10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2024

☐ 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: 000-55617

SmartStop Self Storage REIT, Inc.

(Exact name of Registrant as specified in its charter)

Maryland	46-1722812
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

10 Terrace Road

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)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
None	None	None

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

As of May 9, 2024, there were 88,471,131 outstanding shares of Class A common stock and 8,099,498 outstanding shares of Class T common stock of the registrant.

FORM 10-Q

SMARTSTOP SELF STORAGE REIT, INC.

TABLE OF CONTENTS

		Page No.
	Cautionary Note Regarding Forward-Looking Statements	3
PART I.	FINANCIAL INFORMATION	5
Item 1.	Consolidated Financial Statements:	5
	Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023	6
	Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (unaudited)	7
	Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023 (unaudited)	8
	Consolidated Statements of Equity and Temporary Equity for the Three Months Ended March 31, 2023 (unaudited)	9
	Consolidated Statements of Equity and Temporary Equity for the Three Months Ended March 31, 2024 (unaudited)	10
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (unaudited)	11
	Notes to Consolidated Financial Statements (unaudited)	12
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	55
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	71
Item 4.	Controls and Procedures	72
PART II.	OTHER INFORMATION	73
Item 1.	Legal Proceedings	73
Item 1A.	Risk Factors	73
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73
Item 3.	Defaults Upon Senior Securities	73
Item 4.	Mine Safety Disclosures	73
Item 5.	Other Information	73
Item 6.	Exhibits	73

2

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Form 10-Q of SmartStop Self Storage REIT, 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 forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “seek,” “continue,” or other similar words.

Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of, and assumptions made by, our management and involve uncertainties that could significantly affect our financial results. Such statements include, but are not limited to: (i) statements about our plans, strategies, initiatives, and prospects; and (ii) statements about our future results of operations, capital expenditures, and liquidity. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation:

•We have paid, and may continue to pay, distributions from sources other than cash flow from operations; therefore, we will have fewer funds available for the acquisition of properties, and our stockholders’ overall return may be reduced.

•There is currently no public trading market for our shares and there may never be one; therefore, it will be difficult for our stockholders to sell their shares. Our charter does not require us to pursue a liquidity transaction at any time.

•Our share redemption program is partially suspended, and even if stockholders are able to have their shares redeemed, our stockholders may not be able to recover the amount of their investment in our shares.

•We have issued Series A Convertible Preferred Stock that ranks senior to all common stock and grants the holder superior rights compared to common stockholders, which may have the effect of diluting our stockholders’ interests in us and discouraging a takeover or other similar transaction.

•We may only calculate the estimated value per share for our shares annually and, therefore, our stockholders may not be able to determine the estimated net asset value of their shares on an ongoing basis.

•If we fail to maintain an effective system of internal control over financial reporting and disclosure controls, we may not be able to accurately and timely report our financial results.

•Our future results may suffer as a result of the effect of recent affiliated mergers, acquisitions and other strategic transactions.

•Certain of our officers and key personnel will face competing demands relating to their time and will face conflicts of interest related to the positions they hold with affiliated entities, which could cause our business to suffer.

•Revenue and earnings from the Managed REIT Platform are uncertain.

•A subsidiary of ours is the sponsor of the Managed REITs and may sponsor additional future programs. As a result, we could be subject to any litigation that may arise by investors in those entities or the respective operations of those entities.

•Because we are focused on the self storage industry, our rental revenues will be significantly influenced by demand for self storage space generally, and a decrease in such demand would likely have a greater adverse effect on our rental revenues than if we owned a more diversified real estate portfolio.

•A high concentration of our properties in a particular geographic area would magnify the effects of downturns in that geographic area.

•Property taxes may increase, which would adversely affect our net operating income and cash available for distributions.

•If we suffer losses that are not covered by insurance or that are in excess of insurance coverage, we could lose invested capital and anticipated profits.

3

•Changes in the Canadian Dollar/USD exchange rate could have a material adverse effect on our operating results and value of the investment of our stockholders.

•We have broad authority to incur debt, and high debt levels could hinder our ability to continue to pay distributions at the current rate and could decrease the value of our stockholders’ investments.

•We have incurred and intend to continue to incur, mortgage indebtedness and other borrowings, which may increase our business risks.

•If we or the other parties to our loans or secured notes payable, as applicable, breach covenants thereunder, such loan or loans or secured notes payable could be deemed in default, which could accelerate our repayment date and materially adversely affect the value of our stockholders’ investment in us.

•Increases in interest rates could increase the amount of our debt payments and adversely affect our ability to continue to pay distributions at the current rate to our stockholders.

•Failure to continue to qualify as a REIT would adversely affect our operations and our ability to continue to pay distributions at our current level as we will incur additional tax liabilities.

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 U.S. Securities and Exchange Commission (the “SEC”) and are not intended to be a guarantee of our performance in future periods. 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.

For further information regarding risks and uncertainties associated with our business, and important factors that could cause our actual results to vary materially from those expressed or implied in such forward-looking statements, please refer to the factors listed and described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the “Risk Factors” sections of the documents we file from time to time with the SEC, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC, as supplemented by the risk factors included in Part II, Item 1A of this Form 10-Q, copies of which may be obtained from our website at www.investors.smartstopselfstorage.com.

4

PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The information furnished in the accompanying unaudited consolidated balance sheets and related consolidated statements of operations, comprehensive income (loss), equity and temporary 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 consolidated financial statements.

The accompanying consolidated financial statements should be read in conjunction with the notes to our consolidated financial statements included in this report on Form 10-Q. The accompanying consolidated financial statements should also be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Our results of operations for the three months ended March 31, 2024 are not necessarily indicative of the operating results expected for the full year.

5

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	March 31, 2024 (Unaudited)			December 31, 2023
ASSETS
Real estate facilities:
Land	$	429,987,849		$	430,868,563
Buildings		1,398,893,933			1,401,981,394
Site improvements		91,775,505			91,896,415
		1,920,657,287			1,924,746,372
Accumulated depreciation		(268,458,218	)		(255,844,284	)
		1,652,199,069			1,668,902,088
Construction in process		8,338,093			5,976,946
Real estate facilities, net		1,660,537,162			1,674,879,034
Cash and cash equivalents		39,157,898			45,079,371
Restricted cash		6,913,534			8,347,805
Investments in unconsolidated real estate ventures (Note 4)		36,155,596			35,831,600
Investments in and advances to Managed REITs		36,070,661			34,390,866
Deferred tax assets		4,539,378			4,449,665
Other assets, net		23,656,576			21,701,107
Intangible assets, net of accumulated amortization		1,108,769			1,170,100
Trademarks, net of accumulated amortization		15,735,294			15,770,588
Goodwill		53,643,331			53,643,331
Debt issuance costs, net of accumulated amortization		8,878,424			377,258
Total assets	$	1,886,396,623		$	1,895,640,725
LIABILITIES, TEMPORARY EQUITY, AND EQUITY
Debt, net	$	1,093,200,523		$	1,087,401,334
Accounts payable and accrued liabilities		38,256,292			28,977,714
Due to affiliates		415,980			415,980
Distributions payable		8,881,526			9,155,808
Deferred tax liabilities		6,106,530			6,193,675
Total liabilities		1,146,860,851			1,132,144,511
Commitments and contingencies (Note 12)
Redeemable common stock		68,311,548			71,277,195
Preferred stock, $0.001 par value; 200,000,000 shares authorized:
Series A Convertible Preferred Stock, $0.001 par value; 200,000 shares    authorized; 200,000 and 200,000 shares issued and outstanding at March 31,    2024 and December 31, 2023, respectively, with aggregate liquidation    preferences of $203,107,924 and $203,150,685 at March 31, 2024 and    December 31, 2023, respectively		196,356,107			196,356,107
Equity:
SmartStop Self Storage REIT, Inc.:
Class A common stock, $0.001 par value; 350,000,000 shares     authorized; 88,869,543 and 88,761,135 shares issued and     outstanding at March 31, 2024 and December 31, 2023, respectively		88,870			88,762
Class T common stock, $0.001 par value; 350,000,000 shares     authorized; 8,127,815 and 8,113,827 shares issued and     outstanding at March 31, 2024 and December 31, 2023, respectively		8,128			8,114
Additional paid-in capital		894,796,414			894,856,554
Distributions		(338,633,835	)		(324,190,556	)
Accumulated deficit		(171,918,215	)		(167,270,293	)
Accumulated other comprehensive income		432,640			847,183
Total SmartStop Self Storage REIT, Inc. equity		384,774,002			404,339,764
Noncontrolling interests in our Operating Partnership		90,068,769			91,488,207
Other noncontrolling interests		25,346			34,941
Total noncontrolling interests		90,094,115			91,523,148
Total equity		474,868,117			495,862,912
Total liabilities, temporary equity and equity	$	1,886,396,623		$	1,895,640,725

See notes to consolidated financial statements.

6

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended March 31,
	2024			2023
Revenues:
Self storage rental revenue	$	50,469,142		$	51,276,898
Ancillary operating revenue		2,192,633			2,190,622
Managed REIT Platform revenue		2,734,207			2,276,535
Reimbursable costs from Managed REITs		1,646,075			1,391,210
Total revenues		57,042,057			57,135,265
Operating expenses:
Property operating expenses		17,389,955			16,533,452
Managed REIT Platform expenses		851,187			549,936
Reimbursable costs from Managed REITs		1,646,075			1,391,210
General and administrative		7,426,164			6,536,626
Depreciation		13,584,398			13,272,271
Intangible amortization expense		73,065			1,919,705
Acquisition expenses		70,876			31,190
Total operating expenses		41,041,720			40,234,390
Income from operations		16,000,337			16,900,875
Other income (expense):
Equity in earnings (losses) from    investments in JV Properties		(329,092	)		(405,111	)
Equity in earnings (losses) from    investments in Managed REITs		(451,562	)		(233,025	)
Other, net		507,515			750,978
Interest expense		(16,553,242	)		(14,703,897	)
Loss on debt extinguishment		(471,166	)		—
Income tax expense		(342,303	)		(277,220	)
Net income (loss)		(1,639,513	)		2,032,600
Net (income) loss attributable to    noncontrolling interests		99,515			(340,365	)
Less: Distributions to preferred stockholders		(3,107,924	)		(3,082,192	)
Net loss attributable to     SmartStop Self Storage REIT, Inc.       common stockholders	$	(4,647,922	)	$	(1,389,957	)
Net loss per Class A & Class T share –    basic and diluted	$	(0.05	)	$	(0.02	)
Weighted average Class A shares outstanding –    basic and diluted		88,714,643			88,735,173
Weighted average Class T shares outstanding –    basic and diluted		8,117,260			8,085,550

See notes to consolidated financial statements.

7

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three Months Ended March 31,
	2024			2023
Net income (loss)	$	(1,639,513	)	$	2,032,600
Other comprehensive income (loss):
Foreign currency translation adjustment		(1,319,976	)		253,576
Foreign currency hedge contract gains (losses)		1,355,914			(91,616	)
Interest rate swap and cap contract gains (losses)		(506,672	)		(1,493,341	)
Other comprehensive income (loss)		(470,734	)		(1,331,381	)
Comprehensive income (loss)		(2,110,247	)		701,219
Comprehensive income attributable to      noncontrolling interests:
Comprehensive income (loss) attributable to       noncontrolling interests		155,706			(185,805	)
Comprehensive income (loss) attributable to      SmartStop Self Storage REIT, Inc.      stockholders	$	(1,954,541	)	$	515,414

See notes to consolidated financial statements.

8

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY AND TEMPORARY EQUITY

(Unaudited)

	Common Stock
	Class A						Class T
	Number of Shares			Common Stock Par Value			Number of Shares		Common Stock Par Value		Additional Paid-in Capital			Distributions			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Total SmartStop Self Storage REIT, Inc. Equity			Noncontrolling Interests			Total Equity			Preferred Stock		Redeemable Common Stock
Balance as of December 31, 2022		88,853,454		$	88,853			8,085,550	$	8,085	$	894,283,954		$	(266,151,517	)	$	(164,524,595	)	$	3,654,682		$	467,359,462		$	94,460,245		$	561,819,707		$	196,356,107	$	76,578,073
Tax withholding (net settlement)      related to vesting of restricted      stock		(14,786	)		(15	)		—		—		(211,951	)		—			—			—			(211,966	)		—			(211,966	)		—		—
Redemptions of common stock		—			—			—		—		—			—			—			—			—			—			—			—		(4,715,055	)
Issuance of restricted stock,      net of forfeitures		43,876			44			—		—		—			—			—			—			44			—			44			—		—
Distributions ($0.15 per share)		—			—			—		—		—			(14,260,984	)		—			—			(14,260,984	)		—			(14,260,984	)		—		—
Distributions to noncontrolling     interests in our Operating     Partnership		—			—			—		—		—			—			—			—			—			(2,028,207	)		(2,028,207	)		—		—
Distributions to other     noncontrolling interests		—			—			—		—		—			—			—			—			—			(129,486	)		(129,486	)		—		—
Equity based compensation expense		—			—			—		—		282,654			—			—			—			282,654			823,459			1,106,113			—		—
Net income attributable to      SmartStop Self Storage      REIT, Inc. common      stockholders		—			—			—		—		—			—			(1,389,957	)		—			(1,389,957	)		—			(1,389,957	)		—		—
Net income attributable to the       noncontrolling interests in our       Operating Partnership		—			—			—		—		—			—			—			—			—			232,943			232,943			—		—
Net income attributable to other       noncontrolling interests		—			—			—		—		—			—			—			—			—			107,422			107,422			—		—
Foreign currency translation     adjustment		—			—			—		—		—			—			—			224,139			224,139			29,437			253,576			—		—
Foreign currency hedge      contract loss		—			—			—		—		—			—			—			(80,980	)		(80,980	)		(10,636	)		(91,616	)		—		—
Interest rate hedge      contract loss		—			—			—		—		—			—			—			(1,319,980	)		(1,319,980	)		(173,361	)		(1,493,341	)		—		—
Balance as of March 31, 2023		88,882,544		$	88,882			8,085,550	$	8,085	$	894,354,657		$	(280,412,501	)	$	(165,914,552	)	$	2,477,861		$	450,602,432		$	93,311,816		$	543,914,248		$	196,356,107	$	71,863,018

See notes to consolidated financial statements.

9

	Common Stock
	Class A						Class T
	Number of Shares			Common Stock Par Value			Number of Shares			Common Stock Par Value			Additional Paid-in Capital			Distributions			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Total SmartStop Self Storage REIT, Inc. Equity			Noncontrolling Interests			Total Equity			Preferred Stock		Redeemable Common Stock
Balance as of December 31, 2023		88,761,135		$	88,762			8,113,827		$	8,114		$	894,856,554		$	(324,190,556	)	$	(167,270,293	)	$	847,183		$	404,339,764		$	91,523,148		$	495,862,912		$	196,356,107	$	71,277,195
Tax withholding (net settlement)      related to vesting of restricted      stock		(15,315	)		(15	)		—			—			(218,755	)		—			—			—			(218,770	)		—			(218,770	)		—		—
Changes to redeemable     common stock		—			—			—			—			(5,694,427	)		—			—			—			(5,694,427	)		—			(5,694,427	)		—		5,694,427
Redemptions of common stock		(248,578	)		(249	)		(24,590	)		(25	)		—			—			—			—			(274	)		—			(274	)		—		(8,660,074	)
Issuance of restricted stock,      net of forfeitures		37,138			37			—			—			—			—			—			—			37			—			37			—		—
Distributions ($0.15 per share)		—			—			—			—			—			(14,443,279	)		—			—			(14,443,279	)		—			(14,443,279	)		—		—
Distributions to noncontrolling     interests in our Operating     Partnership		—			—			—			—			—			—			—			—			—			(2,129,796	)		(2,129,796	)		—		—
Distributions to other     noncontrolling interests		—			—			—			—			—			—			—			—			—			(118,950	)		(118,950	)		—		—
Issuance of shares for    distribution reinvestment plan		335,163			335			38,578			39			5,694,053			—			—			—			5,694,427			—			5,694,427
Equity based compensation     expense		—			—			—			—			158,989			—			—			—			158,989			975,419			1,134,408			—		—
Net income attributable to      SmartStop Self Storage      REIT, Inc. common      stockholders		—			—			—			—			—			—			(4,647,922	)		—			(4,647,922	)		—			(4,647,922	)		—		—
Net income attributable to the       noncontrolling interests in our       Operating Partnership		—			—			—			—			—			—			—			—			—			(208,869	)		(208,869	)		—		—
Net income attributable to other       noncontrolling interests		—			—			—			—			—			—			—			—			—			109,354			109,354			—		—
Foreign currency translation     adjustment		—			—			—			—			—			—			—			(1,162,413	)		(1,162,413	)		(157,563	)		(1,319,976	)		—		—
Foreign currency hedge      contract gain		—			—			—			—			—			—			—			1,194,061			1,194,061			161,853			1,355,914			—		—
Interest rate hedge      contract loss		—			—			—			—			—			—			—			(446,191	)		(446,191	)		(60,481	)		(506,672	)		—		—
Balance as of March 31, 2024		88,869,543		$	88,870			8,127,815		$	8,128		$	894,796,414		$	(338,633,835	)	$	(171,918,215	)	$	432,640		$	384,774,002		$	90,094,115		$	474,868,117		$	196,356,107	$	68,311,548

See notes to consolidated financial statements.

10

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended March 31,
	2024			2023
Cash flows from operating activities:
Net income (loss)	$	(1,639,513	)	$	2,032,600
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,657,463			15,191,976
Change in deferred tax assets and liabilities		217,882			120,287
Accretion of fair market value adjustment of secured debt		3,230			3,230
Amortization of debt issuance costs		801,883			710,351
Loss on extinguishment of debt		471,166			—
Equity based compensation expense		1,134,408			1,106,163
Non-cash adjustment from equity method investments in JV Properties		329,092			405,111
Non-cash adjustment from equity method investments in Managed REITs		451,562			423,237
Accretion of financing fee revenues		(33,672	)		(63,177	)
Unrealized foreign currency and derivative (gains) losses		272,434			406,298
Sponsor funding reduction		180,846			—
Increase (decrease) in cash from changes in assets and liabilities:
Other assets, net		646,635			645,445
Accounts payable and accrued liabilities		2,813,406			(2,471,540	)
Managed REITs receivables		(4,895,767	)		(2,628,287	)
Due to affiliates		—			12,250
Net cash provided by operating activities		14,411,055			15,893,944
Cash flows from investing activities:
Additions to real estate		(1,313,559	)		(4,256,788	)
Deposits on acquisition of real estate		(636,964	)		(939,994	)
Capital distributions from Managed REITs		153,239			—
Investments in unconsolidated JV Properties		(1,413,317	)		(3,162,306	)
SST VI Mezzanine Loan funding		—			(15,000,000	)
SST VI Preferred equity investment		—			(15,000,000	)
SSGT III Mezzanine Loan repayment		3,000,000			17,500,000
Purchase of SST VI Subordinated Class C Units		(359,927	)		—
Purchase of other assets		(38,887	)		—
Net cash used in investing activities		(609,415	)		(20,859,088	)
Cash flows from financing activities:
Gross proceeds from issuance of non-revolver debt		55,590,000			—
Repayment of non-revolver debt		—			(12,016,875	)
Scheduled principal payments on non-revolver debt		(681,291	)		(670,707	)
Proceeds from issuance of revolver debt		576,000,000			60,000,000
Repayment of revolver debt		(623,807,538	)		(35,000,000	)
Debt issuance costs		(9,046,339	)		—
Redemption of common stock		(4,165,441	)		—
Restricted stock withholding for payroll taxes		(218,770	)		(211,972	)
Distributions paid to preferred stockholders		(3,150,685	)		(3,150,685	)
Distributions paid to common stockholders		(8,806,512	)		(14,684,560	)
Distributions paid to noncontrolling interests in our OP		(2,304,031	)		(1,876,163	)
Distributions paid to other noncontrolling interests		(118,950	)		(129,486	)
Net cash provided by (used in) financing activities		(20,709,557	)		(7,740,448	)
Impact of foreign exchange rate changes on cash and restricted cash		(447,827	)		54,682
Change in cash, cash equivalents, and restricted cash		(7,355,744	)		(12,650,910	)
Cash, cash equivalents, and restricted cash beginning of year		53,427,176			46,038,391
Cash, cash equivalents, and restricted cash end of year	$	46,071,432		$	33,387,481
Supplemental disclosures and non-cash transactions:
Cash paid for interest, net of capitalized interest	$	13,512,246		$	11,384,685
Cash paid for income taxes	$	—		$	—
Supplemental disclosure of noncash activities:
Redemption of common stock included in accounts payable    and accrued liabilities	$	8,439,386		$	4,715,055
Distributions payable	$	8,881,526		$	8,984,429
Real estate and construction in process included in accounts payable    and accrued liabilities	$	1,960,806		$	202,020
Issuance of shares pursuant to distribution reinvestment plan	$	5,694,427		$	—
Retirement of assets due to casualty loss	$	730,863		$	—
Earnest deposits on acquisitions assigned to the Managed REITs,    amounts reclassified to Managed REITs receivables	$	—		$	1,082,916

See notes to consolidated financial statements.

11

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Note 1. Organization

SmartStop Self Storage REIT, Inc., a Maryland corporation (the “Company”), is a self-managed and fully-integrated self storage real estate investment trust (“REIT”), formed on January 8, 2013 under the Maryland General Corporation Law. Our year end is December 31. As used in this report, “we,” “us,” “our,” and “Company” refer to SmartStop Self Storage REIT, Inc. and each of our subsidiaries.

We acquire and own self storage facilities; we also operate self storage facilities owned by us as well as those owned by the entities sponsored by us. As of March 31, 2024, we wholly-owned 154 self storage facilities located in 19 states (Alabama, Arizona, California, Colorado, Florida, Illinois, Indiana, Maryland, Massachusetts, Michigan, New Jersey, Nevada, North Carolina, Ohio, South Carolina, Texas, Virginia, Washington, and Wisconsin) and Canada.

As discussed herein, we, through our subsidiaries, currently serve as the sponsor of Strategic Storage Trust VI, Inc., a publicly-registered non-traded REIT (“SST VI”), and Strategic Storage Growth Trust III, Inc., a private REIT (“SSGT III” and together with SST VI , the “Managed REITs”). We also served as the sponsor of Strategic Storage Trust IV, Inc., a public non-traded REIT (“SST IV”), through March 17, 2021, and Strategic Storage Growth Trust II, Inc., a private REIT (“SSGT II”), through June 1, 2022, the dates on which we closed on the mergers of SST IV (the “SST IV Merger”) and SSGT II (the “SSGT II Merger”), respectively, as defined in Note 3 – Real Estate Facilities. Prior to March 17, 2021 and June 1, 2022, SST IV and SSGT II, respectively, were also included in the “Managed REITs.”

We operate the properties owned by the Managed REITs, which together with one other self storage property we manage, as of March 31, 2024, represented 32 operating properties and approximately 25,400 units and 2.8 million rentable square feet. Through our Managed REIT Platform (as defined below), we originate, structure, and manage additional self storage investment products.

SmartStop OP, L.P. (the “Operating Partnership”) owns, directly or indirectly through one or more subsidiaries, all of the self storage properties that we own. As of March 31, 2024, we owned approximately 88% of the common units of limited partnership interests of our Operating Partnership. The remaining approximately 12% of the common units are owned by current and former employees, members of our executive management team, board members, or indirectly by Strategic Asset Management I, LLC (f/k/a SmartStop Asset Management, LLC), our former sponsor (“SAM”), its affiliates, and affiliates of Select Capital Corporation, the former dealer manager of our offering (the “Former Dealer Manager”). As the sole general partner of our Operating Partnership, we have the exclusive power to manage and conduct the business of our Operating Partnership.

We commenced our initial public offering in January 2014, in which we offered a maximum of $1.0 billion in common shares for sale to the public (the “Primary Offering”) and $95.0 million in common shares for sale pursuant to our distribution reinvestment plan (collectively, the “Offering”). At the termination of our Offering in January 2017, we had sold approximately 48 million Class A Shares and approximately 7 million Class T Shares for approximately $493 million and $73 million respectively.

In November 2016, we filed with the SEC a Registration Statement on Form S-3, which registered up to an additional $100.9 million in shares under our 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, 2024, we had sold approximately 8.5 million Class A Shares and approximately 1.2 million Class T Shares through our DRP Offering.

On January 15, 2024, our board of directors (the “Board”), upon recommendation of our Nominating and Corporate Governance Committee, approved an Estimated Per Share Net Asset Value (“NAV”) of our common stock of $15.25 for our Class A Shares and Class T Shares based on the estimated value of our assets less the estimated value of our liabilities, or net asset value, divided by the number of shares outstanding on a fully diluted basis, calculated as of September 30, 2023.

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.

12

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

The square footage, unit count, and occupancy percentage data and related disclosures included in these notes to the consolidated financial statements are outside the scope of our independent registered accounting firm's review.

Principles of Consolidation

Our financial statements, and the financial statements of our Operating Partnership, including its wholly-owned subsidiaries, are consolidated in the accompanying consolidated financial statements. The portion of these entities not wholly-owned by us is presented as noncontrolling interests. All intercompany accounts and transactions have been eliminated in consolidation.

Consolidation Considerations

Current accounting guidance provides a framework for identifying a variable interest entity (“VIE”) and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of a 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.

Our Operating Partnership is deemed to be a VIE and is consolidated by us as we are currently the primary beneficiary. Our sole significant asset is our investment in our Operating Partnership; as a result, substantially all of our assets and liabilities represent those assets and liabilities of our Operating Partnership and its wholly-owned subsidiaries.

On March 1, 2022, Pacific Oak Holding Group, LLC, the parent company of Pacific Oak Capital Markets, LLC, the dealer manager for the public offering of SST VI, became a 10% non-voting member of Strategic Storage Advisor VI, LLC, our advisor to SST VI (the “SST VI Advisor”). We continue to be the primary beneficiary of SST VI Advisor, and their operations therefore continue to be consolidated by us.

As of March 31, 2024 and December 31, 2023, we were not a party to any other material contracts or interests that would be deemed variable interests in VIEs other than our joint ventures with SmartCentres and our equity investments in the Managed REIT's, which are all accounted for under the equity method of accounting (see Note 4 – Investments in Unconsolidated Real Estate Ventures and Note 10 – Related Party Transactions for additional information), and our joint venture programs through which we offer our tenant insurance, tenant protection plans or similar programs (the “Tenant Protection Programs”) with SST VI, SSGT III, and SSGT II (through June 1, 2022) which are consolidated.

Equity Investments

Under the equity method, our investments are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions and impairments, as applicable. Equity in earnings will generally be recognized based on our ownership interest in the earnings of each of the unconsolidated investments and recorded within our consolidated statements of operations.

Investments in and Advances to Managed REITs

As of March 31, 2024 and December 31, 2023, we owned equity and debt investments in the Managed REITs; such amounts are included in Investments in and advances to Managed REITs within our consolidated balance sheets. We account for the equity investments using the equity method of accounting as we have the ability to exercise significant influence, but not control, over the Managed REITs’ operating and financial policies through our advisory and property management agreements with the respective Managed REITs. The equity method of accounting requires the investment to be initially

13

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

recorded at cost and subsequently adjusted for our share of equity in the respective Managed REIT’s earnings and reduced by distributions.

We record the interest on our debt investments on the accrual basis and such income is included in Other, net, within Other income (expense) of our consolidated statements of operations. While we do make loans periodically, we do not consider that to be part of our ordinary operating activity, and therefore do not report income from loans as operating income.

See Note 10 – Related Party Transactions for additional information.

Noncontrolling Interests in Consolidated Entities

We account for the noncontrolling interests in our Operating Partnership and the noncontrolling interests in SST VI Advisor and our Tenant Protection Programs joint ventures with SST VI, SSGT III, and SSGT II (prior to the SSGT II Merger on June 1, 2022) in accordance with the related accounting guidance.

Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partners, our Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company and the limited partner interests are reflected as noncontrolling interests in the accompanying consolidated balance sheets. We also consolidate our interests in the SSGT III and SST VI Tenant Protection Programs and present the minority interests as noncontrolling interests in the accompanying consolidated balance sheets. The noncontrolling interests shall be attributed their share of income and losses, even if that attribution results in a deficit noncontrolling interests balance.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP 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 will adjust such estimates when facts and circumstances dictate. Actual results could materially differ from those estimates. The most significant estimates made include that of real estate acquisition valuation and the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at relative fair value, the evaluation of potential impairment of indefinite and long-lived assets and goodwill, and the estimated useful lives of real estate assets and intangibles.

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 and cash equivalents in financial institutions in excess of insured limits. In an effort to mitigate this risk, we only invest 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 and Treatment of Acquisition Costs

We account for asset acquisitions in accordance with GAAP which requires that we allocate the purchase price of a property to the tangible and intangible assets acquired and the liabilities assumed based on their relative fair values as of the date of acquisition. This guidance requires us to make significant estimates and assumptions, including fair value estimates, which requires the use of significant unobservable inputs as of the acquisition date. We engage third-party valuation specialists to assist in the determination of significant estimates and market-based assumptions used in the valuation models.

The value of the tangible assets, consisting of land and buildings, is determined as if vacant. 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. We also consider whether in-place, market leases represent an intangible asset. There were no acquisitions during the three months ended March 31, 2024 and 2023, as such no intangible assets to recognize the value of in-place leases were recorded. We do

14

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

not expect, nor to date have we recorded, intangible assets for the value of customer relationships because we expect we will not have concentrations of significant customers and the average customer turnover will be fairly frequent.

Allocation of purchase price to 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.

Acquisitions that do not meet the definition of a business, as defined under current GAAP, are accounted for as asset acquisitions. During the three months ended March 31, 2024 and 2023, there were no property acquisitions. To date, our acquisitions have generally not met the definition of a business because substantially all of the fair value was concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related intangible assets) and because the acquisitions did not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. As a result, once an acquisition is deemed probable, acquisition related transaction costs are capitalized rather than expensed.

During the three months ended March 31, 2024 and 2023, we expensed approximately $71,000 and $31,000, respectively, of acquisition-related transaction costs that did not meet our capitalization policy during the respective periods.

Evaluation of Possible Impairment of Real Property Assets

Management monitors events and changes in circumstances that could indicate that the carrying amounts of our real property assets 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 real property 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 real property assets to the fair value and recognize an impairment loss. For the three months ended March 31, 2024 and 2023, no real property asset impairment losses were recognized.

Goodwill Valuation

We initially recorded goodwill as a result of the Self Administration Transaction (as defined in Note 10 – Related Party Transactions), which occurred in 2019. Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible assets and other intangible assets acquired. Goodwill is allocated to various reporting units, as applicable, and is not amortized. We perform an annual qualitative impairment assessment as of December 31 for goodwill; between annual tests we evaluate the recoverability of goodwill whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be fully recoverable. If circumstances indicate the carrying amount may not be fully recoverable, we perform a quantitative analysis to compare the fair value of each reporting unit to its respective carrying amount. If the carrying amount of goodwill exceeds its fair value, an impairment charge will be recognized.

See Note 10 – Related Party Transactions for additional information.

Trademarks

In connection with the Self Administration Transaction, we recorded the fair value associated with the two primary trademarks acquired therein.

Trademarks are based on the value of our brands. Trademarks are valued using the relief from royalty method, which presumes that without ownership of such trademarks, we would have to make a stream of payments to a brand or franchise owner in return for the right to use their name. By virtue of this asset, we avoid any such payments and record the related intangible fair value of our ownership of the brand name.

As of March 31, 2024 and December 31, 2023, $15.7 million was recorded related to the SmartStop® Self Storage trademark, which is an indefinite lived trademark. As of March 31, 2024 and December 31, 2023, approximately $35,000 and $71,000, respectively, was recorded to the “Strategic Storage®” trademark, which is a definite lived trademark. The total estimated future amortization expense of the “Strategic Storage®” trademark asset for the year ending December 31, 2024, and thereafter is approximately $35,000 and none, respectively.

15

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

We qualitatively evaluate whether any triggering events or changes in circumstances have occurred in addition to our annual impairment test that would indicate an impairment condition may exist. If any change in circumstance or triggering event occurs, and results in a significant impact to our revenue and profitability projections, or any significant assumption in our valuation methods is adversely impacted, the impact could result in a material impairment charge in the future.

Revenue Recognition

Self Storage Operations

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.

In accordance with ASC 842, we review the collectability of lease payments on an ongoing basis. We consider collectability indicators when analyzing accounts receivable and historical bad debt levels, including current economic trends, all of which assist in evaluating the probability of outstanding and future rental income collections.

Additionally, we earn ancillary revenue by selling tenant insurance or tenant protection plans to customers at our properties through our Tenant Protection Programs, and to a lesser extent, through the sale of various moving and packing supplies such as locks and boxes. We recognize such revenue in the Ancillary operating revenue line within our consolidated statements of operations as the services are performed and as the goods are delivered.

Managed REIT Platform

We earn property management and asset management revenue, pursuant to the respective property management and advisory agreement contracts, in connection with providing services to the Managed REITs. We have determined under ASC 606 – Revenue from Contracts with Customers (“ASC 606”), that the performance obligation for the property management services and asset management services are satisfied as the services are rendered. While we are compensated for our services on a monthly basis, these services represent a series of distinct daily services in accordance with ASC 606. Such revenue is recorded in the Managed REIT Platform revenue line within our consolidated statements of operations.

The Managed REITs’ advisory agreements also provide for reimbursement to us of our direct and indirect costs of providing administrative and management services to the Managed REITs. These reimbursements include costs incurred in relation to organization and offering services provided to the Managed REITs and the reimbursement of salaries, bonuses, and other expenses related to benefits paid to our employees while performing services for the Managed REITs. The Managed REITs’ property management agreements also provide reimbursement to us for the property manager’s costs of managing the properties. Reimbursable costs include wages and salaries and other expenses that arise in operating, managing and maintaining the Managed REITs’ properties.

Under ASC 606, direct reimbursement of such costs does not represent a separate performance obligation from our obligation to perform property management and asset management services. The reimbursement income is considered variable consideration, and is recognized as the costs are incurred, subject to limitations on the Managed REIT Platform’s ability to incur offering costs or limitations imposed by the advisory agreements. We have elected to separately record such revenue in the Reimbursable costs from Managed REITs line within our consolidated statements of operations.

Additionally, we earn revenue in connection with our Tenant Protection Programs joint ventures with our Managed REITs. We also earn development and construction management revenue from services we provide in connection with the project design, coordination and oversite of development and certain capital improvement projects undertaken by the Managed REITs. We recognize such revenue in the Managed REIT Platform revenue line within our consolidated statements of operations as the services are performed or delivered. See Note 10 – Related Party Transactions, for additional information regarding revenue generated from our Managed REIT Platform.

Sponsor Funding Agreement

On November 1, 2023, SmartStop REIT Advisors, LLC, a subsidiary of SmartStop OP entered into a sponsor funding agreement with SST VI and Strategic Storage Trust VI, O.P. ("SST VI OP"), (the “Sponsor Funding Agreement”), in

16

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

connection with certain changes to the public offering of SST VI (see Note 10 – Related Party Transactions for additional information).

Pursuant to the Sponsor Funding Agreement, SmartStop, through a wholly-owned subsidiary, is required to fund the payment of the front-end sales load for the sale of SST VI’s class Y and class Z shares sold in its offering. In exchange, SmartStop receives a number of series C convertible units (“Series C Units”) in SST VI OP calculated as the dollar amount of such funding divided by the then-current offering price for such class Y and Z shares. The Series C Units convert into class A units of SST VI OP if the estimated net asset value of SST VI, as declared by SST VI, exceeds $10.00 per share. Such conversion is limited such that the dilution caused by the conversion may not reduce the diluted estimated net asset value below $10.00 per share.

In accordance with ASC 606, the amount by which our funding exceeds the fair value of the Series C Units received is accounted for as a payment to a customer and is therefore recorded as a reduction to the transaction price for the services we provide to such customer. Each payment is initially included in the Other assets line-item in our consolidated balance sheet and subsequently recorded as a reduction of Managed REIT Platform revenues ratably over the remaining estimated life of our management contracts with SST VI. Below is a summary of the portion of sponsorship funding payments which exceeds the fair value of the Series C Units received, and is recorded pursuant to ASC 606 as described above:

Balance as of December 31, 2022	$	—
Amounts incurred		3,526,927
Recorded sponsor funding reduction		(33,643	)
Balance as of December 31, 2023	$	3,493,284
Amounts incurred	$	361,207
Recorded sponsor funding reduction		(180,846	)
Balance as of March 31, 2024	$	3,673,645

Allowance for Doubtful Accounts

Tenant accounts receivable is reported net of an allowance for doubtful accounts. Management records this general allowance estimate based upon a review of the current status of accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future. As of March 31, 2024 and December 31, 2023, approximately $0.9 million and $0.9 million, respectively, were recorded to allowance for doubtful accounts and are included within other assets in the accompanying consolidated balance sheets.

Advertising Costs

Advertising costs are expensed in the period in which the cost is incurred and are included in property operating expenses and general and administrative lines within our consolidated statements of operations, depending on the nature of the expense. The Company incurred advertising costs of approximately $1.3 million and $1.2 million for the three months ended March 31, 2024 and 2023, respectively, within property operating expenses, and approximately $0.5 million and $0.5 million for the three months ended March 31, 2024 and 2023, respectively, within general and administrative.

Real Estate Facilities

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.

17

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

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	30-40 years
Site Improvements	7-10 years

Depreciation of Personal Property Assets

Personal property assets consist primarily of furniture, fixtures and equipment and 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 lease intangibles, which amortize on a straight-line basis over the estimated future benefit period. Additionally, we have other contract related intangible assets. As of March 31, 2024, the gross amount of the intangible assets was approximately $80.5 million, and accumulated amortization was approximately $79.4 million. As of December 31, 2023, the gross amount of the intangible assets was approximately $80.7 million, and accumulated amortization was approximately $79.5 million. See Note 10 – Related Party Transactions for additional information.

The total estimated future amortization expense related to intangible assets for the years ending December 31, 2024, 2025, 2026, 2027, 2028, and thereafter is approximately $0.1 million, $0.1 million, $0.1 million, $0.1 million, $0.1 million, and $0.6 million thereafter, respectively. The weighted-average amortization period on our remaining intangible assets with a net book value of approximately $1.1 million was approximately 6.0 years as of March 31, 2024.

We evaluate whether any triggering events or changes in circumstances have occurred subsequent to our annual impairment test that would indicate an impairment condition may exist. If any change in circumstance or triggering event occurs, and results in a significant impact to our revenue and profitability projections, or any significant assumption in our valuations methods is adversely impacted, the impact could result in an impairment charge in the future.

Debt Issuance Costs

The net carrying value of costs incurred in connection with obtaining non revolving debt are presented on the balance sheet as a deduction from debt; amounts incurred related to obtaining revolving debt are included in the debt issuance costs line on our consolidated balance sheet (see Note 5 - Debt). Debt issuance costs are amortized using the effective interest method.

As of March 31, 2024 the gross amount of debt issuance costs related to our revolving credit facility totaled approximately $9.1 million and accumulated amortization of debt issuance costs related to our revolving credit facility totaled approximately $0.3 million. As of December 31, 2023, the gross amount of debt issuance costs related to our revolving credit facility totaled approximately $4.5 million, and accumulated amortization of debt issuance costs related to our revolving credit facility totaled approximately $4.1 million.

As of March 31, 2024, the gross amount allocated to debt issuance costs related to non-revolving debt totaled approximately $5.7 million and accumulated amortization of debt issuance costs related to non-revolving debt totaled approximately $2.1 million. As of December 31, 2023, the gross amount allocated to debt issuance costs related to non-revolving debt totaled approximately $7.7 million and accumulated amortization of debt issuance costs related to non-revolving debt totaled approximately $3.4 million.

18

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Foreign Currency Translation

For non-U.S. functional currency operations, assets and liabilities are translated to U.S. dollars at current exchange rates, as of the reporting date. Revenues and expenses are translated at the average rates for the period. All adjustments related to amounts classified as long term net investments are recorded in accumulated 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. Changes in investments not classified as long term are recorded in other income (expense) and represented a loss of approximately $1.4 million and a gain of approximately $35,000 for the three months ended March 31, 2024 and 2023, respectively.

Redeemable Common Stock

We adopted a share redemption program (“SRP”) that enables stockholders to sell their shares to us in limited circumstances.

We have evaluated the terms of our SRP, and we classify amounts that are redeemable under the SRP as redeemable common stock in the accompanying consolidated balance sheets. The maximum amount of redeemable shares under our SRP is limited to the net proceeds from the distribution reinvestment plan. However, accounting guidance states that determinable amounts that can become redeemable should be presented as redeemable when such amount is known. Therefore, the net proceeds from the distribution reinvestment plan are considered to be temporary equity and are presented as redeemable common stock in the accompanying consolidated balance sheets.

In addition, current accounting guidance requires, among other things, that financial instruments that represent a mandatory obligation of us to repurchase shares be classified as liabilities and reported at settlement value. When we determine we have a mandatory obligation to repurchase shares under the SRP, we reclassify such obligations from temporary equity to a liability based upon their respective settlement values.

See Note 12 – Commitments and Contingencies for additional information on our SRP.

Accounting for Equity Awards

We issue equity based awards in two forms: (1) restricted stock awards consisting of shares of our common stock and (2) long-term incentive plan units of our Operating Partnership (“LTIP Units”), both of which may be issued subject to either time based vesting criteria or performance based vesting criteria restrictions. For time based awards granted which contain a graded vesting schedule, compensation cost is recognized as an expense on a straight-line basis over the requisite service period as if the award was, in substance, a single award. For performance based awards, compensation cost is recognized over the requisite service period if and when we determine the performance condition is probable of being achieved. We record the cost of such equity based awards based on the grant date fair value, and have elected to record forfeitures as they occur.

Employee Benefit Plan

The Company maintains its own retirement savings plan under Section 401(k) of the Internal Revenue Code under which eligible employees can contribute up to 100% of their annual salary, subject to a statutory prescribed annual limit. For the three months ended March 31, 2024 and 2023, the Company made matching contributions to such plan of approximately $0.2 million and $0.2 million, respectively, based on a company match of 100% on the first 4% of an employee’s compensation.

Fair Value Measurements

Under GAAP, we are required to measure certain financial instruments at fair value on a recurring basis. In addition, we are required to measure other financial instruments and balances at fair value on a non-recurring basis. 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

19

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

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 will 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 will be 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 will present will be 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 liabilities assumed related to our acquisitions along with the assets and liabilities described in Note 3 – Real Estate Facilities. The fair values of these assets and liabilities 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) market approach, which considers comparable sales activity. Additionally, certain such assets and liabilities are required to be fair valued periodically or valued pursuant to ongoing fair value requirements and impairment analyses and have been valued subsequently utilizing the same techniques noted above. 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 and liabilities as of the acquisition dates were derived using Level 3 inputs.

The Series C Units (categorized within Level 3 of the fair value hierarchy) acquired in connection with the Sponsor Funding Agreement are measured at fair value at the time of acquisition, and are recorded using the equity method of accounting as described in Note 10 – Related Party Transactions. The fair value of these units were determined using a valuation model which considered the following key assumptions: the projected distribution rate of SST VI, implied share price volatility, risk free interest rate, current estimated net asset value, and the estimated effective life of the Series C Units.

20

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

The carrying amounts of cash and cash equivalents, restricted cash, other assets, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates approximate fair value (categorized within Level 1 of the fair value hierarchy).

The table below summarizes the carrying amounts and fair values of financial instruments that are not carried at fair value as of March 31, 2024 and December 31, 2023. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of our fixed and variable rate debt was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities (categorized within Level 2 of the fair value hierarchy). The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. As of March 31, 2024 and December 31, 2023, we believe the fair value of our variable rate debt was reasonably estimated at their notional amounts as there have been minimal changes to the fixed spread portion of interest rates for similar loans observed in the market, and as the variable portion of our interest rates fluctuate with the associated market indices.

	March 31, 2024				December 31, 2023
	Fair Value		Carrying Value		Fair Value		Carrying Value
Fixed Rate Secured Debt	$	493,300,000	$	520,580,451	$	505,700,000	$	523,018,512

During the three months ended March 31, 2024 and 2023, we held interest rate cash flow hedges and foreign currency net investment hedges to hedge our interest rate and foreign currency exposure (See Notes 5 – Debt and 7 – Derivative Instruments). The fair value analyses of these instruments reflect the contractual terms of the derivatives, including the period to maturity, and used observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities, as applicable. The fair value of interest rate swap and cap agreements are determined using widely accepted valuation techniques, including discounted cash flow analyses on the expected cash flows of the instruments. Our fair values of our net investment hedges are based primarily on the change in the spot rate at the end of the period as compared with the strike price at inception.

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 derivative contracts for the effect of non-performance risk, we consider the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we had determined that the majority of the inputs used to value our derivatives were within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilized Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparties. However, through March 31, 2024, we had assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of our derivatives. As a result, we determined that our derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy.

The table below presents the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Fair Value Measurements at March 31, 2024 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Other assets - interest rate derivatives	$	—	$	2,592,468	$	—
Other assets - foreign currency hedges	$	—	$	2,247,494	$	—
Accounts payable and accrued    liabilities - interest rate derivatives	$	—	$	101,787	$	—

21

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

	Fair Value Measurements at December 31, 2023 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Other assets - interest rate derivatives	$	—	$	3,485,281	$	—
Accounts payable and accrued    liabilities - foreign currency hedges	$	—	$	985,412	$	—

Derivative Instruments and Hedging Activities

We record all derivatives on our balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. We may enter into derivative contracts that are intended to economically hedge certain of our risks, even though hedge accounting does not apply or we elect not to apply hedge accounting.

For derivatives designated as net investment hedges, the effective portion of changes in the fair value of the derivatives are reported in accumulated other comprehensive income (loss). The ineffective portion of the change in fair value of the derivatives is recognized in Other, net, within our consolidated statements of operations. Amounts are reclassified out of other comprehensive (loss) income (“OCI”) into earnings (loss) when the hedged net investment is either sold or substantially liquidated.

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, 2014. To qualify as a REIT, we must continue to meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the REIT’s taxable income to stockholders (which is computed without regard to the dividends paid deduction or net capital gains and which does not equal net income as calculated in accordance with GAAP).

For income tax purposes, distributions to common stockholders are characterized as ordinary dividends, capital gain dividends, or as nontaxable distributions. To the extent that we make a distribution in excess of our current or accumulated earnings and profits, the distribution will be a non-taxable return of capital, reducing the tax basis in each U.S. stockholder’s shares, and the amount of each distribution in excess of a U.S. stockholder’s tax basis in its shares will be taxable as gain realized from the sale of its shares.

As a REIT, we generally will not be subject to U.S. 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 U.S. federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for U.S. 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 are 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 U.S. federal income tax purposes.

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

We filed an election to treat our primary taxable REIT subsidiary (“TRS”) as a taxable REIT subsidiary effective January 1, 2014. In general, our TRS performs additional services for our customers and provides the advisory and property management services to the Managed REITs and otherwise generally engages in non-real estate related business. The TRS is subject to corporate federal and state income tax.

We account for deferred income taxes using the asset and liability method and recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our financial statements or tax returns. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of

22

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes a change in our judgment about expected future tax consequences of events, is included in the tax provision when such changes occur. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes a change in our judgment about the realizability of the related deferred tax asset, is included in the tax provision when such changes occur.

Uncertain tax positions may arise where tax laws may allow for alternative interpretations or where the timing of recognition of income is subject to judgment. Under ASC Topic 740, tax positions are evaluated for recognition using a more–likely–than–not threshold, and those tax positions requiring recognition are measured at the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of March 31, 2024 and December 31, 2023, the Company had no uncertain tax positions. Income taxes payable are classified within accounts payable and accrued liabilities in the consolidated balance sheets. The tax years 2019-2022 remain open to examination by the major taxing jurisdictions to which we are subject.
 

Concentration

No single self storage customer represents a significant concentration of our revenues. For the month of March 2024, approximately 23%, 20%, and 10% of our rental income was concentrated in Florida, California, and the Greater Toronto Area of Canada, respectively. Our properties within the aforementioned geographic areas are dispersed therein, operating in multiple different regions and sub-markets.

Segment Reporting

Our business is composed of two reportable segments: (i) self storage operations and (ii) the Managed REIT Platform business. Please see Note 9 – Segment Disclosures for additional detail.

Convertible Preferred Stock

We classify our Series A Convertible Preferred Stock (as defined in Note 6 – Preferred Equity) on our consolidated balance sheets using the guidance in ASC 480-10-S99. Our Series A Convertible Preferred Stock can be redeemed by us on or after the fifth anniversary of its issuance (October 29, 2024), or if certain events occur, such as the listing of our common stock on a national securities exchange, a change in control, or if a redemption would be required to maintain our REIT status. Additionally, if we do not maintain our REIT status the holder can require redemption. As the shares are contingently redeemable, and under certain circumstances not solely within our control, we have classified our Series A Convertible Preferred Stock as temporary equity.

We have analyzed whether the conversion features in our Series A Convertible Preferred Stock should be bifurcated under the guidance in ASC 815‑10 and have determined that bifurcation is not necessary.

Per Share Data

Basic earnings per share attributable to our common stockholders for all periods presented are computed by dividing net income (loss) attributable to our common stockholders by the weighted average number of common shares outstanding during the period, excluding unvested restricted stock.

Diluted earnings per share is computed by including the dilutive effect of the conversion of all potential common stock equivalents (which includes unvested restricted stock, Series A Convertible Preferred Stock, Class A and Class A-1 OP Units, and unvested LTIP Units) and accordingly, as applicable, adjusting net income to add back any changes in earnings that reduce earnings per common share in the period associated with the potential common stock equivalents.

23

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

The computation of earnings per common share is as follows for the periods presented:

	For the Three Months Ended  March 31,
	2024			2023
Net income (loss)	$	(1,639,513	)	$	2,032,600
Net (income) loss attributable to    noncontrolling interests		99,515			(340,365	)
Net income (loss) attributable to    SmartStop Self Storage REIT, Inc.		(1,539,998	)		1,692,235
Less: Distributions to preferred       stockholders		(3,107,924	)		(3,082,192	)
Less: Distributions to participating       securities		(114,364	)		(92,343	)
Net loss attributable to    common stockholders - basic:		(4,762,286	)		(1,482,300	)
Net loss attributable to    common stockholders - diluted:	$	(4,762,286	)	$	(1,482,300	)
Weighted average common shares        outstanding:
Average number of common shares           outstanding- basic		96,831,903			96,820,723
Average number of common shares           outstanding - diluted		96,831,903			96,820,723
Earnings per common share:
Basic	$	(0.05	)	$	(0.02	)
Diluted	$	(0.05	)	$	(0.02	)

The following table presents the weighted average Series A Convertible Preferred Stock, Class A and Class A-1 OP Units, unvested LTIP Units, and unvested restricted stock awards, that were excluded from the computation of diluted earnings per share above as their effect would have been antidilutive for the respective periods, and was calculated using the two-class, treasury stock or if-converted method, as applicable:

	For the Three Months Ended March 31,
	2024		2023
	Equivalent Shares (if converted)		Equivalent Shares (if converted)
Series A Convertible Preferred Stock		18,761,726		18,761,726
Class A and Class A-1 OP Units		13,127,843		12,773,507
Unvested LTIP Units		324,590		333,106
Unvested restricted stock awards		13,358		81,554
		32,227,517		31,949,893

Recently Issued Accounting Guidance

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280).” The guidance in ASU 2023-07 was issued to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant

24

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

segment expenses. The amendment becomes effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact upon adoption of the new standard on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740).” The guidance in ASU 2023-09 was issued to provide investors with information to better assess how an entity’s operations and related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendment becomes effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact upon adoption of the new standard on its consolidated financial statements and related disclosures.

Note 3. Real Estate

The following summarizes the activity in real estate during the three months ended March 31, 2024:

Real estate
Balance at December 31, 2023	$	1,924,746,372
Impact of foreign exchange rate    changes and other		(5,001,767	)
Improvements and additions		912,682
Balance at March 31, 2024	$	1,920,657,287
Accumulated depreciation
Balance at December 31, 2023	$	(255,844,284	)
Depreciation expense		(13,309,061	)
Impact of foreign exchange rate    changes and other		695,127
Balance at March 31, 2024	$	(268,458,218	)

SSGT II Merger

On June 1, 2022, we closed on our merger with SSGT II (the “SSGT II Merger”). On such date, (the “SSGT II Merger Date”), we acquired all of the real estate owned by SSGT II, consisting primarily of (i) 10 wholly-owned self storage facilities, and (ii) SSGT II’s 50% equity interest in three unconsolidated real estate ventures located in the Greater Toronto Area of Ontario, Canada. We issued approximately 11.5 million Class A Shares to the former SSGT II stockholders in connection with the SSGT II Merger.

SST IV Merger

On March 17, 2021, we closed on our merger with SST IV (the “SST IV Merger”). On such date, (the “SST IV Merger Date”), we acquired all of the real estate owned by SST IV, consisting primarily of (i) 24 self storage facilities, and (ii) SST IV’s 50% equity interest in six unconsolidated real estate ventures located in the Greater Toronto Area of Ontario, Canada. As a result of the SST IV Merger, we issued approximately 23.1 million Class A Shares to the former SST IV stockholders.

Self Storage Facility Acquisitions

There were no self storage facility acquisitions during the three months ended March 31, 2024.

25

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Potential Acquisitions

As of May 13, 2024, we, through our wholly-owned subsidiaries were party to two purchase and sale agreements with unaffiliated third parties for the acquisition of self storage facilities located in the U.S. and Canada. The total purchase price for these properties is approximately $23.8 million, plus closing costs. There can be no assurance that we will complete these acquisitions. If we fail to acquire these properties, in addition to the incurred acquisition costs, we may also forfeit earnest money of approximately $0.2 million as a result.

We may assign some or all of the above purchase and sale agreements to one of our Managed REITs.

Note 4. Investments in Unconsolidated Real Estate Ventures

As a result of the SST IV Merger, we acquired six self storage real estate joint ventures located in the Greater Toronto Area of Ontario, Canada, all of which were operating properties as of March 31, 2024. As a result of the SSGT II Merger, we acquired three self storage real estate joint ventures located in the Greater Toronto Area of Ontario, Canada, two of which were operating properties and one of which was under development as of March 31, 2024.

