10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 000-53644

Strategic Storage Trust, Inc.

(Exact name of Registrant as specified in its charter)

Maryland	32-0211624
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

111 Corporate Drive, Suite 120, Ladera Ranch, California 92694

(Address of principal executive offices)

(877) 327-3485

(Registrant’s telephone number)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of May 13, 2014: 56,728,748, $0.001 par value per share.

FORM 10-Q

STRATEGIC STORAGE TRUST, INC.

TABLE OF CONTENTS

		Page No.
PART I.	FINANCIAL INFORMATION
	Cautionary Note Regarding Forward-Looking Statements		3
Item 1.	Consolidated Financial Statements:		4
	Consolidated Balance Sheets as of March 31, 2014 (unaudited) and December 31, 2013 (unaudited)		5
	Consolidated Statements of Operations for the Three Months Ended March 31, 2014 and 2013 (unaudited)		6
	Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2014 and 2013 (unaudited)		7
	Consolidated Statement of Equity for the Three Months Ended March 31, 2014 (unaudited)		8
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2014 and 2013 (unaudited)		9
	Notes to Consolidated Financial Statements (unaudited)		10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		31
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		44
Item 4.	Controls and Procedures		45
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings		46
Item 1A.	Risk Factors		46
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		46
Item 3.	Defaults Upon Senior Securities		46
Item 4.	Mine Safety Disclosures		46
Item 5.	Other Information		46
Item 6.	Exhibits		46

2

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Form 10-Q of Strategic Storage Trust, Inc., other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such statements include, in particular, statements about our plans, strategies, and prospects and are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this report is filed with the Securities and Exchange Commission. We cannot guarantee the accuracy of any such forward-looking statements contained in this Form 10-Q, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Any such forward-looking statements are subject to risks, uncertainties, and other factors and are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual results, our ability to meet such forward-looking statements, including our ability to generate positive cash flow from operations and provide distributions to stockholders, and our ability to find suitable investment properties, may be significantly hindered. See the risk factors identified in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission, for a discussion of some, although not all, of the risks and uncertainties that could cause actual results to differ materially from those presented in our forward-looking statements.

3

PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

The information furnished in the accompanying unaudited consolidated balance sheets and related consolidated statements of operations, comprehensive loss, equity and cash flows reflects all adjustments (consisting of normal and recurring adjustments) that are, in management’s opinion, necessary for a fair and consistent presentation of the aforementioned financial statements.

The accompanying financial statements should be read in conjunction with the notes to our financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this report on Form 10-Q. The accompanying financial statements should also be read in conjunction with our financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2013. Our results of operations for the three months ended March 31, 2014 are not necessarily indicative of the operating results expected for the full year.

4

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31, 2014			December 31, 2013
ASSETS
Cash and cash equivalents	$	19,934,208		$	39,603,949
Real estate facilities:
Land		196,241,963			194,033,413
Buildings		462,239,458			456,372,075
Site improvements		44,772,257			43,733,299
		703,253,678			694,138,787
Accumulated depreciation		(51,101,228	)		(46,432,155	)
		652,152,450			647,706,632
Construction in process		2,247,327			776,804
Real estate facilities, net		654,399,777			648,483,436
Deferred financing costs, net of accumulated amortization		5,700,633			5,798,963
Intangible assets, net of accumulated amortization		10,064,257			10,447,513
Restricted cash		5,325,485			6,506,112
Investments in unconsolidated joint ventures		8,626,120			8,662,363
Other assets		3,732,008			3,777,167
Total assets	$	707,782,488		$	723,279,503
LIABILITIES AND EQUITY
Secured debt	$	389,549,924		$	391,285,760
Accounts payable and accrued liabilities		9,089,736			9,917,437
Due to affiliates		1,412,376			1,741,518
Distributions payable		3,389,509			3,355,882
Total liabilities		403,441,545			406,300,597
Commitments and contingencies (Note 8)
Equity:
Strategic Storage Trust, Inc. equity:
Preferred Stock, $0.001 par value; 200,000,000 shares authorized; none issued and outstanding at March 31, 2014 and December 31, 2013, respectively		—			—
Common stock, $0.001 par value; 700,000,000 shares authorized; 56,576,672 and 56,136,435 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively		56,576			56,136
Additional paid-in capital		489,211,016			487,032,573
Distributions		(116,816,690	)		(107,090,016	)
Accumulated deficit		(70,409,884	)		(69,376,201	)
Accumulated other comprehensive loss		(2,117,352	)		(1,615,743	)
Total Strategic Storage Trust, Inc. equity		299,923,666			309,006,749
Noncontrolling interest in our Operating Partnership		4,289,255			2,289,379
Other noncontrolling interests		128,022			5,682,778
Total noncontrolling interests		4,417,277			7,972,157
Total equity		304,340,943			316,978,906
Total liabilities and equity	$	707,782,488		$	723,279,503

See notes to consolidated financial statements.

5

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended March 31,
	2014			2013
Revenues:
Self storage rental revenue	$	22,443,368		$	18,809,769
Ancillary operating revenue		689,576			598,172
Total revenues		23,132,944			19,407,941
Operating expenses:
Property operating expenses		7,792,740			6,713,281
Property operating expenses – affiliates		2,887,210			2,287,729
General and administrative		1,187,223			694,762
Depreciation		4,829,150			4,095,536
Intangible amortization expense		1,663,256			2,689,992
Property acquisition expenses – affiliates		508,542			53,609
Other property acquisition expenses		237,109			22,976
Total operating expenses		19,105,230			16,557,885
Operating income		4,027,714			2,850,056
Other income (expense):
Interest expense		(4,620,158	)		(4,664,830	)
Deferred financing amortization expense		(288,188	)		(394,589	)
Equity in earnings of real estate ventures		200,447			223,371
Other		(359,471	)		(181,467	)
Net loss		(1,039,656	)		(2,167,459	)
Net loss attributable to the noncontrolling interests in our Operating Partnership		8,584			11,066
Net income attributable to other noncontrolling interests		(2,611	)		(10,831	)
Net loss attributable to Strategic Storage Trust, Inc.	$	(1,033,683	)	$	(2,167,224	)
Net loss per share – basic	$	(0.02	)	$	(0.05	)
Net loss per share – diluted	$	(0.02	)	$	(0.05	)
Weighted average shares outstanding – basic		56,357,846			46,700,850
Weighted average shares outstanding – diluted		56,357,846			46,700,850

See notes to consolidated financial statements.

6

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

	Three Months Ended March 31,
	2014			2013
Net loss	$	(1,039,656	)	$	(2,167,459	)
Other comprehensive income (loss):
Foreign currency translation adjustments		(557,825	)		(346,430	)
Change in fair value of interest rate swap		56,216			65,278
Other comprehensive loss		(501,609	)		(281,152	)
Comprehensive loss		(1,541,265	)		(2,448,611	)
Comprehensive loss allocated to noncontrolling interests:
Comprehensive loss attributable to the noncontrolling interests in our Operating Partnership		13,575			12,414
Comprehensive income attributable to other noncontrolling interests		(2,611	)		(10,831	)
Comprehensive loss attributable to Strategic Storage Trust, Inc.	$	(1,530,301	)	$	(2,447,028	)

See notes to consolidated financial statements.

7

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF EQUITY

(Unaudited)

	Number of Shares		Common Stock Par Value		Additional Paid-in Capital			Distributions			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Total Strategic Storage Trust, Inc. Equity			Noncontrolling Interests			Total
Balance as of December 31, 2013		56,136,435	$	56,136	$	487,032,573		$	(107,090,016	)	$	(69,376,201	)	$	(1,615,743	)	$	309,006,749		$	7,972,157		$	316,978,906
Offering costs		—		—		(4,714	)		—			—			—			(4,714	)		(34,495	)		(39,209	)
Distributions ($0.70 per share)		—		—		—			(9,726,674	)		—			—			(9,726,674	)		—			(9,726,674	)
Distributions to noncontrolling interests		—		—		—			—			—			—			—			(108,530	)		(108,530	)
Issuance of shares for distribution reinvestment plan		440,237		440		4,512,209			—			—			—			4,512,649			—			4,512,649
Reduction of noncontrolling interests through additional investment		—		—		(2,335,549	)		—			—			—			(2,335,549	)		(5,525,882	)		(7,861,431	)
Issuance of limited partnership units in our Operating Partnership		—		—		—			—			—			—			—			2,120,000			2,120,000
Stock based compensation expense		—		—		6,497			—			—			—			6,497			—			6,497
Net loss attributable to Strategic Storage Trust, Inc.		—		—		—			—			(1,033,683	)		—			(1,033,683	)		—			(1,033,683	)
Net loss attributable to the noncontrolling interests		—		—		—			—			—			—			—			(5,973	)		(5,973	)
Foreign currency translation adjustment		—		—		—			—			—			(557,825	)		(557,825	)		—			(557,825	)
Change in fair value of interest rate swap		—		—		—			—			—			56,216			56,216			—			56,216
Balance as of March 31, 2014		56,576,672	$	56,576	$	489,211,016		$	(116,816,690	)	$	(70,409,884	)	$	(2,117,352	)	$	299,923,666		$	4,417,277		$	304,340,943

See notes to consolidated financial statements.

8

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended March 31,
	2014			2013
Cash flows from operating activities:
Net loss	$	(1,039,656	)	$	(2,167,459	)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense		6,780,594			7,180,117
Noncash interest expense		(16,612	)		41,363
Expense related to issuance of restricted stock		6,497			6,373
Equity in income of unconsolidated joint ventures		(199,857	)		(203,478	)
Distributions from unconsolidated joint ventures		236,100			217,172
Foreign currency exchange loss		264,581			111,460
Increase (decrease) in cash from changes in assets and liabilities:
Restricted cash		1,180,627			181,543
Other assets		153,128			342,849
Accounts payable and other accrued liabilities		(745,869	)		(521,653	)
Due to affiliates		(345,943	)		(1,184,689	)
Net cash flows provided by operating activities		6,273,590			4,003,598
Cash flows from investing activities:
Purchase of real estate		(11,585,000	)		—
Additions to real estate facilities		(365,738	)		(1,233,691	)
Development and construction of real estate facilities		(1,447,448	)		(2,624,782	)
Deposits on acquisitions of real estate facilities		(226,283	)		(100,000	)
Additional investment in noncontrolling interests		(5,741,431	)		—
Net cash flows used in investing activities		(19,365,900	)		(3,958,473	)
Cash flows from financing activities:
Proceeds from issuance of secured debt		—			4,489,051
Principal payments on secured debt		(1,076,412	)		(856,809	)
Repayment of secured debt		—			(7,928,861	)
Deferred financing costs		(198,545	)		(132,670	)
Gross proceeds from issuance of common stock		—			12,314,355
Offering costs		(39,209	)		(1,407,123	)
Redemptions of common stock		—			(3,314,294	)
Distributions paid		(5,195,123	)		(4,460,503	)
Distributions paid to noncontrolling interests		(93,807	)		(68,522	)
Escrow receivable		—			405,890
Due to affiliates		54,325			282,715
Net cash flows used in financing activities		(6,548,771	)		(676,771	)
Effect of exchange rate changes on cash		(28,660	)		(31,335	)
Decrease in cash and cash equivalents		(19,669,741	)		(662,981	)
Cash and cash equivalents, beginning of period		39,603,949			13,998,391
Cash and cash equivalents, end of period	$	19,934,208		$	13,335,410
Supplemental cash flow and non-cash transactions:
Cash paid for interest	$	4,709,627		$	4,618,387
Interest capitalized	$	79,150		$	124,791
Distributions payable	$	3,389,509		$	2,805,381
Issuance of shares pursuant to distribution reinvestment plan	$	4,512,649		$	3,521,241
Issuance of limited partnership units in our Operating Partnership in connection with additional investment in noncontrolling interests	$	2,120,000		$	—
Foreign currency translation adjustment – Real estate facilities, net	$	(1,507,440	)	$	(651,557	)

See notes to consolidated financial statements.

9

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Note 1. Organization

Strategic Storage Trust, Inc., a Maryland corporation (the “Company”), was formed on August 14, 2007 under the Maryland General Corporation Law for the purpose of engaging in the business of investing in self storage facilities. The Company’s year-end is December 31. As used in this report, “we” “us” and “our” refer to Strategic Storage Trust, Inc.

Strategic Capital Holdings, LLC, a Virginia limited liability company (our “Sponsor”), is our sponsor. Our Sponsor was formed on July 21, 2004 to engage in private structured offerings of limited partnerships and other entities with respect to the acquisition, management and disposition of commercial real estate assets. Our Sponsor owns a majority of Strategic Storage Holdings, LLC, which is the sole member of both our advisor and our property manager.

Our advisor is Strategic Storage Advisor, LLC, a Delaware limited liability company (our “Advisor”) which was formed on August 13, 2007. Our Advisor is responsible for managing our affairs on a day-to-day basis and identifying and making acquisitions and investments on our behalf under the terms of an advisory agreement we have with our Advisor (our “Advisory Agreement”). Some of the officers of our Advisor are also officers of our Sponsor and of us.

On August 24, 2007, our Advisor purchased 100 shares of our common stock for $1,000 and became our initial stockholder. Our Articles of Amendment and Restatement authorize 700,000,000 shares of common stock with a par value of $0.001 and 200,000,000 shares of preferred stock with a par value of $0.001.

Our operating partnership, Strategic Storage Operating Partnership, L.P., a Delaware limited partnership (our “Operating Partnership”), was formed on August 14, 2007. On August 24, 2007, our Advisor purchased a limited partnership interest in our Operating Partnership for $200,000 and on August 24, 2007, we contributed the initial $1,000 capital contribution we received to our Operating Partnership in exchange for the general partner interest. Our Operating Partnership owns, directly or indirectly through one or more special purpose entities, all of the self storage properties that we have acquired. As of March 31, 2014, we owned 98.87% of the limited partnership interests of our Operating Partnership. The remaining limited partnership interests are owned by our Advisor (0.03%) and unaffiliated third parties (1.10%). As the sole general partner of our Operating Partnership, we have the exclusive power to manage and conduct business of our Operating Partnership. We will conduct certain activities (such as selling packing supplies and locks and renting trucks or other moving equipment) through our taxable REIT subsidiaries (the “TRSs”), which are our wholly-owned subsidiaries.

Our property manager is Strategic Storage Property Management, LLC, a Delaware limited liability company (our “Property Manager”), which was formed in August 2007 to manage our properties. Our Property Manager derives substantially all of its income from the property management services it performs for us.

On March 17, 2008, we began our initial public offering of common stock (our “Initial Offering”). On May 22, 2008, we satisfied the minimum offering requirements of the Initial Offering and commenced formal operations. On September 16, 2011, we terminated the Initial Offering, having sold approximately 29 million shares for gross proceeds of approximately $289 million. On September 22, 2011, we commenced our follow-on public offering of stock for a maximum of 110,000,000 shares of common stock, consisting of 100,000,000 shares for sale to the public (our “Primary Offering”) and 10,000,000 shares for sale pursuant to our distribution reinvestment plan (collectively, our “Offering”). Our Offering terminated on September 22, 2013, having sold approximately 25 million shares for gross proceeds of approximately $256 million. On September 18, 2013, our board of directors amended and restated our distribution reinvestment plan, effective September 28, 2013, to make certain minor revisions related to the closing of our Offering. Following the termination of our Offering, on September 23, 2013, we filed with the SEC a Registration Statement on Form S-3, which incorporated the amended and restated distribution reinvestment plan and registered up to an additional $51.25 million in shares under our amended and restated distribution reinvestment plan (our “DRP Offering”). The DRP Offering may be terminated at any time upon 10 days’ prior written notice to stockholders. As of March 31, 2014, we had sold approximately 54.5 million shares of common stock for gross proceeds of approximately $554 million under all of our offerings.

In connection with the close-down of our Offering and in light of current market conditions, our board of directors has been and is continuing to explore certain strategic alternatives to create stockholder liquidity. Our management and our board of directors are also exploring the possibility of becoming self-administered. However, there can be no assurance that the exploration of any strategic alternatives will result in any particular outcome. In anticipation of potential strategic alternatives, on November 1, 2013, our board of directors approved the termination of our share redemption program, effective December 1, 2013.

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Our dealer manager was Select Capital Corporation, a California corporation (our “Dealer Manager”). Our Dealer Manager was responsible for marketing our shares that were offered pursuant to the Offering. Our chief executive officer, through a wholly-owned limited liability company, owns a 15% non-voting equity interest in our Dealer Manager.

As we accepted subscriptions for shares of our common stock, we transferred substantially all of the net offering proceeds to our Operating Partnership as capital contributions in exchange for additional units of interest in our Operating Partnership. However, we were deemed to have made capital contributions in the amount of the gross offering proceeds received from investors, and our Operating Partnership was deemed to have simultaneously paid the sales commissions and other costs associated with the Offering. In addition, our Operating Partnership is structured to make distributions with respect to limited partnership units (except for Class D units) that will be equivalent to the distributions made to holders of our common stock. In March 2011, we adopted Amendment No. 1 to our Operating Partnership’s First Amended and Restated Limited Partnership Agreement, which established Class D Units, and our Operating Partnership issued approximately 120,000 Class D Units in connection with our acquisition of the Las Vegas VII and Las Vegas VIII properties. The Class D Units have all of the rights, powers, duties and preferences of our Operating Partnership’s other limited partnership units, except that they are subject to a distribution limit and the holders of the Class D Units have agreed to modified exchange rights that prevent them from exercising their exchange rights until the occurrence of a specified event (see Note 8). The distribution for the Class D units was initially zero and remained at zero through March 31, 2014. Finally, a limited partner in our Operating Partnership may later exchange his or her limited partnership units in our Operating Partnership for shares of our common stock at any time after one year following the date of issuance of their limited partnership units, subject to certain restrictions as outlined in the limited partnership agreement. Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as it is acting as our Advisor pursuant to our Advisory Agreement.

As of March 31, 2014, we owned 125 self storage facilities (124 were wholly owned and one was 98% owned by us) located in 17 states (Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Mississippi, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia) and Canada comprising approximately 79,455 units and approximately 10.4 million rentable square feet. As of March 31, 2014, we also had noncontrolling interests in two additional self storage facilities. Additionally, we have an interest in a net leased industrial property in California with 356,000 rentable square feet leased to a single tenant.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC.

Effective September 15, 2009, the ASC was established as the single source of authoritative nongovernmental GAAP. Prior to the issuance of the ASC, all GAAP pronouncements were issued in separate topical pronouncements in the form of statements, staff positions or Emerging Issues Task Force Abstracts, and were referred to as such. While the ASC does not change GAAP, it introduces a new structure and supersedes all previously issued non-SEC accounting and reporting standards. In addition to the ASC, the Company is still required to follow SEC rules and regulations relating to the preparation of financial statements. The Company’s accounting policies are consistent with the guidance set forth by both the ASC and the SEC.

Reclassifications

Certain amounts previously reported in our 2013 financial statements have been reclassified to conform to the fiscal 2014 presentation.

Principles of Consolidation

Our financial statements, the financial statements of our Operating Partnership, including its wholly-owned subsidiaries, the financial statements of Self Storage REIT (REIT I) and Self Storage REIT II (REIT II), and the accounts of variable interest entities (VIEs) for which we are the primary beneficiary are consolidated in the accompanying consolidated financial statements. The portion of these entities not wholly-owned by us is presented as noncontrolling interests both as of and during the periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation.

11

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Consolidation Considerations for Our Investments in Joint Ventures

Current accounting guidance provides a framework for identifying VIEs and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of the VIE in its consolidated financial statements. In general, a VIE is an entity or other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. Generally, a VIE should be consolidated if a party with an ownership, contractual, or other financial interest in the VIE (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities, and noncontrolling interest at fair value and subsequently account for the VIE as if it were consolidated based on majority voting interest. As of March 31, 2014 and December 31, 2013, we had entered into contracts/interests that were deemed to be variable interests in VIEs; those variable interests included both lease agreements and equity investments. We evaluated those variable interests against the criteria for consolidation and determined that we are not the primary beneficiary of certain investments discussed further in the “Equity Investments” section of this note.

As of December 31, 2013, we had an equity interest in a self storage property located in San Francisco, California (“SF property”) which was deemed to be a VIE of which we were the primary beneficiary. As such, the SF property was consolidated in our consolidated financial statements since the date we first acquired our interest in the property through the REIT I merger. In January 2010, we acquired an approximately 2% additional interest in the SF property, bringing our then total interest to approximately 12%. The SF property is owned by a Delaware Statutory Trust (DST), and by virtue of the trust agreement the investors in the trust did not have the direct or indirect ability through voting rights to make decisions about the DST’s significant activities. The REIT I operating partnership (the “REIT I Operating Partnership”) had also entered into a lease agreement for the SF property, in which the REIT I Operating Partnership was the tenant, which exposed it to losses of the VIE that could be significant to the VIE and also allowed it to direct activities of the VIE that determined its economic performance by means of its operation of the leased facility. In connection with the REIT I merger, our Sponsor entered into an agreement to indemnify us for any losses as a result of potential shortfalls in the lease payments required to be made by the REIT I Operating Partnership. Despite such indemnification, we were deemed to be the primary beneficiary, as our Sponsor was not deemed to have a variable interest in the SF property.

During January and February 2014, we acquired an additional approximately 86% of interests in the SF property from approximately 45 third-party sellers bringing our total interest to approximately 98%. Given that we had consolidated the SF property since we acquired the original interest, the current quarter acquisition of interests was treated as an acquisition of noncontrolling interests and the SF property is now consolidated as a majority owned subsidiary whereas we previously consolidated it as a VIE. For additional discussion, see Note 3.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at fair value, the determination if certain entities should be consolidated, the evaluation of potential impairment of long-lived assets and of assets held by equity method investees, and the useful lives of real estate assets and intangibles. Actual results could materially differ from those estimates.

Cash and Cash Equivalents

We consider all short-term, highly liquid investments that are readily convertible to cash with a maturity of three months or less at the time of purchase to be cash equivalents.

We may maintain cash equivalents in financial institutions in excess of insured limits, but believe this risk is mitigated by only investing in or through major financial institutions.

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Restricted Cash

Restricted cash consists primarily of impound reserve accounts for property taxes, insurance and capital improvements in connection with the requirements of certain of our loan agreements.

Real Estate Purchase Price Allocation

We account for acquisitions in accordance with accounting guidance which requires that we allocate the purchase price of the property to the tangible and intangible assets acquired and the liabilities assumed based on estimated fair values. This guidance requires us to make significant estimates and assumptions, including fair value estimates, as of the acquisition date and to adjust those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for an acquisition). Acquisitions of portfolios of facilities are allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size, age, and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values, if available. Allocations to the individual assets and liabilities are based upon comparable market sales information for land and estimates of depreciated replacement cost of equipment, building and site improvements. In allocating the purchase price, we determine whether the acquisition includes intangible assets or liabilities. Substantially all of the leases in place at acquired properties are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date we have not allocated any portion of the purchase price to above or below market leases. We also consider whether in-place, market leases represent an intangible asset. We preliminarily recorded approximately $1.3 million in intangible assets to recognize the value of in-place leases related to our acquisitions during the first three months of 2014. We do not expect, nor to date have we recorded, intangible assets for the value of customer relationships because we will not have concentrations of significant customers and the average customer turnover is fairly frequent. Our acquisition-related transaction costs are required to be expensed as incurred. During the three months ended March 31, 2014 and 2013, we expensed approximately $0.7 million and $0.1 million, respectively, of acquisition related transaction costs.

Should the initial accounting for an acquisition be incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date and we record those adjustments to our financial statements. We apply those measurement period adjustments that we determine to be significant retrospectively to comparative information in our financial statements, potentially including adjustments to interest, depreciation and amortization expense.

Evaluation of Possible Impairment of Long-Lived Assets

Management will continually monitor events and changes in circumstances that could indicate that the carrying amounts of our long-lived assets, including those held through joint ventures, may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of the assets may not be recoverable, we will assess the recoverability of the assets by determining whether the carrying value of the long-lived assets will be recovered through the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived assets to the fair value and recognize an impairment loss. As of March 31, 2014 and December 31, 2013, no impairment losses have been recognized.

Equity Investments

Our investments in unconsolidated real estate joint ventures and VIEs in which we are not the primary beneficiary, where we have significant influence, but not control, are recorded under the equity method of accounting in the accompanying consolidated financial statements. Under the equity method, our investments in real estate ventures are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions. Equity in earnings of real estate ventures is generally recognized based on the allocation of cash distributions upon liquidation of the investment in accordance with the joint venture agreements.

Investments representing passive preferred equity and/or noncontrolling interests are accounted for under the cost method. Under the cost method, our investments in real estate ventures are carried at cost and adjusted for other-than-temporary declines in fair value, distributions representing a return of capital and additional investments.

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Through mergers with REIT I and REIT II in 2009, we acquired preferred equity and/or noncontrolling interests in unconsolidated joint ventures all of which were deemed to be VIEs. We currently have two such interests and have evaluated each against the amended criteria for consolidation and determined that we are not the primary beneficiary, generally due to our inability to direct significant activities that determine the economic performance of the VIE. One of those investments is a passive or limited partner interest in two self storage facilities (such properties are owned by a DST, and by virtue of the related trust agreements, the investors have no direct or indirect ability through voting rights to make decisions about its significant activities) and is therefore accounted for under the cost method; our aggregate investment therein is approximately $0.1 million. Our ownership interest in such investment was approximately 1.49% and our risk of loss is limited to our investment therein.

The other interest is in a net leased industrial property (“Hawthorne property”) in California with 356,000 rentable square feet leased to a single tenant. This investment is accounted for under the equity method of accounting and our risk of loss is limited to our investment, including our maximum exposure under the terms of a debt guarantee. We own a 12% interest in Westport LAX LLC, the joint venture that acquired the Hawthorne property and the carrying value in such investment is approximately $1.3 million. Hawthorne LLC, an affiliate of our Sponsor, owns 78% of Westport LAX LLC, and we have a preferred equity interest in Hawthorne LLC which entitles us to distributions equal to 10% per annum on our investment of approximately $6.9 million and a non-interest bearing receivable of approximately $0.4 million. The preferred equity interest has a redemption date in November 2014, subject to extension at our sole discretion. The preferred equity interest may be called at any time in whole or part by Hawthorne LLC or redeemed at any time by us. The remaining 10% interest in Westport LAX LLC is owned by a third party, who is also the co-manager, along with our Sponsor, of the Hawthorne property. Such third party is the acting property manager and directs the operating activities of the property that determine its economic performance. We, along with other non-affiliated parties, are guarantors on the approximately $18.8 million loan used to secure the Hawthorne property; the loan has a maturity date of August 1, 2020. As of March 31, 2014, our maximum exposure to loss as a result of our involvement with this VIE, consisting of our investment balances and our guarantee of the secured debt, totaled approximately $27.4 million.

Revenue Recognition

Management believes that all of our leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from any long-term operating leases are recognized on a straight-line basis over the term of the lease. The excess of rents received over amounts contractually due pursuant to the underlying leases is included in accounts payable and accrued liabilities in our consolidated balance sheets and contractually due but unpaid rent is included in other assets.

Allowance for Doubtful Accounts

Tenant accounts receivable are reported net of an allowance for doubtful accounts. Management’s estimate of the allowance is based upon a review of the current status of tenant accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future.

Real Estate Facilities

Real estate facilities are recorded at cost. We capitalize costs incurred to develop, construct, renovate and improve properties, including interest and property taxes incurred during the construction period. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use.

Depreciation of Real Property Assets

Our management is required to make subjective assessments as to the useful lives of our depreciable assets. We consider the period of future benefit of the asset to determine the appropriate useful lives.

Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows:

Description	Standard Depreciable Life
Land		Not Depreciated
Buildings		30 to 35 years
Site Improvements		7 to 15 years

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Depreciation of Personal Property Assets

Personal property assets, consisting primarily of furniture, fixtures and equipment are depreciated on a straight-line basis over the estimated useful lives generally ranging from 3 to 5 years, and are included in other assets on our consolidated balance sheets.

Intangible Assets

We have allocated a portion of our real estate purchase price to in-place leases. We are amortizing in-place leases on a straight-line basis over the estimated future benefit period. As of March 31, 2014 and December 31, 2013, accumulated amortization of in-place lease intangibles totaled approximately $46.3 million and $44.6 million, respectively.

Amortization of Deferred Financing Costs

Costs incurred in connection with obtaining financing are deferred and amortized on a straight-line basis over the term of the related loan, which is not materially different than the effective interest method. As of March 31, 2014 and December 31, 2013, accumulated amortization of deferred financing costs totaled approximately $6.1 million and $5.9 million, respectively.

Foreign Currency Translation

For non-U.S. functional currency operations, assets and liabilities are translated to U.S. dollars at current exchange rates. Revenues and expenses are translated at the average rates for the period. All related adjustments are recorded in other comprehensive income (loss) as a separate component of equity. Transactions denominated in a currency other than the functional currency of the related operation are recorded at rates of exchange in effect at the date of the transaction. Gains or losses on foreign currency transactions are recorded in other income (expense). For the three months ended March 31, 2014 and 2013, we recorded a loss of approximately $265,000 and $111,000, respectively.

Accounting for Equity Awards

The cost of restricted stock is required to be measured based on the grant-date fair value and the cost to be recognized over the relevant service period.

Fair Value Measurements

The accounting standard for fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and provides for expanded disclosure about fair value measurements. Fair value is defined by the accounting standard for fair value measurements and disclosures as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels. The following summarizes the three levels of inputs and hierarchy of fair value we use when measuring fair value:

• Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access;

• Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as interest rates and yield curves that are observable at commonly quoted intervals; and

• Level 3 inputs are unobservable inputs for the assets or liabilities that are typically based on an entity’s own assumptions as there is little, if any, related market activity.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level that is significant to the fair value measurement in its entirety.

The accounting guidance for fair value measurements and disclosures provides a framework for measuring fair value and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining fair value of our financial and non-financial assets and liabilities. Accordingly, there can be no assurance that the fair values we present herein are indicative of amounts that may ultimately be realized upon sale or other disposition of these assets.

Financial and non-financial assets and liabilities measured at fair value on a non-recurring basis in our consolidated financial statements consist of real estate and related assets and investments in unconsolidated joint ventures and related liabilities assumed and equity consideration related to our acquisitions. The fair values of these assets, liabilities and equity consideration were determined as of the acquisition dates using widely accepted valuation techniques, including (i) discounted cash flow analysis, which considers, among other things, leasing assumptions, growth rates, discount rates and terminal capitalization rates, (ii) income capitalization approach, which considers prevailing market capitalization rates, and (iii) comparable sales activity. In general, we consider multiple valuation techniques when measuring fair values. However, in certain circumstances, a single valuation technique may be appropriate. All of the fair values of the assets, liabilities and equity consideration as of the acquisition dates were derived using Level 3 inputs.

The carrying amounts of cash and cash equivalents, customer accounts receivable, other assets, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates approximate fair value because of the relatively short-term nature of these instruments.

The table below summarizes our fixed rate notes payable at March 31, 2014. 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 the fixed rate notes payable 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. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange.

	March 31, 2014				December 31, 2013
	Fair Value		Carrying Value		Fair Value		Carrying Value
Fixed Rate Secured Debt	$	311,141,708	$	299,850,852	$	311,362,132	$	300,894,201

As of March 31, 2014, we had an interest rate swap on one of our loans (See Notes 5 and 6). The valuation of this instrument was determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

To comply with GAAP, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of March 31, 2014, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. As of March 31, 2014, we had approximately $247,000 of Level 2 derivatives (interest rate swap) classified in accounts payable and accrued liabilities on our consolidated balance sheet.

Derivative Instruments and Hedging Activities

The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows or other types of forecasted transactions are considered cash flow hedges.

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in the consolidated statements of operations. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income, outside of earnings and subsequently reclassified to earnings when the hedged transaction affects earnings.

Noncontrolling Interest in Consolidated Entities

We account for the noncontrolling interest in our Operating Partnership in accordance with amended accounting guidance. Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partner, our Operating Partnership, including its wholly-owned subsidiaries, is consolidated with the Company and the limited partner interest is reflected as a noncontrolling interest in the accompanying consolidated balance sheets. In addition, we account for the noncontrolling interest in the SF property in accordance with the amended accounting guidance. The noncontrolling interests shall continue to be attributed their share of income and losses, even if that attribution results in a deficit noncontrolling interest balance.

Income Taxes

We made an election to be taxed as a Real Estate Investment Trust (“REIT”), under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with our taxable year ended December 31, 2008. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the REIT’s ordinary taxable income to stockholders. As a REIT, we generally will not be subject to Federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will then be subject to Federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for Federal income tax purposes for four years following the year during which qualification is lost unless the IRS grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we will be organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for Federal income tax purposes. We have concluded that there are no significant uncertain tax positions requiring recognition or disclosure in our consolidated financial statements.

Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and Federal income and excise taxes on our undistributed income.

We have filed an election to treat the TRSs as taxable REIT subsidiaries. In general, the TRSs may perform additional services for our customers and generally may engage in any real estate or non-real estate related business. The TRSs are subject to corporate Federal and state income tax. The TRSs follow accounting guidance which requires the use of the asset and liability method. Deferred income taxes will represent the tax effect of future differences between the book and tax bases of assets and liabilities.

Per Share Data

Basic earnings per share attributable for all periods presented are computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted earnings per share are computed by dividing net income (loss) by the weighted average number of shares outstanding, including all restricted stock grants as though fully vested. For each of the three months ended March 31, 2014 and 2013, 6,250 shares, of unvested restricted stock were not included in the diluted weighted average shares as such shares were antidilutive.

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Note 3. Southwest Colonial, DST and USA SF Self Storage, DST Acquisitions

Southwest Colonial, DST

During the fourth quarter of 2013, we purchased beneficial interests (the “Colonial Interests”) in Southwest Colonial, DST (“Colonial DST”), a Delaware statutory trust sponsored by our Sponsor, from approximately 50 third-party sellers pursuant to separate purchase agreements with each seller. None of the purchases were contingent upon any of the others. Such purchases were fully completed on November 1, 2013. Following the purchase of these interests, we owned 100% of the interests in Colonial DST. The agreed upon purchase price of the Colonial Interests acquired, based on the aggregate appraised value of the five properties owned by Colonial DST was approximately $27.9 million. Consideration provided consisted of approximately $9.0 million in cash along with the issuance of approximately 151,300 limited partnership units in our Operating Partnership and the assumption of an approximately $16.7 million bank loan held by Colonial DST (the “John Hancock Loan”). Colonial DST leased its properties to a master tenant (the “Colonial Tenant”) on a triple-net basis pursuant to a master lease (the “Colonial Lease”). The Colonial Tenant is owned by affiliates of our Sponsor. We and our Sponsor, along with its affiliates, have agreed to assign 100% of the economic benefits and obligations from these properties to us in exchange for indemnification by us for any potential liability incurred subsequent to the assignment by the Sponsor in connection with the Colonial Lease.

