per Common Share |
The computation of earnings per common share is as follows for the periods presented (amounts presented in thousands, except share and per share data):
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For the Three Months Ended
September 30, |
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For the Nine Months Ended
September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Net income (loss) |
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$ |
5,548 |
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$ |
(3,392 |
) |
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$ |
(4,706 |
) |
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$ |
(5,735 |
) |
Net (income) loss attributable to
noncontrolling interests |
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(321 |
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314 |
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377 |
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405 |
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Net income (loss) attributable to
SmartStop Self Storage REIT, Inc. |
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5,227 |
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(3,078 |
) |
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(4,329 |
) |
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(5,330 |
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Less: Accretion - preferred equity costs |
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— |
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— |
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(3,644 |
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— |
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Less: Distributions to preferred
stockholders |
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— |
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(3,142 |
) |
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(3,567 |
) |
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(9,358 |
) |
Less: Distributions to participating
securities |
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(171 |
) |
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(113 |
) |
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(458 |
) |
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(340 |
) |
Net income (loss) attributable to
common stockholders - basic: |
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5,056 |
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(6,333 |
) |
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(11,998 |
) |
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(15,028 |
) |
Net income (loss) attributable to
common stockholders - diluted: |
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$ |
5,056 |
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$ |
(6,333 |
) |
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$ |
(11,998 |
) |
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$ |
(15,028 |
) |
Weighted average common shares
outstanding: |
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Average number of common
shares outstanding- basic |
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55,097,961 |
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24,119,247 |
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44,625,950 |
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24,173,519 |
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Unvested LTIP Units |
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— |
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— |
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— |
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— |
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Unvested restricted stock awards |
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247,702 |
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— |
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— |
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— |
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Average number of common
shares outstanding - diluted |
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55,345,663 |
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24,119,247 |
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44,625,950 |
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24,173,519 |
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Earnings per common share: |
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Basic |
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$ |
0.09 |
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$ |
(0.26 |
) |
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$ |
(0.27 |
) |
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$ |
(0.62 |
) |
Diluted |
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$ |
0.09 |
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$ |
(0.26 |
) |
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$ |
(0.27 |
) |
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$ |
(0.62 |
) |
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| Summary of Antidilutive Shares Excluded from Computation of Earnings per Share |
The following table presents the weighted average Series A Convertible Preferred Stock, Class A and Class A-1 OP Units, unvested LTIP Units, and unvested restricted stock awards, that were excluded from the computation of diluted earnings per share above as their effect would have been antidilutive for the respective periods, and was calculated using the two-class, treasury stock or if-converted method, as applicable:
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For the Three Months Ended
September 30, |
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For the Nine Months Ended
September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Equivalent Shares
(if converted) |
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Equivalent Shares
(if converted) |
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Equivalent Shares
(if converted) |
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Equivalent Shares
(if converted) |
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Class A and Class A-1 OP Units |
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3,407,954 |
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3,311,340 |
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3,391,728 |
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3,300,315 |
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Unvested LTIP Units |
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153,087 |
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100,891 |
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109,612 |
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89,150 |
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Unvested restricted stock awards |
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— |
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7,569 |
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135,503 |
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5,603 |
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Series A Convertible Preferred Stock |
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— |
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4,690,432 |
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1,597,839 |
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4,690,432 |
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3,561,041 |
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8,110,232 |
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5,234,682 |
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8,085,500 |
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