On May 25, 2022, we, as 50% owner and SmartCentres as the other 50% owner of a joint venture subsidiary, purchased a single tenant industrial building located in the city of Burnaby, British Columbia (the “Regent Property”), that we and SmartCentres intend to develop into a self storage facility in the future.

On January 12, 2023, we as 50% owner and SmartCentres as the other 50% owner of a joint venture subsidiary, purchased a parcel of land in Whitby, Ontario, (the “North Whitby Property”), that we and SmartCentres are developing into a self storage facility in the future. Our 50% of the initial investment at closing for the North Whitby Property was approximately $2.7 million CAD (or approximately $2.0 million USD), plus closing costs.

These joint venture agreements are with a subsidiary of SmartCentres, an unaffiliated third party, to acquire, develop, and operate self storage facilities.

We account for these investments using the equity method of accounting and they are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions and increased for contributions. Equity in earnings (loss) will generally be recognized based on our ownership interest in the earnings (loss) of each of the unconsolidated investments, and is recorded in Equity in earnings (losses) from investments in JV Properties in the accompanying consolidated statements of operations. For the three months ended March 31, 2024 and 2023, we recorded net aggregate loss of approximately $0.3 million and $0.4 million respectively, from our equity in earnings related to our unconsolidated real estate ventures in Canada.

The following table summarizes our 50% ownership interests in investments in unconsolidated real estate ventures in Canada (the “JV Properties”):

JV Property	Date Real Estate Venture Became Operational	Carrying Value of Investment as of March 31, 2024		Carrying Value of Investment as of December 31, 2023
Dupont (1)(6)	October 2019	$	3,820,653	$	3,974,813
East York (2)(6)	June 2020		5,562,486		5,662,757
Brampton (2)(6)	November 2020		1,939,756		1,974,811
Vaughan (2)(6)	January 2021		2,231,788		2,297,273
Oshawa (2)(6)	August 2021		1,243,591		1,274,680
Scarborough (2)(5)	November 2021		2,290,734		2,342,720
Aurora (1)(5)	December 2022		2,309,078		2,480,800
Kingspoint (2)(5)	March 2023		3,745,425		3,947,014
Markham (1)(5)	Under Development		2,514,941		2,063,919
Regent (3)	Under Development		2,687,266		2,737,202
Whitby (4)	January 2024		7,809,878		7,075,611
		$	36,155,596	$	35,831,600

(1)These joint venture properties were acquired through the SSGT II Merger, which closed on June 1, 2022.

(2)These joint venture properties were acquired through the SST IV Merger, which closed on March 17, 2021.

26

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

(3)This property is currently leased as a single tenant industrial lease. The joint venture plans to develop this property into a self storage facility in the future.

(4)This property was acquired on January 12, 2023 in connection with a purchase agreement assumed in the SSGT II Merger.

(5)As of March 31, 2024, these properties were encumbered by first mortgages pursuant to the SmartCentres Financings (defined below).

(6)As of March 31, 2024, these properties were encumbered by first mortgages pursuant to the RBC JV Term Loan (defined below).

RBC JV Term Loan

On November 3, 2023, we closed on a $70 million CAD term loan (the “RBC JV Term Loan”) with Royal Bank of Canada (“RBC”) pursuant to which five of our joint venture subsidiaries that each own 50% of a Joint Venture property serve as borrowers (the “RBC Borrowers”). The RBC JV Term Loan is secured by first mortgages on five of the JV Properties which were previously encumbered by the SmartCentres Financings (as defined below). The maturity date of the RBC JV Term Loan is November 2, 2025, which may be requested to be extended by one additional year by the RBC Borrowers, subject to the approval of RBC in its sole and absolute discretion. Interest on the RBC JV Term Loan is a fixed annual rate of 6.21%, and payments are interest only during the term of the loan.

We and SmartCentres each serve as a full recourse guarantor with respect to 50% of the secured obligations under the RBC JV Term Loan. The RBC JV Term Loan contains certain customary representations and warranties, affirmative, negative and financial covenants, and events of default. Pursuant to the terms of the RBC JV Term Loan, a failure by either us or SmartCentres to observe any negative covenant under each of our respective (and separate) credit facilities (“Separate Credit Facilities”) would be an event of default under the RBC JV Term Loan; in addition, certain actions by either us or SmartCentres may trigger an event of default under the RBC JV Term Loan. We and SmartCentres entered into a separate Cross-Indemnity Agreement pursuant to which we and SmartCentres have each agreed to indemnify the other party with respect to any claims arising from a breach or default of the other party pursuant to the RBC JV Term Loan or the Separate Credit Facilities.

The majority of net proceeds from the RBC JV Term Loan were used to fully repay the allocated loan amounts of approximately $68.9 million CAD under the SmartCentres Financings (as defined below) for each of the five JV Properties.

As of March 31, 2024, $70.0 million CAD or approximately $51.7 million in USD, was outstanding on the RBC JV Term Loan.

SmartCentres Financings

In connection with the SST IV Merger, we, through our acquisition of the Oshawa, East York, Brampton, Vaughan, and Scarborough joint venture partnerships, also became party to a master mortgage commitment agreement (the “MMCA I”) with SmartCentres Storage Finance LP (the “SmartCentres Lender”) (the “SmartCentres Loan I”). The SmartCentres Lender is an affiliate of SmartCentres. On August 18, 2021, the Kingspoint Property was added to the MMCA I, increasing the available capacity.

On June 1, 2022, in connection with the SSGT II Merger, we assumed another loan with the SmartCentres Lender. SSGT II had previously entered into a master mortgage commitment agreement on April 30, 2021, which was subsequently modified on October 22, 2021 (the “MMCA II”), with the SmartCentres Lender in the amount of up to approximately $34.3 million CAD (the “SmartCentres Loan II”) (collectively with SmartCentres Loan I, the “SmartCentres Financings”). The borrowers under the SmartCentres Loan II are the joint venture entities in which we (SSGT II prior to June 1, 2022), and SmartCentres each hold a 50% limited partnership interest with respect to the Dupont and Aurora joint venture properties. In connection with the SmartCentres Loan II assumption, we became a recourse guarantor for 50% of the SmartCentres Financings. On September 13, 2022, the Markham Property was added to the MMCA II, increasing the available capacity.

The SmartCentres Loan I and SmartCentres Loan II have an accordion feature such that borrowings pursuant thereto may be increased up to approximately $120 million CAD each, subject to certain conditions set forth in the MMCA I and MMCA II agreements. Additionally, pursuant to the MMCA agreements, the collective borrowings between all SmartCentres

27

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Financings, and loans made by the SmartCentres Lender to our affiliates, are limited to an overall combined capacity of $120 million CAD.

As of March 31, 2024, approximately $60.7 million CAD or approximately $44.8 million in USD, was outstanding on the SmartCentres Financings. As of December 31, 2023, approximately $57.3 million CAD or approximately $43.3 million USD was outstanding on the SmartCentres Financings. The proceeds of the SmartCentres Financings have been and will generally be used to finance the acquisition, development, and construction of the JV Properties.

Interest on the SmartCentres Financings is a variable annual rate equal to the aggregate of: (i) the BA Equivalent Rate, plus: (ii) a margin based on the External Credit Rating, plus (iii) a margin under the Senior Credit Facility, each as defined and described further in the MMCA I and MMCA II. As of March 31, 2024, the total interest rate was approximately 7.7%.

The SmartCentres Financings, as amended, had a maturity date of May 11, 2024. Subsequent to quarter end, the SmartCentres Financings were amended, extending the maturity date to May 11, 2026, among other changes. Monthly interest payments initially increase the outstanding principal balance. Upon a JV Property generating sufficient net cash flow, the SmartCentres Financings provide for the commencement of quarterly payments of interest. The borrowings advanced pursuant to the SmartCentres Financings may be prepaid without penalty, subject to certain conditions set forth in the MMCA I and MMCA II.

The SmartCentres Financings contain customary affirmative and negative covenants, agreements, representations, warranties and borrowing conditions (including a loan to value ratio of no greater than 70% with respect to each JV Property) and events of default, all as set forth in the MMCA I and MMCA II. We serve as a full recourse guarantor with respect to 50% of the SmartCentres Financings. As of March 31, 2024, the joint ventures were in compliance with all such covenants.

28

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Note 5. Debt

Our debt is summarized as follows:

Loan	March 31, 2024			December 31, 2023			Interest Rate			Maturity Date
KeyBank CMBS Loan(1)	$	90,593,188		$	91,041,968			3.89	%	8/1/2026
Ladera Office Loan		3,808,862			3,832,774			4.29	%	11/1/2026
2024 Credit Facility (8)		520,880,891			—			7.09	%	2/22/2027
2027 NBC Loan (6) (7)		55,372,500			—			7.55	%	3/7/2027
KeyBank Florida CMBS Loan(2)		50,542,392			50,750,997			4.65	%	5/1/2027
2028 Canadian Term Loan (6)		81,213,000			82,973,000			6.41	%	12/1/2028
CMBS Loan(3)		104,000,000			104,000,000			5.00	%	2/1/2029
SST IV CMBS Loan (4)		40,500,000			40,500,000			3.56	%	2/1/2030
2032 Private Placement Notes (5)		150,000,000			150,000,000			5.28	%	4/19/2032
Credit Facility Term Loan - USD		—			250,000,000
Credit Facility Revolver - USD		—			318,688,429
Discount on secured debt, net		(76,991	)		(80,227	)
Debt issuance costs, net		(3,633,319	)		(4,305,607	)
Total debt	$	1,093,200,523		$	1,087,401,334

(1)This fixed rate loan encumbers 29 properties (Whittier, La Verne, Santa Ana, Upland, La Habra, Monterey Park, Huntington Beach, Chico, Lancaster I, Riverside, Fairfield, Lompoc, Santa Rosa, Federal Heights, Aurora, Littleton, Bloomingdale, Crestwood, Forestville, Warren I, Sterling Heights, Troy, Warren II, Beverly, Everett, Foley, Tampa, Boynton Beach, and Lancaster II) with monthly interest only payments until September 2021, at which time both interest and principal payments became due monthly. The separate assets of these encumbered properties are not available to pay our other debts.

(2)This fixed rate loan encumbers five properties (Pompano Beach, Lake Worth, Jupiter, Royal Palm Beach, and Delray) with monthly interest only payments until June 2022, at which time both interest and principal payments became due monthly. The separate assets of these encumbered properties are not available to pay our other debts.

(3)This fixed rate, interest only loan encumbers 10 properties (Myrtle Beach I, Myrtle Beach II, Port St. Lucie, Plantation, Sonoma, Las Vegas I, Las Vegas II, Las Vegas III, Ft Pierce, and Nantucket Island). The separate assets of these encumbered properties are not available to pay our other debts.

(4)On March 17, 2021, in connection with the SST IV Merger, we assumed a $40.5 million fixed rate CMBS financing with KeyBank as the initial lender pursuant to a mortgage loan (the “SST IV CMBS Loan”). This fixed rate loan encumbers seven properties owned by us (Jensen Beach, Texas City, Riverside, Las Vegas IV, Puyallup, Las Vegas V, and Plant City). The separate assets of these encumbered properties are not available to pay our other debt. The loan has a maturity date of February 1, 2030. Monthly payments due under the loan agreement (the “SST IV CMBS Loan Agreement”) are interest only, with the full principal amount becoming due and payable on the maturity date.

(5)As of March 31, 2023, a Total Leverage Ratio Event (as defined below) had occurred, and the interest rate on such Note increased to 5.28% prospectively. For additional information regarding this loan, see 2032 Private Placement Notes below.

(6)The amounts shown above are in USD based on the foreign exchange rate in effect as of the date presented.

(7)This loan incurs interest at an all in rate of CORRA (as defined below), plus a CORRA adjustment of approximately 0.30%, plus a spread of 2.20%. The effective interest rate on this loan is 6.42% when factoring the effects of a CORRA Swap which we entered into with the National Bank of Canada for the initial term of the loan. The Dufferin, Oakville II, Burlington II, Iroquois Shore Rd, and Stoney Creek I properties are encumbered by this loan. See Note 7 – Derivative Instruments for additional information.

(8)During the three months ended March 31, 2024, this loan incurred interest at daily simple secured overnight financing rate ("SOFR") plus a spread of 1.65% and a SOFR index adjustment of 0.10% (the "SOFR Index

29

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Adjustment"). As of April 1, 2024, our consolidated leverage ratio was within the second leverage tier, whereby interest began accruing at daily simple SOFR plus a spread of 1.85%, plus the SOFR Index Adjustment.

The weighted average interest rate on our consolidated debt, excluding the impact of our interest rate hedging activities, as of March 31, 2024 was approximately 6.1%. We are subject to certain restrictive covenants, as amended, relating to the outstanding debt, and as of March 31, 2024, we were in compliance with all such covenants.

2024 Credit Facility

On February 22, 2024, we through our Operating Partnership (the “Borrower”), entered into an amended and restated revolving credit facility with KeyBank, National Association, as administrative agent and collateral agent, certain others listed as joint book runners, joint lead arrangers, syndication agents and documentation agents, and certain other lenders party thereto, (the "2024 Credit Facility"). The 2024 Credit Facility replaces the Credit Facility (defined below) the Company entered into on March 17, 2021, and has a maturity date of February 22, 2027.

The aggregate commitment of the 2024 Credit Facility is $650 million. The Borrower has the right to request to increase the commitment amount available under the 2024 Credit Facility by an additional $850 million, for a total potential maximum aggregate amount of $1.5 billion, subject to certain conditions. The 2024 Credit Facility also includes sublimits of (a) up to $25 million for letters of credit and (b) up to $25 million for swingline loans; each of these sublimits are part of, and not in addition to, the amounts available under the 2024 Credit Facility. Borrowings under the 2024 Credit Facility may be in either U.S. dollars or Canadian dollars. Upon the closing of the 2024 Credit Facility, we immediately drew down an aggregate amount of $576 million, which was used primarily to pay off the amounts outstanding under the Credit Facility.

The maturity date of the 2024 Credit Facility is February 22, 2027, subject to a one-year extension option, subject to the payment of an extension fee of 0.20% on the aggregate amount of the then-outstanding revolving commitments for such extension, and it may be prepaid or terminated at any time without penalty; provided, however, that the lenders shall be indemnified for certain breakage costs.

Amounts borrowed under the 2024 Credit Facility bear interest based on the type of borrowing (either Base Rate Loans, Daily Simple SOFR Loans, Term SOFR Loans or CORRA Loans, each as defined in the 2024 Credit Facility). Base Rate Loans bear interest at the lesser of (x) the Base Rate (as defined in the 2024 Credit Facility) plus the applicable rate, or (y) the maximum rate. Daily Simple SOFR Loans bear interest at the lesser of (a) Adjusted Daily Simple SOFR (as defined in the 2024 Credit Facility) plus the applicable rate, or (b) the maximum rate. Term SOFR Loans bear interest at the lesser of (a) Term SOFR (as defined in the 2024 Credit Facility) for the interest period in effect plus the applicable rate, or (b) the maximum rate. CORRA Loans bear interest at the lesser of (a) Adjusted Daily Simple CORRA (as defined in the 2024 Credit Facility) plus the applicable rate, or (b) the maximum rate. The corresponding applicable rate varies between (i) prior to a Security Interest Termination Event (defined below), 165 basis points to 230 basis points for Daily Simple SOFR Loans, Term SOFR Loans and CORRA Loans and between 65 basis points and 130 basis points for Base Rate Loans, in each case of this clause (i), depending on the consolidated leverage ratio of the Company and (ii) following a Security Interest Termination Event, 140 basis points to 225 basis points for Daily Simple SOFR Loans, Term SOFR Loans and CORRA Loans and between 40 basis points and 125 basis points for Base Rate Loans, in each case of this clause (ii), depending on the consolidated capitalization rate leverage ratio of the Company. Initial advances under the 2024 Credit Facility are Daily Simple SOFR Loans that bear interest at 175 basis points over Adjusted Daily Simple SOFR. The 2024 Credit Facility is also subject to an annual unused fee based upon the average amount of the unused portion of the 2024 Credit Facility, which varies from 15 bps to 25 bps, depending on the size of the unused amount, as well as whether a Security Interest Termination Event has occurred.

As of March 31, 2024, borrowings under the 2024 Credit Facility only bore interest based on Daily Simple SOFR. The rate spread above Daily Simple SOFR at which the 2024 Credit Facility incurs interest is subject to increase based on the consolidated leverage ratio. There are five leverage tiers under the 2024 Credit Facility, with the highest tier limited to a maximum leverage of 60% and a maximum spread of 230 basis points on the 2024 Credit Facility. During the three months ended March 31, 2024, this loan incurred interest at daily simple SOFR plus a spread of 1.65% and the SOFR Index Adjustment of 0.10%. As of April 1, 2024, our consolidated leverage ratio was within the second leverage tier, whereby interest began accruing at daily simple SOFR plus a spread of 1.85%, plus the SOFR Index Adjustment.

The 2024 Credit Facility is fully recourse, jointly and severally, to us, the Borrower, and certain of our subsidiaries (the “Subsidiary Guarantors”). In connection with the 2024 Credit Facility, we, the Borrower and the Subsidiary Guarantors executed guarantees in favor of the lenders. It is an event of default under the 2024 Credit Facility if (a) there is a payment

30

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

default by us, the Borrower or any Subsidiary Guarantor under any recourse debt for borrowed money, (b) there is a payment default by us or any of its subsidiaries under any non-recourse debt of at least $75 million or (c) prior to a Security Interest Termination Event, an event of default occurs under the 2032 Private Placement Notes.

The 2024 Credit Facility is initially secured by a pledge of equity interests in the Subsidiary Guarantors. However, upon the achievement of certain security interest termination conditions, the pledges shall be released and the 2024 Credit Facility shall become unsecured (the “Security Interest Termination Event”). The Security Interest Termination Event occurs at the Borrower’s election, once the Borrower satisfies all of the following security interest termination conditions: (i) a fixed charge coverage ratio of no less than 1.50:1.00; (ii) an unsecured interest coverage ratio of not less than 2.00:1.00; (iii) a consolidated capitalization rate leverage ratio of not greater than 60%; and (iv) a secured debt ratio of no greater than 40%. Following the occurrence of the Security Interest Termination Event, certain terms and conditions of the 2024 Credit Facility are modified, including, but not limited to: (i) in certain circumstances, a reduction in the applicable rate under the 2024 Credit Facility, (ii) the modification or addition of certain financial covenants, (iii) the addition of a floor of at least $25 million for any cross-defaulted recourse debt of us, Borrower or any Subsidiary Guarantor, and (iv) in certain circumstances, a reduction in the annual unused fee for the 2024 Credit Facility. The outstanding 2032 Private Placement Notes previously issued by us remain pari passu with the 2024 Credit Facility.

The 2024 Credit Facility contains certain customary representations and warranties, affirmative, negative and financial covenants, borrowing conditions, and events of default. In particular, the financial covenants imposed on us include: a maximum leverage ratio, a minimum fixed charge coverage ratio, a minimum tangible net worth, certain limits on both secured debt and secured recourse debt, certain payout ratios of dividends paid to adjusted funds from operations, limits on unhedged variable rate debt, and minimum liquidity. If an event of default occurs and continues, the Borrower is subject to certain actions by the administrative agent, including, without limitation, the acceleration of repayment of all amounts outstanding under the 2024 Credit Facility.

As of March 31, 2024, 89 of our wholly-owned properties were encumbered by the 2024 Credit Facility, and we had borrowed approximately $521 million of the $650 million maximum potential current commitment of the 2024 Credit Facility. The availability of the Credit Facility is subject to certain calculations, including a debt service coverage ratio (“DSCR”) calculation which utilizes prevailing treasury rates within the calculation. As of March 31, 2024, based on the aforementioned and other borrowing base calculations, we had the ability to draw up to an additional approximately $58.4 million on the current capacity of the revolver.

2027 NBC Loan

On March 7, 2024, we, through five of our wholly-owned Canadian subsidiaries (the “2027 NBC Loan Borrowers”), entered into a loan with National Bank of Canada (“NBC”) as administrative agent, National Bank Financial as lead arranger and sole bookrunner, and certain other lenders party thereto, (the “2027 NBC Loan”). On such date, we drew the maximum aggregate borrowing of $75 million CAD pursuant to the 2027 NBC Loan. This loan is secured by the five properties owned by the 2027 NBC Loan Borrowers (the “Secured NBC Properties”).

Previously, four of the Secured NBC Properties were included in the borrowing base of the 2024 Credit Facility, and the other property was previously unencumbered. The net proceeds from the 2027 NBC Loan were used to pay down the 2024 Credit Facility by approximately $55.1 million USD, and accordingly, the respective four properties were released as collateral from the 2024 Credit Facility.

The 2027 NBC Loan has a maturity date of March 7, 2027, which may be extended for additional one-year periods in the discretion of the lenders. The 2027 NBC Loan carries a variable interest rate based on either the Canadian Overnight Repo Rate Average (“CORRA”) or the Canadian Prime Rate. As of March 31, 2024, borrowings under the 2027 NBC Loan were subject to interest at the CORRA rate, plus a CORRA adjustment of approximately 0.30%, plus a spread of 2.20%.

On March 12, 2024, we entered into an interest rate swap agreement based on CORRA with NBC whereby, inclusive of the swap we fixed the interest rate on the NBC loan at 6.42% for the initial three year term of the loan. The 2027 NBC Loan requires monthly amortizing principal and interest payments, which are based on a 25-year amortization schedule. The 2027 NBC Loan may be prepaid, in whole or in part, at any time upon prior written notice to the lenders, subject to interest rate swap breakage costs. SmartStop and the 2027 NBC Loan Borrowers provided an indemnity in favor of NBC and the lenders for certain environmental matters. SmartStop serves as a non-recourse guarantor, and each borrower provided a limited recourse guaranty up to the amount of the collateral pledged by it, under the 2027 NBC Loan.

31

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

2032 Private Placement Notes

On April 19, 2022, we as guarantor, and our Operating Partnership as issuer, entered into a note purchase agreement (the “Note Purchase Agreement”) which provides for the private placement of $150 million of 4.53% Senior Notes due April 19, 2032 (the “2032 Private Placement Notes”). The sale and purchase of the 2032 Private Placement Notes occurred in two closings, with the first of such closings having occurred on April 19, 2022 with $75 million aggregate principal amount of the 2032 Private Placement Notes having been issued on such date (the “First Closing”) and the second of such closings having occurred on May 25, 2022 with $75 million aggregate principal amount of the 2032 Private Placement Notes having been issued on such date (the “Second Closing”). Interest on each series of the 2032 Private Placement Notes is payable semiannually on the nineteenth day of April and October in each year.

Interest payable on the Notes was originally subject to a prospective 75 basis points increase, if, as of March 31, 2023, the ratio of total indebtedness to EBITDA (the “Total Leverage Ratio”) of the Company and its subsidiaries, on a consolidated basis, was greater than 7.00 to 1.00 (a “Total Leverage Ratio Event”).

As of March 31, 2023, such Total Leverage Ratio Event occurred, and our 2032 Private Placement Notes began accruing interest at a rate of 5.28%. The interest accruing on the 2032 Private Placement Notes will continue to accrue at 5.28% until such time as the Total Leverage Ratio is less than or equal to 7.00 to 1.00 for two consecutive fiscal quarters, upon such achievement, the applicable fixed interest rate will revert to 4.53% and remain at that interest rate through maturity, regardless of our future Total Leverage Ratio.

We are permitted to prepay at any time all, or from time to time, any part of the Notes in amounts not less than 5% of the 2032 Private Placement Notes then outstanding at (i) 100% of the principal amount so prepaid and (ii) the make-whole amount (as defined in the Note Purchase Agreement). The “Make-Whole Amount” is equal to the excess, if any, of the discounted value of the remaining scheduled payments with respect to the 2032 Private Placement Notes being prepaid over the amount of such 2032 Private Placement Notes. In addition, in connection with a change of control (as defined in the Note Purchase Agreement), the Operating Partnership is required to offer to prepay the 2032 Private Placement Notes at 100% of the principal amount plus accrued and unpaid interest thereon, but without the Make Whole Amount or any other prepayment premium or penalty of any kind. The Company must also maintain a debt rating of the 2032 Private Placement Notes by a rating agency.

The Note Purchase Agreement contains certain customary representations and warranties, affirmative, negative and financial covenants, and events of default that were substantially similar to the previously existing Credit Facility (defined below). The 2032 Private Placement Notes were issued on a pari passu basis with the previously existing Credit Facility, and are pari passu with the 2024 Credit Facility. As such, the Company and certain of its subsidiaries (the “Subsidiary Guarantors”) fully and unconditionally guarantee the Operating Partnership’s obligations under the 2032 Private Placement Notes. The 2032 Private Placement Notes were initially secured by a pledge of equity interests in the Subsidiary Guarantors on similar terms as the previously existing Credit Facility.

On April 26, 2024, we amended the Note Purchase Agreement dated April 19, 2022 (the “NPA Amendment”). The primary purpose of the NPA Amendment was to make certain conforming changes between the Note Purchase Agreement and our recently amended and restated revolving credit facility, the 2024 Credit Facility. In particular, the NPA Amendment conformed certain of the definitions related to the financial tests that we are required to maintain, as well as certain of the property pool covenants we are required to satisfy, in the Note Purchase Agreement during the term thereof to those in the 2024 Credit Facility.

Credit Facility

On March 17, 2021, we, through our Operating Partnership (the “Borrower”), entered into a credit facility with KeyBank, National Association, as administrative agent, KeyBanc Capital Markets, Inc., Wells Fargo Securities, Citibank, N.A., and BMO Capital Markets, Corp., as joint book runners and joint lead arrangers, and certain other lenders party thereto (the “Credit Facility”).

The initial aggregate amount of the Credit Facility was $500 million, which consisted of a $250 million revolving credit facility (the “Credit Facility Revolver”) and a $250 million term loan (the “Credit Facility Term Loan”).

32

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

On October 7, 2021, the Borrower and lenders who were party to the Credit Facility amended the Credit Facility to increase the commitment on the Credit Facility Revolver by $200 million for a total commitment of $450 million. In connection with the increased commitments, additional lenders were added to the Credit Facility. The commitments on the Credit Facility Term Loan remained unchanged. As a result of this amendment, the aggregate commitment on the Credit Facility was $700 million.

The maturity date of the Credit Facility Revolver was March 17, 2024, subject to a one-year extension option, at our election. The maturity date of the Credit Facility Term Loan was March 17, 2026. The Credit Facility was repaid in full on February 22, 2024 in connection with the establishment of the 2024 Credit Facility.

The following table presents the future principal payments required on outstanding debt as of March 31, 2024:

2024	$	2,787,760
2025		3,969,391
2026		94,321,605
2027		623,059,664
2028		78,272,413
2029 and thereafter		294,500,000
Total payments		1,096,910,833
Discount on secured debt		(76,991	)
Debt issuance costs, net		(3,633,319	)
Total	$	1,093,200,523

Note 6. Preferred Equity

Series A Convertible Preferred Stock

On October 29, 2019 (the “Commitment Date”), we entered into a preferred stock purchase agreement (the “Purchase Agreement”) with Extra Space Storage LP (the “Investor”), a subsidiary of Extra Space Storage Inc. (NYSE: EXR), pursuant to which the Investor committed to purchase up to $200 million in preferred shares (the aggregate shares to be purchased, the “Preferred Shares”) of our new Series A Convertible Preferred Stock (the “Series A Convertible Preferred Stock”), in one or more closings (each, a “Closing,” and collectively, the “Closings”). The initial closing (the “Initial Closing”) in the amount of $150 million occurred on the Commitment Date, and the second and final closing in the amount of $50 million occurred on October 26, 2020. We incurred approximately $3.6 million in issuance costs related to the Series A Convertible Preferred Stock, which were recorded as a reduction to Series A Convertible Preferred stock on our consolidated balance sheets.

The shares of Series A Convertible Preferred Stock rank senior to all other shares of our capital stock, including our common stock, with respect to rights to receive dividends and to participate in distributions or payments upon any voluntary or involuntary liquidation, dissolution or winding up of the Company. Dividends payable on each share of Series A Convertible Preferred Stock will initially be equal to a rate of 6.25% per annum. If the Series A Convertible Preferred Stock has not been redeemed on or prior to the fifth anniversary date of the Initial Closing (October 29, 2024), the dividend rate will increase an additional 0.75% per annum each year thereafter to a maximum of 9.0% per annum until the tenth anniversary of the Initial Closing, at which time the dividend rate shall increase 0.75% per annum each year thereafter until the Series A Convertible Preferred Stock is redeemed or repurchased in full. The dividends are payable in arrears for the prior calendar quarter on or before the 15th day of March, June, September and December of each year.

Upon any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of Series A Convertible Preferred Stock will be entitled to receive a payment equal to the greater of (i) aggregate purchase price of all outstanding Preferred Shares, plus any accrued and unpaid dividends (the “Liquidation Amount”) and (ii) the amount that would have been payable had the Preferred Shares been converted into common stock pursuant to the terms of the Purchase Agreement immediately prior to such liquidation.

Subject to certain additional redemption rights, as described herein, we have the right to redeem the Series A Convertible Preferred Stock for cash at any time following the fifth anniversary of the Initial Closing. The amount of such

33

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

redemption will be equal to the Liquidation Amount. Upon the listing of our common stock on a national securities exchange (the “Listing”), we have the right to redeem any or all outstanding Series A Convertible Preferred Stock at an amount equal to the greater of (i) the amount that would have been payable had such Preferred Shares been converted into common stock pursuant to the terms of the Purchase Agreement immediately prior to the Listing, and then all of such Preferred Shares were sold in the Listing, or (ii) the Liquidation Amount, plus a premium amount (the “Premium Amount”) of 10%, 8%, 6%, 4%, or 2% if redeemed prior to the first, second, third, fourth, or fifth anniversary dates of issuance, respectively, or 0% if redeemed thereafter, as set forth in the Articles Supplementary. Upon a change of control event, we have the right to redeem any or all outstanding Series A Convertible Preferred Stock at an amount equal to the greater of (i) the amount that would have been payable had the Preferred Shares been converted into common stock pursuant to the terms of the Purchase Agreement immediately prior to such change of control or (ii) the Liquidation Amount, plus the Premium Amount, as set forth in the Articles Supplementary. In addition, subject to certain cure provisions, if we fail to maintain our status as a real estate investment trust, the holders of Series A Convertible Preferred Stock have the right to require us to repurchase the Series A Convertible Preferred Stock at an amount equal to the Liquidation Amount with no Premium Amount.

Subject to our redemption rights in the event of a listing or change of control described above, upon the earlier to occur of (i) the second anniversary of the Initial Closing or (ii) 180 days after a Listing, the holders of Series A Convertible Preferred Stock have the right to convert any or all of the Series A Convertible Preferred Stock held by such holders into common stock at a rate per share equal to the quotient obtained by dividing the Liquidation Amount by the conversion price. The conversion price is $10.66, as may be adjusted in connection with stock splits, stock dividends and other similar transactions.

The holders of Series A Convertible Preferred Stock are not entitled to vote on any matter submitted to a vote of our stockholders, except that in the event that the dividend for the Series A Convertible Preferred Stock has not been paid for at least four quarters (whether or not consecutive), the holders of Series A Convertible Preferred Stock have the right to vote together with our stockholders on any matter submitted to a vote of our stockholders, upon which the holders of the Series A Convertible Preferred Stock and holders of common stock shall vote together as a single class. The number of votes applicable to a share of Series A Convertible Preferred Stock will be equal to the number of shares of common stock a share of Series A Convertible Preferred Stock could have been converted into as of the record date set for purposes of such stockholder vote. This foregoing limited voting right shall cease when all past dividend periods have been paid in full. In addition, the affirmative vote of the holders of a majority of the outstanding shares of Series A Convertible Preferred Stock is required in certain customary circumstances, as well as other circumstances, such as (i) our real estate portfolio exceeding a leverage ratio of 60% loan-to-value, (ii) entering into certain transactions with our Executive Chairman as of the Commitment Date, or his affiliates, (iii) effecting a merger (or similar) transaction with an entity whose assets are not at least 80% self storage related and (iv) entering into any line of business other than self storage and ancillary businesses, unless such ancillary business represents revenues of less than 10% of our revenues for our last fiscal year.

In connection with the issuance of the Series A Convertible Preferred Stock, we and the Investor also entered into an investors’ rights agreement (the “Investors’ Rights Agreement”) which provides the Investor with certain customary protections, including demand registration rights and “piggyback” registration rights with respect to our common stock issued to the Investor upon conversion of the Preferred Shares.

As of March 31, 2024, there were 200,000 Preferred Shares outstanding with an aggregate liquidation preference of approximately $203.1 million, which consists of $150 million from the Initial Closing, $50 million from a closing on October 26, 2020 and approximately $3.1 million of accumulated and unpaid distributions. As of December 31, 2023, there were 200,000 Preferred Shares outstanding with an aggregate liquidation preference of approximately $203.2 million, which consists of $150 million from the Initial Closing, $50 million from a closing on October 26, 2020 and approximately $3.2 million of accumulated and unpaid distributions.

Note 7. Derivative Instruments

Interest Rate Derivatives

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 have used interest rate swaps and caps as part of our interest rate risk management strategy.

34

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

For interest rate derivatives designated and qualified as a hedge for GAAP purposes, the change in the fair value of the effective portion of the derivative is recorded in accumulated other comprehensive income (loss) (“AOCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in AOCI related to such derivatives will be reclassified to interest expense as interest payments are made on our variable rate debt. In addition, we classify cash flows from qualifying cash flow hedging relationships in the same category as the cash flows from the hedged items in our consolidated statements of cash flows. We do not use interest rate derivatives for trading or speculative purposes.

Interest rate derivatives not designated as hedges for GAAP are not speculative and are used to manage our exposure to interest rate movements and other identified risks but we have elected not to apply hedge accounting. Changes in the fair value of interest rate derivatives not designated in hedging relationships are recorded in other income (expense) within our consolidated statements of operations.

Foreign Currency Hedges

Our objectives in using foreign currency derivatives are to add stability to potential fluctuations in exchange rates between foreign currencies and the U.S. dollar and to manage our exposure to exchange rate movements. To accomplish this objective, we have used foreign currency forwards and foreign currency options as part of our exchange rate risk management strategy. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. By entering into the forward contract and holding it to maturity, we are locked into a future currency exchange rate in an amount equal to and for the term of the forward contract. A foreign currency option contract is a commitment by the seller of the option to deliver, solely at the option of the buyer, a certain amount of currency at a certain price on a specific date.

For derivatives designated as net investment hedges for GAAP purposes, the changes in the fair value of the derivatives are reported in accumulated other comprehensive income. Amounts are reclassified out of accumulated other comprehensive income (loss) into earnings when the hedged net investment is either sold or substantially liquidated. The change in the value of the designated portion of our settled and unsettled foreign currency hedges is recorded net in foreign currency hedge contract gain (loss) in our consolidated statements of comprehensive income (loss) in the related period.

The change in the value of the portion of our settled and unsettled foreign currency hedges that is not designated for hedge accounting for GAAP is recorded in other income (expense) within our consolidated statements of operations and represented a gain of approximately $1.4 million and a loss of approximately $0.4 million for the three months ended March 31, 2024 and 2023, respectively.

On April 12, 2021, we entered into an approximately $125.9 million CAD currency forward with a settlement date of April 12, 2023. On April 12, 2023, we settled this foreign currency forward and received approximately USD $6.4 million, and simultaneously entered into a new approximately $134.4 million CAD currency forward with a maturity date of July 6, 2023. On July 5, 2023, we settled this foreign currency forward and paid approximately USD $1.2 million, and simultaneously entered into a new approximately $132.4 million CAD currency forward with a settlement date of April 12, 2024. On April 12, 2024, we settled this hedge and we received approximately USD $3.5 million. We simultaneously entered into a new foreign currency hedge with a notional amount of $136,476,000 CAD at a strike rate of 1.3648 which matures on April 11, 2025.

On October 12, 2022, we entered into a new $137.7 million CAD currency forward with a settlement date of October 12, 2023. On October 11, 2023, we rolled this hedge without any cash settlement, extending the maturity date to November 9, 2023 at a strike rate of 1.3766, and notional of $137,664,000 CAD. On November 9, 2023, we rolled this hedge without any cash settlement, extending the maturity date to November 16, 2023 at a strike rate of 1.3767, and notional of $137,669,000 CAD. On November 16, 2023, this hedge matured, and without any cash settlement, we simultaneously entered into a new $30.0 million CAD currency forward with a maturity date of January 16, 2024, and a strike rate of 1.3782. On January 16, 2024 we rolled this hedge without any cash settlement, effectively extending the maturity date to February 15, 2024 at a strike rate of 1.3781. Additionally, on February 16, 2024 we further rolled this hedge without any cash settlement at a strike

35

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

rate of 1.3781. This hedge ultimately matured on March 7, 2024 whereby we owed and paid approximately $0.5 million at settlement.

In connection with the 2027 NBC Loan borrowing, on March 12, 2024, we entered into a CORRA Swap with NBC with a notional amount of CAD $75,000,000 at a rate of 3.926% for the initial duration of the 2027 NBC Loan, maturing on March 7, 2027.

The following table summarizes the terms of our derivative financial instruments as of March 31, 2024:

	Notional Amount		Strike			Effective Date or Date Assumed	Maturity Date
Interest Rate Derivatives:
SOFR Cap	$	125,000,000		2.00	%	June 1, 2022	June 28, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 1, 2025
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
CORRA Swap (1)	$	75,000,000		3.93	%	March 12, 2024	March 7, 2027
Foreign Currency Forwards:
Denominated in CAD (1)(2)	$	132,350,000		1.3273		July 5, 2023	April 12, 2024

(1)Notional amounts shown are denominated in CAD.

(2)On April 12, 2024, we settled this hedge and we received approximately $3.5 million. We simultaneously entered into a new foreign currency hedge with a notional amount of $136,476,000 CAD at a strike rate of 1.3648 which matures on April 11, 2025.
 

The following table summarizes the terms of our derivative financial instruments as of December 31, 2023:

	Notional Amount		Strike			Effective Date or Date Assumed	Maturity Date
Interest Rate Derivatives:
SOFR Cap	$	125,000,000		2.00	%	June 1, 2022	June 28, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 1, 2025
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
Foreign Currency Forwards:
Denominated in CAD (1)	$	132,350,000		1.3273		July 5, 2023	April 12, 2024
Denominated in CAD (1) (2)	$	30,000,000		1.3782		November 16, 2023	January 16, 2024

(1)Notional amount shown is denominated in CAD.

(2)On January 16, 2024 we rolled this hedge without any cash settlement, effectively extending the maturity date to February 15, 2024 at a strike rate of 1.3781. Additionally, on February 16, 2024 we further rolled this hedge without any cash settlement at a strike rate of 1.3781. This hedge ultimately matured on March 7, 2024 whereby we owed and paid approximately $0.5 million at settlement.

36

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

The following tables present a gross presentation of the fair value of our derivative financial instruments as well as their classification on our consolidated balance sheets as of March 31, 2024 and December 31, 2023:

	Asset/Liability Derivatives
	Fair Value
Balance Sheet Location	March 31, 2024		December 31, 2023
Interest Rate Derivatives
Other assets	$	2,592,468	$	3,485,281
Accounts payable and accrued liabilities	$	101,787	$	—
Foreign Currency Hedges
Other assets	$	2,247,494	$	—
Accounts payable and accrued liabilities	$	—	$	985,412

The following tables presents the effect of our derivative financial instruments designated for hedge accounting, on our consolidated statements of operations for the periods presented:

	Gain (loss) recognized in OCI for the three months ended March 31,						Location of amounts reclassified from OCI into income	Gain (loss) reclassified from OCI for the three months ended March 31,
Type	2024			2023				2024		2023
Interest Rate Swaps	$	(60,369	)	$	-		Interest expense	$	41,418	$	45,546
Interest Rate Caps		468,248			(526,318	)	Interest expense		873,134		921,477
Foreign Currency Forwards		1,355,914			(91,616	)	N/A		-		-
	$	1,763,793		$	(617,934	)		$	914,552	$	967,023

Based on the forward rates in effect as of March 31, 2024, we estimate that approximately $1.0 million related to

our qualifying cash flow hedges will be reclassified to reduce interest expense during the next 12 months.

Note 8. Income Taxes

As a REIT, we generally will not be subject to U.S. federal income tax on taxable income that we distribute to our stockholders. However, certain of our consolidated subsidiaries are taxable REIT subsidiaries, which are subject to federal, state and foreign income taxes. We have filed an election to treat our primary TRS as a taxable REIT subsidiary effective January 1, 2014. In general, our TRS performs additional services for our customers and provides the advisory and property management services to the Managed REITs and otherwise generally engages in non-real estate related business. The TRS is subject to corporate U.S. federal and state income tax. Additionally, we own and operate a number of self storage properties located throughout Canada, the income of which is generally subject to income taxes under the laws of Canada.

37

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

The following is a summary of our income tax expense (benefit) for the three months ended March 31, 2024 and 2023:

	For the three months ended March 31, 2024
	Federal			State			Canadian		Total
Current	$	-		$	8,861		$	115,560	$	124,421
Deferred		68,057			2,828			146,997		217,882
Total	$	68,057		$	11,689		$	262,557	$	342,303
	For the three months ended March 31, 2023
	Federal			State			Canadian		Total
Current	$	51,557		$	9,277		$	96,099	$	156,933
Deferred		(2,619	)		(399	)		123,305		120,287
Total	$	48,938		$	8,878		$	219,404	$	277,220

38

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

The major sources of temporary differences that give rise to the deferred tax effects are shown below:

	March 31, 2024			December 31, 2023
Deferred tax liabilities:
Intangible contract assets	$	(15,092	)	$	(18,111	)
Canadian real estate		(9,904,999	)		(9,887,050	)
Total deferred tax liability		(9,920,091	)		(9,905,161	)
Deferred tax assets:
Other		1,527,465			1,267,292
Canadian real estate and non-capital losses		7,718,063			7,561,373
Total deferred tax assets		9,245,528			8,828,665
Valuation allowance		(892,589	)		(667,514	)
Net deferred tax liabilities	$	(1,567,152	)	$	(1,744,010	)

The Canadian non-capital losses expire between 2032 and 2043. As of March 31, 2024 and December 31, 2023, the Company had Canadian non-capital loss carry forwards of approximately $23.9 million and $24.9 million, respectively. As of March 31, 2024 and December 31, 2023, we had a valuation allowance of approximately $0.9 million and $0.7 million, respectively, related to non-capital loss carry-forwards at certain of our Canadian properties.

Note 9. Segment Disclosures

We operate in two reportable business segments: (i) self storage operations and (ii) our Managed REIT Platform business.

Management evaluates performance based upon property net operating income (“NOI”). For our self storage operations, NOI is defined as leasing and related revenues, less property level operating expenses. NOI for the Company’s Managed REIT Platform business represents Managed REIT Platform revenues less Managed REIT Platform expenses.

39

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

The following tables summarize information for the reportable segments for the periods presented:

	Three Months Ended March 31, 2024
				Managed REIT			Corporate
	Self Storage			Platform			and Other			Total
Revenues:
Self storage rental revenue	$	50,469,142		$	—		$	—		$	50,469,142
Ancillary operating revenue		2,192,633			—			—			2,192,633
Managed REIT Platform revenue		—			2,734,207			—			2,734,207
Reimbursable costs from Managed REITs		—			1,646,075			—			1,646,075
Total revenues		52,661,775			4,380,282			—			57,042,057
Operating expenses:
Property operating expenses		17,389,955			—			—			17,389,955
Managed REIT Platform expense		—			851,187			—			851,187
Reimbursable costs from Managed REITs		—			1,646,075			—			1,646,075
General and administrative		—			—			7,426,164			7,426,164
Depreciation		13,353,607			—			230,791			13,584,398
Intangible amortization expense		24,135			48,930			—			73,065
Acquisition expenses		70,876			—			—			70,876
Total operating expenses		30,838,573			2,546,192			7,656,955			41,041,720
Income (loss) from operations		21,823,202			1,834,090			(7,656,955	)		16,000,337
Other income (expense):
Equity in earnings (losses) from    investments in JV Properties		—			—			(329,092	)		(329,092	)
Equity in earnings (losses) from    investments in Managed REITs		—			(451,562	)		—			(451,562	)
Other, net		340,777			450,376			(283,638	)		507,515
Interest expense		(16,511,848	)		—			(41,394	)		(16,553,242	)
Loss on debt extinguishment		(471,166	)		—			—			(471,166	)
Income tax (expense) benefit		(268,190	)		(64,207	)		(9,906	)		(342,303	)
Net income (loss)	$	4,912,775		$	1,768,697		$	(8,320,985	)	$	(1,639,513	)

	Three Months Ended March 31, 2023
				Managed REIT			Corporate
	Self Storage			Platform			and Other			Total
Revenues:
Self storage rental revenue	$	51,276,898		$	—		$	—		$	51,276,898
Ancillary operating revenue		2,190,622			—			—			2,190,622
Managed REIT Platform revenue		—			2,276,535			—			2,276,535
Reimbursable costs from Managed REITs		—			1,391,210			—			1,391,210
Total revenues		53,467,520			3,667,745			—			57,135,265
Operating expenses:
Property operating expenses		16,533,452			—			—			16,533,452
Managed REIT Platform expense		—			549,936			—			549,936
Reimbursable costs from Managed REITs		—			1,391,210			—			1,391,210
General and administrative		—			—			6,536,626			6,536,626
Depreciation		13,085,836			—			186,435			13,272,271
Intangible amortization expense		1,870,775			48,930			—			1,919,705
Acquisition expenses		31,190			—			—			31,190
Total operating expenses		31,521,253			1,990,076			6,723,061			40,234,390
Income (loss) from operations		21,946,267			1,677,669			(6,723,061	)		16,900,875
Other income (expense):
Equity in earnings (losses) from    investments in JV Properties		—			—			(405,111	)		(405,111	)
Equity in earnings (losses) from    investments in Managed REITs		—			(233,025	)		—			(233,025	)
Other, net		(415,297	)		1,142,964			23,311			750,978
Interest expense		(14,661,959	)		—			(41,938	)		(14,703,897	)
Income tax (expense) benefit		(144,596	)		—			(132,624	)		(277,220	)
Net income (loss)	$	6,724,415		$	2,587,608		$	(7,279,423	)	$	2,032,600

40

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

The following table summarizes our total assets by segment:

Segments	March 31, 2024		December 31, 2023
Self Storage(1)	$	1,785,797,427	$	1,798,510,325
Managed REIT Platform(2)		42,605,655		41,761,259
Corporate and Other		57,993,541		55,369,141
Total assets(3)	$	1,886,396,623	$	1,895,640,725

(1)Included in the assets of the Self Storage segment as of March 31, 2024 and December 31, 2023 was approximately $52.2 million of goodwill. Additionally, as of March 31, 2024 and December 31, 2023, there were no accumulated impairment charges to goodwill within the Self Storage segment.

(2)Included in the assets of the Managed REIT Platform segment as of March 31, 2024 and December 31, 2023 was approximately $1.4 million of goodwill. Such goodwill is net of accumulated impairment charges in the Managed REIT Platform segment of approximately $24.7 million, which relates to the impairment charge recorded during the quarter ended March 31, 2020.

(3)Other than our investments in and advances to Managed REITs and investments in JV properties, substantially all of our investments in real estate facilities and intangible assets as of March 31, 2024 and December 31, 2023, respectively, were associated with our self storage platform.

As of March 31, 2024 and December 31, 2023, approximately $169 million and $174 million, respectively, of our assets in the self storage segment related to our operations in Canada. For the three months ended March 31, 2024, and 2023, approximately $5.4 million and $5.3 million, respectively, of our revenues in the self storage segment related to our operations in Canada. Substantially all of our operations related to the management fees we generate through our management contracts with the Managed REITs are performed in the U.S.; accordingly substantially all of our assets and revenues related to our Managed REIT segment are based in the U.S. as well.

As of March 31, 2024 and December 31, 2023, approximately $36.2 million and $35.8 million, respectively, of our assets in the Corporate and Other segment in the table above relate to our JV Properties which operate in Canada. For the three months ended March 31, 2024 and 2023, approximately $0.3 million and $0.4 million of losses, respectively, relate to these JV Properties' operations in Canada.

Note 10. Related Party Transactions

Self Administration Transaction

On June 28, 2019, we, our Operating Partnership and SmartStop TRS entered into a series of transactions, agreements, and amendments to our existing agreements and arrangements with our then-sponsor, SAM, and SmartStop OP Holdings, LLC (“SS OP Holdings”), a subsidiary of SAM, pursuant to which, effective June 28, 2019, we acquired the self storage advisory, asset management and property management businesses and certain joint venture interests of SAM, along with certain other assets of SAM (collectively, the “Self Administration Transaction”).

As a result of the Self Administration Transaction, we became self-managed and succeeded to the advisory, asset management and property management businesses and certain joint ventures previously in place for us, SST IV (until the SST IV Merger Date), and SSGT II (until the SSGT II Merger Date), and we acquired the internal capability to originate, structure and manage additional future self storage investment products which would be sponsored by SmartStop REIT Advisors, LLC (“SRA”), our indirect subsidiary. The transfer agent agreement described below was not impacted by the Self Administration Transaction.

Our Chief Executive Officer, who is also the Chairman of our board of directors, holds ownership interests in and is an officer of SAM, and other affiliated entities. Our Chief Executive Officer also previously indirectly held an ownership

41

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

interest in our former dealer manager. Previously, certain of our executive officers and another member of our board of directors held ownership interests in and/or were officers of SAM, and other affiliated entities. Accordingly, any agreements or transactions we have entered into with such entities may present a conflict of interest. None of SAM and its affiliates or our directors or executive officers receive any compensation, fees or reimbursements from our Managed REITs, other than with respect to fees and reimbursements in accordance with the Administrative Services Agreement and the transfer agent agreement, or as otherwise described in this section.

Transfer Agent Agreement

SAM owns 100% of the membership interests of Strategic Transfer Agent Services, LLC, our transfer agent (“Transfer Agent”), which is a registered transfer agent with the SEC. Pursuant to our transfer agent agreement, our Transfer Agent provided transfer agent and registrar services to us. These services were substantially similar to what a third party transfer agent would provide in the ordinary course of performing its functions as a transfer agent, including, but not limited to: providing customer service to our stockholders, processing the distributions and any servicing fees with respect to our shares and issuing regular reports to our stockholder. We believe that our Transfer Agent, through its knowledge and understanding of the direct participation program industry which includes non-traded REITs, was particularly suited to provide us with transfer agent and registrar services.

Fees paid to our Transfer Agent included a fixed quarterly fee, one-time account setup fees, monthly open account fees and fees for investor inquiries. In addition, we reimbursed our Transfer Agent for all reasonable expenses or other charges incurred by it in connection with the provision of its services to us, and we paid our Transfer Agent fees for any additional services that we requested from time to time, in accordance with its rates then in effect.

Effective as of April 29, 2024, we transitioned to a new transfer agent, SS&C GIDS, Inc. In connection with such transfer, we simultaneously terminated the transfer agent agreement with Strategic Transfer Agent Services, LLC. In lieu of a termination fee and in recognition of the additional cost and expenses incurred by our former transfer agent in connection with the transition, we incurred a transition fee of $150,000 payable to Strategic Transfer Agent Services, LLC.

Pursuant to the terms of the agreements described above, the following table summarizes related party costs incurred and paid by us for the year ended December 31, 2023 and the three months ended March 31, 2024, as well as any related amounts payable as of December 31, 2023 and March 31, 2024.

	Year Ended December 31, 2023						Three Months Ended March 31, 2024
	Incurred		Paid		Payable		Incurred		Paid		Payable
Expensed
Transfer Agent fees	$	1,479,254	$	1,473,005	$	75,000	$	378,590	$	378,590	$	75,000
Additional paid-in capital
Transfer Agent expenses		—		—		—		—		—		—
Stockholder servicing          fee		—		—		—		—		—		—
Other
Other		—		—		340,980		—		—		340,980
Total	$	1,479,254	$	1,473,005	$	415,980	$	378,590	$	378,590	$	415,980

Acquisition of Self Storage Platform from SAM and Other Transactions

As a result of the Self Administration Transaction, we acquired the self storage sponsorship platform of SAM. Accordingly, the advisor and property manager entities of SST IV and SSGT II became our indirect subsidiaries, and we became entitled to receive various fees and expense reimbursements under the terms of the SST IV and SSGT II advisory and property management agreements as described below. In addition, we now also own the advisor and property manager entities of SST VI and SSGT III and are entitled to receive various fees and expense reimbursements under the terms of the SST VI and SSGT III advisory and property management agreements as described below.

42

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Advisory Agreement Fees

Our indirect subsidiaries, the SST VI Advisor, and the SSGT III Advisor are or were entitled to receive various fees and expense reimbursements under the terms of the SST VI, and SSGT III advisory agreements.

SST VI Advisory Agreement

The SST VI Advisor provides acquisition and advisory services to SST VI pursuant to an advisory agreement (the “SST VI Advisory Agreement”). In connection with the SST VI private placement offering, SST VI was required to reimburse the SST VI Advisor for organization and offering costs from the SST VI private offering pursuant to the SST VI private offering advisory agreement.

Pursuant to the SST VI Advisory Agreement, the SST VI Advisor receives acquisition fees equal to 1.00% of the contract purchase price of each property SST VI acquires plus reimbursement of any acquisition expenses that SST VI Advisor incurs. The SST VI Advisor also receives a monthly asset management fee equal to 0.0625%, which is one-twelfth of 0.75%, of SST VI’s aggregate asset value, as defined.

A subsidiary of our Operating Partnership may also be potentially entitled to a subordinated distribution through its ownership of a special limited partnership in SST VI OP if SST VI (1) lists its shares of common stock on a national exchange, (2) terminates the SST VI Advisory Agreement, (3) liquidates its portfolio, or (4) merges with another entity or enters into an Extraordinary Transaction, as defined in SST VI OP's limited partnership agreement.