We incurred acquisition fees due to our Advisor of approximately $340,000 in connection with these acquisitions.

Colonial DST owns five self storage facilities located in Texas with an aggregate of approximately 2,805 units and 392,000 rentable square feet. The properties owned by Colonial DST are subject to the John Hancock Loan, which had an aggregate principal balance of approximately $16.7 million as of the acquisition date. The loan bears a fixed interest rate of 6.36% and had an original term of ten years, maturing in June 2018. The loan is secured only by the five properties owned by Colonial DST that obtained such loan.

USA SF Self Storage, DST

During January and February 2014, we through an indirect wholly-owned subsidiary, closed on the purchase of an additional approximately 86% in beneficial interests (the “SF Interests”) in USA SF Self Storage, DST (the “SF DST”), a Delaware Statutory Trust sponsored by our Sponsor, from approximately 45 third-party sellers pursuant to separate purchase agreements with each seller. None of the purchases were contingent upon any of the others. The agreed upon purchase price of the property relating to the SF Interests acquired was approximately $20 million.

The acquisition brought our ownership of the SF DST to approximately 98%, including approximately 12% that we acquired previously in unrelated transactions (See Note 2). The consideration provided was primarily in the form of approximately $5.7 million in cash, an assumption of the pro rata debt of approximately $10.2 million and the issuance of approximately 245,000 limited partnership units in our Operating Partnership. We paid our Advisor approximately $0.2 million in acquisition fees in connection with these acquisitions.

SF DST, owns a self storage facility located in San Francisco with an aggregate of approximately 1,120 units and 76,000 rentable square feet.

SF DST leases its property to a master tenant (the “REIT I Tenant”) on a triple-net basis pursuant to a master lease (the “San Francisco Lease”) that had an original term of ten years and will expire on December 19, 2016. The REIT I Tenant is a wholly-owned subsidiary of us. Under the San Francisco Lease, the REIT I Tenant is required to pay a stated monthly rent equivalent to the monthly debt service payment under the loan, which is paid directly to the lender on behalf of the SF DST, a monthly stated rent, and certain annual bonus rent per the terms of the San Francisco Lease. As a SF DST interest holder, we are entitled to our pro rata share of the total rent less the debt service under the loan.

As of March 31, 2014, the SF DST had net real estate assets of approximately $16.5 million, approximately $10.1 million of secured debt and approximately $0.1 million of noncontrolling interest related to this entity. Such assets are only available to satisfy the obligations of the SF DST. The lenders of the secured debt have no recourse to other Company assets.

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Note 4. Real Estate Facilities

The following summarizes our activity in real estate facilities during the three months ended March 31, 2014:

Real estate facilities
Balance at December 31, 2013	$	694,138,787
Facility acquisitions		10,305,000
Impact of foreign exchange rate changes		(1,507,440	)
Improvements and additions		317,331
Balance at March 31, 2014	$	703,253,678
Accumulated depreciation
Balance at December 31, 2013	$	(46,432,155	)
Depreciation		(4,669,073	)
Balance at March 31, 2014	$	(51,101,228	)

The following table summarizes the preliminary purchase price allocation for our acquisitions for the three months ended March 31, 2014:

Property	Acquisition Date	Real Estate Assets		Intangibles		Total(1)		2014 Revenue(2)		2014 Property Operating Income(2)(3)
Hampton II – VA	3/5/2014	$	5,930,000	$	770,000	$	6,700,000	$	52,432	$	32,266
Chandler – AZ	3/27/2014		4,375,000		510,000		4,885,000		6,114		3,422
Total		$	10,305,000	$	1,280,000	$	11,585,000	$	58,546	$	35,688

⁽¹⁾  The allocations noted above are based on a preliminary determination of the fair value of the total consideration provided. Such valuations may change as we complete our purchase price accounting.

⁽²⁾  The operating results of the facilities acquired above have been included in the Company’s statement of operations since their respective acquisition date.

⁽³⁾  Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization and acquisition expenses.

The purchase price allocations included above are preliminary and therefore, subject to change upon the completion of our analysis of appraisals and other information related to the acquisitions. We anticipate finalizing the purchase price allocations by December 31, 2014, as further evaluations are completed and additional information is received from third parties.

The above properties were acquired from unaffiliated third parties and were purchased entirely with cash. Total acquisition fees paid to our Advisor for the three months ended March 31, 2014 were approximately $0.5 million.

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Note 5. Secured Debt

The Company’s secured debt is summarized as follows:

	Carrying value as of:
Encumbered Property	March 31, 2014		December 31, 2013		Interest Rate			Maturity Date
Montgomery	$	2,673,161	$	2,693,364		6.42	%		7/1/2016
Seabrook		4,424,518		4,444,137		5.73	%		1/1/2016
Greenville		2,217,170		2,226,986		5.65	%		3/1/2016
Kemah		8,698,412		8,732,981		6.20	%		6/1/2016
Memphis		2,454,753		2,465,045		5.67	%		12/1/2016
Tallahassee		7,420,765		7,446,178		6.16	%		8/1/2016
Houston		1,970,954		1,981,095		5.67	%		2/1/2017
San Francisco		10,220,127		10,256,163		5.84	%		1/1/2017
Lake Forest		18,000,000		18,000,000		6.47	%		10/1/2017
Las Vegas II		1,506,686		1,511,958		5.72	%		6/1/2017
Pearland		3,426,920		3,438,473		5.93	%		7/1/2017
Daphne		1,338,755		1,381,213		5.47	%		8/1/2020
Mesa		2,949,918		2,968,060		5.38	%		4/1/2015
Riverdale (1)		4,800,000		4,800,000		4.00	%		5/14/2014
Prudential Portfolio Loan (2) (3)		30,914,630		31,044,708		5.42	%		9/5/2019
Dufferin – Toronto – Ontario, Canada (4)		5,891,665		6,144,911		5.22	%		5/15/2014
Citi Loan (5)		27,971,458		28,077,873		5.77	%		2/6/2021
Bank of America Loan – 1 (6)		4,300,785		4,321,842		5.18	%		11/1/2015
Bank of America Loan – 2 (7)		6,516,842		6,548,748		5.18	%		11/1/2015
Bank of America Loan – 3 (8)		11,713,354		11,770,704		5.18	%		11/1/2015
Prudential – Long Beach (9)		6,506,700		6,533,640		5.27	%		9/5/2019
SF Bay Area – Vallejo (10)		4,269,522		4,295,098		6.04	%		6/1/2014
Citi Las Vegas Loan (11)		7,404,539		7,434,590		5.26	%		6/6/2021
ING Loan (12)		21,182,173		21,265,500		5.47	%		7/1/2021
Ladera Ranch		6,656,252		6,691,304		5.84	%		6/1/2016
Las Vegas V		1,618,517		1,628,783		5.02	%		7/1/2015
Mississauga (13) – Ontario, Canada		6,539,491		6,763,769		5.00	%		10/31/2014
Chantilly (14)		3,407,609		3,421,797		4.75	%		6/6/2022
Brampton (15) – Ontario, Canada		6,267,916		6,482,879		5.25	%		6/30/2016
Citi Stockade Loan – 1 (16)		18,200,000		18,200,000		4.60	%		10/1/2022
KeyBank CMBS Loan (17)		30,840,245		30,960,278		4.65	%		11/1/2022
Citi Stockade Loan – 2 (18)		19,362,500		19,362,500		4.61	%		11/6/2022
Bank of America Loan – 4 (19)		6,374,856		6,394,362		6.33	%		10/1/2017
Citi SF Bay Area – Morgan Hill Loan (20)		3,000,000		3,000,000		4.08	%		3/6/2023
KeyBank Revolver (21)		71,000,000		71,000,000		1.66	%		10/25/2016
John Hancock Loan (22)		16,611,506		16,682,984		6.36	%		6/1/2018
Net fair value adjustment		897,225		913,837
Total secured debt	$	389,549,924	$	391,285,760

⁽¹⁾  On April 28, 2014, this loan was repaid in full and the related property is now encumbered under the KeyBank Revolver (see Note 11).

⁽²⁾  This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Manassas, Marietta, Erlanger, Pittsburgh, Weston, Fort Lee, Oakland Park, Tempe, Phoenix II, Davie and Las Vegas I). Each of the individual loans is cross-collateralized by the other ten.

⁽³⁾  Ten of the loans in this portfolio loan bear an interest rate of 5.43%, and the remaining loan bears an interest rate of 5.31%. The weighted average interest rate of this portfolio is 5.42%.

⁽⁴⁾  On January 12, 2011, we encumbered the Dufferin property with a Canadian dollar denominated loan which bears interest at the bank’s floating rate plus 3.0% (subject to a reduction in certain circumstances). The rate in effect at March 31, 2014 was 5.22%. This loan was refinanced in May 2014, thereby extending the maturity date to April 15, 2017 (see Note 11).

20

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

⁽⁵⁾  This portfolio loan encumbers 11 properties (Biloxi, Gulf Breeze I, Alpharetta, Florence II, Jersey City, West Mifflin, Chicago – 95th St., Chicago – Western Ave., Chicago – Ogden Ave., Chicago – Roosevelt Rd. and Las Vegas IV). The net book value of the encumbered properties as of March 31, 2014 was approximately $49.9 million. Such amounts are only available to satisfy the obligations of this loan.

⁽⁶⁾  This loan encumbers the Lawrenceville I and II properties.

⁽⁷⁾  This loan encumbers the Concord, Hickory and Morganton properties.

⁽⁸⁾  This loan encumbers the El Paso II, III, IV & V properties as well as the Dallas property.

⁽⁹⁾  This loan is cross-collateralized by the 11 properties discussed in footnote (2) to this table.

⁽¹⁰⁾  On May 1, 2014, this loan was repaid in full and the related property is now encumbered under the KeyBank Revolver (see Note 11).

⁽¹¹⁾  This loan encumbers the Las Vegas VII and Las Vegas VIII properties. The net book value of the encumbered properties as of March 31, 2014 was approximately $9.0 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹²⁾  This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Peachtree City, Buford, Jonesboro, Ellenwood, Marietta II, Collegeville, Skippack, Ballston Spa, Trenton, Fredericksburg and Sandston). Each of the individual loans had an original term of 30 years and matures on July 1, 2041. ING has the option to require payment of the loan in full every five years beginning on July 1, 2021.

⁽¹³⁾  In December 2011, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank’s floating rate, plus 2% (totaling 5.0% as of March 31, 2014).

⁽¹⁴⁾  The net book value of the Chantilly property as of March 31, 2014 was approximately $6.8 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁵⁾  In September 2012, we entered into a Canadian dollar denominated construction loan with an aggregate potential commitment amount of approximately $9.2 million. Such loan bears interest at the bank’s floating rate, plus 2.25% (totaling 5.25% as of March 31, 2014).

⁽¹⁶⁾  This portfolio loan encumbers 10 properties (Savannah I, Savannah II, Columbia, Lexington I, Stuart I, Lexington II, Stuart II, Bluffton, Wilmington Island and Myrtle Beach). The net book value of the encumbered properties as of March 31, 2014 was approximately $34.2 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁷⁾  This portfolio loan encumbers nine properties (Los Angeles—La Cienega, Las Vegas III, Las Vegas VI, Hampton, SF Bay Area—Gilroy, Toms River, Crescent Springs, Florence and Walton). The net book value of the encumbered properties as of March 31, 2014 was approximately $41.1 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁸⁾  This portfolio loan encumbers six properties (Mt. Pleasant I, Charleston I, Charleston II, Mt. Pleasant II, Charleston III, and Mt. Pleasant III). The net book value of the encumbered properties as of March 31, 2014 was approximately $36.6 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁹⁾  This loan encumbers the Ridgeland and Canton properties.

⁽²⁰⁾  This loan encumbers the Morgan Hill property. The net book value of the encumbered property as of March 31, 2014 was approximately $5.2 million. Such amount is only available to satisfy the obligations of this loan.

⁽²¹⁾  On October 28, 2013, through our Operating Partnership and certain property-owning special purpose entities wholly-owned by our Operating Partnership, we entered into the KeyBank Revolver, which matures on October 25, 2016. Such loan encumbers the Homeland Portfolio properties, the Knoxville Portfolio properties and five other previously unencumbered properties (Gulf Breeze II, El Paso I, Toms River II, North Charleston and Phoenix I). This loan is a LIBOR based variable rate loan, and such rate is based on 30-day LIBOR, which including the applicable spread equaled an interest rate of 1.66% as of March 31, 2014. The interest rate swap with a notional amount of $45 million that was originally entered into in connection with the Second Restated KeyBank Loan remains outstanding; inclusive of the interest rate swap, the effective fixed interest rate as of March 31, 2014 was approximately 2.4%. For additional discussion, see “KeyBank Revolver” below.

⁽²²⁾  This loan encumbers the Midland I, Coppell, Midland II, Arlington and Weatherford properties.

21

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

As of March 31, 2014 and December 31, 2013, the Company’s secured promissory notes shown above were secured by the properties shown above, which properties had net book values of approximately $645 million and $647 million, respectively.

KeyBank Revolver

On October 28, 2013, we, through our Operating Partnership and certain property-owning special purpose entities wholly-owned by our Operating Partnership (collectively with the Operating Partnership, the “Borrower”), obtained a revolving loan from KeyBank, National Association (“KeyBank”) for borrowings up to $75 million (as amended, the “KeyBank Revolver”). The initial amount funded at closing was $71 million (the “Initial Draw”), $45 million of which was used to pay off the outstanding principal amount under the Second Restated KeyBank Loan, and thereby release the 12 properties comprising the Homeland Portfolio that were serving as collateral for the Second Restated KeyBank Loan (discussed below), and approximately $26 million of which was used to partially fund the acquisition of three properties in Knoxville, Tennessee and one in Montgomery, Alabama (the “Knoxville Portfolio”). It is anticipated that future draws on the KeyBank Revolver will be used to help fund our future acquisitions of self storage facilities and for other general corporate purposes.

During the first quarter of 2014 the aggregate commitment under the Keybank Revolver was increased from $75 million to $100 million. In addition, there is now a total of four participating lenders.

The KeyBank Revolver has an initial term of three years, maturing on October 25, 2016, with two one-year extension options subject to certain conditions outlined further in the credit agreement for the KeyBank Revolver (the “Credit Agreement”). Payments due pursuant to the KeyBank Revolver are interest-only for the life of the loan. The KeyBank Revolver bears interest at the Borrower’s option of either the Alternate Base Rate plus the Applicable Rate or the Adjusted LIBO Rate plus the Applicable Rate (each as defined in the Credit Agreement). The Applicable Rate will vary based on our total leverage ratio. We have elected the Adjusted LIBO Rate plus the Applicable Rate to apply to our balance outstanding. The $45 million interest rate swap originally purchased in connection with the Second Restated KeyBank Loan will remain in place through December 24, 2014, thus fixing the rate on $45 million at approximately 2.4%, assuming the Applicable Rate remains constant.

During the first 18 months of the KeyBank Revolver, we may request increases in the aggregate commitment up to a maximum of $200 million in minimum increments of $10 million. We may also reduce the aggregate commitment in minimum increments of $10 million during the life of the loan, provided, however, that at no time will the aggregate commitment be reduced to less than $25 million unless the KeyBank Revolver is paid in full.

The KeyBank Revolver is secured by cross-collateralized first mortgage liens or first lien deeds of trust on the properties in the Homeland Portfolio, the properties in the Knoxville Portfolio, and five of our other self storage properties, and is cross-defaulted to any recourse debt of $25 million or greater in the aggregate or non-recourse debt of $75 million or greater in the aggregate. The KeyBank Revolver may be prepaid or terminated at any time without penalty, provided, however, that KeyBank and any other lender shall be indemnified for any breakage costs associated with any LIBOR borrowings. Pursuant to that certain guaranty dated October 28, 2013 in favor of KeyBank, we serve as a guarantor of all obligations due under the KeyBank Revolver.

Under certain conditions, the Borrower may cause the release of one or more of the properties serving as collateral for the KeyBank Revolver in connection with a full or partial pay down of the KeyBank Revolver, provided that there shall at all times be at least four properties serving as collateral.

The KeyBank Revolver contains a number of other customary terms and covenants, including the following (capitalized terms are as defined in the Credit Agreement):

• the aggregate borrowing base availability under the KeyBank Revolver is limited to the lesser of: (1) 60% of the Pool Value of the properties in the collateral pool, or (2) an amount that would provide a minimum Debt Service Coverage Ratio of no less than 1.35 to 1.0; and

• we must meet the following financial tests, calculated as of the close of each fiscal quarter: (1) a Total Leverage Ratio of no more than 60%; (2) a Tangible Net Worth of at least $250 million; (3) an Interest Coverage Ratio of no less than 1.85 to 1.0; (4) a Fixed Charge Ratio of no less than 1.6 to 1.0; (5) a ratio of varying rate Indebtedness to total Indebtedness not in excess of 30%; (6) a Loan to Value Ratio of not greater than sixty percent (60%); and (7) a Debt Service Coverage Ratio of not less than 1.35 to 1.0.

22

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Second Restated KeyBank Loan

On December 27, 2011, in connection with the acquisition of the Homeland Portfolio (an $80 million portfolio of 10 properties in Atlanta, Georgia and two properties in Jacksonville, Florida), our Operating Partnership and various property owning SPEs entered into a second amended and restated secured credit facility with KeyBank with total commitments of $82 million (such facility replaced our then existing $30 million Restated KeyBank Credit Facility, which had approximately $20 million outstanding before the purchase of the Homeland Portfolio) and we drew down an additional approximately $56.6 million thereunder. On January 12, 2012, we drew down an additional approximately $5.4 million in connection with the repayment of the previously outstanding debt on our Crescent Springs, Florence and Walton properties, bringing the total amount outstanding to $82 million. Such credit facility, as amended (the “Second Restated KeyBank Loan”) was converted from a revolving credit facility to a term loan on August 15, 2012 and the principal balance was reduced on October 10, 2012, from $82 million to $55 million, through the use of the majority of the proceeds from the KeyBank CMBS Loan.

Beginning on November 30, 2012, we were required to make monthly payments in the amount of $1,666,667 until the outstanding principal balance of the Second Restated KeyBank Loan was reduced to $45 million, which occurred on April 5, 2013. The remaining $45 million was due to mature on December 24, 2014, subject to two, one-year extension options (subject to the fulfillment of certain conditions), and required monthly interest-only payments.

We were required to purchase an interest rate swap with a notional amount of $45 million, which required us to pay an effective fixed interest rate of approximately 5.41% on the hedged portion of the debt. For the remaining amount outstanding, under the terms of the Second Restated KeyBank Loan, our Operating Partnership had the option of selecting one of three variable interest rates which had applicable spreads.

The Second Restated KeyBank Loan was paid in full on October 28, 2013 with proceeds from the KeyBank Revolver.

The following table presents the future principal payment requirements on outstanding secured debt as of March 31, 2014:

2014	$	9,761,651
2015		31,013,997
2016		123,634,534
2017		49,415,409
2018		19,074,211
2019 and thereafter		155,752,897
Total payments (1)		388,652,699
Unamortized fair value adjustment		897,225
Total	$	389,549,924

(1) This table reflects both the revised terms of the Dufferin – Toronto Loan and the refinance of the Riverdale and SF Bay Area – Vallejo loans through the KeyBank Revolver. See Note 11 for additional discussion.

We record the amortization of debt premiums related to fair value adjustments to interest expense. The weighted average interest rate of the Company’s fixed rate debt as of March 31, 2014 was approximately 5.4%.

Note 6. Derivative Instruments – Cash Flow Hedge of Interest Rate Risk

Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

23

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

The effective portion of the change in the fair value of the derivative designated and that qualifies as a cash flow hedge is recorded in accumulated other comprehensive income (“AOCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2014 and 2013, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings, of which there were none during the three months ended March 31, 2014 and 2013.

Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. Over the next 12 months, we estimate that approximately $247,000 will be reclassified as an increase to interest expense.

As of March 31, 2014, we had one derivative outstanding, which was an interest rate derivative that was designated as a cash flow hedge of interest rate risk:

Interest Rate Derivative	Number of Instruments		Notional
Interest Rate Swap		1	$	45,000,000

The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheet as of March 31, 2014 and December 31, 2013:

	As of March 31, 2014			As of December 31, 2013
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate derivatives
Assets	Other assets	$	—	Other assets	$	—
Liabilities	Accounts payable and accrued liabilities	$	246,835	Accounts payable and accrued liabilities	$	303,051

We have agreements with our derivative counterparty that contain a provision where if we either default or are capable of being declared in default, including default where repayment of the indebtedness has not been accelerated, on any of our indebtedness, then we could also be declared in default on our derivative obligations.

Certain of our agreements with our derivative counterparties contain provisions where if a specified event or condition (Credit Event Upon Merger) occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument. As of March 31, 2014, we had not posted any collateral.

As of March 31, 2014, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was approximately $253,000. If we had breached any of these provisions at March 31, 2014, we could have been required to settle our obligations under the agreements at their termination value of approximately $253,000.

Note 7. Related Party Transactions

Fees to Affiliates

Our Advisory Agreement with our Advisor and dealer manager agreement (“Dealer Manager Agreement”) with our Dealer Manager entitled our Advisor and our Dealer Manager to specified fees upon the provision of certain services with regard to the Offering, as well as reimbursement for organizational and offering costs incurred by our Advisor on our behalf and entitles our Advisor to specified fees upon the investment of funds in real estate properties, among other services and reimbursement of certain costs and expenses incurred by our Advisor in providing services to us.

24

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Advisory Agreement

We currently do not have any employees. Our Advisor is primarily responsible for managing our business affairs and carrying out the directives of our board of directors. Our Advisor receives various fees and expenses under the terms of our Advisory Agreement. Our Advisory Agreement also requires our Advisor to reimburse us to the extent that offering expenses, including sales commissions, dealer manager fees and organization and offering expenses, are in excess of 15% of gross proceeds from the Offering. Subsequent to the termination of our Offering on September 22, 2013, we have determined that these expenses did not exceed 15% of gross proceeds from the Offering. In addition, certain organization and offering costs of the Offering were paid by our Advisor on our behalf and reimbursed to our Advisor from the proceeds of the Offering. Organization and offering costs consisted of all expenses (other than sales commissions and the dealer manager fee) paid by us in connection with the Offering, including our legal, accounting, printing, mailing and filing fees, charges of our escrow holder and other accountable offering expenses, including, but not limited to, (i) amounts to reimburse our Advisor for all marketing related costs and expenses such as salaries and direct expenses of employees of our Advisor and its affiliates in connection with registering and marketing our shares; (ii) technology costs associated with the Offering; (iii) our costs of conducting our training and education meetings; (iv) our costs of attending retail seminars conducted by participating broker-dealers; and (v) payment or reimbursement of bona fide due diligence expenses. Our Advisor must reimburse us within 60 days after the end of the month which the Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions and dealer manager fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering. Subsequent to the termination of our Offering on September 22, 2013, we have determined that organization and offering costs did not exceed 3.5% of the gross proceeds from the Primary Offering.

Our Advisor receives acquisition fees equal to 2.5% of the contract purchase price of each property we acquire plus reimbursement of any acquisition expenses the Advisor incurs. Our Advisor also receives a monthly asset management fee equal to one-twelfth of 1.0% of the average of the aggregate asset value, as defined, of our assets, excluding those properties acquired through our mergers with REIT I and REIT II and the SS I, DST, Madison DST, Colonial DST and SF DST acquisitions; provided, however, that if the average of the aggregate asset value, as defined, of our assets exceeds $500 million, the monthly asset management fee shall be reduced to one-twelfth of 0.75% of the average of the aggregate asset value, as defined, of those assets exceeding $500 million unless our modified funds from operations (as defined in the Advisory Agreement), including payment of the fee, is greater than 100% of our distributions in any month (see footnote (2) in the following table for a discussion of the Advisor’s permanent waiver of certain asset management fees). The monthly asset management fees for our properties acquired through our mergers with REIT I and REIT II and the SS I, DST, Madison DST, Colonial DST and SF DST acquisitions are equal to 2.0% of the gross revenues from the properties and are paid to affiliates of our Sponsor. Under our Advisory Agreement, and our articles of incorporation, as amended, our Advisor may receive disposition fees in an amount equal to the lesser of (i) 3.0% of the contract sale price for each property we sell, or (ii) one-half of the competitive real estate commission, as long as our Advisor provides substantial assistance in connection with the sale. The disposition fees paid to our Advisor are subordinated to the receipt of our stockholders of a 6% cumulative, non-compounded, annual return on such stockholders’ invested capital. The total real estate commissions paid (including disposition fee paid to our Advisor) may not exceed the lesser of a competitive real estate commission or an amount equal to 6.0% of the contract sale price of the property.

Our Advisory Agreement provides for reimbursement of our Advisor’s direct and indirect costs of providing administrative and management services to us (see footnote (1) in the following table for a discussion of the Advisor’s permanent waiver of certain reimbursements for the three months ended March 31, 2013). Beginning October 1, 2009 (four fiscal quarters after the acquisition of our first real estate asset), our Advisor must pay or reimburse us the amount by which our aggregate annual operating expenses, as defined, exceed the greater of 2% of our average invested assets or 25% of our net income, as defined, unless a majority of our independent directors determine that such excess expenses were justified based on unusual and non-recurring factors. For any fiscal quarter for which total operating expenses for the 12 months then ended exceed the limitation, we will disclose this fact in our next quarterly report or within 60 days of the end of that quarter and send a written disclosure of this fact to our stockholders. In each case, the disclosure will include an explanation of the factors that the independent directors considered in arriving at the conclusion that the excess expenses were justified. For the three months ended March 31, 2014, our aggregate annual operating expenses, as defined, did not exceed the thresholds described above.

On September 27, 2012, we entered into a Second Amended and Restated Advisory Agreement (the “Amended Advisory Agreement”) with our Advisor. The material terms of the Advisory Agreement were not changed. However, certain provisions were added, the most significant of which was a provision restricting us, during the term of the Amended Advisory Agreement and for a period of two years after the termination of the Amended Advisory Agreement, from soliciting or hiring any employee of, or person performing services on behalf of, our Advisor.

25

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

On March 28, 2014, in a series of related transactions, we entered into an amended and restated advisory agreement (the “Third Amended and Restated Advisory Agreement”) and an amended and restated limited partnership agreement (the “Second Amended and Restated Limited Partnership Agreement”), and REIT I and REIT II entered into amendments to their respective operating partnership agreements, (the “REIT I OP Agreement Amendment” and the “REIT II OP Agreement Amendment,” respectively). REIT I and REIT II are each wholly-owned by our Operating Partnership.

The Third Amended and Restated Advisory Agreement with our Advisor and our Operating Partnership amended and superseded the Second Amended and Restated Advisory Agreement. Pursuant to the Third Amended and Restated Advisory Agreement, provisions related to various subordinated fees that would be due to our Advisor upon the occurrence of certain events have been removed from such agreement and are now included in the Second Amended and Restated Limited Partnership Agreement of our Operating Partnership. Additionally, our Operating Partnership is now a party to the Third Amended and Restated Advisory Agreement and has provided customary representations and warranties, and certain provisions of the Second Amended and Restated Limited Partnership Agreement are incorporated into the Third Amended and Restated Advisory Agreement.

The Second Amended and Restated Limited Partnership Agreement with our Operating Partnership and our Advisor amended and superseded the First Amended and Restated Limited Partnership Agreement. Pursuant to the Second Amended and Restated Limited Partnership Agreement, our Advisor and the advisors to REIT I and REIT II have each been granted a special limited partnership interest in our Operating Partnership and are each a party to the Second Amended and Restated Limited Partnership Agreement. In addition, provisions related to various subordinated fees that would be due to our Advisor upon the occurrence of certain events have been included in such agreement and are payable as distributions pursuant to our Advisor’s special limited partnership interest. After giving effect to the Second Amended and Restated Limited Partnership Agreement, the REIT I OP Agreement Amendment, and the REIT II OP Agreement Amendment, our Advisor and the advisors to REIT I and REIT II may be entitled to receive various subordinated distributions, each of which are outlined further in the Second Amended and Restated Limited Partnership Agreement, the REIT I OP Agreement Amendment, and the REIT II OP Agreement Amendment, if we (1) list our shares of common stock on a national exchange, (2) terminate our advisory agreement (other than a voluntary termination by mutual assent), (3) liquidate our portfolio, or (4) enter into an Extraordinary Transaction, as defined in such agreements. In the case of each of the foregoing distributions, our Advisor’s receipt of the distribution is subordinate to return of capital to our stockholders plus at least a 6% cumulative, non-compounded return, and our Advisor’s share of the distribution is 5%, 10%, or 15%, depending on the return level to our stockholders. The receipt of the distribution by the advisors to REIT I and REIT II is subordinate to return of capital to the original REIT I and REIT II stockholders plus at least a 7% cumulative, non-compounded return, and such advisors’ share of the distribution is 15%. In addition, our Advisor may be entitled to a one-time cash distribution in the event that we (1) list our shares of common stock on a national exchange, (2) liquidate our portfolio, or (3) enter into an Extraordinary Transaction resulting in a return to our stockholders in excess of an amount per share that will be determined by our independent directors. Such one-time cash distribution will be paid as part of the complete redemption of our Advisor’s special limited partnership interest in our Operating Partnership and will be up to the aggregate amount of all unreturned and unreimbursed capital invested by our Advisor and its affiliates in us, our Operating Partnership, our Advisor and affiliates, relating in any way to our business or our Operating Partnership’s business or any offering.

Dealer Manager Agreement

During the term of our Offering, our Dealer Manager received a sales commission of up to 7.0% of gross proceeds from sales in the Primary Offering and a dealer manager fee equal to up to 3.0% of gross proceeds from sales in the Primary Offering under the terms of our Dealer Manager Agreement. Our Dealer Manager entered into participating dealer agreements with certain other broker-dealers which authorized them to sell our shares. Upon sale of our shares by such broker-dealers, our Dealer Manager re-allowed all of the sales commissions paid in connection with sales made by these broker-dealers. Our Dealer Manager was also permitted to re-allow to these broker-dealers a portion of the 3.0% dealer manager fee as marketing fees, reimbursement of certain costs and expenses of attending training and education meetings sponsored by our Dealer Manager, payment of attendance fees required for employees of our Dealer Manager or other affiliates to attend retail seminars and public seminars sponsored by these broker-dealers, or to defray other distribution related expenses. Our Dealer Manager also received reimbursement of bona fide due diligence expenses; however, to the extent these due diligence expenses cannot be justified, any excess over actual due diligence expenses will be considered underwriting compensation subject to a 10% FINRA limitation and, when aggregated with all other non-accountable expenses, may not exceed 3% of gross offering proceeds from sales in the Primary Offering. The Dealer Manager Agreement terminated upon the termination of our Offering.

26

STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Our chief executive officer owns, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer Manager.

Property Management Agreement

Our Property Manager receives a fee for its services in managing our properties, generally equal to 6% of the gross revenues from the properties plus reimbursement of the direct costs of managing the properties under our property management agreement. In the event that our Property Manager assists with the development or redevelopment of a property, we may pay a separate market-based fee for such services. As a condition of the REIT II merger transaction, our Property Manager agreed to waive the monthly property management fees for the REIT II properties until the FFO, as defined in the merger agreement, of those properties reached $0.70 per share (which threshold was met in the three months ended March 31, 2013). During the three months ended March 31, 2014 and 2013, property management fees of approximately $65,000 and $25,000, respectively, were recorded relative to the REIT II properties.

On September 27, 2012, our board of directors approved revisions to our property management agreements that will be entered into with respect to properties acquired after that date and will be entered into as our current property management agreements are renewed. These revisions include increasing the term to three years, with automatic three-year extensions; revising the property owner’s obligation to reimburse the Property Manager for certain expenses; the addition of a construction management fee (as defined); the addition of a tenant insurance administrative fee; adding a nonsolicitation provision; and adding a provision regarding the Property Manager’s use of trademarks and other intellectual property owned by Strategic Storage Holdings, LLC.

Pursuant to the terms of the agreements described above, the following summarizes the related party costs incurred for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31, 2014		Three Months Ended March 31, 2013
Expensed
Reimbursement of operating expenses(1)	$	367,346	$	8,145
Asset management fees(2)		1,512,268		1,175,632
Property management fees(3) (4)		1,374,942		1,112,097
Acquisition expenses		508,542		53,609
Additional Paid-in Capital
Selling commissions		—		844,466
Dealer Manager fees		—		361,914
Reimbursement of offering costs		—		112,697
Total	$	3,763,098	$	3,668,560

⁽¹⁾  During the three months ended March 31, 2013, our Advisor permanently waived certain reimbursable indirect costs, primarily payroll and related overhead costs, related to administrative and management services, totaling approximately $300,000. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. Such reimbursable indirect costs were not waived by the Advisor during the three months ended March 31, 2014, and totaled approximately $360,000.

⁽²⁾  For the three months ended March 31, 2013 our Advisor permanently waived asset management fees related to the Stockade Portfolio of approximately $175,000. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. Such asset management fees were not waived by the Advisor during the three months ended March 31, 2014, and totaled approximately $175,000.

⁽³⁾  During the three months ended March 31, 2013, property management fees include approximately $27,000 of fees paid to the sub-property manager of our Canadian properties. Such sub-property management agreement was terminated effective March 31, 2013 at a cost of approximately $28,000.

⁽⁴⁾  During the three months ended March 31, 2014 and 2013, our Property Manager permanently waived certain costs, reimbursements and fees, including construction management fees, tenant insurance administration fees, accounting administrative fees and expense reimbursements related to certain off-site property management employees. Such amounts totaled approximately $182,500 and $150,000, respectively, and were waived permanently and accordingly, will not be paid to our Property Manager.

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

As of March 31, 2014 and December 31, 2013, we had amounts due to affiliates totaling $1,412,376 and $1,741,518, respectively.

Tenant Reinsurance Program

Beginning in 2011, our Chairman of the Board of Directors, Chief Executive Officer and President, through certain entities, began participating in a tenant reinsurance program whereby tenants of our self storage facilities can purchase insurance to cover damage or destruction to their property while stored at our facilities. Such entities have invested in a Cayman Islands company (the “Reinsurance Company”) that will reinsure a portion of the insurance required by the program insurer to cover the risks of loss at participating facilities in the program. The program insurer provides fees (approximately 50% of the tenant premium paid) to us as owner of the facilities. The Reinsurance Company may be required to fund additional capital or entitled to receive distributions of profits depending on actual losses incurred under the program. For the three months ended March 31, 2014 and 2013, we recorded revenue of approximately $0.5 million and $0.4 million, respectively, in connection with this tenant reinsurance program.