The SST VI Advisory Agreement provides for reimbursement of the SST VI Advisor’s direct and indirect costs of providing administrative and management services to SST VI. Beginning four fiscal quarters after commencement of SST VI's public offering, which was declared effective March 17, 2022, the SST VI Advisor was required to pay or reimburse SST VI the amount by which SST VI’s aggregate annual operating expenses, as defined, exceed the greater of 2% of SST VI’s average invested assets or 25% of SST VI’s net income, as defined, unless a majority of SST VI’s independent directors determine that such excess expenses were justified based on unusual and non-recurring factors.

On March 1, 2022, Pacific Oak Holding Group, LLC, became a 10% non-voting member of the SST VI Advisor. Pacific Oak Capital Markets, LLC (a subsidiary of Pacific Oak Holding Group, LLC) is SST VI's dealer manager, and as such, is responsible for the marketing of SST VI shares being offered pursuant to SST VI's private offering, and subsequent to March 17, 2022, SST VI's public offering.

On October 25, 2022, we, through one of our subsidiaries also agreed to pay SST VI’s dealer manager an amount equal to 1.5% of the gross offering proceeds from the sale of Class W shares sold in its public offering. On October 31, 2023, in connection with an amendment to SST VI's dealer manager agreement, SST VI ceased the sale of Class W shares in its public offering, and subsequently began selling Class Z shares. For the year ended December 31, 2023, we had incurred approximately $59,000, to SST VI's dealer manager associated with the Class W Shares in its public offering.

Additionally, in connection with SST VI's public offering of Class W shares through October 31, 2023, the SST VI Advisor or its affiliates agreed to fund on behalf of SST VI, an amount equal to 1% of the gross offering proceeds from the sale of Class W shares sold in its initial public offering, which amount was to be used by SST VI towards the payment of its offering expenses. For the year ended December 31, 2023, we funded SST VI such costs in the amount of approximately $39,000. No further payments were incurred after October 31, 2023 to SST VI's dealer manager or SST VI under these agreements per the amendment which ceased the sale of Class W shares on such date.

Separately, we through one of our subsidiaries agreed to pay SST VI’s dealer manager an amount equal to 1.5% of the gross offering proceeds from the sale of Class Z shares sold in its public offering. For the three months ended March 31, 2024, we had incurred approximately $12,000 to SST VI's dealer manager associated with the Class Z Shares sold in its public offering.

SSGT III Advisory Agreement

The SSGT III Advisor provides acquisition and advisory services to SSGT III pursuant to an advisory agreement (the “SSGT III Advisory Agreement”). In connection with the SSGT III private placement offering, which became effective on May 18, 2022, SSGT III is required to reimburse the SSGT III Advisor for organization and offering costs from the SSGT III private offering pursuant to the SSGT III Advisory Agreement.

43

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Pursuant to the SSGT III Advisory Agreement, the SSGT III Advisor will receive acquisition fees equal to 1.00% of the contract purchase price of each property SSGT III acquires plus reimbursement of acquisition expenses that SSGT III Advisor incurs, provided, however, that no reimbursement shall be made for costs of personnel to the extent that such personnel perform services in transactions for which the Advisor receives the Acquisition Fee. The SSGT III Advisor also receives a monthly asset management fee equal to 0.0625%, which is one-twelfth of 0.75%, of SSGT III’s aggregate asset value, as defined. The SSGT III Advisor is also entitled to receive a disposition fee equal to 1.5% of the contract sale price for any properties sold inclusive of any real estate commissions paid to third party real estate brokers. Through a separate agreement, Pacific Oak Holding Group, LLC, the parent company of Pacific Oak Capital Markets, LLC, the dealer manager for the SSGT III private offering, is entitled to receive 10% of the acquisition fees, asset management fees and disposition fees SSGT III Advisor earns pursuant to the SSGT III Advisory Agreement.

A subsidiary of our Operating Partnership may also be potentially entitled to various subordinated distributions through its ownership of a special limited partnership in SSGT III’s operating partnership agreement if SSGT III (1) lists its shares of common stock on a national exchange, (2) terminates the SSGT III Advisory Agreement, (3) liquidates its portfolio, or (4) merges with another entity or enters into an Extraordinary Transaction, as defined in the SSGT III operating partnership agreement.

The SSGT III Advisory Agreement provides for reimbursement of the SSGT III Advisor’s direct and indirect costs of providing administrative and management services to SSGT III.

Managed REIT Property Management Agreements

Our indirect subsidiaries, SS Growth Property Management II, LLC, Strategic Storage Property Management VI, LLC, and SS Growth Property Management III, LLC, (collectively the “Managed REITs Property Managers”), are or were entitled to receive fees for their services in managing the properties owned by the Managed REITs pursuant to property management agreements entered into between the owner of the property and the applicable Managed REIT’s Property Manager.

The Managed REITs’ Property Managers will receive a property management fee equal to 6% of the gross revenues from the properties, generally subject to a monthly minimum of $3,000 per property, plus reimbursement of the costs of managing the properties, and a one-time fee of $3,750 for each property acquired that would be managed by the Managed REITs’ Property Managers. Reimbursable costs and expenses include wages and salaries and other expenses of employees engaged in operating, managing and maintaining such properties. Pursuant to the property management agreements, we through our Operating Partnership employ the on-site staff for the Managed REITs’ properties.

The SST VI and SSGT III property managers are or were entitled to a construction management fee equal to 5% of the cost of a related construction or capital improvement work project in excess of $10,000.

Effective June 1, 2022, in connection with the SSGT II Merger, the SSGT II property management contracts were terminated. As a result of us acquiring SSGT II and terminating such contracts, we recorded a write-off of approximately $0.6 million related to the carrying value of the SSGT II property management contracts.

In connection with the Self Administration Transaction, we previously recorded a deferred tax liability, which was the result of the difference between the GAAP carrying value of the SSGT II property management contract and the carrying value for tax purposes. As we reduced the GAAP carrying value of such intangible asset, we adjusted the value of our deferred tax liability on a pro-rata basis, reducing the deferred tax liability by approximately $0.2 million during the year ended December 31, 2022 related to the SSGT II Merger and the related aforementioned write-offs, and recorded such benefits within the income tax (expense) benefit line-item in our consolidated statements of operations.

44

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Summary of Fees and Revenue Related to the Managed REITs

Pursuant to the terms of the various agreements described above for the Managed REITs, the following summarizes the related party fees for the three months ended March 31, 2024 and 2023:

	Three Months Ended
	March 31,
Managed REIT Platform Revenues	2024			2023
Asset Management Fees:
SST VI		1,059,898			592,122
SSGT III		336,996			171,407
		1,396,894			763,529
Property Management Fees:
SST VI		392,517			231,222
SSGT III		123,208			54,315
JV Properties		217,049			171,895
		732,774			457,432
Tenant Protection Program Fees:
SST VI		272,724			142,596
SSGT III		82,245			14,708
JV Properties		87,904			58,329
		442,873			215,633
Acquisition Fees:
SST VI		33,647			542,681
SSGT III		—			157,000
		33,647			699,681
Other Managed REIT Fees(1)		308,865			140,260
Managed REIT Platform Fees		2,915,053			2,276,535
Sponsor funding reduction (2)		(180,846	)		—
Total Managed REIT Platform Revenues	$	2,734,207		$	2,276,535

(1)Such revenue primarily includes other property management related fees, construction management fees, development fees, and other miscellaneous revenues.

(2)Pursuant to the Sponsor Funding Agreement, SmartStop funds certain costs of SST VI's share sales, and in return receives Series C Units in SST VI's OP. The excess of the funding over the value of the Series C Units received is accounted for as a reduction of Managed REIT Platform revenues from SST VI over the remaining estimated term of the management contracts with SST VI.

We offer tenant insurance or tenant protection programs to customers at our Managed REITs' properties pursuant to which we, as the property manager and majority owner of the Tenant Protection Program joint ventures, are entitled to substantially all of the net revenue attributable to the sale of such tenant programs.

In order to protect our interest in receiving these revenues in light of the fact that the Managed REITs control the properties, we and the Managed REITs transferred our respective rights in such arrangements to a joint venture entity owned 99.9% by us through a TRS subsidiary and 0.1% by the Managed REIT. Under the terms of the operating agreements of the joint venture entities, we receive 99.9% of the net revenues generated from such Tenant Protection Programs and the Managed REIT receives the other 0.1% of such net revenues. Subsequent to the SSGT II Merger, the SSGT II Tenant Protection Programs joint ventures are wholly-owned by us and such revenue is generated at our now wholly-owned self storage properties and is recorded within ancillary operating revenue in our consolidated statements of operations.

45

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Reimbursable costs from Managed REITs includes reimbursement of SST IV (until the SST IV Merger Date), SSGT II (until the SSGT II Merger Date), SST VI and SSGT III's Advisors’ direct and indirect costs of providing administrative and management services to the Managed REITs. Additionally, reimbursable costs includes reimbursement pursuant to the property management agreements for reimbursement of the costs of managing the Managed REITs’ properties, including wages and salaries and other expenses of employees engaged in operating, managing and maintaining such properties.

As of March 31, 2024 and December 31, 2023 we had receivables due from the Managed REITs totaling approximately $11.4 million and $6.5 million, respectively. Such amounts are included in investments in and advances to the Managed REITs line-item in our consolidated balance sheets. Such amounts included unpaid amounts relative to the above table, in addition to other direct reimbursable expenditures of the Managed REITs that we directly funded.

Investments in and advances to SST VI OP

Equity Investments

On March 10, 2021, SmartStop OP made an investment of $5.0 million in SST VI OP, in exchange for common units of limited partnership interest in SST VI OP. Additionally, a subsidiary of SmartStop OP owns a special limited partnership interest (the “SST VI SLP”) in SST VI OP.

For the three months ended March 31, 2024 we recorded a loss related to our equity interest in SST VI OP of approximately $0.3 million, and received distributions in the amount of approximately $85,000.

For the three months ended March 31, 2023 we recorded a loss related to our equity interest in SST VI OP of approximately $0.2 million, and received distributions in the amount of approximately $84,000.

On January 30, 2023, a subsidiary of SmartStop made a preferred investment of 600,000 Series A Cumulative Redeemable Preferred units of limited partnership interest in SST VI OP for an aggregate of $15 million. Upon closing of the preferred investment, an investment fee equal to 1% of the investment amount was owed and paid by SST VI OP. SmartStop, through its subsidiary, received distributions, payable monthly in arrears, at a rate of 7.0% per annum from the date of issuance until the second anniversary of the date of issuance, 8.0% per annum commencing thereafter until the third anniversary of the date of issuance, 9.0% per annum commencing thereafter until the fourth anniversary of the date of issuance, and 10% per annum thereafter, payable monthly. On May 2, 2023, SST VI fully redeemed SmartStop's preferred investment of 600,000 Series A Cumulative Redeemable Preferred units of limited partnership interest in SST VI OP, and repaid accrued distributions due as of the date of redemption for a total amount of approximately $15.1 million.

Sponsor Funding Agreement

On November 1, 2023, SRA, a subsidiary of SmartStop OP entered into a Sponsor Funding Agreement with SST VI and SST VI OP, in connection with certain changes to the public offering of SST VI.

Pursuant to the Sponsor Funding Agreement, SRA, as sponsor of the SST VI offering, has agreed to fund the payment of (i) the upfront 3% sales commission for the sale of shares of SST VI’s Class Y common stock sold in the SST VI offering, (ii) the upfront 3% dealer manager fee for the Class Y Shares sold in the SST VI offering, and (iii) the estimated 1% organization and offering expenses for the sale of Class Y Shares and shares of SST VI’s Class Z common stock sold in the SST VI offering. SRA also agreed to reimburse SST VI in cash to cover the dilution from certain one-time stock dividends which were issued by SST VI to existing stockholders in connection with the sponsor funding changes to the SST VI offering. On December 15, 2023, we paid SST VI approximately $6.6 million for the reimbursement of the aforementioned stock dividend.

In consideration for SRA providing the funding for the front-end sales load and the cash to cover the dilution from the stock dividends described above, SST VI OP will issue a number of Series C Units to SRA equal to the dollar amount of such funding divided by the then-current offering price for the Class Y Shares and Class Z Shares sold in the SST VI offering, which will initially be $9.30 per share. Pursuant to the Sponsor Funding Agreement, SRA will reimburse SST VI monthly for the applicable front-end sales load it has agreed to fund, and SST VI OP will issue the Series C Units on a monthly basis upon such reimbursement. The Sponsor Funding Agreement will terminate immediately upon the date that SST VI ceases to offer the Class Y Shares and Class Z Shares in the SST VI offering. The SST VI offering was set to expire on March 17, 2024, and was extended to March 17, 2025 upon the approval of SST VI's board of directors on February 1, 2024. Inclusive of all extension options available to SST VI, its offering could not extend beyond September 12, 2025.

46

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

On November 1, 2023, SRA entered into Amendment No. 3 to the Second Amended and Restated Limited Partnership Agreement of SST VI OP with SST VI and SST VI OP containing, among other things, the terms of the Series C Units. The Series C Units shall initially have no distribution, liquidation, voting, or other rights to participate in SST VI OP unless and until such Series C Units are converted into class A units of SST VI OP. The Series C Units shall automatically convert into class A units on a one-to-one basis upon SST VI’s disclosure of an estimated net asset value per share equal to at least $10.00 per share for each class of SST VI shares of common stock, including the Class Y Shares and Class Z Shares, calculated net of the value of the Series C Units to be converted.

Through March 31, 2024, we have incurred approximately $7.5 million in connection with the Sponsor Funding Agreement, representing approximately 810,000 subordinated units. During the three months ended March 31, 2024 we incurred approximately $0.7 million, of which approximately $0.2 million was accrued as a payable pursuant to the Sponsor Funding Agreement.

If SST VI were to sell the maximum amount under its offering of $1.0 billion, assuming the sale of all Class Y Shares consisting of a 7% front end sales load, the maximum commitment of SRA pursuant to the Sponsor Funding Agreement is approximately $70 million.

Debt Investments

On December 30, 2021, in connection with SST VI's acquisition of two self storage facilities, SmartStop OP entered into a mezzanine loan agreement with a wholly-owned subsidiary of SST VI OP for up to $45 million (the “SST VI Mezzanine Loan”). The SST VI Mezzanine Loan required a commitment fee equal to 1.0% of the amount drawn at closing of the SST VI Mezzanine Loan, and each subsequent draw. Interest on this loan accrued at LIBOR plus 3.0%.

The SST VI Mezzanine Loan was amended on December 20, 2022, such amendment increased the principal borrowing amount from a maximum of $45 million to $55 million. Pursuant to this amendment, the interest rate on the SST VI Mezzanine Loan was converted to a variable rate equal to SOFR plus 3.0%. Additionally, in such amendment, SST VI exercised the existing extension option; payments on the SST VI Mezzanine Loan were interest only until the due date of December 30, 2023. As of December 31, 2022 the balance on the SST VI Mezzanine Loan was $35.0 million. On January 31, 2023, SST VI borrowed an additional $15.0 million on the SST VI Mezzanine Loan. On May 2, 2023, SST VI fully repaid the outstanding principal, plus all applicable accrued interest due on the SST VI Mezzanine Loan as of such date for a total amount of approximately $51.7 million. On such date, the SST VI Mezzanine Loan agreement was terminated.

On June 13, 2023 SmartStop OP entered into a promissory note agreement with SST VI OP ( the “SST VI Note”), where SST VI OP borrowed $15.0 million. Interest on the loan accrued at SOFR plus 3.0%. Payments on the SST VI Note are interest only. The loan was extended to December 31, 2024 at the borrower's option. As such, the interest rate on the loan increased to SOFR plus 4.0%, and a fee equal to 0.25% of the outstanding principal balance was due as a result of SST VI exercising the extension option. The SST VI Note required a commitment fee equal to 1.0% of the aggregate principal amount of the loan. As of March 31, 2024, SST VI OP had $15.0 million borrowed and outstanding pursuant to the SST VI Note.

The following table summarizes the carrying value of our investments in and advances to SST VI as of March 31, 2024 and December 31, 2023:
 

Receivables:	As of March 31, 2024		As of December 31, 2023
Receivables and advances due	$	9,663,148	$	5,861,326
Debt:
SST VI Note		15,000,000		15,000,000
Equity:
SST VI OP Units and    SST VI SLP		1,568,062		1,932,357
SST VI Class C Subordinated Units		3,645,126		3,306,494
Total investments in and advances	$	29,876,336	$	26,100,177

47

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Investments in and advances to SSGT III OP

Equity Investments

On August 29, 2022, SmartStop OP made an investment of $5.0 million in SS Growth Operating Partnership III, L.P., the operating partnership of SSGT III (“SSGT III OP”), in exchange for common units of limited partnership interest in SSGT III OP. Additionally, a subsidiary of SmartStop OP owns a special limited partnership interest (the “SSGT III SLP”) in SSGT III OP.

For the three months ended March 31, 2024, we recorded a loss related to our equity interest in SSGT III OP of approximately $0.2 million, and received distributions in the amount of approximately $68,000.

For the three months ended March 31, 2023, we recorded a loss related to our equity interest in SSGT III OP of approximately $0.2 million, and received distributions in the amount of approximately $54,000.

Debt Investments

On August 9, 2022, in connection with SSGT III's acquisition of two self storage facilities, our Operating Partnership entered into a mezzanine loan agreement with a wholly-owned subsidiary of SSGT III, for up to $50.0 million (the “SSGT III Mezzanine Loan”), of which $42.0 million was funded as an initial draw at the time of closing. The SSGT III Mezzanine Loan requires a commitment fee equal to 1.0% of the amount drawn at closing of the SSGT III Mezzanine Loan, and subsequent draws.

The SSGT III Mezzanine Loan was amended on December 20, 2022, such amendment increased the principal borrowing amount from up to $50 million to $77 million. Pursuant to this amendment, the interest rate on the SSGT III Mezzanine Loan became a variable rate equal to SOFR plus 3.0%. Payments on the SSGT III Mezzanine Loan are interest only, and it had an initial maturity date of August 9, 2023. SSGT III extended the ultimate maturity date of the SSGT III Mezzanine Loan until August 9, 2024, as such, the interest rate of the SSGT III Mezzanine Loan increased to SOFR plus 4.0% per annum, pursuant to the December 20, 2022 amendment. The SSGT III Mezzanine Loan may be prepaid in whole or in part at any time without fees or penalty and, in certain circumstances, equity interests securing the SSGT III Mezzanine Loan may be released from the pledge of collateral. The SSGT III Mezzanine Loan is secured by a pledge of the equity interest in the indirect, wholly-owned subsidiaries of SSGT III, that owned seven operating self storage facilities as of March 31, 2024. SSGT III OP, also serves as a non-recourse guarantor. In August 2023, SSGT III exercised the extension option, such that the SSGT III Mezzanine Loan is due in full on August 9, 2024.

As of March 31, 2024 and December 31, 2023, a wholly-owned subsidiary of SSGT III OP had $1.0 million and $4.0 million, respectively, borrowed and outstanding pursuant to the SSGT III Mezzanine Loan.

The following table summarizes the carrying value of our investments in and advances to SSGT III OP as of March 31, 2024 and December 31, 2023:
 

Receivables:	As of March 31, 2024		As of December 31, 2023
Receivables and advances due	$	1,756,522	$	628,710
Debt:
SSGT III Mezzanine Loan(1)		1,000,000		4,000,000
Equity:
SSGT III OP Units and   SSGT III SLP		3,421,526		3,661,978
Total investments in and advances	$	6,178,048	$	8,290,688

(1) As of March 31, 2024 and December 31, 2023, $1.5 million was available to be drawn on the SSGT III Mezzanine Loan. On May 2, 2024, SSGT III paid down the remaining $1.0 million outstanding on the SSGT III Mezzanine Loan.

48

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

Administrative Services Agreement

On June 28, 2019, we along with our Operating Partnership, SmartStop TRS and SmartStop Storage Advisors, LLC (collectively, the “Company Parties”) entered into an Administrative Services Agreement with SAM (the “Administrative Services Agreement”), which, as amended, requires that the Company Parties will be reimbursed for providing certain operational and administrative services to SAM which may include, without limitation, accounting and financial support, IT support, HR support, advisory services and operations support, and administrative support and other miscellaneous reimbursements as set forth in the Administrative Services Agreement and SAM will be reimbursed for providing certain operational and administrative services to the Company Parties which may include, without limitation, due diligence support, marketing, fulfillment and offering support, events support, insurance support, and administrative and facilities support. SAM and the Company Parties will reimburse one another based on the actual costs of providing their respective services. Additionally, SAM paid the Company Parties an allocation of rent and overhead for the portion of the Ladera Office that it occupied until October 2022, at which time SAM relocated to a separate office. Such agreement had an initial term of three years, with automatic one-year renewals, and is subject to certain adjustments as defined in the agreement.

For the three months ended March 31, 2024 and 2023 we incurred reimbursements payable to SAM under the Administrative Services Agreement of approximately $142,000 and $65,000, respectively, which were recorded in the Managed REIT Platform expenses line item in our consolidated statements of operations.

We recorded reimbursements from SAM of approximately $53,000 and $40,000 during the three ended March 31, 2024 and 2023, respectively, related to services provided to SAM, which were included in Managed REIT Platform revenue in our consolidated statements of operations.

As of March 31, 2024 and December 31, 2023, a receivable of approximately $18,000 was due from SAM and a payable of approximately $11,000, was due to SAM, respectively, related to the Administrative Services Agreement.

Note 11. Equity Based Compensation

Prior to June 15, 2022, we issued equity based compensation pursuant to the Company’s Employee and Director Long-Term Incentive Plan (the “Prior Plan”). On June 15, 2022, our stockholders approved the 2022 Long-Term Incentive Plan (the “Plan”) and we no longer issue equity under the Prior Plan. Pursuant to the Plan, we are able to issue various forms of equity based compensation. Through March 31, 2024, we have generally issued equity based awards in two forms: (1) restricted stock awards consisting of shares of our common stock and (2) long-term incentive plan units of our Operating Partnership (“LTIP Units”).

Through March 2020, we had only issued restricted stock, which shares are subject to a time based vesting period. In April 2020, the Compensation Committee of the board of directors approved awards for our executive officers, which include (1) performance based awards, and (2) time based awards. For both such type of awards, the recipient can choose either LTIP Units or restricted stock consisting of shares of our common stock. Effective June 2022, certain other recipients of time based awards were also allowed to choose either LTIP Units or restricted stock shares of our common stock.

The fair value of restricted stock is determined on the grant date based on an estimated value per share. The estimated fair value of our restricted stock was determined with the assistance of third party valuation specialists primarily based on an income approach to value our properties as well as the Managed REIT Platform, less the estimated fair value of our debt and other liabilities. The key assumptions used in estimating the fair value of our restricted stock were projected annual net operating income, projected growth rates, discount rates, capitalization rates and an illiquidity discount. The fair value of LTIP Units were further adjusted by applying an additional discount as the LTIP Units are not initially economically equivalent to our restricted stock. For performance based awards, a fair value was determined for each performance ranking scenario, with stock compensation expense recorded using the fair value of the scenario determined to be probable of achievement as of the end of the respective period.

Time Based Awards

We have granted various time based awards, which generally vest ratably over either one, three, or four years commencing in the year of grant, subject to the recipient’s continued employment or service through the applicable vesting date. All grants of time based restricted stock have limitations on transferability during the vesting period, and the grantee does not have the ability to vote any unvested shares. Transferability during the vesting period depends upon when the grant was made, as follows (i) with respect to grants of time based restricted stock made prior to April 2020, the restriction on

49

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

transfers applies to the entirety of the grant, regardless of vesting, and (ii) with respect to grants of time based restricted stock made in or subsequent to April 2020, the restriction on transfer applies only to the unvested portion of the restricted stock.

With respect to grants of time based LTIP Units, distributions accrue based on the effective date of each grant, and are payable as distributions are paid on our Class A Shares without regard to whether the underlying awards have vested. With respect to time based restricted stock issued to our board of directors in or after June 2022, distributions accrue as of the effective date of each grant and are payable as distributions are paid on our Class A Shares without regard to whether the underlying awards have vested. With respect to all other existing time based restricted stock, distributions accrue on non-vested shares granted and are paid when the underlying restricted shares vest.

Holders of time based LTIP Units receive allocations of profits and losses with respect to the LTIP Units as of the effective date, distributions from the effective date in an amount equivalent to the distributions declared and paid on our Class A Shares, and the same voting rights as holders of common units, voting as a class with each LTIP Unit holder having one vote per LTIP Unit held. Prior to vesting, time based LTIP Units generally may not be transferred, other than by laws of descent and distribution.

The following table summarizes the activity related to our time based awards:

	Restricted Stock					LTIP Units
Time Based Award Grants	Shares			Weighted-Average Grant-Date Fair Value		Units			Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2022		145,850		$	11.50		290,641		$	11.16
Granted		43,720			14.30		315,915			13.30
Vested		(96,295	)		10.86		(226,271	)		11.58
Forfeited		(7,960	)		13.92		—			—
Unvested at December 31, 2023		85,315			13.44		380,285			12.69
Granted		40,293			14.30		298,247			13.53
Vested		(41,726	)		12.58		—			—
Forfeited		(3,155	)		14.27		—			—
Unvested at March 31, 2024		80,727		$	14.28		678,532		$	13.06

Performance Based Awards

With respect to performance based awards, the number of shares of restricted stock granted as of the grant date equaled 100% of the targeted award, whereas the number of LTIP Units granted as of the grant date equaled 200% of the targeted amount of the award. The targeted award for each executive was determined and approved by the Compensation Committee of our board of directors. The actual number of shares of restricted stock or LTIP Units, as applicable, to be issued upon vesting may range from 0% to 200% of the targeted award, such determination being based upon the results of the performance measure. Performance based awards vest based upon our performance as ranked amongst a peer group of self storage related companies. This comparison will be conducted using a performance measure of average annual same-store revenue growth, analyzed over a three-year period. Earned awards for the 2022, 2023 and 2024 grants will vest, as applicable, no later than March 31, 2025, 2026, and 2027, respectively.

Recipients of performance based restricted stock accrue distributions during the performance period, and such distributions will only be payable on the date that any such shares of restricted stock vest, based upon the performance level attained. Recipients of performance based LTIP Units are issued LTIP Units at 200% of the targeted award and are entitled to receive distributions and allocations of profits and losses with respect to the performance based LTIP Units as of the effective date of each award in an amount equal to 10% of the distributions and allocations available to such LTIP Units, until the Distribution Participation Date (as defined in the Operating Partnership Agreement). The remaining 90% of distributions will accrue and will be payable on the Distribution Participation Date based upon the performance level attained and number of performance based LTIP Units that vest. Following the Distribution Participation Date, recipients will be entitled to receive the full amount of distributions and allocations of profits and losses with respect to the vested performance-based LTIP Units, such amount being equivalent to distributions declared and paid on our Class A Shares.

50

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

The following table summarizes our activity related to our performance based awards:

	Restricted Stock						LTIP Units
Performance Based Award Grants	Shares				Weighted-Average Grant-Date Fair Value		Units			Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2022		5,752			$	9.78		380,536		$	10.39
Granted		5,752		(1)		9.78		271,199			13.30
Vested		(11,504	)			9.78		(118,720	)		9.09
Forfeited		—				—		—			—
Unvested at December 31, 2023		—				—		533,015			12.16
Granted		—				—		270,096			13.55
Vested		—				—		(148,387	)		9.30
Forfeited		—				—		—			—
Unvested at March 31, 2024		—			$	—		654,724		$	13.38

(1) On March 2, 2023 the Compensation Committee of the board of directors approved the vesting of the 2020 performance grant at 200% of the targeted award. Accordingly, individuals who elected to receive performance based restricted stock were issued and immediately vested additional shares to equal 200% of their targeted award.

Holders of performance based restricted stock do not have any rights as a stockholder with respect to the unvested portion of such restricted stock awards. Prior to vesting, shares of performance based restricted stock generally may not be transferred, other than by laws of descent and distribution.

Holders of performance based LTIP Units have the same voting rights as holders of common units, voting as a class with each LTIP Unit holder having one vote per LTIP Unit held. Prior to vesting, performance based LTIP Units generally may not be transferred, other than by laws of descent and distribution.

LTIP Units are designed to qualify as “profits interests” in the Operating Partnership for federal income tax purposes. The profits interests’ characteristics of the LTIP Units mean that initially they will not be treated as economically equivalent in value to a common unit and the issuance of LTIP Units will not be a taxable event to the Operating Partnership or the recipient. If and when certain events occur pursuant to applicable tax regulations and in accordance with the Operating Partnership Agreement, LTIP Units may become economically equivalent to common units of limited partnership interest of our Operating Partnership on a one-for-one basis.

As of March 31, 2024, 8,759,182 shares of stock were available for issuance under the Plan.

We recorded approximately $1.1 million of equity based compensation expense in general and administrative expense during the three months ended March 31, 2024, compared to approximately $1.1 million during the three months ended March 31, 2023. We recorded approximately $0.1 million of equity based compensation expense in property operating expenses and Managed REIT Platform expenses, within our consolidated statements of operations for the three months ended March 31, 2024, compared to approximately $0.1 million during the three months ended March 31, 2023.

As of March 31, 2024, there was approximately $12.0 million of total unrecognized compensation expense related to non-vested equity awards, with such cost expected to be recognized over a weighted-average period of approximately 2.7 years.

As of December 31, 2023, there was approximately $6.8 million of total unrecognized compensation expense related to non-vested equity awards, with such cost expected to be recognized over a weighted-average period of approximately 2.2 years.

In March 2024, the compensation committee of our board of directors approved the 2024 executive compensation terms for our executives, which included (1) performance-based equity grants in the form of either, at the election of the executive, restricted stock awards or LTIP Units, and (2) time-based equity grants in the form of either, at the election of the executive, restricted stock awards or LTIP Units.

51

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

In March 2024, an aggregate of 270,096 LTIP Units were issued to our executive officers in connection with performance-based equity grants. With respect to performance-based equity grants, the number of LTIP Units granted as of the grant date was equal 200% of the targeted award. These are non-vested grants which shall vest based on ranges from a threshold of 0% to a maximum of 200% of the targeted equity award set for each executive by the compensation committee, with such percentage being determined based upon our ranking as compared to a peer group of publicly traded self storage REITs in terms of the average same-store revenue growth, analyzed over a three-year period.

Similarly, in March 2024, an aggregate of 274,183 LTIP Units were issued to our executive officers in connection with time-based equity grants. These are non-vested grants which shall vest ratably over four years, with the first tranche vesting on December 31, 2024, subject to the recipient’s continued employment through the applicable vesting date.

Note 12. Commitments and Contingencies

Distribution Reinvestment Plan

We have adopted an amended and restated distribution reinvestment plan (our “DRP”) that allows both our Class A and Class T stockholders to have distributions otherwise distributable to them invested in additional shares of our Class A and Class T Shares, respectively. Under our DRP, the board of directors may amend, modify, suspend or terminate our plan for any reason upon 10 days’ written notice to the participants. The purchase price per share pursuant to our DRP is equivalent to the estimated value per share approved by our board of directors and in effect on the date of purchase of shares under the plan. In conjunction with the board of directors’ declaration of a new estimated value per share of our common stock on January 15, 2024, any shares sold pursuant to our distribution reinvestment plan will be sold at our new estimated value per share of $15.25 per Class A Share and Class T Share. Please see the section below titled “Suspension and Partial Resumption of DRP and SRP” for additional information. As of March 31, 2024, we had sold approximately 8.5 million Class A Shares and approximately 1.2 million Class T Shares through our DRP Offering.

Share Redemption Program

As described in “Note 2 – Summary of Significant Accounting Policies – Redeemable Common Stock,” we have an SRP. Please refer to that section for additional details. Pursuant to the SRP, we may redeem the shares of stock presented for redemption for cash to the extent that such requests comply with the below terms of our SRP and we have sufficient funds available to fund such redemption. All redemption requests received, and not withdrawn, on or prior to the last day of the applicable quarter are processed on the last business day of the month following the end of the quarter in which the redemption requests were received.

Our board of directors may amend, suspend or terminate the SRP with 30 days’ notice to our stockholders. We may provide this notice by including such information in a Current Report on Form 8-K or in our annual or quarterly reports, all publicly filed with the SEC, or by a separate mailing to our stockholders.

On August 20, 2020, our board of directors amended the terms of the SRP to revise the redemption price per share for all redemptions under the SRP to be equal to the most recently published estimated net asset value per share of the applicable share class (the “SRP Amendment”). Prior to the SRP Amendment, the redemption amount was the lesser of the amount the stockholders paid for their shares or the price per share in the current offering. On January 15, 2024, we declared a new estimated net asset value per share and the redemption price under our SRP immediately changed to $15.25 (our current estimated net asset value per share).

There are several limitations in addition to those noted above on our ability to redeem shares under the SRP including, but not limited to:

•During any calendar year, we will not redeem in excess of 5% of the weighted-average number of shares outstanding during the prior calendar year.

52

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

•The amount available for redemption is limited to the proceeds from the sale of shares pursuant to our distribution reinvestment plan, less any prior redemptions.

•We have no obligation to redeem shares if the redemption would violate the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency.

During the three months ended March 31, 2024, approximately 0.6 million shares or $8.6 million of requests that met the eligibility criteria were requested to be redeemed; approximately $8.4 million of which were included in accounts payable and accrued liabilities within our consolidated balance sheets as of March 31, 2024 and fulfilled in May 2024.

During the year ended December 31, 2023, approximately 1.5 million shares or $22.9 million of requests that met the eligibility criteria were requested to be redeemed; approximately $19.0 million of which were fulfilled during the year ended December 31, 2023, and approximately $3.9 million of which were included in accounts payable and accrued liabilities within our consolidated balance sheets as of December 31, 2023 and fulfilled in January 2024.

Please see the section below titled “Suspension and Partial Resumption of DRP and SRP” for additional information.

Suspension and Partial Resumption of DRP and SRP

In connection with a review of liquidity alternatives by the board of directors, on March 7, 2022, the board of directors approved the full suspension of our DRP and SRP. However, on March 16, 2023, the DRP was fully reinstated and the SRP was partially reinstated to allow for redemptions solely sought in connection with a stockholder’s death, “qualifying disability” (as that term is defined in the SRP), confinement to a long-term care facility, or other exigent circumstances. All other redemptions remain suspended at this time. All previously received and reconfirmed redemption requests, along with such requests received during the three months ended March 31, 2023 that correctly met the eligibility criteria above, were redeemed in April 2023, in accordance with the SRP.

On May 1, 2024, the board of directors approved an additional limitation to our SRP such that any redemption request made in connection with a stockholder’s death be made within one year of the date of such death in order to be honored by us. Please see Note 14 – Subsequent Events of the Notes to the Consolidated Financial Statements contained in this report.

For those stockholders that had elected to participate in the DRP prior to its suspension in March 2022, distributions automatically reverted back to being reinvested through the DRP effective for the month of March 2023 (to the extent we are qualified to offer shares pursuant to the DRP in accordance with applicable state laws).

Operating Partnership Redemption Rights

Generally, 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. 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.

Additionally, the Class A-1 Units issued in connection with the Self Administration Transaction are subject to the general restrictions on transfer contained in the Operating Partnership Agreement. The Class A-1 Units are otherwise entitled to all rights and duties of the Class A limited partnership units in the Operating Partnership, including cash distributions and the allocation of any profits or losses in the Operating Partnership.

Other Contingencies and Commitments

We have severance arrangements which cover certain members of our management team; these provide for severance payments upon certain events, including after a change of control.

See Note 10 – Related Party Transactions related to our debt investments in the Managed REITs and our Sponsor Funding Agreement with SST VI for more information about our contingent obligations under these agreements.

53

SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Unaudited)

As of March 31, 2024, pursuant to various contractual relationships, we are required to make other non-cancellable payments in the amounts of approximately $2.6 million during the year ending December 31, 2024.

From time to time, we are party to legal, regulatory and other proceedings that arise in the ordinary course of our business. In accordance with applicable accounting guidance, management accrues an estimated liability when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. For such proceedings, we are not aware of any for which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition.

In connection with a fire that occurred at one of our properties, a neighboring property was also damaged. In December 2023, we, along with our insurance carrier, received a subrogation demand letter from an attorney representing the insurance company for the neighboring property owner for approximately $8.3 million alleging that we were responsible for their damages. We intend to vigorously defend this matter. We believe we have adequate insurance coverage for this matter.

Note 13. Declaration of Distributions

On March 28, 2024, our board of directors declared a distribution rate for the month of April 2024 of approximately $0.0492 per share on the outstanding shares of common stock payable to Class A and Class T stockholders of record of such shares as shown on our books at the close of business on April 30, 2024. Such distributions payable to each stockholder of record will be paid the following month.

On April 19, 2024, our board of directors declared a distribution rate for the month of May 2024 of approximately $0.0508 per share on the outstanding shares of common stock payable to Class A and Class T stockholders of record of such shares as shown on our books at the close of business on May 31, 2024. Such distributions payable to each stockholder of record will be paid the following month.

Note 14. Subsequent Events

In addition to the subsequent events discussed elsewhere in the notes to the financial statements, the following events occurred subsequent to March 31, 2024:

Self Storage Acquisition

On April 10, 2024, we purchased a self storage facility located in Colorado Springs, Colorado (the "Colorado Springs II Property"). The purchase price for the Colorado Springs II Property was approximately $10.5 million, plus closing costs. Upon acquisition, the property was approximately 86% occupied. The acquisition was funded with proceeds from the 2024 Credit Facility. This property was subsequently added to the borrowing base of the 2024 Credit Facility.

SRP Limitation

On May 1, 2024, our board of directors adopted a limitation to our SRP such that any redemption request made under the SRP in connection with a stockholder’s death be made within one year of the date of such death in order to be honored by us. This limitation takes effect on June 1, 2024, which is the requisite 30 days’ notice to our stockholders. We intend to honor any redemption request made in connection with a stockholder’s death that are submitted prior to such effective date, even if the redemption request is made after the one-year anniversary of such stockholder’s death so long as such redemption request otherwise complies with the terms of the SRP.

Hedging Activity

On May 1, 2024, to hedge our exposure to potentially rising interest rates, we purchased three SOFR interest rate caps for a total of approximately $8.2 million. The table below presents the terms of these three SOFR interest rate caps:

Notional		Cap Rate			Effective Date	Maturity Date
$	100,000,000		1.50	%	May 1, 2024	May 1, 2025
$	100,000,000		2.00	%	July 1, 2024	July 1, 2025
$	200,000,000		5.50	%	December 2, 2024	December 1, 2026

54

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

The following discussion and analysis should be read in conjunction with our consolidated financial data 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 consolidated 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, 2023. See also “Cautionary Note Regarding Forward-Looking Statements” preceding Part I.

Overview

We are a self-managed and fully-integrated self storage real estate investment trust (“REIT”). Our year end is December 31. As used in this report, “we,” “us,” “our,” and “Company” refer to SmartStop Self Storage REIT, Inc. and each of our subsidiaries.

We focus on the acquisition, ownership, and operation of self storage properties located primarily within the top 100 metropolitan statistical areas, or MSAs, throughout the United States and Canada. Based on the Inside Self Storage Top-Operators List ranking for 2023, and after accounting for recent market transactions, we are the 10th largest owner and operator of self storage properties in the United States based on number of properties, units, and rentable square footage. As of March 31, 2024, our wholly-owned portfolio consisted of 154 operating self storage properties diversified across 19 states and Canada comprising approximately 104,000 units and 11.9 million net rentable square feet. Additionally, we owned a 50% equity interest in eleven unconsolidated real estate ventures located in Canada, which included nine operating self storage properties. Further, through our Managed REIT Platform (as defined below), we serve as the sponsor of Strategic Storage Trust VI, Inc., a publicly-registered non-traded REIT (“SST VI”), and Strategic Storage Growth Trust III, Inc., a private REIT (“SSGT III” and together with SST VI, the “Managed REITs”), and manage one additional self storage property, all of which pay us fees to manage these programs and manage their 32 operating self storage properties (as of March 31, 2024).

Our primary business model is focused on owning and operating high quality self storage properties in high growth markets in the United States and Canada. We finance our portfolio through a diverse capital strategy which includes cash generated from operations, borrowings under our syndicated revolving line of credit, secured debt financing, equity offerings and joint ventures. Our business model is designed to maximize cash flow available for distribution to our stockholders and to achieve sustainable long-term growth in cash flow in order to maximize long-term stockholder value at acceptable levels of risk. We execute our organic growth strategy by pursuing revenue-optimizing and expense-minimizing opportunities in the operations of our existing portfolio. We execute our external growth strategy by developing, redeveloping, acquiring and managing self storage facilities in the United States and Canada both internally and through our Managed REITs, and we look to acquire properties that are physically stabilized, recently developed, in various stages of lease up or at certificate of occupancy. We seek to acquire undermanaged facilities that are not operated by institutional operators, where we can implement our proprietary management and technology to maximize net operating income.

As discussed herein, we, through our subsidiaries, currently serve as the sponsor of SST VI and SSGT III. We also served as the sponsor of Strategic Storage Trust IV, Inc., a public non-traded REIT (“SST IV”), through March 17, 2021, and Strategic Storage Growth Trust II, Inc., a private REIT (“SSGT II”), through June 1, 2022. Prior to March 17, 2021 and June 1, 2022, SST IV and SSGT II, respectively, were also included in the “Managed REITs.” We operate the properties owned by the Managed REITs, which together with one other self storage property we manage consist of, as of March 31, 2024, 32 operating properties and approximately 25,400 units and approximately 2.8 million rentable square feet. In addition, we have the internal capability to originate, structure and manage additional self storage investment programs (the “Managed REIT Platform”) which would be sponsored by SmartStop REIT Advisors, LLC (“SRA”), our indirect subsidiary. We generate asset management fees, property management fees, acquisition fees, and other fees and also receive substantially all of the tenant protection program revenue earned by our Managed REITs. For the property management and advisory services that we provide, we are reimbursed for certain expenses that otherwise helps to offset our net operating expense burden.

55

As of March 31, 2024, our wholly-owned operating self storage portfolio was comprised as follows:

State	No. of Properties		Units(1)		Sq. Ft. (net)(2)		% of Total Rentable Sq. Ft.			Physical Occupancy %(3)			Rental Income %(4)
Alabama		1		1,090		163,300		1.4	%		92.7	%		0.7	%
Arizona		4		3,130		329,100		2.8	%		91.1	%		2.5	%
California		30		19,985		2,108,400		17.7	%		88.9	%		20.4	%
Colorado		8		4,550		495,585		4.2	%		92.0	%		3.6	%
Florida		26		19,870		2,367,500		19.9	%		92.1	%		22.5	%
Illinois		6		3,785		432,450		3.6	%		91.5	%		3.1	%
Indiana		2		1,030		112,700		0.9	%		92.3	%		0.6	%
Massachusetts		1		840		93,200		0.8	%		89.8	%		1.9	%
Maryland		2		1,610		169,500		1.4	%		91.1	%		1.3	%
Michigan		4		2,220		266,100		2.2	%		92.6	%		1.8	%
New Jersey		2		2,350		205,100		1.7	%		87.4	%		1.7	%
Nevada		9		7,160		865,000		7.3	%		93.9	%		6.7	%
North Carolina		19		9,190		1,204,900		10.1	%		92.5	%		8.1	%
Ohio		5		2,310		256,000		2.2	%		94.0	%		1.5	%
South Carolina		3		1,940		246,000		2.1	%		91.8	%		1.6	%
Texas		12		6,960		919,300		7.8	%		93.7	%		6.9	%
Virginia		1		830		71,100		0.6	%		91.7	%		0.8	%
Washington		5		3,427		390,545		3.3	%		92.4	%		3.4	%
Wisconsin		1		780		83,400		0.7	%		91.9	%		0.6	%
Ontario, Canada		13		10,610		1,110,655		9.3	%		93.3	%		10.3	%
Total		154		103,667		11,889,835		100	%		91.8	%		100	%

(1)Includes all rentable units, consisting of storage units and parking (approximately 3,350 units).

(2)Includes all rentable square feet, consisting of storage units and parking (approximately 1,017,000 square feet).

(3)Represents the occupied square feet of all facilities in a state or province divided by total rentable square feet of all the facilities in such state or area as of March 31, 2024.

(4)Represents rental income (excludes administrative fees, late fees, and other ancillary income) for all facilities we owned in a state or province divided by our total rental income for the month ended March 31, 2024.

Additionally, we own our office located at 10 Terrace Rd, Ladera Ranch, California (the “Ladera Office”) which houses our corporate headquarters.

56

Critical Accounting Policies and Estimates

We have established accounting policies which conform to generally accepted accounting principles (“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 consolidated 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 acquisition valuation; the evaluation of whether any of our long-lived assets have been impaired; the valuation of goodwill and related impairment considerations, the valuation of our trademarks and related impairment considerations, 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 supplements, but does not supplant the description of our significant accounting policies, as contained in Note 2 – Summary of Significant Accounting Policies 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 Acquisition Valuation

We account for asset acquisitions in accordance with GAAP which requires that we allocate the purchase price of a property to the tangible and intangible assets acquired and the liabilities assumed based on their relative fair values. This guidance requires us to make significant estimates and assumptions, including fair value estimates, which requires the use of significant unobservable inputs as of the acquisition date.

The value of the tangible assets, consisting of land and buildings is determined as if vacant. 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. We also consider whether in-place, market leases represent an intangible asset. 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.

Our allocations of purchase prices are based on certain significant estimates and assumptions, variations in such estimates and assumptions could result in a materially different presentation of the consolidated financial statements or materially different amounts being reported in the consolidated financial statements.

Real Property Assets Valuation

We evaluate our real property assets for impairment based on events and changes in circumstances that may arise in the future and that may impact the carrying amounts of such 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, such as, but not limited to, comparative sales, estimated cash flow, and other similar valuation techniques. Based on this evaluation, if the expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the real property asset and recognize an impairment loss. Our evaluation of the impairment of real property 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.

57

Intangible Assets Valuation

In connection with the acquisition of the self storage advisory, asset management and property management businesses and certain joint venture interests of Strategic Asset Management I, LLC (f/k/a SmartStop Asset Management, LLC), our former sponsor (“SAM”), along with certain other assets of SAM (collectively, the “Self Administration Transaction”), we allocated a portion of the consideration to the contracts that we acquired related to the Managed REITs and the customer relationships related to our tenant insurance, tenant protection plans or similar programs (the “Tenant Protection Programs”). For these intangibles, we are amortizing such amounts on a straight-line basis over the estimated benefit period of the contracts and customer relationships. We evaluate these intangible assets for impairment when an event occurs or circumstances change that indicate the carrying value may not be recoverable. In such an event, an impairment charge is recognized and the intangible asset is marked down to its fair value.

Goodwill Valuation

Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible assets and other intangible assets acquired. Goodwill is allocated to various reporting units, as applicable, and is not amortized. We perform an annual qualitative impairment assessment as of December 31 for goodwill; between annual tests we evaluate the recoverability of goodwill whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be fully recoverable. If circumstances indicate the carrying amount may not be fully recoverable, we perform a quantitative impairment test of goodwill to compare the fair value of each reporting unit to its respective carrying amount. If the carrying amount of goodwill exceeds its fair value, an impairment charge will be recognized. No impairment charges were recognized during the three months ended March 31, 2024 and 2023.

Trademarks Valuation

Trademarks are based on the value of our brands. Trademarks are valued using the relief from royalty method, which presumes that without ownership of such trademarks, we would have to make a stream of payments to a brand or franchise owner in return for the right to use their name. By virtue of this asset, we avoid any such payments and record the related intangible value of our ownership of the brand name.

We qualitatively evaluate whether any triggering events or changes in circumstances have occurred subsequent to our annual impairment test that would indicate an impairment condition may exist. If any change in circumstance or triggering event occurs, and results in a significant impact to our revenue and profitability projections, or any significant assumption in our valuation methods is adversely impacted, the impact could result in a material impairment charge in the future.

Estimated Useful Lives of Real Property 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 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 consolidated 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 Considerations

Current accounting guidance provides a framework for identifying a variable interest entity (“VIE”) and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of a 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.

58

We evaluate the consolidation of our investments in VIE's in accordance with relevant accounting guidance. This evaluation requires us to determine whether we have a controlling interest in a VIE through a means other than voting rights, and, if so, such VIE may be required to be consolidated in our financial statements. Our evaluation of our VIE's 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 VIE's included in our consolidated financial statements may vary based on the estimates and assumptions we use.

REIT Qualification

We made an election under Section 856(c) of the Internal Revenue Code of 1986, as amended (the “Code”) to be taxed as a REIT under the Code, commencing with the taxable year ended December 31, 2014. By qualifying as a REIT for federal income tax purposes, we generally will not be subject to U.S. 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 U.S. 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 operate in a manner that will enable us to continue to qualify for treatment as a REIT for federal income tax purposes, and we intend to continue to operate as to remain qualified as a REIT for federal income tax purposes.

Current Market and Economic Conditions

Our rental revenue and operating results depend significantly on the demand for self storage space. Since the beginning of the COVID-19 pandemic in late March 2020, the broader shift of people working from home, elevated migration patterns and strength in the housing market helped drive growth in self storage demand, which generally contributed to our results since the onset of COVID-19, and through calendar year 2022. In addition to the sector's numerous historical demand drivers, one demand driver that developed and has continued as a result of the COVID-19 pandemic is the trend towards working from home, or a hybrid work environment.

While the work from home environment remains elevated over pre-COVID-19 pandemic levels, this trend began to wane in 2023, which we believe has led to elevated move-outs. As a result, occupancy, same-store growth and overall results have been normalizing and are expected to normalize further over the coming quarters as the comparable periods change.

Further, the broader economy has been experiencing elevated levels of inflation, higher interest rates, tightening monetary and fiscal policies and a slowdown in home sales. This could result in less discretionary spending, weakening consumer balance sheets and reduced demand for self storage. Additionally, a prolonged period of elevated inflation and/or higher interest rates could result in a further contraction of self storage demand. However, demand for the self storage sector is dynamic with drivers that function in a multitude of economic environments, both cyclically and counter-cyclically. Demand for self storage tends to be needs-based, with numerous factors that lead customers to renting and maintaining storage units.

Certain property operating expenses have experienced elevated pressures to date, namely property insurance, property taxes and payroll have seen above average increases, primarily due to inflation and natural disasters. We have experienced a year-over-year decrease in gross margins as a result for the full year 2023 and the first quarter of 2024.

In 2022, the Federal Reserve began increasing its targeted range for the federal funds rate, leading to increased interest rates. This approach to monetary policy was mirrored by other central banks across the world, to similar effect. We currently have fixed or capped interest rates of varying durations for the majority of our loans, either directly or indirectly through our use of interest rate hedges. The rise in overall interest rates has caused an increase in our variable rate borrowing costs and our overall cost of capital, resulting in an increase in net interest expense. Capitalization rates on acquisitions have not increased at the same magnitude as interest rates. These factors may limit our ability make accretive acquisitions of self storage properties, negatively impact our profitability, and affect our ability to comply with certain financial covenants.

Results of Operations

Overview

We derive revenues principally from: (i) rents received from our self storage tenant leases; (ii) fees generated from our Managed REITs; (iii) our Tenant Protection Programs; and (iv) sales of packing and storage-related supplies at our storage facilities. Therefore, our operating results depend significantly on our ability to retain our existing tenants and lease our

59

available self storage units to new tenants, while maintaining and, where possible, increasing the prices for our self storage units.

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, 2024 and 2023, we wholly-owned 154 and 153 operating self storage facilities, respectively. Our operating results for the three months ended March 31, 2024 included full quarter results for 154 self storage facilities. Our operating results for the three months ended March 31, 2023 included full quarter results for 153 self storage facilities. Operating results in future periods will depend on the results of operations of these properties and of the real estate properties that we acquire in the future.

Comparison of the three months ended March 31, 2024 and 2023

Total Self Storage Revenues

Total self storage related revenues for the three months ended March 31, 2024 and 2023 were approximately $52.7 million and $53.5 million, respectively. The decrease in total self storage revenues of approximately $0.8 million, or approximately 1.5%, is primarily attributable to a decrease in same-store revenues of approximately $0.8 million.

We expect self storage revenues to primarily fluctuate based on the performance of our same-store pool, which will be influenced by the overall economic environment and increases in self storage supply, amongst other things.

Managed REIT Platform Revenues

Managed REIT Platform revenues for the three months ended March 31, 2024 and 2023 were approximately $2.7 million and $2.3 million, respectively. The increase in Managed REIT Platform revenues of approximately $0.5 million is primarily attributable to increased property management and asset management fees which are the result of increased assets under management. Such increased revenues were partially offset by reduced acquisition fees, and the effect of sponsor funding reductions recorded. We expect Managed REIT Platform Revenue to fluctuate commensurate with our Managed REITs' increase in operations and assets under management, as well as reductions to such revenue in connection with the Sponsor Funding Agreement as SST VI continues to sell shares in its public offering.

Reimbursable Costs from Managed REITs

Reimbursable costs from Managed REITs for the three months ended March 31, 2024 and 2023 were approximately $1.6 million and $1.4 million, respectively. Such revenues consist of costs incurred by us as we provide property management and advisory services to the Managed REITs, which are reimbursed by the Managed REITs, pursuant to our related contracts with the Managed REITs. The increase in reimbursable costs from Managed REITs is primarily related to the growth in the Managed REITs' assets under management. We expect reimbursable costs from Managed REITs to increase in future periods as a result of additional acquisitions by our Managed REITs. We further expect reimbursable costs from Managed REITs to generally fluctuate commensurate with our Managed REITs' increase in operations as we receive reimbursement for providing such services.

Property Operating Expenses

Property operating expenses for the three months ended March 31, 2024 and 2023 were approximately $17.4 million (or 33% of self storage revenue) and $16.5 million (or 31% of self storage revenue), respectively. Property operating expenses include the costs to operate our facilities including compensation related expenses, utilities, insurance, real estate taxes, and property related marketing. The increase in property operating expenses of approximately $0.9 million is largely attributable to increased compensation related expenses, property insurance costs, and repairs and maintenance expenses. We expect property operating expenses to fluctuate commensurate with inflationary pressures and any future acquisitions.

60

Managed REIT Platform Expenses

Managed REIT Platform expenses for the three months ended March 31, 2024 and 2023 were approximately $0.9 million and $0.5 million, respectively. Such expenses primarily consisted of expenses related to non-reimbursable costs associated with the operation of the Managed REIT Platform and the Administrative Services Agreement (as discussed in Note 10 – Related Party Transactions, of the notes to consolidated financial statements contained in this report). The increase in Managed REIT Platform Expenses is primarily related to growth in the Managed REITs' assets under management. We expect Managed REIT Platform expenses to fluctuate in future periods commensurate with our level of activity related to the Managed REITs.

Reimbursable Costs from Managed REITs

Reimbursable costs from Managed REITs for the three months ended March 31, 2024 and 2023 were approximately $1.6 million and $1.4 million, respectively. Such expenses consist of costs incurred by us as we provide property management and advisory services to the Managed REITs, which are reimbursed by the Managed REITs, pursuant to our related contracts with the Managed REITs. We expect reimbursable costs from the Managed REITs to fluctuate commensurate with our Managed REITs' increase in operations as we receive reimbursement for providing such services.

General and Administrative Expenses

General and administrative expenses for the three months ended March 31, 2024 and 2023 were approximately $7.4 million and $6.5 million, respectively. Such expenses consist primarily of compensation related costs, legal expenses, accounting expenses, transfer agent fees, directors and officers’ insurance expense and board of directors related costs. During the three months ended March 31, 2024 and 2023, we recorded expenses of approximately $0.3 million and none, respectively, related to our filing of an amendment to our S-11 registration statement and related costs in pursuit of a potential offering of our common stock. The remaining increase in general and administrative expenses was primarily attributable to increased legal expenses, professional expenses, and compensation related costs incurred during the three months ended March 31, 2024. We expect general and administrative expenses to decrease as a percentage of total revenues over time.

Depreciation and Amortization Expenses

Depreciation and amortization expenses for the three months ended March 31, 2024 and 2023 were approximately $13.7 million and $15.2 million, respectively. Depreciation expense consists primarily of depreciation on the buildings and site improvements at our properties. Amortization expense consists of the amortization of our in place lease intangible assets resulting from our self storage acquisitions and amortization of certain intangible assets acquired in the Self Administration Transaction. The decrease in depreciation and amortization expense is primarily attributable to the intangible amortization expense related to our in place lease intangible assets recorded in connection with the SSGT II Merger which became fully amortized in November 2023.

Acquisition Expenses

Acquisition expenses for the three months ended March 31, 2024 and 2023 were approximately $71,000 and $31,000, respectively. These acquisition expenses were incurred prior to acquisitions becoming probable in accordance with our capitalization policy.

Equity in earnings (losses) from investments in JV Properties

Losses from our equity method investments in the JV Properties for the three months ended March 31, 2024 and 2023 were approximately $0.3 million and $0.4 million, respectively. Losses from our equity method investments in the JV Properties consists of our allocation of earnings and losses from our joint ventures with SmartCentres.

Equity in earnings (losses) from investments in Managed REITs

Losses from our equity method investments in the Managed REITs for the three months ended March 31, 2024 and 2023 were approximately $0.5 million and $0.2 million, respectively. Losses from our equity method investments in the Managed REITs consists primarily of our allocation of earnings and losses from our investments in SST VI and SSGT III.

Other, Net

Other, net for the three months ended March 31, 2024 and 2023 was approximately $0.5 million and $0.8 million of income, respectively. Other, net consists primarily of certain state tax expenses, foreign currency fluctuations, changes in

61

value related to our foreign currency hedges not designated for hedge accounting, and interest income from loans issued to our Managed REITs, and other miscellaneous items. The decrease in income of approximately $0.3 million is primarily due to less financing fee income and interest income from loans to the Managed REITs of approximately $0.3 million, along with favorable foreign currency related adjustments as compared to the same period in the prior year. These changes were partially offset by increased franchise and other tax related expenses during the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Interest Expense

Interest expense for the three months ended March 31, 2024 and 2023 was approximately $16.6 million and $14.7 million, respectively. Interest expense includes interest expense on our debt, accretion of fair market value adjustments of our debt, amortization of debt issuance costs, and the impact of our interest rate hedging derivatives. The increase of approximately $1.8 million is primarily attributable to an increase in rates on our variable rate debt. We expect interest expense to fluctuate in future periods commensurate with our future debt levels and fluctuations in interest rates.

Loss on Debt Extinguishment

Loss on debt extinguishment for the three months ended March 31, 2024 and 2023 was approximately $0.5 million, and none, respectively. Loss on debt extinguishment for the three months ended March 31, 2024 was related to certain unamortized debt issuance costs associated with the 2021 Credit Facility which were expensed in connection with the execution of the new 2024 Credit Facility. (See Note 5 – Debt, for additional information.)

Income Tax Expense

Income tax expense for the three months ended March 31, 2024 and 2023 was approximately $0.3 million and $0.3 million, respectively. Income tax consists primarily of state, federal, and Canadian income tax. We expect our income tax expense to increase in future periods primarily related to our operations in Canada.

Same-Store Facility Results - three months ended March 31, 2024 and 2023

The following table sets forth operating data for our same-store facilities (stabilized and comparable properties that have been included in the consolidated results of operations since January 1, 2023, excluding four other properties) for the three months ended March 31, 2024 and 2023. We consider the following data to be meaningful as this allows for the comparison of results without the effects of acquisition, lease up, or development activity.

	Same-Store Facilities									Non Same-Store Facilities					Total
	2024			2023			% Change			2024		2023		% Change	2024			2023			% Change
Revenue (1)	$	49,456,951		$	50,302,951			(1.7	)%	$	1,260,115	$	1,235,064	N/M	$	50,717,066		$	51,538,015			(1.6	)%
Property   operating   expenses (2)		16,419,540			15,866,265			3.5	%		870,415		609,062	N/M		17,289,955			16,475,327			4.9	%
Net operating    income	$	33,037,411		$	34,436,686			(4.1	)%	$	389,700	$	626,002	N/M	$	33,427,111		$	35,062,688			(4.7	)%
Number of    facilities		149			149						5		4			154			153
Rentable   square   feet (3)		11,457,035			11,440,030						432,800		354,700			11,889,835			11,794,730
Average   physical   occupancy (4)		92.5	%		92.9	%		(0.4	)%	N/M		N/M		N/M		91.9	%		92.6	%		(0.8	)%
Annualized   rent per   occupied   square   foot (5)		19.49			19.67			(0.9	)%	N/M		N/M		N/M		19.39			19.64			(1.2	)%

N/M Not meaningful

(1)Revenue includes rental revenue, certain ancillary revenue, administrative and late fees, and excludes Tenant Protection Program revenue.

(2)Property operating expenses excludes corporate general and administrative expenses, interest expense, depreciation, amortization expense, Tenant Protection Program related expense, and acquisition expenses.

(3)Of the total rentable square feet, parking represented approximately 1,017,000 square feet as of March 31, 2024 and 2023. On a same-store basis, for the same periods, parking represented approximately 989,000 square feet.

62

(4)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.

(5)Determined by dividing the aggregate realized rental income 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 excluded the realized rental revenue and occupied square feet related to parking herein for the purpose of calculating annualized rent per occupied square foot.

Our same-store revenue decreased by approximately $0.8 million, or approximately 1.7%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 due to lower annualized rent per occupied square foot of approximately 0.9%, as well as an approximately 0.4% decrease in average occupancy. The increase in property operating expenses is primarily attributable to compensation related expenses, property insurance, and repairs and maintenance.

The following table presents a reconciliation of net income (loss) as presented on our consolidated statements of operations to net operating income, as stated above, for the periods indicated:

	For the Three Months Ended March 31,
	2024			2023
Net income (loss)	$	(1,639,513	)	$	2,032,600
Adjusted to exclude:
Tenant Protection Program revenue(1)		(1,944,709	)		(1,929,505	)
Tenant Protection Program    related expense		100,000			58,125
Managed REIT Platform revenue		(2,734,207	)		(2,276,535	)
Managed REIT Platform expenses		851,187			549,936
General and administrative		7,426,164			6,536,626
Depreciation		13,584,398			13,272,271
Intangible amortization expense		73,065			1,919,705
Acquisition expenses		70,876			31,190
Interest expense		16,553,242			14,703,897
Other, net		(507,515	)		(750,978	)
Earnings from our equity method    investments in the JV Properties		329,092			405,111
Earnings from our equity method    investments in Managed REITs		451,562			233,025
Loss on debt extinguishment		471,166			—
Income Tax		342,303			277,220
Total net operating income	$	33,427,111		$	35,062,688

(1) Included within ancillary operating revenue within our consolidated statements of operations, approximately $1.9 million and $1.9 million of Tenant Protection Program revenue was earned at same store facilities during the three months ended March 31, 2024 and 2023, respectively, with the remaining approximately $0.1 million and $0.1 million earned at non same-store facilities during the three months ended March 31, 2024 and 2023, respectively.

63

Non-GAAP Financial Measures

Funds from Operations

Funds from operations (“FFO”), is a non-GAAP financial metric promulgated by the National Association of Real Estate Investment Trusts (NAREIT) that we believe is an appropriate supplemental measure to reflect our operating performance. We define FFO consistent with the standards established by the White Paper on FFO approved by the board of governors of NAREIT, 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 real estate related asset impairment write downs, plus depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. Additionally, gains and losses from change in control are excluded from the determination of FFO. 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.

FFO, as Adjusted

We use FFO, as adjusted, as an additional non-GAAP financial measure to evaluate our operating performance. FFO, as adjusted, provides investors with supplemental performance information that is consistent with the performance models and analysis used by management. In addition, FFO, as adjusted, is a measure used among our peer group, which includes publicly traded REITs. Further, we believe FFO, as adjusted, is useful in comparing the sustainability of our operating performance with the sustainability of the operating performance of other real estate companies.

In determining FFO, as adjusted, we make further adjustments to the NAREIT computation of FFO to exclude the effects of non-real estate related asset impairments and intangible amortization, acquisition related costs, other write-offs incurred in connection with acquisitions, contingent earnout expenses, accretion of fair value of debt adjustments, amortization of debt issuance costs, gains or losses from extinguishment of debt, adjustments of deferred tax assets and liabilities, realized and unrealized gains/losses on foreign exchange transactions, gains/losses on foreign exchange and interest rate derivatives not designated for hedge accounting, and other select non-recurring income or expense items which we believe are not indicative of our overall long-term operating performance. We exclude these items from GAAP net income (loss) to arrive at FFO, as adjusted, as they are not the primary drivers in our decision-making process and excluding these items provides investors a view of our continuing operating portfolio performance over time, which in any respective period may experience fluctuations in such acquisition, merger or other similar activities that are not of a long-term operating performance nature. FFO, as adjusted, also reflects adjustments for unconsolidated partnerships and jointly owned investments. We use FFO, as adjusted, as one measure of our operating performance when we formulate corporate goals and evaluate the effectiveness of our strategies.

Presentation of FFO and FFO, as adjusted, is intended to provide useful information to investors as they compare the operating performance of different REITs. However, not all REITs calculate FFO and FFO, as adjusted, the same way, so comparisons with other REITs may not be meaningful. Furthermore, FFO and FFO, as adjusted, are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) as an indication of our performance, as an alternative to cash flows from operations as 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 FFO, as adjusted, should be reviewed in conjunction with other measurements as an indication of our performance.

64

The following is a reconciliation of net income (loss) (attributable to common stockholders), which is the most directly comparable GAAP financial measure, to FFO and FFO, as adjusted (attributable to common stockholders), and FFO and FFO, as adjusted (attributable to common stockholders and OP unit holders) for each of the periods presented below:

	Three Months Ended March 31, 2024			Three Months Ended March 31, 2023
Net loss      (attributable to common stockholders)	$	(4,647,922	)	$	(1,389,957	)
Add:
Depreciation of real estate		13,309,061			13,056,494
Amortization of real estate related intangible assets		—			1,846,709
Depreciation and amortization of real estate and       intangible assets from unconsolidated entities		538,307			502,157
Deduct:
Adjustment for noncontrolling interests    in our Operating Partnership (1)		(1,652,942	)		(1,788,059	)
FFO (attributable to common stockholders)	$	7,546,504		$	12,227,344
Other Adjustments:
Intangible amortization expense - contracts (2)		73,065			72,996
Acquisition expenses (3)		70,876			31,190
Acquisition expenses and foreign currency   (gains) losses, net from unconsolidated entities		79,166			52,501
Accretion of fair market value of secured debt		3,230			3,230
Foreign currency and interest rate derivative    (gains) losses, net (4)		(111,067	)		384,747
Offering related expenses (5)		326,665			—
Adjustment of deferred tax assets and liabilities (2)		217,882			120,287
Sponsor funding reduction (6)		180,846			—
Amortization of debt issuance costs (2)		801,883			710,351
Net loss on extinguishment of debt (7)		471,166			—
Adjustment for noncontrolling interests    in our Operating Partnership (1)		(252,758	)		(159,592	)
FFO, as adjusted (attributable to common       stockholders) (8)	$	9,407,458		$	13,443,054
FFO (attributable to common stockholders)	$	7,546,504		$	12,227,344
Net income (loss) attributable to the noncontrolling        interests in our Operating Partnership		(208,869	)		232,943
Adjustment for noncontrolling interests    in our Operating Partnership(1)		1,652,942			1,788,059
FFO (attributable to common stockholders and     OP unit holders)	$	8,990,577		$	14,248,346
FFO, as adjusted (attributable to common stockholders)	$	9,407,458		$	13,443,054
Net income (loss) attributable to the noncontrolling    interests in our Operating Partnership		(208,869	)		232,943
Adjustment for noncontrolling interests    in our Operating Partnership(1)		1,905,700			1,947,651
FFO, as adjusted (attributable to common     stockholders and OP unit holders) (8)	$	11,104,289		$	15,623,648

(1) This represents the portion of the above stated adjustments in the calculations of FFO and FFO, as adjusted, that are attributable to our noncontrolling interests in our Operating Partnership.

(2) These items represent the amortization, accretion, or adjustment of intangible assets, debt issuance costs, or deferred tax assets and liabilities.

65

(3) This represents acquisition expenses associated with investments in real estate that were incurred prior to the acquisitions becoming probable and therefore not capitalized in accordance with our capitalization policy.

(4) This represents the mark-to-market adjustment for our derivative instruments not designated for hedge accounting and the ineffective portion of the change in fair value of derivatives recognized in earnings, as well as changes in foreign currency related to our foreign equity investments not classified as long term.

(5) Such costs relate to our filing of a registration statement on Form S-11 and our pursuit of a potential offering of our common stock. As this item is non-recurring and not a primary driver in our decision-making process, FFO is adjusted for its effect to arrive at FFO, as adjusted, as a means of determining a comparable sustainable operating performance metric.

(6) Pursuant to the Sponsor Funding Agreement, SmartStop funds certain costs of SST VI's share sales, and in return

receives Series C Units in Strategic Storage Operating Partnership VI, L.P. The excess of the funding over the value of the Series C Units received is accounted for as a reduction of Managed REIT Platform revenues from SST VI over the remaining estimated term of the management contracts with SST VI. See Note 2 – Summary of Significant Accounting Policies to the Consolidated Financial Statements. FFO is adjusted for its effect to arrive at FFO, as adjusted, as a means of determining a comparable sustainable operating performance metric.

(7) The net loss associated with the extinguishment of debt includes prepayment penalties, defeasance costs, the write-off of unamortized deferred financing fees, and other fees incurred.

(8) Our calculation of FFO, as adjusted was modified in the period ended March 31, 2024, to add back the amortization of debt issuance costs. Accordingly, the prior period has been presented here based on the current calculation, which differs from what was previously reported for such period. This modification was made to reflect what management believes is a more appropriate calculation in light of recently completed debt refinancings.

FFO, as adjusted declined compared to the same period in the prior year primarily as a result of the effects of increased interest expense on net income, and to a lesser extent, a reduction in property net operating income. The reduction was partially offset by increased fees from our Managed REITs and increased interest income from loans to our Managed REITs.

Cash Flows

A comparison of cash flows for operating, investing and financing activities for the three months ended March 31, 2024 and 2023 is as follows:

	Three Months Ended
	March 31, 2024			March 31, 2023			Change
Net cash flow provided by (used in):
Operating activities	$	14,411,055		$	15,893,944		$	(1,482,889	)
Investing activities	$	(609,415	)	$	(20,859,088	)	$	20,249,673
Financing activities	$	(20,709,557	)	$	(7,740,448	)	$	(12,969,109	)

Cash flows provided by operating activities for the three months ended March 31, 2024 and 2023 were approximately $14.4 million and $15.9 million, respectively, a decrease of approximately $1.5 million. The decrease in cash provided by our operating activities is primarily the result of a decrease of approximately $4.5 million in net income when excluding the impact of non-cash items, partially offset by less reductions to working capital as compared to the same period in the prior year.

Cash flows used in investing activities for the three months ended March 31, 2024 and 2023 were approximately $0.6 million and $20.9 million, respectively, a change of approximately $20.2 million. The reduction in cash used in investing activities primarily relates to a net change of $15.5 million in cash flows related to our investments in the Managed REITs. During the three months ended March 31, 2024, $3.0 million of cash was provided related to such investments, as compared to $12.5 million of cash outflows for the same period in the prior year. Additionally, there was approximately $2.9 million

66

less cash outflows used during the three months ended March 31, 2024 related to real estate additions as compared to the same period in the prior year.

Cash flows used in financing activities for the three months ended March 31, 2024 and 2023 were approximately $20.7 and $7.7 million, respectively, a change of approximately $13.0 million. The change in cash used in financing activities is primarily attributable to debt issuance costs of approximately $9.0 million paid during the three months ended March 31, 2024, as compared to none during the same period in the prior year. Additionally, debt borrowings, net of paydowns provided approximately $5.2 million less during the three months ended March 31, 2024 as compared to the three months ended March 31, 2023.

Liquidity and Capital Resources

Short-Term Liquidity and Capital Resources

Our liquidity needs consist primarily of our property operating expenses, general and administrative expenses, Managed REIT Platform expenses, debt service payments, capital expenditures, property acquisitions, property developments and improvements, investments in our Managed REITs, required payments pursuant to our Sponsor Funding Agreement, and distributions to our Series A Convertible Preferred stockholder, limited partners in our Operating Partnership, and our stockholders, as necessary to maintain our REIT qualification. We generally expect that we will meet our short-term liquidity requirements from the combination of existing cash balances and net cash provided from property operations and the Managed REIT Platform and further supported by our 2024 Credit Facility. Alternatively, we may issue additional secured or unsecured financing from banks or other lenders, or we may enter into various other forms of financing.

In April 2022, we received our initial investment grade credit rating of BBB- from Kroll Bond Rating Agency, Inc. In accordance with the Note Purchase Agreement, we intend to maintain a credit rating on an annual basis. This rating was reaffirmed by Kroll in April 2024.

Our 2024 Credit Facility contains a borrowing base requirement, which is impacted by treasury yields. Increases to treasury yields could negatively impact our borrowing base calculation and limit our ability to borrow pursuant to the 2024 Credit Facility. Volatility in the debt and equity markets and continued and/or further impact of rising treasury yields, interest rates, inflation and other economic events will depend on future developments, which are highly uncertain. Such events may have an impact on our current liquidity in the short-term. If such events were to occur in the short-term we would expect to take certain steps, including but not limited to refinancing certain of our current loans, and adding additional properties onto our 2024 Credit Facility. Moreover, continued uncertainty or deterioration in the debt and equity markets, or continued increases in treasury yields and interest rates, over an extended period of time, could also potentially impact our liquidity over the long-term. If such events were to occur in the long-term, we would expect to take other additional steps, including but not limited to other sources of capital such as proceeds from secured or unsecured financings from banks or other lenders, issuance of equity instruments, and additional public or private offerings.

Distribution Policy and Distributions

Preferred Stock Dividends

The shares of Series A Convertible Preferred Stock rank senior to all other shares of our capital stock, including our common stock, with respect to rights to receive dividends and to participate in distributions or payments upon any voluntary or involuntary liquidation, dissolution or winding up of the Company. Dividends payable on each share of Series A Convertible Preferred Stock will initially be equal to a rate of 6.25% per annum, which accrues daily but is payable quarterly in arrears. If the Series A Convertible Preferred Stock has not been redeemed on or prior to the fifth anniversary date of the Initial Closing (October 29, 2024), the dividend rate will increase an additional 0.75% per annum each year thereafter to a maximum of 9.0% per annum until the tenth anniversary of the Initial Closing, at which time the dividend rate shall increase 0.75% per annum each year thereafter until the Series A Convertible Preferred Stock is either converted or repurchased in full.

Common Stock Distributions

On March 28, 2024, our board of directors declared a distribution rate for the month of April 2024 of approximately $0.0492 per share on the outstanding shares of common stock payable to Class A and Class T stockholders of record of such shares as shown on our books at the close of business on April 30, 2024. Such distributions payable to each stockholder of record will be paid the following month.

67

On April 19, 2024, our board of directors declared a distribution rate for the month of May 2024 of approximately $0.0508 per share on the outstanding shares of common stock payable to Class A and Class T stockholders of record of such shares as shown on our books at the close of business on May 31, 2024. Such distributions payable to each stockholder of record will be paid the following month.

Background and History of Common Stock Distributions

Since substantially all of our operations are performed indirectly through our Operating Partnership, our ability to pay distributions depends in large part on our Operating Partnership’s ability to pay distributions to its partners, including to us. In the event we do not have enough cash from operations to fund cash distributions, we may borrow, issue additional securities or sell assets in order to fund the distributions. The terms of the Series A Convertible Preferred Stock place certain restrictions on our ability to pay distributions to our common stockholders. In general, we are prohibited from paying distributions to our common stockholders other than regular cash dividends on a basis consistent with past practice and dividends payable in shares of common stock in connection with an initial listing of such shares. Accordingly, we are presently only permitted to pay cash distributions, which may be reinvested in stock pursuant to our DRP, unless otherwise approved by the holder of the Series A Convertible Preferred Stock. Absent the foregoing restrictions, our charter allows our board of directors to authorize payments to stockholders in cash or other assets of the Company or in stock, including in stock of one class payable to holders of stock of another class.

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 or other financing sources.

Distributions are paid to our common stockholders based on the record date selected by our board of directors. Such distributions are based on monthly declaration. 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 are authorized at the discretion of our board of directors, which are directed, in substantial part, by its obligation to cause us to comply with the REIT requirements of the Code. Absent the restrictions noted above, our board of directors may increase, decrease or eliminate the distribution rate that is being paid on our common stock at any time. Distributions are made on all classes of our common stock at the same time. The funds that are available for distribution may be affected by a number of factors, including the following:

•our operating and interest expenses;

•our ability to keep our properties occupied;

•our ability to maintain or increase rental rates;

•increases to our property operating expenses

•construction defects or capital improvements;

•capital expenditures and reserves for such expenditures;

•the issuance of additional shares;

•financings and refinancings; and

•dividends with respect to the outstanding shares of our Series A Convertible Preferred Stock.

68

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

	Three Months Ended March 31, 2024				Three Months Ended March 31, 2023
Distributions paid in cash — common stockholders	$	8,806,512			$	14,684,560
Distributions paid in cash — noncontrolling interests		2,422,981				2,005,649
Distributions paid in cash — preferred stockholders		3,150,685				3,150,685
Distributions reinvested		5,694,427				—
Total distributions	$	20,074,605			$	19,840,894
Source of distributions
Cash flows provided by operations	$	14,411,055	72	%	$	15,893,944	80	%
Cash on hand		—	0	%		3,946,950	20	%
Offering proceeds from distribution    reinvestment plan		5,663,550	28	%		—	0	%
Total sources	$	20,074,605	100	%	$	19,840,894	100	%

From our inception through March 31, 2024, we paid cumulative distributions of approximately $420.2 million, of which approximately $333.2 million were paid to common stockholders, as compared to cumulative FFO (attributable to common stockholders) of approximately $127.5 million.

For the three months ended March 31, 2024, we paid distributions of approximately $20.1 million, of which approximately $14.5 million were paid to common stockholders, as compared to FFO (attributable to common stockholders) of approximately $7.5 million.

For the three months ended March 31, 2023, we paid distributions of approximately $19.8 million, of which approximately $14.7 million were paid to common stockholders, as compared to FFO (attributable to common stockholders) of approximately $12.2 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.

We must distribute to our stockholders at least 90% of our taxable income each year in order to meet the requirements for being treated as a REIT under the Code. Our directors may authorize distributions in excess of this percentage as they deem appropriate. Because we may receive income from interest or rents at various times during our fiscal year, distributions may not reflect our income earned in that particular distribution period, but may be made in anticipation of cash flow that we expect to receive during a later period and may be made in advance of actual receipt of funds in an attempt to make distributions relatively uniform. To allow for such differences in timing between the receipt of income and the payment of expenses, and the effect of required debt payments, among other things, we could be required to borrow funds from third parties on a short-term basis, issue new securities, or sell assets to meet the distribution requirements that are necessary to achieve the tax benefits associated with qualifying as a REIT. We are not prohibited from undertaking such activities by our charter, bylaws or investment policies, and we may use an unlimited amount from any source to pay our distributions. These methods of obtaining funding could affect future distributions by increasing operating costs and decreasing available cash, which could reduce the value of our stockholders’ investment in our shares. In addition, such distributions may constitute a return of investors’ capital.

We may not be able to pay distributions from our cash flows from operations, in which case distributions may be paid in part from available funds or from debt financing and pursuant to our distribution reinvestment plan. The payment of distributions from sources other than cash flows from operations 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.

69

Indebtedness

As of March 31, 2024, our net debt was approximately $1,093 million, which included approximately $521 million in fixed rate debt and approximately $576 million in variable rate debt, less approximately $0.1 million in debt discount and approximately $3.6 million in net debt issuance costs. See Note 5 – Debt, of the Notes to the Consolidated Financial Statements for more information about our indebtedness.

As of March 31, 2024, approximately $70.0 million CAD or approximately $51.7 million in USD, was outstanding on the RBC JV term Loan, and approximately $60.7 million Canadian Dollars (“CAD”) or approximately $44.8 million in USD was outstanding on the SmartCentres Financing. See Note 4 – Investments in Unconsolidated Real Estate Ventures, of the Notes to the Consolidated Financial Statements contained in this report for additional information.

Long-Term Liquidity and Capital Resources

On a long-term basis, our principal demands for funds will be for our property operating expenses, general and administrative expenses, Managed REIT Platform expenses, debt service payments, capital expenditures, property acquisitions, investments in our Managed REITs, required payments pursuant to our Sponsor Funding Agreement, and distributions to our Series A Convertible Preferred stockholder, limited partners in our Operating Partnership, and our stockholders, as necessary to maintain our REIT qualification.

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. To the extent we are not able to secure requisite financing in the form of a credit facility or other debt, we will be dependent upon proceeds from the issuance of equity securities and cash flows from operating activities in order to meet our long-term liquidity requirements and to fund our distributions.

Our material cash requirements from contractual and other obligations primarily relate to our debt obligations. The expected timing of those outstanding principal payments are shown in the table below. The information in this section should be read in conjunction with Note 5 – Debt, and Note 12 – Commitments and Contingencies, of the Notes to the Consolidated Financial Statements contained within this report.

The following table presents the future principal payments required on outstanding debt as of March 31, 2024 :

2024	$	2,787,760
2025		3,969,391
2026		94,321,605
2027		623,059,664
2028		78,272,413
2029 and thereafter		294,500,000
Total payments	$	1,096,910,833

As of March 31, 2024, pursuant to various contractual relationships, we are required to make other non-cancellable payments in the amounts of approximately $2.6 million during the year ending December 31, 2024.

As of March 31, 2024, pursuant to the SSGT III Mezzanine Loan we were potentially required to fund an additional $1.5 million in debt to SSGT III, at their option.

Through March 31, 2024, we have incurred approximately $7.5 million in connection with the Sponsor Funding Agreement, representing approximately 810,000 subordinated units. During the three months ended March 31, 2024 we incurred approximately $0.7 million, of which approximately $0.2 million was accrued as a payable pursuant to the Sponsor Funding Agreement.

If SST VI were to sell the maximum amount under its offering of $1.0 billion, assuming the sale of all Class Y Shares consisting of a 7% front end sales load, our maximum commitment pursuant to the Sponsor Funding Agreement is approximately $70 million.

See Note 10 – Related Party Transactions, of the Notes to the Consolidated Financial Statements for more information about our obligations under these agreements.

70

For cash requirements related to potential acquisitions currently under contract, please see Note 3 – Real Estate Facilities and Note 4 – Investments in Unconsolidated Real Estate Ventures of the Notes to the Consolidated Financial Statements.

Subsequent Events

Please see Note 14 – Subsequent Events 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. 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. We will not enter into derivative or interest rate transactions for speculative purposes.

As of March 31, 2024, our net debt was approximately $1,093 million, which included approximately $521 million in fixed rate debt and approximately $576 million in variable rate debt, less approximately $0.1 million in debt discount and approximately $3.6 million in net debt issuance costs. As of December 31, 2023, our net debt was approximately $1,087 million, which included approximately $523 million in fixed rate debt, approximately $569 million in variable rate debt and approximately $0.1 million in net debt discount, and approximately $4.3 million in net debt issuance costs. Our debt instruments were entered into for other than trading purposes.

Changes in interest rates have different impacts on the fixed and variable debt. A change in interest rates on fixed rate debt impacts its fair value but has no impact on interest incurred or cash flows. A change in interest rates on variable debt could impact the interest incurred and cash flows and its fair value. If the underlying rate of the related index on our variable rate debt were to increase by 100 basis points, the increase in interest as of March 31, 2024, net of our interest rate derivatives, would decrease future earnings and cash flows by approximately $2.5 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 and average interest rates, excluding the impact of our interest rate hedges, on our outstanding debt as of March 31, 2024:

	2024			2025			2026			2027			2028			Thereafter			Total
Fixed rate debt	$	2,053,603		$	2,985,114		$	93,283,298		$	49,563,014		$	78,272,413		$	294,500,000		$	520,657,442
Average interest      rate(1)		4.96	%		4.96	%		5.05	%		5.23	%		5.23	%		5.14	%
Variable rate debt	$	734,157		$	984,277		$	1,038,307		$	573,496,650		$	—		$	—		$	576,253,391
Average interest      rate(1)		7.13	%		7.13	%		7.13	%		7.16	%	N/A			N/A

71

(1) Interest expense for fixed rate debt was calculated based upon the contractual rate and the interest expense on variable rate debt was calculated based on the rate in effect on March 31, 2024, excluding the impact of interest rate derivatives. (See Note 5 – Debt for additional information.) Debt denominated in foreign currency has been converted based on the rate in effect as of March 31, 2024.

Currently, our only foreign exchange rate risk comes from our Canadian properties and the Canadian Dollar (“CAD”). Our existing foreign currency hedges mitigate most of our foreign currency exposure of our net CAD denominated investments; however, we generate all of our revenues and expend essentially all of our operating expenses and third party CAD-denominated debt service costs related to our Canadian Properties 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.

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, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

72

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

There have been no material changes from the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2023.

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

(a)None.

(b)Not applicable.

(c)Our share redemption program enabled our stockholders to have their shares redeemed by us, subject to the significant conditions and limitations described in our publicly filed documents. During the three months ended March 31, 2024, we redeemed shares as follows:

For the Month Ended	Total Number of Shares Redeemed		Average Price Paid per Share		Total Number of Shares Redeemed as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs
January 31, 2024		273,168	$	15.25		273,168		4,840,397	(1)
February 29, 2024		—	$	—		—		4,840,397	(1)
March 31, 2024		—	$	—		—		4,840,397	(1)

(1)A description of the maximum number of shares that may be purchased under our share redemption program is included in Note 12 – Commitments and Contingencies, of the Notes to the Consolidated Financial Statements contained in this report.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

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.

73

EXHIBIT INDEX

The following exhibits are included in this report on Form 10-Q for the period ended March 31, 2024 (and are numbered in accordance with Item 601 of Regulation S-K).

Exhibit No.	Description
2.1	Agreement and Plan of Merger, dated as of February 24, 2022, by and among SmartStop Self Storage REIT, Inc., Strategic Storage Growth Trust II, Inc., and SSGT II Merger Sub, LLC, incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K, filed on February 24, 2022, Commission File No. 000-55617
3.1	Second Articles of Amendment and Restatement of SmartStop Self Storage REIT, Inc., incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed on September 19, 2019, Commission File No. 000-55617
3.2	Articles Supplementary for Series A Convertible Preferred Stock of SmartStop Self Storage REIT, Inc., incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed on October 30, 2019, Commission File No. 000-55617
3.3	Articles of Amendment to the Second Articles of Amendment and Restatement of SmartStop Self Storage REIT, Inc., incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed on June 23, 2021, Commission File No. 000-55617
3.4	Amended and Restated Bylaws of SmartStop Self Storage REIT, Inc., incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K, filed on September 19, 2019, Commission File No. 000-55617
10.1	Amended and Restated Credit Agreement, dated February 22, 2024, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on February 22, 2024, Commission File No. 000-55617
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 SmartStop Self Storage REIT, Inc. financial information for the three months ended March 31, 2024 formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss) (iv) Consolidated Statements of Equity and Temporary Equity, (v) Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
104*	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 has been formatted in Inline XBRL.

* Filed herewith.

Certain instruments defining rights of holders of long-term debt of the company and its consolidated subsidiaries are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. Upon request, the company agrees to furnish to the SEC copies of such instruments.

74

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.

	SMARTSTOP SELF STORAGE REIT, INC. (Registrant)
Dated: May 13, 2024	By:	/s/ James R. Barry
		James R. Barry
		Chief Financial Officer and Treasurer (Principal Financial Officer)

75

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 SmartStop Self Storage REIT, 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 the 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 13, 2024	By:	/s/ H. Michael Schwartz
		H. Michael Schwartz
		Chief Executive Officer
		(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, James R. Barry, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of SmartStop Self Storage REIT, 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 the 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 13, 2024	By:	/s/ James R. Barry
		James R. Barry
		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 SmartStop Self Storage REIT, Inc. (the “Company”), in connection with the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2024 (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 13, 2024	By:	/s/ H. Michael Schwartz
		H. Michael Schwartz
		Chief Executive Officer
		(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 SmartStop Self Storage REIT, Inc. (the “Company”), in connection with the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2024 (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 13, 2024	By:	/s/ James R. Barry
		James R. Barry
		Chief Financial Officer and Treasurer
		(Principal Financial Officer)

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	May 09, 2024
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Registrant Name	SmartStop Self Storage REIT, Inc.
Entity Central Index Key	0001585389
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Incorporation, State or Country Code	MD
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-55617
Entity Tax Identification Number	46-1722812
Entity Address, Address Line One	10 Terrace Road
Entity Address, City or Town	Ladera Ranch
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92694
City Area Code	877
Local Phone Number	327-3485
Entity Interactive Data Current	Yes
Class A Common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		88,471,131
Class T Common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		8,099,498

XML

Consolidated Balance Sheets (Unaudited) - USD ($)		Mar. 31, 2024	Dec. 31, 2023
Real estate facilities:
Land		$ 429,987,849	$ 430,868,563
Buildings		1,398,893,933	1,401,981,394
Site improvements		91,775,505	91,896,415
Real estate investment property, gross		1,920,657,287	1,924,746,372
Accumulated depreciation		(268,458,218)	(255,844,284)
Real estate investment property		1,652,199,069	1,668,902,088
Construction in process		8,338,093	5,976,946
Real estate facilities, net		1,660,537,162	1,674,879,034
Cash and cash equivalents		39,157,898	45,079,371
Restricted cash		6,913,534	8,347,805
Investments in unconsolidated real estate ventures (Note 4)		36,155,596	35,831,600
Investments in and advances to Managed REITs		36,070,661	34,390,866
Deferred tax assets		4,539,378	4,449,665
Other assets, net		23,656,576	21,701,107
Intangible assets, net of accumulated amortization		1,108,769	1,170,100
Trademarks, net of accumulated amortization		15,735,294	15,770,588
Goodwill		53,643,331	53,643,331
Debt issuance costs, net of accumulated amortization		8,878,424	377,258
Total assets	[1]	1,886,396,623	1,895,640,725
LIABILITIES, TEMPORARY EQUITY, AND EQUITY
Debt, net		1,093,200,523	1,087,401,334
Accounts payable and accrued liabilities		38,256,292	28,977,714
Due to affiliates		415,980	415,980
Distributions payable		8,881,526	9,155,808
Deferred tax liabilities		6,106,530	6,193,675
Total liabilities		1,146,860,851	1,132,144,511
Commitments and contingencies (Note 12)
Equity:
Additional paid-in capital		894,796,414	894,856,554
Distributions		(338,633,835)	(324,190,556)
Accumulated deficit		(171,918,215)	(167,270,293)
Accumulated other comprehensive income		432,640	847,183
Total SmartStop Self Storage REIT, Inc. equity		384,774,002	404,339,764
Noncontrolling interests in our Operating Partnership		90,068,769	91,488,207
Other noncontrolling interests		25,346	34,941
Total noncontrolling interests		90,094,115	91,523,148
Total equity		474,868,117	495,862,912
Total liabilities, temporary equity and equity		1,886,396,623	1,895,640,725
Class A Common stock
Equity:
Common stock, value		88,870	88,762
Class T Common stock
Equity:
Common stock, value		8,128	8,114
Series A Convertible Preferred Stock
LIABILITIES, TEMPORARY EQUITY, AND EQUITY
Redeemable common stock		196,356,107	196,356,107
Redeemable Common Stock
LIABILITIES, TEMPORARY EQUITY, AND EQUITY
Redeemable common stock		$ 68,311,548	$ 71,277,195

[1] Other than our investments in and advances to Managed REITs and investments in JV properties, substantially all of our investments in real estate facilities and intangible assets as of March 31, 2024 and December 31, 2023, respectively, were associated with our self storage platform.

XML

Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Preferred Stock
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	200,000,000	200,000,000
Series A Convertible Preferred Stock
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	200,000	200,000
Preferred Stock, shares issued	200,000	200,000
Preferred Stock, shares outstanding	200,000	200,000
Preferred Stock, liquidation preference, value	$ 203,107,924	$ 203,150,685
Class A Common stock
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	350,000,000	350,000,000
Common Stock, shares issued	88,869,543	88,761,135
Common Stock, shares outstanding	88,869,543	88,761,135
Class T Common stock
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	350,000,000	350,000,000
Common Stock, shares issued	8,127,815	8,113,827
Common Stock, shares outstanding	8,127,815	8,113,827

XML

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues:
Total revenues	$ 57,042,057	$ 57,135,265
Operating expenses:
General and administrative	7,426,164	6,536,626
Depreciation	13,584,398	13,272,271
Intangible amortization expense	73,065	1,919,705
Acquisition expenses	70,876	31,190
Total operating expenses	41,041,720	40,234,390
Income from operations	16,000,337	16,900,875
Other income (expense):
Other, net	507,515	750,978
Interest expense	(16,553,242)	(14,703,897)
Loss on debt extinguishment	(471,166)	0
Income tax expense	(342,303)	(277,220)
Net income (loss)	(1,639,513)	2,032,600
Net (income) loss attributable to noncontrolling interests	99,515	(340,365)
Less: Distributions to preferred stockholders	(3,107,924)	(3,082,192)
Net loss attributable to SmartStop Self Storage REIT, Inc. common stockholders	$ (4,647,922)	$ (1,389,957)
Net loss per Class A & Class T share - basic	$ (0.05)	$ (0.02)
Net loss per Class A & Class T share - diluted	$ (0.05)	$ (0.02)
Weighted average number of shares outstanding- basic	96,831,903	96,820,723
Weighted average number of shares outstanding, Diluted	96,831,903	96,820,723
Self Storage Rental Revenue
Revenues:
Total revenues	$ 50,469,142	$ 51,276,898
Ancillary Operating Revenue
Revenues:
Total revenues	2,192,633	2,190,622
Managed REIT Platform Revenue
Revenues:
Total revenues	2,734,207	2,276,535
Reimbursable Costs from Managed REITs
Revenues:
Total revenues	1,646,075	1,391,210
Operating expenses:
Operating expenses	1,646,075	1,391,210
Property Operating Expenses
Operating expenses:
Operating expenses	17,389,955	16,533,452
Managed REIT Platform Expenses
Operating expenses:
Operating expenses	$ 851,187	$ 549,936
Class A and T Common Stock
Other income (expense):
Net loss per Class A & Class T share - basic	$ (0.05)	$ (0.02)
Net loss per Class A & Class T share - diluted	$ (0.05)	$ (0.02)
Class A Common stock
Other income (expense):
Weighted average number of shares outstanding- basic	88,714,643	88,735,173
Weighted average number of shares outstanding, Diluted	88,714,643	88,735,173
Class T Common stock
Other income (expense):
Weighted average number of shares outstanding- basic	8,117,260	8,085,550
Weighted average number of shares outstanding, Diluted	8,117,260	8,085,550
JV Properties
Other income (expense):
Equity in earnings (losses) from investments	$ (329,092)	$ (405,111)
Managed REITs
Other income (expense):
Equity in earnings (losses) from investments	$ (451,562)	$ (233,025)

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (1,639,513)	$ 2,032,600
Other comprehensive income (loss):
Foreign currency translation adjustment	(1,319,976)	253,576
Foreign currency hedge contract gains (losses)	1,355,914	(91,616)
Interest rate swap and cap contract gains (losses)	(506,672)	(1,493,341)
Other comprehensive income (loss)	(470,734)	(1,331,381)
Comprehensive income (loss)	(2,110,247)	701,219
Comprehensive income attributable to noncontrolling interests:
Comprehensive income (loss) attributable to noncontrolling interests	155,706	(185,805)
Comprehensive income (loss) attributable to SmartStop Self Storage REIT, Inc. stockholders	$ (1,954,541)	$ 515,414

XML

Consolidated Statements of Equity and Temporary Equity (Unaudited) - USD ($)	Total	Redeemable Common Stock	Common Stock Class A Common stock	Common Stock Class T Common stock	Common Stock Redeemable Common Stock	Additional Paid-in Capital	Distributions	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total SmartStop Self Storage REIT, Inc. Equity	Noncontrolling Interests	Preferred Stock
Beginning Balance at Dec. 31, 2022	$ 561,819,707		$ 88,853	$ 8,085	$ 76,578,073	$ 894,283,954	$ (266,151,517)	$ (164,524,595)	$ 3,654,682	$ 467,359,462	$ 94,460,245	$ 196,356,107
Beginning Balance (in shares) at Dec. 31, 2022			88,853,454	8,085,550
Tax withholding (net settlement) related to vesting of restricted stock	(211,966)		$ (15)			(211,951)				(211,966)
Tax withholding (net settlement) related to vesting of restricted stock, (in Shares)			(14,786)
Redemptions of common stock		$ (4,715,055)
Issuance of restricted stock, net of forfeitures	44		$ 44							44
Issuance of restricted stock, net of forfeitures (in shares)			43,876
Distributions	(14,260,984)						(14,260,984)			(14,260,984)
Distributions to noncontrolling interests in our Operating Partnership	(2,028,207)										(2,028,207)
Distributions to other noncontrolling interests	(129,486)										(129,486)
Equity based compensation expense	1,106,113					282,654				282,654	823,459
Net income attributable to SmartStop Self Storage REIT, Inc. common stockholders	(1,389,957)							(1,389,957)		(1,389,957)
Net income attributable to the noncontrolling interests in our Operating Partnership	232,943										232,943
Net income attributable to other noncontrolling interests	107,422										107,422
Foreign currency translation adjustment	253,576								224,139	224,139	29,437
Foreign currency hedge contract gains (losses)	(91,616)								(80,980)	(80,980)	(10,636)
Interest rate hedge contract loss	(1,493,341)								(1,319,980)	(1,319,980)	(173,361)
Ending Balance at Mar. 31, 2023	543,914,248		$ 88,882	$ 8,085	71,863,018	894,354,657	(280,412,501)	(165,914,552)	2,477,861	450,602,432	93,311,816	196,356,107
Ending Balance (in shares) at Mar. 31, 2023			88,882,544	8,085,550
Beginning Balance at Dec. 31, 2022	561,819,707		$ 88,853	$ 8,085	76,578,073	894,283,954	(266,151,517)	(164,524,595)	3,654,682	467,359,462	94,460,245	196,356,107
Beginning Balance (in shares) at Dec. 31, 2022			88,853,454	8,085,550
Ending Balance at Dec. 31, 2023	495,862,912		$ 88,762	$ 8,114	71,277,195	894,856,554	(324,190,556)	(167,270,293)	847,183	404,339,764	91,523,148	196,356,107
Ending Balance (in shares) at Dec. 31, 2023			88,761,135	8,113,827
Tax withholding (net settlement) related to vesting of restricted stock	(218,770)		$ (15)			(218,755)				(218,770)
Tax withholding (net settlement) related to vesting of restricted stock, (in Shares)			(15,315)
Changes to redeemable common stock	(5,694,427)	5,694,427				(5,694,427)				(5,694,427)
Redemptions of common stock	(274)	$ (8,660,074)	$ (249)	$ (25)						(274)
Redemptions of common stock (in shares)			(248,578)	(24,590)
Issuance of restricted stock, net of forfeitures	37		$ 37							37
Issuance of restricted stock, net of forfeitures (in shares)			37,138
Distributions	(14,443,279)						(14,443,279)			(14,443,279)
Distributions to noncontrolling interests in our Operating Partnership	(2,129,796)										(2,129,796)
Distributions to other noncontrolling interests	(118,950)										(118,950)
Issuance of shares for distribution reinvestment plan	5,694,427		$ 335	$ 39		5,694,053				5,694,427
Issuance of shares for distribution reinvestment plan (in shares)			335,163	38,578
Equity based compensation expense	1,134,408					158,989				158,989	975,419
Net income attributable to SmartStop Self Storage REIT, Inc. common stockholders	(4,647,922)							(4,647,922)		(4,647,922)
Net income attributable to the noncontrolling interests in our Operating Partnership	(208,869)										(208,869)
Net income attributable to other noncontrolling interests	109,354										109,354
Foreign currency translation adjustment	(1,319,976)								(1,162,413)	(1,162,413)	(157,563)
Foreign currency hedge contract gains (losses)	1,355,914								1,194,061	1,194,061	161,853
Interest rate hedge contract loss	(506,672)								(446,191)	(446,191)	(60,481)
Ending Balance at Mar. 31, 2024	$ 474,868,117		$ 88,870	$ 8,128	$ 68,311,548	$ 894,796,414	$ (338,633,835)	$ (171,918,215)	$ 432,640	$ 384,774,002	$ 90,094,115	$ 196,356,107
Ending Balance (in shares) at Mar. 31, 2024			88,869,543	8,127,815

XML

Consolidated Statements of Equity and Temporary Equity (Parenthetical) (Unaudited) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Distributions Per Share	$ 0.15	$ 0.15

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024		Mar. 31, 2023
Cash flows from operating activities:
Net income (loss)	$ (1,639,513)		$ 2,032,600
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,657,463		15,191,976
Change in deferred tax assets and liabilities	217,882		120,287
Accretion of fair market value adjustment of secured debt	3,230		3,230
Amortization of debt issuance costs	801,883		710,351
Loss on extinguishment of debt	471,166		0
Equity based compensation expense	1,134,408		1,106,163
Non-cash adjustment from equity method investments in JV Properties	329,092		405,111
Non-cash adjustment from equity method investments in Managed REITs	451,562		423,237
Accretion of financing fee revenues	(33,672)		(63,177)
Unrealized foreign currency and derivative (gains) losses	272,434		406,298
Sponsor funding reduction	180,846	[1]	0
Increase (decrease) in cash from changes in assets and liabilities:
Other assets, net	646,635		645,445
Accounts payable and accrued liabilities	2,813,406		(2,471,540)
Managed REITs receivables	(4,895,767)		(2,628,287)
Due to affiliates	0		12,250
Net cash provided by operating activities	14,411,055		15,893,944
Cash flows from investing activities:
Additions to real estate	(1,313,559)		(4,256,788)
Deposits on acquisition of real estate	(636,964)		(939,994)
Capital Distributions from Managed REITs	153,239		0
Investments in unconsolidated JV Properties	(1,413,317)		(3,162,306)
SST VI preferred equity investment	0		(15,000,000)
Purchase of SST VI Subordinated Class C Units	(359,927)		0
Purchase of other assets	(38,887)		0
Net cash used in investing activities	(609,415)		(20,859,088)
Cash flows from financing activities
Gross proceeds from issuance of non-revolver debt	55,590,000		0
Repayment of non-revolver debt	0		(12,016,875)
Scheduled principal payments on non-revolver debt	(681,291)		(670,707)
Proceeds from issuance of revolver debt	576,000,000		60,000,000
Repayment of revolver debt	(623,807,538)		(35,000,000)
Debt issuance costs	(9,046,339)		0
Redemption of common stock	(4,165,441)		0
Restricted stock withholding for payroll taxes	(218,770)		(211,972)
Distributions paid to preferred stockholders	(3,150,685)		(3,150,685)
Distributions paid to common stockholders	(8,806,512)		(14,684,560)
Distributions paid to noncontrolling interests in our OP	(2,304,031)		(1,876,163)
Distributions paid to other noncontrolling interests	(118,950)		(129,486)
Net cash provided by (used in) financing activities	(20,709,557)		(7,740,448)
Impact of foreign exchange rate changes on cash and restricted cash	(447,827)		54,682
Change in cash, cash equivalents, and restricted cash	(7,355,744)		(12,650,910)
Cash, cash equivalents, and restricted cash beginning of year	53,427,176		46,038,391
Cash, cash equivalents, and restricted cash end of year	46,071,432		33,387,481
Supplemental disclosures and non-cash transactions:
Cash paid for interest, net of capitalized interest	13,512,246		11,384,685
Cash paid for income taxes	0		0
Supplemental disclosure of noncash activities:
Redemption of common stock included in accounts payable and accrued liabilities	8,439,386		4,715,055
Distributions payable	8,881,526		8,984,429
Real estate and construction in process included in accounts payable and accrued liabilities	1,960,806		202,020
Issuance of shares pursuant to distribution reinvestment plan	5,694,427		0
Retirement of assets due to casualty loss	730,863		0
Earnest deposits on acquisitions assigned to the Managed REITs, amounts reclassified to Managed REITs receivables	0		1,082,916
SST VI Mezzanine
Cash flows from investing activities:
Mezzanine loan funding	0		(15,000,000)
SSGT III Mezzanine
Cash flows from investing activities:
Mezzanine loan repayments	$ 3,000,000		$ 17,500,000

[1] Pursuant to the Sponsor Funding Agreement, SmartStop funds certain costs of SST VI's share sales, and in return receives Series C Units in SST VI's OP. The excess of the funding over the value of the Series C Units received is accounted for as a reduction of Managed REIT Platform revenues from SST VI over the remaining estimated term of the management contracts with SST VI.

XML

Organization

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Organization

Note 1. Organization

SmartStop Self Storage REIT, Inc., a Maryland corporation (the “Company”), is a self-managed and fully-integrated self storage real estate investment trust (“REIT”), formed on January 8, 2013 under the Maryland General Corporation Law. Our year end is December 31. As used in this report, “we,” “us,” “our,” and “Company” refer to SmartStop Self Storage REIT, Inc. and each of our subsidiaries.

We acquire and own self storage facilities; we also operate self storage facilities owned by us as well as those owned by the entities sponsored by us. As of March 31, 2024, we wholly-owned 154 self storage facilities located in 19 states (Alabama, Arizona, California, Colorado, Florida, Illinois, Indiana, Maryland, Massachusetts, Michigan, New Jersey, Nevada, North Carolina, Ohio, South Carolina, Texas, Virginia, Washington, and Wisconsin) and Canada.

As discussed herein, we, through our subsidiaries, currently serve as the sponsor of Strategic Storage Trust VI, Inc., a publicly-registered non-traded REIT (“SST VI”), and Strategic Storage Growth Trust III, Inc., a private REIT (“SSGT III” and together with SST VI , the “Managed REITs”). We also served as the sponsor of Strategic Storage Trust IV, Inc., a public non-traded REIT (“SST IV”), through March 17, 2021, and Strategic Storage Growth Trust II, Inc., a private REIT (“SSGT II”), through June 1, 2022, the dates on which we closed on the mergers of SST IV (the “SST IV Merger”) and SSGT II (the “SSGT II Merger”), respectively, as defined in Note 3 – Real Estate Facilities. Prior to March 17, 2021 and June 1, 2022, SST IV and SSGT II, respectively, were also included in the “Managed REITs.”

We operate the properties owned by the Managed REITs, which together with one other self storage property we manage, as of March 31, 2024, represented 32 operating properties and approximately 25,400 units and 2.8 million rentable square feet. Through our Managed REIT Platform (as defined below), we originate, structure, and manage additional self storage investment products.

SmartStop OP, L.P. (the “Operating Partnership”) owns, directly or indirectly through one or more subsidiaries, all of the self storage properties that we own. As of March 31, 2024, we owned approximately 88% of the common units of limited partnership interests of our Operating Partnership. The remaining approximately 12% of the common units are owned by current and former employees, members of our executive management team, board members, or indirectly by Strategic Asset Management I, LLC (f/k/a SmartStop Asset Management, LLC), our former sponsor (“SAM”), its affiliates, and affiliates of Select Capital Corporation, the former dealer manager of our offering (the “Former Dealer Manager”). As the sole general partner of our Operating Partnership, we have the exclusive power to manage and conduct the business of our Operating Partnership.

We commenced our initial public offering in January 2014, in which we offered a maximum of $1.0 billion in common shares for sale to the public (the “Primary Offering”) and $95.0 million in common shares for sale pursuant to our distribution reinvestment plan (collectively, the “Offering”). At the termination of our Offering in January 2017, we had sold approximately 48 million Class A Shares and approximately 7 million Class T Shares for approximately $493 million and $73 million respectively.

In November 2016, we filed with the SEC a Registration Statement on Form S-3, which registered up to an additional $100.9 million in shares under our 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, 2024, we had sold approximately 8.5 million Class A Shares and approximately 1.2 million Class T Shares through our DRP Offering.