Storage Auction Program

During the second quarter of 2013, our Chairman of the Board of Directors, Chief Executive Officer and President, and our Senior Vice President — Property Management and the President of our Property Manager, purchased noncontrolling interests in a company (the “Auction Company”) that serves as a web portal for self storage companies to post their auctions online instead of using live auctions conducted at the self storage facilities. Once the contents of a storage unit are sold at auction, we pay the Auction Company a service fee based upon the sale price of the unit. On January 1, 2014, the Auction Company merged with another similar company. Such officers’ collective ownership in the new combined company is now approximately nine percent. For the three months ended March 31, 2014 we incurred approximately $34,000 in auction fees with the Auction Company.

Note 8. Commitments and Contingencies

Distribution Reinvestment Plan

We adopted a distribution reinvestment plan that allowed our stockholders to have distributions otherwise distributable to them invested in additional shares of our common stock. The plan became effective on the effective date of our Initial Offering. The purchase price per share was the higher of $9.50 per share or 95% of the fair market value of a share of our common stock. On March 28, 2012, the purchase price per share under the distribution reinvestment plan was changed to 95% of the offering price of our shares. On September 18, 2013, our board of directors amended and restated our distribution reinvestment plan to change the purchase price per share from 95% of the offering price to approximately $10.25 (which resulted in the same price as prior to this amendment and restatement) and make other certain minor revisions related to the closing of our Offering. Our board of directors could set or change the purchase price at any time in its sole and absolute discretion based upon such factors as it deems appropriate.

Following the termination of our Offering, on September 22, 2013, we filed with the SEC a Registration Statement on Form S-3, which incorporated the amended and restated distribution reinvestment plan and registered up to an additional $51.25 million in shares. The Form S-3 allows us to continue to offer shares pursuant to our amended and restated distribution reinvestment plan beyond September 22, 2013; however we may amend or terminate the plan at any time upon 10 days’ prior written notice to stockholders. The plan was effective as of September 28, 2013.

No sales commission or dealer manager fee will be paid on shares sold through the distribution reinvestment plan. As of March 31, 2014, we have sold approximately 0.9 million shares through our DRP Offering.

Operating Partnership Redemption Rights

The limited partners of our Operating Partnership have the right to cause our Operating Partnership to redeem their limited partnership units for cash equal to the value of an equivalent number of our shares, or, at our option, we may purchase their limited partnership units by issuing one share of our common stock for each limited partnership unit redeemed. The holders of the Class D Units have agreed to modified exchange rights that prevent them from exercising their exchange rights: (1) until the earlier of (a) a listing of our shares or (b) our merger into another entity whereby our stockholders receive securities listed on a national securities exchange; or (2) until FFO of the properties contributed by the holders of the Class D

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Units reaches $0.70 per share, based on our fully-loaded cost of equity. These rights may not be exercised under certain circumstances that could cause us to lose our REIT election. Furthermore, limited partners may exercise their redemption rights only after their limited partnership units have been outstanding for one year. Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as our Sponsor is acting as our sponsor.

Ground Lease Commitment—SF Bay Area—San Lorenzo

In connection with the acquisition of our SF Bay Area – San Lorenzo property, we assumed a land lease, with a remaining term of approximately 21 years as of March 31, 2014 and recorded rent expense of approximately $37,000 for each of the three months ended March 31, 2014 and 2013. The lease has minimum lease payments of approximately $100,000, $139,000, $139,000, $139,000, $139,000 and $2,414,000 for the years ending 2014, 2015, 2016, 2017, 2018 and thereafter respectively.

Other Contingencies

We have been involved in routine litigation and threatened litigation arising in the ordinary course of business. While the outcome of any litigation is inherently unpredictable, we believe the likelihood of these pending legal matters having a material adverse effect on our financial condition or results of operations is remote.

Note 9. Declaration of Distributions

On March 20, 2014, our board of directors declared a distribution rate for the second quarter of 2014 of $0.001917808 per day per share on the outstanding shares of common stock payable to stockholders of record of such shares as shown on our books at the close of business on each day during the period, commencing on April 1, 2014 and continuing on each day thereafter through and including June 30, 2014.

Note 10. Selected Quarterly Data

The following is a summary of quarterly financial information for the periods shown below:

	Three months ended
	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013			March 31, 2014
Total revenues	$	19,407,941		$	19,931,208		$	21,292,574		$	22,503,218		$	23,132,944
Total operating expenses	$	16,557,885		$	16,667,044		$	17,229,995		$	19,315,207		$	19,105,230
Operating income	$	2,850,056		$	3,264,164		$	4,062,579		$	3,188,011		$	4,027,714
Net loss	$	(2,167,459	)	$	(1,949,099	)	$	(689,288	)	$	(2,639,352	)	$	(1,039,656	)
Net loss attributable to the Company	$	(2,167,224	)	$	(1,949,079	)	$	(693,245	)	$	(2,637,508	)	$	(1,033,683	)
Net loss per share-basic and diluted	$	(0.05	)	$	(0.04	)	$	(0.01	)	$	(0.05	)	$	(0.02	)

Note 11. Subsequent Events

Acquisition

On April 2, 2014, we acquired a parcel of land in Toronto, Canada for $3.8 million Canadian dollars from an unaffiliated third party. We intend to develop the land into a self storage facility with approximately 870 units and 78,000 rentable square feet.

We incurred acquisition fees due to our Advisor of approximately $0.1 million in connection with the above acquisition.

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STRATEGIC STORAGE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

Dufferin – Toronto – Ontario, Canada Loan

On May 6, 2014, we refinanced the loan encumbering the Dufferin property, thereby extending the maturity date from May 15, 2014 to April 15, 2017. The loan now bears interest at a variable rate, based on the bank’s index rate, plus 3% per annum. The loan contains a number of other customary terms and covenants.

Keybank Revolver Funding

Subsequent to March 31, 2014, we borrowed an additional $18 million on the KeyBank Revolver, bringing the total outstanding amount borrowed to $89 million. In addition to those properties encumbered as of March 31, 2014, we added as encumbered properties Riverdale, Hampton II, Chandler and SF Bay Area -Vallejo. The proceeds of the borrowings were used to repay the previously outstanding mortgage of approximately $4.8 million on the Riverdale property, the previously outstanding mortgage of approximately $4.3 million on the SF Bay Area -Vallejo property and for general corporate purposes.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our financial statements and notes thereto contained elsewhere in this report. The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should also be read in conjunction with our financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2013. See also “Cautionary Note Regarding Forward Looking Statements” preceding Part I.

Overview

Strategic Storage Trust, Inc., a Maryland corporation (the “Company”), was formed on August 14, 2007 under the Maryland General Corporation Law for the purpose of engaging in the business of investing in self storage facilities. The Company’s year-end is December 31. As used in this report, “we” “us” and “our” refer to Strategic Storage Trust, Inc.

On March 17, 2008, we began our initial public offering of common stock (our “Initial Offering”). On May 22, 2008, we satisfied the minimum offering requirements of the Initial Offering and commenced formal operations. On September 16, 2011, we terminated the Initial Offering, having sold approximately 29 million shares for gross proceeds of approximately $289 million. On September 22, 2011, we commenced our follow-on public offering of stock for a maximum of 110,000,000 shares of common stock, consisting of 100,000,000 shares for sale to the public (our “Primary Offering”) and 10,000,000 shares for sale pursuant to our distribution reinvestment plan (collectively, our “Offering”). Our Offering terminated on September 22, 2013, having sold approximately 25 million shares for gross proceeds of approximately $256 million. On September 18, 2013, our board of directors amended and restated our distribution reinvestment plan, effective September 28, 2013, to make certain minor revisions related to the closing of our Offering. Following the termination of our Offering, on September 23, 2013, we filed with the SEC a Registration Statement on Form S-3, which incorporated the amended and restated distribution reinvestment plan and registered up to an additional $51.25 million in shares under our amended and restated distribution reinvestment plan (our “DRP Offering”). The DRP Offering may be terminated at any time upon 10 days’ prior written notice to stockholders. As of March 31, 2014, we had sold approximately 54.5 million shares of common stock for gross proceeds of approximately $554 million under all of our offerings.

In connection with the close-down of our Offering and in light of current market conditions, our board of directors has been and is continuing to explore certain strategic alternatives to create stockholder liquidity. Our management and our board of directors are also exploring the possibility of becoming self-administered. However, there can be no assurance that the exploration of any strategic alternatives will result in any particular outcome. In anticipation of potential strategic alternatives, on November 1, 2013, our board of directors approved the termination of our share redemption program, effective December 1, 2013.

As of March 31, 2014, we owned 125 self storage facilities (124 were wholly owned and one was 98% owned by us) located in 17 states (Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Mississippi, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia) and Canada comprising approximately 79,455 units and approximately 10.4 million rentable square feet. As of March 31, 2014, we also had noncontrolling interests in two additional self storage facilities. Additionally, we have an interest in a net leased industrial property in California with 356,000 rentable square feet leased to a single tenant.

Our dealer manager was Select Capital Corporation, a California corporation (our “Dealer Manager”). Our Dealer Manager was responsible for marketing our shares being offered pursuant to the Offering. Our chief executive officer, through a wholly-owned limited liability company, owns a 15% beneficial non-voting equity interest in our Dealer Manager.

Strategic Storage Operating Partnership, L.P. (our “Operating Partnership”) was formed on August 14, 2007. Our Operating Partnership owns, directly or indirectly through one or more special purpose entities, all of the self storage properties that we have acquired.

Strategic Capital Holdings, LLC, a Virginia limited liability company (our “Sponsor”), was the sponsor of our Offering. Our Sponsor was formed on July 21, 2004 to engage in private structured offerings of limited partnerships and other entities with respect to the acquisition, management and disposition of commercial real estate assets. Our Sponsor owns a majority of Strategic Storage Holdings, LLC, which is the sole member of our advisor, Strategic Storage Advisor, LLC (our “Advisor”), and our property manager Strategic Storage Property Management, LLC (our “Property Manager”).

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We have no paid employees. Our Advisor is responsible for managing our affairs on a day-to-day basis and identifying and making acquisitions and investments on our behalf under the terms of an advisory agreement with our Advisor. Our Advisor was formed on August 13, 2007.

Our Property Manager was organized in August 2007 to manage our properties. Our Property Manager derives substantially all of its income from the property management services it performs for us. Our Property Manager may enter into sub-property management agreements with third party management companies and pay part of its management fee to such sub-property manager.

As of March 31, 2014, our self storage portfolio was comprised as follows:

State	No. of Properties		Units		Sq. Ft. (net)(1)			% of Total Rentable Sq. Ft.			Physical Occupancy %(2)			Climate- Controlled %(3)			Rental Income %(4)
Alabama (5)		3		1,615		213,600			2.1	%		78.4	%		62.3	%		1.9	%
Arizona		5		2,455		294,900			2.8	%		85.5	%		26.8	%		1.9	%
California (5) (10)		9		7,500		925,800			8.9	%		89.7	%		17.6	%		15.0	%
Florida		10		7,750		877,000			8.4	%		83.5	%		44.7	%		9.6	%
Georgia		22		12,990		1,708,900			16.4	%		81.0	%		52.3	%		13.1	%
Illinois		4		2,455		394,000	(6)		3.8	%		89.9	%		1.8	%		3.8	%
Kentucky		5		2,870		415,700			4.0	%		87.2	%		2.0	%		3.5	%
Mississippi		3		1,495		224,300			2.1	%		79.5	%		24.3	%		1.9	%
Nevada		8		4,735		639,000			6.2	%		87.2	%		60.0	%		5.0	%
New Jersey		6		4,660		445,400			4.3	%		84.2	%		62.2	%		7.6	%
New York		1		700		82,800			0.8	%		83.0	%		20.2	%		0.9	%
North Carolina		3		1,560		207,600			2.0	%		89.0	%		17.8	%		1.6	%
Ontario, Canada (7) (9)		4		3,695		411,600			4.0	%		67.2	%(8)		71.7	%		3.1	%
Pennsylvania		4		2,210		285,700			2.8	%		76.1	%		10.6	%		2.5	%
South Carolina		13		7,235		998,800			9.6	%		85.7	%		24.9	%		8.8	%
Tennessee		4		2,695		411,700			4.0	%		86.1	%		38.5	%		2.7	%
Texas		15		9,055		1,428,300			13.8	%		86.2	%		18.9	%		12.4	%
Virginia		6		3,780		415,400			4.0	%		85.0	%		43.0	%		4.7	%
Total		125		79,455		10,380,500			100	%		84.3	%		34.9	%		100	%

⁽¹⁾  Includes all rentable square feet consisting of storage spaces, parking (approximately 1,235,000 square feet) and commercial office units.

⁽²⁾  Represents the occupied square feet of all facilities we owned in a state divided by total rentable square feet of all the facilities we owned in such state as of March 31, 2014.

⁽³⁾  Represents the percentage of rentable square feet in climate-controlled units as of March 31, 2014 for each state.

⁽⁴⁾  Represents rental income (excludes administrative fees, late fees, and other ancillary income) for all facilities we owned in a state divided by our total rental income for the month of March 2014.

⁽⁵⁾  The following are excluded: the interests owned in the Montgomery County Self Storage, DST properties and the Hawthorne property.

⁽⁶⁾  Includes approximately 38,000 rentable square feet of industrial warehouse/office space at the Chicago – Ogden Ave. property.

⁽⁷⁾  As of March 31, 2014, the Pickering property was under development, thus the related occupancy statistics exclude this property.

⁽⁸⁾  Included in the occupancy calculation for Ontario, Canada are the Mississauga and Brampton properties, which were 75% and 38% occupied, respectively, as of March 31, 2014. The construction on the Mississauga property was fully completed in December 2012 and the construction on the Brampton property was completed in July 2013.

⁽⁹⁾  All of these Canadian properties are located within the greater Toronto metropolitan area.

⁽¹⁰⁾  Includes the SF property in which we have an approximately 98% ownership.

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The map below shows the geographic location of our self storage portfolio as of March 31, 2014.

The weighted average capitalization rate at acquisition for our 124 wholly-owned self storage facilities as of March 31, 2014 was approximately 7.18% (7.49% for the 98 properties we acquired that were stabilized upon acquisition and 4.51% for the 23 that were lease-up properties at acquisition). We also had three properties (the Mississauga, Brampton and Pickering properties) that were under development at acquisition). Upon stabilization of the lease-up properties, we expect the capitalization rate of these properties to increase. The weighted average capitalization rate is calculated as the estimated first year annual net operating income at the respective property divided by the property purchase price, exclusive of offering costs, closing costs and fees paid to our Advisor. Estimated first year net operating income on our real estate investments is total estimated revenues generally derived from the terms of in-place leases at the time we acquire the property, less property operating expenses generally based on the operating history of the property. In instances where management determines that historical amounts will not be representative of first year revenues or property operating expenses, management uses its best faith estimate of such amounts based on anticipated property operations. Estimated first year net operating income excludes interest expense, asset management fees, depreciation and amortization and our company-level general and administrative expenses. Historical operating income for these properties is not necessarily indicative of future operating results.

Critical Accounting Policies

We have established accounting policies which conform to GAAP. Preparing financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. Following is a discussion of the estimates and assumptions used in setting accounting policies that we consider critical in the presentation of our financial statements. Many estimates and assumptions involved in the application of GAAP may have a material impact on our financial condition or operating performance, or on the comparability of such information to amounts reported for other periods, because of the subjectivity and judgment required to account for highly uncertain items or the susceptibility of such items to change. These estimates and assumptions affect our reported amounts of assets and liabilities, our disclosure of contingent assets and liabilities at the dates of the financial statements and our reported amounts of revenue and expenses during the period covered by this report. If management’s judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied or different amounts of assets, liabilities, revenues and expenses would have been recorded, thus resulting in a materially different presentation of the financial statements or materially different amounts being reported in the financial statements. Additionally, other companies may use different estimates and assumptions that may impact the comparability of our financial condition and results of operations to those companies.

We believe that our critical accounting policies include the following: real estate purchase price allocations; the evaluation of whether any of our long-lived assets have been impaired; the determination of the useful lives of our long-lived assets; and the evaluation of the consolidation of our interests in joint ventures. The following discussion of these policies

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supplements, but does not supplant the description of our significant accounting policies, as contained in Note 2 of the Notes to the Consolidated Financial Statements contained in this report, and is intended to present our analysis of the uncertainties involved in arriving upon and applying each policy.

Real Estate Purchase Price Allocation

We allocate the purchase prices of acquired properties based on a number of estimates and assumptions. We allocate the purchase prices to the tangible and intangible assets acquired and the liabilities assumed based on estimated fair values. These estimated fair values are based upon comparable market sales information for land and estimates of depreciated replacement cost of equipment, building and site improvements. Acquisitions of portfolios of properties are allocated to the individual properties based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which we estimate based upon the relative size, age, and location of the individual property along with actual historical and estimated occupancy and rental rate levels, and other relevant factors. If available, and determined by management to be appropriate, appraised values are used, rather than these estimated values. Because we believe that substantially all of the leases in place at properties we will acquire will be at market rates, as the majority of the leases are month-to-month contracts, we do not expect to allocate any portion of the purchase prices to above or below market leases. The determination of market rates is also subject to a number of estimates and assumptions. Our allocations of purchase prices could result in a materially different presentation of the financial statements or materially different amounts being reported in the financial statements, as such allocations may vary dramatically based on the estimates and assumptions we use.

Impairment of Long-Lived Assets

The majority of our assets consist of long-lived real estate assets as well as intangible assets related to our acquisitions. We will continually evaluate such assets for impairment based on events and changes in circumstances that may arise in the future and that may impact the carrying amounts of our long-lived assets. When indicators of potential impairment are present, we will assess the recoverability of the particular asset by determining whether the carrying value of the asset will be recovered, through an evaluation of the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. This evaluation is based on a number of estimates and assumptions. Based on this evaluation, if the expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived asset and recognize an impairment loss. Our evaluation of the impairment of long-lived assets could result in a materially different presentation of the financial statements or materially different amounts being reported in the financial statements, as the amount of impairment loss, if any, recognized may vary based on the estimates and assumptions we use.

Estimated Useful Lives of Long-Lived Assets

We assess the useful lives of the assets underlying our properties based upon a subjective determination of the period of future benefit for each asset. We will record depreciation expense with respect to these assets based upon the estimated useful lives we determine. Our determinations of the useful lives of the assets could result in a materially different presentation of the financial statements or materially different amounts being reported in the financial statements, as such determinations, and the corresponding amount of depreciation expense, may vary dramatically based on the estimates and assumptions we use.

Consolidation of Investments in Joint Ventures

We evaluate the consolidation of our investments in joint ventures in accordance with relevant accounting guidance. This evaluation requires us to determine whether we have a controlling interest in a joint venture through a means other than voting rights, and, if so, such joint venture may be required to be consolidated in our financial statements. Our evaluation of our joint ventures under such accounting guidance could result in a materially different presentation of the financial statements or materially different amounts being reported in the financial statements, as the entities included in our financial statements may vary based on the estimates and assumptions we use.

REIT Qualification

We made an election under Section 856(c) of the Code to be taxed as a REIT commencing with the taxable year ended December 31, 2008. By qualifying as a REIT for Federal income tax purposes, we generally will not be subject to Federal income tax on income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to Federal income tax on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for Federal income tax purposes for four years following the year in which our qualification is denied. Such an event could materially and adversely affect our net income and could have a material adverse impact on our financial condition and results of operations. However, we believe that we are organized and will operate in a manner that will enable us to qualify for treatment as a REIT for Federal income tax purposes commencing with the year ended December 31, 2008, and we intend to continue to operate as to remain qualified as a REIT for Federal income tax purposes.

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Results of Operations

Overview

We derive revenues principally from rents received from our customers who rent units at our self storage facilities under month-to-month leases. Therefore, our operating results depend significantly on our ability to retain our existing customers and lease our available self storage units to new customers, while maintaining and, where possible, increasing the prices for our self storage units. Additionally, our operating results depend on our customers making their required rental payments to us. We believe that our Property Manager’s approach to the management and operation of our facilities, which emphasizes local market oversight and control, results in quick and effective response to changes in local market conditions, including increasing rents and/or increasing occupancy levels where appropriate.

Competition in the market areas in which we operate is significant and affects the occupancy levels, rental rates, rental revenues and operating expenses of our facilities. Development of any new self storage facilities would intensify competition of self storage operators in markets in which we operate.

As of March 31, 2014 and 2013, we owned 125 and 110 self storage facilities, respectively. The comparability of our results of operations was significantly affected by our acquisition activity in 2014 and 2013 as listed below.

• In the three months ended March 31, 2014 we acquired two self storage facilities for consideration of approximately $12 million. In the three months ended March 31, 2013, we did not acquire any facilities.

• The three months ended March 31, 2014 includes activity related to the 12 self storage facilities that were acquired between April 1, 2013 and December 31, 2013 for consideration of approximately $82 million.

Comparison of Operating Results for the Three Months Ended March 31, 2014 and 2013

Self Storage Rental Revenue

Rental revenue for the three months ended March 31, 2014 was approximately $22.4 million, as compared to rental revenue for the three months ended March 31, 2013 of approximately $18.8 million, an increase of approximately $3.6 million or 19%. The increase in rental revenue arose primarily from the 13 operating properties acquired in 2013 and 2014 and two Canadian development properties that were in lease-up (approximately $2.2 million) and an increase in same-store rental revenue (approximately $1.4 million or 7.6%; excluding the Homeland Portfolio such same-store increases would have been approximately $1.1 million or 6.5%). We expect rental revenue to increase in future periods as we have a full period of results from our 2014 acquisitions and commensurate with our future acquisition activity.

Ancillary Operating Revenue

Ancillary operating revenue for the three months ended March 31, 2014 was approximately $0.7 million, as compared to ancillary operating revenue for the three months ended March 31, 2013 of approximately $0.6 million, an increase of $0.1 million or 15%. The increase in ancillary operating revenue is due to the same factors as noted above in self storage rental revenue. We expect ancillary operating revenue to increase in future periods as we have a full period of results from our 2014 acquisitions and commensurate with our future acquisition activity.

Property Operating Expenses

Property operating expenses for the three months ended March 31, 2014 were approximately $7.8 million (approximately 33.7% of total revenues) as compared to property operating expenses for the three months ended March 31, 2013 of approximately $6.7 million (approximately 34.6% of total revenues). Property operating expenses includes the costs to operate our facilities including payroll, utilities, insurance, real estate taxes and marketing. The majority of the increase in property operating expenses, approximately $0.7 million, arose from the 13 operating properties we acquired in 2013 and 2014 and two Canadian development properties that were in lease-up, and an increase in same-store property operating expenses of approximately $0.4 million, primarily due to more severe weather conditions in the Northeast during 2014 and the resulting increase in utilities and snow removal costs.

Property Operating Expenses – Affiliates

Property operating expenses – affiliates for the three months ended March 31, 2014 were approximately $2.9 million (approximately 12.5% of total revenues) as compared to property operating expenses – affiliates for the three months ended March 31, 2013 of approximately $2.3 million (approximately 11.8% of total revenues). Property operating expenses –

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affiliates includes property management fees and asset management fees. The primary increases in property operating expenses – affiliates arose from the increase in the number of self storage facilities we owned (approximately $0.3 million). Additionally, during the first quarter of 2013 our Advisor permanently waived certain asset management fees due pursuant to the advisory agreement totaling approximately $0.2 million. Such asset management fees were not waived during the first quarter of 2014 and approximately $0.2 million of such fees were therefore recorded, thus causing a commensurate increase in property operating expenses—affiliates. Property operating expenses – affiliates as a percentage of revenues increased by approximately 0.7% for the three months ended March 31, 2014 compared to the three months ended March 31, 2013 primarily due to the asset management fee change noted above. We expect property operating expenses – affiliates to increase in future periods as we have a full year of results from our 2014 acquisitions and commensurate with our future acquisition activity.

General and Administrative Expenses

General and administrative expenses were approximately $1.2 million for the three months ended March 31, 2014 as compared to general and administrative expenses for the three months ended March 31, 2013 of approximately $0.7 million. Such expenses consist primarily of legal expenses, accounting expenses, transfer agent fees, directors’ and officers’ insurance expense, an allocation of a portion of our Advisor’s payroll related costs and board of directors’ related costs. During the first quarter of 2013 our Advisor permanently waived certain amounts (primarily payroll and related overhead costs, related to administrative and management services) due pursuant to the advisory agreement totaling approximately $0.3 million. Such reimbursable costs were not waived during the first quarter of 2014 and approximately $0.4 million of such reimbursable costs were recorded, thus causing an increase in general and administrative expenses. The remaining increase in general and administrative expenses is primarily due to costs incurred associated with website related costs and an increase in professional services and brand promotion related costs. We expect general and administrative expenses to increase in future periods as we acquire additional self storage facilities, but expect such expenses to decrease as a percentage of total revenues.

Depreciation and Intangible Amortization Expenses

Depreciation and amortization expenses for the three months ended March 31, 2014 were approximately $6.5 million, compared to approximately $6.8 million for three months ended March 31, 2013. Depreciation expense consists primarily of depreciation on the buildings and site improvements at our properties. Amortization expense consists of the amortization of intangible assets resulting from our acquisitions. The increase in depreciation expense is attributable to the increase in the number of self storage facilities we owned, while the decrease in amortization expense primarily relates to certain of our intangible assets that became fully amortized. We expect depreciation and amortization expenses to increase in future periods as we have a full period of results from our 2014 acquisitions and commensurate with our future acquisition activity.

Property Acquisition Expenses

Property acquisition expense for the three months ended March 31, 2014 were approximately $0.7 million, as compared to approximately $0.1 million for the three months ended March 31, 2013. The increase in property acquisition expenses primarily arose from acquiring two properties and the acquisition of an additional 86% interest in the SF DST during the three months ended March 31, 2014 as compared to no acquisitions during the three months ended March 31, 2013. We expect property acquisition expenses to fluctuate commensurate with our acquisition activity.

Interest Expense

Interest expense for the three months ended March 31, 2014 was approximately $4.6 million, as compared to interest expense of approximately $4.7 million for the three months ended March 31, 2013. The decrease in interest expense is the net result of a decrease of approximately $0.4 million attributable to the refinance of the Second Restated KeyBank Loan to the KeyBank Revolver, off-set primarily by increased interest expense related to 2013 acquisitions.

Deferred Financing Amortization Expense

Deferred financing amortization expense for the three months ended March 31, 2014 was approximately $0.3 million, as compared to approximately $0.4 million for the three months ended March 31, 2013. The decrease of approximately $0.1 million primarily relates to higher expense associated with Second Restated KeyBank Loan in the prior period as compared to the current expense associated with the KeyBank Revolver.

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Other Expense

Other expense for the three months ended March 31, 2014 was approximately $0.4 million, as compared to approximately $0.2 million for the three months ended March 31, 2013. The increase of approximately $0.2 million primarily relates to increased foreign currency exchange losses and, to a lesser extent, increased state taxes.

Same-Store Facility Results

The following table sets forth operating data for our same-store facilities (those properties included in the consolidated results of operations since January 1, 2013, excluding our two Canadian properties that were in lease-up during the periods) for the three months ended March 31, 2014 and 2013. We consider the following data to be meaningful as this allows for the comparison of results without the effects of acquisition or development activity.

	Same-Store Facilities									Non Same-Store Facilities							Total
	2014			2013			% Change			2014		2013			% Change		2014			2013			% Change
Revenue (1)	$	20,733,548		$	19,267,854			7.6	%	$	2,399,396	$	140,087			N/M	$	23,132,944		$	19,407,941			19.2	%
Property operating expenses (2)		8,176,775			7,656,380			6.8	%		990,907		168,998			N/M		9,167,682			7,825,378			17.2	%
Operating income	$	12,556,773		$	11,611,474			8.1	%	$	1,408,489	$	(28,911	)		N/M	$	13,965,262		$	11,582,563			20.6	%
Number of facilities (3)		109			109						16		2					125			111
Rentable square feet (4)		9,059,500			9,059,500						1,321,000		210,300					10,380,500			9,269,800
Average physical occupancy (5)		83.5	%		80.6	%					N/M		N/M					83.2	%		80.1	%
Annualized rent per occupied square foot (6)	$	9.99		$	9.75						N/M		N/M				$	9.96		$	9.77

N/M Not meaningful

⁽¹⁾  Revenue includes rental revenue, ancillary revenue, and administrative and late fees.

⁽²⁾  Property operating expenses excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization expense and acquisition expenses, but does include property management fees.

⁽³⁾  The SF property is included in the same-store facilities.

⁽⁴⁾  Of the total rentable square feet parking represented approximately 1,234,000 and 1,098,000, respectively as of March 31, 2014 and 2013. On a same-store basis, for the same periods, parking represented approximately 1,100,000 square feet.

⁽⁵⁾  Determined by dividing the sum of the month-end occupied square feet for the applicable group of facilities for each applicable period by the sum of their month-end rentable square feet for the period. Properties are included in the respective calculations in their first full month of operations, as appropriate.

⁽⁶⁾  Determined by dividing the aggregate realized rental revenue for each applicable period by the aggregate of the month-end occupied square feet for the period. Properties are included in the respective calculations in their first full month of operations, as appropriate. We have included the realized rental revenue and occupied square feet related to parking herein.

Our increase in same-store revenue of approximately $1.5 million was primarily the result of increased average physical occupancy of approximately 290 basis points combined with increased rent per occupied square foot of approximately 2.5% for the three months ended March 31, 2014 over the three months ended March 31, 2013. The Homeland Portfolio increased average occupancy by approximately 9% and contributed approximately $0.3 million to the increase in same-store revenue, which was a 21% increase in revenue for the three months ended March 31, 2014 compared to the three months ended March 31, 2013.

Our same-store property operating expenses increased by approximately $0.5 million for the three months ended March 31, 2014 compared to the three months ended March 31, 2013 due to increases primarily related to severe weather conditions (increased cost of utilities and snow removal) of approximately $0.3 million.

As noted above, our same-store results were impacted favorably by the Homeland Portfolio and its revenue growth. Excluding the Homeland Portfolio, the increase in our same-store revenue and operating income was approximately 6.5% and 5.9%, respectively. Additionally, our same-store average physical occupancy, excluding the Homeland Portfolio, would have been approximately 84% and 82%, for the three months ended March 31, 2014 and 2013 respectively. Finally, excluding the Homeland Portfolio, our same-store average rent per occupied square foot would have been $10.20 and $9.96, for the three months ended March 31, 2014 and 2013, respectively.

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Non-GAAP Financial Measures

Funds from Operations and Modified Funds from Operations

Due to certain unique operating characteristics of real estate companies, the National Association of Real Estate Investment Trusts, or NAREIT, an industry trade group, has promulgated a measure known as funds from operations, or FFO, which we believe to be an appropriate supplemental measure to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to our net income (loss) as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in February 2004, or the White Paper. The White Paper defines FFO as net income (loss) computed in accordance with GAAP, excluding gains or losses from sales of property and asset impairment write downs, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Our FFO calculation complies with NAREIT’s policy described above.

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Diminution in value may occur if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances or other measures necessary to maintain the assets are not undertaken. However, we believe that, since real estate values historically rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation may be less informative. In addition, in the determination of FFO, we believe it is appropriate to disregard impairment charges, as this is a fair value adjustment that is largely based on market fluctuations and assessments regarding general market conditions which can change over time. An asset will only be evaluated for impairment if certain impairment indications exist and if the carrying value, or book value, exceeds the total estimated undiscounted future cash flows (including net rental revenues, net proceeds on the sale of the property, and any other ancillary cash flows at a property or group level under GAAP) from such asset. Testing for impairment is a continuous process and is analyzed on a quarterly basis. Investors should note, however, that determinations of whether impairment charges have been incurred are based partly on anticipated operating performance, because estimated undiscounted future cash flows from a property, including estimated future net rental revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO as described above, investors are cautioned that due to the fact that impairments are based on estimated future undiscounted cash flows and that we intend to have a relatively limited term of our operations; it could be difficult to recover any impairment charges through the eventual sale of the property. To date, we have not recognized any impairments.

Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate related depreciation and amortization and impairments, assists in providing a more complete understanding of our performance to investors and to our management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income (loss).

However, FFO or Modified FFO (“MFFO”), discussed below, should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income (loss) or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be considered a more relevant measure of operational performance and is, therefore, given more prominence than the non-GAAP FFO and MFFO measures and the adjustments to GAAP in calculating FFO and MFFO.

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Changes in the accounting and reporting rules under GAAP that were put into effect and other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled expenses, specifically acquisition fees and expenses, as items that are expensed as operating expenses under GAAP. We believe these fees and expenses do not affect our overall long-term operating performance. Publicly registered, non-traded REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation. The purchase of properties, and the corresponding expenses associated with that process, is a key feature of our business plan in order to generate operational income and cash flow in order to make distributions to investors. While other start-up entities may also experience significant acquisition activity during their initial years, we believe that publicly registered, non-traded REITs are unique in that they typically have a limited life with targeted exit strategies within a relatively limited time frame after the acquisition activity ceases. Our board of directors is in the process of determining which liquidity event, if any, is in the best interests of us and our stockholders (i.e., listing of our shares of common stock on a national securities exchange, a merger or sale, the sale of all or substantially all of our assets, or another similar transaction). We expect to achieve a liquidity event within three years, which is generally comparable to other publicly registered, non-traded REITs. Thus, we do not intend to continuously purchase assets and intend to have a limited life. The decision whether to engage in any liquidity event is in the sole discretion of our board of directors. Due to the above factors and other unique features of publicly registered, non-traded REITs, the Investment Program Association, or the IPA, an industry trade group, has standardized a measure known as modified funds from operations, or MFFO, which the IPA has recommended as a supplemental measure for publicly registered, non-traded REITs and which we believe to be another appropriate supplemental measure to reflect the operating performance of a publicly registered, non-traded REIT having the characteristics described above. MFFO is not equivalent to our net income (loss) as determined under GAAP, and MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not ultimately engage in a liquidity event. We believe that, because MFFO excludes acquisition fees and expenses that affect our operations only in periods in which properties are acquired and that we consider more reflective of investing activities, as well as other non-operating items included in FFO, MFFO can provide, on a going-forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of our operating performance after the period in which we are acquiring our properties and once our portfolio is in place. By providing MFFO, we believe we are presenting useful information that assists investors and analysts to better assess the sustainability of our operating performance now that our Offering has been completed. We also believe that MFFO is a recognized measure of sustainable operating performance by the publicly registered, non-traded REIT industry. Further, we believe MFFO is useful in comparing the sustainability of our operating performance now that our Offering has been completed and we expect our acquisition activity over the near term to be less vigorous, with the sustainability of the operating performance of other real estate companies that are not as involved in acquisition activities. Investors are cautioned that MFFO should only be used to assess the sustainability of our operating performance now that our Offering has been completed and we expect our acquisition activity over the near term to be less vigorous, as it excludes acquisition fees and expenses that have a negative effect on our operating performance during the periods in which properties are acquired.

We define MFFO, a non-GAAP measure, consistent with the IPA’s Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations (the “Practice Guideline”) issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items included in the determination of GAAP net income (loss): acquisition fees and expenses; amounts relating to straight line rents and amortization of above or below intangible lease assets and liabilities; accretion of discounts and amortization of premiums on debt investments; non-recurring impairments of real estate related investments; mark-to-market adjustments included in net income; non-recurring gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums on debt investments, unrealized gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income (loss) in calculating cash flows from operations and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized.

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Our MFFO calculation complies with the IPA’s Practice Guideline described above. In calculating MFFO, we exclude acquisition related expenses, the amortization of fair value adjustments related to debt, realized and unrealized gains and losses on foreign exchange holdings and the adjustments of such items related to noncontrolling interests. The other adjustments included in the IPA’s Practice Guideline are not applicable to us for the periods presented. Acquisition fees and expenses are paid in cash by us, and we have not set aside or put into escrow any specific amount of proceeds from our Offering to be used to fund acquisition fees and expenses. Acquisition fees and expenses include payments to our Advisor and third parties. Acquisition related expenses under GAAP are considered operating expenses and as expenses included in the determination of net income (loss) and income (loss) from continuing operations, both of which are performance measures under GAAP. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property. In the future, if we are not able to raise additional proceeds from our DRP Offering or other potential offerings, this could result in us paying acquisition fees or reimbursing acquisition expenses due to our Advisor, or a portion thereof, with net proceeds from borrowed funds, operational earnings or cash flows, net proceeds from the sale of properties, or ancillary cash flows. As a result, the amount of proceeds available for investment and operations would be reduced, or we may incur additional interest expense as a result of borrowed funds.

Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income (loss) in determining cash flows from operations. In addition, we view fair value adjustments of derivatives and the amortization of fair value adjustments related to debt as items which are unrealized and may not ultimately be realized or as items which are not reflective of on-going operations and are therefore typically adjusted for when assessing operating performance.

We use MFFO and the adjustments used to calculate it in order to evaluate our performance against other publicly registered, non-traded REITs which intend to have limited lives with short and defined acquisition periods and targeted exit strategies shortly thereafter. As noted above, MFFO may not be a useful measure of the impact of long-term operating performance if we do not continue to operate in this manner. We believe that our use of MFFO and the adjustments used to calculate it allow us to present our performance in a manner that reflects certain characteristics that are unique to publicly registered, non-traded REITs, such as their limited life, limited and defined acquisition period and targeted exit strategy, and hence that the use of such measures may be useful to investors. For example, acquisition fees and expenses were intended to be funded from the proceeds of our Offering and other financing sources and not from operations. By excluding expensed acquisition fees and expenses, the use of MFFO provides information consistent with management’s analysis of the operating performance of the properties. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such charges that may reflect anticipated and unrealized gains or losses, we believe MFFO provides useful supplemental information.

Presentation of this information is intended to provide useful information to investors as they compare the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and MFFO the same way, so comparisons with other REITs may not be meaningful. Furthermore, FFO and MFFO are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) or income (loss) from continuing operations as an indication of our performance, as an alternative to cash flows from operations, which is an indication of our liquidity, or indicative of funds available to fund our cash needs including our ability to make distributions to our stockholders. FFO and MFFO should be reviewed in conjunction with other measurements as an indication of our performance. MFFO may be useful in assisting management and investors in assessing the sustainability of operating performance in future operating periods, and in particular, after the offering and acquisition stages are complete and net asset value is disclosed. FFO and MFFO are not useful measures in evaluating net asset value because impairments are taken into account in determining net asset value but not in determining FFO and MFFO.

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Neither the SEC, NAREIT nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the allowable adjustments across the publicly registered, non-traded REIT industry and we would have to adjust our calculation and characterization of FFO or MFFO. The following is a reconciliation of net income (loss), which is the most directly comparable GAAP financial measure, to FFO and MFFO for each of the periods presented below:

	Three Months Ended March 31, 2014			Three Months Ended March 31, 2013
Net loss attributable to Strategic Storage Trust, Inc.	$	(1,033,683	)	$	(2,167,224	)
Add:
Depreciation		4,740,574			3,993,412
Amortization of intangible assets		1,663,256			2,689,992
Deduct:
Adjustment for noncontrolling interests		(71,250	)		(92,243	)
FFO		5,298,897			4,423,937
Other Adjustments:
Acquisition expenses(1)		745,651			76,585
Amortization of fair value adjustments of secured debt(2)		(16,612	)		41,363
Realized and unrealized losses on foreign exchange holdings(3)		264,581			111,460
Adjustment for noncontrolling interests		(12,306	)		(12,817	)
MFFO	$	6,280,211		$	4,640,528

⁽¹⁾  In evaluating investments in real estate, we differentiate the costs to acquire the investment from the operations derived from the investment. Such information would be comparable only for publicly registered, non-traded REITs that have generally completed their acquisition activity and have other similar operating characteristics. By excluding expensed acquisition related expenses, we believe MFFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties. Acquisition fees and expenses include payments to our Advisor and third parties. Acquisition related expenses under GAAP are considered operating expenses and as expenses included in the determination of net income (loss) and income (loss) from continuing operations, both of which are performance measures under GAAP. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property.

⁽²⁾  This represents the difference between the stated interest rate and the estimated market interest rate on assumed notes or seller notes issued, as of the date of acquisition. Such amounts have been excluded from MFFO because we believe MFFO provides useful supplementary information by focusing on operating fundamentals, rather than events not related to our normal operations. We are responsible for managing interest rate risk and do not rely on another party to manage such risk.

⁽³⁾  These amounts primarily relate to transactions with our non-U.S. functional currency entities. The amounts are the result of fluctuations between the U.S. dollar and the Canadian dollar. Such amounts have been excluded from MFFO because we believe MFFO provides useful supplementary information by focusing on operating fundamentals, rather than events not related to our normal operations. We are responsible for managing hedge and foreign exchange risk and do not rely on another party to manage such risk.

Non-cash Items Included in Net Loss:

Provided below is additional information related to selected non-cash items included in net loss above, which may be helpful in assessing our operating results:

• Amortization of deferred financing costs of approximately $0.3 million and $0.4 million was recognized as interest expense for the three months ended March 31, 2014 and 2013, respectively.

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Cash Flows

A comparison of cash flows for operating, investing and financing activities for the three months ended March 31, 2014 and 2013 is as follows:

	Three Months Ended						Change
	March 31, 2014			March 31, 2013
Net cash flow provided by (used in):
Operating activities	$	6,273,590		$	4,003,598		$	2,269,992
Investing activities		(19,365,900	)		(3,958,473	)		(15,407,427	)
Financing activities		(6,548,771	)		(676,771	)		(5,872,000	)

Cash flows provided by operating activities for the three months ended March 31, 2014 and 2013 were approximately $6.3 million and $4.0 million, respectively, an increase in cash provided by operations of approximately $2.3 million. The increase in cash provided is the result of an improvement in our net loss, as adjusted for depreciation and amortization of $0.7 million and other changes in working capital.

Cash flows used in investing activities for the three months ended March 31, 2014 and 2013 were approximately $19.4 million and $4.0 million, respectively, an increase in the use of cash of approximately $15.4 million. The increase in cash used primarily relates to an increase in the purchase of real estate of approximately $11.6 million and the use of approximately $5.7 million related to the acquisition of additional noncontrolling interests, off-set by decreases in development and construction and additions to real estate facilities of approximately $1.2 million and $0.9 million respectively.

Cash flows used in financing activities for the three months ended March 31, 2014 and 2013 were approximately $6.5 million and $0.7 million, respectively, an increase of approximately $5.9 million. The increase in cash used in financing activities over the prior period primarily relates to the termination of the Offering, the decrease in the net offering proceeds was approximately $10.9 million, off-set by a reduction of $3.3 million related to the termination of the share redemption program and an additional net reduction of approximately $3.2 million related to debt repayments and proceeds from new issuances of debt.

Liquidity and Capital Resources

Short-Term Liquidity and Capital Resources

We generally expect that we will meet our short-term operating liquidity requirements from the combination of the proceeds of our Offering, proceeds from secured or unsecured financing from banks or other lenders, net cash provided by property operations and advances from our Advisor which will be repaid, without interest, as funds are available after meeting our current liquidity requirements, subject to the limitations on reimbursement set forth in our advisory agreement with our Advisor.

As set forth earlier, our Offering expired on September 22, 2013, and we believe the combination of proceeds from our Offering and potential borrowing capacity under our KeyBank Revolver should be sufficient to allow us to meet our short-term capital needs and move to the next phase of our life cycle.

Distribution Policy and Distributions

Our board of directors will determine the amount and timing of distributions to our stockholders and will base such determination on a number of factors, including funds available for payment of distributions, financial condition, capital expenditure requirements and annual distribution requirements needed to maintain our status as a REIT under the Code. Distributions will be paid to our stockholders as of the record date selected by our board of directors. We declare and pay distributions monthly based on daily declaration and record dates so that investors may be entitled to distributions immediately upon purchasing our shares. We expect to continue to regularly pay distributions unless our results of operations, our general financial condition, general economic conditions, or other factors inhibit us from doing so. Distributions will be authorized at the discretion of our board of directors, which will be directed, in substantial part, by its obligation to cause us to comply with the REIT requirements of the Code. The funds we receive from operations that are available for distribution may be affected by a number of factors, including the following:

• the amount of time required for us to invest the funds received in the Offering;

• our operating and interest expenses;

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• the amount of distributions or dividends received by us from our indirect real estate investments;

• our ability to keep our properties occupied;

• our ability to maintain or increase rental rates;

• capital expenditures and reserves for such expenditures;

• the issuance of additional shares; and

• financings and refinancings.

The following shows our distributions and the sources of such distributions for the respective periods presented:

	Three Months Ended March 31, 2014				Year Ended December 31, 2013
Distributions paid in cash	$	5,195,123			$	19,276,713
Distributions reinvested		4,512,649				15,794,890
Total distributions	$	9,707,772			$	35,071,603
Source of distributions
Cash flows provided by operations	$	6,273,590	64.6	%	$	19,306,141	55.0	%
Offering proceeds from distribution reinvestment plan		3,434,182	35.4	%		15,765,462	45.0	%
Total sources	$	9,707,772	100.0	%	$	35,071,603	100.0	%

Cash flows provided by operations for the three months ended March 31, 2014 and the year ended December 31, 2013, include approximately $0.7 million and $2.9 million, respectively, of acquisition related expenses expensed in accordance with GAAP.

We may not be able to pay distributions from our cash flows from operations, in which case distributions may be paid in part from debt financing or from proceeds from the issuance of common stock through our DRP Offering.

From our inception through March 31, 2014, we incurred cumulative distributions of approximately $116.8 million, as compared to cumulative FFO of approximately $24.0 million. For the three months ended March 31, 2014, we incurred distributions of approximately $9.7 million, as compared to FFO of approximately $5.3 million. For the year ended December 31, 2013, we incurred distributions of approximately $35.7 million, as compared to FFO of approximately $17.2 million. The payment of distributions from sources other than FFO may reduce the amount of proceeds available for investment and operations or cause us to incur additional interest expense as a result of borrowed funds.

Over the long-term, we expect that a greater percentage of our distributions will be paid from cash flows from operations. However, our operating performance cannot be accurately predicted and may deteriorate in the future due to numerous factors, including our ability to raise and invest capital at favorable yields, the financial performance of our investments in the current real estate and financial environment and the types and mix of investments in our portfolio. As a result, future distributions declared and paid may exceed cash flow from operations.

Indebtedness

As of March 31, 2014, we had approximately $388.7 million of outstanding consolidated indebtedness (excluding net unamortized debt premiums of approximately $0.9 million). The weighted average interest rate on our consolidated fixed rate indebtedness as of March 31, 2014 was approximately 5.4%. As of March 31, 2014, approximately $89.7 million of our total consolidated indebtedness was variable rate debt.

Long-Term Liquidity and Capital Resources

On a long-term basis, our principal demands for funds will be for property acquisitions, either directly or through equity investments, for the payment of operating expenses, capital improvements on our properties, equity distributions and for debt service on our outstanding indebtedness. As set forth above, our Offering closed on September 22, 2013. Our board of directors is currently contemplating a number of strategies for the next steps in our life cycle. Absent the implementation of those strategies, we generally expect our cash requirements will be met from cash flows from operations, draws under existing credit agreements and the issuance of additional debt or equity.

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Long-term potential future sources of capital include proceeds from secured or unsecured financings from banks or other lenders, issuance of equity instruments, undistributed funds from operations, and additional public or private offerings. We believe our ability to refinance or secure new debt will in part be affected by our ability to continue to lease-up certain development projects and other lease-up acquisitions. If such facilities continue to progress we believe our ability to borrow against those assets will be favorably impacted. To the extent we are not able to secure requisite additional financing in the form of a credit facility or other debt, we will be dependent upon proceeds from the issuance of equity instruments and cash flows from operating activities in order to meet our long-term liquidity requirements and to fund our distributions.

Contractual Obligations

The following table summarizes our contractual obligations as of March 31, 2014:

	Payments due by period:
	Total		Less than 1 Year		1-3 Years		3- 5 Years		More than 5 Years
Mortgage interest (1) (2)	$	97,747,048	$	13,690,459	$	32,381,594	$	19,687,777	$	31,987,218
Mortgage principal (1) (2)		388,652,699		9,761,651		154,648,531		68,489,620		155,752,897
Operating leases		3,070,881		100,328		277,830		277,830		2,414,893
Total contractual obligations	$	489,470,628	$	23,552,438	$	187,307,955	$	88,455,227	$	190,155,008

(1) Interest expense was calculated based upon the contractual rates. The interest expense on variable rate debt was calculated based on the rate currently in effect. Debt denominated in foreign currency has been converted at the conversion rate in effect as of the end of the period.

(2) This table reflects both the revised terms of the Dufferin – Toronto Loan and the refinance of the Riverdale and SF Bay Area – Vallejo loans through the KeyBank Revolver. See Note 11 of the Notes to the Consolidated Financial Statements for additional discussion.

Off-Balance Sheet Arrangements

Except as disclosed in Note 2 of the Notes to the Consolidated Financial Statements contained in this report, we do not currently have any relationships with unconsolidated entities or financial partnerships. Such entities are often referred to as structured finance or special purposes entities, which typically are established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. Further, except as disclosed in the notes to our financial statements, we have not guaranteed any obligations of unconsolidated entities nor do we have any commitments or intent to provide funding to any such entities.

Subsequent Events

Please see Note 11 of the Notes to the Consolidated Financial Statements contained in this report.

Seasonality

We believe that we will experience minor seasonal fluctuations in the occupancy levels of our facilities, which we believe will be slightly higher over the summer months due to increased moving activity.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market sensitive instruments. In pursuing our business plan, we expect that the primary market risk to which we will be exposed is interest rate risk and to a lesser extent, foreign currency risk.

As of March 31, 2014, our debt consisted of approximately $299 million in fixed rate debt and approximately $89.7 million in variable rate debt (excluding net unamortized debt premiums of approximately $0.9 million). As of December 31, 2013, our debt consisted of approximately $300 million in fixed rate debt and approximately $90.4 million in variable rate debt. These instruments were entered into for other than trading purposes. Changes in interest rates have different impacts on the fixed and variable portions of our debt portfolio. A change in interest rates on the fixed portion of our debt portfolio impacts its fair value but has no impact on interest incurred or cash flows. A change in interest rates on the variable portion of our debt portfolio could impact the interest incurred and cash flows and its fair value. If the underlying rate of the related

44

index on our variable rate debt were to increase or decrease by 100 basis points, the increase or decrease in interest expense (excluding the portion of our variable rate debt that was effectively fixed through an interest rate swap through December 24, 2014) would increase or decrease future earnings and cash flows by approximately $0.6 million annually.

Interest rate risk amounts were determined by considering the impact of hypothetical interest rates on our financial instruments. These analyses do not consider the effect of any change in overall economic activity that could occur. Further, in the event of a change of that magnitude, we may take actions to further mitigate our exposure to the change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, these analyses assume no changes in our financial structure.

The following table summarizes annual debt maturities, average interest rates and estimated fair values on our outstanding debt as of March 31, 2014:

	Year Ending December 31,
	2014			2015			2016			2017			2018			Thereafter			Total
Fixed rate debt (1)	$	3,084,647		$	30,827,135		$	37,100,972		$	44,044,243		$	19,074,211		$	155,752,897		$	289,884,105
Average interest rate		5.42	%		5.43	%		5.41	%		5.30	%		5.17	%		5.11	%		—
Variable rate debt (1) (2)	$	6,677,004		$	186,862		$	86,533,562		$	5,371,166			—			—		$	98,768,594
Average interest rate		2.26	%		2.13	%		2.30	%		5.22	%		—			—			—

(1) This table reflects both the revised terms of the Dufferin – Toronto Loan and the refinance of the Riverdale and SF Bay Area – Vallejo loans through the KeyBank Revolver. See Note 11 of the Notes to the Consolidated Financial Statements for additional discussion.

(2) Interest expense was calculated based upon the contractual rates. The interest expense on variable rate debt was calculated based on the rate currently in effect. Debt denominated in foreign currency has been converted at the conversion rate in effect as of the end of the period.

In the future, we may be exposed to the effects of interest rate changes primarily as a result of borrowings used to maintain liquidity and fund acquisition, expansion, and financing of our real estate investment portfolio and operations. Our interest rate risk management objectives will be to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. To achieve our objectives, we may borrow at fixed rates or variable rates. We may also enter into derivative financial instruments such as interest rate swaps and caps in order to mitigate our interest rate risk on a related financial instrument or foreign currency hedges to mitigate our risk to foreign currency exposure. We will not enter into derivative or interest rate transactions for speculative purposes.

As mentioned above, we had one derivative instrument as of March 31, 2014. Such instrument was a variable to fixed derivative with a notional amount of $45,000,000, which is effective through December 24, 2014. Our average receive rate is one month LIBOR and the average pay rate was 0.9075%.

We consider our direct exposure to foreign exchange rate fluctuations to generally be minimal. Currently, our only foreign exchange rate risk comes from our Canadian properties and the Canadian Dollar (“CAD”), for which we do not maintain an active hedging program. However, we generate all of our revenues and expend essentially all of our operating expenses and third party debt service costs in CAD. As a result of fluctuations in currency exchange, our cash flows and results of operations could be affected.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the end of the period covered by this report, management, including our chief executive officer and chief financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based upon this evaluation, our chief executive officer and chief financial officer concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report to ensure that information required to be disclosed in the reports we file and submit under the Exchange Act is recorded, processed, summarized and reported as and when required. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file and submit under the Exchange Act is accumulated and communicated to our management, including our chief executive officer and our chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

45

Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

The following should be read in conjunction with the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2013.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) None.

(b) On March 17, 2008, our Initial Offering (SEC File No. 333-146959) for a maximum of 110,000,000 shares of common stock, consisting of 100,000,000 shares for sale to the public and 10,000,000 shares for sale pursuant to our distribution reinvestment plan, was declared effective by the SEC. We terminated the Initial Offering on September 16, 2011, prior to the sale of all securities registered in the Initial Offering. On September 22, 2011, our Offering (SEC File No. 333-168905) for a maximum of 110,000,000 shares of common stock, consisting of 100,000,000 shares for sale to the public in our Primary Offering and 10,000,000 shares for sale pursuant to our distribution reinvestment plan, was declared effective by the SEC. Our Primary Offering terminated as of the scheduled close date (September 22, 2013), prior to the sale of all securities registered in the Primary Offering. As of March 31, 2014, we had issued approximately 54.5 million shares of common stock in our Initial Offering, Offering and DRP Offering, raising gross offering proceeds of approximately $554 million. From this amount, we incurred approximately $14.6 million in acquisition fees to our Advisor, approximately $49 million in selling commissions and dealer manager fees (of which approximately $39 million was reallowed to third party broker-dealers), and approximately $4.8 million in organization and offering costs to our Advisor. With the net offering proceeds and indebtedness, we acquired approximately $537 million in self storage facilities and made the other payments reflected under “Cash Flows from Financing Activities” in our consolidated statements of cash flows included in this report.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

(a) During the first quarter of 2014, there was no information required to be disclosed in a report on Form 8-K which was not disclosed in a report on Form 8-K.

(b) During the first quarter of 2014, there were no material changes to the procedures by which security holders may recommend nominees to our board of directors.

ITEM 6. EXHIBITS

The exhibits required to be filed with this report are set forth on the Exhibit Index hereto and incorporated by reference herein.

46

EXHIBIT INDEX

The following exhibits are included in this report on Form 10-Q for the period ended March 31, 2014 (and are numbered in accordance with Item 601 of Regulation S-K).

Exhibit No.	Description
3.1	Second Articles of Amendment and Restatement of Strategic Storage Trust, Inc., incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed on June 21, 2011, Commission File No. 000-53644
3.2	Articles of Amendment to the Second Articles of Amendment and Restatement of Strategic Storage Trust, Inc., incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K, filed on June 13, 2012, Commission File No. 000-53644
3.3	Bylaws of Strategic Storage Trust, Inc., incorporated by reference to Exhibit 3.2 to Pre-Effective Amendment No. 3 to the Company’s Registration Statement on Form S-11, filed on March 7, 2008, Commission File No. 333-146959
31.1*	Certification of Principal Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Principal Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002
101*	The following Strategic Storage Trust, Inc. financial information for the quarter ended March 31, 2014 formatted in XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Loss (iv) Consolidated Statement of Equity, (v) Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements.

* Filed herewith.

47

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	STRATEGIC STORAGE TRUST, INC. (Registrant)
Dated: May 15, 2014	By:	/s/ Michael S. McClure
		Michael S. McClure
		Executive Vice President, Chief Financial Officer and Treasurer and duly authorized officer

48

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, H. Michael Schwartz, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Strategic Storage Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 15, 2014	By:	/s/ H. Michael Schwartz
		H. Michael Schwartz President, CEO and Director (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Michael S. McClure, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Strategic Storage Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 15, 2014	By:	/s/ Michael S. McClure
		Michael S. McClure Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Strategic Storage Trust, Inc. (the “Company”), in connection with the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2014 (the “Report”) hereby certifies, to his knowledge, that:

(i) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 15, 2014	By:	/s/ H. Michael Schwartz
		H. Michael Schwartz President, CEO and Director (Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Strategic Storage Trust, Inc. (the “Company”), in connection with the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2014 (the “Report”) hereby certifies, to his knowledge, that:

(i) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 15, 2014	By:	/s/ Michael S. McClure
		Michael S. McClure Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)

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Derivative Instruments - Cash Flow Hedge of Interest Rate Risk - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Ineffective portion of change in fair value of derivatives instruments recognized in earnings	$ 0	$ 0
Interest expense	4,620,158	4,664,830
Fair value of derivatives in a net liability position	253,000
Termination value in case of breach of provisions	253,000
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of instruments	1
Reclassification from AOCI to Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest expense	$ 247,000

XML

Subsequent Events - Additional Information (Detail)	3 Months Ended					0 Months Ended	3 Months Ended		0 Months Ended				3 Months Ended
	Mar. 31, 2014 USD ($)	Mar. 31, 2014 Dufferin - Toronto - Ontario, Canada		Mar. 31, 2014 Dufferin - Toronto - Ontario, Canada Minimum	Mar. 31, 2014 Dufferin - Toronto - Ontario, Canada Maximum	Oct. 28, 2013 KeyBank Revolver USD ($)	Mar. 31, 2014 KeyBank Revolver		Apr. 30, 2014 Subsequent Event USD ($) sqft Facility	Apr. 30, 2014 Subsequent Event CAD	Apr. 02, 2014 Subsequent Event USD ($)	May 06, 2014 Subsequent Event Dufferin - Toronto - Ontario, Canada	Mar. 31, 2014 Subsequent Event KeyBank Revolver USD ($)	Mar. 31, 2014 Subsequent Event KeyBank Revolver Riverdale USD ($)	Mar. 31, 2014 Subsequent Event KeyBank Revolver SF Bay Area - Vallejo USD ($)
Subsequent Event [Line Items]
Business acquisition purchase price									$ 3,800,000	3,800,000
Self storage facilities volume									870	870
Self storage facilities capacity									78,000	78,000
Acquisition fees paid to the Advisor	500,000										100,000
Variable rate of interest												3.00%
Maturity date		May 15, 2014	[1]	May 15, 2014	Apr. 15, 2017		Oct. 25, 2016	[2]
Maximum borrowings under revolving loan						75,000,000							18,000,000
Draw from revolving loan						71,000,000							89,000,000
Proceeds of borrowings to repay the outstanding mortgage														$ 4,800,000	$ 4,300,000

[1] On January 12, 2011, we encumbered the Dufferin property with a Canadian dollar denominated loan which bears interest at the bank's floating rate plus 3.0% (subject to a reduction in certain circumstances). The rate in effect at March 31, 2014 was 5.22%. This loan was refinanced in May 2014, thereby extending the maturity date to April 15, 2017 (see Note 11).

[2] On October 28, 2013, through our Operating Partnership and certain property-owning special purpose entities wholly-owned by our Operating Partnership, we entered into the KeyBank Revolver, which matures on October 25, 2016. Such loan encumbers the Homeland Portfolio properties, the Knoxville Portfolio properties and five other previously unencumbered properties (Gulf Breeze II, El Paso I, Toms River II, North Charleston and Phoenix I). This loan is a LIBOR based variable rate loan, and such rate is based on 30-day LIBOR, which including the applicable spread equaled an interest rate of 1.66% as of March 31, 2014. The interest rate swap with a notional amount of $45 million that was originally entered into in connection with the Second Restated KeyBank Loan remains outstanding; inclusive of the interest rate swap, the effective fixed interest rate as of March 31, 2014 was approximately 2.4%. For additional discussion, see "KeyBank Revolver" below.

XML

Declaration of Distributions - Additional Information (Detail) (USD $)	Mar. 20, 2014
Equity [Abstract]
Common stock per share outstanding per day declared	$ 0.001917808

XML

Purchase Price Allocation for Acquisitions (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014
Business Acquisition [Line Items]
Real Estate Assets	$ 10,305,000
Intangibles	1,280,000
Total	11,585,000	[1]
2014 Revenue	58,546	[2]
2014 Property Operating Income	35,688	[2],[3]
Hampton II - VA
Business Acquisition [Line Items]
Acquisition Date	Mar. 05, 2014
Real Estate Assets	5,930,000
Intangibles	770,000
Total	6,700,000	[1]
2014 Revenue	52,432	[2]
2014 Property Operating Income	32,266	[2],[3]
Chandler - AZ
Business Acquisition [Line Items]
Acquisition Date	Mar. 27, 2014
Real Estate Assets	4,375,000
Intangibles	510,000
Total	4,885,000	[1]
2014 Revenue	6,114	[2]
2014 Property Operating Income	$ 3,422	[2],[3]

[1] The allocations noted above are based on a preliminary determination of the fair value of the total consideration provided. Such valuations may change as we complete our purchase price accounting.

[2] The operating results of the facilities acquired above have been included in the Company's statement of operations since their respective acquisition date.

[3] Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization and acquisition expenses.

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2014

Related Party Transactions [Abstract]

Summary of Related Party Costs Incurred

Pursuant to the terms of the agreements described above, the following summarizes the related party costs incurred for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31, 2014		Three Months Ended March 31, 2013
Expensed
Reimbursement of operating expenses(1)	$	367,346	$	8,145
Asset management fees(2)		1,512,268		1,175,632
Property management fees(3) (4)		1,374,942		1,112,097
Acquisition expenses		508,542		53,609
Additional Paid-in Capital
Selling commissions		—		844,466
Dealer Manager fees		—		361,914
Reimbursement of offering costs		—		112,697
Total	$	3,763,098	$	3,668,560

⁽¹⁾  During the three months ended March 31, 2013, our Advisor permanently waived certain reimbursable indirect costs, primarily payroll and related overhead costs, related to administrative and management services, totaling approximately $300,000. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. Such reimbursable indirect costs were not waived by the Advisor during the three months ended March 31, 2014, and totaled approximately $360,000.

⁽²⁾  For the three months ended March 31, 2013 our Advisor permanently waived asset management fees related to the Stockade Portfolio of approximately $175,000. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. Such asset management fees were not waived by the Advisor during the three months ended March 31, 2014, and totaled approximately $175,000.

⁽³⁾  During the three months ended March 31, 2013, property management fees include approximately $27,000 of fees paid to the sub-property manager of our Canadian properties. Such sub-property management agreement was terminated effective March 31, 2013 at a cost of approximately $28,000.

⁽⁴⁾  During the three months ended March 31, 2014 and 2013, our Property Manager permanently waived certain costs, reimbursements and fees, including construction management fees, tenant insurance administration fees, accounting administrative fees and expense reimbursements related to certain off-site property management employees. Such amounts totaled approximately $182,500 and $150,000, respectively, and were waived permanently and accordingly, will not be paid to our Property Manager.

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Related Party Transactions - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Related Party Transaction [Line Items]
Maximum period for reimbursement of offering cost	60 days
Maximum offering cost rate	3.50%
Gross proceeds from offering, threshold percentage of expenses for reimbursement	15.00%
Follow-on offering termination date	Sep. 22, 2013
Rate of acquisition fees of purchase price of contract	2.50%
Monthly asset management fee one twelfth of one percentage of asset value	One-twelfth of 1.0%
Monthly asset management fee one twelfth of less than one percentage of asset value payable if asset value exceeds $500 million	One-twelfth of 0.75%
Aggregate asset value specific exceed	$ 500,000,000
Minimum percentage of distribution	100.00%
Property management fees percentage of property revenue for REIT I, REIT II and the SS I, DST, Madison DST and Colonial DST acquisitions	2.00%
Advisory fees percentage of sale price of property	3.00%
Commission percentage of sale price of property	6.00%
Cumulative, non compounded, annual return on such stockholders' invested capital	6.00%
Operating expenses reimbursement percentage of average investment in assets	2.00%
Operating expenses reimbursement percentage of net income	25.00%
Operating expenses exceed limitation	12 months
Maximum days for disclosure fact	60 days
Second Amended and Restated Advisory Agreement entered date	Sep. 27, 2012
Subordinated distributions description	In the case of each of the foregoing distributions, our Advisor's receipt of the distribution is subordinate to return of capital to our stockholders plus at least a 6% cumulative, non-compounded return, and our Advisor's share of the distribution is 5%, 10%, or 15%, depending on the return level to our stockholders.
Sale commission fees percentage of proceeds from Primary Offering	7.00%
Maximum dealer manager commission fee percentage of proceeds from Primary Offering	3.00%
Underwriting commission	10.00%
Maximum percentage other non-accountable expenses	3.00%
Percentage owned by chief executive officer in Dealer Manager	15.00%
Percentage of fee of property manager	6.00%
Return needed for before the Property Manager entitled to property management fees on properties acquired via the REIT II merger		$ 0.70
Property management fees	65,000	25,000
Increase in agreement term due to revision	3 years
Automatic extension period	3 years
Amounts due to affiliates	1,412,376		1,741,518
Percentage of tenant premium paid approximately, fees provided by program insurer	50.00%
Revenue recorded in connection with reinsurance program	500,000	400,000
Auction fees	$ 34,000
RETI I and RETI II [Member]
Related Party Transaction [Line Items]
Subordinated distributions description	The receipt of the distribution by the advisors to REIT I and REIT II is subordinate to return of capital to the original REIT I and REIT II stockholders plus at least a 7% cumulative, non-compounded return, and such advisors' share of the distribution is 15%.
Executive Officer | Auction Company
Related Party Transaction [Line Items]
Officers' collective ownership	9.00%

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Secured Debt - Additional Information (Detail) (USD $)			0 Months Ended			3 Months Ended						0 Months Ended	3 Months Ended	0 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Oct. 28, 2013 Second Restated KeyBank Loan Property	Jan. 12, 2012 Second Restated KeyBank Loan	Dec. 27, 2011 Second Restated KeyBank Loan	Mar. 31, 2014 Second Restated KeyBank Loan Option	Apr. 05, 2013 Second Restated KeyBank Loan	Oct. 10, 2012 Second Restated KeyBank Loan	Dec. 27, 2011 Second Restated KeyBank Loan GA Property	Dec. 27, 2011 Second Restated KeyBank Loan FL Property	Dec. 27, 2011 Restated Key Bank Credit Facility	Oct. 28, 2013 KeyBank Revolver	Mar. 31, 2014 KeyBank Revolver lender Property	Oct. 28, 2013 KeyBank Revolver Knoxville Portfolio	Mar. 31, 2014 KeyBank Revolver Maximum	Mar. 31, 2014 KeyBank Revolver Minimum
Debt Instrument [Line Items]
Net book values of secured properties	$ 645,000,000	$ 647,000,000
Maximum borrowings under revolving loan					82,000,000						30,000,000	75,000,000
Draw from revolving loan				5,400,000	56,600,000							71,000,000		26,000,000
Repayment of loan			45,000,000
Properties acquired			12						10	2
Aggregate commitment amount													75,000,000
Increase in aggregate commitment amount													100,000,000		200,000,000	10,000,000
Number of participating lenders													4
Revolving loan initial term													3 years
Line of credit facility maturity date						Dec. 24, 2014							Oct. 25, 2016
Interest rate swap amount			45,000,000			45,000,000
Current interest rate of interest rate of swap						5.41%							2.40%
Credit agreement description						Subject to two, one-year extension options (subject to the fulfillment of certain conditions), and required monthly interest-only payments.							The KeyBank Revolver has an initial term of three years, maturing on October 25, 2016, with two one-year extension options subject to certain conditions outlined further in the credit agreement for the KeyBank Revolver (the "Credit Agreement")
Reduction in aggregate commitments																10,000,000
Amount syndicated																25,000,000
Self storage properties													5
Other recourse debt													25,000,000
Other non-recourse debt													75,000,000
Percent of collateral properties used for aggregate borrowing capacity													60.00%
Debt Service Coverage Ratio													1.35
Total Leverage Ratio													60.00%
Minimum Tangible Net Worth													250,000,000
Minimum Interest Service Coverage Ratio													1.85
Minimum Fixed Charge Ratio													1.6
Ratio of varying rate Indebtedness													30.00%
Percentage of required Loan to Value Ratio													60.00%
Worth of portfolio					80,000,000
Amount outstanding under loan				82,000,000			45,000,000	55,000,000			20,000,000
Amount of monthly payments						$ 1,666,667
Line of credit facility, potential term of extension options						1 year
Line of credit facility, number of extension options						2
Weighted average interest rate of fixed rate debt	5.40%

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Summary of Quarterly Financial Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Total revenues	$ 23,132,944	$ 22,503,218	$ 21,292,574	$ 19,931,208	$ 19,407,941
Total operating expenses	19,105,230	19,315,207	17,229,995	16,667,044	16,557,885
Operating income	4,027,714	3,188,011	4,062,579	3,264,164	2,850,056
Net loss	(1,039,656)	(2,639,352)	(689,288)	(1,949,099)	(2,167,459)
Net loss attributable to the Company	$ (1,033,683)	$ (2,637,508)	$ (693,245)	$ (1,949,079)	$ (2,167,224)
Net loss per share-basic and diluted	$ (0.02)	$ (0.05)	$ (0.01)	$ (0.04)	$ (0.05)

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Organization

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Organization

Note 1. Organization

Strategic Storage Trust, Inc., a Maryland corporation (the “Company”), was formed on August 14, 2007 under the Maryland General Corporation Law for the purpose of engaging in the business of investing in self storage facilities. The Company’s year-end is December 31. As used in this report, “we” “us” and “our” refer to Strategic Storage Trust, Inc.