On January 15, 2024, our board of directors (the “Board”), upon recommendation of our Nominating and Corporate Governance Committee, approved an Estimated Per Share Net Asset Value (“NAV”) of our common stock of $15.25 for our Class A Shares and Class T Shares based on the estimated value of our assets less the estimated value of our liabilities, or net asset value, divided by the number of shares outstanding on a fully diluted basis, calculated as of September 30, 2023.

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

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.

The square footage, unit count, and occupancy percentage data and related disclosures included in these notes to the consolidated financial statements are outside the scope of our independent registered accounting firm's review.

Principles of Consolidation

Our financial statements, and the financial statements of our Operating Partnership, including its wholly-owned subsidiaries, are consolidated in the accompanying consolidated financial statements. The portion of these entities not wholly-owned by us is presented as noncontrolling interests. All intercompany accounts and transactions have been eliminated in consolidation.

Consolidation Considerations

Current accounting guidance provides a framework for identifying a variable interest entity (“VIE”) and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of a 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.

Our Operating Partnership is deemed to be a VIE and is consolidated by us as we are currently the primary beneficiary. Our sole significant asset is our investment in our Operating Partnership; as a result, substantially all of our assets and liabilities represent those assets and liabilities of our Operating Partnership and its wholly-owned subsidiaries.

On March 1, 2022, Pacific Oak Holding Group, LLC, the parent company of Pacific Oak Capital Markets, LLC, the dealer manager for the public offering of SST VI, became a 10% non-voting member of Strategic Storage Advisor VI, LLC, our advisor to SST VI (the “SST VI Advisor”). We continue to be the primary beneficiary of SST VI Advisor, and their operations therefore continue to be consolidated by us.

As of March 31, 2024 and December 31, 2023, we were not a party to any other material contracts or interests that would be deemed variable interests in VIEs other than our joint ventures with SmartCentres and our equity investments in the Managed REIT's, which are all accounted for under the equity method of accounting (see Note 4 – Investments in Unconsolidated Real Estate Ventures and Note 10 – Related Party Transactions for additional information), and our joint venture programs through which we offer our tenant insurance, tenant protection plans or similar programs (the “Tenant Protection Programs”) with SST VI, SSGT III, and SSGT II (through June 1, 2022) which are consolidated.

Equity Investments

Under the equity method, our investments are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions and impairments, as applicable. Equity in earnings will generally be recognized based on our ownership interest in the earnings of each of the unconsolidated investments and recorded within our consolidated statements of operations.

Investments in and Advances to Managed REITs

As of March 31, 2024 and December 31, 2023, we owned equity and debt investments in the Managed REITs; such amounts are included in Investments in and advances to Managed REITs within our consolidated balance sheets. We account for the equity investments using the equity method of accounting as we have the ability to exercise significant influence, but not control, over the Managed REITs’ operating and financial policies through our advisory and property management agreements with the respective Managed REITs. The equity method of accounting requires the investment to be initially

recorded at cost and subsequently adjusted for our share of equity in the respective Managed REIT’s earnings and reduced by distributions.

We record the interest on our debt investments on the accrual basis and such income is included in Other, net, within Other income (expense) of our consolidated statements of operations. While we do make loans periodically, we do not consider that to be part of our ordinary operating activity, and therefore do not report income from loans as operating income.

See Note 10 – Related Party Transactions for additional information.

Noncontrolling Interests in Consolidated Entities

We account for the noncontrolling interests in our Operating Partnership and the noncontrolling interests in SST VI Advisor and our Tenant Protection Programs joint ventures with SST VI, SSGT III, and SSGT II (prior to the SSGT II Merger on June 1, 2022) in accordance with the related accounting guidance.

Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partners, our Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company and the limited partner interests are reflected as noncontrolling interests in the accompanying consolidated balance sheets. We also consolidate our interests in the SSGT III and SST VI Tenant Protection Programs and present the minority interests as noncontrolling interests in the accompanying consolidated balance sheets. The noncontrolling interests shall be attributed their share of income and losses, even if that attribution results in a deficit noncontrolling interests balance.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP 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 will adjust such estimates when facts and circumstances dictate. Actual results could materially differ from those estimates. The most significant estimates made include that of real estate acquisition valuation and the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at relative fair value, the evaluation of potential impairment of indefinite and long-lived assets and goodwill, and the estimated useful lives of real estate assets and intangibles.

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 and cash equivalents in financial institutions in excess of insured limits. In an effort to mitigate this risk, we only invest 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 and Treatment of Acquisition Costs

We account for asset acquisitions in accordance with GAAP which requires that we allocate the purchase price of a property to the tangible and intangible assets acquired and the liabilities assumed based on their relative fair values as of the date of acquisition. This guidance requires us to make significant estimates and assumptions, including fair value estimates, which requires the use of significant unobservable inputs as of the acquisition date. We engage third-party valuation specialists to assist in the determination of significant estimates and market-based assumptions used in the valuation models.

The value of the tangible assets, consisting of land and buildings, is determined as if vacant. 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. We also consider whether in-place, market leases represent an intangible asset. There were no acquisitions during the three months ended March 31, 2024 and 2023, as such no intangible assets to recognize the value of in-place leases were recorded. We do

not expect, nor to date have we recorded, intangible assets for the value of customer relationships because we expect we will not have concentrations of significant customers and the average customer turnover will be fairly frequent.

Allocation of purchase price to 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.

Acquisitions that do not meet the definition of a business, as defined under current GAAP, are accounted for as asset acquisitions. During the three months ended March 31, 2024 and 2023, there were no property acquisitions. To date, our acquisitions have generally not met the definition of a business because substantially all of the fair value was concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related intangible assets) and because the acquisitions did not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. As a result, once an acquisition is deemed probable, acquisition related transaction costs are capitalized rather than expensed.

During the three months ended March 31, 2024 and 2023, we expensed approximately $71,000 and $31,000, respectively, of acquisition-related transaction costs that did not meet our capitalization policy during the respective periods.

Evaluation of Possible Impairment of Real Property Assets

Management monitors events and changes in circumstances that could indicate that the carrying amounts of our real property assets 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 real property 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 real property assets to the fair value and recognize an impairment loss. For the three months ended March 31, 2024 and 2023, no real property asset impairment losses were recognized.

Goodwill Valuation

We initially recorded goodwill as a result of the Self Administration Transaction (as defined in Note 10 – Related Party Transactions), which occurred in 2019. Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible assets and other intangible assets acquired. Goodwill is allocated to various reporting units, as applicable, and is not amortized. We perform an annual qualitative impairment assessment as of December 31 for goodwill; between annual tests we evaluate the recoverability of goodwill whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be fully recoverable. If circumstances indicate the carrying amount may not be fully recoverable, we perform a quantitative analysis to compare the fair value of each reporting unit to its respective carrying amount. If the carrying amount of goodwill exceeds its fair value, an impairment charge will be recognized.

See Note 10 – Related Party Transactions for additional information.

Trademarks

In connection with the Self Administration Transaction, we recorded the fair value associated with the two primary trademarks acquired therein.

Trademarks are based on the value of our brands. Trademarks are valued using the relief from royalty method, which presumes that without ownership of such trademarks, we would have to make a stream of payments to a brand or franchise owner in return for the right to use their name. By virtue of this asset, we avoid any such payments and record the related intangible fair value of our ownership of the brand name.

As of March 31, 2024 and December 31, 2023, $15.7 million was recorded related to the SmartStop® Self Storage trademark, which is an indefinite lived trademark. As of March 31, 2024 and December 31, 2023, approximately $35,000 and $71,000, respectively, was recorded to the “Strategic Storage®” trademark, which is a definite lived trademark. The total estimated future amortization expense of the “Strategic Storage®” trademark asset for the year ending December 31, 2024, and thereafter is approximately $35,000 and none, respectively.

We qualitatively evaluate whether any triggering events or changes in circumstances have occurred in addition to our annual impairment test that would indicate an impairment condition may exist. If any change in circumstance or triggering event occurs, and results in a significant impact to our revenue and profitability projections, or any significant assumption in our valuation methods is adversely impacted, the impact could result in a material impairment charge in the future.

Revenue Recognition

Self Storage Operations

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.

In accordance with ASC 842, we review the collectability of lease payments on an ongoing basis. We consider collectability indicators when analyzing accounts receivable and historical bad debt levels, including current economic trends, all of which assist in evaluating the probability of outstanding and future rental income collections.

Additionally, we earn ancillary revenue by selling tenant insurance or tenant protection plans to customers at our properties through our Tenant Protection Programs, and to a lesser extent, through the sale of various moving and packing supplies such as locks and boxes. We recognize such revenue in the Ancillary operating revenue line within our consolidated statements of operations as the services are performed and as the goods are delivered.

Managed REIT Platform

We earn property management and asset management revenue, pursuant to the respective property management and advisory agreement contracts, in connection with providing services to the Managed REITs. We have determined under ASC 606 – Revenue from Contracts with Customers (“ASC 606”), that the performance obligation for the property management services and asset management services are satisfied as the services are rendered. While we are compensated for our services on a monthly basis, these services represent a series of distinct daily services in accordance with ASC 606. Such revenue is recorded in the Managed REIT Platform revenue line within our consolidated statements of operations.

The Managed REITs’ advisory agreements also provide for reimbursement to us of our direct and indirect costs of providing administrative and management services to the Managed REITs. These reimbursements include costs incurred in relation to organization and offering services provided to the Managed REITs and the reimbursement of salaries, bonuses, and other expenses related to benefits paid to our employees while performing services for the Managed REITs. The Managed REITs’ property management agreements also provide reimbursement to us for the property manager’s costs of managing the properties. Reimbursable costs include wages and salaries and other expenses that arise in operating, managing and maintaining the Managed REITs’ properties.

Under ASC 606, direct reimbursement of such costs does not represent a separate performance obligation from our obligation to perform property management and asset management services. The reimbursement income is considered variable consideration, and is recognized as the costs are incurred, subject to limitations on the Managed REIT Platform’s ability to incur offering costs or limitations imposed by the advisory agreements. We have elected to separately record such revenue in the Reimbursable costs from Managed REITs line within our consolidated statements of operations.

Additionally, we earn revenue in connection with our Tenant Protection Programs joint ventures with our Managed REITs. We also earn development and construction management revenue from services we provide in connection with the project design, coordination and oversite of development and certain capital improvement projects undertaken by the Managed REITs. We recognize such revenue in the Managed REIT Platform revenue line within our consolidated statements of operations as the services are performed or delivered. See Note 10 – Related Party Transactions, for additional information regarding revenue generated from our Managed REIT Platform.

Sponsor Funding Agreement

On November 1, 2023, SmartStop REIT Advisors, LLC, a subsidiary of SmartStop OP entered into a sponsor funding agreement with SST VI and Strategic Storage Trust VI, O.P. ("SST VI OP"), (the “Sponsor Funding Agreement”), in

connection with certain changes to the public offering of SST VI (see Note 10 – Related Party Transactions for additional information).

Pursuant to the Sponsor Funding Agreement, SmartStop, through a wholly-owned subsidiary, is required to fund the payment of the front-end sales load for the sale of SST VI’s class Y and class Z shares sold in its offering. In exchange, SmartStop receives a number of series C convertible units (“Series C Units”) in SST VI OP calculated as the dollar amount of such funding divided by the then-current offering price for such class Y and Z shares. The Series C Units convert into class A units of SST VI OP if the estimated net asset value of SST VI, as declared by SST VI, exceeds $10.00 per share. Such conversion is limited such that the dilution caused by the conversion may not reduce the diluted estimated net asset value below $10.00 per share.

In accordance with ASC 606, the amount by which our funding exceeds the fair value of the Series C Units received is accounted for as a payment to a customer and is therefore recorded as a reduction to the transaction price for the services we provide to such customer. Each payment is initially included in the Other assets line-item in our consolidated balance sheet and subsequently recorded as a reduction of Managed REIT Platform revenues ratably over the remaining estimated life of our management contracts with SST VI. Below is a summary of the portion of sponsorship funding payments which exceeds the fair value of the Series C Units received, and is recorded pursuant to ASC 606 as described above:

Balance as of December 31, 2022	$	—
Amounts incurred		3,526,927
Recorded sponsor funding reduction		(33,643	)
Balance as of December 31, 2023	$	3,493,284
Amounts incurred	$	361,207
Recorded sponsor funding reduction		(180,846	)
Balance as of March 31, 2024	$	3,673,645

Allowance for Doubtful Accounts

Tenant accounts receivable is reported net of an allowance for doubtful accounts. Management records this general allowance estimate based upon a review of the current status of accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future. As of March 31, 2024 and December 31, 2023, approximately $0.9 million and $0.9 million, respectively, were recorded to allowance for doubtful accounts and are included within other assets in the accompanying consolidated balance sheets.

Advertising Costs

Advertising costs are expensed in the period in which the cost is incurred and are included in property operating expenses and general and administrative lines within our consolidated statements of operations, depending on the nature of the expense. The Company incurred advertising costs of approximately $1.3 million and $1.2 million for the three months ended March 31, 2024 and 2023, respectively, within property operating expenses, and approximately $0.5 million and $0.5 million for the three months ended March 31, 2024 and 2023, respectively, within general and administrative.

Real Estate Facilities

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	30-40 years
Site Improvements	7-10 years

Depreciation of Personal Property Assets

Personal property assets consist primarily of furniture, fixtures and equipment and 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 lease intangibles, which amortize on a straight-line basis over the estimated future benefit period. Additionally, we have other contract related intangible assets. As of March 31, 2024, the gross amount of the intangible assets was approximately $80.5 million, and accumulated amortization was approximately $79.4 million. As of December 31, 2023, the gross amount of the intangible assets was approximately $80.7 million, and accumulated amortization was approximately $79.5 million. See Note 10 – Related Party Transactions for additional information.

The total estimated future amortization expense related to intangible assets for the years ending December 31, 2024, 2025, 2026, 2027, 2028, and thereafter is approximately $0.1 million, $0.1 million, $0.1 million, $0.1 million, $0.1 million, and $0.6 million thereafter, respectively. The weighted-average amortization period on our remaining intangible assets with a net book value of approximately $1.1 million was approximately 6.0 years as of March 31, 2024.

We evaluate whether any triggering events or changes in circumstances have occurred subsequent to our annual impairment test that would indicate an impairment condition may exist. If any change in circumstance or triggering event occurs, and results in a significant impact to our revenue and profitability projections, or any significant assumption in our valuations methods is adversely impacted, the impact could result in an impairment charge in the future.

Debt Issuance Costs

The net carrying value of costs incurred in connection with obtaining non revolving debt are presented on the balance sheet as a deduction from debt; amounts incurred related to obtaining revolving debt are included in the debt issuance costs line on our consolidated balance sheet (see Note 5 - Debt). Debt issuance costs are amortized using the effective interest method.

As of March 31, 2024 the gross amount of debt issuance costs related to our revolving credit facility totaled approximately $9.1 million and accumulated amortization of debt issuance costs related to our revolving credit facility totaled approximately $0.3 million. As of December 31, 2023, the gross amount of debt issuance costs related to our revolving credit facility totaled approximately $4.5 million, and accumulated amortization of debt issuance costs related to our revolving credit facility totaled approximately $4.1 million.

As of March 31, 2024, the gross amount allocated to debt issuance costs related to non-revolving debt totaled approximately $5.7 million and accumulated amortization of debt issuance costs related to non-revolving debt totaled approximately $2.1 million. As of December 31, 2023, the gross amount allocated to debt issuance costs related to non-revolving debt totaled approximately $7.7 million and accumulated amortization of debt issuance costs related to non-revolving debt totaled approximately $3.4 million.

Foreign Currency Translation

For non-U.S. functional currency operations, assets and liabilities are translated to U.S. dollars at current exchange rates, as of the reporting date. Revenues and expenses are translated at the average rates for the period. All adjustments related to amounts classified as long term net investments are recorded in accumulated 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. Changes in investments not classified as long term are recorded in other income (expense) and represented a loss of approximately $1.4 million and a gain of approximately $35,000 for the three months ended March 31, 2024 and 2023, respectively.

Redeemable Common Stock

We adopted a share redemption program (“SRP”) that enables stockholders to sell their shares to us in limited circumstances.

We have evaluated the terms of our SRP, and we classify amounts that are redeemable under the SRP as redeemable common stock in the accompanying consolidated balance sheets. The maximum amount of redeemable shares under our SRP is limited to the net proceeds from the distribution reinvestment plan. However, accounting guidance states that determinable amounts that can become redeemable should be presented as redeemable when such amount is known. Therefore, the net proceeds from the distribution reinvestment plan are considered to be temporary equity and are presented as redeemable common stock in the accompanying consolidated balance sheets.

In addition, current accounting guidance requires, among other things, that financial instruments that represent a mandatory obligation of us to repurchase shares be classified as liabilities and reported at settlement value. When we determine we have a mandatory obligation to repurchase shares under the SRP, we reclassify such obligations from temporary equity to a liability based upon their respective settlement values.

See Note 12 – Commitments and Contingencies for additional information on our SRP.

Accounting for Equity Awards

We issue equity based awards in two forms: (1) restricted stock awards consisting of shares of our common stock and (2) long-term incentive plan units of our Operating Partnership (“LTIP Units”), both of which may be issued subject to either time based vesting criteria or performance based vesting criteria restrictions. For time based awards granted which contain a graded vesting schedule, compensation cost is recognized as an expense on a straight-line basis over the requisite service period as if the award was, in substance, a single award. For performance based awards, compensation cost is recognized over the requisite service period if and when we determine the performance condition is probable of being achieved. We record the cost of such equity based awards based on the grant date fair value, and have elected to record forfeitures as they occur.

Employee Benefit Plan

The Company maintains its own retirement savings plan under Section 401(k) of the Internal Revenue Code under which eligible employees can contribute up to 100% of their annual salary, subject to a statutory prescribed annual limit. For the three months ended March 31, 2024 and 2023, the Company made matching contributions to such plan of approximately $0.2 million and $0.2 million, respectively, based on a company match of 100% on the first 4% of an employee’s compensation.

Fair Value Measurements

Under GAAP, we are required to measure certain financial instruments at fair value on a recurring basis. In addition, we are required to measure other financial instruments and balances at fair value on a non-recurring basis. 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 will 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 will be 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 will present will be 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 liabilities assumed related to our acquisitions along with the assets and liabilities described in Note 3 – Real Estate Facilities. The fair values of these assets and liabilities 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) market approach, which considers comparable sales activity. Additionally, certain such assets and liabilities are required to be fair valued periodically or valued pursuant to ongoing fair value requirements and impairment analyses and have been valued subsequently utilizing the same techniques noted above. 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 and liabilities as of the acquisition dates were derived using Level 3 inputs.

The Series C Units (categorized within Level 3 of the fair value hierarchy) acquired in connection with the Sponsor Funding Agreement are measured at fair value at the time of acquisition, and are recorded using the equity method of accounting as described in Note 10 – Related Party Transactions. The fair value of these units were determined using a valuation model which considered the following key assumptions: the projected distribution rate of SST VI, implied share price volatility, risk free interest rate, current estimated net asset value, and the estimated effective life of the Series C Units.

The carrying amounts of cash and cash equivalents, restricted cash, other assets, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates approximate fair value (categorized within Level 1 of the fair value hierarchy).

The table below summarizes the carrying amounts and fair values of financial instruments that are not carried at fair value as of March 31, 2024 and December 31, 2023. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of our fixed and variable rate debt was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities (categorized within Level 2 of the fair value hierarchy). The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. As of March 31, 2024 and December 31, 2023, we believe the fair value of our variable rate debt was reasonably estimated at their notional amounts as there have been minimal changes to the fixed spread portion of interest rates for similar loans observed in the market, and as the variable portion of our interest rates fluctuate with the associated market indices.

	March 31, 2024				December 31, 2023
	Fair Value		Carrying Value		Fair Value		Carrying Value
Fixed Rate Secured Debt	$	493,300,000	$	520,580,451	$	505,700,000	$	523,018,512

During the three months ended March 31, 2024 and 2023, we held interest rate cash flow hedges and foreign currency net investment hedges to hedge our interest rate and foreign currency exposure (See Notes 5 – Debt and 7 – Derivative Instruments). The fair value analyses of these instruments reflect the contractual terms of the derivatives, including the period to maturity, and used observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities, as applicable. The fair value of interest rate swap and cap agreements are determined using widely accepted valuation techniques, including discounted cash flow analyses on the expected cash flows of the instruments. Our fair values of our net investment hedges are based primarily on the change in the spot rate at the end of the period as compared with the strike price at inception.

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 derivative contracts for the effect of non-performance risk, we consider the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we had determined that the majority of the inputs used to value our derivatives were within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilized Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparties. However, through March 31, 2024, we had assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of our derivatives. As a result, we determined that our derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy.

The table below presents the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Fair Value Measurements at March 31, 2024 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Other assets - interest rate derivatives	$	—	$	2,592,468	$	—
Other assets - foreign currency hedges	$	—	$	2,247,494	$	—
Accounts payable and accrued    liabilities - interest rate derivatives	$	—	$	101,787	$	—

	Fair Value Measurements at December 31, 2023 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Other assets - interest rate derivatives	$	—	$	3,485,281	$	—
Accounts payable and accrued    liabilities - foreign currency hedges	$	—	$	985,412	$	—

Derivative Instruments and Hedging Activities

We record all derivatives on our balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. We may enter into derivative contracts that are intended to economically hedge certain of our risks, even though hedge accounting does not apply or we elect not to apply hedge accounting.

For derivatives designated as net investment hedges, the effective portion of changes in the fair value of the derivatives are reported in accumulated other comprehensive income (loss). The ineffective portion of the change in fair value of the derivatives is recognized in Other, net, within our consolidated statements of operations. Amounts are reclassified out of other comprehensive (loss) income (“OCI”) into earnings (loss) when the hedged net investment is either sold or substantially liquidated.

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, 2014. To qualify as a REIT, we must continue to meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the REIT’s taxable income to stockholders (which is computed without regard to the dividends paid deduction or net capital gains and which does not equal net income as calculated in accordance with GAAP).

For income tax purposes, distributions to common stockholders are characterized as ordinary dividends, capital gain dividends, or as nontaxable distributions. To the extent that we make a distribution in excess of our current or accumulated earnings and profits, the distribution will be a non-taxable return of capital, reducing the tax basis in each U.S. stockholder’s shares, and the amount of each distribution in excess of a U.S. stockholder’s tax basis in its shares will be taxable as gain realized from the sale of its shares.

As a REIT, we generally will not be subject to U.S. 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 U.S. federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for U.S. 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 are 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 U.S. federal income tax purposes.

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

We filed an election to treat our primary taxable REIT subsidiary (“TRS”) as a taxable REIT subsidiary effective January 1, 2014. In general, our TRS performs additional services for our customers and provides the advisory and property management services to the Managed REITs and otherwise generally engages in non-real estate related business. The TRS is subject to corporate federal and state income tax.

We account for deferred income taxes using the asset and liability method and recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our financial statements or tax returns. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of

assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes a change in our judgment about expected future tax consequences of events, is included in the tax provision when such changes occur. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes a change in our judgment about the realizability of the related deferred tax asset, is included in the tax provision when such changes occur.

Uncertain tax positions may arise where tax laws may allow for alternative interpretations or where the timing of recognition of income is subject to judgment. Under ASC Topic 740, tax positions are evaluated for recognition using a more–likely–than–not threshold, and those tax positions requiring recognition are measured at the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of March 31, 2024 and December 31, 2023, the Company had no uncertain tax positions. Income taxes payable are classified within accounts payable and accrued liabilities in the consolidated balance sheets. The tax years 2019-2022 remain open to examination by the major taxing jurisdictions to which we are subject.
 

Concentration

No single self storage customer represents a significant concentration of our revenues. For the month of March 2024, approximately 23%, 20%, and 10% of our rental income was concentrated in Florida, California, and the Greater Toronto Area of Canada, respectively. Our properties within the aforementioned geographic areas are dispersed therein, operating in multiple different regions and sub-markets.

Segment Reporting

Our business is composed of two reportable segments: (i) self storage operations and (ii) the Managed REIT Platform business. Please see Note 9 – Segment Disclosures for additional detail.

Convertible Preferred Stock

We classify our Series A Convertible Preferred Stock (as defined in Note 6 – Preferred Equity) on our consolidated balance sheets using the guidance in ASC 480-10-S99. Our Series A Convertible Preferred Stock can be redeemed by us on or after the fifth anniversary of its issuance (October 29, 2024), or if certain events occur, such as the listing of our common stock on a national securities exchange, a change in control, or if a redemption would be required to maintain our REIT status. Additionally, if we do not maintain our REIT status the holder can require redemption. As the shares are contingently redeemable, and under certain circumstances not solely within our control, we have classified our Series A Convertible Preferred Stock as temporary equity.

We have analyzed whether the conversion features in our Series A Convertible Preferred Stock should be bifurcated under the guidance in ASC 815‑10 and have determined that bifurcation is not necessary.

Per Share Data

Basic earnings per share attributable to our common stockholders for all periods presented are computed by dividing net income (loss) attributable to our common stockholders by the weighted average number of common shares outstanding during the period, excluding unvested restricted stock.

Diluted earnings per share is computed by including the dilutive effect of the conversion of all potential common stock equivalents (which includes unvested restricted stock, Series A Convertible Preferred Stock, Class A and Class A-1 OP Units, and unvested LTIP Units) and accordingly, as applicable, adjusting net income to add back any changes in earnings that reduce earnings per common share in the period associated with the potential common stock equivalents.

The computation of earnings per common share is as follows for the periods presented:

	For the Three Months Ended  March 31,
	2024			2023
Net income (loss)	$	(1,639,513	)	$	2,032,600
Net (income) loss attributable to    noncontrolling interests		99,515			(340,365	)
Net income (loss) attributable to    SmartStop Self Storage REIT, Inc.		(1,539,998	)		1,692,235
Less: Distributions to preferred       stockholders		(3,107,924	)		(3,082,192	)
Less: Distributions to participating       securities		(114,364	)		(92,343	)
Net loss attributable to    common stockholders - basic:		(4,762,286	)		(1,482,300	)
Net loss attributable to    common stockholders - diluted:	$	(4,762,286	)	$	(1,482,300	)
Weighted average common shares        outstanding:
Average number of common shares           outstanding- basic		96,831,903			96,820,723
Average number of common shares           outstanding - diluted		96,831,903			96,820,723
Earnings per common share:
Basic	$	(0.05	)	$	(0.02	)
Diluted	$	(0.05	)	$	(0.02	)

The following table presents the weighted average Series A Convertible Preferred Stock, Class A and Class A-1 OP Units, unvested LTIP Units, and unvested restricted stock awards, that were excluded from the computation of diluted earnings per share above as their effect would have been antidilutive for the respective periods, and was calculated using the two-class, treasury stock or if-converted method, as applicable:

	For the Three Months Ended March 31,
	2024		2023
	Equivalent Shares (if converted)		Equivalent Shares (if converted)
Series A Convertible Preferred Stock		18,761,726		18,761,726
Class A and Class A-1 OP Units		13,127,843		12,773,507
Unvested LTIP Units		324,590		333,106
Unvested restricted stock awards		13,358		81,554
		32,227,517		31,949,893

Recently Issued Accounting Guidance

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280).” The guidance in ASU 2023-07 was issued to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant

segment expenses. The amendment becomes effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact upon adoption of the new standard on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740).” The guidance in ASU 2023-09 was issued to provide investors with information to better assess how an entity’s operations and related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendment becomes effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact upon adoption of the new standard on its consolidated financial statements and related disclosures.

XML

Real Estate

3 Months Ended

Mar. 31, 2024

Real Estate [Abstract]

Real Estate

Note 3. Real Estate

The following summarizes the activity in real estate during the three months ended March 31, 2024:

Real estate
Balance at December 31, 2023	$	1,924,746,372
Impact of foreign exchange rate    changes and other		(5,001,767	)
Improvements and additions		912,682
Balance at March 31, 2024	$	1,920,657,287
Accumulated depreciation
Balance at December 31, 2023	$	(255,844,284	)
Depreciation expense		(13,309,061	)
Impact of foreign exchange rate    changes and other		695,127
Balance at March 31, 2024	$	(268,458,218	)

SSGT II Merger

On June 1, 2022, we closed on our merger with SSGT II (the “SSGT II Merger”). On such date, (the “SSGT II Merger Date”), we acquired all of the real estate owned by SSGT II, consisting primarily of (i) 10 wholly-owned self storage facilities, and (ii) SSGT II’s 50% equity interest in three unconsolidated real estate ventures located in the Greater Toronto Area of Ontario, Canada. We issued approximately 11.5 million Class A Shares to the former SSGT II stockholders in connection with the SSGT II Merger.

SST IV Merger

On March 17, 2021, we closed on our merger with SST IV (the “SST IV Merger”). On such date, (the “SST IV Merger Date”), we acquired all of the real estate owned by SST IV, consisting primarily of (i) 24 self storage facilities, and (ii) SST IV’s 50% equity interest in six unconsolidated real estate ventures located in the Greater Toronto Area of Ontario, Canada. As a result of the SST IV Merger, we issued approximately 23.1 million Class A Shares to the former SST IV stockholders.

Self Storage Facility Acquisitions

There were no self storage facility acquisitions during the three months ended March 31, 2024.

Potential Acquisitions

As of May 13, 2024, we, through our wholly-owned subsidiaries were party to two purchase and sale agreements with unaffiliated third parties for the acquisition of self storage facilities located in the U.S. and Canada. The total purchase price for these properties is approximately $23.8 million, plus closing costs. There can be no assurance that we will complete these acquisitions. If we fail to acquire these properties, in addition to the incurred acquisition costs, we may also forfeit earnest money of approximately $0.2 million as a result.

We may assign some or all of the above purchase and sale agreements to one of our Managed REITs.

XML

Investments in Unconsolidated Real Estate Ventures

3 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Real Estate Ventures

Note 4. Investments in Unconsolidated Real Estate Ventures

As a result of the SST IV Merger, we acquired six self storage real estate joint ventures located in the Greater Toronto Area of Ontario, Canada, all of which were operating properties as of March 31, 2024. As a result of the SSGT II Merger, we acquired three self storage real estate joint ventures located in the Greater Toronto Area of Ontario, Canada, two of which were operating properties and one of which was under development as of March 31, 2024.

On May 25, 2022, we, as 50% owner and SmartCentres as the other 50% owner of a joint venture subsidiary, purchased a single tenant industrial building located in the city of Burnaby, British Columbia (the “Regent Property”), that we and SmartCentres intend to develop into a self storage facility in the future.

On January 12, 2023, we as 50% owner and SmartCentres as the other 50% owner of a joint venture subsidiary, purchased a parcel of land in Whitby, Ontario, (the “North Whitby Property”), that we and SmartCentres are developing into a self storage facility in the future. Our 50% of the initial investment at closing for the North Whitby Property was approximately $2.7 million CAD (or approximately $2.0 million USD), plus closing costs.

These joint venture agreements are with a subsidiary of SmartCentres, an unaffiliated third party, to acquire, develop, and operate self storage facilities.

We account for these investments using the equity method of accounting and they are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions and increased for contributions. Equity in earnings (loss) will generally be recognized based on our ownership interest in the earnings (loss) of each of the unconsolidated investments, and is recorded in Equity in earnings (losses) from investments in JV Properties in the accompanying consolidated statements of operations. For the three months ended March 31, 2024 and 2023, we recorded net aggregate loss of approximately $0.3 million and $0.4 million respectively, from our equity in earnings related to our unconsolidated real estate ventures in Canada.

The following table summarizes our 50% ownership interests in investments in unconsolidated real estate ventures in Canada (the “JV Properties”):

JV Property	Date Real Estate Venture Became Operational	Carrying Value of Investment as of March 31, 2024		Carrying Value of Investment as of December 31, 2023
Dupont (1)(6)	October 2019	$	3,820,653	$	3,974,813
East York (2)(6)	June 2020		5,562,486		5,662,757
Brampton (2)(6)	November 2020		1,939,756		1,974,811
Vaughan (2)(6)	January 2021		2,231,788		2,297,273
Oshawa (2)(6)	August 2021		1,243,591		1,274,680
Scarborough (2)(5)	November 2021		2,290,734		2,342,720
Aurora (1)(5)	December 2022		2,309,078		2,480,800
Kingspoint (2)(5)	March 2023		3,745,425		3,947,014
Markham (1)(5)	Under Development		2,514,941		2,063,919
Regent (3)	Under Development		2,687,266		2,737,202
Whitby (4)	January 2024		7,809,878		7,075,611
		$	36,155,596	$	35,831,600

(1)These joint venture properties were acquired through the SSGT II Merger, which closed on June 1, 2022.

(2)These joint venture properties were acquired through the SST IV Merger, which closed on March 17, 2021.

(3)This property is currently leased as a single tenant industrial lease. The joint venture plans to develop this property into a self storage facility in the future.

(4)This property was acquired on January 12, 2023 in connection with a purchase agreement assumed in the SSGT II Merger.

(5)As of March 31, 2024, these properties were encumbered by first mortgages pursuant to the SmartCentres Financings (defined below).

(6)As of March 31, 2024, these properties were encumbered by first mortgages pursuant to the RBC JV Term Loan (defined below).

RBC JV Term Loan

On November 3, 2023, we closed on a $70 million CAD term loan (the “RBC JV Term Loan”) with Royal Bank of Canada (“RBC”) pursuant to which five of our joint venture subsidiaries that each own 50% of a Joint Venture property serve as borrowers (the “RBC Borrowers”). The RBC JV Term Loan is secured by first mortgages on five of the JV Properties which were previously encumbered by the SmartCentres Financings (as defined below). The maturity date of the RBC JV Term Loan is November 2, 2025, which may be requested to be extended by one additional year by the RBC Borrowers, subject to the approval of RBC in its sole and absolute discretion. Interest on the RBC JV Term Loan is a fixed annual rate of 6.21%, and payments are interest only during the term of the loan.

We and SmartCentres each serve as a full recourse guarantor with respect to 50% of the secured obligations under the RBC JV Term Loan. The RBC JV Term Loan contains certain customary representations and warranties, affirmative, negative and financial covenants, and events of default. Pursuant to the terms of the RBC JV Term Loan, a failure by either us or SmartCentres to observe any negative covenant under each of our respective (and separate) credit facilities (“Separate Credit Facilities”) would be an event of default under the RBC JV Term Loan; in addition, certain actions by either us or SmartCentres may trigger an event of default under the RBC JV Term Loan. We and SmartCentres entered into a separate Cross-Indemnity Agreement pursuant to which we and SmartCentres have each agreed to indemnify the other party with respect to any claims arising from a breach or default of the other party pursuant to the RBC JV Term Loan or the Separate Credit Facilities.

The majority of net proceeds from the RBC JV Term Loan were used to fully repay the allocated loan amounts of approximately $68.9 million CAD under the SmartCentres Financings (as defined below) for each of the five JV Properties.

As of March 31, 2024, $70.0 million CAD or approximately $51.7 million in USD, was outstanding on the RBC JV Term Loan.

SmartCentres Financings

In connection with the SST IV Merger, we, through our acquisition of the Oshawa, East York, Brampton, Vaughan, and Scarborough joint venture partnerships, also became party to a master mortgage commitment agreement (the “MMCA I”) with SmartCentres Storage Finance LP (the “SmartCentres Lender”) (the “SmartCentres Loan I”). The SmartCentres Lender is an affiliate of SmartCentres. On August 18, 2021, the Kingspoint Property was added to the MMCA I, increasing the available capacity.

On June 1, 2022, in connection with the SSGT II Merger, we assumed another loan with the SmartCentres Lender. SSGT II had previously entered into a master mortgage commitment agreement on April 30, 2021, which was subsequently modified on October 22, 2021 (the “MMCA II”), with the SmartCentres Lender in the amount of up to approximately $34.3 million CAD (the “SmartCentres Loan II”) (collectively with SmartCentres Loan I, the “SmartCentres Financings”). The borrowers under the SmartCentres Loan II are the joint venture entities in which we (SSGT II prior to June 1, 2022), and SmartCentres each hold a 50% limited partnership interest with respect to the Dupont and Aurora joint venture properties. In connection with the SmartCentres Loan II assumption, we became a recourse guarantor for 50% of the SmartCentres Financings. On September 13, 2022, the Markham Property was added to the MMCA II, increasing the available capacity.

The SmartCentres Loan I and SmartCentres Loan II have an accordion feature such that borrowings pursuant thereto may be increased up to approximately $120 million CAD each, subject to certain conditions set forth in the MMCA I and MMCA II agreements. Additionally, pursuant to the MMCA agreements, the collective borrowings between all SmartCentres

Financings, and loans made by the SmartCentres Lender to our affiliates, are limited to an overall combined capacity of $120 million CAD.

As of March 31, 2024, approximately $60.7 million CAD or approximately $44.8 million in USD, was outstanding on the SmartCentres Financings. As of December 31, 2023, approximately $57.3 million CAD or approximately $43.3 million USD was outstanding on the SmartCentres Financings. The proceeds of the SmartCentres Financings have been and will generally be used to finance the acquisition, development, and construction of the JV Properties.

Interest on the SmartCentres Financings is a variable annual rate equal to the aggregate of: (i) the BA Equivalent Rate, plus: (ii) a margin based on the External Credit Rating, plus (iii) a margin under the Senior Credit Facility, each as defined and described further in the MMCA I and MMCA II. As of March 31, 2024, the total interest rate was approximately 7.7%.

The SmartCentres Financings, as amended, had a maturity date of May 11, 2024. Subsequent to quarter end, the SmartCentres Financings were amended, extending the maturity date to May 11, 2026, among other changes. Monthly interest payments initially increase the outstanding principal balance. Upon a JV Property generating sufficient net cash flow, the SmartCentres Financings provide for the commencement of quarterly payments of interest. The borrowings advanced pursuant to the SmartCentres Financings may be prepaid without penalty, subject to certain conditions set forth in the MMCA I and MMCA II.

The SmartCentres Financings contain customary affirmative and negative covenants, agreements, representations, warranties and borrowing conditions (including a loan to value ratio of no greater than 70% with respect to each JV Property) and events of default, all as set forth in the MMCA I and MMCA II. We serve as a full recourse guarantor with respect to 50% of the SmartCentres Financings. As of March 31, 2024, the joint ventures were in compliance with all such covenants.

XML

Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt

Note 5. Debt

Our debt is summarized as follows:

Loan	March 31, 2024			December 31, 2023			Interest Rate			Maturity Date
KeyBank CMBS Loan(1)	$	90,593,188		$	91,041,968			3.89	%	8/1/2026
Ladera Office Loan		3,808,862			3,832,774			4.29	%	11/1/2026
2024 Credit Facility (8)		520,880,891			—			7.09	%	2/22/2027
2027 NBC Loan (6) (7)		55,372,500			—			7.55	%	3/7/2027
KeyBank Florida CMBS Loan(2)		50,542,392			50,750,997			4.65	%	5/1/2027
2028 Canadian Term Loan (6)		81,213,000			82,973,000			6.41	%	12/1/2028
CMBS Loan(3)		104,000,000			104,000,000			5.00	%	2/1/2029
SST IV CMBS Loan (4)		40,500,000			40,500,000			3.56	%	2/1/2030
2032 Private Placement Notes (5)		150,000,000			150,000,000			5.28	%	4/19/2032
Credit Facility Term Loan - USD		—			250,000,000
Credit Facility Revolver - USD		—			318,688,429
Discount on secured debt, net		(76,991	)		(80,227	)
Debt issuance costs, net		(3,633,319	)		(4,305,607	)
Total debt	$	1,093,200,523		$	1,087,401,334

(1)This fixed rate loan encumbers 29 properties (Whittier, La Verne, Santa Ana, Upland, La Habra, Monterey Park, Huntington Beach, Chico, Lancaster I, Riverside, Fairfield, Lompoc, Santa Rosa, Federal Heights, Aurora, Littleton, Bloomingdale, Crestwood, Forestville, Warren I, Sterling Heights, Troy, Warren II, Beverly, Everett, Foley, Tampa, Boynton Beach, and Lancaster II) with monthly interest only payments until September 2021, at which time both interest and principal payments became due monthly. The separate assets of these encumbered properties are not available to pay our other debts.

(2)This fixed rate loan encumbers five properties (Pompano Beach, Lake Worth, Jupiter, Royal Palm Beach, and Delray) with monthly interest only payments until June 2022, at which time both interest and principal payments became due monthly. The separate assets of these encumbered properties are not available to pay our other debts.

(3)This fixed rate, interest only loan encumbers 10 properties (Myrtle Beach I, Myrtle Beach II, Port St. Lucie, Plantation, Sonoma, Las Vegas I, Las Vegas II, Las Vegas III, Ft Pierce, and Nantucket Island). The separate assets of these encumbered properties are not available to pay our other debts.

(4)On March 17, 2021, in connection with the SST IV Merger, we assumed a $40.5 million fixed rate CMBS financing with KeyBank as the initial lender pursuant to a mortgage loan (the “SST IV CMBS Loan”). This fixed rate loan encumbers seven properties owned by us (Jensen Beach, Texas City, Riverside, Las Vegas IV, Puyallup, Las Vegas V, and Plant City). The separate assets of these encumbered properties are not available to pay our other debt. The loan has a maturity date of February 1, 2030. Monthly payments due under the loan agreement (the “SST IV CMBS Loan Agreement”) are interest only, with the full principal amount becoming due and payable on the maturity date.

(5)As of March 31, 2023, a Total Leverage Ratio Event (as defined below) had occurred, and the interest rate on such Note increased to 5.28% prospectively. For additional information regarding this loan, see 2032 Private Placement Notes below.

(6)The amounts shown above are in USD based on the foreign exchange rate in effect as of the date presented.

(7)This loan incurs interest at an all in rate of CORRA (as defined below), plus a CORRA adjustment of approximately 0.30%, plus a spread of 2.20%. The effective interest rate on this loan is 6.42% when factoring the effects of a CORRA Swap which we entered into with the National Bank of Canada for the initial term of the loan. The Dufferin, Oakville II, Burlington II, Iroquois Shore Rd, and Stoney Creek I properties are encumbered by this loan. See Note 7 – Derivative Instruments for additional information.

(8)During the three months ended March 31, 2024, this loan incurred interest at daily simple secured overnight financing rate ("SOFR") plus a spread of 1.65% and a SOFR index adjustment of 0.10% (the "SOFR Index

Adjustment"). As of April 1, 2024, our consolidated leverage ratio was within the second leverage tier, whereby interest began accruing at daily simple SOFR plus a spread of 1.85%, plus the SOFR Index Adjustment.

The weighted average interest rate on our consolidated debt, excluding the impact of our interest rate hedging activities, as of March 31, 2024 was approximately 6.1%. We are subject to certain restrictive covenants, as amended, relating to the outstanding debt, and as of March 31, 2024, we were in compliance with all such covenants.

2024 Credit Facility

On February 22, 2024, we through our Operating Partnership (the “Borrower”), entered into an amended and restated revolving credit facility with KeyBank, National Association, as administrative agent and collateral agent, certain others listed as joint book runners, joint lead arrangers, syndication agents and documentation agents, and certain other lenders party thereto, (the "2024 Credit Facility"). The 2024 Credit Facility replaces the Credit Facility (defined below) the Company entered into on March 17, 2021, and has a maturity date of February 22, 2027.

The aggregate commitment of the 2024 Credit Facility is $650 million. The Borrower has the right to request to increase the commitment amount available under the 2024 Credit Facility by an additional $850 million, for a total potential maximum aggregate amount of $1.5 billion, subject to certain conditions. The 2024 Credit Facility also includes sublimits of (a) up to $25 million for letters of credit and (b) up to $25 million for swingline loans; each of these sublimits are part of, and not in addition to, the amounts available under the 2024 Credit Facility. Borrowings under the 2024 Credit Facility may be in either U.S. dollars or Canadian dollars. Upon the closing of the 2024 Credit Facility, we immediately drew down an aggregate amount of $576 million, which was used primarily to pay off the amounts outstanding under the Credit Facility.

The maturity date of the 2024 Credit Facility is February 22, 2027, subject to a one-year extension option, subject to the payment of an extension fee of 0.20% on the aggregate amount of the then-outstanding revolving commitments for such extension, and it may be prepaid or terminated at any time without penalty; provided, however, that the lenders shall be indemnified for certain breakage costs.

Amounts borrowed under the 2024 Credit Facility bear interest based on the type of borrowing (either Base Rate Loans, Daily Simple SOFR Loans, Term SOFR Loans or CORRA Loans, each as defined in the 2024 Credit Facility). Base Rate Loans bear interest at the lesser of (x) the Base Rate (as defined in the 2024 Credit Facility) plus the applicable rate, or (y) the maximum rate. Daily Simple SOFR Loans bear interest at the lesser of (a) Adjusted Daily Simple SOFR (as defined in the 2024 Credit Facility) plus the applicable rate, or (b) the maximum rate. Term SOFR Loans bear interest at the lesser of (a) Term SOFR (as defined in the 2024 Credit Facility) for the interest period in effect plus the applicable rate, or (b) the maximum rate. CORRA Loans bear interest at the lesser of (a) Adjusted Daily Simple CORRA (as defined in the 2024 Credit Facility) plus the applicable rate, or (b) the maximum rate. The corresponding applicable rate varies between (i) prior to a Security Interest Termination Event (defined below), 165 basis points to 230 basis points for Daily Simple SOFR Loans, Term SOFR Loans and CORRA Loans and between 65 basis points and 130 basis points for Base Rate Loans, in each case of this clause (i), depending on the consolidated leverage ratio of the Company and (ii) following a Security Interest Termination Event, 140 basis points to 225 basis points for Daily Simple SOFR Loans, Term SOFR Loans and CORRA Loans and between 40 basis points and 125 basis points for Base Rate Loans, in each case of this clause (ii), depending on the consolidated capitalization rate leverage ratio of the Company. Initial advances under the 2024 Credit Facility are Daily Simple SOFR Loans that bear interest at 175 basis points over Adjusted Daily Simple SOFR. The 2024 Credit Facility is also subject to an annual unused fee based upon the average amount of the unused portion of the 2024 Credit Facility, which varies from 15 bps to 25 bps, depending on the size of the unused amount, as well as whether a Security Interest Termination Event has occurred.

As of March 31, 2024, borrowings under the 2024 Credit Facility only bore interest based on Daily Simple SOFR. The rate spread above Daily Simple SOFR at which the 2024 Credit Facility incurs interest is subject to increase based on the consolidated leverage ratio. There are five leverage tiers under the 2024 Credit Facility, with the highest tier limited to a maximum leverage of 60% and a maximum spread of 230 basis points on the 2024 Credit Facility. During the three months ended March 31, 2024, this loan incurred interest at daily simple SOFR plus a spread of 1.65% and the SOFR Index Adjustment of 0.10%. As of April 1, 2024, our consolidated leverage ratio was within the second leverage tier, whereby interest began accruing at daily simple SOFR plus a spread of 1.85%, plus the SOFR Index Adjustment.

The 2024 Credit Facility is fully recourse, jointly and severally, to us, the Borrower, and certain of our subsidiaries (the “Subsidiary Guarantors”). In connection with the 2024 Credit Facility, we, the Borrower and the Subsidiary Guarantors executed guarantees in favor of the lenders. It is an event of default under the 2024 Credit Facility if (a) there is a payment

default by us, the Borrower or any Subsidiary Guarantor under any recourse debt for borrowed money, (b) there is a payment default by us or any of its subsidiaries under any non-recourse debt of at least $75 million or (c) prior to a Security Interest Termination Event, an event of default occurs under the 2032 Private Placement Notes.

The 2024 Credit Facility is initially secured by a pledge of equity interests in the Subsidiary Guarantors. However, upon the achievement of certain security interest termination conditions, the pledges shall be released and the 2024 Credit Facility shall become unsecured (the “Security Interest Termination Event”). The Security Interest Termination Event occurs at the Borrower’s election, once the Borrower satisfies all of the following security interest termination conditions: (i) a fixed charge coverage ratio of no less than 1.50:1.00; (ii) an unsecured interest coverage ratio of not less than 2.00:1.00; (iii) a consolidated capitalization rate leverage ratio of not greater than 60%; and (iv) a secured debt ratio of no greater than 40%. Following the occurrence of the Security Interest Termination Event, certain terms and conditions of the 2024 Credit Facility are modified, including, but not limited to: (i) in certain circumstances, a reduction in the applicable rate under the 2024 Credit Facility, (ii) the modification or addition of certain financial covenants, (iii) the addition of a floor of at least $25 million for any cross-defaulted recourse debt of us, Borrower or any Subsidiary Guarantor, and (iv) in certain circumstances, a reduction in the annual unused fee for the 2024 Credit Facility. The outstanding 2032 Private Placement Notes previously issued by us remain pari passu with the 2024 Credit Facility.

The 2024 Credit Facility contains certain customary representations and warranties, affirmative, negative and financial covenants, borrowing conditions, and events of default. In particular, the financial covenants imposed on us include: a maximum leverage ratio, a minimum fixed charge coverage ratio, a minimum tangible net worth, certain limits on both secured debt and secured recourse debt, certain payout ratios of dividends paid to adjusted funds from operations, limits on unhedged variable rate debt, and minimum liquidity. If an event of default occurs and continues, the Borrower is subject to certain actions by the administrative agent, including, without limitation, the acceleration of repayment of all amounts outstanding under the 2024 Credit Facility.

As of March 31, 2024, 89 of our wholly-owned properties were encumbered by the 2024 Credit Facility, and we had borrowed approximately $521 million of the $650 million maximum potential current commitment of the 2024 Credit Facility. The availability of the Credit Facility is subject to certain calculations, including a debt service coverage ratio (“DSCR”) calculation which utilizes prevailing treasury rates within the calculation. As of March 31, 2024, based on the aforementioned and other borrowing base calculations, we had the ability to draw up to an additional approximately $58.4 million on the current capacity of the revolver.

2027 NBC Loan

On March 7, 2024, we, through five of our wholly-owned Canadian subsidiaries (the “2027 NBC Loan Borrowers”), entered into a loan with National Bank of Canada (“NBC”) as administrative agent, National Bank Financial as lead arranger and sole bookrunner, and certain other lenders party thereto, (the “2027 NBC Loan”). On such date, we drew the maximum aggregate borrowing of $75 million CAD pursuant to the 2027 NBC Loan. This loan is secured by the five properties owned by the 2027 NBC Loan Borrowers (the “Secured NBC Properties”).

Previously, four of the Secured NBC Properties were included in the borrowing base of the 2024 Credit Facility, and the other property was previously unencumbered. The net proceeds from the 2027 NBC Loan were used to pay down the 2024 Credit Facility by approximately $55.1 million USD, and accordingly, the respective four properties were released as collateral from the 2024 Credit Facility.

The 2027 NBC Loan has a maturity date of March 7, 2027, which may be extended for additional one-year periods in the discretion of the lenders. The 2027 NBC Loan carries a variable interest rate based on either the Canadian Overnight Repo Rate Average (“CORRA”) or the Canadian Prime Rate. As of March 31, 2024, borrowings under the 2027 NBC Loan were subject to interest at the CORRA rate, plus a CORRA adjustment of approximately 0.30%, plus a spread of 2.20%.

On March 12, 2024, we entered into an interest rate swap agreement based on CORRA with NBC whereby, inclusive of the swap we fixed the interest rate on the NBC loan at 6.42% for the initial three year term of the loan. The 2027 NBC Loan requires monthly amortizing principal and interest payments, which are based on a 25-year amortization schedule. The 2027 NBC Loan may be prepaid, in whole or in part, at any time upon prior written notice to the lenders, subject to interest rate swap breakage costs. SmartStop and the 2027 NBC Loan Borrowers provided an indemnity in favor of NBC and the lenders for certain environmental matters. SmartStop serves as a non-recourse guarantor, and each borrower provided a limited recourse guaranty up to the amount of the collateral pledged by it, under the 2027 NBC Loan.

2032 Private Placement Notes

On April 19, 2022, we as guarantor, and our Operating Partnership as issuer, entered into a note purchase agreement (the “Note Purchase Agreement”) which provides for the private placement of $150 million of 4.53% Senior Notes due April 19, 2032 (the “2032 Private Placement Notes”). The sale and purchase of the 2032 Private Placement Notes occurred in two closings, with the first of such closings having occurred on April 19, 2022 with $75 million aggregate principal amount of the 2032 Private Placement Notes having been issued on such date (the “First Closing”) and the second of such closings having occurred on May 25, 2022 with $75 million aggregate principal amount of the 2032 Private Placement Notes having been issued on such date (the “Second Closing”). Interest on each series of the 2032 Private Placement Notes is payable semiannually on the nineteenth day of April and October in each year.

Interest payable on the Notes was originally subject to a prospective 75 basis points increase, if, as of March 31, 2023, the ratio of total indebtedness to EBITDA (the “Total Leverage Ratio”) of the Company and its subsidiaries, on a consolidated basis, was greater than 7.00 to 1.00 (a “Total Leverage Ratio Event”).

As of March 31, 2023, such Total Leverage Ratio Event occurred, and our 2032 Private Placement Notes began accruing interest at a rate of 5.28%. The interest accruing on the 2032 Private Placement Notes will continue to accrue at 5.28% until such time as the Total Leverage Ratio is less than or equal to 7.00 to 1.00 for two consecutive fiscal quarters, upon such achievement, the applicable fixed interest rate will revert to 4.53% and remain at that interest rate through maturity, regardless of our future Total Leverage Ratio.

We are permitted to prepay at any time all, or from time to time, any part of the Notes in amounts not less than 5% of the 2032 Private Placement Notes then outstanding at (i) 100% of the principal amount so prepaid and (ii) the make-whole amount (as defined in the Note Purchase Agreement). The “Make-Whole Amount” is equal to the excess, if any, of the discounted value of the remaining scheduled payments with respect to the 2032 Private Placement Notes being prepaid over the amount of such 2032 Private Placement Notes. In addition, in connection with a change of control (as defined in the Note Purchase Agreement), the Operating Partnership is required to offer to prepay the 2032 Private Placement Notes at 100% of the principal amount plus accrued and unpaid interest thereon, but without the Make Whole Amount or any other prepayment premium or penalty of any kind. The Company must also maintain a debt rating of the 2032 Private Placement Notes by a rating agency.

The Note Purchase Agreement contains certain customary representations and warranties, affirmative, negative and financial covenants, and events of default that were substantially similar to the previously existing Credit Facility (defined below). The 2032 Private Placement Notes were issued on a pari passu basis with the previously existing Credit Facility, and are pari passu with the 2024 Credit Facility. As such, the Company and certain of its subsidiaries (the “Subsidiary Guarantors”) fully and unconditionally guarantee the Operating Partnership’s obligations under the 2032 Private Placement Notes. The 2032 Private Placement Notes were initially secured by a pledge of equity interests in the Subsidiary Guarantors on similar terms as the previously existing Credit Facility.

On April 26, 2024, we amended the Note Purchase Agreement dated April 19, 2022 (the “NPA Amendment”). The primary purpose of the NPA Amendment was to make certain conforming changes between the Note Purchase Agreement and our recently amended and restated revolving credit facility, the 2024 Credit Facility. In particular, the NPA Amendment conformed certain of the definitions related to the financial tests that we are required to maintain, as well as certain of the property pool covenants we are required to satisfy, in the Note Purchase Agreement during the term thereof to those in the 2024 Credit Facility.

Credit Facility

On March 17, 2021, we, through our Operating Partnership (the “Borrower”), entered into a credit facility with KeyBank, National Association, as administrative agent, KeyBanc Capital Markets, Inc., Wells Fargo Securities, Citibank, N.A., and BMO Capital Markets, Corp., as joint book runners and joint lead arrangers, and certain other lenders party thereto (the “Credit Facility”).

The initial aggregate amount of the Credit Facility was $500 million, which consisted of a $250 million revolving credit facility (the “Credit Facility Revolver”) and a $250 million term loan (the “Credit Facility Term Loan”).

On October 7, 2021, the Borrower and lenders who were party to the Credit Facility amended the Credit Facility to increase the commitment on the Credit Facility Revolver by $200 million for a total commitment of $450 million. In connection with the increased commitments, additional lenders were added to the Credit Facility. The commitments on the Credit Facility Term Loan remained unchanged. As a result of this amendment, the aggregate commitment on the Credit Facility was $700 million.

The maturity date of the Credit Facility Revolver was March 17, 2024, subject to a one-year extension option, at our election. The maturity date of the Credit Facility Term Loan was March 17, 2026. The Credit Facility was repaid in full on February 22, 2024 in connection with the establishment of the 2024 Credit Facility.

The following table presents the future principal payments required on outstanding debt as of March 31, 2024:

2024	$	2,787,760
2025		3,969,391
2026		94,321,605
2027		623,059,664
2028		78,272,413
2029 and thereafter		294,500,000
Total payments		1,096,910,833
Discount on secured debt		(76,991	)
Debt issuance costs, net		(3,633,319	)
Total	$	1,093,200,523

XML

Preferred Equity

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Preferred Equity

Note 6. Preferred Equity

Series A Convertible Preferred Stock

On October 29, 2019 (the “Commitment Date”), we entered into a preferred stock purchase agreement (the “Purchase Agreement”) with Extra Space Storage LP (the “Investor”), a subsidiary of Extra Space Storage Inc. (NYSE: EXR), pursuant to which the Investor committed to purchase up to $200 million in preferred shares (the aggregate shares to be purchased, the “Preferred Shares”) of our new Series A Convertible Preferred Stock (the “Series A Convertible Preferred Stock”), in one or more closings (each, a “Closing,” and collectively, the “Closings”). The initial closing (the “Initial Closing”) in the amount of $150 million occurred on the Commitment Date, and the second and final closing in the amount of $50 million occurred on October 26, 2020. We incurred approximately $3.6 million in issuance costs related to the Series A Convertible Preferred Stock, which were recorded as a reduction to Series A Convertible Preferred stock on our consolidated balance sheets.

The shares of Series A Convertible Preferred Stock rank senior to all other shares of our capital stock, including our common stock, with respect to rights to receive dividends and to participate in distributions or payments upon any voluntary or involuntary liquidation, dissolution or winding up of the Company. Dividends payable on each share of Series A Convertible Preferred Stock will initially be equal to a rate of 6.25% per annum. If the Series A Convertible Preferred Stock has not been redeemed on or prior to the fifth anniversary date of the Initial Closing (October 29, 2024), the dividend rate will increase an additional 0.75% per annum each year thereafter to a maximum of 9.0% per annum until the tenth anniversary of the Initial Closing, at which time the dividend rate shall increase 0.75% per annum each year thereafter until the Series A Convertible Preferred Stock is redeemed or repurchased in full. The dividends are payable in arrears for the prior calendar quarter on or before the 15th day of March, June, September and December of each year.

Upon any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of Series A Convertible Preferred Stock will be entitled to receive a payment equal to the greater of (i) aggregate purchase price of all outstanding Preferred Shares, plus any accrued and unpaid dividends (the “Liquidation Amount”) and (ii) the amount that would have been payable had the Preferred Shares been converted into common stock pursuant to the terms of the Purchase Agreement immediately prior to such liquidation.

Subject to certain additional redemption rights, as described herein, we have the right to redeem the Series A Convertible Preferred Stock for cash at any time following the fifth anniversary of the Initial Closing. The amount of such

redemption will be equal to the Liquidation Amount. Upon the listing of our common stock on a national securities exchange (the “Listing”), we have the right to redeem any or all outstanding Series A Convertible Preferred Stock at an amount equal to the greater of (i) the amount that would have been payable had such Preferred Shares been converted into common stock pursuant to the terms of the Purchase Agreement immediately prior to the Listing, and then all of such Preferred Shares were sold in the Listing, or (ii) the Liquidation Amount, plus a premium amount (the “Premium Amount”) of 10%, 8%, 6%, 4%, or 2% if redeemed prior to the first, second, third, fourth, or fifth anniversary dates of issuance, respectively, or 0% if redeemed thereafter, as set forth in the Articles Supplementary. Upon a change of control event, we have the right to redeem any or all outstanding Series A Convertible Preferred Stock at an amount equal to the greater of (i) the amount that would have been payable had the Preferred Shares been converted into common stock pursuant to the terms of the Purchase Agreement immediately prior to such change of control or (ii) the Liquidation Amount, plus the Premium Amount, as set forth in the Articles Supplementary. In addition, subject to certain cure provisions, if we fail to maintain our status as a real estate investment trust, the holders of Series A Convertible Preferred Stock have the right to require us to repurchase the Series A Convertible Preferred Stock at an amount equal to the Liquidation Amount with no Premium Amount.

Subject to our redemption rights in the event of a listing or change of control described above, upon the earlier to occur of (i) the second anniversary of the Initial Closing or (ii) 180 days after a Listing, the holders of Series A Convertible Preferred Stock have the right to convert any or all of the Series A Convertible Preferred Stock held by such holders into common stock at a rate per share equal to the quotient obtained by dividing the Liquidation Amount by the conversion price. The conversion price is $10.66, as may be adjusted in connection with stock splits, stock dividends and other similar transactions.

The holders of Series A Convertible Preferred Stock are not entitled to vote on any matter submitted to a vote of our stockholders, except that in the event that the dividend for the Series A Convertible Preferred Stock has not been paid for at least four quarters (whether or not consecutive), the holders of Series A Convertible Preferred Stock have the right to vote together with our stockholders on any matter submitted to a vote of our stockholders, upon which the holders of the Series A Convertible Preferred Stock and holders of common stock shall vote together as a single class. The number of votes applicable to a share of Series A Convertible Preferred Stock will be equal to the number of shares of common stock a share of Series A Convertible Preferred Stock could have been converted into as of the record date set for purposes of such stockholder vote. This foregoing limited voting right shall cease when all past dividend periods have been paid in full. In addition, the affirmative vote of the holders of a majority of the outstanding shares of Series A Convertible Preferred Stock is required in certain customary circumstances, as well as other circumstances, such as (i) our real estate portfolio exceeding a leverage ratio of 60% loan-to-value, (ii) entering into certain transactions with our Executive Chairman as of the Commitment Date, or his affiliates, (iii) effecting a merger (or similar) transaction with an entity whose assets are not at least 80% self storage related and (iv) entering into any line of business other than self storage and ancillary businesses, unless such ancillary business represents revenues of less than 10% of our revenues for our last fiscal year.

In connection with the issuance of the Series A Convertible Preferred Stock, we and the Investor also entered into an investors’ rights agreement (the “Investors’ Rights Agreement”) which provides the Investor with certain customary protections, including demand registration rights and “piggyback” registration rights with respect to our common stock issued to the Investor upon conversion of the Preferred Shares.

As of March 31, 2024, there were 200,000 Preferred Shares outstanding with an aggregate liquidation preference of approximately $203.1 million, which consists of $150 million from the Initial Closing, $50 million from a closing on October 26, 2020 and approximately $3.1 million of accumulated and unpaid distributions. As of December 31, 2023, there were 200,000 Preferred Shares outstanding with an aggregate liquidation preference of approximately $203.2 million, which consists of $150 million from the Initial Closing, $50 million from a closing on October 26, 2020 and approximately $3.2 million of accumulated and unpaid distributions.

XML

Derivative Instruments

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 7. Derivative Instruments

Interest Rate Derivatives

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 have used interest rate swaps and caps as part of our interest rate risk management strategy.

For interest rate derivatives designated and qualified as a hedge for GAAP purposes, the change in the fair value of the effective portion of the derivative is recorded in accumulated other comprehensive income (loss) (“AOCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in AOCI related to such derivatives will be reclassified to interest expense as interest payments are made on our variable rate debt. In addition, we classify cash flows from qualifying cash flow hedging relationships in the same category as the cash flows from the hedged items in our consolidated statements of cash flows. We do not use interest rate derivatives for trading or speculative purposes.

Interest rate derivatives not designated as hedges for GAAP are not speculative and are used to manage our exposure to interest rate movements and other identified risks but we have elected not to apply hedge accounting. Changes in the fair value of interest rate derivatives not designated in hedging relationships are recorded in other income (expense) within our consolidated statements of operations.

Foreign Currency Hedges

Our objectives in using foreign currency derivatives are to add stability to potential fluctuations in exchange rates between foreign currencies and the U.S. dollar and to manage our exposure to exchange rate movements. To accomplish this objective, we have used foreign currency forwards and foreign currency options as part of our exchange rate risk management strategy. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. By entering into the forward contract and holding it to maturity, we are locked into a future currency exchange rate in an amount equal to and for the term of the forward contract. A foreign currency option contract is a commitment by the seller of the option to deliver, solely at the option of the buyer, a certain amount of currency at a certain price on a specific date.

For derivatives designated as net investment hedges for GAAP purposes, the changes in the fair value of the derivatives are reported in accumulated other comprehensive income. Amounts are reclassified out of accumulated other comprehensive income (loss) into earnings when the hedged net investment is either sold or substantially liquidated. The change in the value of the designated portion of our settled and unsettled foreign currency hedges is recorded net in foreign currency hedge contract gain (loss) in our consolidated statements of comprehensive income (loss) in the related period.

The change in the value of the portion of our settled and unsettled foreign currency hedges that is not designated for hedge accounting for GAAP is recorded in other income (expense) within our consolidated statements of operations and represented a gain of approximately $1.4 million and a loss of approximately $0.4 million for the three months ended March 31, 2024 and 2023, respectively.

On April 12, 2021, we entered into an approximately $125.9 million CAD currency forward with a settlement date of April 12, 2023. On April 12, 2023, we settled this foreign currency forward and received approximately USD $6.4 million, and simultaneously entered into a new approximately $134.4 million CAD currency forward with a maturity date of July 6, 2023. On July 5, 2023, we settled this foreign currency forward and paid approximately USD $1.2 million, and simultaneously entered into a new approximately $132.4 million CAD currency forward with a settlement date of April 12, 2024. On April 12, 2024, we settled this hedge and we received approximately USD $3.5 million. We simultaneously entered into a new foreign currency hedge with a notional amount of $136,476,000 CAD at a strike rate of 1.3648 which matures on April 11, 2025.

On October 12, 2022, we entered into a new $137.7 million CAD currency forward with a settlement date of October 12, 2023. On October 11, 2023, we rolled this hedge without any cash settlement, extending the maturity date to November 9, 2023 at a strike rate of 1.3766, and notional of $137,664,000 CAD. On November 9, 2023, we rolled this hedge without any cash settlement, extending the maturity date to November 16, 2023 at a strike rate of 1.3767, and notional of $137,669,000 CAD. On November 16, 2023, this hedge matured, and without any cash settlement, we simultaneously entered into a new $30.0 million CAD currency forward with a maturity date of January 16, 2024, and a strike rate of 1.3782. On January 16, 2024 we rolled this hedge without any cash settlement, effectively extending the maturity date to February 15, 2024 at a strike rate of 1.3781. Additionally, on February 16, 2024 we further rolled this hedge without any cash settlement at a strike

rate of 1.3781. This hedge ultimately matured on March 7, 2024 whereby we owed and paid approximately $0.5 million at settlement.

In connection with the 2027 NBC Loan borrowing, on March 12, 2024, we entered into a CORRA Swap with NBC with a notional amount of CAD $75,000,000 at a rate of 3.926% for the initial duration of the 2027 NBC Loan, maturing on March 7, 2027.

The following table summarizes the terms of our derivative financial instruments as of March 31, 2024:

	Notional Amount		Strike			Effective Date or Date Assumed	Maturity Date
Interest Rate Derivatives:
SOFR Cap	$	125,000,000		2.00	%	June 1, 2022	June 28, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 1, 2025
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
CORRA Swap (1)	$	75,000,000		3.93	%	March 12, 2024	March 7, 2027
Foreign Currency Forwards:
Denominated in CAD (1)(2)	$	132,350,000		1.3273		July 5, 2023	April 12, 2024

(1)Notional amounts shown are denominated in CAD.

(2)On April 12, 2024, we settled this hedge and we received approximately $3.5 million. We simultaneously entered into a new foreign currency hedge with a notional amount of $136,476,000 CAD at a strike rate of 1.3648 which matures on April 11, 2025.
 

The following table summarizes the terms of our derivative financial instruments as of December 31, 2023:

	Notional Amount		Strike			Effective Date or Date Assumed	Maturity Date
Interest Rate Derivatives:
SOFR Cap	$	125,000,000		2.00	%	June 1, 2022	June 28, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 1, 2025
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
Foreign Currency Forwards:
Denominated in CAD (1)	$	132,350,000		1.3273		July 5, 2023	April 12, 2024
Denominated in CAD (1) (2)	$	30,000,000		1.3782		November 16, 2023	January 16, 2024

(1)Notional amount shown is denominated in CAD.

(2)On January 16, 2024 we rolled this hedge without any cash settlement, effectively extending the maturity date to February 15, 2024 at a strike rate of 1.3781. Additionally, on February 16, 2024 we further rolled this hedge without any cash settlement at a strike rate of 1.3781. This hedge ultimately matured on March 7, 2024 whereby we owed and paid approximately $0.5 million at settlement.

The following tables present a gross presentation of the fair value of our derivative financial instruments as well as their classification on our consolidated balance sheets as of March 31, 2024 and December 31, 2023:

	Asset/Liability Derivatives
	Fair Value
Balance Sheet Location	March 31, 2024		December 31, 2023
Interest Rate Derivatives
Other assets	$	2,592,468	$	3,485,281
Accounts payable and accrued liabilities	$	101,787	$	—
Foreign Currency Hedges
Other assets	$	2,247,494	$	—
Accounts payable and accrued liabilities	$	—	$	985,412

The following tables presents the effect of our derivative financial instruments designated for hedge accounting, on our consolidated statements of operations for the periods presented:

	Gain (loss) recognized in OCI for the three months ended March 31,						Location of amounts reclassified from OCI into income	Gain (loss) reclassified from OCI for the three months ended March 31,
Type	2024			2023				2024		2023
Interest Rate Swaps	$	(60,369	)	$	-		Interest expense	$	41,418	$	45,546
Interest Rate Caps		468,248			(526,318	)	Interest expense		873,134		921,477
Foreign Currency Forwards		1,355,914			(91,616	)	N/A		-		-
	$	1,763,793		$	(617,934	)		$	914,552	$	967,023

Based on the forward rates in effect as of March 31, 2024, we estimate that approximately $1.0 million related to

our qualifying cash flow hedges will be reclassified to reduce interest expense during the next 12 months.

XML

Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 8. Income Taxes

As a REIT, we generally will not be subject to U.S. federal income tax on taxable income that we distribute to our stockholders. However, certain of our consolidated subsidiaries are taxable REIT subsidiaries, which are subject to federal, state and foreign income taxes. We have filed an election to treat our primary TRS as a taxable REIT subsidiary effective January 1, 2014. In general, our TRS performs additional services for our customers and provides the advisory and property management services to the Managed REITs and otherwise generally engages in non-real estate related business. The TRS is subject to corporate U.S. federal and state income tax. Additionally, we own and operate a number of self storage properties located throughout Canada, the income of which is generally subject to income taxes under the laws of Canada.

The following is a summary of our income tax expense (benefit) for the three months ended March 31, 2024 and 2023:

	For the three months ended March 31, 2024
	Federal			State			Canadian		Total
Current	$	-		$	8,861		$	115,560	$	124,421
Deferred		68,057			2,828			146,997		217,882
Total	$	68,057		$	11,689		$	262,557	$	342,303
	For the three months ended March 31, 2023
	Federal			State			Canadian		Total
Current	$	51,557		$	9,277		$	96,099	$	156,933
Deferred		(2,619	)		(399	)		123,305		120,287
Total	$	48,938		$	8,878		$	219,404	$	277,220

The major sources of temporary differences that give rise to the deferred tax effects are shown below:

	March 31, 2024			December 31, 2023
Deferred tax liabilities:
Intangible contract assets	$	(15,092	)	$	(18,111	)
Canadian real estate		(9,904,999	)		(9,887,050	)
Total deferred tax liability		(9,920,091	)		(9,905,161	)
Deferred tax assets:
Other		1,527,465			1,267,292
Canadian real estate and non-capital losses		7,718,063			7,561,373
Total deferred tax assets		9,245,528			8,828,665
Valuation allowance		(892,589	)		(667,514	)
Net deferred tax liabilities	$	(1,567,152	)	$	(1,744,010	)

The Canadian non-capital losses expire between 2032 and 2043. As of March 31, 2024 and December 31, 2023, the Company had Canadian non-capital loss carry forwards of approximately $23.9 million and $24.9 million, respectively. As of March 31, 2024 and December 31, 2023, we had a valuation allowance of approximately $0.9 million and $0.7 million, respectively, related to non-capital loss carry-forwards at certain of our Canadian properties.

XML

Segment Disclosures

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Disclosures

Note 9. Segment Disclosures

We operate in two reportable business segments: (i) self storage operations and (ii) our Managed REIT Platform business.

Management evaluates performance based upon property net operating income (“NOI”). For our self storage operations, NOI is defined as leasing and related revenues, less property level operating expenses. NOI for the Company’s Managed REIT Platform business represents Managed REIT Platform revenues less Managed REIT Platform expenses.

The following tables summarize information for the reportable segments for the periods presented:

	Three Months Ended March 31, 2024
				Managed REIT			Corporate
	Self Storage			Platform			and Other			Total
Revenues:
Self storage rental revenue	$	50,469,142		$	—		$	—		$	50,469,142
Ancillary operating revenue		2,192,633			—			—			2,192,633
Managed REIT Platform revenue		—			2,734,207			—			2,734,207
Reimbursable costs from Managed REITs		—			1,646,075			—			1,646,075
Total revenues		52,661,775			4,380,282			—			57,042,057
Operating expenses:
Property operating expenses		17,389,955			—			—			17,389,955
Managed REIT Platform expense		—			851,187			—			851,187
Reimbursable costs from Managed REITs		—			1,646,075			—			1,646,075
General and administrative		—			—			7,426,164			7,426,164
Depreciation		13,353,607			—			230,791			13,584,398
Intangible amortization expense		24,135			48,930			—			73,065
Acquisition expenses		70,876			—			—			70,876
Total operating expenses		30,838,573			2,546,192			7,656,955			41,041,720
Income (loss) from operations		21,823,202			1,834,090			(7,656,955	)		16,000,337
Other income (expense):
Equity in earnings (losses) from    investments in JV Properties		—			—			(329,092	)		(329,092	)
Equity in earnings (losses) from    investments in Managed REITs		—			(451,562	)		—			(451,562	)
Other, net		340,777			450,376			(283,638	)		507,515
Interest expense		(16,511,848	)		—			(41,394	)		(16,553,242	)
Loss on debt extinguishment		(471,166	)		—			—			(471,166	)
Income tax (expense) benefit		(268,190	)		(64,207	)		(9,906	)		(342,303	)
Net income (loss)	$	4,912,775		$	1,768,697		$	(8,320,985	)	$	(1,639,513	)

	Three Months Ended March 31, 2023
				Managed REIT			Corporate
	Self Storage			Platform			and Other			Total
Revenues:
Self storage rental revenue	$	51,276,898		$	—		$	—		$	51,276,898
Ancillary operating revenue		2,190,622			—			—			2,190,622
Managed REIT Platform revenue		—			2,276,535			—			2,276,535
Reimbursable costs from Managed REITs		—			1,391,210			—			1,391,210
Total revenues		53,467,520			3,667,745			—			57,135,265
Operating expenses:
Property operating expenses		16,533,452			—			—			16,533,452
Managed REIT Platform expense		—			549,936			—			549,936
Reimbursable costs from Managed REITs		—			1,391,210			—			1,391,210
General and administrative		—			—			6,536,626			6,536,626
Depreciation		13,085,836			—			186,435			13,272,271
Intangible amortization expense		1,870,775			48,930			—			1,919,705
Acquisition expenses		31,190			—			—			31,190
Total operating expenses		31,521,253			1,990,076			6,723,061			40,234,390
Income (loss) from operations		21,946,267			1,677,669			(6,723,061	)		16,900,875
Other income (expense):
Equity in earnings (losses) from    investments in JV Properties		—			—			(405,111	)		(405,111	)
Equity in earnings (losses) from    investments in Managed REITs		—			(233,025	)		—			(233,025	)
Other, net		(415,297	)		1,142,964			23,311			750,978
Interest expense		(14,661,959	)		—			(41,938	)		(14,703,897	)
Income tax (expense) benefit		(144,596	)		—			(132,624	)		(277,220	)
Net income (loss)	$	6,724,415		$	2,587,608		$	(7,279,423	)	$	2,032,600

The following table summarizes our total assets by segment:

Segments	March 31, 2024		December 31, 2023
Self Storage(1)	$	1,785,797,427	$	1,798,510,325
Managed REIT Platform(2)		42,605,655		41,761,259
Corporate and Other		57,993,541		55,369,141
Total assets(3)	$	1,886,396,623	$	1,895,640,725

(1)Included in the assets of the Self Storage segment as of March 31, 2024 and December 31, 2023 was approximately $52.2 million of goodwill. Additionally, as of March 31, 2024 and December 31, 2023, there were no accumulated impairment charges to goodwill within the Self Storage segment.

(2)Included in the assets of the Managed REIT Platform segment as of March 31, 2024 and December 31, 2023 was approximately $1.4 million of goodwill. Such goodwill is net of accumulated impairment charges in the Managed REIT Platform segment of approximately $24.7 million, which relates to the impairment charge recorded during the quarter ended March 31, 2020.

(3)Other than our investments in and advances to Managed REITs and investments in JV properties, substantially all of our investments in real estate facilities and intangible assets as of March 31, 2024 and December 31, 2023, respectively, were associated with our self storage platform.

As of March 31, 2024 and December 31, 2023, approximately $169 million and $174 million, respectively, of our assets in the self storage segment related to our operations in Canada. For the three months ended March 31, 2024, and 2023, approximately $5.4 million and $5.3 million, respectively, of our revenues in the self storage segment related to our operations in Canada. Substantially all of our operations related to the management fees we generate through our management contracts with the Managed REITs are performed in the U.S.; accordingly substantially all of our assets and revenues related to our Managed REIT segment are based in the U.S. as well.

As of March 31, 2024 and December 31, 2023, approximately $36.2 million and $35.8 million, respectively, of our assets in the Corporate and Other segment in the table above relate to our JV Properties which operate in Canada. For the three months ended March 31, 2024 and 2023, approximately $0.3 million and $0.4 million of losses, respectively, relate to these JV Properties' operations in Canada.

XML

Related Party Transactions

3 Months Ended

Mar. 31, 2024

Related Party Transactions [Abstract]

Related Party Transactions

Note 10. Related Party Transactions

Self Administration Transaction

On June 28, 2019, we, our Operating Partnership and SmartStop TRS entered into a series of transactions, agreements, and amendments to our existing agreements and arrangements with our then-sponsor, SAM, and SmartStop OP Holdings, LLC (“SS OP Holdings”), a subsidiary of SAM, pursuant to which, effective June 28, 2019, we acquired the self storage advisory, asset management and property management businesses and certain joint venture interests of SAM, along with certain other assets of SAM (collectively, the “Self Administration Transaction”).

As a result of the Self Administration Transaction, we became self-managed and succeeded to the advisory, asset management and property management businesses and certain joint ventures previously in place for us, SST IV (until the SST IV Merger Date), and SSGT II (until the SSGT II Merger Date), and we acquired the internal capability to originate, structure and manage additional future self storage investment products which would be sponsored by SmartStop REIT Advisors, LLC (“SRA”), our indirect subsidiary. The transfer agent agreement described below was not impacted by the Self Administration Transaction.

Our Chief Executive Officer, who is also the Chairman of our board of directors, holds ownership interests in and is an officer of SAM, and other affiliated entities. Our Chief Executive Officer also previously indirectly held an ownership

interest in our former dealer manager. Previously, certain of our executive officers and another member of our board of directors held ownership interests in and/or were officers of SAM, and other affiliated entities. Accordingly, any agreements or transactions we have entered into with such entities may present a conflict of interest. None of SAM and its affiliates or our directors or executive officers receive any compensation, fees or reimbursements from our Managed REITs, other than with respect to fees and reimbursements in accordance with the Administrative Services Agreement and the transfer agent agreement, or as otherwise described in this section.

Transfer Agent Agreement

SAM owns 100% of the membership interests of Strategic Transfer Agent Services, LLC, our transfer agent (“Transfer Agent”), which is a registered transfer agent with the SEC. Pursuant to our transfer agent agreement, our Transfer Agent provided transfer agent and registrar services to us. These services were substantially similar to what a third party transfer agent would provide in the ordinary course of performing its functions as a transfer agent, including, but not limited to: providing customer service to our stockholders, processing the distributions and any servicing fees with respect to our shares and issuing regular reports to our stockholder. We believe that our Transfer Agent, through its knowledge and understanding of the direct participation program industry which includes non-traded REITs, was particularly suited to provide us with transfer agent and registrar services.

Fees paid to our Transfer Agent included a fixed quarterly fee, one-time account setup fees, monthly open account fees and fees for investor inquiries. In addition, we reimbursed our Transfer Agent for all reasonable expenses or other charges incurred by it in connection with the provision of its services to us, and we paid our Transfer Agent fees for any additional services that we requested from time to time, in accordance with its rates then in effect.

Effective as of April 29, 2024, we transitioned to a new transfer agent, SS&C GIDS, Inc. In connection with such transfer, we simultaneously terminated the transfer agent agreement with Strategic Transfer Agent Services, LLC. In lieu of a termination fee and in recognition of the additional cost and expenses incurred by our former transfer agent in connection with the transition, we incurred a transition fee of $150,000 payable to Strategic Transfer Agent Services, LLC.

Pursuant to the terms of the agreements described above, the following table summarizes related party costs incurred and paid by us for the year ended December 31, 2023 and the three months ended March 31, 2024, as well as any related amounts payable as of December 31, 2023 and March 31, 2024.

	Year Ended December 31, 2023						Three Months Ended March 31, 2024
	Incurred		Paid		Payable		Incurred		Paid		Payable
Expensed
Transfer Agent fees	$	1,479,254	$	1,473,005	$	75,000	$	378,590	$	378,590	$	75,000
Additional paid-in capital
Transfer Agent expenses		—		—		—		—		—		—
Stockholder servicing          fee		—		—		—		—		—		—
Other
Other		—		—		340,980		—		—		340,980
Total	$	1,479,254	$	1,473,005	$	415,980	$	378,590	$	378,590	$	415,980

Acquisition of Self Storage Platform from SAM and Other Transactions

As a result of the Self Administration Transaction, we acquired the self storage sponsorship platform of SAM. Accordingly, the advisor and property manager entities of SST IV and SSGT II became our indirect subsidiaries, and we became entitled to receive various fees and expense reimbursements under the terms of the SST IV and SSGT II advisory and property management agreements as described below. In addition, we now also own the advisor and property manager entities of SST VI and SSGT III and are entitled to receive various fees and expense reimbursements under the terms of the SST VI and SSGT III advisory and property management agreements as described below.

Advisory Agreement Fees

Our indirect subsidiaries, the SST VI Advisor, and the SSGT III Advisor are or were entitled to receive various fees and expense reimbursements under the terms of the SST VI, and SSGT III advisory agreements.

SST VI Advisory Agreement

The SST VI Advisor provides acquisition and advisory services to SST VI pursuant to an advisory agreement (the “SST VI Advisory Agreement”). In connection with the SST VI private placement offering, SST VI was required to reimburse the SST VI Advisor for organization and offering costs from the SST VI private offering pursuant to the SST VI private offering advisory agreement.

Pursuant to the SST VI Advisory Agreement, the SST VI Advisor receives acquisition fees equal to 1.00% of the contract purchase price of each property SST VI acquires plus reimbursement of any acquisition expenses that SST VI Advisor incurs. The SST VI Advisor also receives a monthly asset management fee equal to 0.0625%, which is one-twelfth of 0.75%, of SST VI’s aggregate asset value, as defined.

A subsidiary of our Operating Partnership may also be potentially entitled to a subordinated distribution through its ownership of a special limited partnership in SST VI OP if SST VI (1) lists its shares of common stock on a national exchange, (2) terminates the SST VI Advisory Agreement, (3) liquidates its portfolio, or (4) merges with another entity or enters into an Extraordinary Transaction, as defined in SST VI OP's limited partnership agreement.

The SST VI Advisory Agreement provides for reimbursement of the SST VI Advisor’s direct and indirect costs of providing administrative and management services to SST VI. Beginning four fiscal quarters after commencement of SST VI's public offering, which was declared effective March 17, 2022, the SST VI Advisor was required to pay or reimburse SST VI the amount by which SST VI’s aggregate annual operating expenses, as defined, exceed the greater of 2% of SST VI’s average invested assets or 25% of SST VI’s net income, as defined, unless a majority of SST VI’s independent directors determine that such excess expenses were justified based on unusual and non-recurring factors.

On March 1, 2022, Pacific Oak Holding Group, LLC, became a 10% non-voting member of the SST VI Advisor. Pacific Oak Capital Markets, LLC (a subsidiary of Pacific Oak Holding Group, LLC) is SST VI's dealer manager, and as such, is responsible for the marketing of SST VI shares being offered pursuant to SST VI's private offering, and subsequent to March 17, 2022, SST VI's public offering.

On October 25, 2022, we, through one of our subsidiaries also agreed to pay SST VI’s dealer manager an amount equal to 1.5% of the gross offering proceeds from the sale of Class W shares sold in its public offering. On October 31, 2023, in connection with an amendment to SST VI's dealer manager agreement, SST VI ceased the sale of Class W shares in its public offering, and subsequently began selling Class Z shares. For the year ended December 31, 2023, we had incurred approximately $59,000, to SST VI's dealer manager associated with the Class W Shares in its public offering.

Additionally, in connection with SST VI's public offering of Class W shares through October 31, 2023, the SST VI Advisor or its affiliates agreed to fund on behalf of SST VI, an amount equal to 1% of the gross offering proceeds from the sale of Class W shares sold in its initial public offering, which amount was to be used by SST VI towards the payment of its offering expenses. For the year ended December 31, 2023, we funded SST VI such costs in the amount of approximately $39,000. No further payments were incurred after October 31, 2023 to SST VI's dealer manager or SST VI under these agreements per the amendment which ceased the sale of Class W shares on such date.

Separately, we through one of our subsidiaries agreed to pay SST VI’s dealer manager an amount equal to 1.5% of the gross offering proceeds from the sale of Class Z shares sold in its public offering. For the three months ended March 31, 2024, we had incurred approximately $12,000 to SST VI's dealer manager associated with the Class Z Shares sold in its public offering.

SSGT III Advisory Agreement

The SSGT III Advisor provides acquisition and advisory services to SSGT III pursuant to an advisory agreement (the “SSGT III Advisory Agreement”). In connection with the SSGT III private placement offering, which became effective on May 18, 2022, SSGT III is required to reimburse the SSGT III Advisor for organization and offering costs from the SSGT III private offering pursuant to the SSGT III Advisory Agreement.

Pursuant to the SSGT III Advisory Agreement, the SSGT III Advisor will receive acquisition fees equal to 1.00% of the contract purchase price of each property SSGT III acquires plus reimbursement of acquisition expenses that SSGT III Advisor incurs, provided, however, that no reimbursement shall be made for costs of personnel to the extent that such personnel perform services in transactions for which the Advisor receives the Acquisition Fee. The SSGT III Advisor also receives a monthly asset management fee equal to 0.0625%, which is one-twelfth of 0.75%, of SSGT III’s aggregate asset value, as defined. The SSGT III Advisor is also entitled to receive a disposition fee equal to 1.5% of the contract sale price for any properties sold inclusive of any real estate commissions paid to third party real estate brokers. Through a separate agreement, Pacific Oak Holding Group, LLC, the parent company of Pacific Oak Capital Markets, LLC, the dealer manager for the SSGT III private offering, is entitled to receive 10% of the acquisition fees, asset management fees and disposition fees SSGT III Advisor earns pursuant to the SSGT III Advisory Agreement.

A subsidiary of our Operating Partnership may also be potentially entitled to various subordinated distributions through its ownership of a special limited partnership in SSGT III’s operating partnership agreement if SSGT III (1) lists its shares of common stock on a national exchange, (2) terminates the SSGT III Advisory Agreement, (3) liquidates its portfolio, or (4) merges with another entity or enters into an Extraordinary Transaction, as defined in the SSGT III operating partnership agreement.

The SSGT III Advisory Agreement provides for reimbursement of the SSGT III Advisor’s direct and indirect costs of providing administrative and management services to SSGT III.

Managed REIT Property Management Agreements

Our indirect subsidiaries, SS Growth Property Management II, LLC, Strategic Storage Property Management VI, LLC, and SS Growth Property Management III, LLC, (collectively the “Managed REITs Property Managers”), are or were entitled to receive fees for their services in managing the properties owned by the Managed REITs pursuant to property management agreements entered into between the owner of the property and the applicable Managed REIT’s Property Manager.

The Managed REITs’ Property Managers will receive a property management fee equal to 6% of the gross revenues from the properties, generally subject to a monthly minimum of $3,000 per property, plus reimbursement of the costs of managing the properties, and a one-time fee of $3,750 for each property acquired that would be managed by the Managed REITs’ Property Managers. Reimbursable costs and expenses include wages and salaries and other expenses of employees engaged in operating, managing and maintaining such properties. Pursuant to the property management agreements, we through our Operating Partnership employ the on-site staff for the Managed REITs’ properties.

The SST VI and SSGT III property managers are or were entitled to a construction management fee equal to 5% of the cost of a related construction or capital improvement work project in excess of $10,000.

Effective June 1, 2022, in connection with the SSGT II Merger, the SSGT II property management contracts were terminated. As a result of us acquiring SSGT II and terminating such contracts, we recorded a write-off of approximately $0.6 million related to the carrying value of the SSGT II property management contracts.

In connection with the Self Administration Transaction, we previously recorded a deferred tax liability, which was the result of the difference between the GAAP carrying value of the SSGT II property management contract and the carrying value for tax purposes. As we reduced the GAAP carrying value of such intangible asset, we adjusted the value of our deferred tax liability on a pro-rata basis, reducing the deferred tax liability by approximately $0.2 million during the year ended December 31, 2022 related to the SSGT II Merger and the related aforementioned write-offs, and recorded such benefits within the income tax (expense) benefit line-item in our consolidated statements of operations.

Summary of Fees and Revenue Related to the Managed REITs

Pursuant to the terms of the various agreements described above for the Managed REITs, the following summarizes the related party fees for the three months ended March 31, 2024 and 2023:

	Three Months Ended
	March 31,
Managed REIT Platform Revenues	2024			2023
Asset Management Fees:
SST VI		1,059,898			592,122
SSGT III		336,996			171,407
		1,396,894			763,529
Property Management Fees:
SST VI		392,517			231,222
SSGT III		123,208			54,315
JV Properties		217,049			171,895
		732,774			457,432
Tenant Protection Program Fees:
SST VI		272,724			142,596
SSGT III		82,245			14,708
JV Properties		87,904			58,329
		442,873			215,633
Acquisition Fees:
SST VI		33,647			542,681
SSGT III		—			157,000
		33,647			699,681
Other Managed REIT Fees(1)		308,865			140,260
Managed REIT Platform Fees		2,915,053			2,276,535
Sponsor funding reduction (2)		(180,846	)		—
Total Managed REIT Platform Revenues	$	2,734,207		$	2,276,535

(1)Such revenue primarily includes other property management related fees, construction management fees, development fees, and other miscellaneous revenues.

(2)Pursuant to the Sponsor Funding Agreement, SmartStop funds certain costs of SST VI's share sales, and in return receives Series C Units in SST VI's OP. The excess of the funding over the value of the Series C Units received is accounted for as a reduction of Managed REIT Platform revenues from SST VI over the remaining estimated term of the management contracts with SST VI.

We offer tenant insurance or tenant protection programs to customers at our Managed REITs' properties pursuant to which we, as the property manager and majority owner of the Tenant Protection Program joint ventures, are entitled to substantially all of the net revenue attributable to the sale of such tenant programs.

In order to protect our interest in receiving these revenues in light of the fact that the Managed REITs control the properties, we and the Managed REITs transferred our respective rights in such arrangements to a joint venture entity owned 99.9% by us through a TRS subsidiary and 0.1% by the Managed REIT. Under the terms of the operating agreements of the joint venture entities, we receive 99.9% of the net revenues generated from such Tenant Protection Programs and the Managed REIT receives the other 0.1% of such net revenues. Subsequent to the SSGT II Merger, the SSGT II Tenant Protection Programs joint ventures are wholly-owned by us and such revenue is generated at our now wholly-owned self storage properties and is recorded within ancillary operating revenue in our consolidated statements of operations.

Reimbursable costs from Managed REITs includes reimbursement of SST IV (until the SST IV Merger Date), SSGT II (until the SSGT II Merger Date), SST VI and SSGT III's Advisors’ direct and indirect costs of providing administrative and management services to the Managed REITs. Additionally, reimbursable costs includes reimbursement pursuant to the property management agreements for reimbursement of the costs of managing the Managed REITs’ properties, including wages and salaries and other expenses of employees engaged in operating, managing and maintaining such properties.

As of March 31, 2024 and December 31, 2023 we had receivables due from the Managed REITs totaling approximately $11.4 million and $6.5 million, respectively. Such amounts are included in investments in and advances to the Managed REITs line-item in our consolidated balance sheets. Such amounts included unpaid amounts relative to the above table, in addition to other direct reimbursable expenditures of the Managed REITs that we directly funded.

Investments in and advances to SST VI OP

Equity Investments

On March 10, 2021, SmartStop OP made an investment of $5.0 million in SST VI OP, in exchange for common units of limited partnership interest in SST VI OP. Additionally, a subsidiary of SmartStop OP owns a special limited partnership interest (the “SST VI SLP”) in SST VI OP.

For the three months ended March 31, 2024 we recorded a loss related to our equity interest in SST VI OP of approximately $0.3 million, and received distributions in the amount of approximately $85,000.

For the three months ended March 31, 2023 we recorded a loss related to our equity interest in SST VI OP of approximately $0.2 million, and received distributions in the amount of approximately $84,000.

On January 30, 2023, a subsidiary of SmartStop made a preferred investment of 600,000 Series A Cumulative Redeemable Preferred units of limited partnership interest in SST VI OP for an aggregate of $15 million. Upon closing of the preferred investment, an investment fee equal to 1% of the investment amount was owed and paid by SST VI OP. SmartStop, through its subsidiary, received distributions, payable monthly in arrears, at a rate of 7.0% per annum from the date of issuance until the second anniversary of the date of issuance, 8.0% per annum commencing thereafter until the third anniversary of the date of issuance, 9.0% per annum commencing thereafter until the fourth anniversary of the date of issuance, and 10% per annum thereafter, payable monthly. On May 2, 2023, SST VI fully redeemed SmartStop's preferred investment of 600,000 Series A Cumulative Redeemable Preferred units of limited partnership interest in SST VI OP, and repaid accrued distributions due as of the date of redemption for a total amount of approximately $15.1 million.

Sponsor Funding Agreement

On November 1, 2023, SRA, a subsidiary of SmartStop OP entered into a Sponsor Funding Agreement with SST VI and SST VI OP, in connection with certain changes to the public offering of SST VI.

Pursuant to the Sponsor Funding Agreement, SRA, as sponsor of the SST VI offering, has agreed to fund the payment of (i) the upfront 3% sales commission for the sale of shares of SST VI’s Class Y common stock sold in the SST VI offering, (ii) the upfront 3% dealer manager fee for the Class Y Shares sold in the SST VI offering, and (iii) the estimated 1% organization and offering expenses for the sale of Class Y Shares and shares of SST VI’s Class Z common stock sold in the SST VI offering. SRA also agreed to reimburse SST VI in cash to cover the dilution from certain one-time stock dividends which were issued by SST VI to existing stockholders in connection with the sponsor funding changes to the SST VI offering. On December 15, 2023, we paid SST VI approximately $6.6 million for the reimbursement of the aforementioned stock dividend.

In consideration for SRA providing the funding for the front-end sales load and the cash to cover the dilution from the stock dividends described above, SST VI OP will issue a number of Series C Units to SRA equal to the dollar amount of such funding divided by the then-current offering price for the Class Y Shares and Class Z Shares sold in the SST VI offering, which will initially be $9.30 per share. Pursuant to the Sponsor Funding Agreement, SRA will reimburse SST VI monthly for the applicable front-end sales load it has agreed to fund, and SST VI OP will issue the Series C Units on a monthly basis upon such reimbursement. The Sponsor Funding Agreement will terminate immediately upon the date that SST VI ceases to offer the Class Y Shares and Class Z Shares in the SST VI offering. The SST VI offering was set to expire on March 17, 2024, and was extended to March 17, 2025 upon the approval of SST VI's board of directors on February 1, 2024. Inclusive of all extension options available to SST VI, its offering could not extend beyond September 12, 2025.

On November 1, 2023, SRA entered into Amendment No. 3 to the Second Amended and Restated Limited Partnership Agreement of SST VI OP with SST VI and SST VI OP containing, among other things, the terms of the Series C Units. The Series C Units shall initially have no distribution, liquidation, voting, or other rights to participate in SST VI OP unless and until such Series C Units are converted into class A units of SST VI OP. The Series C Units shall automatically convert into class A units on a one-to-one basis upon SST VI’s disclosure of an estimated net asset value per share equal to at least $10.00 per share for each class of SST VI shares of common stock, including the Class Y Shares and Class Z Shares, calculated net of the value of the Series C Units to be converted.

Through March 31, 2024, we have incurred approximately $7.5 million in connection with the Sponsor Funding Agreement, representing approximately 810,000 subordinated units. During the three months ended March 31, 2024 we incurred approximately $0.7 million, of which approximately $0.2 million was accrued as a payable pursuant to the Sponsor Funding Agreement.

If SST VI were to sell the maximum amount under its offering of $1.0 billion, assuming the sale of all Class Y Shares consisting of a 7% front end sales load, the maximum commitment of SRA pursuant to the Sponsor Funding Agreement is approximately $70 million.

Debt Investments

On December 30, 2021, in connection with SST VI's acquisition of two self storage facilities, SmartStop OP entered into a mezzanine loan agreement with a wholly-owned subsidiary of SST VI OP for up to $45 million (the “SST VI Mezzanine Loan”). The SST VI Mezzanine Loan required a commitment fee equal to 1.0% of the amount drawn at closing of the SST VI Mezzanine Loan, and each subsequent draw. Interest on this loan accrued at LIBOR plus 3.0%.

The SST VI Mezzanine Loan was amended on December 20, 2022, such amendment increased the principal borrowing amount from a maximum of $45 million to $55 million. Pursuant to this amendment, the interest rate on the SST VI Mezzanine Loan was converted to a variable rate equal to SOFR plus 3.0%. Additionally, in such amendment, SST VI exercised the existing extension option; payments on the SST VI Mezzanine Loan were interest only until the due date of December 30, 2023. As of December 31, 2022 the balance on the SST VI Mezzanine Loan was $35.0 million. On January 31, 2023, SST VI borrowed an additional $15.0 million on the SST VI Mezzanine Loan. On May 2, 2023, SST VI fully repaid the outstanding principal, plus all applicable accrued interest due on the SST VI Mezzanine Loan as of such date for a total amount of approximately $51.7 million. On such date, the SST VI Mezzanine Loan agreement was terminated.

On June 13, 2023 SmartStop OP entered into a promissory note agreement with SST VI OP ( the “SST VI Note”), where SST VI OP borrowed $15.0 million. Interest on the loan accrued at SOFR plus 3.0%. Payments on the SST VI Note are interest only. The loan was extended to December 31, 2024 at the borrower's option. As such, the interest rate on the loan increased to SOFR plus 4.0%, and a fee equal to 0.25% of the outstanding principal balance was due as a result of SST VI exercising the extension option. The SST VI Note required a commitment fee equal to 1.0% of the aggregate principal amount of the loan. As of March 31, 2024, SST VI OP had $15.0 million borrowed and outstanding pursuant to the SST VI Note.

The following table summarizes the carrying value of our investments in and advances to SST VI as of March 31, 2024 and December 31, 2023:
 

Receivables:	As of March 31, 2024		As of December 31, 2023
Receivables and advances due	$	9,663,148	$	5,861,326
Debt:
SST VI Note		15,000,000		15,000,000
Equity:
SST VI OP Units and    SST VI SLP		1,568,062		1,932,357
SST VI Class C Subordinated Units		3,645,126		3,306,494
Total investments in and advances	$	29,876,336	$	26,100,177

Investments in and advances to SSGT III OP

Equity Investments

On August 29, 2022, SmartStop OP made an investment of $5.0 million in SS Growth Operating Partnership III, L.P., the operating partnership of SSGT III (“SSGT III OP”), in exchange for common units of limited partnership interest in SSGT III OP. Additionally, a subsidiary of SmartStop OP owns a special limited partnership interest (the “SSGT III SLP”) in SSGT III OP.

For the three months ended March 31, 2024, we recorded a loss related to our equity interest in SSGT III OP of approximately $0.2 million, and received distributions in the amount of approximately $68,000.

For the three months ended March 31, 2023, we recorded a loss related to our equity interest in SSGT III OP of approximately $0.2 million, and received distributions in the amount of approximately $54,000.

Debt Investments

On August 9, 2022, in connection with SSGT III's acquisition of two self storage facilities, our Operating Partnership entered into a mezzanine loan agreement with a wholly-owned subsidiary of SSGT III, for up to $50.0 million (the “SSGT III Mezzanine Loan”), of which $42.0 million was funded as an initial draw at the time of closing. The SSGT III Mezzanine Loan requires a commitment fee equal to 1.0% of the amount drawn at closing of the SSGT III Mezzanine Loan, and subsequent draws.

The SSGT III Mezzanine Loan was amended on December 20, 2022, such amendment increased the principal borrowing amount from up to $50 million to $77 million. Pursuant to this amendment, the interest rate on the SSGT III Mezzanine Loan became a variable rate equal to SOFR plus 3.0%. Payments on the SSGT III Mezzanine Loan are interest only, and it had an initial maturity date of August 9, 2023. SSGT III extended the ultimate maturity date of the SSGT III Mezzanine Loan until August 9, 2024, as such, the interest rate of the SSGT III Mezzanine Loan increased to SOFR plus 4.0% per annum, pursuant to the December 20, 2022 amendment. The SSGT III Mezzanine Loan may be prepaid in whole or in part at any time without fees or penalty and, in certain circumstances, equity interests securing the SSGT III Mezzanine Loan may be released from the pledge of collateral. The SSGT III Mezzanine Loan is secured by a pledge of the equity interest in the indirect, wholly-owned subsidiaries of SSGT III, that owned seven operating self storage facilities as of March 31, 2024. SSGT III OP, also serves as a non-recourse guarantor. In August 2023, SSGT III exercised the extension option, such that the SSGT III Mezzanine Loan is due in full on August 9, 2024.

As of March 31, 2024 and December 31, 2023, a wholly-owned subsidiary of SSGT III OP had $1.0 million and $4.0 million, respectively, borrowed and outstanding pursuant to the SSGT III Mezzanine Loan.

The following table summarizes the carrying value of our investments in and advances to SSGT III OP as of March 31, 2024 and December 31, 2023:
 

Receivables:	As of March 31, 2024		As of December 31, 2023
Receivables and advances due	$	1,756,522	$	628,710
Debt:
SSGT III Mezzanine Loan(1)		1,000,000		4,000,000
Equity:
SSGT III OP Units and   SSGT III SLP		3,421,526		3,661,978
Total investments in and advances	$	6,178,048	$	8,290,688

(1) As of March 31, 2024 and December 31, 2023, $1.5 million was available to be drawn on the SSGT III Mezzanine Loan. On May 2, 2024, SSGT III paid down the remaining $1.0 million outstanding on the SSGT III Mezzanine Loan.

Administrative Services Agreement

On June 28, 2019, we along with our Operating Partnership, SmartStop TRS and SmartStop Storage Advisors, LLC (collectively, the “Company Parties”) entered into an Administrative Services Agreement with SAM (the “Administrative Services Agreement”), which, as amended, requires that the Company Parties will be reimbursed for providing certain operational and administrative services to SAM which may include, without limitation, accounting and financial support, IT support, HR support, advisory services and operations support, and administrative support and other miscellaneous reimbursements as set forth in the Administrative Services Agreement and SAM will be reimbursed for providing certain operational and administrative services to the Company Parties which may include, without limitation, due diligence support, marketing, fulfillment and offering support, events support, insurance support, and administrative and facilities support. SAM and the Company Parties will reimburse one another based on the actual costs of providing their respective services. Additionally, SAM paid the Company Parties an allocation of rent and overhead for the portion of the Ladera Office that it occupied until October 2022, at which time SAM relocated to a separate office. Such agreement had an initial term of three years, with automatic one-year renewals, and is subject to certain adjustments as defined in the agreement.

For the three months ended March 31, 2024 and 2023 we incurred reimbursements payable to SAM under the Administrative Services Agreement of approximately $142,000 and $65,000, respectively, which were recorded in the Managed REIT Platform expenses line item in our consolidated statements of operations.

We recorded reimbursements from SAM of approximately $53,000 and $40,000 during the three ended March 31, 2024 and 2023, respectively, related to services provided to SAM, which were included in Managed REIT Platform revenue in our consolidated statements of operations.

As of March 31, 2024 and December 31, 2023, a receivable of approximately $18,000 was due from SAM and a payable of approximately $11,000, was due to SAM, respectively, related to the Administrative Services Agreement.

XML

Equity Based Compensation

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Equity Based Compensation

Note 11. Equity Based Compensation

Prior to June 15, 2022, we issued equity based compensation pursuant to the Company’s Employee and Director Long-Term Incentive Plan (the “Prior Plan”). On June 15, 2022, our stockholders approved the 2022 Long-Term Incentive Plan (the “Plan”) and we no longer issue equity under the Prior Plan. Pursuant to the Plan, we are able to issue various forms of equity based compensation. Through March 31, 2024, we have generally issued equity based awards in two forms: (1) restricted stock awards consisting of shares of our common stock and (2) long-term incentive plan units of our Operating Partnership (“LTIP Units”).

Through March 2020, we had only issued restricted stock, which shares are subject to a time based vesting period. In April 2020, the Compensation Committee of the board of directors approved awards for our executive officers, which include (1) performance based awards, and (2) time based awards. For both such type of awards, the recipient can choose either LTIP Units or restricted stock consisting of shares of our common stock. Effective June 2022, certain other recipients of time based awards were also allowed to choose either LTIP Units or restricted stock shares of our common stock.

The fair value of restricted stock is determined on the grant date based on an estimated value per share. The estimated fair value of our restricted stock was determined with the assistance of third party valuation specialists primarily based on an income approach to value our properties as well as the Managed REIT Platform, less the estimated fair value of our debt and other liabilities. The key assumptions used in estimating the fair value of our restricted stock were projected annual net operating income, projected growth rates, discount rates, capitalization rates and an illiquidity discount. The fair value of LTIP Units were further adjusted by applying an additional discount as the LTIP Units are not initially economically equivalent to our restricted stock. For performance based awards, a fair value was determined for each performance ranking scenario, with stock compensation expense recorded using the fair value of the scenario determined to be probable of achievement as of the end of the respective period.

Time Based Awards

We have granted various time based awards, which generally vest ratably over either one, three, or four years commencing in the year of grant, subject to the recipient’s continued employment or service through the applicable vesting date. All grants of time based restricted stock have limitations on transferability during the vesting period, and the grantee does not have the ability to vote any unvested shares. Transferability during the vesting period depends upon when the grant was made, as follows (i) with respect to grants of time based restricted stock made prior to April 2020, the restriction on

transfers applies to the entirety of the grant, regardless of vesting, and (ii) with respect to grants of time based restricted stock made in or subsequent to April 2020, the restriction on transfer applies only to the unvested portion of the restricted stock.

With respect to grants of time based LTIP Units, distributions accrue based on the effective date of each grant, and are payable as distributions are paid on our Class A Shares without regard to whether the underlying awards have vested. With respect to time based restricted stock issued to our board of directors in or after June 2022, distributions accrue as of the effective date of each grant and are payable as distributions are paid on our Class A Shares without regard to whether the underlying awards have vested. With respect to all other existing time based restricted stock, distributions accrue on non-vested shares granted and are paid when the underlying restricted shares vest.

Holders of time based LTIP Units receive allocations of profits and losses with respect to the LTIP Units as of the effective date, distributions from the effective date in an amount equivalent to the distributions declared and paid on our Class A Shares, and the same voting rights as holders of common units, voting as a class with each LTIP Unit holder having one vote per LTIP Unit held. Prior to vesting, time based LTIP Units generally may not be transferred, other than by laws of descent and distribution.