Strategic Capital Holdings, LLC, a Virginia limited liability company (our “Sponsor”), is our sponsor. Our Sponsor was formed on July 21, 2004 to engage in private structured offerings of limited partnerships and other entities with respect to the acquisition, management and disposition of commercial real estate assets. Our Sponsor owns a majority of Strategic Storage Holdings, LLC, which is the sole member of both our advisor and our property manager.

Our advisor is Strategic Storage Advisor, LLC, a Delaware limited liability company (our “Advisor”) which was formed on August 13, 2007. Our Advisor is responsible for managing our affairs on a day-to-day basis and identifying and making acquisitions and investments on our behalf under the terms of an advisory agreement we have with our Advisor (our “Advisory Agreement”). Some of the officers of our Advisor are also officers of our Sponsor and of us.

On August 24, 2007, our Advisor purchased 100 shares of our common stock for $1,000 and became our initial stockholder. Our Articles of Amendment and Restatement authorize 700,000,000 shares of common stock with a par value of $0.001 and 200,000,000 shares of preferred stock with a par value of $0.001.

Our operating partnership, Strategic Storage Operating Partnership, L.P., a Delaware limited partnership (our “Operating Partnership”), was formed on August 14, 2007. On August 24, 2007, our Advisor purchased a limited partnership interest in our Operating Partnership for $200,000 and on August 24, 2007, we contributed the initial $1,000 capital contribution we received to our Operating Partnership in exchange for the general partner interest. Our Operating Partnership owns, directly or indirectly through one or more special purpose entities, all of the self storage properties that we have acquired. As of March 31, 2014, we owned 98.87% of the limited partnership interests of our Operating Partnership. The remaining limited partnership interests are owned by our Advisor (0.03%) and unaffiliated third parties (1.10%). As the sole general partner of our Operating Partnership, we have the exclusive power to manage and conduct business of our Operating Partnership. We will conduct certain activities (such as selling packing supplies and locks and renting trucks or other moving equipment) through our taxable REIT subsidiaries (the “TRSs”), which are our wholly-owned subsidiaries.

Our property manager is Strategic Storage Property Management, LLC, a Delaware limited liability company (our “Property Manager”), which was formed in August 2007 to manage our properties. Our Property Manager derives substantially all of its income from the property management services it performs for us.

On March 17, 2008, we began our initial public offering of common stock (our “Initial Offering”). On May 22, 2008, we satisfied the minimum offering requirements of the Initial Offering and commenced formal operations. On September 16, 2011, we terminated the Initial Offering, having sold approximately 29 million shares for gross proceeds of approximately $289 million. On September 22, 2011, we commenced our follow-on public offering of stock for a maximum of 110,000,000 shares of common stock, consisting of 100,000,000 shares for sale to the public (our “Primary Offering”) and 10,000,000 shares for sale pursuant to our distribution reinvestment plan (collectively, our “Offering”). Our Offering terminated on September 22, 2013, having sold approximately 25 million shares for gross proceeds of approximately $256 million. On September 18, 2013, our board of directors amended and restated our distribution reinvestment plan, effective September 28, 2013, to make certain minor revisions related to the closing of our Offering. Following the termination of our Offering, on September 23, 2013, we filed with the SEC a Registration Statement on Form S-3, which incorporated the amended and restated distribution reinvestment plan and registered up to an additional $51.25 million in shares under our amended and restated distribution reinvestment plan (our “DRP Offering”). The DRP Offering may be terminated at any time upon 10 days’ prior written notice to stockholders. As of March 31, 2014, we had sold approximately 54.5 million shares of common stock for gross proceeds of approximately $554 million under all of our offerings.

In connection with the close-down of our Offering and in light of current market conditions, our board of directors has been and is continuing to explore certain strategic alternatives to create stockholder liquidity. Our management and our board of directors are also exploring the possibility of becoming self-administered. However, there can be no assurance that the exploration of any strategic alternatives will result in any particular outcome. In anticipation of potential strategic alternatives, on November 1, 2013, our board of directors approved the termination of our share redemption program, effective December 1, 2013.

Our dealer manager was Select Capital Corporation, a California corporation (our “Dealer Manager”). Our Dealer Manager was responsible for marketing our shares that were offered pursuant to the Offering. Our chief executive officer, through a wholly-owned limited liability company, owns a 15% non-voting equity interest in our Dealer Manager.

As we accepted subscriptions for shares of our common stock, we transferred substantially all of the net offering proceeds to our Operating Partnership as capital contributions in exchange for additional units of interest in our Operating Partnership. However, we were deemed to have made capital contributions in the amount of the gross offering proceeds received from investors, and our Operating Partnership was deemed to have simultaneously paid the sales commissions and other costs associated with the Offering. In addition, our Operating Partnership is structured to make distributions with respect to limited partnership units (except for Class D units) that will be equivalent to the distributions made to holders of our common stock. In March 2011, we adopted Amendment No. 1 to our Operating Partnership’s First Amended and Restated Limited Partnership Agreement, which established Class D Units, and our Operating Partnership issued approximately 120,000 Class D Units in connection with our acquisition of the Las Vegas VII and Las Vegas VIII properties. The Class D Units have all of the rights, powers, duties and preferences of our Operating Partnership’s other limited partnership units, except that they are subject to a distribution limit and the holders of the Class D Units have agreed to modified exchange rights that prevent them from exercising their exchange rights until the occurrence of a specified event (see Note 8). The distribution for the Class D units was initially zero and remained at zero through March 31, 2014. Finally, a limited partner in our Operating Partnership may later exchange his or her limited partnership units in our Operating Partnership for shares of our common stock at any time after one year following the date of issuance of their limited partnership units, subject to certain restrictions as outlined in the limited partnership agreement. Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as it is acting as our Advisor pursuant to our Advisory Agreement.

As of March 31, 2014, we owned 125 self storage facilities (124 were wholly owned and one was 98% owned by us) located in 17 states (Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Mississippi, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia) and Canada comprising approximately 79,455 units and approximately 10.4 million rentable square feet. As of March 31, 2014, we also had noncontrolling interests in two additional self storage facilities. Additionally, we have an interest in a net leased industrial property in California with 356,000 rentable square feet leased to a single tenant.

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Summary of Related Party Costs Incurred (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Additional Paid-in Capital
Selling commissions			$ 844,466
Dealer Manager fees			361,914
Reimbursement of offering costs			112,697
Total	3,763,098		3,668,560
Reimbursement of operating expenses
Expensed
Related party costs expensed	367,346	[1]	8,145	[1]
Asset management fees
Expensed
Related party costs expensed	1,512,268	[2]	1,175,632	[2]
Property management fees
Expensed
Related party costs expensed	1,374,942	[3],[4]	1,112,097	[3],[4]
Acquisition expenses
Expensed
Related party costs expensed	$ 508,542		$ 53,609

[1] During the three months ended March 31, 2013, our Advisor permanently waived certain reimbursable indirect costs, primarily payroll and related overhead costs, related to administrative and management services, totaling approximately $300,000. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. Such reimbursable indirect costs were not waived by the Advisor during the three months ended March 31, 2014, and totaled approximately $360,000.

[2] For the three months ended March 31, 2013 our Advisor permanently waived asset management fees related to the Stockade Portfolio of approximately $175,000. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. Such asset management fees were not waived by the Advisor during the three months ended March 31, 2014, and totaled approximately $175,000.

[3] During the three months ended March 31, 2013, property management fees include approximately $27,000 of fees paid to the sub-property manager of our Canadian properties. Such sub-property management agreement was terminated effective March 31, 2013 at a cost of approximately $28,000.

[4] During the three months ended March 31, 2014 and 2013, our Property Manager permanently waived certain costs, reimbursements and fees, including construction management fees, tenant insurance administration fees, accounting administrative fees and expense reimbursements related to certain off-site property management employees. Such amounts totaled approximately $182,500 and $150,000, respectively, and were waived permanently and accordingly, will not be paid to our Property Manager.

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Estimated Useful Lives used to Depreciate Real Property Assets (Detail)	3 Months Ended
	Mar. 31, 2014
Land [Member]
Property, Plant and Equipment [Line Items]
Standard Depreciable Life	Not Depreciated
Buildings | Minimum
Property, Plant and Equipment [Line Items]
Standard Depreciable Life	30 years
Buildings | Maximum
Property, Plant and Equipment [Line Items]
Standard Depreciable Life	35 years
Site Improvements | Minimum
Property, Plant and Equipment [Line Items]
Standard Depreciable Life	7 years
Site Improvements | Maximum
Property, Plant and Equipment [Line Items]
Standard Depreciable Life	15 years

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended			3 Months Ended		3 Months Ended		3 Months Ended	2 Months Ended	3 Months Ended
	Jan. 31, 2010	Mar. 31, 2014 sqft	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014 Westport Lax LLC sqft	Mar. 31, 2014 Fair Value, Inputs, Level 2	Mar. 31, 2014 Delaware statutory trust (DST) Investment	Mar. 31, 2014 Hawthorne Property	Mar. 31, 2014 Variable Interest Entities Acquired in 2009 Mergers Entity	Feb. 28, 2014 USA SF Self Storage, DST Vendor	Mar. 31, 2014 Personal Property Minimum	Mar. 31, 2014 Personal Property Maximum	Mar. 31, 2014 In-place lease intangibles	Dec. 31, 2013 In-place lease intangibles
Summary Of Significant Accounting Policies [Line Items]
Additional interest acquired in VIE as primary beneficiary	2.00%
Net interest in property	12.00%									12.00%
Number of third-party sellers										45
Percentage of voting interests acquired										86.00%
Beneficial interest owned after transactions										98.00%
Purchase price allocation to intangible assets		$ 1,280,000
Amount paid as acquisition fees		700,000	100,000
Impairment losses of long-lived assets		0	0
Number of interests in unconsolidated joint ventures deemed to be VIEs									2
Passive or limited partner interests in storage facilities							2
Aggregate investment		100,000
Percentage of ownership interest		1.49%
Area of lease to single tenant		356,000			356,000
Ownership interest in equity method investment					12.00%					98.00%
Carrying value of equity method investment					1,300,000
Ownership percentage of affiliates					78.00%
Preferred equity distribution percentage					10.00%
Amount of investment					6,900,000
Non-interest bearing receivable					400,000
Remaining interest owned by third party					10.00%
Maximum exposure to loss		27,400,000						18,800,000
Maturity date of guaranteed loan		Aug. 01, 2020
Estimated useful life											3 years	5 years
Accumulated amortization of lease intangibles													46,300,000	44,600,000
Accumulated amortization of deferred financing costs		6,100,000		5,900,000
Net loss recorded on foreign currency transactions		265,000	111,000
Derivative liabilities classified in accounts payable and accrued liabilities, at fair value						$ 247,000
Minimum percentage of ordinary taxable income to be distributed to stockholders		90.00%
Antidilutive unvested restricted stock not included in diluted weighted average shares		6,250	6,250

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Summary of Related Party Costs Incurred (Parenthetical) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Related Party Transaction [Line Items]
Reimbursable indirect costs waived		$ 300,000
Reimbursable indirect costs not waived	360,000
Property management fees to the sub-property manager of Canadian properties		27,000
Sub-property management agreement terminated		28,000
Property Manager waived certain costs	182,500	150,000
Stockade Portfolio
Related Party Transaction [Line Items]
Waived asset management fees		175,000
Asset management fees not waived	$ 175,000

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Fixed Rate Notes Payable (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Fixed Rate Secured Debt, Fair Value	$ 311,141,708	$ 311,362,132
Fixed Rate Secured Debt, Carrying Value	$ 299,850,852	$ 300,894,201

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Southwest Colonial, DST and USA SF Self Storage, DST Acquisitions - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended		3 Months Ended			2 Months Ended
	Jan. 31, 2010	Mar. 31, 2014 sqft Store	Dec. 31, 2013	Dec. 31, 2013 Southwest Colonial, DST	Mar. 31, 2014 Southwest Colonial, DST Store Property sqft Vendor	Dec. 31, 2013 Southwest Colonial, DST Vendor	Feb. 28, 2014 USA SF Self Storage, DST sqft Store Vendor	Mar. 31, 2014 USA SF Self Storage, DST
Business Acquisition [Line Items]
Beneficial interest acquired						100.00%	86.00%
Business acquisition purchase price						$ 27,900,000	$ 20,000,000
Business acquisition cash paid						9,000,000	5,700,000
Number of limited partnership units issued						151,300	245,000
Loan assumed as purchase consideration						16,700,000	10,200,000
Number of third-party sellers						50	45
Economic benefit and obligations percentage						100.00%
Acquisition fees paid to the Advisor		500,000		340,000			200,000
Number of operation units		79,455			2,805		1,120
Number of wholly-owned self storage facilities		124			5
Total rental area		10,400,000			392,000		76,000
Fixed interest rate on loan					6.36%
Term of loan					10 years
Maturity date of term loan					Jun. 30, 2018
Number of properties secured on loan					5
Business acquisition ownership percentage							98.00%
Net interest in property	12.00%						12.00%
Lease expiry date							Dec. 19, 2016
Lease expiry period							10 years
Real estate facilities, net		654,399,777	648,483,436					16,500,000
Secured debt		389,549,924	391,285,760					10,100,000
Noncontrolling interest		$ 4,417,277	$ 7,972,157					$ 100,000

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:
Net loss	$ (1,039,656)	$ (2,167,459)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	6,780,594	7,180,117
Noncash interest expense	(16,612)	41,363
Expense related to issuance of restricted stock	6,497	6,373
Equity in income of unconsolidated joint ventures	(199,857)	(203,478)
Distributions from unconsolidated joint ventures	236,100	217,172
Foreign currency exchange loss	264,581	111,460
Increase (decrease) in cash from changes in assets and liabilities:
Restricted cash	1,180,627	181,543
Other assets	153,128	342,849
Accounts payable and other accrued liabilities	(745,869)	(521,653)
Due to affiliates	(345,943)	(1,184,689)
Net cash flows provided by operating activities	6,273,590	4,003,598
Cash flows from investing activities:
Purchase of real estate	(11,585,000)
Additions to real estate facilities	(365,738)	(1,233,691)
Development and construction of real estate facilities	(1,447,448)	(2,624,782)
Deposits on acquisitions of real estate facilities	(226,283)	(100,000)
Additional investment in noncontrolling interests	(5,741,431)
Net cash flows used in investing activities	(19,365,900)	(3,958,473)
Cash flows from financing activities:
Proceeds from issuance of secured debt		4,489,051
Principal payments on secured debt	(1,076,412)	(856,809)
Repayment of secured debt		(7,928,861)
Deferred financing costs	(198,545)	(132,670)
Gross proceeds from issuance of common stock		12,314,355
Offering costs	(39,209)	(1,407,123)
Redemptions of common stock		(3,314,294)
Distributions paid	(5,195,123)	(4,460,503)
Distributions paid to noncontrolling interests	(93,807)	(68,522)
Escrow receivable		405,890
Due to affiliates	54,325	282,715
Net cash flows used in financing activities	(6,548,771)	(676,771)
Effect of exchange rate changes on cash	(28,660)	(31,335)
Decrease in cash and cash equivalents	(19,669,741)	(662,981)
Cash and cash equivalents, beginning of period	39,603,949	13,998,391
Cash and cash equivalents, end of period	19,934,208	13,335,410
Supplemental cash flow and non-cash transactions:
Cash paid for interest	4,709,627	4,618,387
Interest capitalized	79,150	124,791
Distributions payable	3,389,509	2,805,381
Issuance of shares pursuant to distribution reinvestment plan	4,512,649	3,521,241
Issuance of limited partnership units in our Operating Partnership in connection with additional investment in noncontrolling interests	2,120,000
Foreign currency translation adjustment - Real estate facilities, net	$ (1,507,440)	$ (651,557)

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Summary of Activity in Real Estate Facilities (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Real estate facilities
Balance at beginning of year	$ 694,138,787
Facility acquisitions	10,305,000
Impact of foreign exchange rate changes	(1,507,440)	(651,557)
Improvements and additions	317,331
Balance at end of year	703,253,678
Accumulated depreciation
Balance at beginning of year	(46,432,155)
Depreciation	(4,669,073)
Balance at end of year	$ (51,101,228)

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Interest Rate Derivative Designated as Cash Flow Hedge of Interest Rate Risk (Detail) (Interest Rate Swap, USD $)	Mar. 31, 2014 Derivative
Interest Rate Swap
Derivative [Line Items]
Number of instruments	1
Notional	$ 45,000,000

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Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 19,934,208	$ 39,603,949
Real estate facilities:
Land	196,241,963	194,033,413
Buildings	462,239,458	456,372,075
Site improvements	44,772,257	43,733,299
Real estate facilities, gross	703,253,678	694,138,787
Accumulated depreciation	(51,101,228)	(46,432,155)
Real estate facilities, net of depreciation	652,152,450	647,706,632
Construction in process	2,247,327	776,804
Real estate facilities, net	654,399,777	648,483,436
Deferred financing costs, net of accumulated amortization	5,700,633	5,798,963
Intangible assets, net of accumulated amortization	10,064,257	10,447,513
Restricted cash	5,325,485	6,506,112
Investments in unconsolidated joint ventures	8,626,120	8,662,363
Other assets	3,732,008	3,777,167
Total assets	707,782,488	723,279,503
LIABILITIES AND EQUITY
Secured debt	389,549,924	391,285,760
Accounts payable and accrued liabilities	9,089,736	9,917,437
Due to affiliates	1,412,376	1,741,518
Distributions payable	3,389,509	3,355,882
Total liabilities	403,441,545	406,300,597
Commitments and contingencies (Note 8)
Strategic Storage Trust, Inc. equity:
Preferred Stock, $0.001 par value; 200,000,000 shares authorized; none issued and outstanding at March 31, 2014 and December 31, 2013, respectively
Common stock, $0.001 par value; 700,000,000 shares authorized; 56,576,672 and 56,136,435 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	56,576	56,136
Additional paid-in capital	489,211,016	487,032,573
Distributions	(116,816,690)	(107,090,016)
Accumulated deficit	(70,409,884)	(69,376,201)
Accumulated other comprehensive loss	(2,117,352)	(1,615,743)
Total Strategic Storage Trust, Inc. equity	299,923,666	309,006,749
Noncontrolling interest in our Operating Partnership	4,289,255	2,289,379
Other noncontrolling interests	128,022	5,682,778
Total noncontrolling interests	4,417,277	7,972,157
Total equity	304,340,943	316,978,906
Total liabilities and equity	$ 707,782,488	$ 723,279,503

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Commitments and Contingencies - Additional Information (Detail) (USD $)	3 Months Ended				0 Months Ended	3 Months Ended	0 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014 SF Bay Area - San Lorenzo	Mar. 31, 2013 SF Bay Area - San Lorenzo	Sep. 28, 2013 Distribution Reinvestment Plan	Mar. 31, 2014 Distribution Reinvestment Plan	Sep. 28, 2013 Distribution Reinvestment Plan Maximum	Sep. 23, 2013 Distribution Reinvestment Plan Maximum
Commitments and Contingencies [Line Items]
Previous purchase price per share						$ 9.50
Previous purchase price percentage of fair market value of a share						95.00%
Percentage of offering price under distribution reinvestment plan						95.00%
Current purchase price per share						$ 10.25
Amendment, suspension or termination period of share					10 days
Additional shares registered	$ 4,512,649	$ 3,521,241					$ 51,250,000	$ 51,250,000
Plan effective date						Sep. 28, 2013
Shares issued pursuant to distribution reinvestment plan						900,000
Sales commission or dealer manager fee						0
Minimum return required on property contributed for class D unit holders to modify exchange rights	$ 0.70
Limited partnership unit, conversion description	The limited partners of our Operating Partnership have the right to cause our Operating Partnership to redeem their limited partnership units for cash equal to the value of an equivalent number of our shares, or, at our option, we may purchase their limited partnership units by issuing one share of our common stock for each limited partnership unit redeemed.
Remaining term of lease			21 years
Rent expense			37,000	37,000
Minimum lease payment 2014			100,000
Minimum lease payment 2015			139,000
Minimum lease payment 2016			139,000
Minimum lease payment 2017			139,000
Minimum lease payment 2018			139,000
Minimum lease payment thereafter			$ 2,414,000

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Consolidated Statement of Equity (Unaudited) (USD $)	Total	Total Strategic Storage Trust, Inc. Equity [Member]	Common Stock	Additional Paid-in Capital	Distributions	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests
Beginning Balance at Dec. 31, 2013	$ 316,978,906	$ 309,006,749	$ 56,136	$ 487,032,573	$ (107,090,016)	$ (69,376,201)	$ (1,615,743)	$ 7,972,157
Beginning Balance (in shares) at Dec. 31, 2013			56,136,435
Offering costs	(39,209)	(4,714)		(4,714)				(34,495)
Distributions ($0.70 per share)	(9,726,674)	(9,726,674)			(9,726,674)
Distributions to noncontrolling interests	(108,530)							(108,530)
Issuance of shares for distribution reinvestment plan (in shares)			440,237
Issuance of shares for distribution reinvestment plan	4,512,649	4,512,649	440	4,512,209
Reduction of noncontrolling interests through additional investment	(7,861,431)	(2,335,549)		(2,335,549)				(5,525,882)
Issuance of limited partnership units in our Operating Partnership	2,120,000							2,120,000
Stock based compensation expense	6,497	6,497		6,497
Net loss attributable to Strategic Storage Trust, Inc.	(1,033,683)	(1,033,683)				(1,033,683)
Net loss attributable to the noncontrolling interests	(5,973)							(5,973)
Foreign currency translation adjustment	(557,825)	(557,825)					(557,825)
Change in fair value of interest rate swap	56,216	56,216					56,216
Ending Balance at Mar. 31, 2014	$ 304,340,943	$ 299,923,666	$ 56,576	$ 489,211,016	$ (116,816,690)	$ (70,409,884)	$ (2,117,352)	$ 4,417,277
Ending Balance (in shares) at Mar. 31, 2014			56,576,672

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Summary of Secured Debt (Detail) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2014		Dec. 31, 2013
Debt Instrument [Line Items]
Carrying value	$ 388,652,699	[1]
Total secured debt	389,549,924		391,285,760
Secured Debt
Debt Instrument [Line Items]
Net fair value adjustment	897,225		913,837
Prudential Portfolio Loan
Debt Instrument [Line Items]
Interest Rate	5.42%	[2],[3]
Maturity date	Sep. 05, 2019	[2],[3]
Prudential Portfolio Loan | Secured Debt
Debt Instrument [Line Items]
Carrying value	30,914,630	[2],[3]	31,044,708	[2],[3]
Dufferin - Toronto - Ontario, Canada
Debt Instrument [Line Items]
Interest Rate	5.22%	[4]
Maturity date	May 15, 2014	[4]
Dufferin - Toronto - Ontario, Canada | Secured Debt
Debt Instrument [Line Items]
Carrying value	5,891,665	[4]	6,144,911	[4]
ING Loan
Debt Instrument [Line Items]
Interest Rate	5.47%	[5]
Maturity date	Jul. 01, 2021	[5]
ING Loan | Secured Debt
Debt Instrument [Line Items]
Carrying value	21,182,173	[5]	21,265,500	[5]
Mississauga - Ontario, Canada
Debt Instrument [Line Items]
Interest Rate	5.00%	[6]
Maturity date	Oct. 31, 2014	[6]
Mississauga - Ontario, Canada | Secured Debt
Debt Instrument [Line Items]
Carrying value	6,539,491	[6]	6,763,769	[6]
KeyBank Revolver
Debt Instrument [Line Items]
Interest Rate	1.66%	[7]
Maturity date	Oct. 25, 2016	[7]
KeyBank Revolver | Secured Debt
Debt Instrument [Line Items]
Carrying value	71,000,000	[7]	71,000,000	[7]
Citi Las Vegas Loan
Debt Instrument [Line Items]
Interest Rate	5.26%	[8]
Maturity date	Jun. 06, 2021	[8]
Citi Las Vegas Loan | Secured Debt
Debt Instrument [Line Items]
Carrying value	7,404,539	[8]	7,434,590	[8]
Chantilly - VA
Debt Instrument [Line Items]
Interest Rate	4.75%	[9]
Maturity date	Jun. 06, 2022	[9]
Chantilly - VA | Secured Debt
Debt Instrument [Line Items]
Carrying value	3,407,609	[9]	3,421,797	[9]
Montgomery
Debt Instrument [Line Items]
Interest Rate	6.42%
Maturity date	Jul. 01, 2016
Montgomery | Secured Debt
Debt Instrument [Line Items]
Carrying value	2,673,161		2,693,364
Seabrook
Debt Instrument [Line Items]
Interest Rate	5.73%
Maturity date	Jan. 01, 2016
Seabrook | Secured Debt
Debt Instrument [Line Items]
Carrying value	4,424,518		4,444,137
Greenville
Debt Instrument [Line Items]
Interest Rate	5.65%
Maturity date	Mar. 01, 2016
Greenville | Secured Debt
Debt Instrument [Line Items]
Carrying value	2,217,170		2,226,986
Kemah
Debt Instrument [Line Items]
Interest Rate	6.20%
Maturity date	Jun. 01, 2016
Kemah | Secured Debt
Debt Instrument [Line Items]
Carrying value	8,698,412		8,732,981
Memphis
Debt Instrument [Line Items]
Interest Rate	5.67%
Maturity date	Dec. 01, 2016
Memphis | Secured Debt
Debt Instrument [Line Items]
Carrying value	2,454,753		2,465,045
Tallahassee
Debt Instrument [Line Items]
Interest Rate	6.16%
Maturity date	Aug. 01, 2016
Tallahassee | Secured Debt
Debt Instrument [Line Items]
Carrying value	7,420,765		7,446,178
Houston
Debt Instrument [Line Items]
Interest Rate	5.67%
Maturity date	Feb. 01, 2017
Houston | Secured Debt
Debt Instrument [Line Items]
Carrying value	1,970,954		1,981,095
San Francisco
Debt Instrument [Line Items]
Interest Rate	5.84%
Maturity date	Jan. 01, 2017
San Francisco | Secured Debt
Debt Instrument [Line Items]
Carrying value	10,220,127		10,256,163
Lake Forest
Debt Instrument [Line Items]
Interest Rate	6.47%
Maturity date	Oct. 01, 2017
Lake Forest | Secured Debt
Debt Instrument [Line Items]
Carrying value	18,000,000		18,000,000
Las Vegas II
Debt Instrument [Line Items]
Interest Rate	5.72%
Maturity date	Jun. 01, 2017
Las Vegas II | Secured Debt
Debt Instrument [Line Items]
Carrying value	1,506,686		1,511,958
Pearland
Debt Instrument [Line Items]
Interest Rate	5.93%
Maturity date	Jul. 01, 2017
Pearland | Secured Debt
Debt Instrument [Line Items]
Carrying value	3,426,920		3,438,473
Daphne
Debt Instrument [Line Items]
Interest Rate	5.47%
Maturity date	Aug. 01, 2020
Daphne | Secured Debt
Debt Instrument [Line Items]
Carrying value	1,338,755		1,381,213
Mesa
Debt Instrument [Line Items]
Interest Rate	5.38%
Maturity date	Apr. 01, 2015
Mesa | Secured Debt
Debt Instrument [Line Items]
Carrying value	2,949,918		2,968,060
Riverdale
Debt Instrument [Line Items]
Interest Rate	4.00%	[10]
Maturity date	May 14, 2014	[10]
Riverdale | Secured Debt
Debt Instrument [Line Items]
Carrying value	4,800,000	[10]	4,800,000	[10]
Citi Loan
Debt Instrument [Line Items]
Interest Rate	5.77%	[11]
Maturity date	Feb. 06, 2021	[11]
Citi Loan | Secured Debt
Debt Instrument [Line Items]
Carrying value	27,971,458	[11]	28,077,873	[11]
Bank of America Loan - 1
Debt Instrument [Line Items]
Interest Rate	5.18%	[12]
Maturity date	Nov. 01, 2015	[12]
Bank of America Loan - 1 | Secured Debt
Debt Instrument [Line Items]
Carrying value	4,300,785	[12]	4,321,842	[12]
Bank of America Loan - 2
Debt Instrument [Line Items]
Interest Rate	5.18%	[13]
Maturity date	Nov. 01, 2015	[13]
Bank of America Loan - 2 | Secured Debt
Debt Instrument [Line Items]
Carrying value	6,516,842	[13]	6,548,748	[13]
Bank of America Loan - 3
Debt Instrument [Line Items]
Interest Rate	5.18%	[14]
Maturity date	Nov. 01, 2015	[14]
Bank of America Loan - 3 | Secured Debt
Debt Instrument [Line Items]
Carrying value	11,713,354	[14]	11,770,704	[14]
Prudential - Long Beach
Debt Instrument [Line Items]
Interest Rate	5.27%	[15]
Maturity date	Sep. 05, 2019	[15]
Prudential - Long Beach | Secured Debt
Debt Instrument [Line Items]
Carrying value	6,506,700	[15]	6,533,640	[15]
SF Bay Area - Vallejo
Debt Instrument [Line Items]
Interest Rate	6.04%	[16]
Maturity date	Jun. 01, 2014	[16]
SF Bay Area - Vallejo | Secured Debt
Debt Instrument [Line Items]
Carrying value	4,269,522	[16]	4,295,098	[16]
Ladera Ranch
Debt Instrument [Line Items]
Interest Rate	5.84%
Maturity date	Jun. 01, 2016
Ladera Ranch | Secured Debt
Debt Instrument [Line Items]
Carrying value	6,656,252		6,691,304
Las Vegas V
Debt Instrument [Line Items]
Interest Rate	5.02%
Maturity date	Jul. 01, 2015
Las Vegas V | Secured Debt
Debt Instrument [Line Items]
Carrying value	1,618,517		1,628,783
Brampton - Ontario, Canada
Debt Instrument [Line Items]
Interest Rate	5.25%	[17]
Maturity date	Jun. 30, 2016	[17]
Brampton - Ontario, Canada | Secured Debt
Debt Instrument [Line Items]
Carrying value	6,267,916	[17]	6,482,879	[17]
Citi Stockade Loan - 1
Debt Instrument [Line Items]
Interest Rate	4.60%	[18]
Maturity date	Oct. 01, 2022	[18]
Citi Stockade Loan - 1 | Secured Debt
Debt Instrument [Line Items]
Carrying value	18,200,000	[18]	18,200,000	[18]
KeyBank CMBS Loan
Debt Instrument [Line Items]
Interest Rate	4.65%	[19]
Maturity date	Nov. 01, 2022	[19]
KeyBank CMBS Loan | Secured Debt
Debt Instrument [Line Items]
Carrying value	30,840,245	[19]	30,960,278	[19]
Citi Stockade Loan - 2
Debt Instrument [Line Items]
Interest Rate	4.61%	[20]
Maturity date	Nov. 06, 2022	[20]
Citi Stockade Loan - 2 | Secured Debt
Debt Instrument [Line Items]
Carrying value	19,362,500	[20]	19,362,500	[20]
Bank of America Loan - 4
Debt Instrument [Line Items]
Interest Rate	6.33%	[21]
Maturity date	Oct. 01, 2017	[21]
Bank of America Loan - 4 | Secured Debt
Debt Instrument [Line Items]
Carrying value	6,374,856	[21]	6,394,362	[21]
Citi SF Bay Area - Morgan Hill Loan
Debt Instrument [Line Items]
Interest Rate	4.08%	[22]
Maturity date	Mar. 06, 2023	[22]
Citi SF Bay Area - Morgan Hill Loan | Secured Debt
Debt Instrument [Line Items]
Carrying value	3,000,000	[22]	3,000,000	[22]
John Hancock Loan
Debt Instrument [Line Items]
Interest Rate	6.36%	[23]
Maturity date	Jun. 01, 2018	[23]
John Hancock Loan | Secured Debt
Debt Instrument [Line Items]
Carrying value	$ 16,611,506	[23]	$ 16,682,984	[23]

[1] This table reflects both the revised terms of the Dufferin - Toronto Loan and the refinance of the Riverdale and SF Bay Area - Vallejo loans through the KeyBank Revolver. See Note 11 for additional discussion.

[2] This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Manassas, Marietta, Erlanger, Pittsburgh, Weston, Fort Lee, Oakland Park, Tempe, Phoenix II, Davie and Las Vegas I). Each of the individual loans is cross-collateralized by the other ten.

[3] Ten of the loans in this portfolio loan bear an interest rate of 5.43%, and the remaining loan bears an interest rate of 5.31%. The weighted average interest rate of this portfolio is 5.42%.

[4] On January 12, 2011, we encumbered the Dufferin property with a Canadian dollar denominated loan which bears interest at the bank's floating rate plus 3.0% (subject to a reduction in certain circumstances). The rate in effect at March 31, 2014 was 5.22%. This loan was refinanced in May 2014, thereby extending the maturity date to April 15, 2017 (see Note 11).

[5] This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Peachtree City, Buford, Jonesboro, Ellenwood, Marietta II, Collegeville, Skippack, Ballston Spa, Trenton, Fredericksburg and Sandston). Each of the individual loans had an original term of 30 years and matures on July 1, 2041. ING has the option to require payment of the loan in full every five years beginning on July 1, 2021.

[6] In December 2011, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank's floating rate, plus 2% (totaling 5.0% as of March 31, 2014).

[7] On October 28, 2013, through our Operating Partnership and certain property-owning special purpose entities wholly-owned by our Operating Partnership, we entered into the KeyBank Revolver, which matures on October 25, 2016. Such loan encumbers the Homeland Portfolio properties, the Knoxville Portfolio properties and five other previously unencumbered properties (Gulf Breeze II, El Paso I, Toms River II, North Charleston and Phoenix I). This loan is a LIBOR based variable rate loan, and such rate is based on 30-day LIBOR, which including the applicable spread equaled an interest rate of 1.66% as of March 31, 2014. The interest rate swap with a notional amount of $45 million that was originally entered into in connection with the Second Restated KeyBank Loan remains outstanding; inclusive of the interest rate swap, the effective fixed interest rate as of March 31, 2014 was approximately 2.4%. For additional discussion, see "KeyBank Revolver" below.

[8] This loan encumbers the Las Vegas VII and Las Vegas VIII properties. The net book value of the encumbered properties as of March 31, 2014 was approximately $9.0 million. Such amounts are only available to satisfy the obligations of this loan.

[9] The net book value of the Chantilly property as of March 31, 2014 was approximately $6.8 million. Such amounts are only available to satisfy the obligations of this loan.

[10] On April 28, 2014, this loan was repaid in full and the related property is now encumbered under the KeyBank Revolver (see Note 11).

[11] This portfolio loan encumbers 11 properties (Biloxi, Gulf Breeze I, Alpharetta, Florence II, Jersey City, West Mifflin, Chicago - 95th St., Chicago - Western Ave., Chicago - Ogden Ave., Chicago - Roosevelt Rd. and Las Vegas IV). The net book value of the encumbered properties as of March 31, 2014 was approximately $49.9 million. Such amounts are only available to satisfy the obligations of this loan.

[12] This loan encumbers the Lawrenceville I and II properties.

[13] This loan encumbers the Concord, Hickory and Morganton properties.

[14] This loan encumbers the El Paso II, III, IV & V properties as well as the Dallas property.

[15] This loan is cross-collateralized by the 11 properties discussed in footnote (2) to this table.

[16] On May 1, 2014, this loan was repaid in full and the related property is now encumbered under the KeyBank Revolver (see Note 11).

[17] In September 2012, we entered into a Canadian dollar denominated construction loan with an aggregate potential commitment amount of approximately $9.2 million. Such loan bears interest at the bank's floating rate, plus 2.25% (totaling 5.25% as of March 31, 2014).

[18] This portfolio loan encumbers 10 properties (Savannah I, Savannah II, Columbia, Lexington I, Stuart I, Lexington II, Stuart II, Bluffton, Wilmington Island and Myrtle Beach). The net book value of the encumbered properties as of March 31, 2014 was approximately $34.2 million. Such amounts are only available to satisfy the obligations of this loan.

[19] This portfolio loan encumbers nine properties (Los Angeles-La Cienega, Las Vegas III, Las Vegas VI, Hampton, SF Bay Area-Gilroy, Toms River, Crescent Springs, Florence and Walton). The net book value of the encumbered properties as of March 31, 2014 was approximately $41.1 million. Such amounts are only available to satisfy the obligations of this loan.

[20] This portfolio loan encumbers six properties (Mt. Pleasant I, Charleston I, Charleston II, Mt. Pleasant II, Charleston III, and Mt. Pleasant III). The net book value of the encumbered properties as of March 31, 2014 was approximately $36.6 million. Such amounts are only available to satisfy the obligations of this loan.

[21] This loan encumbers the Ridgeland and Canton properties.

[22] This loan encumbers the Morgan Hill property. The net book value of the encumbered property as of March 31, 2014 was approximately $5.2 million. Such amount is only available to satisfy the obligations of this loan.

[23] This loan encumbers the Midland I, Coppell, Midland II, Arlington and Weatherford properties.

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Real Estate Facilities (Tables)

3 Months Ended

Mar. 31, 2014

Real Estate [Abstract]

Summary of Activity in Real Estate Facilities

The following summarizes our activity in real estate facilities during the three months ended March 31, 2014:

Real estate facilities
Balance at December 31, 2013	$	694,138,787
Facility acquisitions		10,305,000
Impact of foreign exchange rate changes		(1,507,440	)
Improvements and additions		317,331
Balance at March 31, 2014	$	703,253,678
Accumulated depreciation
Balance at December 31, 2013	$	(46,432,155	)
Depreciation		(4,669,073	)
Balance at March 31, 2014	$	(51,101,228	)

Purchase Price Allocation for Acquisitions

The following table summarizes the preliminary purchase price allocation for our acquisitions for the three months ended March 31, 2014:

Property	Acquisition Date	Real Estate Assets		Intangibles		Total(1)		2014 Revenue(2)		2014 Property Operating Income(2)(3)
Hampton II – VA	3/5/2014	$	5,930,000	$	770,000	$	6,700,000	$	52,432	$	32,266
Chandler – AZ	3/27/2014		4,375,000		510,000		4,885,000		6,114		3,422
Total		$	10,305,000	$	1,280,000	$	11,585,000	$	58,546	$	35,688

⁽¹⁾  The allocations noted above are based on a preliminary determination of the fair value of the total consideration provided. Such valuations may change as we complete our purchase price accounting.

⁽²⁾  The operating results of the facilities acquired above have been included in the Company’s statement of operations since their respective acquisition date.

⁽³⁾  Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization and acquisition expenses.

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Summary of Secured Debt (Parenthetical) (Detail) (USD $)	3 Months Ended		3 Months Ended		0 Months Ended	3 Months Ended								3 Months Ended			3 Months Ended						3 Months Ended												3 Months Ended
	Mar. 31, 2014 Property Loan	Mar. 31, 2014 Knoxville Portfolio Property	Mar. 31, 2014 Prudential Portfolio Loan Loan		Jan. 12, 2011 Dufferin - Toronto - Ontario, Canada	Mar. 31, 2014 Dufferin - Toronto - Ontario, Canada		Mar. 31, 2014 Dufferin - Toronto - Ontario, Canada Maximum	Mar. 31, 2014 ING Loan		Mar. 31, 2014 Mississauga - Ontario, Canada		Dec. 31, 2011 Mississauga - Ontario, Canada	Mar. 31, 2014 KeyBank Revolver		Oct. 28, 2013 KeyBank Revolver	Mar. 31, 2014 Citi Las Vegas Loan		Mar. 31, 2014 Chantilly - VA		Mar. 31, 2014 Canadian dollars denominated loan	Sep. 30, 2012 Canadian dollars denominated loan	Mar. 31, 2014 Citi Loan Property		Mar. 31, 2014 Citi Stockade Loan - 1 Property		Mar. 31, 2014 KeyBank CMBS Loan Property		Mar. 31, 2014 Citi Stockade Loan - 2 Property		Mar. 31, 2014 Citi SF Bay Area - Morgan Hill Loan		Mar. 31, 2014 Second Restated KeyBank Loan	Oct. 28, 2013 Second Restated KeyBank Loan	Mar. 31, 2014 SF Bay Area - Vallejo KeyBank Revolver	Mar. 31, 2014 Riverdale KeyBank Revolver
Debt Instrument [Line Items]
Numbers of discrete mortgage loans related to prudential portfolio loan	11
Numbers of properties related to prudential portfolio loan	11
Number of loans cross-collateralized with each respective loan	10
Repayment date of loan																																			May 1, 2014	April 28, 2014
Number of loans with an interest rate of 5.43%			10
Interest rate			5.43%								5.00%										5.25%
Interest rate of remaining loan in portfolio			5.31%
Weighted average interest rate of portfolio	5.40%		5.42%
Interest rate premium over bank's floating rate					3.00%						2.00%										2.25%
Effective interest rate						5.22%
Maturity date			Sep. 05, 2019	[1],[2]		May 15, 2014	[3]	Apr. 15, 2017	Jul. 01, 2021	[4]	Oct. 31, 2014	[5]		Oct. 25, 2016	[6]		Jun. 06, 2021	[7]	Jun. 06, 2022	[8]			Feb. 06, 2021	[9]	Oct. 01, 2022	[10]	Nov. 01, 2022	[11]	Nov. 06, 2022	[12]	Mar. 06, 2023	[13]
Number of existing encumbered properties																							11		10		9		6
Net book value of encumbered properties																	$ 9,000,000		$ 6,800,000				$ 49,900,000		$ 34,200,000		$ 41,100,000		$ 36,600,000		$ 5,200,000
Prudential long beach cross collateralized by numbers of properties related to prudential portfolio loan	11
Numbers of properties related to ING loan	11
Numbers of discrete mortgage loans related to ING loan	11
Term of each individual loans									30 years
Maturity date of ING Loan									Jul. 01, 2041
Payment of loan, successive period after commencement date									5 years
Commitment amount													9,200,000	75,000,000								9,200,000
Revolving loan maturity date														Oct. 25, 2016																			Dec. 24, 2014
Interest rate of spread														1.66%		1.66%
Notional amount for interest rate swap																																	$ 45,000,000	$ 45,000,000
Effective interest rate on hedged portion of debt														2.40%
Number of unencumbered properties		5

[1] This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Manassas, Marietta, Erlanger, Pittsburgh, Weston, Fort Lee, Oakland Park, Tempe, Phoenix II, Davie and Las Vegas I). Each of the individual loans is cross-collateralized by the other ten.

[2] Ten of the loans in this portfolio loan bear an interest rate of 5.43%, and the remaining loan bears an interest rate of 5.31%. The weighted average interest rate of this portfolio is 5.42%.

[3] On January 12, 2011, we encumbered the Dufferin property with a Canadian dollar denominated loan which bears interest at the bank's floating rate plus 3.0% (subject to a reduction in certain circumstances). The rate in effect at March 31, 2014 was 5.22%. This loan was refinanced in May 2014, thereby extending the maturity date to April 15, 2017 (see Note 11).

[4] This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Peachtree City, Buford, Jonesboro, Ellenwood, Marietta II, Collegeville, Skippack, Ballston Spa, Trenton, Fredericksburg and Sandston). Each of the individual loans had an original term of 30 years and matures on July 1, 2041. ING has the option to require payment of the loan in full every five years beginning on July 1, 2021.

[5] In December 2011, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank's floating rate, plus 2% (totaling 5.0% as of March 31, 2014).

[6] On October 28, 2013, through our Operating Partnership and certain property-owning special purpose entities wholly-owned by our Operating Partnership, we entered into the KeyBank Revolver, which matures on October 25, 2016. Such loan encumbers the Homeland Portfolio properties, the Knoxville Portfolio properties and five other previously unencumbered properties (Gulf Breeze II, El Paso I, Toms River II, North Charleston and Phoenix I). This loan is a LIBOR based variable rate loan, and such rate is based on 30-day LIBOR, which including the applicable spread equaled an interest rate of 1.66% as of March 31, 2014. The interest rate swap with a notional amount of $45 million that was originally entered into in connection with the Second Restated KeyBank Loan remains outstanding; inclusive of the interest rate swap, the effective fixed interest rate as of March 31, 2014 was approximately 2.4%. For additional discussion, see "KeyBank Revolver" below.

[7] This loan encumbers the Las Vegas VII and Las Vegas VIII properties. The net book value of the encumbered properties as of March 31, 2014 was approximately $9.0 million. Such amounts are only available to satisfy the obligations of this loan.

[8] The net book value of the Chantilly property as of March 31, 2014 was approximately $6.8 million. Such amounts are only available to satisfy the obligations of this loan.

[9] This portfolio loan encumbers 11 properties (Biloxi, Gulf Breeze I, Alpharetta, Florence II, Jersey City, West Mifflin, Chicago - 95th St., Chicago - Western Ave., Chicago - Ogden Ave., Chicago - Roosevelt Rd. and Las Vegas IV). The net book value of the encumbered properties as of March 31, 2014 was approximately $49.9 million. Such amounts are only available to satisfy the obligations of this loan.

[10] This portfolio loan encumbers 10 properties (Savannah I, Savannah II, Columbia, Lexington I, Stuart I, Lexington II, Stuart II, Bluffton, Wilmington Island and Myrtle Beach). The net book value of the encumbered properties as of March 31, 2014 was approximately $34.2 million. Such amounts are only available to satisfy the obligations of this loan.

[11] This portfolio loan encumbers nine properties (Los Angeles-La Cienega, Las Vegas III, Las Vegas VI, Hampton, SF Bay Area-Gilroy, Toms River, Crescent Springs, Florence and Walton). The net book value of the encumbered properties as of March 31, 2014 was approximately $41.1 million. Such amounts are only available to satisfy the obligations of this loan.

[12] This portfolio loan encumbers six properties (Mt. Pleasant I, Charleston I, Charleston II, Mt. Pleasant II, Charleston III, and Mt. Pleasant III). The net book value of the encumbered properties as of March 31, 2014 was approximately $36.6 million. Such amounts are only available to satisfy the obligations of this loan.

[13] This loan encumbers the Morgan Hill property. The net book value of the encumbered property as of March 31, 2014 was approximately $5.2 million. Such amount is only available to satisfy the obligations of this loan.

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Derivative Instruments - Cash Flow Hedge of Interest Rate Risk (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Interest Rate Derivative Designated as Cash Flow Hedge of Interest Rate Risk

As of March 31, 2014, we had one derivative outstanding, which was an interest rate derivative that was designated as a cash flow hedge of interest rate risk:

Interest Rate Derivative	Number of Instruments		Notional
Interest Rate Swap		1	$	45,000,000

Fair Value of Derivative Financial Instruments as well as Classification on Balance Sheet

The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheet as of March 31, 2014 and December 31, 2013:

	As of March 31, 2014			As of December 31, 2013
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate derivatives
Assets	Other assets	$	—	Other assets	$	—
Liabilities	Accounts payable and accrued liabilities	$	246,835	Accounts payable and accrued liabilities	$	303,051

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Consolidated Statement of Equity (Unaudited) (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2014
Statement Of Stockholders Equity [Abstract]
Distributions, per share	$ 0.70

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Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	200,000,000	200,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	700,000,000	700,000,000
Common stock, shares issued	56,576,672	56,136,435
Common stock, shares outstanding	56,576,672	56,136,435

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Declaration of Distributions

3 Months Ended

Mar. 31, 2014

Text Block [Abstract]

Declaration of Distributions

Note 9. Declaration of Distributions

On March 20, 2014, our board of directors declared a distribution rate for the second quarter of 2014 of $0.001917808 per day per share on the outstanding shares of common stock payable to stockholders of record of such shares as shown on our books at the close of business on each day during the period, commencing on April 1, 2014 and continuing on each day thereafter through and including June 30, 2014.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2014	May 13, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Entity Registrant Name	Strategic Storage Trust, Inc.
Entity Central Index Key	0001410567
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		56,728,748

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Selected Quarterly Data

3 Months Ended

Mar. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Data

Note 10. Selected Quarterly Data

The following is a summary of quarterly financial information for the periods shown below:

	Three months ended
	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013			March 31, 2014
Total revenues	$	19,407,941		$	19,931,208		$	21,292,574		$	22,503,218		$	23,132,944
Total operating expenses	$	16,557,885		$	16,667,044		$	17,229,995		$	19,315,207		$	19,105,230
Operating income	$	2,850,056		$	3,264,164		$	4,062,579		$	3,188,011		$	4,027,714
Net loss	$	(2,167,459	)	$	(1,949,099	)	$	(689,288	)	$	(2,639,352	)	$	(1,039,656	)
Net loss attributable to the Company	$	(2,167,224	)	$	(1,949,079	)	$	(693,245	)	$	(2,637,508	)	$	(1,033,683	)
Net loss per share-basic and diluted	$	(0.05	)	$	(0.04	)	$	(0.01	)	$	(0.05	)	$	(0.02	)

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Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenues:
Self storage rental revenue	$ 22,443,368	$ 18,809,769
Ancillary operating revenue	689,576	598,172
Total revenues	23,132,944	19,407,941
Operating expenses:
Property operating expenses	7,792,740	6,713,281
Property operating expenses - affiliates	2,887,210	2,287,729
General and administrative	1,187,223	694,762
Depreciation	4,829,150	4,095,536
Intangible amortization expense	1,663,256	2,689,992
Property acquisition expenses - affiliates	508,542	53,609
Other property acquisition expenses	237,109	22,976
Total operating expenses	19,105,230	16,557,885
Operating income	4,027,714	2,850,056
Other income (expense):
Interest expense	(4,620,158)	(4,664,830)
Deferred financing amortization expense	(288,188)	(394,589)
Equity in earnings of real estate ventures	200,447	223,371
Other	(359,471)	(181,467)
Net loss	(1,039,656)	(2,167,459)
Net loss attributable to the noncontrolling interests in our Operating Partnership	8,584	11,066
Net income attributable to other noncontrolling interests	(2,611)	(10,831)
Net loss attributable to Strategic Storage Trust, Inc.	$ (1,033,683)	$ (2,167,224)
Net loss per share - basic	$ (0.02)	$ (0.05)
Net loss per share - diluted	$ (0.02)	$ (0.05)
Weighted average shares outstanding - basic	56,357,846	46,700,850
Weighted average shares outstanding - diluted	56,357,846	46,700,850

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Real Estate Facilities

3 Months Ended

Mar. 31, 2014

Real Estate [Abstract]

Real Estate Facilities

Note 4. Real Estate Facilities

The following summarizes our activity in real estate facilities during the three months ended March 31, 2014:

Real estate facilities
Balance at December 31, 2013	$	694,138,787
Facility acquisitions		10,305,000
Impact of foreign exchange rate changes		(1,507,440	)
Improvements and additions		317,331
Balance at March 31, 2014	$	703,253,678
Accumulated depreciation
Balance at December 31, 2013	$	(46,432,155	)
Depreciation		(4,669,073	)
Balance at March 31, 2014	$	(51,101,228	)

The following table summarizes the preliminary purchase price allocation for our acquisitions for the three months ended March 31, 2014:

Property	Acquisition Date	Real Estate Assets		Intangibles		Total(1)		2014 Revenue(2)		2014 Property Operating Income(2)(3)
Hampton II – VA	3/5/2014	$	5,930,000	$	770,000	$	6,700,000	$	52,432	$	32,266
Chandler – AZ	3/27/2014		4,375,000		510,000		4,885,000		6,114		3,422
Total		$	10,305,000	$	1,280,000	$	11,585,000	$	58,546	$	35,688

⁽¹⁾  The allocations noted above are based on a preliminary determination of the fair value of the total consideration provided. Such valuations may change as we complete our purchase price accounting.

⁽²⁾  The operating results of the facilities acquired above have been included in the Company’s statement of operations since their respective acquisition date.

⁽³⁾  Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization and acquisition expenses.

The purchase price allocations included above are preliminary and therefore, subject to change upon the completion of our analysis of appraisals and other information related to the acquisitions. We anticipate finalizing the purchase price allocations by December 31, 2014, as further evaluations are completed and additional information is received from third parties.

The above properties were acquired from unaffiliated third parties and were purchased entirely with cash. Total acquisition fees paid to our Advisor for the three months ended March 31, 2014 were approximately $0.5 million.

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Southwest Colonial, DST and USA SF Self Storage, DST Acquisitions

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Southwest Colonial, DST and USA SF Self Storage, DST Acquisitions

Note 3. Southwest Colonial, DST and USA SF Self Storage, DST Acquisitions

Southwest Colonial, DST

During the fourth quarter of 2013, we purchased beneficial interests (the “Colonial Interests”) in Southwest Colonial, DST (“Colonial DST”), a Delaware statutory trust sponsored by our Sponsor, from approximately 50 third-party sellers pursuant to separate purchase agreements with each seller. None of the purchases were contingent upon any of the others. Such purchases were fully completed on November 1, 2013. Following the purchase of these interests, we owned 100% of the interests in Colonial DST. The agreed upon purchase price of the Colonial Interests acquired, based on the aggregate appraised value of the five properties owned by Colonial DST was approximately $27.9 million. Consideration provided consisted of approximately $9.0 million in cash along with the issuance of approximately 151,300 limited partnership units in our Operating Partnership and the assumption of an approximately $16.7 million bank loan held by Colonial DST (the “John Hancock Loan”). Colonial DST leased its properties to a master tenant (the “Colonial Tenant”) on a triple-net basis pursuant to a master lease (the “Colonial Lease”). The Colonial Tenant is owned by affiliates of our Sponsor. We and our Sponsor, along with its affiliates, have agreed to assign 100% of the economic benefits and obligations from these properties to us in exchange for indemnification by us for any potential liability incurred subsequent to the assignment by the Sponsor in connection with the Colonial Lease.

We incurred acquisition fees due to our Advisor of approximately $340,000 in connection with these acquisitions.

Colonial DST owns five self storage facilities located in Texas with an aggregate of approximately 2,805 units and 392,000 rentable square feet. The properties owned by Colonial DST are subject to the John Hancock Loan, which had an aggregate principal balance of approximately $16.7 million as of the acquisition date. The loan bears a fixed interest rate of 6.36% and had an original term of ten years, maturing in June 2018. The loan is secured only by the five properties owned by Colonial DST that obtained such loan.

USA SF Self Storage, DST

During January and February 2014, we through an indirect wholly-owned subsidiary, closed on the purchase of an additional approximately 86% in beneficial interests (the “SF Interests”) in USA SF Self Storage, DST (the “SF DST”), a Delaware Statutory Trust sponsored by our Sponsor, from approximately 45 third-party sellers pursuant to separate purchase agreements with each seller. None of the purchases were contingent upon any of the others. The agreed upon purchase price of the property relating to the SF Interests acquired was approximately $20 million.

The acquisition brought our ownership of the SF DST to approximately 98%, including approximately 12% that we acquired previously in unrelated transactions (See Note 2). The consideration provided was primarily in the form of approximately $5.7 million in cash, an assumption of the pro rata debt of approximately $10.2 million and the issuance of approximately 245,000 limited partnership units in our Operating Partnership. We paid our Advisor approximately $0.2 million in acquisition fees in connection with these acquisitions.

SF DST, owns a self storage facility located in San Francisco with an aggregate of approximately 1,120 units and 76,000 rentable square feet.

SF DST leases its property to a master tenant (the “REIT I Tenant”) on a triple-net basis pursuant to a master lease (the “San Francisco Lease”) that had an original term of ten years and will expire on December 19, 2016. The REIT I Tenant is a wholly-owned subsidiary of us. Under the San Francisco Lease, the REIT I Tenant is required to pay a stated monthly rent equivalent to the monthly debt service payment under the loan, which is paid directly to the lender on behalf of the SF DST, a monthly stated rent, and certain annual bonus rent per the terms of the San Francisco Lease. As a SF DST interest holder, we are entitled to our pro rata share of the total rent less the debt service under the loan.

As of March 31, 2014, the SF DST had net real estate assets of approximately $16.5 million, approximately $10.1 million of secured debt and approximately $0.1 million of noncontrolling interest related to this entity. Such assets are only available to satisfy the obligations of the SF DST. The lenders of the secured debt have no recourse to other Company assets.

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Secured Debt (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Summary of Secured Debt

The Company’s secured debt is summarized as follows:

	Carrying value as of:
Encumbered Property	March 31, 2014		December 31, 2013		Interest Rate			Maturity Date
Montgomery	$	2,673,161	$	2,693,364		6.42	%		7/1/2016
Seabrook		4,424,518		4,444,137		5.73	%		1/1/2016
Greenville		2,217,170		2,226,986		5.65	%		3/1/2016
Kemah		8,698,412		8,732,981		6.20	%		6/1/2016
Memphis		2,454,753		2,465,045		5.67	%		12/1/2016
Tallahassee		7,420,765		7,446,178		6.16	%		8/1/2016
Houston		1,970,954		1,981,095		5.67	%		2/1/2017
San Francisco		10,220,127		10,256,163		5.84	%		1/1/2017
Lake Forest		18,000,000		18,000,000		6.47	%		10/1/2017
Las Vegas II		1,506,686		1,511,958		5.72	%		6/1/2017
Pearland		3,426,920		3,438,473		5.93	%		7/1/2017
Daphne		1,338,755		1,381,213		5.47	%		8/1/2020
Mesa		2,949,918		2,968,060		5.38	%		4/1/2015
Riverdale (1)		4,800,000		4,800,000		4.00	%		5/14/2014
Prudential Portfolio Loan (2) (3)		30,914,630		31,044,708		5.42	%		9/5/2019
Dufferin – Toronto – Ontario, Canada (4)		5,891,665		6,144,911		5.22	%		5/15/2014
Citi Loan (5)		27,971,458		28,077,873		5.77	%		2/6/2021
Bank of America Loan – 1 (6)		4,300,785		4,321,842		5.18	%		11/1/2015
Bank of America Loan – 2 (7)		6,516,842		6,548,748		5.18	%		11/1/2015
Bank of America Loan – 3 (8)		11,713,354		11,770,704		5.18	%		11/1/2015
Prudential – Long Beach (9)		6,506,700		6,533,640		5.27	%		9/5/2019
SF Bay Area – Vallejo (10)		4,269,522		4,295,098		6.04	%		6/1/2014
Citi Las Vegas Loan (11)		7,404,539		7,434,590		5.26	%		6/6/2021
ING Loan (12)		21,182,173		21,265,500		5.47	%		7/1/2021
Ladera Ranch		6,656,252		6,691,304		5.84	%		6/1/2016
Las Vegas V		1,618,517		1,628,783		5.02	%		7/1/2015
Mississauga (13) – Ontario, Canada		6,539,491		6,763,769		5.00	%		10/31/2014
Chantilly (14)		3,407,609		3,421,797		4.75	%		6/6/2022
Brampton (15) – Ontario, Canada		6,267,916		6,482,879		5.25	%		6/30/2016
Citi Stockade Loan – 1 (16)		18,200,000		18,200,000		4.60	%		10/1/2022
KeyBank CMBS Loan (17)		30,840,245		30,960,278		4.65	%		11/1/2022
Citi Stockade Loan – 2 (18)		19,362,500		19,362,500		4.61	%		11/6/2022
Bank of America Loan – 4 (19)		6,374,856		6,394,362		6.33	%		10/1/2017
Citi SF Bay Area – Morgan Hill Loan (20)		3,000,000		3,000,000		4.08	%		3/6/2023
KeyBank Revolver (21)		71,000,000		71,000,000		1.66	%		10/25/2016
John Hancock Loan (22)		16,611,506		16,682,984		6.36	%		6/1/2018
Net fair value adjustment		897,225		913,837
Total secured debt	$	389,549,924	$	391,285,760

⁽¹⁾  On April 28, 2014, this loan was repaid in full and the related property is now encumbered under the KeyBank Revolver (see Note 11).

⁽²⁾  This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Manassas, Marietta, Erlanger, Pittsburgh, Weston, Fort Lee, Oakland Park, Tempe, Phoenix II, Davie and Las Vegas I). Each of the individual loans is cross-collateralized by the other ten.

⁽³⁾  Ten of the loans in this portfolio loan bear an interest rate of 5.43%, and the remaining loan bears an interest rate of 5.31%. The weighted average interest rate of this portfolio is 5.42%.

⁽⁴⁾  On January 12, 2011, we encumbered the Dufferin property with a Canadian dollar denominated loan which bears interest at the bank’s floating rate plus 3.0% (subject to a reduction in certain circumstances). The rate in effect at March 31, 2014 was 5.22%. This loan was refinanced in May 2014, thereby extending the maturity date to April 15, 2017 (see Note 11).

⁽⁵⁾  This portfolio loan encumbers 11 properties (Biloxi, Gulf Breeze I, Alpharetta, Florence II, Jersey City, West Mifflin, Chicago – 95th St., Chicago – Western Ave., Chicago – Ogden Ave., Chicago – Roosevelt Rd. and Las Vegas IV). The net book value of the encumbered properties as of March 31, 2014 was approximately $49.9 million. Such amounts are only available to satisfy the obligations of this loan.

⁽⁶⁾  This loan encumbers the Lawrenceville I and II properties.

⁽⁷⁾  This loan encumbers the Concord, Hickory and Morganton properties.

⁽⁸⁾  This loan encumbers the El Paso II, III, IV & V properties as well as the Dallas property.

⁽⁹⁾  This loan is cross-collateralized by the 11 properties discussed in footnote (2) to this table.

⁽¹⁰⁾  On May 1, 2014, this loan was repaid in full and the related property is now encumbered under the KeyBank Revolver (see Note 11).

⁽¹¹⁾  This loan encumbers the Las Vegas VII and Las Vegas VIII properties. The net book value of the encumbered properties as of March 31, 2014 was approximately $9.0 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹²⁾  This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Peachtree City, Buford, Jonesboro, Ellenwood, Marietta II, Collegeville, Skippack, Ballston Spa, Trenton, Fredericksburg and Sandston). Each of the individual loans had an original term of 30 years and matures on July 1, 2041. ING has the option to require payment of the loan in full every five years beginning on July 1, 2021.

⁽¹³⁾  In December 2011, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank’s floating rate, plus 2% (totaling 5.0% as of March 31, 2014).

⁽¹⁴⁾  The net book value of the Chantilly property as of March 31, 2014 was approximately $6.8 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁵⁾  In September 2012, we entered into a Canadian dollar denominated construction loan with an aggregate potential commitment amount of approximately $9.2 million. Such loan bears interest at the bank’s floating rate, plus 2.25% (totaling 5.25% as of March 31, 2014).

⁽¹⁶⁾  This portfolio loan encumbers 10 properties (Savannah I, Savannah II, Columbia, Lexington I, Stuart I, Lexington II, Stuart II, Bluffton, Wilmington Island and Myrtle Beach). The net book value of the encumbered properties as of March 31, 2014 was approximately $34.2 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁷⁾  This portfolio loan encumbers nine properties (Los Angeles—La Cienega, Las Vegas III, Las Vegas VI, Hampton, SF Bay Area—Gilroy, Toms River, Crescent Springs, Florence and Walton). The net book value of the encumbered properties as of March 31, 2014 was approximately $41.1 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁸⁾  This portfolio loan encumbers six properties (Mt. Pleasant I, Charleston I, Charleston II, Mt. Pleasant II, Charleston III, and Mt. Pleasant III). The net book value of the encumbered properties as of March 31, 2014 was approximately $36.6 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁹⁾  This loan encumbers the Ridgeland and Canton properties.

⁽²⁰⁾  This loan encumbers the Morgan Hill property. The net book value of the encumbered property as of March 31, 2014 was approximately $5.2 million. Such amount is only available to satisfy the obligations of this loan.

⁽²¹⁾  On October 28, 2013, through our Operating Partnership and certain property-owning special purpose entities wholly-owned by our Operating Partnership, we entered into the KeyBank Revolver, which matures on October 25, 2016. Such loan encumbers the Homeland Portfolio properties, the Knoxville Portfolio properties and five other previously unencumbered properties (Gulf Breeze II, El Paso I, Toms River II, North Charleston and Phoenix I). This loan is a LIBOR based variable rate loan, and such rate is based on 30-day LIBOR, which including the applicable spread equaled an interest rate of 1.66% as of March 31, 2014. The interest rate swap with a notional amount of $45 million that was originally entered into in connection with the Second Restated KeyBank Loan remains outstanding; inclusive of the interest rate swap, the effective fixed interest rate as of March 31, 2014 was approximately 2.4%. For additional discussion, see “KeyBank Revolver” below.

⁽²²⁾  This loan encumbers the Midland I, Coppell, Midland II, Arlington and Weatherford properties.

As of March 31, 2014 and December 31, 2013, the Company’s secured promissory notes shown above were secured by the properties shown above, which properties had net book values of approximately $645 million and $647 million, respectively.

Future Principal Payment Requirements on Outstanding Secured Debt

The following table presents the future principal payment requirements on outstanding secured debt as of March 31, 2014:

2014	$	9,761,651
2015		31,013,997
2016		123,634,534
2017		49,415,409
2018		19,074,211
2019 and thereafter		155,752,897
Total payments (1)		388,652,699
Unamortized fair value adjustment		897,225
Total	$	389,549,924

(1) This table reflects both the revised terms of the Dufferin – Toronto Loan and the refinance of the Riverdale and SF Bay Area – Vallejo loans through the KeyBank Revolver. See Note 11 for additional discussion.

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Subsequent Events

3 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

Note 11. Subsequent Events

Acquisition

On April 2, 2014, we acquired a parcel of land in Toronto, Canada for $3.8 million Canadian dollars from an unaffiliated third party. We intend to develop the land into a self storage facility with approximately 870 units and 78,000 rentable square feet.

We incurred acquisition fees due to our Advisor of approximately $0.1 million in connection with the above acquisition.

Dufferin – Toronto – Ontario, Canada Loan

On May 6, 2014, we refinanced the loan encumbering the Dufferin property, thereby extending the maturity date from May 15, 2014 to April 15, 2017. The loan now bears interest at a variable rate, based on the bank’s index rate, plus 3% per annum. The loan contains a number of other customary terms and covenants.

Keybank Revolver Funding

Subsequent to March 31, 2014, we borrowed an additional $18 million on the KeyBank Revolver, bringing the total outstanding amount borrowed to $89 million. In addition to those properties encumbered as of March 31, 2014, we added as encumbered properties Riverdale, Hampton II, Chandler and SF Bay Area -Vallejo. The proceeds of the borrowings were used to repay the previously outstanding mortgage of approximately $4.8 million on the Riverdale property, the previously outstanding mortgage of approximately $4.3 million on the SF Bay Area -Vallejo property and for general corporate purposes.

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Related Party Transactions

3 Months Ended

Mar. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions

Note 7. Related Party Transactions

Fees to Affiliates

Our Advisory Agreement with our Advisor and dealer manager agreement (“Dealer Manager Agreement”) with our Dealer Manager entitled our Advisor and our Dealer Manager to specified fees upon the provision of certain services with regard to the Offering, as well as reimbursement for organizational and offering costs incurred by our Advisor on our behalf and entitles our Advisor to specified fees upon the investment of funds in real estate properties, among other services and reimbursement of certain costs and expenses incurred by our Advisor in providing services to us.

Advisory Agreement

We currently do not have any employees. Our Advisor is primarily responsible for managing our business affairs and carrying out the directives of our board of directors. Our Advisor receives various fees and expenses under the terms of our Advisory Agreement. Our Advisory Agreement also requires our Advisor to reimburse us to the extent that offering expenses, including sales commissions, dealer manager fees and organization and offering expenses, are in excess of 15% of gross proceeds from the Offering. Subsequent to the termination of our Offering on September 22, 2013, we have determined that these expenses did not exceed 15% of gross proceeds from the Offering. In addition, certain organization and offering costs of the Offering were paid by our Advisor on our behalf and reimbursed to our Advisor from the proceeds of the Offering. Organization and offering costs consisted of all expenses (other than sales commissions and the dealer manager fee) paid by us in connection with the Offering, including our legal, accounting, printing, mailing and filing fees, charges of our escrow holder and other accountable offering expenses, including, but not limited to, (i) amounts to reimburse our Advisor for all marketing related costs and expenses such as salaries and direct expenses of employees of our Advisor and its affiliates in connection with registering and marketing our shares; (ii) technology costs associated with the Offering; (iii) our costs of conducting our training and education meetings; (iv) our costs of attending retail seminars conducted by participating broker-dealers; and (v) payment or reimbursement of bona fide due diligence expenses. Our Advisor must reimburse us within 60 days after the end of the month which the Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions and dealer manager fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering. Subsequent to the termination of our Offering on September 22, 2013, we have determined that organization and offering costs did not exceed 3.5% of the gross proceeds from the Primary Offering.