The following table summarizes the activity related to our time based awards:

	Restricted Stock					LTIP Units
Time Based Award Grants	Shares			Weighted-Average Grant-Date Fair Value		Units			Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2022		145,850		$	11.50		290,641		$	11.16
Granted		43,720			14.30		315,915			13.30
Vested		(96,295	)		10.86		(226,271	)		11.58
Forfeited		(7,960	)		13.92		—			—
Unvested at December 31, 2023		85,315			13.44		380,285			12.69
Granted		40,293			14.30		298,247			13.53
Vested		(41,726	)		12.58		—			—
Forfeited		(3,155	)		14.27		—			—
Unvested at March 31, 2024		80,727		$	14.28		678,532		$	13.06

Performance Based Awards

With respect to performance based awards, the number of shares of restricted stock granted as of the grant date equaled 100% of the targeted award, whereas the number of LTIP Units granted as of the grant date equaled 200% of the targeted amount of the award. The targeted award for each executive was determined and approved by the Compensation Committee of our board of directors. The actual number of shares of restricted stock or LTIP Units, as applicable, to be issued upon vesting may range from 0% to 200% of the targeted award, such determination being based upon the results of the performance measure. Performance based awards vest based upon our performance as ranked amongst a peer group of self storage related companies. This comparison will be conducted using a performance measure of average annual same-store revenue growth, analyzed over a three-year period. Earned awards for the 2022, 2023 and 2024 grants will vest, as applicable, no later than March 31, 2025, 2026, and 2027, respectively.

Recipients of performance based restricted stock accrue distributions during the performance period, and such distributions will only be payable on the date that any such shares of restricted stock vest, based upon the performance level attained. Recipients of performance based LTIP Units are issued LTIP Units at 200% of the targeted award and are entitled to receive distributions and allocations of profits and losses with respect to the performance based LTIP Units as of the effective date of each award in an amount equal to 10% of the distributions and allocations available to such LTIP Units, until the Distribution Participation Date (as defined in the Operating Partnership Agreement). The remaining 90% of distributions will accrue and will be payable on the Distribution Participation Date based upon the performance level attained and number of performance based LTIP Units that vest. Following the Distribution Participation Date, recipients will be entitled to receive the full amount of distributions and allocations of profits and losses with respect to the vested performance-based LTIP Units, such amount being equivalent to distributions declared and paid on our Class A Shares.

The following table summarizes our activity related to our performance based awards:

	Restricted Stock						LTIP Units
Performance Based Award Grants	Shares				Weighted-Average Grant-Date Fair Value		Units			Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2022		5,752			$	9.78		380,536		$	10.39
Granted		5,752		(1)		9.78		271,199			13.30
Vested		(11,504	)			9.78		(118,720	)		9.09
Forfeited		—				—		—			—
Unvested at December 31, 2023		—				—		533,015			12.16
Granted		—				—		270,096			13.55
Vested		—				—		(148,387	)		9.30
Forfeited		—				—		—			—
Unvested at March 31, 2024		—			$	—		654,724		$	13.38

(1) On March 2, 2023 the Compensation Committee of the board of directors approved the vesting of the 2020 performance grant at 200% of the targeted award. Accordingly, individuals who elected to receive performance based restricted stock were issued and immediately vested additional shares to equal 200% of their targeted award.

Holders of performance based restricted stock do not have any rights as a stockholder with respect to the unvested portion of such restricted stock awards. Prior to vesting, shares of performance based restricted stock generally may not be transferred, other than by laws of descent and distribution.

Holders of performance based LTIP Units have the same voting rights as holders of common units, voting as a class with each LTIP Unit holder having one vote per LTIP Unit held. Prior to vesting, performance based LTIP Units generally may not be transferred, other than by laws of descent and distribution.

LTIP Units are designed to qualify as “profits interests” in the Operating Partnership for federal income tax purposes. The profits interests’ characteristics of the LTIP Units mean that initially they will not be treated as economically equivalent in value to a common unit and the issuance of LTIP Units will not be a taxable event to the Operating Partnership or the recipient. If and when certain events occur pursuant to applicable tax regulations and in accordance with the Operating Partnership Agreement, LTIP Units may become economically equivalent to common units of limited partnership interest of our Operating Partnership on a one-for-one basis.

As of March 31, 2024, 8,759,182 shares of stock were available for issuance under the Plan.

We recorded approximately $1.1 million of equity based compensation expense in general and administrative expense during the three months ended March 31, 2024, compared to approximately $1.1 million during the three months ended March 31, 2023. We recorded approximately $0.1 million of equity based compensation expense in property operating expenses and Managed REIT Platform expenses, within our consolidated statements of operations for the three months ended March 31, 2024, compared to approximately $0.1 million during the three months ended March 31, 2023.

As of March 31, 2024, there was approximately $12.0 million of total unrecognized compensation expense related to non-vested equity awards, with such cost expected to be recognized over a weighted-average period of approximately 2.7 years.

As of December 31, 2023, there was approximately $6.8 million of total unrecognized compensation expense related to non-vested equity awards, with such cost expected to be recognized over a weighted-average period of approximately 2.2 years.

In March 2024, the compensation committee of our board of directors approved the 2024 executive compensation terms for our executives, which included (1) performance-based equity grants in the form of either, at the election of the executive, restricted stock awards or LTIP Units, and (2) time-based equity grants in the form of either, at the election of the executive, restricted stock awards or LTIP Units.

In March 2024, an aggregate of 270,096 LTIP Units were issued to our executive officers in connection with performance-based equity grants. With respect to performance-based equity grants, the number of LTIP Units granted as of the grant date was equal 200% of the targeted award. These are non-vested grants which shall vest based on ranges from a threshold of 0% to a maximum of 200% of the targeted equity award set for each executive by the compensation committee, with such percentage being determined based upon our ranking as compared to a peer group of publicly traded self storage REITs in terms of the average same-store revenue growth, analyzed over a three-year period.

Similarly, in March 2024, an aggregate of 274,183 LTIP Units were issued to our executive officers in connection with time-based equity grants. These are non-vested grants which shall vest ratably over four years, with the first tranche vesting on December 31, 2024, subject to the recipient’s continued employment through the applicable vesting date.

XML

Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 12. Commitments and Contingencies

Distribution Reinvestment Plan

We have adopted an amended and restated distribution reinvestment plan (our “DRP”) that allows both our Class A and Class T stockholders to have distributions otherwise distributable to them invested in additional shares of our Class A and Class T Shares, respectively. Under our DRP, the board of directors may amend, modify, suspend or terminate our plan for any reason upon 10 days’ written notice to the participants. The purchase price per share pursuant to our DRP is equivalent to the estimated value per share approved by our board of directors and in effect on the date of purchase of shares under the plan. In conjunction with the board of directors’ declaration of a new estimated value per share of our common stock on January 15, 2024, any shares sold pursuant to our distribution reinvestment plan will be sold at our new estimated value per share of $15.25 per Class A Share and Class T Share. Please see the section below titled “Suspension and Partial Resumption of DRP and SRP” for additional information. As of March 31, 2024, we had sold approximately 8.5 million Class A Shares and approximately 1.2 million Class T Shares through our DRP Offering.

Share Redemption Program

As described in “Note 2 – Summary of Significant Accounting Policies – Redeemable Common Stock,” we have an SRP. Please refer to that section for additional details. Pursuant to the SRP, we may redeem the shares of stock presented for redemption for cash to the extent that such requests comply with the below terms of our SRP and we have sufficient funds available to fund such redemption. All redemption requests received, and not withdrawn, on or prior to the last day of the applicable quarter are processed on the last business day of the month following the end of the quarter in which the redemption requests were received.

Our board of directors may amend, suspend or terminate the SRP with 30 days’ notice to our stockholders. We may provide this notice by including such information in a Current Report on Form 8-K or in our annual or quarterly reports, all publicly filed with the SEC, or by a separate mailing to our stockholders.

On August 20, 2020, our board of directors amended the terms of the SRP to revise the redemption price per share for all redemptions under the SRP to be equal to the most recently published estimated net asset value per share of the applicable share class (the “SRP Amendment”). Prior to the SRP Amendment, the redemption amount was the lesser of the amount the stockholders paid for their shares or the price per share in the current offering. On January 15, 2024, we declared a new estimated net asset value per share and the redemption price under our SRP immediately changed to $15.25 (our current estimated net asset value per share).

There are several limitations in addition to those noted above on our ability to redeem shares under the SRP including, but not limited to:

•During any calendar year, we will not redeem in excess of 5% of the weighted-average number of shares outstanding during the prior calendar year.

•The amount available for redemption is limited to the proceeds from the sale of shares pursuant to our distribution reinvestment plan, less any prior redemptions.

•We have no obligation to redeem shares if the redemption would violate the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency.

During the three months ended March 31, 2024, approximately 0.6 million shares or $8.6 million of requests that met the eligibility criteria were requested to be redeemed; approximately $8.4 million of which were included in accounts payable and accrued liabilities within our consolidated balance sheets as of March 31, 2024 and fulfilled in May 2024.

During the year ended December 31, 2023, approximately 1.5 million shares or $22.9 million of requests that met the eligibility criteria were requested to be redeemed; approximately $19.0 million of which were fulfilled during the year ended December 31, 2023, and approximately $3.9 million of which were included in accounts payable and accrued liabilities within our consolidated balance sheets as of December 31, 2023 and fulfilled in January 2024.

Please see the section below titled “Suspension and Partial Resumption of DRP and SRP” for additional information.

Suspension and Partial Resumption of DRP and SRP

In connection with a review of liquidity alternatives by the board of directors, on March 7, 2022, the board of directors approved the full suspension of our DRP and SRP. However, on March 16, 2023, the DRP was fully reinstated and the SRP was partially reinstated to allow for redemptions solely sought in connection with a stockholder’s death, “qualifying disability” (as that term is defined in the SRP), confinement to a long-term care facility, or other exigent circumstances. All other redemptions remain suspended at this time. All previously received and reconfirmed redemption requests, along with such requests received during the three months ended March 31, 2023 that correctly met the eligibility criteria above, were redeemed in April 2023, in accordance with the SRP.

On May 1, 2024, the board of directors approved an additional limitation to our SRP such that any redemption request made in connection with a stockholder’s death be made within one year of the date of such death in order to be honored by us. Please see Note 14 – Subsequent Events of the Notes to the Consolidated Financial Statements contained in this report.

For those stockholders that had elected to participate in the DRP prior to its suspension in March 2022, distributions automatically reverted back to being reinvested through the DRP effective for the month of March 2023 (to the extent we are qualified to offer shares pursuant to the DRP in accordance with applicable state laws).

Operating Partnership Redemption Rights

Generally, 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. 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.

Additionally, the Class A-1 Units issued in connection with the Self Administration Transaction are subject to the general restrictions on transfer contained in the Operating Partnership Agreement. The Class A-1 Units are otherwise entitled to all rights and duties of the Class A limited partnership units in the Operating Partnership, including cash distributions and the allocation of any profits or losses in the Operating Partnership.

Other Contingencies and Commitments

We have severance arrangements which cover certain members of our management team; these provide for severance payments upon certain events, including after a change of control.

See Note 10 – Related Party Transactions related to our debt investments in the Managed REITs and our Sponsor Funding Agreement with SST VI for more information about our contingent obligations under these agreements.

As of March 31, 2024, pursuant to various contractual relationships, we are required to make other non-cancellable payments in the amounts of approximately $2.6 million during the year ending December 31, 2024.

From time to time, we are party to legal, regulatory and other proceedings that arise in the ordinary course of our business. In accordance with applicable accounting guidance, management accrues an estimated liability when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. For such proceedings, we are not aware of any for which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition.

In connection with a fire that occurred at one of our properties, a neighboring property was also damaged. In December 2023, we, along with our insurance carrier, received a subrogation demand letter from an attorney representing the insurance company for the neighboring property owner for approximately $8.3 million alleging that we were responsible for their damages. We intend to vigorously defend this matter. We believe we have adequate insurance coverage for this matter.

XML

Declaration of Distributions

3 Months Ended

Mar. 31, 2024

Dividends [Abstract]

Declaration of Distributions

Note 13. Declaration of Distributions

On March 28, 2024, our board of directors declared a distribution rate for the month of April 2024 of approximately $0.0492 per share on the outstanding shares of common stock payable to Class A and Class T stockholders of record of such shares as shown on our books at the close of business on April 30, 2024. Such distributions payable to each stockholder of record will be paid the following month.

On April 19, 2024, our board of directors declared a distribution rate for the month of May 2024 of approximately $0.0508 per share on the outstanding shares of common stock payable to Class A and Class T stockholders of record of such shares as shown on our books at the close of business on May 31, 2024. Such distributions payable to each stockholder of record will be paid the following month.

XML

Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

Subsequent Events

Note 14. Subsequent Events

In addition to the subsequent events discussed elsewhere in the notes to the financial statements, the following events occurred subsequent to March 31, 2024:

Self Storage Acquisition

On April 10, 2024, we purchased a self storage facility located in Colorado Springs, Colorado (the "Colorado Springs II Property"). The purchase price for the Colorado Springs II Property was approximately $10.5 million, plus closing costs. Upon acquisition, the property was approximately 86% occupied. The acquisition was funded with proceeds from the 2024 Credit Facility. This property was subsequently added to the borrowing base of the 2024 Credit Facility.

SRP Limitation

On May 1, 2024, our board of directors adopted a limitation to our SRP such that any redemption request made under the SRP in connection with a stockholder’s death be made within one year of the date of such death in order to be honored by us. This limitation takes effect on June 1, 2024, which is the requisite 30 days’ notice to our stockholders. We intend to honor any redemption request made in connection with a stockholder’s death that are submitted prior to such effective date, even if the redemption request is made after the one-year anniversary of such stockholder’s death so long as such redemption request otherwise complies with the terms of the SRP.

Hedging Activity

On May 1, 2024, to hedge our exposure to potentially rising interest rates, we purchased three SOFR interest rate caps for a total of approximately $8.2 million. The table below presents the terms of these three SOFR interest rate caps:

Notional		Cap Rate			Effective Date	Maturity Date
$	100,000,000		1.50	%	May 1, 2024	May 1, 2025
$	100,000,000		2.00	%	July 1, 2024	July 1, 2025
$	200,000,000		5.50	%	December 2, 2024	December 1, 2026

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

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.

The square footage, unit count, and occupancy percentage data and related disclosures included in these notes to the consolidated financial statements are outside the scope of our independent registered accounting firm's review.

Principles of Consolidation

Principles of Consolidation

Our financial statements, and the financial statements of our Operating Partnership, including its wholly-owned subsidiaries, are consolidated in the accompanying consolidated financial statements. The portion of these entities not wholly-owned by us is presented as noncontrolling interests. All intercompany accounts and transactions have been eliminated in consolidation.

Consolidation Considerations

Consolidation Considerations

Current accounting guidance provides a framework for identifying a variable interest entity (“VIE”) and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of a 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.

Our Operating Partnership is deemed to be a VIE and is consolidated by us as we are currently the primary beneficiary. Our sole significant asset is our investment in our Operating Partnership; as a result, substantially all of our assets and liabilities represent those assets and liabilities of our Operating Partnership and its wholly-owned subsidiaries.

On March 1, 2022, Pacific Oak Holding Group, LLC, the parent company of Pacific Oak Capital Markets, LLC, the dealer manager for the public offering of SST VI, became a 10% non-voting member of Strategic Storage Advisor VI, LLC, our advisor to SST VI (the “SST VI Advisor”). We continue to be the primary beneficiary of SST VI Advisor, and their operations therefore continue to be consolidated by us.

As of March 31, 2024 and December 31, 2023, we were not a party to any other material contracts or interests that would be deemed variable interests in VIEs other than our joint ventures with SmartCentres and our equity investments in the Managed REIT's, which are all accounted for under the equity method of accounting (see Note 4 – Investments in Unconsolidated Real Estate Ventures and Note 10 – Related Party Transactions for additional information), and our joint venture programs through which we offer our tenant insurance, tenant protection plans or similar programs (the “Tenant Protection Programs”) with SST VI, SSGT III, and SSGT II (through June 1, 2022) which are consolidated.

Equity Investments

Equity Investments

Under the equity method, our investments are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions and impairments, as applicable. Equity in earnings will generally be recognized based on our ownership interest in the earnings of each of the unconsolidated investments and recorded within our consolidated statements of operations.

Investments in and Advances to Managed REITs

Investments in and Advances to Managed REITs

As of March 31, 2024 and December 31, 2023, we owned equity and debt investments in the Managed REITs; such amounts are included in Investments in and advances to Managed REITs within our consolidated balance sheets. We account for the equity investments using the equity method of accounting as we have the ability to exercise significant influence, but not control, over the Managed REITs’ operating and financial policies through our advisory and property management agreements with the respective Managed REITs. The equity method of accounting requires the investment to be initially

recorded at cost and subsequently adjusted for our share of equity in the respective Managed REIT’s earnings and reduced by distributions.

We record the interest on our debt investments on the accrual basis and such income is included in Other, net, within Other income (expense) of our consolidated statements of operations. While we do make loans periodically, we do not consider that to be part of our ordinary operating activity, and therefore do not report income from loans as operating income.

See Note 10 – Related Party Transactions for additional information.

Noncontrolling Interests in Consolidated Entities

Noncontrolling Interests in Consolidated Entities

We account for the noncontrolling interests in our Operating Partnership and the noncontrolling interests in SST VI Advisor and our Tenant Protection Programs joint ventures with SST VI, SSGT III, and SSGT II (prior to the SSGT II Merger on June 1, 2022) in accordance with the related accounting guidance.

Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partners, our Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company and the limited partner interests are reflected as noncontrolling interests in the accompanying consolidated balance sheets. We also consolidate our interests in the SSGT III and SST VI Tenant Protection Programs and present the minority interests as noncontrolling interests in the accompanying consolidated balance sheets. The noncontrolling interests shall be attributed their share of income and losses, even if that attribution results in a deficit noncontrolling interests balance.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP 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 will adjust such estimates when facts and circumstances dictate. Actual results could materially differ from those estimates. The most significant estimates made include that of real estate acquisition valuation and the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at relative fair value, the evaluation of potential impairment of indefinite and long-lived assets and goodwill, and the estimated useful lives of real estate assets and intangibles.

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 and cash equivalents in financial institutions in excess of insured limits. In an effort to mitigate this risk, we only invest 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 and Treatment of Acquisition Costs

Real Estate Purchase Price Allocation and Treatment of Acquisition Costs

We account for asset acquisitions in accordance with GAAP which requires that we allocate the purchase price of a property to the tangible and intangible assets acquired and the liabilities assumed based on their relative fair values as of the date of acquisition. This guidance requires us to make significant estimates and assumptions, including fair value estimates, which requires the use of significant unobservable inputs as of the acquisition date. We engage third-party valuation specialists to assist in the determination of significant estimates and market-based assumptions used in the valuation models.

The value of the tangible assets, consisting of land and buildings, is determined as if vacant. 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. We also consider whether in-place, market leases represent an intangible asset. There were no acquisitions during the three months ended March 31, 2024 and 2023, as such no intangible assets to recognize the value of in-place leases were recorded. We do

not expect, nor to date have we recorded, intangible assets for the value of customer relationships because we expect we will not have concentrations of significant customers and the average customer turnover will be fairly frequent.

Allocation of purchase price to 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.

Acquisitions that do not meet the definition of a business, as defined under current GAAP, are accounted for as asset acquisitions. During the three months ended March 31, 2024 and 2023, there were no property acquisitions. To date, our acquisitions have generally not met the definition of a business because substantially all of the fair value was concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related intangible assets) and because the acquisitions did not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. As a result, once an acquisition is deemed probable, acquisition related transaction costs are capitalized rather than expensed.

During the three months ended March 31, 2024 and 2023, we expensed approximately $71,000 and $31,000, respectively, of acquisition-related transaction costs that did not meet our capitalization policy during the respective periods.

Evaluation of Possible Impairment of Real Property Assets

Evaluation of Possible Impairment of Real Property Assets Management monitors events and changes in circumstances that could indicate that the carrying amounts of our real property assets 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 real property 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 real property assets to the fair value and recognize an impairment loss. For the three months ended March 31, 2024 and 2023, no real property asset impairment losses were recognized.

Goodwill Valuation

Goodwill Valuation

We initially recorded goodwill as a result of the Self Administration Transaction (as defined in Note 10 – Related Party Transactions), which occurred in 2019. Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible assets and other intangible assets acquired. Goodwill is allocated to various reporting units, as applicable, and is not amortized. We perform an annual qualitative impairment assessment as of December 31 for goodwill; between annual tests we evaluate the recoverability of goodwill whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be fully recoverable. If circumstances indicate the carrying amount may not be fully recoverable, we perform a quantitative analysis to compare the fair value of each reporting unit to its respective carrying amount. If the carrying amount of goodwill exceeds its fair value, an impairment charge will be recognized.

See Note 10 – Related Party Transactions for additional information.

Trademarks

Trademarks

In connection with the Self Administration Transaction, we recorded the fair value associated with the two primary trademarks acquired therein.

Trademarks are based on the value of our brands. Trademarks are valued using the relief from royalty method, which presumes that without ownership of such trademarks, we would have to make a stream of payments to a brand or franchise owner in return for the right to use their name. By virtue of this asset, we avoid any such payments and record the related intangible fair value of our ownership of the brand name.

As of March 31, 2024 and December 31, 2023, $15.7 million was recorded related to the SmartStop® Self Storage trademark, which is an indefinite lived trademark. As of March 31, 2024 and December 31, 2023, approximately $35,000 and $71,000, respectively, was recorded to the “Strategic Storage®” trademark, which is a definite lived trademark. The total estimated future amortization expense of the “Strategic Storage®” trademark asset for the year ending December 31, 2024, and thereafter is approximately $35,000 and none, respectively.

We qualitatively evaluate whether any triggering events or changes in circumstances have occurred in addition to our annual impairment test that would indicate an impairment condition may exist. If any change in circumstance or triggering event occurs, and results in a significant impact to our revenue and profitability projections, or any significant assumption in our valuation methods is adversely impacted, the impact could result in a material impairment charge in the future.

Revenue Recognition

Revenue Recognition

Self Storage Operations

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.

In accordance with ASC 842, we review the collectability of lease payments on an ongoing basis. We consider collectability indicators when analyzing accounts receivable and historical bad debt levels, including current economic trends, all of which assist in evaluating the probability of outstanding and future rental income collections.

Additionally, we earn ancillary revenue by selling tenant insurance or tenant protection plans to customers at our properties through our Tenant Protection Programs, and to a lesser extent, through the sale of various moving and packing supplies such as locks and boxes. We recognize such revenue in the Ancillary operating revenue line within our consolidated statements of operations as the services are performed and as the goods are delivered.

Managed REIT Platform

We earn property management and asset management revenue, pursuant to the respective property management and advisory agreement contracts, in connection with providing services to the Managed REITs. We have determined under ASC 606 – Revenue from Contracts with Customers (“ASC 606”), that the performance obligation for the property management services and asset management services are satisfied as the services are rendered. While we are compensated for our services on a monthly basis, these services represent a series of distinct daily services in accordance with ASC 606. Such revenue is recorded in the Managed REIT Platform revenue line within our consolidated statements of operations.

The Managed REITs’ advisory agreements also provide for reimbursement to us of our direct and indirect costs of providing administrative and management services to the Managed REITs. These reimbursements include costs incurred in relation to organization and offering services provided to the Managed REITs and the reimbursement of salaries, bonuses, and other expenses related to benefits paid to our employees while performing services for the Managed REITs. The Managed REITs’ property management agreements also provide reimbursement to us for the property manager’s costs of managing the properties. Reimbursable costs include wages and salaries and other expenses that arise in operating, managing and maintaining the Managed REITs’ properties.

Under ASC 606, direct reimbursement of such costs does not represent a separate performance obligation from our obligation to perform property management and asset management services. The reimbursement income is considered variable consideration, and is recognized as the costs are incurred, subject to limitations on the Managed REIT Platform’s ability to incur offering costs or limitations imposed by the advisory agreements. We have elected to separately record such revenue in the Reimbursable costs from Managed REITs line within our consolidated statements of operations.

Additionally, we earn revenue in connection with our Tenant Protection Programs joint ventures with our Managed REITs. We also earn development and construction management revenue from services we provide in connection with the project design, coordination and oversite of development and certain capital improvement projects undertaken by the Managed REITs. We recognize such revenue in the Managed REIT Platform revenue line within our consolidated statements of operations as the services are performed or delivered. See Note 10 – Related Party Transactions, for additional information regarding revenue generated from our Managed REIT Platform.

Sponsor Funding Agreement

On November 1, 2023, SmartStop REIT Advisors, LLC, a subsidiary of SmartStop OP entered into a sponsor funding agreement with SST VI and Strategic Storage Trust VI, O.P. ("SST VI OP"), (the “Sponsor Funding Agreement”), in

connection with certain changes to the public offering of SST VI (see Note 10 – Related Party Transactions for additional information).

Pursuant to the Sponsor Funding Agreement, SmartStop, through a wholly-owned subsidiary, is required to fund the payment of the front-end sales load for the sale of SST VI’s class Y and class Z shares sold in its offering. In exchange, SmartStop receives a number of series C convertible units (“Series C Units”) in SST VI OP calculated as the dollar amount of such funding divided by the then-current offering price for such class Y and Z shares. The Series C Units convert into class A units of SST VI OP if the estimated net asset value of SST VI, as declared by SST VI, exceeds $10.00 per share. Such conversion is limited such that the dilution caused by the conversion may not reduce the diluted estimated net asset value below $10.00 per share.

In accordance with ASC 606, the amount by which our funding exceeds the fair value of the Series C Units received is accounted for as a payment to a customer and is therefore recorded as a reduction to the transaction price for the services we provide to such customer. Each payment is initially included in the Other assets line-item in our consolidated balance sheet and subsequently recorded as a reduction of Managed REIT Platform revenues ratably over the remaining estimated life of our management contracts with SST VI. Below is a summary of the portion of sponsorship funding payments which exceeds the fair value of the Series C Units received, and is recorded pursuant to ASC 606 as described above:

Balance as of December 31, 2022	$	—
Amounts incurred		3,526,927
Recorded sponsor funding reduction		(33,643	)
Balance as of December 31, 2023	$	3,493,284
Amounts incurred	$	361,207
Recorded sponsor funding reduction		(180,846	)
Balance as of March 31, 2024	$	3,673,645

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

Tenant accounts receivable is reported net of an allowance for doubtful accounts. Management records this general allowance estimate based upon a review of the current status of accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future. As of March 31, 2024 and December 31, 2023, approximately $0.9 million and $0.9 million, respectively, were recorded to allowance for doubtful accounts and are included within other assets in the accompanying consolidated balance sheets.

Advertising Costs

Advertising Costs

Advertising costs are expensed in the period in which the cost is incurred and are included in property operating expenses and general and administrative lines within our consolidated statements of operations, depending on the nature of the expense. The Company incurred advertising costs of approximately $1.3 million and $1.2 million for the three months ended March 31, 2024 and 2023, respectively, within property operating expenses, and approximately $0.5 million and $0.5 million for the three months ended March 31, 2024 and 2023, respectively, within general and administrative.

Real Estate Facilities

Real Estate Facilities

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 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	30-40 years
Site Improvements	7-10 years

Depreciation of Personal Property Assets

Depreciation of Personal Property Assets

Personal property assets consist primarily of furniture, fixtures and equipment and 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 lease intangibles, which amortize on a straight-line basis over the estimated future benefit period. Additionally, we have other contract related intangible assets. As of March 31, 2024, the gross amount of the intangible assets was approximately $80.5 million, and accumulated amortization was approximately $79.4 million. As of December 31, 2023, the gross amount of the intangible assets was approximately $80.7 million, and accumulated amortization was approximately $79.5 million. See Note 10 – Related Party Transactions for additional information.

The total estimated future amortization expense related to intangible assets for the years ending December 31, 2024, 2025, 2026, 2027, 2028, and thereafter is approximately $0.1 million, $0.1 million, $0.1 million, $0.1 million, $0.1 million, and $0.6 million thereafter, respectively. The weighted-average amortization period on our remaining intangible assets with a net book value of approximately $1.1 million was approximately 6.0 years as of March 31, 2024.

We evaluate whether any triggering events or changes in circumstances have occurred subsequent to our annual impairment test that would indicate an impairment condition may exist. If any change in circumstance or triggering event occurs, and results in a significant impact to our revenue and profitability projections, or any significant assumption in our valuations methods is adversely impacted, the impact could result in an impairment charge in the future.

Debt Issuance Costs

Debt Issuance Costs

The net carrying value of costs incurred in connection with obtaining non revolving debt are presented on the balance sheet as a deduction from debt; amounts incurred related to obtaining revolving debt are included in the debt issuance costs line on our consolidated balance sheet (see Note 5 - Debt). Debt issuance costs are amortized using the effective interest method.

As of March 31, 2024 the gross amount of debt issuance costs related to our revolving credit facility totaled approximately $9.1 million and accumulated amortization of debt issuance costs related to our revolving credit facility totaled approximately $0.3 million. As of December 31, 2023, the gross amount of debt issuance costs related to our revolving credit facility totaled approximately $4.5 million, and accumulated amortization of debt issuance costs related to our revolving credit facility totaled approximately $4.1 million.

As of March 31, 2024, the gross amount allocated to debt issuance costs related to non-revolving debt totaled approximately $5.7 million and accumulated amortization of debt issuance costs related to non-revolving debt totaled approximately $2.1 million. As of December 31, 2023, the gross amount allocated to debt issuance costs related to non-revolving debt totaled approximately $7.7 million and accumulated amortization of debt issuance costs related to non-revolving debt totaled approximately $3.4 million.

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, as of the reporting date. Revenues and expenses are translated at the average rates for the period. All adjustments related to amounts classified as long term net investments are recorded in accumulated 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. Changes in investments not classified as long term are recorded in other income (expense) and represented a loss of approximately $1.4 million and a gain of approximately $35,000 for the three months ended March 31, 2024 and 2023, respectively.

Redeemable Common Stock

Redeemable Common Stock

We adopted a share redemption program (“SRP”) that enables stockholders to sell their shares to us in limited circumstances.

We have evaluated the terms of our SRP, and we classify amounts that are redeemable under the SRP as redeemable common stock in the accompanying consolidated balance sheets. The maximum amount of redeemable shares under our SRP is limited to the net proceeds from the distribution reinvestment plan. However, accounting guidance states that determinable amounts that can become redeemable should be presented as redeemable when such amount is known. Therefore, the net proceeds from the distribution reinvestment plan are considered to be temporary equity and are presented as redeemable common stock in the accompanying consolidated balance sheets.

In addition, current accounting guidance requires, among other things, that financial instruments that represent a mandatory obligation of us to repurchase shares be classified as liabilities and reported at settlement value. When we determine we have a mandatory obligation to repurchase shares under the SRP, we reclassify such obligations from temporary equity to a liability based upon their respective settlement values.

See Note 12 – Commitments and Contingencies for additional information on our SRP.

Accounting for Equity Awards

Accounting for Equity Awards

We issue equity based awards in two forms: (1) restricted stock awards consisting of shares of our common stock and (2) long-term incentive plan units of our Operating Partnership (“LTIP Units”), both of which may be issued subject to either time based vesting criteria or performance based vesting criteria restrictions. For time based awards granted which contain a graded vesting schedule, compensation cost is recognized as an expense on a straight-line basis over the requisite service period as if the award was, in substance, a single award. For performance based awards, compensation cost is recognized over the requisite service period if and when we determine the performance condition is probable of being achieved. We record the cost of such equity based awards based on the grant date fair value, and have elected to record forfeitures as they occur.

Employee Benefit Plan

Employee Benefit Plan

The Company maintains its own retirement savings plan under Section 401(k) of the Internal Revenue Code under which eligible employees can contribute up to 100% of their annual salary, subject to a statutory prescribed annual limit. For the three months ended March 31, 2024 and 2023, the Company made matching contributions to such plan of approximately $0.2 million and $0.2 million, respectively, based on a company match of 100% on the first 4% of an employee’s compensation.

Fair Value Measurements

Fair Value Measurements

Under GAAP, we are required to measure certain financial instruments at fair value on a recurring basis. In addition, we are required to measure other financial instruments and balances at fair value on a non-recurring basis. 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 will 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 will be 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 will present will be 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 liabilities assumed related to our acquisitions along with the assets and liabilities described in Note 3 – Real Estate Facilities. The fair values of these assets and liabilities 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) market approach, which considers comparable sales activity. Additionally, certain such assets and liabilities are required to be fair valued periodically or valued pursuant to ongoing fair value requirements and impairment analyses and have been valued subsequently utilizing the same techniques noted above. 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 and liabilities as of the acquisition dates were derived using Level 3 inputs.

The Series C Units (categorized within Level 3 of the fair value hierarchy) acquired in connection with the Sponsor Funding Agreement are measured at fair value at the time of acquisition, and are recorded using the equity method of accounting as described in Note 10 – Related Party Transactions. The fair value of these units were determined using a valuation model which considered the following key assumptions: the projected distribution rate of SST VI, implied share price volatility, risk free interest rate, current estimated net asset value, and the estimated effective life of the Series C Units.

The carrying amounts of cash and cash equivalents, restricted cash, other assets, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates approximate fair value (categorized within Level 1 of the fair value hierarchy).

The table below summarizes the carrying amounts and fair values of financial instruments that are not carried at fair value as of March 31, 2024 and December 31, 2023. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of our fixed and variable rate debt was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities (categorized within Level 2 of the fair value hierarchy). The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. As of March 31, 2024 and December 31, 2023, we believe the fair value of our variable rate debt was reasonably estimated at their notional amounts as there have been minimal changes to the fixed spread portion of interest rates for similar loans observed in the market, and as the variable portion of our interest rates fluctuate with the associated market indices.

	March 31, 2024				December 31, 2023
	Fair Value		Carrying Value		Fair Value		Carrying Value
Fixed Rate Secured Debt	$	493,300,000	$	520,580,451	$	505,700,000	$	523,018,512

During the three months ended March 31, 2024 and 2023, we held interest rate cash flow hedges and foreign currency net investment hedges to hedge our interest rate and foreign currency exposure (See Notes 5 – Debt and 7 – Derivative Instruments). The fair value analyses of these instruments reflect the contractual terms of the derivatives, including the period to maturity, and used observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities, as applicable. The fair value of interest rate swap and cap agreements are determined using widely accepted valuation techniques, including discounted cash flow analyses on the expected cash flows of the instruments. Our fair values of our net investment hedges are based primarily on the change in the spot rate at the end of the period as compared with the strike price at inception.

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 derivative contracts for the effect of non-performance risk, we consider the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we had determined that the majority of the inputs used to value our derivatives were within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilized Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparties. However, through March 31, 2024, we had assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of our derivatives. As a result, we determined that our derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy.

The table below presents the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Fair Value Measurements at March 31, 2024 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Other assets - interest rate derivatives	$	—	$	2,592,468	$	—
Other assets - foreign currency hedges	$	—	$	2,247,494	$	—
Accounts payable and accrued    liabilities - interest rate derivatives	$	—	$	101,787	$	—

	Fair Value Measurements at December 31, 2023 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Other assets - interest rate derivatives	$	—	$	3,485,281	$	—
Accounts payable and accrued    liabilities - foreign currency hedges	$	—	$	985,412	$	—

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

We record all derivatives on our balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. We may enter into derivative contracts that are intended to economically hedge certain of our risks, even though hedge accounting does not apply or we elect not to apply hedge accounting.

For derivatives designated as net investment hedges, the effective portion of changes in the fair value of the derivatives are reported in accumulated other comprehensive income (loss). The ineffective portion of the change in fair value of the derivatives is recognized in Other, net, within our consolidated statements of operations. Amounts are reclassified out of other comprehensive (loss) income (“OCI”) into earnings (loss) when the hedged net investment is either sold or substantially liquidated.

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, 2014. To qualify as a REIT, we must continue to meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the REIT’s taxable income to stockholders (which is computed without regard to the dividends paid deduction or net capital gains and which does not equal net income as calculated in accordance with GAAP).

For income tax purposes, distributions to common stockholders are characterized as ordinary dividends, capital gain dividends, or as nontaxable distributions. To the extent that we make a distribution in excess of our current or accumulated earnings and profits, the distribution will be a non-taxable return of capital, reducing the tax basis in each U.S. stockholder’s shares, and the amount of each distribution in excess of a U.S. stockholder’s tax basis in its shares will be taxable as gain realized from the sale of its shares.

As a REIT, we generally will not be subject to U.S. 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 U.S. federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for U.S. 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 are 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 U.S. federal income tax purposes.

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

We filed an election to treat our primary taxable REIT subsidiary (“TRS”) as a taxable REIT subsidiary effective January 1, 2014. In general, our TRS performs additional services for our customers and provides the advisory and property management services to the Managed REITs and otherwise generally engages in non-real estate related business. The TRS is subject to corporate federal and state income tax.

We account for deferred income taxes using the asset and liability method and recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our financial statements or tax returns. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of

assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes a change in our judgment about expected future tax consequences of events, is included in the tax provision when such changes occur. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes a change in our judgment about the realizability of the related deferred tax asset, is included in the tax provision when such changes occur.

Uncertain tax positions may arise where tax laws may allow for alternative interpretations or where the timing of recognition of income is subject to judgment. Under ASC Topic 740, tax positions are evaluated for recognition using a more–likely–than–not threshold, and those tax positions requiring recognition are measured at the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of March 31, 2024 and December 31, 2023, the Company had no uncertain tax positions. Income taxes payable are classified within accounts payable and accrued liabilities in the consolidated balance sheets. The tax years 2019-2022 remain open to examination by the major taxing jurisdictions to which we are subject.
 

Concentration

Concentration

No single self storage customer represents a significant concentration of our revenues. For the month of March 2024, approximately 23%, 20%, and 10% of our rental income was concentrated in Florida, California, and the Greater Toronto Area of Canada, respectively. Our properties within the aforementioned geographic areas are dispersed therein, operating in multiple different regions and sub-markets.

Segment Reporting

Segment Reporting

Our business is composed of two reportable segments: (i) self storage operations and (ii) the Managed REIT Platform business. Please see Note 9 – Segment Disclosures for additional detail.

Convertible Preferred Stock

Convertible Preferred Stock

We classify our Series A Convertible Preferred Stock (as defined in Note 6 – Preferred Equity) on our consolidated balance sheets using the guidance in ASC 480-10-S99. Our Series A Convertible Preferred Stock can be redeemed by us on or after the fifth anniversary of its issuance (October 29, 2024), or if certain events occur, such as the listing of our common stock on a national securities exchange, a change in control, or if a redemption would be required to maintain our REIT status. Additionally, if we do not maintain our REIT status the holder can require redemption. As the shares are contingently redeemable, and under certain circumstances not solely within our control, we have classified our Series A Convertible Preferred Stock as temporary equity.

We have analyzed whether the conversion features in our Series A Convertible Preferred Stock should be bifurcated under the guidance in ASC 815‑10 and have determined that bifurcation is not necessary.

Per Share Data

Per Share Data

Basic earnings per share attributable to our common stockholders for all periods presented are computed by dividing net income (loss) attributable to our common stockholders by the weighted average number of common shares outstanding during the period, excluding unvested restricted stock.

Diluted earnings per share is computed by including the dilutive effect of the conversion of all potential common stock equivalents (which includes unvested restricted stock, Series A Convertible Preferred Stock, Class A and Class A-1 OP Units, and unvested LTIP Units) and accordingly, as applicable, adjusting net income to add back any changes in earnings that reduce earnings per common share in the period associated with the potential common stock equivalents.

The computation of earnings per common share is as follows for the periods presented:

	For the Three Months Ended  March 31,
	2024			2023
Net income (loss)	$	(1,639,513	)	$	2,032,600
Net (income) loss attributable to    noncontrolling interests		99,515			(340,365	)
Net income (loss) attributable to    SmartStop Self Storage REIT, Inc.		(1,539,998	)		1,692,235
Less: Distributions to preferred       stockholders		(3,107,924	)		(3,082,192	)
Less: Distributions to participating       securities		(114,364	)		(92,343	)
Net loss attributable to    common stockholders - basic:		(4,762,286	)		(1,482,300	)
Net loss attributable to    common stockholders - diluted:	$	(4,762,286	)	$	(1,482,300	)
Weighted average common shares        outstanding:
Average number of common shares           outstanding- basic		96,831,903			96,820,723
Average number of common shares           outstanding - diluted		96,831,903			96,820,723
Earnings per common share:
Basic	$	(0.05	)	$	(0.02	)
Diluted	$	(0.05	)	$	(0.02	)

The following table presents the weighted average Series A Convertible Preferred Stock, Class A and Class A-1 OP Units, unvested LTIP Units, and unvested restricted stock awards, that were excluded from the computation of diluted earnings per share above as their effect would have been antidilutive for the respective periods, and was calculated using the two-class, treasury stock or if-converted method, as applicable:

	For the Three Months Ended March 31,
	2024		2023
	Equivalent Shares (if converted)		Equivalent Shares (if converted)
Series A Convertible Preferred Stock		18,761,726		18,761,726
Class A and Class A-1 OP Units		13,127,843		12,773,507
Unvested LTIP Units		324,590		333,106
Unvested restricted stock awards		13,358		81,554
		32,227,517		31,949,893

Recently Issued Accounting Guidance

Recently Issued Accounting Guidance

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280).” The guidance in ASU 2023-07 was issued to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant

segment expenses. The amendment becomes effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact upon adoption of the new standard on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740).” The guidance in ASU 2023-09 was issued to provide investors with information to better assess how an entity’s operations and related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendment becomes effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact upon adoption of the new standard on its consolidated financial statements and related disclosures.

XML

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Summary of Sponsorship Funding Payments

Below is a summary of the portion of sponsorship funding payments which exceeds the fair value of the Series C Units received, and is recorded pursuant to ASC 606 as described above:

Balance as of December 31, 2022	$	—
Amounts incurred		3,526,927
Recorded sponsor funding reduction		(33,643	)
Balance as of December 31, 2023	$	3,493,284
Amounts incurred	$	361,207
Recorded sponsor funding reduction		(180,846	)
Balance as of March 31, 2024	$	3,673,645

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	30-40 years
Site Improvements	7-10 years

Summary of Fixed Rate Notes Payable

The table below summarizes the carrying amounts and fair values of financial instruments that are not carried at fair value as of March 31, 2024 and December 31, 2023. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of our fixed and variable rate debt was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities (categorized within Level 2 of the fair value hierarchy). The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. As of March 31, 2024 and December 31, 2023, we believe the fair value of our variable rate debt was reasonably estimated at their notional amounts as there have been minimal changes to the fixed spread portion of interest rates for similar loans observed in the market, and as the variable portion of our interest rates fluctuate with the associated market indices.

	March 31, 2024				December 31, 2023
	Fair Value		Carrying Value		Fair Value		Carrying Value
Fixed Rate Secured Debt	$	493,300,000	$	520,580,451	$	505,700,000	$	523,018,512

Schedule of Assets and Liabilities Measured at Fair Value

The table below presents the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Fair Value Measurements at March 31, 2024 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Other assets - interest rate derivatives	$	—	$	2,592,468	$	—
Other assets - foreign currency hedges	$	—	$	2,247,494	$	—
Accounts payable and accrued    liabilities - interest rate derivatives	$	—	$	101,787	$	—

	Fair Value Measurements at December 31, 2023 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Other assets - interest rate derivatives	$	—	$	3,485,281	$	—
Accounts payable and accrued    liabilities - foreign currency hedges	$	—	$	985,412	$	—

Schedule of Computation of Earnings Per Common Share

The computation of earnings per common share is as follows for the periods presented:

	For the Three Months Ended  March 31,
	2024			2023
Net income (loss)	$	(1,639,513	)	$	2,032,600
Net (income) loss attributable to    noncontrolling interests		99,515			(340,365	)
Net income (loss) attributable to    SmartStop Self Storage REIT, Inc.		(1,539,998	)		1,692,235
Less: Distributions to preferred       stockholders		(3,107,924	)		(3,082,192	)
Less: Distributions to participating       securities		(114,364	)		(92,343	)
Net loss attributable to    common stockholders - basic:		(4,762,286	)		(1,482,300	)
Net loss attributable to    common stockholders - diluted:	$	(4,762,286	)	$	(1,482,300	)
Weighted average common shares        outstanding:
Average number of common shares           outstanding- basic		96,831,903			96,820,723
Average number of common shares           outstanding - diluted		96,831,903			96,820,723
Earnings per common share:
Basic	$	(0.05	)	$	(0.02	)
Diluted	$	(0.05	)	$	(0.02	)

Summary of Antidilutive Shares Excluded from Computation of Earnings per Share

The following table presents the weighted average Series A Convertible Preferred Stock, Class A and Class A-1 OP Units, unvested LTIP Units, and unvested restricted stock awards, that were excluded from the computation of diluted earnings per share above as their effect would have been antidilutive for the respective periods, and was calculated using the two-class, treasury stock or if-converted method, as applicable:

	For the Three Months Ended March 31,
	2024		2023
	Equivalent Shares (if converted)		Equivalent Shares (if converted)
Series A Convertible Preferred Stock		18,761,726		18,761,726
Class A and Class A-1 OP Units		13,127,843		12,773,507
Unvested LTIP Units		324,590		333,106
Unvested restricted stock awards		13,358		81,554
		32,227,517		31,949,893

XML

Real Estate (Tables)

3 Months Ended

Mar. 31, 2024

Summary of Activity in Real Estate Facilities

The following summarizes the activity in real estate during the three months ended March 31, 2024:

Real estate
Balance at December 31, 2023	$	1,924,746,372
Impact of foreign exchange rate    changes and other		(5,001,767	)
Improvements and additions		912,682
Balance at March 31, 2024	$	1,920,657,287
Accumulated depreciation
Balance at December 31, 2023	$	(255,844,284	)
Depreciation expense		(13,309,061	)
Impact of foreign exchange rate    changes and other		695,127
Balance at March 31, 2024	$	(268,458,218	)

XML

Investments in Unconsolidated Real Estate Ventures (Tables)

3 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

Summary of Investments in Unconsolidated Real Estate Ventures

The following table summarizes our 50% ownership interests in investments in unconsolidated real estate ventures in Canada (the “JV Properties”):

JV Property	Date Real Estate Venture Became Operational	Carrying Value of Investment as of March 31, 2024		Carrying Value of Investment as of December 31, 2023
Dupont (1)(6)	October 2019	$	3,820,653	$	3,974,813
East York (2)(6)	June 2020		5,562,486		5,662,757
Brampton (2)(6)	November 2020		1,939,756		1,974,811
Vaughan (2)(6)	January 2021		2,231,788		2,297,273
Oshawa (2)(6)	August 2021		1,243,591		1,274,680
Scarborough (2)(5)	November 2021		2,290,734		2,342,720
Aurora (1)(5)	December 2022		2,309,078		2,480,800
Kingspoint (2)(5)	March 2023		3,745,425		3,947,014
Markham (1)(5)	Under Development		2,514,941		2,063,919
Regent (3)	Under Development		2,687,266		2,737,202
Whitby (4)	January 2024		7,809,878		7,075,611
		$	36,155,596	$	35,831,600

(1)These joint venture properties were acquired through the SSGT II Merger, which closed on June 1, 2022.

(2)These joint venture properties were acquired through the SST IV Merger, which closed on March 17, 2021.

(3)This property is currently leased as a single tenant industrial lease. The joint venture plans to develop this property into a self storage facility in the future.

(4)This property was acquired on January 12, 2023 in connection with a purchase agreement assumed in the SSGT II Merger.

(5)As of March 31, 2024, these properties were encumbered by first mortgages pursuant to the SmartCentres Financings (defined below).

(6)As of March 31, 2024, these properties were encumbered by first mortgages pursuant to the RBC JV Term Loan (defined below).

XML

Debt (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Summarized Real Estate Secured Debt

Our debt is summarized as follows:

Loan	March 31, 2024			December 31, 2023			Interest Rate			Maturity Date
KeyBank CMBS Loan(1)	$	90,593,188		$	91,041,968			3.89	%	8/1/2026
Ladera Office Loan		3,808,862			3,832,774			4.29	%	11/1/2026
2024 Credit Facility (8)		520,880,891			—			7.09	%	2/22/2027
2027 NBC Loan (6) (7)		55,372,500			—			7.55	%	3/7/2027
KeyBank Florida CMBS Loan(2)		50,542,392			50,750,997			4.65	%	5/1/2027
2028 Canadian Term Loan (6)		81,213,000			82,973,000			6.41	%	12/1/2028
CMBS Loan(3)		104,000,000			104,000,000			5.00	%	2/1/2029
SST IV CMBS Loan (4)		40,500,000			40,500,000			3.56	%	2/1/2030
2032 Private Placement Notes (5)		150,000,000			150,000,000			5.28	%	4/19/2032
Credit Facility Term Loan - USD		—			250,000,000
Credit Facility Revolver - USD		—			318,688,429
Discount on secured debt, net		(76,991	)		(80,227	)
Debt issuance costs, net		(3,633,319	)		(4,305,607	)
Total debt	$	1,093,200,523		$	1,087,401,334

(1)This fixed rate loan encumbers 29 properties (Whittier, La Verne, Santa Ana, Upland, La Habra, Monterey Park, Huntington Beach, Chico, Lancaster I, Riverside, Fairfield, Lompoc, Santa Rosa, Federal Heights, Aurora, Littleton, Bloomingdale, Crestwood, Forestville, Warren I, Sterling Heights, Troy, Warren II, Beverly, Everett, Foley, Tampa, Boynton Beach, and Lancaster II) with monthly interest only payments until September 2021, at which time both interest and principal payments became due monthly. The separate assets of these encumbered properties are not available to pay our other debts.

(2)This fixed rate loan encumbers five properties (Pompano Beach, Lake Worth, Jupiter, Royal Palm Beach, and Delray) with monthly interest only payments until June 2022, at which time both interest and principal payments became due monthly. The separate assets of these encumbered properties are not available to pay our other debts.

(3)This fixed rate, interest only loan encumbers 10 properties (Myrtle Beach I, Myrtle Beach II, Port St. Lucie, Plantation, Sonoma, Las Vegas I, Las Vegas II, Las Vegas III, Ft Pierce, and Nantucket Island). The separate assets of these encumbered properties are not available to pay our other debts.

(4)On March 17, 2021, in connection with the SST IV Merger, we assumed a $40.5 million fixed rate CMBS financing with KeyBank as the initial lender pursuant to a mortgage loan (the “SST IV CMBS Loan”). This fixed rate loan encumbers seven properties owned by us (Jensen Beach, Texas City, Riverside, Las Vegas IV, Puyallup, Las Vegas V, and Plant City). The separate assets of these encumbered properties are not available to pay our other debt. The loan has a maturity date of February 1, 2030. Monthly payments due under the loan agreement (the “SST IV CMBS Loan Agreement”) are interest only, with the full principal amount becoming due and payable on the maturity date.

(5)As of March 31, 2023, a Total Leverage Ratio Event (as defined below) had occurred, and the interest rate on such Note increased to 5.28% prospectively. For additional information regarding this loan, see 2032 Private Placement Notes below.

(6)The amounts shown above are in USD based on the foreign exchange rate in effect as of the date presented.

(7)This loan incurs interest at an all in rate of CORRA (as defined below), plus a CORRA adjustment of approximately 0.30%, plus a spread of 2.20%. The effective interest rate on this loan is 6.42% when factoring the effects of a CORRA Swap which we entered into with the National Bank of Canada for the initial term of the loan. The Dufferin, Oakville II, Burlington II, Iroquois Shore Rd, and Stoney Creek I properties are encumbered by this loan. See Note 7 – Derivative Instruments for additional information.

(8)During the three months ended March 31, 2024, this loan incurred interest at daily simple secured overnight financing rate ("SOFR") plus a spread of 1.65% and a SOFR index adjustment of 0.10% (the "SOFR Index

Adjustment"). As of April 1, 2024, our consolidated leverage ratio was within the second leverage tier, whereby interest began accruing at daily simple SOFR plus a spread of 1.85%, plus the SOFR Index Adjustment.

Future Principal Payment Requirements on Outstanding Debt

The following table presents the future principal payments required on outstanding debt as of March 31, 2024:

2024	$	2,787,760
2025		3,969,391
2026		94,321,605
2027		623,059,664
2028		78,272,413
2029 and thereafter		294,500,000
Total payments		1,096,910,833
Discount on secured debt		(76,991	)
Debt issuance costs, net		(3,633,319	)
Total	$	1,093,200,523

XML

Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Financial Instruments

The following table summarizes the terms of our derivative financial instruments as of March 31, 2024:

	Notional Amount		Strike			Effective Date or Date Assumed	Maturity Date
Interest Rate Derivatives:
SOFR Cap	$	125,000,000		2.00	%	June 1, 2022	June 28, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 1, 2025
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
CORRA Swap (1)	$	75,000,000		3.93	%	March 12, 2024	March 7, 2027
Foreign Currency Forwards:
Denominated in CAD (1)(2)	$	132,350,000		1.3273		July 5, 2023	April 12, 2024

(1)Notional amounts shown are denominated in CAD.

(2)On April 12, 2024, we settled this hedge and we received approximately $3.5 million. We simultaneously entered into a new foreign currency hedge with a notional amount of $136,476,000 CAD at a strike rate of 1.3648 which matures on April 11, 2025.
 

The following table summarizes the terms of our derivative financial instruments as of December 31, 2023:

	Notional Amount		Strike			Effective Date or Date Assumed	Maturity Date
Interest Rate Derivatives:
SOFR Cap	$	125,000,000		2.00	%	June 1, 2022	June 28, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 1, 2025
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
SOFR Cap	$	100,000,000		4.75	%	December 1, 2022	December 2, 2024
Foreign Currency Forwards:
Denominated in CAD (1)	$	132,350,000		1.3273		July 5, 2023	April 12, 2024
Denominated in CAD (1) (2)	$	30,000,000		1.3782		November 16, 2023	January 16, 2024

(1)Notional amount shown is denominated in CAD.