Our Advisor receives acquisition fees equal to 2.5% of the contract purchase price of each property we acquire plus reimbursement of any acquisition expenses the Advisor incurs. Our Advisor also receives a monthly asset management fee equal to one-twelfth of 1.0% of the average of the aggregate asset value, as defined, of our assets, excluding those properties acquired through our mergers with REIT I and REIT II and the SS I, DST, Madison DST, Colonial DST and SF DST acquisitions; provided, however, that if the average of the aggregate asset value, as defined, of our assets exceeds $500 million, the monthly asset management fee shall be reduced to one-twelfth of 0.75% of the average of the aggregate asset value, as defined, of those assets exceeding $500 million unless our modified funds from operations (as defined in the Advisory Agreement), including payment of the fee, is greater than 100% of our distributions in any month (see footnote (2) in the following table for a discussion of the Advisor’s permanent waiver of certain asset management fees). The monthly asset management fees for our properties acquired through our mergers with REIT I and REIT II and the SS I, DST, Madison DST, Colonial DST and SF DST acquisitions are equal to 2.0% of the gross revenues from the properties and are paid to affiliates of our Sponsor. Under our Advisory Agreement, and our articles of incorporation, as amended, our Advisor may receive disposition fees in an amount equal to the lesser of (i) 3.0% of the contract sale price for each property we sell, or (ii) one-half of the competitive real estate commission, as long as our Advisor provides substantial assistance in connection with the sale. The disposition fees paid to our Advisor are subordinated to the receipt of our stockholders of a 6% cumulative, non-compounded, annual return on such stockholders’ invested capital. The total real estate commissions paid (including disposition fee paid to our Advisor) may not exceed the lesser of a competitive real estate commission or an amount equal to 6.0% of the contract sale price of the property.

Our Advisory Agreement provides for reimbursement of our Advisor’s direct and indirect costs of providing administrative and management services to us (see footnote (1) in the following table for a discussion of the Advisor’s permanent waiver of certain reimbursements for the three months ended March 31, 2013). Beginning October 1, 2009 (four fiscal quarters after the acquisition of our first real estate asset), our Advisor must pay or reimburse us the amount by which our aggregate annual operating expenses, as defined, exceed the greater of 2% of our average invested assets or 25% of our net income, as defined, unless a majority of our independent directors determine that such excess expenses were justified based on unusual and non-recurring factors. For any fiscal quarter for which total operating expenses for the 12 months then ended exceed the limitation, we will disclose this fact in our next quarterly report or within 60 days of the end of that quarter and send a written disclosure of this fact to our stockholders. In each case, the disclosure will include an explanation of the factors that the independent directors considered in arriving at the conclusion that the excess expenses were justified. For the three months ended March 31, 2014, our aggregate annual operating expenses, as defined, did not exceed the thresholds described above.

On September 27, 2012, we entered into a Second Amended and Restated Advisory Agreement (the “Amended Advisory Agreement”) with our Advisor. The material terms of the Advisory Agreement were not changed. However, certain provisions were added, the most significant of which was a provision restricting us, during the term of the Amended Advisory Agreement and for a period of two years after the termination of the Amended Advisory Agreement, from soliciting or hiring any employee of, or person performing services on behalf of, our Advisor.

On March 28, 2014, in a series of related transactions, we entered into an amended and restated advisory agreement (the “Third Amended and Restated Advisory Agreement”) and an amended and restated limited partnership agreement (the “Second Amended and Restated Limited Partnership Agreement”), and REIT I and REIT II entered into amendments to their respective operating partnership agreements, (the “REIT I OP Agreement Amendment” and the “REIT II OP Agreement Amendment,” respectively). REIT I and REIT II are each wholly-owned by our Operating Partnership.

The Third Amended and Restated Advisory Agreement with our Advisor and our Operating Partnership amended and superseded the Second Amended and Restated Advisory Agreement. Pursuant to the Third Amended and Restated Advisory Agreement, provisions related to various subordinated fees that would be due to our Advisor upon the occurrence of certain events have been removed from such agreement and are now included in the Second Amended and Restated Limited Partnership Agreement of our Operating Partnership. Additionally, our Operating Partnership is now a party to the Third Amended and Restated Advisory Agreement and has provided customary representations and warranties, and certain provisions of the Second Amended and Restated Limited Partnership Agreement are incorporated into the Third Amended and Restated Advisory Agreement.

The Second Amended and Restated Limited Partnership Agreement with our Operating Partnership and our Advisor amended and superseded the First Amended and Restated Limited Partnership Agreement. Pursuant to the Second Amended and Restated Limited Partnership Agreement, our Advisor and the advisors to REIT I and REIT II have each been granted a special limited partnership interest in our Operating Partnership and are each a party to the Second Amended and Restated Limited Partnership Agreement. In addition, provisions related to various subordinated fees that would be due to our Advisor upon the occurrence of certain events have been included in such agreement and are payable as distributions pursuant to our Advisor’s special limited partnership interest. After giving effect to the Second Amended and Restated Limited Partnership Agreement, the REIT I OP Agreement Amendment, and the REIT II OP Agreement Amendment, our Advisor and the advisors to REIT I and REIT II may be entitled to receive various subordinated distributions, each of which are outlined further in the Second Amended and Restated Limited Partnership Agreement, the REIT I OP Agreement Amendment, and the REIT II OP Agreement Amendment, if we (1) list our shares of common stock on a national exchange, (2) terminate our advisory agreement (other than a voluntary termination by mutual assent), (3) liquidate our portfolio, or (4) enter into an Extraordinary Transaction, as defined in such agreements. In the case of each of the foregoing distributions, our Advisor’s receipt of the distribution is subordinate to return of capital to our stockholders plus at least a 6% cumulative, non-compounded return, and our Advisor’s share of the distribution is 5%, 10%, or 15%, depending on the return level to our stockholders. The receipt of the distribution by the advisors to REIT I and REIT II is subordinate to return of capital to the original REIT I and REIT II stockholders plus at least a 7% cumulative, non-compounded return, and such advisors’ share of the distribution is 15%. In addition, our Advisor may be entitled to a one-time cash distribution in the event that we (1) list our shares of common stock on a national exchange, (2) liquidate our portfolio, or (3) enter into an Extraordinary Transaction resulting in a return to our stockholders in excess of an amount per share that will be determined by our independent directors. Such one-time cash distribution will be paid as part of the complete redemption of our Advisor’s special limited partnership interest in our Operating Partnership and will be up to the aggregate amount of all unreturned and unreimbursed capital invested by our Advisor and its affiliates in us, our Operating Partnership, our Advisor and affiliates, relating in any way to our business or our Operating Partnership’s business or any offering.

Dealer Manager Agreement

During the term of our Offering, our Dealer Manager received a sales commission of up to 7.0% of gross proceeds from sales in the Primary Offering and a dealer manager fee equal to up to 3.0% of gross proceeds from sales in the Primary Offering under the terms of our Dealer Manager Agreement. Our Dealer Manager entered into participating dealer agreements with certain other broker-dealers which authorized them to sell our shares. Upon sale of our shares by such broker-dealers, our Dealer Manager re-allowed all of the sales commissions paid in connection with sales made by these broker-dealers. Our Dealer Manager was also permitted to re-allow to these broker-dealers a portion of the 3.0% dealer manager fee as marketing fees, reimbursement of certain costs and expenses of attending training and education meetings sponsored by our Dealer Manager, payment of attendance fees required for employees of our Dealer Manager or other affiliates to attend retail seminars and public seminars sponsored by these broker-dealers, or to defray other distribution related expenses. Our Dealer Manager also received reimbursement of bona fide due diligence expenses; however, to the extent these due diligence expenses cannot be justified, any excess over actual due diligence expenses will be considered underwriting compensation subject to a 10% FINRA limitation and, when aggregated with all other non-accountable expenses, may not exceed 3% of gross offering proceeds from sales in the Primary Offering. The Dealer Manager Agreement terminated upon the termination of our Offering.

Our chief executive officer owns, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer Manager.

Property Management Agreement

Our Property Manager receives a fee for its services in managing our properties, generally equal to 6% of the gross revenues from the properties plus reimbursement of the direct costs of managing the properties under our property management agreement. In the event that our Property Manager assists with the development or redevelopment of a property, we may pay a separate market-based fee for such services. As a condition of the REIT II merger transaction, our Property Manager agreed to waive the monthly property management fees for the REIT II properties until the FFO, as defined in the merger agreement, of those properties reached $0.70 per share (which threshold was met in the three months ended March 31, 2013). During the three months ended March 31, 2014 and 2013, property management fees of approximately $65,000 and $25,000, respectively, were recorded relative to the REIT II properties.

On September 27, 2012, our board of directors approved revisions to our property management agreements that will be entered into with respect to properties acquired after that date and will be entered into as our current property management agreements are renewed. These revisions include increasing the term to three years, with automatic three-year extensions; revising the property owner’s obligation to reimburse the Property Manager for certain expenses; the addition of a construction management fee (as defined); the addition of a tenant insurance administrative fee; adding a nonsolicitation provision; and adding a provision regarding the Property Manager’s use of trademarks and other intellectual property owned by Strategic Storage Holdings, LLC.

Pursuant to the terms of the agreements described above, the following summarizes the related party costs incurred for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31, 2014		Three Months Ended March 31, 2013
Expensed
Reimbursement of operating expenses(1)	$	367,346	$	8,145
Asset management fees(2)		1,512,268		1,175,632
Property management fees(3) (4)		1,374,942		1,112,097
Acquisition expenses		508,542		53,609
Additional Paid-in Capital
Selling commissions		—		844,466
Dealer Manager fees		—		361,914
Reimbursement of offering costs		—		112,697
Total	$	3,763,098	$	3,668,560

⁽¹⁾  During the three months ended March 31, 2013, our Advisor permanently waived certain reimbursable indirect costs, primarily payroll and related overhead costs, related to administrative and management services, totaling approximately $300,000. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. Such reimbursable indirect costs were not waived by the Advisor during the three months ended March 31, 2014, and totaled approximately $360,000.

⁽²⁾  For the three months ended March 31, 2013 our Advisor permanently waived asset management fees related to the Stockade Portfolio of approximately $175,000. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. Such asset management fees were not waived by the Advisor during the three months ended March 31, 2014, and totaled approximately $175,000.

⁽³⁾  During the three months ended March 31, 2013, property management fees include approximately $27,000 of fees paid to the sub-property manager of our Canadian properties. Such sub-property management agreement was terminated effective March 31, 2013 at a cost of approximately $28,000.

⁽⁴⁾  During the three months ended March 31, 2014 and 2013, our Property Manager permanently waived certain costs, reimbursements and fees, including construction management fees, tenant insurance administration fees, accounting administrative fees and expense reimbursements related to certain off-site property management employees. Such amounts totaled approximately $182,500 and $150,000, respectively, and were waived permanently and accordingly, will not be paid to our Property Manager.

As of March 31, 2014 and December 31, 2013, we had amounts due to affiliates totaling $1,412,376 and $1,741,518, respectively.

Tenant Reinsurance Program

Beginning in 2011, our Chairman of the Board of Directors, Chief Executive Officer and President, through certain entities, began participating in a tenant reinsurance program whereby tenants of our self storage facilities can purchase insurance to cover damage or destruction to their property while stored at our facilities. Such entities have invested in a Cayman Islands company (the “Reinsurance Company”) that will reinsure a portion of the insurance required by the program insurer to cover the risks of loss at participating facilities in the program. The program insurer provides fees (approximately 50% of the tenant premium paid) to us as owner of the facilities. The Reinsurance Company may be required to fund additional capital or entitled to receive distributions of profits depending on actual losses incurred under the program. For the three months ended March 31, 2014 and 2013, we recorded revenue of approximately $0.5 million and $0.4 million, respectively, in connection with this tenant reinsurance program.

Storage Auction Program

During the second quarter of 2013, our Chairman of the Board of Directors, Chief Executive Officer and President, and our Senior Vice President — Property Management and the President of our Property Manager, purchased noncontrolling interests in a company (the “Auction Company”) that serves as a web portal for self storage companies to post their auctions online instead of using live auctions conducted at the self storage facilities. Once the contents of a storage unit are sold at auction, we pay the Auction Company a service fee based upon the sale price of the unit. On January 1, 2014, the Auction Company merged with another similar company. Such officers’ collective ownership in the new combined company is now approximately nine percent. For the three months ended March 31, 2014 we incurred approximately $34,000 in auction fees with the Auction Company.

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Secured Debt

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Secured Debt

Note 5. Secured Debt

The Company’s secured debt is summarized as follows:

	Carrying value as of:
Encumbered Property	March 31, 2014		December 31, 2013		Interest Rate			Maturity Date
Montgomery	$	2,673,161	$	2,693,364		6.42	%		7/1/2016
Seabrook		4,424,518		4,444,137		5.73	%		1/1/2016
Greenville		2,217,170		2,226,986		5.65	%		3/1/2016
Kemah		8,698,412		8,732,981		6.20	%		6/1/2016
Memphis		2,454,753		2,465,045		5.67	%		12/1/2016
Tallahassee		7,420,765		7,446,178		6.16	%		8/1/2016
Houston		1,970,954		1,981,095		5.67	%		2/1/2017
San Francisco		10,220,127		10,256,163		5.84	%		1/1/2017
Lake Forest		18,000,000		18,000,000		6.47	%		10/1/2017
Las Vegas II		1,506,686		1,511,958		5.72	%		6/1/2017
Pearland		3,426,920		3,438,473		5.93	%		7/1/2017
Daphne		1,338,755		1,381,213		5.47	%		8/1/2020
Mesa		2,949,918		2,968,060		5.38	%		4/1/2015
Riverdale (1)		4,800,000		4,800,000		4.00	%		5/14/2014
Prudential Portfolio Loan (2) (3)		30,914,630		31,044,708		5.42	%		9/5/2019
Dufferin – Toronto – Ontario, Canada (4)		5,891,665		6,144,911		5.22	%		5/15/2014
Citi Loan (5)		27,971,458		28,077,873		5.77	%		2/6/2021
Bank of America Loan – 1 (6)		4,300,785		4,321,842		5.18	%		11/1/2015
Bank of America Loan – 2 (7)		6,516,842		6,548,748		5.18	%		11/1/2015
Bank of America Loan – 3 (8)		11,713,354		11,770,704		5.18	%		11/1/2015
Prudential – Long Beach (9)		6,506,700		6,533,640		5.27	%		9/5/2019
SF Bay Area – Vallejo (10)		4,269,522		4,295,098		6.04	%		6/1/2014
Citi Las Vegas Loan (11)		7,404,539		7,434,590		5.26	%		6/6/2021
ING Loan (12)		21,182,173		21,265,500		5.47	%		7/1/2021
Ladera Ranch		6,656,252		6,691,304		5.84	%		6/1/2016
Las Vegas V		1,618,517		1,628,783		5.02	%		7/1/2015
Mississauga (13) – Ontario, Canada		6,539,491		6,763,769		5.00	%		10/31/2014
Chantilly (14)		3,407,609		3,421,797		4.75	%		6/6/2022
Brampton (15) – Ontario, Canada		6,267,916		6,482,879		5.25	%		6/30/2016
Citi Stockade Loan – 1 (16)		18,200,000		18,200,000		4.60	%		10/1/2022
KeyBank CMBS Loan (17)		30,840,245		30,960,278		4.65	%		11/1/2022
Citi Stockade Loan – 2 (18)		19,362,500		19,362,500		4.61	%		11/6/2022
Bank of America Loan – 4 (19)		6,374,856		6,394,362		6.33	%		10/1/2017
Citi SF Bay Area – Morgan Hill Loan (20)		3,000,000		3,000,000		4.08	%		3/6/2023
KeyBank Revolver (21)		71,000,000		71,000,000		1.66	%		10/25/2016
John Hancock Loan (22)		16,611,506		16,682,984		6.36	%		6/1/2018
Net fair value adjustment		897,225		913,837
Total secured debt	$	389,549,924	$	391,285,760

⁽¹⁾  On April 28, 2014, this loan was repaid in full and the related property is now encumbered under the KeyBank Revolver (see Note 11).

⁽²⁾  This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Manassas, Marietta, Erlanger, Pittsburgh, Weston, Fort Lee, Oakland Park, Tempe, Phoenix II, Davie and Las Vegas I). Each of the individual loans is cross-collateralized by the other ten.

⁽³⁾  Ten of the loans in this portfolio loan bear an interest rate of 5.43%, and the remaining loan bears an interest rate of 5.31%. The weighted average interest rate of this portfolio is 5.42%.

⁽⁴⁾  On January 12, 2011, we encumbered the Dufferin property with a Canadian dollar denominated loan which bears interest at the bank’s floating rate plus 3.0% (subject to a reduction in certain circumstances). The rate in effect at March 31, 2014 was 5.22%. This loan was refinanced in May 2014, thereby extending the maturity date to April 15, 2017 (see Note 11).

⁽⁵⁾  This portfolio loan encumbers 11 properties (Biloxi, Gulf Breeze I, Alpharetta, Florence II, Jersey City, West Mifflin, Chicago – 95th St., Chicago – Western Ave., Chicago – Ogden Ave., Chicago – Roosevelt Rd. and Las Vegas IV). The net book value of the encumbered properties as of March 31, 2014 was approximately $49.9 million. Such amounts are only available to satisfy the obligations of this loan.

⁽⁶⁾  This loan encumbers the Lawrenceville I and II properties.

⁽⁷⁾  This loan encumbers the Concord, Hickory and Morganton properties.

⁽⁸⁾  This loan encumbers the El Paso II, III, IV & V properties as well as the Dallas property.

⁽⁹⁾  This loan is cross-collateralized by the 11 properties discussed in footnote (2) to this table.

⁽¹⁰⁾  On May 1, 2014, this loan was repaid in full and the related property is now encumbered under the KeyBank Revolver (see Note 11).

⁽¹¹⁾  This loan encumbers the Las Vegas VII and Las Vegas VIII properties. The net book value of the encumbered properties as of March 31, 2014 was approximately $9.0 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹²⁾  This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Peachtree City, Buford, Jonesboro, Ellenwood, Marietta II, Collegeville, Skippack, Ballston Spa, Trenton, Fredericksburg and Sandston). Each of the individual loans had an original term of 30 years and matures on July 1, 2041. ING has the option to require payment of the loan in full every five years beginning on July 1, 2021.

⁽¹³⁾  In December 2011, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank’s floating rate, plus 2% (totaling 5.0% as of March 31, 2014).

⁽¹⁴⁾  The net book value of the Chantilly property as of March 31, 2014 was approximately $6.8 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁵⁾  In September 2012, we entered into a Canadian dollar denominated construction loan with an aggregate potential commitment amount of approximately $9.2 million. Such loan bears interest at the bank’s floating rate, plus 2.25% (totaling 5.25% as of March 31, 2014).

⁽¹⁶⁾  This portfolio loan encumbers 10 properties (Savannah I, Savannah II, Columbia, Lexington I, Stuart I, Lexington II, Stuart II, Bluffton, Wilmington Island and Myrtle Beach). The net book value of the encumbered properties as of March 31, 2014 was approximately $34.2 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁷⁾  This portfolio loan encumbers nine properties (Los Angeles—La Cienega, Las Vegas III, Las Vegas VI, Hampton, SF Bay Area—Gilroy, Toms River, Crescent Springs, Florence and Walton). The net book value of the encumbered properties as of March 31, 2014 was approximately $41.1 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁸⁾  This portfolio loan encumbers six properties (Mt. Pleasant I, Charleston I, Charleston II, Mt. Pleasant II, Charleston III, and Mt. Pleasant III). The net book value of the encumbered properties as of March 31, 2014 was approximately $36.6 million. Such amounts are only available to satisfy the obligations of this loan.

⁽¹⁹⁾  This loan encumbers the Ridgeland and Canton properties.

⁽²⁰⁾  This loan encumbers the Morgan Hill property. The net book value of the encumbered property as of March 31, 2014 was approximately $5.2 million. Such amount is only available to satisfy the obligations of this loan.

⁽²¹⁾  On October 28, 2013, through our Operating Partnership and certain property-owning special purpose entities wholly-owned by our Operating Partnership, we entered into the KeyBank Revolver, which matures on October 25, 2016. Such loan encumbers the Homeland Portfolio properties, the Knoxville Portfolio properties and five other previously unencumbered properties (Gulf Breeze II, El Paso I, Toms River II, North Charleston and Phoenix I). This loan is a LIBOR based variable rate loan, and such rate is based on 30-day LIBOR, which including the applicable spread equaled an interest rate of 1.66% as of March 31, 2014. The interest rate swap with a notional amount of $45 million that was originally entered into in connection with the Second Restated KeyBank Loan remains outstanding; inclusive of the interest rate swap, the effective fixed interest rate as of March 31, 2014 was approximately 2.4%. For additional discussion, see “KeyBank Revolver” below.

⁽²²⁾  This loan encumbers the Midland I, Coppell, Midland II, Arlington and Weatherford properties.

As of March 31, 2014 and December 31, 2013, the Company’s secured promissory notes shown above were secured by the properties shown above, which properties had net book values of approximately $645 million and $647 million, respectively.

KeyBank Revolver

On October 28, 2013, we, through our Operating Partnership and certain property-owning special purpose entities wholly-owned by our Operating Partnership (collectively with the Operating Partnership, the “Borrower”), obtained a revolving loan from KeyBank, National Association (“KeyBank”) for borrowings up to $75 million (as amended, the “KeyBank Revolver”). The initial amount funded at closing was $71 million (the “Initial Draw”), $45 million of which was used to pay off the outstanding principal amount under the Second Restated KeyBank Loan, and thereby release the 12 properties comprising the Homeland Portfolio that were serving as collateral for the Second Restated KeyBank Loan (discussed below), and approximately $26 million of which was used to partially fund the acquisition of three properties in Knoxville, Tennessee and one in Montgomery, Alabama (the “Knoxville Portfolio”). It is anticipated that future draws on the KeyBank Revolver will be used to help fund our future acquisitions of self storage facilities and for other general corporate purposes.

During the first quarter of 2014 the aggregate commitment under the Keybank Revolver was increased from $75 million to $100 million. In addition, there is now a total of four participating lenders.

The KeyBank Revolver has an initial term of three years, maturing on October 25, 2016, with two one-year extension options subject to certain conditions outlined further in the credit agreement for the KeyBank Revolver (the “Credit Agreement”). Payments due pursuant to the KeyBank Revolver are interest-only for the life of the loan. The KeyBank Revolver bears interest at the Borrower’s option of either the Alternate Base Rate plus the Applicable Rate or the Adjusted LIBO Rate plus the Applicable Rate (each as defined in the Credit Agreement). The Applicable Rate will vary based on our total leverage ratio. We have elected the Adjusted LIBO Rate plus the Applicable Rate to apply to our balance outstanding. The $45 million interest rate swap originally purchased in connection with the Second Restated KeyBank Loan will remain in place through December 24, 2014, thus fixing the rate on $45 million at approximately 2.4%, assuming the Applicable Rate remains constant.

During the first 18 months of the KeyBank Revolver, we may request increases in the aggregate commitment up to a maximum of $200 million in minimum increments of $10 million. We may also reduce the aggregate commitment in minimum increments of $10 million during the life of the loan, provided, however, that at no time will the aggregate commitment be reduced to less than $25 million unless the KeyBank Revolver is paid in full.

The KeyBank Revolver is secured by cross-collateralized first mortgage liens or first lien deeds of trust on the properties in the Homeland Portfolio, the properties in the Knoxville Portfolio, and five of our other self storage properties, and is cross-defaulted to any recourse debt of $25 million or greater in the aggregate or non-recourse debt of $75 million or greater in the aggregate. The KeyBank Revolver may be prepaid or terminated at any time without penalty, provided, however, that KeyBank and any other lender shall be indemnified for any breakage costs associated with any LIBOR borrowings. Pursuant to that certain guaranty dated October 28, 2013 in favor of KeyBank, we serve as a guarantor of all obligations due under the KeyBank Revolver.

Under certain conditions, the Borrower may cause the release of one or more of the properties serving as collateral for the KeyBank Revolver in connection with a full or partial pay down of the KeyBank Revolver, provided that there shall at all times be at least four properties serving as collateral.

The KeyBank Revolver contains a number of other customary terms and covenants, including the following (capitalized terms are as defined in the Credit Agreement):

• the aggregate borrowing base availability under the KeyBank Revolver is limited to the lesser of: (1) 60% of the Pool Value of the properties in the collateral pool, or (2) an amount that would provide a minimum Debt Service Coverage Ratio of no less than 1.35 to 1.0; and

• we must meet the following financial tests, calculated as of the close of each fiscal quarter: (1) a Total Leverage Ratio of no more than 60%; (2) a Tangible Net Worth of at least $250 million; (3) an Interest Coverage Ratio of no less than 1.85 to 1.0; (4) a Fixed Charge Ratio of no less than 1.6 to 1.0; (5) a ratio of varying rate Indebtedness to total Indebtedness not in excess of 30%; (6) a Loan to Value Ratio of not greater than sixty percent (60%); and (7) a Debt Service Coverage Ratio of not less than 1.35 to 1.0.

Second Restated KeyBank Loan

On December 27, 2011, in connection with the acquisition of the Homeland Portfolio (an $80 million portfolio of 10 properties in Atlanta, Georgia and two properties in Jacksonville, Florida), our Operating Partnership and various property owning SPEs entered into a second amended and restated secured credit facility with KeyBank with total commitments of $82 million (such facility replaced our then existing $30 million Restated KeyBank Credit Facility, which had approximately $20 million outstanding before the purchase of the Homeland Portfolio) and we drew down an additional approximately $56.6 million thereunder. On January 12, 2012, we drew down an additional approximately $5.4 million in connection with the repayment of the previously outstanding debt on our Crescent Springs, Florence and Walton properties, bringing the total amount outstanding to $82 million. Such credit facility, as amended (the “Second Restated KeyBank Loan”) was converted from a revolving credit facility to a term loan on August 15, 2012 and the principal balance was reduced on October 10, 2012, from $82 million to $55 million, through the use of the majority of the proceeds from the KeyBank CMBS Loan.

Beginning on November 30, 2012, we were required to make monthly payments in the amount of $1,666,667 until the outstanding principal balance of the Second Restated KeyBank Loan was reduced to $45 million, which occurred on April 5, 2013. The remaining $45 million was due to mature on December 24, 2014, subject to two, one-year extension options (subject to the fulfillment of certain conditions), and required monthly interest-only payments.

We were required to purchase an interest rate swap with a notional amount of $45 million, which required us to pay an effective fixed interest rate of approximately 5.41% on the hedged portion of the debt. For the remaining amount outstanding, under the terms of the Second Restated KeyBank Loan, our Operating Partnership had the option of selecting one of three variable interest rates which had applicable spreads.

The Second Restated KeyBank Loan was paid in full on October 28, 2013 with proceeds from the KeyBank Revolver.

The following table presents the future principal payment requirements on outstanding secured debt as of March 31, 2014:

2014	$	9,761,651
2015		31,013,997
2016		123,634,534
2017		49,415,409
2018		19,074,211
2019 and thereafter		155,752,897
Total payments (1)		388,652,699
Unamortized fair value adjustment		897,225
Total	$	389,549,924

(1) This table reflects both the revised terms of the Dufferin – Toronto Loan and the refinance of the Riverdale and SF Bay Area – Vallejo loans through the KeyBank Revolver. See Note 11 for additional discussion.

We record the amortization of debt premiums related to fair value adjustments to interest expense. The weighted average interest rate of the Company’s fixed rate debt as of March 31, 2014 was approximately 5.4%.

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Derivative Instruments - Cash Flow Hedge of Interest Rate Risk

3 Months Ended

Mar. 31, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments - Cash Flow Hedge of Interest Rate Risk

Note 6. Derivative Instruments – Cash Flow Hedge of Interest Rate Risk

Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of the change in the fair value of the derivative designated and that qualifies as a cash flow hedge is recorded in accumulated other comprehensive income (“AOCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2014 and 2013, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings, of which there were none during the three months ended March 31, 2014 and 2013.

Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. Over the next 12 months, we estimate that approximately $247,000 will be reclassified as an increase to interest expense.

As of March 31, 2014, we had one derivative outstanding, which was an interest rate derivative that was designated as a cash flow hedge of interest rate risk:

Interest Rate Derivative	Number of Instruments		Notional
Interest Rate Swap		1	$	45,000,000

The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheet as of March 31, 2014 and December 31, 2013:

	As of March 31, 2014			As of December 31, 2013
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate derivatives
Assets	Other assets	$	—	Other assets	$	—
Liabilities	Accounts payable and accrued liabilities	$	246,835	Accounts payable and accrued liabilities	$	303,051

We have agreements with our derivative counterparty that contain a provision where if we either default or are capable of being declared in default, including default where repayment of the indebtedness has not been accelerated, on any of our indebtedness, then we could also be declared in default on our derivative obligations.

Certain of our agreements with our derivative counterparties contain provisions where if a specified event or condition (Credit Event Upon Merger) occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument. As of March 31, 2014, we had not posted any collateral.

As of March 31, 2014, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was approximately $253,000. If we had breached any of these provisions at March 31, 2014, we could have been required to settle our obligations under the agreements at their termination value of approximately $253,000.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8. Commitments and Contingencies

Distribution Reinvestment Plan

We adopted a distribution reinvestment plan that allowed our stockholders to have distributions otherwise distributable to them invested in additional shares of our common stock. The plan became effective on the effective date of our Initial Offering. The purchase price per share was the higher of $9.50 per share or 95% of the fair market value of a share of our common stock. On March 28, 2012, the purchase price per share under the distribution reinvestment plan was changed to 95% of the offering price of our shares. On September 18, 2013, our board of directors amended and restated our distribution reinvestment plan to change the purchase price per share from 95% of the offering price to approximately $10.25 (which resulted in the same price as prior to this amendment and restatement) and make other certain minor revisions related to the closing of our Offering. Our board of directors could set or change the purchase price at any time in its sole and absolute discretion based upon such factors as it deems appropriate.

Following the termination of our Offering, on September 22, 2013, we filed with the SEC a Registration Statement on Form S-3, which incorporated the amended and restated distribution reinvestment plan and registered up to an additional $51.25 million in shares. The Form S-3 allows us to continue to offer shares pursuant to our amended and restated distribution reinvestment plan beyond September 22, 2013; however we may amend or terminate the plan at any time upon 10 days’ prior written notice to stockholders. The plan was effective as of September 28, 2013.

No sales commission or dealer manager fee will be paid on shares sold through the distribution reinvestment plan. As of March 31, 2014, we have sold approximately 0.9 million shares through our DRP Offering.

Operating Partnership Redemption Rights

The limited partners of our Operating Partnership have the right to cause our Operating Partnership to redeem their limited partnership units for cash equal to the value of an equivalent number of our shares, or, at our option, we may purchase their limited partnership units by issuing one share of our common stock for each limited partnership unit redeemed. The holders of the Class D Units have agreed to modified exchange rights that prevent them from exercising their exchange rights: (1) until the earlier of (a) a listing of our shares or (b) our merger into another entity whereby our stockholders receive securities listed on a national securities exchange; or (2) until FFO of the properties contributed by the holders of the Class D Units reaches $0.70 per share, based on our fully-loaded cost of equity. These rights may not be exercised under certain circumstances that could cause us to lose our REIT election. Furthermore, limited partners may exercise their redemption rights only after their limited partnership units have been outstanding for one year. Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as our Sponsor is acting as our sponsor.

Ground Lease Commitment—SF Bay Area—San Lorenzo

In connection with the acquisition of our SF Bay Area – San Lorenzo property, we assumed a land lease, with a remaining term of approximately 21 years as of March 31, 2014 and recorded rent expense of approximately $37,000 for each of the three months ended March 31, 2014 and 2013. The lease has minimum lease payments of approximately $100,000, $139,000, $139,000, $139,000, $139,000 and $2,414,000 for the years ending 2014, 2015, 2016, 2017, 2018 and thereafter respectively.

Other Contingencies

We have been involved in routine litigation and threatened litigation arising in the ordinary course of business. While the outcome of any litigation is inherently unpredictable, we believe the likelihood of these pending legal matters having a material adverse effect on our financial condition or results of operations is remote.

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Real Estate Facilities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Real Estate Properties Base Purchase Price [Abstract]
Amount paid as acquisition fees	$ 0.5

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

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:

Description	Standard Depreciable Life
Land		Not Depreciated
Buildings		30 to 35 years
Site Improvements		7 to 15 years

Fixed Rate Notes Payable

Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange.

	March 31, 2014				December 31, 2013
	Fair Value		Carrying Value		Fair Value		Carrying Value
Fixed Rate Secured Debt	$	311,141,708	$	299,850,852	$	311,362,132	$	300,894,201

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Selected Quarterly Data (Tables)

3 Months Ended

Mar. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Financial Information

The following is a summary of quarterly financial information for the periods shown below:

	Three months ended
	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013			March 31, 2014
Total revenues	$	19,407,941		$	19,931,208		$	21,292,574		$	22,503,218		$	23,132,944
Total operating expenses	$	16,557,885		$	16,667,044		$	17,229,995		$	19,315,207		$	19,105,230
Operating income	$	2,850,056		$	3,264,164		$	4,062,579		$	3,188,011		$	4,027,714
Net loss	$	(2,167,459	)	$	(1,949,099	)	$	(689,288	)	$	(2,639,352	)	$	(1,039,656	)
Net loss attributable to the Company	$	(2,167,224	)	$	(1,949,079	)	$	(693,245	)	$	(2,637,508	)	$	(1,033,683	)
Net loss per share-basic and diluted	$	(0.05	)	$	(0.04	)	$	(0.01	)	$	(0.05	)	$	(0.02	)

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Fair Value of Derivative Financial Instruments as well as Classification on Balance Sheet (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Other Assets
Derivatives, Fair Value [Line Items]
Assets
Accounts Payable and Accrued Liabilities
Derivatives, Fair Value [Line Items]
Liabilities	$ 246,835	$ 303,051

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Consolidated Statements of Comprehensive Loss (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (1,039,656)	$ (2,167,459)
Other comprehensive income (loss):
Foreign currency translation adjustments	(557,825)	(346,430)
Change in fair value of interest rate swap	56,216	65,278
Other comprehensive loss	(501,609)	(281,152)
Comprehensive loss	(1,541,265)	(2,448,611)
Comprehensive loss allocated to noncontrolling interests:
Comprehensive loss attributable to the noncontrolling interests in our Operating Partnership	13,575	12,414
Comprehensive income attributable to other noncontrolling interests	(2,611)	(10,831)
Comprehensive loss attributable to Strategic Storage Trust, Inc.	$ (1,530,301)	$ (2,447,028)

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC.

Effective September 15, 2009, the ASC was established as the single source of authoritative nongovernmental GAAP. Prior to the issuance of the ASC, all GAAP pronouncements were issued in separate topical pronouncements in the form of statements, staff positions or Emerging Issues Task Force Abstracts, and were referred to as such. While the ASC does not change GAAP, it introduces a new structure and supersedes all previously issued non-SEC accounting and reporting standards. In addition to the ASC, the Company is still required to follow SEC rules and regulations relating to the preparation of financial statements. The Company’s accounting policies are consistent with the guidance set forth by both the ASC and the SEC.

Reclassifications

Certain amounts previously reported in our 2013 financial statements have been reclassified to conform to the fiscal 2014 presentation.

Principles of Consolidation

Our financial statements, the financial statements of our Operating Partnership, including its wholly-owned subsidiaries, the financial statements of Self Storage REIT (REIT I) and Self Storage REIT II (REIT II), and the accounts of variable interest entities (VIEs) for which we are the primary beneficiary are consolidated in the accompanying consolidated financial statements. The portion of these entities not wholly-owned by us is presented as noncontrolling interests both as of and during the periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation.

Consolidation Considerations for Our Investments in Joint Ventures

Current accounting guidance provides a framework for identifying VIEs and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of the VIE in its consolidated financial statements. In general, a VIE is an entity or other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. Generally, a VIE should be consolidated if a party with an ownership, contractual, or other financial interest in the VIE (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities, and noncontrolling interest at fair value and subsequently account for the VIE as if it were consolidated based on majority voting interest. As of March 31, 2014 and December 31, 2013, we had entered into contracts/interests that were deemed to be variable interests in VIEs; those variable interests included both lease agreements and equity investments. We evaluated those variable interests against the criteria for consolidation and determined that we are not the primary beneficiary of certain investments discussed further in the “Equity Investments” section of this note.

As of December 31, 2013, we had an equity interest in a self storage property located in San Francisco, California (“SF property”) which was deemed to be a VIE of which we were the primary beneficiary. As such, the SF property was consolidated in our consolidated financial statements since the date we first acquired our interest in the property through the REIT I merger. In January 2010, we acquired an approximately 2% additional interest in the SF property, bringing our then total interest to approximately 12%. The SF property is owned by a Delaware Statutory Trust (DST), and by virtue of the trust agreement the investors in the trust did not have the direct or indirect ability through voting rights to make decisions about the DST’s significant activities. The REIT I operating partnership (the “REIT I Operating Partnership”) had also entered into a lease agreement for the SF property, in which the REIT I Operating Partnership was the tenant, which exposed it to losses of the VIE that could be significant to the VIE and also allowed it to direct activities of the VIE that determined its economic performance by means of its operation of the leased facility. In connection with the REIT I merger, our Sponsor entered into an agreement to indemnify us for any losses as a result of potential shortfalls in the lease payments required to be made by the REIT I Operating Partnership. Despite such indemnification, we were deemed to be the primary beneficiary, as our Sponsor was not deemed to have a variable interest in the SF property.

During January and February 2014, we acquired an additional approximately 86% of interests in the SF property from approximately 45 third-party sellers bringing our total interest to approximately 98%. Given that we had consolidated the SF property since we acquired the original interest, the current quarter acquisition of interests was treated as an acquisition of noncontrolling interests and the SF property is now consolidated as a majority owned subsidiary whereas we previously consolidated it as a VIE. For additional discussion, see Note 3.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at fair value, the determination if certain entities should be consolidated, the evaluation of potential impairment of long-lived assets and of assets held by equity method investees, and the useful lives of real estate assets and intangibles. Actual results could materially differ from those estimates.

Cash and Cash Equivalents

We consider all short-term, highly liquid investments that are readily convertible to cash with a maturity of three months or less at the time of purchase to be cash equivalents.

We may maintain cash equivalents in financial institutions in excess of insured limits, but believe this risk is mitigated by only investing in or through major financial institutions.

Restricted Cash

Restricted cash consists primarily of impound reserve accounts for property taxes, insurance and capital improvements in connection with the requirements of certain of our loan agreements.

Real Estate Purchase Price Allocation

We account for acquisitions in accordance with accounting guidance which requires that we allocate the purchase price of the property to the tangible and intangible assets acquired and the liabilities assumed based on estimated fair values. This guidance requires us to make significant estimates and assumptions, including fair value estimates, as of the acquisition date and to adjust those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for an acquisition). Acquisitions of portfolios of facilities are allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size, age, and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values, if available. Allocations to the individual assets and liabilities are based upon comparable market sales information for land and estimates of depreciated replacement cost of equipment, building and site improvements. In allocating the purchase price, we determine whether the acquisition includes intangible assets or liabilities. Substantially all of the leases in place at acquired properties are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date we have not allocated any portion of the purchase price to above or below market leases. We also consider whether in-place, market leases represent an intangible asset. We preliminarily recorded approximately $1.3 million in intangible assets to recognize the value of in-place leases related to our acquisitions during the first three months of 2014. We do not expect, nor to date have we recorded, intangible assets for the value of customer relationships because we will not have concentrations of significant customers and the average customer turnover is fairly frequent. Our acquisition-related transaction costs are required to be expensed as incurred. During the three months ended March 31, 2014 and 2013, we expensed approximately $0.7 million and $0.1 million, respectively, of acquisition related transaction costs.

Should the initial accounting for an acquisition be incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date and we record those adjustments to our financial statements. We apply those measurement period adjustments that we determine to be significant retrospectively to comparative information in our financial statements, potentially including adjustments to interest, depreciation and amortization expense.

Evaluation of Possible Impairment of Long-Lived Assets

Management will continually monitor events and changes in circumstances that could indicate that the carrying amounts of our long-lived assets, including those held through joint ventures, may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of the assets may not be recoverable, we will assess the recoverability of the assets by determining whether the carrying value of the long-lived assets will be recovered through the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived assets to the fair value and recognize an impairment loss. As of March 31, 2014 and December 31, 2013, no impairment losses have been recognized.

Equity Investments

Our investments in unconsolidated real estate joint ventures and VIEs in which we are not the primary beneficiary, where we have significant influence, but not control, are recorded under the equity method of accounting in the accompanying consolidated financial statements. Under the equity method, our investments in real estate ventures are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions. Equity in earnings of real estate ventures is generally recognized based on the allocation of cash distributions upon liquidation of the investment in accordance with the joint venture agreements.

Investments representing passive preferred equity and/or noncontrolling interests are accounted for under the cost method. Under the cost method, our investments in real estate ventures are carried at cost and adjusted for other-than-temporary declines in fair value, distributions representing a return of capital and additional investments.

Through mergers with REIT I and REIT II in 2009, we acquired preferred equity and/or noncontrolling interests in unconsolidated joint ventures all of which were deemed to be VIEs. We currently have two such interests and have evaluated each against the amended criteria for consolidation and determined that we are not the primary beneficiary, generally due to our inability to direct significant activities that determine the economic performance of the VIE. One of those investments is a passive or limited partner interest in two self storage facilities (such properties are owned by a DST, and by virtue of the related trust agreements, the investors have no direct or indirect ability through voting rights to make decisions about its significant activities) and is therefore accounted for under the cost method; our aggregate investment therein is approximately $0.1 million. Our ownership interest in such investment was approximately 1.49% and our risk of loss is limited to our investment therein.

The other interest is in a net leased industrial property (“Hawthorne property”) in California with 356,000 rentable square feet leased to a single tenant. This investment is accounted for under the equity method of accounting and our risk of loss is limited to our investment, including our maximum exposure under the terms of a debt guarantee. We own a 12% interest in Westport LAX LLC, the joint venture that acquired the Hawthorne property and the carrying value in such investment is approximately $1.3 million. Hawthorne LLC, an affiliate of our Sponsor, owns 78% of Westport LAX LLC, and we have a preferred equity interest in Hawthorne LLC which entitles us to distributions equal to 10% per annum on our investment of approximately $6.9 million and a non-interest bearing receivable of approximately $0.4 million. The preferred equity interest has a redemption date in November 2014, subject to extension at our sole discretion. The preferred equity interest may be called at any time in whole or part by Hawthorne LLC or redeemed at any time by us. The remaining 10% interest in Westport LAX LLC is owned by a third party, who is also the co-manager, along with our Sponsor, of the Hawthorne property. Such third party is the acting property manager and directs the operating activities of the property that determine its economic performance. We, along with other non-affiliated parties, are guarantors on the approximately $18.8 million loan used to secure the Hawthorne property; the loan has a maturity date of August 1, 2020. As of March 31, 2014, our maximum exposure to loss as a result of our involvement with this VIE, consisting of our investment balances and our guarantee of the secured debt, totaled approximately $27.4 million.

Revenue Recognition

Management believes that all of our leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from any long-term operating leases are recognized on a straight-line basis over the term of the lease. The excess of rents received over amounts contractually due pursuant to the underlying leases is included in accounts payable and accrued liabilities in our consolidated balance sheets and contractually due but unpaid rent is included in other assets.

Allowance for Doubtful Accounts

Tenant accounts receivable are reported net of an allowance for doubtful accounts. Management’s estimate of the allowance is based upon a review of the current status of tenant accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future.

Real Estate Facilities

Real estate facilities are recorded at cost. We capitalize costs incurred to develop, construct, renovate and improve properties, including interest and property taxes incurred during the construction period. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use.

Depreciation of Real Property Assets

Our management is required to make subjective assessments as to the useful lives of our depreciable assets. We consider the period of future benefit of the asset to determine the appropriate useful lives.

Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows:

Description	Standard Depreciable Life
Land		Not Depreciated
Buildings		30 to 35 years
Site Improvements		7 to 15 years

Depreciation of Personal Property Assets

Personal property assets, consisting primarily of furniture, fixtures and equipment are depreciated on a straight-line basis over the estimated useful lives generally ranging from 3 to 5 years, and are included in other assets on our consolidated balance sheets.

Intangible Assets

We have allocated a portion of our real estate purchase price to in-place leases. We are amortizing in-place leases on a straight-line basis over the estimated future benefit period. As of March 31, 2014 and December 31, 2013, accumulated amortization of in-place lease intangibles totaled approximately $46.3 million and $44.6 million, respectively.

Amortization of Deferred Financing Costs

Costs incurred in connection with obtaining financing are deferred and amortized on a straight-line basis over the term of the related loan, which is not materially different than the effective interest method. As of March 31, 2014 and December 31, 2013, accumulated amortization of deferred financing costs totaled approximately $6.1 million and $5.9 million, respectively.

Foreign Currency Translation

For non-U.S. functional currency operations, assets and liabilities are translated to U.S. dollars at current exchange rates. Revenues and expenses are translated at the average rates for the period. All related adjustments are recorded in other comprehensive income (loss) as a separate component of equity. Transactions denominated in a currency other than the functional currency of the related operation are recorded at rates of exchange in effect at the date of the transaction. Gains or losses on foreign currency transactions are recorded in other income (expense). For the three months ended March 31, 2014 and 2013, we recorded a loss of approximately $265,000 and $111,000, respectively.

Accounting for Equity Awards

The cost of restricted stock is required to be measured based on the grant-date fair value and the cost to be recognized over the relevant service period.

Fair Value Measurements

The accounting standard for fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and provides for expanded disclosure about fair value measurements. Fair value is defined by the accounting standard for fair value measurements and disclosures as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels. The following summarizes the three levels of inputs and hierarchy of fair value we use when measuring fair value:

• Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access;

• Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as interest rates and yield curves that are observable at commonly quoted intervals; and

• Level 3 inputs are unobservable inputs for the assets or liabilities that are typically based on an entity’s own assumptions as there is little, if any, related market activity.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level that is significant to the fair value measurement in its entirety.

The accounting guidance for fair value measurements and disclosures provides a framework for measuring fair value and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining fair value of our financial and non-financial assets and liabilities. Accordingly, there can be no assurance that the fair values we present herein are indicative of amounts that may ultimately be realized upon sale or other disposition of these assets.

Financial and non-financial assets and liabilities measured at fair value on a non-recurring basis in our consolidated financial statements consist of real estate and related assets and investments in unconsolidated joint ventures and related liabilities assumed and equity consideration related to our acquisitions. The fair values of these assets, liabilities and equity consideration were determined as of the acquisition dates using widely accepted valuation techniques, including (i) discounted cash flow analysis, which considers, among other things, leasing assumptions, growth rates, discount rates and terminal capitalization rates, (ii) income capitalization approach, which considers prevailing market capitalization rates, and (iii) comparable sales activity. In general, we consider multiple valuation techniques when measuring fair values. However, in certain circumstances, a single valuation technique may be appropriate. All of the fair values of the assets, liabilities and equity consideration as of the acquisition dates were derived using Level 3 inputs.

The carrying amounts of cash and cash equivalents, customer accounts receivable, other assets, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates approximate fair value because of the relatively short-term nature of these instruments.

The table below summarizes our fixed rate notes payable at March 31, 2014. 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 the fixed rate notes payable 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. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange.

	March 31, 2014				December 31, 2013
	Fair Value		Carrying Value		Fair Value		Carrying Value
Fixed Rate Secured Debt	$	311,141,708	$	299,850,852	$	311,362,132	$	300,894,201

As of March 31, 2014, we had an interest rate swap on one of our loans (See Notes 5 and 6). The valuation of this instrument was determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

To comply with GAAP, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of March 31, 2014, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. As of March 31, 2014, we had approximately $247,000 of Level 2 derivatives (interest rate swap) classified in accounts payable and accrued liabilities on our consolidated balance sheet.

Derivative Instruments and Hedging Activities

The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows or other types of forecasted transactions are considered cash flow hedges.

For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in the consolidated statements of operations. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income, outside of earnings and subsequently reclassified to earnings when the hedged transaction affects earnings.

Noncontrolling Interest in Consolidated Entities

We account for the noncontrolling interest in our Operating Partnership in accordance with amended accounting guidance. Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partner, our Operating Partnership, including its wholly-owned subsidiaries, is consolidated with the Company and the limited partner interest is reflected as a noncontrolling interest in the accompanying consolidated balance sheets. In addition, we account for the noncontrolling interest in the SF property in accordance with the amended accounting guidance. The noncontrolling interests shall continue to be attributed their share of income and losses, even if that attribution results in a deficit noncontrolling interest balance.

Income Taxes

We made an election to be taxed as a Real Estate Investment Trust (“REIT”), under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with our taxable year ended December 31, 2008. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the REIT’s ordinary taxable income to stockholders. As a REIT, we generally will not be subject to Federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will then be subject to Federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for Federal income tax purposes for four years following the year during which qualification is lost unless the IRS grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we will be organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for Federal income tax purposes. We have concluded that there are no significant uncertain tax positions requiring recognition or disclosure in our consolidated financial statements.

Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and Federal income and excise taxes on our undistributed income.

We have filed an election to treat the TRSs as taxable REIT subsidiaries. In general, the TRSs may perform additional services for our customers and generally may engage in any real estate or non-real estate related business. The TRSs are subject to corporate Federal and state income tax. The TRSs follow accounting guidance which requires the use of the asset and liability method. Deferred income taxes will represent the tax effect of future differences between the book and tax bases of assets and liabilities.

Per Share Data

Basic earnings per share attributable for all periods presented are computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted earnings per share are computed by dividing net income (loss) by the weighted average number of shares outstanding, including all restricted stock grants as though fully vested. For each of the three months ended March 31, 2014 and 2013, 6,250 shares, of unvested restricted stock were not included in the diluted weighted average shares as such shares were antidilutive.

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Organization - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended				0 Months Ended					0 Months Ended		0 Months Ended			3 Months Ended
	Mar. 31, 2011	Mar. 31, 2014 State sqft Store	Mar. 31, 2013	Dec. 31, 2013	Sep. 22, 2011	Sep. 23, 2013 IPO	Sep. 16, 2011 IPO	Sep. 22, 2011 Public Offering	Aug. 24, 2007 Strategic Storage Operating Partnership, L.P.	Mar. 31, 2014 Strategic Storage Operating Partnership, L.P.	Sep. 23, 2013 Distribution Reinvestment Plan	Sep. 22, 2011 Distribution Reinvestment Plan	Sep. 28, 2013 Distribution Reinvestment Plan Maximum	Sep. 23, 2013 Distribution Reinvestment Plan Maximum	Aug. 24, 2007 Strategic Storage Advisor, LLC,	Mar. 31, 2014 Strategic Storage Advisor, LLC,	Mar. 31, 2014 Strategic Storage Advisor, LLC, Strategic Storage Operating Partnership, L.P.
Organization and Nature of Operations [Line Items]
Date of formation of company		Aug. 14, 2007
Sale of common shares		$ 554,000,000				$ 256,000,000	$ 289,000,000								$ 1,000
Number of shares sold		54,500,000				25,000,000	29,000,000	100,000,000							100
Common stock, shares authorized		700,000,000		700,000,000
Common stock, par value		$ 0.001		$ 0.001
Number of preferred stock, shares		200,000,000		200,000,000
Preferred stock, par value		$ 0.001		$ 0.001
Advisor purchased a limited partnership interest in Operating Partnership									200,000
Initial capital contribution									1,000
Percentage of limited partnership interests										98.87%
Percentage of limited partnership interests owned by noncontrolling owners										1.10%							0.03%
Shares offered in follow-on public offering					110,000,000
Shares potentially issuable in follow-on offering, pursuant to dividend reinvestment plan												10,000,000
Date of launch of the Initial Offering		Mar. 17, 2008
Date of satisfying minimum offering requirements and commencing formal operations		May 22, 2008
Initial offering termination date		Sep. 16, 2011
Date of commencing follow-on public offering		Sep. 22, 2011
Follow-on offering termination date		Sep. 22, 2013
Additional shares registered		$ 4,512,649	$ 3,521,241										$ 51,250,000	$ 51,250,000
Offering termination period											10 days
Percentage owned by chief executive officer in Dealer Manager		15.00%														15.00%
Number of Class D Units issued by Operating Partnership in connection with acquisition of the Las Vegas VII and Las Vegas VIII properties	120,000
Conversion of partnership units, description		Finally, a limited partner in our Operating Partnership may later exchange his or her limited partnership units in our Operating Partnership for shares of our common stock at any time after one year following the date of issuance of their limited partnership units, subject to certain restrictions as outlined in the limited partnership agreement.
Number of wholly-owned self storage facilities		124
Number of owned self storage facilities		125
Number of partially owned self storage facilities		1
Ownership percentage of partially owned self storage facility		98.00%
Number of states in which wholly-owned self storage facilities are located		17
Number of operation units		79,455
Net rentable square feet of the facilities		10,400,000
Noncontrolling interests in additional self storage facilities		2
Area of lease to single tenant		356,000

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Future Principal Payment Requirements on Outstanding Secured Debt (Detail) (USD $)	Mar. 31, 2014
Debt Disclosure [Abstract]
2014	$ 9,761,651
2015	31,013,997
2016	123,634,534
2017	49,415,409
2018	19,074,211
2019 and thereafter	155,752,897
Total payments	388,652,699	[1]
Unamortized fair value adjustment	897,225
Total	$ 389,549,924

[1] This table reflects both the revised terms of the Dufferin - Toronto Loan and the refinance of the Riverdale and SF Bay Area - Vallejo loans through the KeyBank Revolver. See Note 11 for additional discussion.

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC.

Effective September 15, 2009, the ASC was established as the single source of authoritative nongovernmental GAAP. Prior to the issuance of the ASC, all GAAP pronouncements were issued in separate topical pronouncements in the form of statements, staff positions or Emerging Issues Task Force Abstracts, and were referred to as such. While the ASC does not change GAAP, it introduces a new structure and supersedes all previously issued non-SEC accounting and reporting standards. In addition to the ASC, the Company is still required to follow SEC rules and regulations relating to the preparation of financial statements. The Company’s accounting policies are consistent with the guidance set forth by both the ASC and the SEC.

Reclassifications

Reclassifications

Certain amounts previously reported in our 2013 financial statements have been reclassified to conform to the fiscal 2014 presentation.

Principles of Consolidation

Principles of Consolidation

Our financial statements, the financial statements of our Operating Partnership, including its wholly-owned subsidiaries, the financial statements of Self Storage REIT (REIT I) and Self Storage REIT II (REIT II), and the accounts of variable interest entities (VIEs) for which we are the primary beneficiary are consolidated in the accompanying consolidated financial statements. The portion of these entities not wholly-owned by us is presented as noncontrolling interests both as of and during the periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation.

Consolidation Considerations for Our Investments in Joint Ventures

Consolidation Considerations for Our Investments in Joint Ventures

Current accounting guidance provides a framework for identifying VIEs and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of the VIE in its consolidated financial statements. In general, a VIE is an entity or other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. Generally, a VIE should be consolidated if a party with an ownership, contractual, or other financial interest in the VIE (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities, and noncontrolling interest at fair value and subsequently account for the VIE as if it were consolidated based on majority voting interest. As of March 31, 2014 and December 31, 2013, we had entered into contracts/interests that were deemed to be variable interests in VIEs; those variable interests included both lease agreements and equity investments. We evaluated those variable interests against the criteria for consolidation and determined that we are not the primary beneficiary of certain investments discussed further in the “Equity Investments” section of this note.

As of December 31, 2013, we had an equity interest in a self storage property located in San Francisco, California (“SF property”) which was deemed to be a VIE of which we were the primary beneficiary. As such, the SF property was consolidated in our consolidated financial statements since the date we first acquired our interest in the property through the REIT I merger. In January 2010, we acquired an approximately 2% additional interest in the SF property, bringing our then total interest to approximately 12%. The SF property is owned by a Delaware Statutory Trust (DST), and by virtue of the trust agreement the investors in the trust did not have the direct or indirect ability through voting rights to make decisions about the DST’s significant activities. The REIT I operating partnership (the “REIT I Operating Partnership”) had also entered into a lease agreement for the SF property, in which the REIT I Operating Partnership was the tenant, which exposed it to losses of the VIE that could be significant to the VIE and also allowed it to direct activities of the VIE that determined its economic performance by means of its operation of the leased facility. In connection with the REIT I merger, our Sponsor entered into an agreement to indemnify us for any losses as a result of potential shortfalls in the lease payments required to be made by the REIT I Operating Partnership. Despite such indemnification, we were deemed to be the primary beneficiary, as our Sponsor was not deemed to have a variable interest in the SF property.

During January and February 2014, we acquired an additional approximately 86% of interests in the SF property from approximately 45 third-party sellers bringing our total interest to approximately 98%. Given that we had consolidated the SF property since we acquired the original interest, the current quarter acquisition of interests was treated as an acquisition of noncontrolling interests and the SF property is now consolidated as a majority owned subsidiary whereas we previously consolidated it as a VIE. For additional discussion, see Note 3.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at fair value, the determination if certain entities should be consolidated, the evaluation of potential impairment of long-lived assets and of assets held by equity method investees, and the useful lives of real estate assets and intangibles. Actual results could materially differ from those estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

We consider all short-term, highly liquid investments that are readily convertible to cash with a maturity of three months or less at the time of purchase to be cash equivalents.

We may maintain cash equivalents in financial institutions in excess of insured limits, but believe this risk is mitigated by only investing in or through major financial institutions.

Restricted Cash

Restricted Cash

Restricted cash consists primarily of impound reserve accounts for property taxes, insurance and capital improvements in connection with the requirements of certain of our loan agreements.

Real Estate Purchase Price Allocation

Real Estate Purchase Price Allocation

We account for acquisitions in accordance with accounting guidance which requires that we allocate the purchase price of the property to the tangible and intangible assets acquired and the liabilities assumed based on estimated fair values. This guidance requires us to make significant estimates and assumptions, including fair value estimates, as of the acquisition date and to adjust those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for an acquisition). Acquisitions of portfolios of facilities are allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size, age, and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values, if available. Allocations to the individual assets and liabilities are based upon comparable market sales information for land and estimates of depreciated replacement cost of equipment, building and site improvements. In allocating the purchase price, we determine whether the acquisition includes intangible assets or liabilities. Substantially all of the leases in place at acquired properties are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date we have not allocated any portion of the purchase price to above or below market leases. We also consider whether in-place, market leases represent an intangible asset. We preliminarily recorded approximately $1.3 million in intangible assets to recognize the value of in-place leases related to our acquisitions during the first three months of 2014. We do not expect, nor to date have we recorded, intangible assets for the value of customer relationships because we will not have concentrations of significant customers and the average customer turnover is fairly frequent. Our acquisition-related transaction costs are required to be expensed as incurred. During the three months ended March 31, 2014 and 2013, we expensed approximately $0.7 million and $0.1 million, respectively, of acquisition related transaction costs.

Should the initial accounting for an acquisition be incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date and we record those adjustments to our financial statements. We apply those measurement period adjustments that we determine to be significant retrospectively to comparative information in our financial statements, potentially including adjustments to interest, depreciation and amortization expense.

Evaluation of Possible Impairment of Long-Lived Assets

Evaluation of Possible Impairment of Long-Lived Assets

Management will continually monitor events and changes in circumstances that could indicate that the carrying amounts of our long-lived assets, including those held through joint ventures, may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of the assets may not be recoverable, we will assess the recoverability of the assets by determining whether the carrying value of the long-lived assets will be recovered through the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived assets to the fair value and recognize an impairment loss. As of March 31, 2014 and December 31, 2013, no impairment losses have been recognized.

Equity Investments

Equity Investments

Our investments in unconsolidated real estate joint ventures and VIEs in which we are not the primary beneficiary, where we have significant influence, but not control, are recorded under the equity method of accounting in the accompanying consolidated financial statements. Under the equity method, our investments in real estate ventures are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions. Equity in earnings of real estate ventures is generally recognized based on the allocation of cash distributions upon liquidation of the investment in accordance with the joint venture agreements.

Investments representing passive preferred equity and/or noncontrolling interests are accounted for under the cost method. Under the cost method, our investments in real estate ventures are carried at cost and adjusted for other-than-temporary declines in fair value, distributions representing a return of capital and additional investments.

Through mergers with REIT I and REIT II in 2009, we acquired preferred equity and/or noncontrolling interests in unconsolidated joint ventures all of which were deemed to be VIEs. We currently have two such interests and have evaluated each against the amended criteria for consolidation and determined that we are not the primary beneficiary, generally due to our inability to direct significant activities that determine the economic performance of the VIE. One of those investments is a passive or limited partner interest in two self storage facilities (such properties are owned by a DST, and by virtue of the related trust agreements, the investors have no direct or indirect ability through voting rights to make decisions about its significant activities) and is therefore accounted for under the cost method; our aggregate investment therein is approximately $0.1 million. Our ownership interest in such investment was approximately 1.49% and our risk of loss is limited to our investment therein.

The other interest is in a net leased industrial property (“Hawthorne property”) in California with 356,000 rentable square feet leased to a single tenant. This investment is accounted for under the equity method of accounting and our risk of loss is limited to our investment, including our maximum exposure under the terms of a debt guarantee. We own a 12% interest in Westport LAX LLC, the joint venture that acquired the Hawthorne property and the carrying value in such investment is approximately $1.3 million. Hawthorne LLC, an affiliate of our Sponsor, owns 78% of Westport LAX LLC, and we have a preferred equity interest in Hawthorne LLC which entitles us to distributions equal to 10% per annum on our investment of approximately $6.9 million and a non-interest bearing receivable of approximately $0.4 million. The preferred equity interest has a redemption date in November 2014, subject to extension at our sole discretion. The preferred equity interest may be called at any time in whole or part by Hawthorne LLC or redeemed at any time by us. The remaining 10% interest in Westport LAX LLC is owned by a third party, who is also the co-manager, along with our Sponsor, of the Hawthorne property. Such third party is the acting property manager and directs the operating activities of the property that determine its economic performance. We, along with other non-affiliated parties, are guarantors on the approximately $18.8 million loan used to secure the Hawthorne property; the loan has a maturity date of August 1, 2020. As of March 31, 2014, our maximum exposure to loss as a result of our involvement with this VIE, consisting of our investment balances and our guarantee of the secured debt, totaled approximately $27.4 million.

Revenue Recognition

Revenue Recognition

Management believes that all of our leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from any long-term operating leases are recognized on a straight-line basis over the term of the lease. The excess of rents received over amounts contractually due pursuant to the underlying leases is included in accounts payable and accrued liabilities in our consolidated balance sheets and contractually due but unpaid rent is included in other assets.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

Tenant accounts receivable are reported net of an allowance for doubtful accounts. Management’s estimate of the allowance is based upon a review of the current status of tenant accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future.

Real Estate Facilities

Real Estate Facilities

Real estate facilities are recorded at cost. We capitalize costs incurred to develop, construct, renovate and improve properties, including interest and property taxes incurred during the construction period. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use.

Depreciation of Real Property Assets

Depreciation of Real Property Assets

Our management is required to make subjective assessments as to the useful lives of our depreciable assets. We consider the period of future benefit of the asset to determine the appropriate useful lives.

Depreciation of Personal Property Assets

Depreciation of Personal Property Assets

Personal property assets, consisting primarily of furniture, fixtures and equipment are depreciated on a straight-line basis over the estimated useful lives generally ranging from 3 to 5 years, and are included in other assets on our consolidated balance sheets.

Intangible Assets

Intangible Assets

We have allocated a portion of our real estate purchase price to in-place leases. We are amortizing in-place leases on a straight-line basis over the estimated future benefit period. As of March 31, 2014 and December 31, 2013, accumulated amortization of in-place lease intangibles totaled approximately $46.3 million and $44.6 million, respectively.

Amortization of Deferred Financing Costs

Amortization of Deferred Financing Costs

Costs incurred in connection with obtaining financing are deferred and amortized on a straight-line basis over the term of the related loan, which is not materially different than the effective interest method. As of March 31, 2014 and December 31, 2013, accumulated amortization of deferred financing costs totaled approximately $6.1 million and $5.9 million, respectively.

Foreign Currency Translation

Foreign Currency Translation

For non-U.S. functional currency operations, assets and liabilities are translated to U.S. dollars at current exchange rates. Revenues and expenses are translated at the average rates for the period. All related adjustments are recorded in other comprehensive income (loss) as a separate component of equity. Transactions denominated in a currency other than the functional currency of the related operation are recorded at rates of exchange in effect at the date of the transaction. Gains or losses on foreign currency transactions are recorded in other income (expense). For the three months ended March 31, 2014 and 2013, we recorded a loss of approximately $265,000 and $111,000, respectively.

Accounting for Equity Awards

Accounting for Equity Awards

The cost of restricted stock is required to be measured based on the grant-date fair value and the cost to be recognized over the relevant service period.

Fair Value Measurements

Fair Value Measurements

The accounting standard for fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and provides for expanded disclosure about fair value measurements. Fair value is defined by the accounting standard for fair value measurements and disclosures as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels. The following summarizes the three levels of inputs and hierarchy of fair value we use when measuring fair value:

• Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access;

• Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as interest rates and yield curves that are observable at commonly quoted intervals; and

• Level 3 inputs are unobservable inputs for the assets or liabilities that are typically based on an entity’s own assumptions as there is little, if any, related market activity.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level that is significant to the fair value measurement in its entirety.

The accounting guidance for fair value measurements and disclosures provides a framework for measuring fair value and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining fair value of our financial and non-financial assets and liabilities. Accordingly, there can be no assurance that the fair values we present herein are indicative of amounts that may ultimately be realized upon sale or other disposition of these assets.

Financial and non-financial assets and liabilities measured at fair value on a non-recurring basis in our consolidated financial statements consist of real estate and related assets and investments in unconsolidated joint ventures and related liabilities assumed and equity consideration related to our acquisitions. The fair values of these assets, liabilities and equity consideration were determined as of the acquisition dates using widely accepted valuation techniques, including (i) discounted cash flow analysis, which considers, among other things, leasing assumptions, growth rates, discount rates and terminal capitalization rates, (ii) income capitalization approach, which considers prevailing market capitalization rates, and (iii) comparable sales activity. In general, we consider multiple valuation techniques when measuring fair values. However, in certain circumstances, a single valuation technique may be appropriate. All of the fair values of the assets, liabilities and equity consideration as of the acquisition dates were derived using Level 3 inputs.

The carrying amounts of cash and cash equivalents, customer accounts receivable, other assets, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates approximate fair value because of the relatively short-term nature of these instruments.

The table below summarizes our fixed rate notes payable at March 31, 2014. 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 the fixed rate notes payable 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. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange.

As of March 31, 2014, we had an interest rate swap on one of our loans (See Notes 5 and 6). The valuation of this instrument was determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

To comply with GAAP, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of March 31, 2014, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. As of March 31, 2014, we had approximately $247,000 of Level 2 derivatives (interest rate swap) classified in accounts payable and accrued liabilities on our consolidated balance sheet.

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows or other types of forecasted transactions are considered cash flow hedges.

For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in the consolidated statements of operations. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income, outside of earnings and subsequently reclassified to earnings when the hedged transaction affects earnings.

Noncontrolling Interest in Consolidated Entities

Noncontrolling Interest in Consolidated Entities

We account for the noncontrolling interest in our Operating Partnership in accordance with amended accounting guidance. Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partner, our Operating Partnership, including its wholly-owned subsidiaries, is consolidated with the Company and the limited partner interest is reflected as a noncontrolling interest in the accompanying consolidated balance sheets. In addition, we account for the noncontrolling interest in the SF property in accordance with the amended accounting guidance. The noncontrolling interests shall continue to be attributed their share of income and losses, even if that attribution results in a deficit noncontrolling interest balance.

Income Taxes

Income Taxes

We made an election to be taxed as a Real Estate Investment Trust (“REIT”), under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with our taxable year ended December 31, 2008. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the REIT’s ordinary taxable income to stockholders. As a REIT, we generally will not be subject to Federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will then be subject to Federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for Federal income tax purposes for four years following the year during which qualification is lost unless the IRS grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we will be organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for Federal income tax purposes. We have concluded that there are no significant uncertain tax positions requiring recognition or disclosure in our consolidated financial statements.

Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and Federal income and excise taxes on our undistributed income.

We have filed an election to treat the TRSs as taxable REIT subsidiaries. In general, the TRSs may perform additional services for our customers and generally may engage in any real estate or non-real estate related business. The TRSs are subject to corporate Federal and state income tax. The TRSs follow accounting guidance which requires the use of the asset and liability method. Deferred income taxes will represent the tax effect of future differences between the book and tax bases of assets and liabilities.

Per Share Data

Per Share Data

Basic earnings per share attributable for all periods presented are computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted earnings per share are computed by dividing net income (loss) by the weighted average number of shares outstanding, including all restricted stock grants as though fully vested. For each of the three months ended March 31, 2014 and 2013, 6,250 shares, of unvested restricted stock were not included in the diluted weighted average shares as such shares were antidilutive.