(2)On January 16, 2024 we rolled this hedge without any cash settlement, effectively extending the maturity date to February 15, 2024 at a strike rate of 1.3781. Additionally, on February 16, 2024 we further rolled this hedge without any cash settlement at a strike rate of 1.3781. This hedge ultimately matured on March 7, 2024 whereby we owed and paid approximately $0.5 million at settlement.

Schedule of Fair Value of Derivative Financial Instruments and Classification In Consolidated Balance Sheets

The following tables present a gross presentation of the fair value of our derivative financial instruments as well as their classification on our consolidated balance sheets as of March 31, 2024 and December 31, 2023:

	Asset/Liability Derivatives
	Fair Value
Balance Sheet Location	March 31, 2024		December 31, 2023
Interest Rate Derivatives
Other assets	$	2,592,468	$	3,485,281
Accounts payable and accrued liabilities	$	101,787	$	—
Foreign Currency Hedges
Other assets	$	2,247,494	$	—
Accounts payable and accrued liabilities	$	—	$	985,412

Summary of Effect of Derivative Financial Instruments designated for hedge accounting, on Consolidated Statements of Operations

The following tables presents the effect of our derivative financial instruments designated for hedge accounting, on our consolidated statements of operations for the periods presented:

	Gain (loss) recognized in OCI for the three months ended March 31,						Location of amounts reclassified from OCI into income	Gain (loss) reclassified from OCI for the three months ended March 31,
Type	2024			2023				2024		2023
Interest Rate Swaps	$	(60,369	)	$	-		Interest expense	$	41,418	$	45,546
Interest Rate Caps		468,248			(526,318	)	Interest expense		873,134		921,477
Foreign Currency Forwards		1,355,914			(91,616	)	N/A		-		-
	$	1,763,793		$	(617,934	)		$	914,552	$	967,023

XML

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Summary of the Company's Income Tax Expense (Benefit)

The following is a summary of our income tax expense (benefit) for the three months ended March 31, 2024 and 2023:

	For the three months ended March 31, 2024
	Federal			State			Canadian		Total
Current	$	-		$	8,861		$	115,560	$	124,421
Deferred		68,057			2,828			146,997		217,882
Total	$	68,057		$	11,689		$	262,557	$	342,303
	For the three months ended March 31, 2023
	Federal			State			Canadian		Total
Current	$	51,557		$	9,277		$	96,099	$	156,933
Deferred		(2,619	)		(399	)		123,305		120,287
Total	$	48,938		$	8,878		$	219,404	$	277,220

Schedule of Deferred Tax Assets and Liabilities

The major sources of temporary differences that give rise to the deferred tax effects are shown below:

	March 31, 2024			December 31, 2023
Deferred tax liabilities:
Intangible contract assets	$	(15,092	)	$	(18,111	)
Canadian real estate		(9,904,999	)		(9,887,050	)
Total deferred tax liability		(9,920,091	)		(9,905,161	)
Deferred tax assets:
Other		1,527,465			1,267,292
Canadian real estate and non-capital losses		7,718,063			7,561,373
Total deferred tax assets		9,245,528			8,828,665
Valuation allowance		(892,589	)		(667,514	)
Net deferred tax liabilities	$	(1,567,152	)	$	(1,744,010	)

XML

Segment Disclosures (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Summary of Reportable Segments

The following tables summarize information for the reportable segments for the periods presented:

	Three Months Ended March 31, 2024
				Managed REIT			Corporate
	Self Storage			Platform			and Other			Total
Revenues:
Self storage rental revenue	$	50,469,142		$	—		$	—		$	50,469,142
Ancillary operating revenue		2,192,633			—			—			2,192,633
Managed REIT Platform revenue		—			2,734,207			—			2,734,207
Reimbursable costs from Managed REITs		—			1,646,075			—			1,646,075
Total revenues		52,661,775			4,380,282			—			57,042,057
Operating expenses:
Property operating expenses		17,389,955			—			—			17,389,955
Managed REIT Platform expense		—			851,187			—			851,187
Reimbursable costs from Managed REITs		—			1,646,075			—			1,646,075
General and administrative		—			—			7,426,164			7,426,164
Depreciation		13,353,607			—			230,791			13,584,398
Intangible amortization expense		24,135			48,930			—			73,065
Acquisition expenses		70,876			—			—			70,876
Total operating expenses		30,838,573			2,546,192			7,656,955			41,041,720
Income (loss) from operations		21,823,202			1,834,090			(7,656,955	)		16,000,337
Other income (expense):
Equity in earnings (losses) from    investments in JV Properties		—			—			(329,092	)		(329,092	)
Equity in earnings (losses) from    investments in Managed REITs		—			(451,562	)		—			(451,562	)
Other, net		340,777			450,376			(283,638	)		507,515
Interest expense		(16,511,848	)		—			(41,394	)		(16,553,242	)
Loss on debt extinguishment		(471,166	)		—			—			(471,166	)
Income tax (expense) benefit		(268,190	)		(64,207	)		(9,906	)		(342,303	)
Net income (loss)	$	4,912,775		$	1,768,697		$	(8,320,985	)	$	(1,639,513	)

	Three Months Ended March 31, 2023
				Managed REIT			Corporate
	Self Storage			Platform			and Other			Total
Revenues:
Self storage rental revenue	$	51,276,898		$	—		$	—		$	51,276,898
Ancillary operating revenue		2,190,622			—			—			2,190,622
Managed REIT Platform revenue		—			2,276,535			—			2,276,535
Reimbursable costs from Managed REITs		—			1,391,210			—			1,391,210
Total revenues		53,467,520			3,667,745			—			57,135,265
Operating expenses:
Property operating expenses		16,533,452			—			—			16,533,452
Managed REIT Platform expense		—			549,936			—			549,936
Reimbursable costs from Managed REITs		—			1,391,210			—			1,391,210
General and administrative		—			—			6,536,626			6,536,626
Depreciation		13,085,836			—			186,435			13,272,271
Intangible amortization expense		1,870,775			48,930			—			1,919,705
Acquisition expenses		31,190			—			—			31,190
Total operating expenses		31,521,253			1,990,076			6,723,061			40,234,390
Income (loss) from operations		21,946,267			1,677,669			(6,723,061	)		16,900,875
Other income (expense):
Equity in earnings (losses) from    investments in JV Properties		—			—			(405,111	)		(405,111	)
Equity in earnings (losses) from    investments in Managed REITs		—			(233,025	)		—			(233,025	)
Other, net		(415,297	)		1,142,964			23,311			750,978
Interest expense		(14,661,959	)		—			(41,938	)		(14,703,897	)
Income tax (expense) benefit		(144,596	)		—			(132,624	)		(277,220	)
Net income (loss)	$	6,724,415		$	2,587,608		$	(7,279,423	)	$	2,032,600

Summary of Total Assets by Segment

The following table summarizes our total assets by segment:

Segments	March 31, 2024		December 31, 2023
Self Storage(1)	$	1,785,797,427	$	1,798,510,325
Managed REIT Platform(2)		42,605,655		41,761,259
Corporate and Other		57,993,541		55,369,141
Total assets(3)	$	1,886,396,623	$	1,895,640,725

(1)Included in the assets of the Self Storage segment as of March 31, 2024 and December 31, 2023 was approximately $52.2 million of goodwill. Additionally, as of March 31, 2024 and December 31, 2023, there were no accumulated impairment charges to goodwill within the Self Storage segment.

(2)Included in the assets of the Managed REIT Platform segment as of March 31, 2024 and December 31, 2023 was approximately $1.4 million of goodwill. Such goodwill is net of accumulated impairment charges in the Managed REIT Platform segment of approximately $24.7 million, which relates to the impairment charge recorded during the quarter ended March 31, 2020.

(3)Other than our investments in and advances to Managed REITs and investments in JV properties, substantially all of our investments in real estate facilities and intangible assets as of March 31, 2024 and December 31, 2023, respectively, were associated with our self storage platform.

XML

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2024

Related Party Transaction [Line Items]

Summary of Related Party Costs

Pursuant to the terms of the agreements described above, the following table summarizes related party costs incurred and paid by us for the year ended December 31, 2023 and the three months ended March 31, 2024, as well as any related amounts payable as of December 31, 2023 and March 31, 2024.

	Year Ended December 31, 2023						Three Months Ended March 31, 2024
	Incurred		Paid		Payable		Incurred		Paid		Payable
Expensed
Transfer Agent fees	$	1,479,254	$	1,473,005	$	75,000	$	378,590	$	378,590	$	75,000
Additional paid-in capital
Transfer Agent expenses		—		—		—		—		—		—
Stockholder servicing          fee		—		—		—		—		—		—
Other
Other		—		—		340,980		—		—		340,980
Total	$	1,479,254	$	1,473,005	$	415,980	$	378,590	$	378,590	$	415,980

Summary of Related Party Fees and Reimbursable Costs

Pursuant to the terms of the various agreements described above for the Managed REITs, the following summarizes the related party fees for the three months ended March 31, 2024 and 2023:

	Three Months Ended
	March 31,
Managed REIT Platform Revenues	2024			2023
Asset Management Fees:
SST VI		1,059,898			592,122
SSGT III		336,996			171,407
		1,396,894			763,529
Property Management Fees:
SST VI		392,517			231,222
SSGT III		123,208			54,315
JV Properties		217,049			171,895
		732,774			457,432
Tenant Protection Program Fees:
SST VI		272,724			142,596
SSGT III		82,245			14,708
JV Properties		87,904			58,329
		442,873			215,633
Acquisition Fees:
SST VI		33,647			542,681
SSGT III		—			157,000
		33,647			699,681
Other Managed REIT Fees(1)		308,865			140,260
Managed REIT Platform Fees		2,915,053			2,276,535
Sponsor funding reduction (2)		(180,846	)		—
Total Managed REIT Platform Revenues	$	2,734,207		$	2,276,535

(1)Such revenue primarily includes other property management related fees, construction management fees, development fees, and other miscellaneous revenues.

(2)Pursuant to the Sponsor Funding Agreement, SmartStop funds certain costs of SST VI's share sales, and in return receives Series C Units in SST VI's OP. The excess of the funding over the value of the Series C Units received is accounted for as a reduction of Managed REIT Platform revenues from SST VI over the remaining estimated term of the management contracts with SST VI.

SST VI

Related Party Transaction [Line Items]

Summary of Related Party Carrying Value Of Investments In Advances

The following table summarizes the carrying value of our investments in and advances to SST VI as of March 31, 2024 and December 31, 2023:
 

Receivables:	As of March 31, 2024		As of December 31, 2023
Receivables and advances due	$	9,663,148	$	5,861,326
Debt:
SST VI Note		15,000,000		15,000,000
Equity:
SST VI OP Units and    SST VI SLP		1,568,062		1,932,357
SST VI Class C Subordinated Units		3,645,126		3,306,494
Total investments in and advances	$	29,876,336	$	26,100,177

Investments in and advances to SSGT III OP

Equity Investments

On August 29, 2022, SmartStop OP made an investment of $5.0 million in SS Growth Operating Partnership III, L.P., the operating partnership of SSGT III (“SSGT III OP”), in exchange for common units of limited partnership interest in SSGT III OP. Additionally, a subsidiary of SmartStop OP owns a special limited partnership interest (the “SSGT III SLP”) in SSGT III OP.

For the three months ended March 31, 2024, we recorded a loss related to our equity interest in SSGT III OP of approximately $0.2 million, and received distributions in the amount of approximately $68,000.

For the three months ended March 31, 2023, we recorded a loss related to our equity interest in SSGT III OP of approximately $0.2 million, and received distributions in the amount of approximately $54,000.

Debt Investments

On August 9, 2022, in connection with SSGT III's acquisition of two self storage facilities, our Operating Partnership entered into a mezzanine loan agreement with a wholly-owned subsidiary of SSGT III, for up to $50.0 million (the “SSGT III Mezzanine Loan”), of which $42.0 million was funded as an initial draw at the time of closing. The SSGT III Mezzanine Loan requires a commitment fee equal to 1.0% of the amount drawn at closing of the SSGT III Mezzanine Loan, and subsequent draws.

The SSGT III Mezzanine Loan was amended on December 20, 2022, such amendment increased the principal borrowing amount from up to $50 million to $77 million. Pursuant to this amendment, the interest rate on the SSGT III Mezzanine Loan became a variable rate equal to SOFR plus 3.0%. Payments on the SSGT III Mezzanine Loan are interest only, and it had an initial maturity date of August 9, 2023. SSGT III extended the ultimate maturity date of the SSGT III Mezzanine Loan until August 9, 2024, as such, the interest rate of the SSGT III Mezzanine Loan increased to SOFR plus 4.0% per annum, pursuant to the December 20, 2022 amendment. The SSGT III Mezzanine Loan may be prepaid in whole or in part at any time without fees or penalty and, in certain circumstances, equity interests securing the SSGT III Mezzanine Loan may be released from the pledge of collateral. The SSGT III Mezzanine Loan is secured by a pledge of the equity interest in the indirect, wholly-owned subsidiaries of SSGT III, that owned seven operating self storage facilities as of March 31, 2024. SSGT III OP, also serves as a non-recourse guarantor. In August 2023, SSGT III exercised the extension option, such that the SSGT III Mezzanine Loan is due in full on August 9, 2024.

SSGT III OP

Related Party Transaction [Line Items]

Summary of Related Party Carrying Value Of Investments In Advances

The following table summarizes the carrying value of our investments in and advances to SSGT III OP as of March 31, 2024 and December 31, 2023:
 

Receivables:	As of March 31, 2024		As of December 31, 2023
Receivables and advances due	$	1,756,522	$	628,710
Debt:
SSGT III Mezzanine Loan(1)		1,000,000		4,000,000
Equity:
SSGT III OP Units and   SSGT III SLP		3,421,526		3,661,978
Total investments in and advances	$	6,178,048	$	8,290,688

(1) As of March 31, 2024 and December 31, 2023, $1.5 million was available to be drawn on the SSGT III Mezzanine Loan. On May 2, 2024, SSGT III paid down the remaining $1.0 million outstanding on the SSGT III Mezzanine Loan.

XML

Equity Based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Time Based Awards

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Schedule of Un-Vested Share Activity

The following table summarizes the activity related to our time based awards:

	Restricted Stock					LTIP Units
Time Based Award Grants	Shares			Weighted-Average Grant-Date Fair Value		Units			Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2022		145,850		$	11.50		290,641		$	11.16
Granted		43,720			14.30		315,915			13.30
Vested		(96,295	)		10.86		(226,271	)		11.58
Forfeited		(7,960	)		13.92		—			—
Unvested at December 31, 2023		85,315			13.44		380,285			12.69
Granted		40,293			14.30		298,247			13.53
Vested		(41,726	)		12.58		—			—
Forfeited		(3,155	)		14.27		—			—
Unvested at March 31, 2024		80,727		$	14.28		678,532		$	13.06

Performance Based Awards

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Schedule of Un-Vested Share Activity

The following table summarizes our activity related to our performance based awards:

	Restricted Stock						LTIP Units
Performance Based Award Grants	Shares				Weighted-Average Grant-Date Fair Value		Units			Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2022		5,752			$	9.78		380,536		$	10.39
Granted		5,752		(1)		9.78		271,199			13.30
Vested		(11,504	)			9.78		(118,720	)		9.09
Forfeited		—				—		—			—
Unvested at December 31, 2023		—				—		533,015			12.16
Granted		—				—		270,096			13.55
Vested		—				—		(148,387	)		9.30
Forfeited		—				—		—			—
Unvested at March 31, 2024		—			$	—		654,724		$	13.38

(1) On March 2, 2023 the Compensation Committee of the board of directors approved the vesting of the 2020 performance grant at 200% of the targeted award. Accordingly, individuals who elected to receive performance based restricted stock were issued and immediately vested additional shares to equal 200% of their targeted award.

XML

Subsequent Events (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The table below presents the terms of these three SOFR interest rate caps:

Notional		Cap Rate			Effective Date	Maturity Date
$	100,000,000		1.50	%	May 1, 2024	May 1, 2025
$	100,000,000		2.00	%	July 1, 2024	July 1, 2025
$	200,000,000		5.50	%	December 2, 2024	December 1, 2026

XML

Organization - Additional Information (Detail) $ / shares in Units, ft² in Millions, $ in Millions				1 Months Ended	3 Months Ended
	Jan. 15, 2024 $ / shares	Dec. 30, 2021 StorageFacility	Jan. 31, 2014 USD ($)	Jan. 31, 2017 USD ($) shares	Mar. 31, 2024 ft² State StorageFacility StorageUnit Property shares	Nov. 30, 2016 USD ($)
Organization And Nature Of Operations [Line Items]
Date of formation of company					Jan. 08, 2013
Number of self storage facilities | StorageFacility		2			154
Number of states located for self storage facilities | State					19
Shares issuable pursuant to distribution reinvestment plan | $			$ 95.0
Advisor, SS Toronto REIT Advisors, Inc., and SS Growth Advisor, LLC.
Organization And Nature Of Operations [Line Items]
Percentage of limited partnership interests					88.00%
SAM and Affiliates
Organization And Nature Of Operations [Line Items]
Percentage of limited partnership interests owned by noncontrolling owners					12.00%
Distribution Reinvestment Plan
Organization And Nature Of Operations [Line Items]
Common stock, value authorize | $						$ 100.9
Description for termination of offering					The DRP Offering may be terminated at any time upon 10 days’ prior written notice to stockholders.
Primary Offering
Organization And Nature Of Operations [Line Items]
Initial public offering commenced period description					We commenced our initial public offering in January 2014
Maximum | Primary Offering
Organization And Nature Of Operations [Line Items]
Common stock, value authorize | $			$ 1,000.0
Class A Common stock
Organization And Nature Of Operations [Line Items]
Estimated value per common share | $ / shares	$ 15.25
Class A Common stock | Distribution Reinvestment Plan
Organization And Nature Of Operations [Line Items]
Stock Issued During Period, Shares, Dividend Reinvestment Plan					8,500,000
Class A Common stock | Common Stock
Organization And Nature Of Operations [Line Items]
Stock Issued During Period, Shares, Dividend Reinvestment Plan					335,163
Class A Common stock | Common Stock | Primary Offering
Organization And Nature Of Operations [Line Items]
Number of shares issued in offering				48,000,000
Gross proceeds from issuance of common stock | $				$ 493.0
Class T Common stock
Organization And Nature Of Operations [Line Items]
Estimated value per common share | $ / shares	$ 15.25
Class T Common stock | Distribution Reinvestment Plan
Organization And Nature Of Operations [Line Items]
Stock Issued During Period, Shares, Dividend Reinvestment Plan					1,200,000
Class T Common stock | Common Stock
Organization And Nature Of Operations [Line Items]
Stock Issued During Period, Shares, Dividend Reinvestment Plan					38,578
Class T Common stock | Common Stock | Primary Offering
Organization And Nature Of Operations [Line Items]
Number of shares issued in offering				7,000,000
Gross proceeds from issuance of common stock | $				$ 73.0
Managed REITS
Organization And Nature Of Operations [Line Items]
Number of properties owned by Managed REITs which is operated by the company | Property					32
Number of self storage units | StorageUnit					25,400
Net rentable area, primarily self storage space | ft²					2.8

XML

Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2024 USD ($) Segment Trademark Property	Mar. 31, 2023 USD ($) Property	Dec. 31, 2023 USD ($)	Nov. 01, 2023 $ / shares
Summary Of Significant Accounting Policies [Line Items]
Payments to acquire intangible assets	$ 0	$ 0
Business acquisition, transaction costs	$ 71,000	$ 31,000
Number of property acquisitions | Property	0	0
Impairment losses of real property assets recognized	$ 0	$ 0
Indefinite lived trademark	15,735,294		$ 15,770,588
Intangible assets, net of accumulated amortization	1,108,769		1,170,100
Allowance for doubtful accounts	900,000		900,000
Gross amounts of lease intangibles	80,500,000		80,700,000
Accumulated amortization	$ 79,400,000		79,500,000
Maximum annual contributions per employee, percentage	100.00%
Gains (losses) on exchange rate changes in equity investments recorded in other income (expense)	$ (1,400,000)	$ 35,000
Investment, Type [Extensible Enumeration]	Real Estate Investment	Real Estate Investment
Minimum percentage of ordinary taxable income to be distributed to stockholders	90.00%
Employer matching contribution, percent	100.00%
Employer matching contribution, percent of match	4.00%
Employer matching contributions, amount	$ 200,000	$ 200,000
Number of reportable business segments | Segment	2
Rental Income | Geographic Concentration Risk | Florida
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk Percentage1	23.00%
Rental Income | Geographic Concentration Risk | California
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk Percentage1	20.00%
Rental Income | Geographic Concentration Risk | Greater Toronto Area of Canada
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk Percentage1	10.00%
Revolving Credit Facility
Summary Of Significant Accounting Policies [Line Items]
Debt issuance cost, gross	$ 9,100,000		4,500,000
Accumulated amortization of debt issuance costs	300,000		4,100,000
Non Revolving Debt
Summary Of Significant Accounting Policies [Line Items]
Debt issuance cost, gross	5,700,000		7,700,000
Accumulated amortization of debt issuance costs	2,100,000		3,400,000
Self Storage
Summary Of Significant Accounting Policies [Line Items]
Total estimated future amortization expense of intangible assets, year 2024	100,000
Total estimated future amortization expense of intangible assets, year 2025	100,000
Total estimated future amortization expense of intangible assets, year 2026	100,000
Total estimated future amortization expense of intangible assets, year 2027	100,000
Total estimated future amortization expense of intangible assets, year 2028	100,000
Total estimated future amortization expense of intangible assets, thereafter	600,000
Intangible assets, net of accumulated amortization	$ 1,100,000
Weighted-average amortization period on remaining intangible assets	6 years
Minimum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life	3 years
Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life	5 years
Strategic Storage Trademark
Summary Of Significant Accounting Policies [Line Items]
Trademarks acquired amount	$ 35,000		71,000
Indefinite lived trademark	15,700,000		$ 15,700,000
Total estimated future amortization expense of intangible assets, year 2024	35,000
Total estimated future amortization expense of intangible assets, after year one	$ 0
Self Administration Transaction
Summary Of Significant Accounting Policies [Line Items]
Number of trademarks acquired | Trademark	2
SST VI
Summary Of Significant Accounting Policies [Line Items]
Offering price | $ / shares				$ 9.3
SST VI | Class A Common stock
Summary Of Significant Accounting Policies [Line Items]
Offering price | $ / shares				10
SST VI | Minimum | Class A Common stock
Summary Of Significant Accounting Policies [Line Items]
Offering price | $ / shares				10
SST VI | Maximum | Class A Common stock
Summary Of Significant Accounting Policies [Line Items]
Offering price | $ / shares				$ 10
Pacific Oak Holding Group
Summary Of Significant Accounting Policies [Line Items]
Variable interest entity non-voting ownership percentage	10.00%
Operating Expense
Summary Of Significant Accounting Policies [Line Items]
Advertising costs	$ 1,300,000	1,200,000
General and Administrative Expense
Summary Of Significant Accounting Policies [Line Items]
Advertising costs	$ 500,000	$ 500,000

XML

Summary of Significant Accounting Policies - Summary of Sponsorship Funding Payments (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Balance at Beginning	$ 3,493,284	$ 0
Amounts incurred	361,207	3,526,927
Recorded sponsor funding reduction	(180,846)	(33,643)
Balance at Ending	$ 3,673,645	$ 3,493,284

XML

Summary of Significant Accounting Policies - Estimated Useful Lives used to Depreciate Real Property Assets (Detail)	Mar. 31, 2024
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Depreciation Method [Extensible Enumeration]	us-gaap:LandMember
Buildings | Minimum
Property Plant And Equipment [Line Items]
Standard Depreciable Life	30 years
Buildings | Maximum
Property Plant And Equipment [Line Items]
Standard Depreciable Life	40 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	10 years

XML

Summary of Significant Accounting Policies - Summary of Fixed Rate Notes Payable (Details) - Fixed Rate Secured Debt - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 493,300,000	$ 505,700,000
Carrying Value	$ 520,580,451	$ 523,018,512

XML

Summary of Significant Accounting Policies - Schedule of Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Recurring [Member] - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Interest rate derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	$ 0	$ 0
Accounts payable and accrued liabilities	0
Interest rate derivatives | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	2,592,468	3,485,281
Accounts payable and accrued liabilities	101,787
Interest rate derivatives | Significant unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	0	0
Accounts payable and accrued liabilities	0
Foreign Currency Hedges | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	0
Accounts payable and accrued liabilities		0
Foreign Currency Hedges | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	2,247,494
Accounts payable and accrued liabilities		985,412
Foreign Currency Hedges | Significant unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	$ 0
Accounts payable and accrued liabilities		$ 0

XML

Summary of Significant Accounting Policies - Schedule of Computation of Earnings Per Common Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net income (loss)	$ (1,639,513)	$ 2,032,600
Net (income) loss attributable to noncontrolling interests	99,515	(340,365)
Net income (loss) attributable to SmartStop Self Storage REIT, Inc.	(1,539,998)	1,692,235
Less: Distributions to preferred stockholders	(3,107,924)	(3,082,192)
Less: Distributions to participating securities	(114,364)	(92,343)
Net loss attributable to common stockholders - basic:	(4,762,286)	(1,482,300)
Net loss attributable to common stockholders - diluted:	$ (4,762,286)	$ (1,482,300)
Average number of common shares outstanding- basic	96,831,903	96,820,723
Average number of common shares outstanding - diluted	96,831,903	96,820,723
Earnings Per Share, Basic	$ (0.05)	$ (0.02)
Earnings Per Share, Diluted	$ (0.05)	$ (0.02)

XML

Summary of Significant Accounting Policies - Summary of Antidilutive Shares Excluded from Computation of Earnings per Share (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Equivalent Shares, excluded from computation of earnings per share as effect of antidilutive	32,227,517	31,949,893
Series A Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Equivalent Shares, excluded from computation of earnings per share as effect of antidilutive	18,761,726	18,761,726
Class A and Class A-1 OP Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Equivalent Shares, excluded from computation of earnings per share as effect of antidilutive	13,127,843	12,773,507
Unvested LTIP Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Equivalent Shares, excluded from computation of earnings per share as effect of antidilutive	324,590	333,106
Unvested restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Equivalent Shares, excluded from computation of earnings per share as effect of antidilutive	13,358	81,554

XML

Real Estate - Schedule of Activity in Real Estate Facilities (Detail)	3 Months Ended
	Mar. 31, 2024 USD ($)
Real estate facilities
Real estate facilities, beginning balance	$ 1,924,746,372
Impact of foreign exchange rate changes and other	(5,001,767)
Improvements and additions	912,682
Real estate facilities, ending balance	1,920,657,287
Accumulated depreciation
Accumulated depreciation, beginning balance	(255,844,284)
Depreciation expense	(13,309,061)
Impact of foreign exchange rate changes and other	695,127
Accumulated depreciation, ending balance	$ (268,458,218)

XML

Real Estate - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions							3 Months Ended
	May 13, 2024 USD ($)	Apr. 10, 2024 USD ($)	Jun. 01, 2022 USD ($) StorageFacility	Dec. 30, 2021 StorageFacility	Mar. 17, 2021 StorageFacility RealEstateVenture shares	Nov. 10, 2020 RealEstateVenture	Mar. 31, 2024 RealEstateVenture State StorageFacility $ / shares	Dec. 31, 2023 $ / shares
Business Acquisition [Line Items]
Number of self storage facilities | StorageFacility				2			154
Number of states located for self storage facilities | State							19
Subsequent Event
Business Acquisition [Line Items]
Consideration transferred | $	$ 23.8	$ 10.5
SST IV Merger Agreement
Business Acquisition [Line Items]
Number of self storage facilities | StorageFacility					24
Percentage of voting membership interest					50.00%
SST IV Merger Agreement | Canada
Business Acquisition [Line Items]
Number of self storage real estate joint ventures						6
Number of unconsolidated real estate ventures					6
Self storage facilities | Subsequent Event
Business Acquisition [Line Items]
Forfeit earnest money | $	$ 0.2
SSGT II Merger Agreement
Business Acquisition [Line Items]
Number of self storage facilities | StorageFacility			10
Percentage of voting membership interest			50.00%
SSGT II Merger Agreement | Canada
Business Acquisition [Line Items]
Number of self storage real estate joint ventures							3
Number of operating self storage facilities							2
Number of parcels of land in various stages of development into self storage facilities							1
Class A Common stock
Business Acquisition [Line Items]
Common Stock, Par or Stated Value Per Share | $ / shares							$ 0.001	$ 0.001
Class A Common stock | SST IV Merger Agreement
Business Acquisition [Line Items]
Issuance of common stock in connection with SST IV Merger (in shares) | shares					23.1
Class A Common stock | SSGT II Merger Agreement
Business Acquisition [Line Items]
Common stock issued | $			$ 11.5

XML

Summary of Reconciles Total Consideration Transferred (Parenthetical) (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 17, 2021
Business Acquisition [Line Items]
Debt Instrument Carrying Amount	$ 1,096,910,833
Business acquisition, transaction costs	$ 70,876	$ 31,190
Key Bank Sst Iv Cmbs Loan [Member]
Business Acquisition [Line Items]
Debt Instrument Carrying Amount			$ 40,500,000

XML

Investments in Unconsolidated Real Estate Ventures - Additional Information (Details) $ in Millions, $ in Millions						3 Months Ended
	Nov. 03, 2023 USD ($)	Jan. 12, 2023 USD ($)	Jan. 12, 2023 CAD ($)	Apr. 30, 2021	Nov. 10, 2020 RealEstateVenture	Mar. 31, 2024 USD ($) RealEstateVenture	Mar. 31, 2023 USD ($)	Mar. 31, 2024 CAD ($) RealEstateVenture	Dec. 31, 2023 USD ($)	Dec. 31, 2023 CAD ($)	Nov. 03, 2023 CAD ($)	Sep. 13, 2022 CAD ($)	Jun. 01, 2022 CAD ($)	May 25, 2022	Oct. 07, 2021 USD ($)
Investments In Unconsolidated Real Estate Ventures [Line Items]
Increased amount												$ 120.0
Initial maximum amount available															$ 700.0
Extended expiration date				May 11, 2026
Guarantee obligations recourse percentage						50.00%		50.00%
RBC JV Term Loan
Investments In Unconsolidated Real Estate Ventures [Line Items]
Outstanding amount						$ 51.7		$ 70.0
Term loan	$ 70.0
Percentage of joint venture property owned	50.00%
Maturity date	Nov. 02, 2025
Fixed annual rate											6.21%
Percentage of secured obligation	50.00%
Loan amount											$ 68.9
Regent Property
Investments In Unconsolidated Real Estate Ventures [Line Items]
Equity method investment, ownership percentage						50.00%		50.00%						50.00%
Whitby Property
Investments In Unconsolidated Real Estate Ventures [Line Items]
Equity method investment, ownership percentage		50.00%	50.00%
North Whitby Property
Investments In Unconsolidated Real Estate Ventures [Line Items]
Purchase Price Percentage		50.00%	50.00%
Purchase price		$ 2.0	$ 2.7
SmartCentres Storage Finance LP | Master Mortgage Commitment Agreement
Investments In Unconsolidated Real Estate Ventures [Line Items]
Outstanding amount						$ 44.8		$ 60.7	$ 43.3	$ 57.3
Initial maximum amount available						7.70%
Maturity date				May 11, 2024
Loan to value ratio						70.00%		70.00%
SmartCentres Storage Finance LP | Regent Property
Investments In Unconsolidated Real Estate Ventures [Line Items]
Equity method investment, ownership percentage														50.00%
SmartCentres Storage Finance LP | Whitby Property
Investments In Unconsolidated Real Estate Ventures [Line Items]
Equity method investment, ownership percentage		50.00%	50.00%
Canada
Investments In Unconsolidated Real Estate Ventures [Line Items]
Equity in earnings (loss) of unconsolidated real estate ventures						$ 0.3	$ 0.4
SST IV Merger Agreement | Canada
Investments In Unconsolidated Real Estate Ventures [Line Items]
Number of self storage real estate joint ventures | RealEstateVenture					6
SSGT II Merger Agreement | SmartCentres Storage Finance LP
Investments In Unconsolidated Real Estate Ventures [Line Items]
Initial maximum amount available													$ 34.3
Guarantee obligations recourse percentage													50.00%
SSGT II Merger Agreement | SmartCentres Storage Finance LP | Dupont and Aurora Joint Venture Properties
Investments In Unconsolidated Real Estate Ventures [Line Items]
Interests													50.00%
SSGT II Merger Agreement | Canada
Investments In Unconsolidated Real Estate Ventures [Line Items]
Number of self storage real estate joint ventures | RealEstateVenture						3
Number of operating real estate properties | RealEstateVenture						2		2
Number of development real estate properties | RealEstateVenture						1		1

XML

Investments in Unconsolidated Real Estate Ventures - Summary of Investments in Unconsolidated Real Estate Ventures (Details) - USD ($)		3 Months Ended
		Mar. 31, 2024	Dec. 31, 2023
Investments In Unconsolidated Real Estate Ventures [Line Items]
Carrying Value of Investment		$ 36,155,596	$ 35,831,600
Dupont, Ontario
Investments In Unconsolidated Real Estate Ventures [Line Items]
Date Real Estate Venture Became Operational	[1],[2]	October 2019
Carrying Value of Investment	[1],[2]	$ 3,820,653	3,974,813
East York, Ontario
Investments In Unconsolidated Real Estate Ventures [Line Items]
Date Real Estate Venture Became Operational	[1],[3]	June 2020
Carrying Value of Investment	[1],[3]	$ 5,562,486	5,662,757
Brampton, Ontario
Investments In Unconsolidated Real Estate Ventures [Line Items]
Date Real Estate Venture Became Operational	[1],[3]	November 2020
Carrying Value of Investment	[1],[3]	$ 1,939,756	1,974,811
Vaughan, Ontario
Investments In Unconsolidated Real Estate Ventures [Line Items]
Date Real Estate Venture Became Operational	[1],[3]	January 2021
Carrying Value of Investment	[1],[3]	$ 2,231,788	2,297,273
Oshawa, Ontario
Investments In Unconsolidated Real Estate Ventures [Line Items]
Date Real Estate Venture Became Operational	[1],[3]	August 2021
Carrying Value of Investment	[1],[3]	$ 1,243,591	1,274,680
Scarborough, Ontario
Investments In Unconsolidated Real Estate Ventures [Line Items]
Date Real Estate Venture Became Operational	[3],[4]	November 2021
Carrying Value of Investment	[3],[4]	$ 2,290,734	2,342,720
Aurora, Ontario
Investments In Unconsolidated Real Estate Ventures [Line Items]
Date Real Estate Venture Became Operational	[2],[4]	December 2022
Carrying Value of Investment	[2],[4]	$ 2,309,078	2,480,800
Kingspoint Ontario
Investments In Unconsolidated Real Estate Ventures [Line Items]
Date Real Estate Venture Became Operational	[3],[4]	March 2023
Carrying Value of Investment	[3],[4]	$ 3,745,425	3,947,014
Markham, Ontario
Investments In Unconsolidated Real Estate Ventures [Line Items]
Date Real Estate Venture Became Operational	[2],[4]	Under Development
Carrying Value of Investment	[2],[4]	$ 2,514,941	2,063,919
Regent, Ontario
Investments In Unconsolidated Real Estate Ventures [Line Items]
Date Real Estate Venture Became Operational	[5]	Under Development
Carrying Value of Investment	[5]	$ 2,687,266	2,737,202
Whitby Property
Investments In Unconsolidated Real Estate Ventures [Line Items]
Date Real Estate Venture Became Operational	[6]	January 2024
Carrying Value of Investment	[6]	$ 7,809,878	$ 7,075,611

[1] As of March 31, 2024, these properties were encumbered by first mortgages pursuant to the RBC JV Term Loan (defined below).

[2] These joint venture properties were acquired through the SSGT II Merger, which closed on June 1, 2022.

[3] These joint venture properties were acquired through the SST IV Merger, which closed on March 17, 2021.

[4] As of March 31, 2024, these properties were encumbered by first mortgages pursuant to the SmartCentres Financings (defined below).

[5] This property is currently leased as a single tenant industrial lease. The joint venture plans to develop this property into a self storage facility in the future.

[6] This property was acquired on January 12, 2023 in connection with a purchase agreement assumed in the SSGT II Merger.

XML

Debt - Schedule of Summarized Real Estate Secured Debt (Detail) - USD ($)		3 Months Ended
		Mar. 31, 2024		Dec. 31, 2023
Debt Instrument [Line Items]
Debt Instrument Carrying Amount		$ 1,096,910,833
Debt issuance costs, net		(3,633,319)
Total debt		1,093,200,523		$ 1,087,401,334
SST IV CMBS Loan
Debt Instrument [Line Items]
Debt Instrument Carrying Amount	[1]	$ 40,500,000		40,500,000
Interest rate	[1]	3.56%
Senior notes maturity date	[1]	Feb. 01, 2030
Ladera Office Loan
Debt Instrument [Line Items]
Debt Instrument Carrying Amount		$ 3,808,862		3,832,774
Interest rate		4.29%
Senior notes maturity date		Nov. 01, 2026
Fixed Rate Secured Debt
Debt Instrument [Line Items]
Discount on secured debt, net		$ (76,991)		(80,227)
Debt issuance costs, net		(3,633,319)		(4,305,607)
Fixed Rate Secured Debt | KeyBank CMBS Loan
Debt Instrument [Line Items]
Debt Instrument Carrying Amount	[2]	$ 90,593,188		91,041,968
Debt Instrument Fixed Rate	[2]	3.89%
Senior notes maturity date	[2]	Aug. 01, 2026
Fixed Rate Secured Debt | KeyBank Florida CMBS Loan
Debt Instrument [Line Items]
Debt Instrument Carrying Amount	[3]	$ 50,542,392		50,750,997
Debt Instrument Fixed Rate	[3]	4.65%
Senior notes maturity date	[3]	May 01, 2027
Fixed Rate Secured Debt | CMBS Loan
Debt Instrument [Line Items]
Debt Instrument Carrying Amount		$ 104,000,000	[3]	104,000,000	[4]
Debt Instrument Fixed Rate	[4]	5.00%
Senior notes maturity date	[4]	Feb. 01, 2029
Credit Facility Term Loan | USD
Debt Instrument [Line Items]
Debt Instrument Carrying Amount		$ 0		250,000,000
Credit Facility Revolver | USD
Debt Instrument [Line Items]
Debt Instrument Carrying Amount		0		318,688,429
2032 Private Placement Notes
Debt Instrument [Line Items]
Debt Instrument Carrying Amount	[5]	$ 150,000,000		150,000,000
Interest rate	[5]	5.28%
Senior notes maturity date	[5]	Apr. 19, 2032
2028 Canadian Term Loan
Debt Instrument [Line Items]
Debt Instrument Carrying Amount	[6]	$ 81,213,000		82,973,000
Interest rate	[6]	6.41%
Senior notes maturity date	[6]	Dec. 01, 2028
2024 Credit Facility
Debt Instrument [Line Items]
Debt Instrument Carrying Amount	[7]	$ 520,880,891		0
Interest rate	[7]	7.09%
Senior notes maturity date	[7]	Feb. 22, 2027
2027 NBC Loan
Debt Instrument [Line Items]
Debt Instrument Carrying Amount	[6],[8]	$ 55,372,500		$ 0
Interest rate	[6],[8]	7.55%
Senior notes maturity date	[6],[8]	Mar. 07, 2027

[1] On March 17, 2021, in connection with the SST IV Merger, we assumed a $40.5 million fixed rate CMBS financing with KeyBank as the initial lender pursuant to a mortgage loan (the “SST IV CMBS Loan”). This fixed rate loan encumbers seven properties owned by us (Jensen Beach, Texas City, Riverside, Las Vegas IV, Puyallup, Las Vegas V, and Plant City). The separate assets of these encumbered properties are not available to pay our other debt. The loan has a maturity date of February 1, 2030. Monthly payments due under the loan agreement (the “SST IV CMBS Loan Agreement”) are interest only, with the full principal amount becoming due and payable on the maturity date.

[2] This fixed rate loan encumbers 29 properties (Whittier, La Verne, Santa Ana, Upland, La Habra, Monterey Park, Huntington Beach, Chico, Lancaster I, Riverside, Fairfield, Lompoc, Santa Rosa, Federal Heights, Aurora, Littleton, Bloomingdale, Crestwood, Forestville, Warren I, Sterling Heights, Troy, Warren II, Beverly, Everett, Foley, Tampa, Boynton Beach, and Lancaster II) with monthly interest only payments until September 2021, at which time both interest and principal payments became due monthly. The separate assets of these encumbered properties are not available to pay our other debts.

[3] This fixed rate loan encumbers five properties (Pompano Beach, Lake Worth, Jupiter, Royal Palm Beach, and Delray) with monthly interest only payments until June 2022, at which time both interest and principal payments became due monthly. The separate assets of these encumbered properties are not available to pay our other debts.

[4] This fixed rate, interest only loan encumbers 10 properties (Myrtle Beach I, Myrtle Beach II, Port St. Lucie, Plantation, Sonoma, Las Vegas I, Las Vegas II, Las Vegas III, Ft Pierce, and Nantucket Island). The separate assets of these encumbered properties are not available to pay our other debts.

[5] As of March 31, 2023, a Total Leverage Ratio Event (as defined below) had occurred, and the interest rate on such Note increased to 5.28% prospectively. For additional information regarding this loan, see 2032 Private Placement Notes below.

[6] The amounts shown above are in USD based on the foreign exchange rate in effect as of the date presented.

[7] During the three months ended March 31, 2024, this loan incurred interest at daily simple secured overnight financing rate ("SOFR") plus a spread of 1.65% and a SOFR index adjustment of 0.10% (the "SOFR Index Adjustment"). As of April 1, 2024, our consolidated leverage ratio was within the second leverage tier, whereby interest began accruing at daily simple SOFR plus a spread of 1.85%, plus the SOFR Index Adjustment.

[8] This loan incurs interest at an all in rate of CORRA (as defined below), plus a CORRA adjustment of approximately 0.30%, plus a spread of 2.20%. The effective interest rate on this loan is 6.42% when factoring the effects of a CORRA Swap which we entered into with the National Bank of Canada for the initial term of the loan. The Dufferin, Oakville II, Burlington II, Iroquois Shore Rd, and Stoney Creek I properties are encumbered by this loan. See Note 7 – Derivative Instruments for additional information.

XML

Debt - Schedule of Summarized Real Estate Secured Debt (Parenthetical) (Detail)				3 Months Ended
		Apr. 01, 2024	Mar. 17, 2021 USD ($) Property	Mar. 31, 2024 USD ($)		Dec. 31, 2023 USD ($)		Sep. 30, 2023 Property
Debt Instrument [Line Items]
Debt Instrument Carrying Amount				$ 1,096,910,833
2032 Private Placement Notes
Debt Instrument [Line Items]
Senior notes maturity date	[1]			Apr. 19, 2032
Debt Instrument Carrying Amount	[1]			$ 150,000,000		$ 150,000,000
Interest rate	[1]			5.28%
Interest Accruing on Notes								5.28%
SOFR | 2024 Credit Facility
Debt Instrument [Line Items]
Spread on Variable Rate				1.65%
SOFR Index Adjustment | 2024 Credit Facility
Debt Instrument [Line Items]
Spread on Variable Rate		1.85%		0.10%
KeyBank SST IV CMBS Loan
Debt Instrument [Line Items]
Number of properties encumbered | Property			7
Senior notes maturity date			Feb. 01, 2030
Debt Instrument Carrying Amount			$ 40,500,000
2027 NBC Loan | CORRA Swap
Debt Instrument [Line Items]
Interest rate				6.42%
2027 NBC Loan | CORRA Adjustment
Debt Instrument [Line Items]
Spread on Variable Rate				2.20%
Debt Instrument Variable Rate				0.30%
Fixed Rate Secured Debt | KeyBank CMBS Loan
Debt Instrument [Line Items]
Number of properties encumbered | Property								29
Senior notes maturity date	[2]			Aug. 01, 2026
Debt Instrument Carrying Amount	[2]			$ 90,593,188		91,041,968
Debt Instrument Variable Rate	[2]			3.89%
Fixed Rate Secured Debt | KeyBank Property Loan
Debt Instrument [Line Items]
Number of properties encumbered | Property								5
Fixed Rate Secured Debt | CMBS Loan
Debt Instrument [Line Items]
Number of properties encumbered | Property								10
Senior notes maturity date	[3]			Feb. 01, 2029
Debt Instrument Carrying Amount				$ 104,000,000	[4]	$ 104,000,000	[3]
Debt Instrument Variable Rate	[3]			5.00%

[1] As of March 31, 2023, a Total Leverage Ratio Event (as defined below) had occurred, and the interest rate on such Note increased to 5.28% prospectively. For additional information regarding this loan, see 2032 Private Placement Notes below.

[2] This fixed rate loan encumbers 29 properties (Whittier, La Verne, Santa Ana, Upland, La Habra, Monterey Park, Huntington Beach, Chico, Lancaster I, Riverside, Fairfield, Lompoc, Santa Rosa, Federal Heights, Aurora, Littleton, Bloomingdale, Crestwood, Forestville, Warren I, Sterling Heights, Troy, Warren II, Beverly, Everett, Foley, Tampa, Boynton Beach, and Lancaster II) with monthly interest only payments until September 2021, at which time both interest and principal payments became due monthly. The separate assets of these encumbered properties are not available to pay our other debts.

[3] This fixed rate, interest only loan encumbers 10 properties (Myrtle Beach I, Myrtle Beach II, Port St. Lucie, Plantation, Sonoma, Las Vegas I, Las Vegas II, Las Vegas III, Ft Pierce, and Nantucket Island). The separate assets of these encumbered properties are not available to pay our other debts.

[4] This fixed rate loan encumbers five properties (Pompano Beach, Lake Worth, Jupiter, Royal Palm Beach, and Delray) with monthly interest only payments until June 2022, at which time both interest and principal payments became due monthly. The separate assets of these encumbered properties are not available to pay our other debts.

XML

Debt - Additional Information (Detail)								3 Months Ended
	Apr. 01, 2024	Mar. 12, 2024	Mar. 07, 2024 USD ($)	Feb. 22, 2024 USD ($)	Apr. 19, 2022 USD ($)	Oct. 07, 2021 USD ($)	Mar. 17, 2021 USD ($)	Mar. 31, 2024 USD ($) Property	Mar. 31, 2023	May 25, 2022 USD ($)	Mar. 16, 2021 USD ($)
Debt Instrument [Line Items]
Weighted average interest rate on debt								6.10%
Initial maximum amount available						$ 700,000,000
Aggregate borrowings								$ 1,096,910,833
Number of operating properties | Property								89
2032 Private Placement Notes
Debt Instrument [Line Items]
Interest rate					4.53%
Debt instrument, maturity date					Apr. 19, 2032
Aggregate principal amount of notes issued					$ 75,000,000					$ 75,000,000
Interest Accruing On Notes									5.28%
Prepayment of Notes					100.00%
Debt Instrument Fixed Rate									4.53%
2032 Private Placement Notes | 4.53% Senior Notes[Member]
Debt Instrument [Line Items]
Debt issued					$ 150,000,000
2032 Private Placement Notes | Maximum
Debt Instrument [Line Items]
Ratio of Total Indebtedness					0.07
Leverage Ratio					7.00%
2032 Private Placement Notes | Minimum
Debt Instrument [Line Items]
Ratio of Total Indebtedness					0.01
Leverage Ratio					1.00%
Prepayment of Notes					5.00%
Two Thousand and Twenty Seven NBC Loan [Member] | CORRA Adjustment
Debt Instrument [Line Items]
Debt Instrument Fixed Rate								0.30%
Debt instrument, variable interest rate								2.20%
Two Thousand and Twenty Seven NBC Loan [Member] | CORRA Swap
Debt Instrument [Line Items]
Interest rate								6.42%
Key Bank [Member]
Debt Instrument [Line Items]
Initial maximum amount available											$ 500,000,000
Two Thousand Twenty Seven NBC Loans [Member]
Debt Instrument [Line Items]
Debt Instrument Fixed Rate		6.42%
Term		25 years
Credit Facility Revolver
Debt Instrument [Line Items]
Additional amount available under credit facility								$ 58,400,000
Line of credit facility, current borrowing capacity						450,000,000
Increased the principal borrowing amount						$ 200,000,000
Credit Facility Revolver | Key Bank [Member]
Debt Instrument [Line Items]
Outstanding balance on credit facility							$ 250,000,000
Maturity date							Mar. 17, 2024
Line of credit facility, term of extension options							1 year
Credit Facility Term Loan
Debt Instrument [Line Items]
Line of credit facility, annual unused fee								230.00%
Credit Facility Term Loan | Key Bank [Member]
Debt Instrument [Line Items]
Outstanding balance on credit facility							$ 250,000,000
Maturity date							Mar. 17, 2026
2024 Credit Facility
Debt Instrument [Line Items]
Line of credit facility, current borrowing capacity								$ 650,000,000
Amount borrowed under the credit facility								$ 521,000,000
2024 Credit Facility | Maximum | Daily Simple SOFR Loans, Term SOFR Loans and CORRA Loans [Member]
Debt Instrument [Line Items]
Debt instrument, variable interest rate				230.00%
2024 Credit Facility | Maximum | Base Rate Loans [Member]
Debt Instrument [Line Items]
Debt instrument, variable interest rate				130.00%
2024 Credit Facility | Minimum | Daily Simple SOFR Loans, Term SOFR Loans and CORRA Loans [Member]
Debt Instrument [Line Items]
Debt instrument, variable interest rate				165.00%
2024 Credit Facility | Minimum | Base Rate Loans [Member]
Debt Instrument [Line Items]
Debt instrument, variable interest rate				65.00%
2024 Credit Facility | Consolidated Leverage Ratio | Maximum | Daily Simple SOFR Loans, Term SOFR Loans and CORRA Loans [Member]
Debt Instrument [Line Items]
Debt instrument, variable interest rate				225.00%
2024 Credit Facility | Consolidated Leverage Ratio | Maximum | Base Rate Loans [Member]
Debt Instrument [Line Items]
Debt instrument, variable interest rate				125.00%
2024 Credit Facility | Consolidated Leverage Ratio | Minimum | Daily Simple SOFR Loans, Term SOFR Loans and CORRA Loans [Member]
Debt Instrument [Line Items]
Debt instrument, variable interest rate				140.00%
2024 Credit Facility | Consolidated Leverage Ratio | Minimum | Base Rate Loans [Member]
Debt Instrument [Line Items]
Debt instrument, variable interest rate				40.00%
2024 Credit Facility | Key Bank [Member]
Debt Instrument [Line Items]
Initial maximum amount available				$ 650,000,000
Additional amount available under credit facility				850,000,000
Repayment of borrowings				$ 576,000,000
Maturity date				Feb. 22, 2027
Debt instrument, fee percentage				0.20%
Line of credit facility, term of extension options				1 year
2024 Credit Facility | Key Bank [Member] | Maximum
Debt Instrument [Line Items]
Initial maximum amount available				$ 1,500,000,000
Line of credit facility, annual unused fee				25.00%
2024 Credit Facility | Key Bank [Member] | Maximum | Letter of Credit
Debt Instrument [Line Items]
Credit facility sublimits				$ 25,000,000
2024 Credit Facility | Key Bank [Member] | Maximum | Swingline Loans
Debt Instrument [Line Items]
Credit facility sublimits				$ 25,000,000
2024 Credit Facility | Key Bank [Member] | Minimum
Debt Instrument [Line Items]
Line of credit facility, annual unused fee				15.00%
Non-recourse debt				$ 75,000,000
2024 Credit Facility | Key Bank [Member] | Security Interest Termination Event | Maximum
Debt Instrument [Line Items]
Capitalization rate leverage ratio				60.00%
Secured debt ratio				40.00%
2024 Credit Facility | Key Bank [Member] | Security Interest Termination Event | Minimum
Debt Instrument [Line Items]
fixed charge coverage ratio				1.5
Unsecured interest coverage ratio				2
Credit facility cross default provision amount				$ 25,000,000
2024 Credit Facility | Two Thousand Twenty Seven NBC Loans [Member]
Debt Instrument [Line Items]
Aggregate borrowings			$ 75,000,000
Net proceeds from loan			$ 55,100,000
Credit facility agreement
Debt Instrument [Line Items]
Line of credit facility, annual unused fee								60.00%
Initial Advances under Two Thousand Twenty Four Credit Facility [Member] | Daily Simple SOFR Loans, Term SOFR Loans and CORRA Loans [Member]
Debt Instrument [Line Items]
Debt instrument, variable interest rate				175.00%
2024 Credit Facility | SOFR
Debt Instrument [Line Items]
Debt instrument, variable interest rate								1.65%
2024 Credit Facility | SOFR Index Adjustment
Debt Instrument [Line Items]
Debt instrument, variable interest rate	1.85%							0.10%

XML

Debt - Future Principal Payment Requirements on Outstanding Debt (Detail) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Long-Term Debt, Fiscal Year Maturity [Abstract]
2024	$ 2,787,760
2025	3,969,391
2026	94,321,605
2027	623,059,664
2028	78,272,413
2029 and thereafter	294,500,000
Total payments	1,096,910,833
Discount on secured debt	(76,991)
Debt issuance costs, net	(3,633,319)
Total debt	$ 1,093,200,523	$ 1,087,401,334

XML

Preferred Equity - Additional Information (Details) - Series A Convertible Preferred Stock Purchase Agreement		3 Months Ended
	Oct. 29, 2019 USD ($) d $ / shares	Mar. 31, 2024 USD ($) shares	Dec. 31, 2023 USD ($) shares	Oct. 26, 2020 USD ($)
Class Of Stock [Line Items]
Maximum purchase commitment amount	$ 200,000,000
Initial closing amount	150,000,000	$ 150,000,000	$ 150,000,000
Second and final closing amount		$ 50,000,000	$ 50,000,000	$ 50,000,000
Issuance costs	$ 3,600,000
Preferred stock, dividend rate, percentage	6.25%
Preferred stock payment description		Upon any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of Series A Convertible Preferred Stock will be entitled to receive a payment equal to the greater of (i) aggregate purchase price of all outstanding Preferred Shares, plus any accrued and unpaid dividends (the “Liquidation Amount”) and (ii) the amount that would have been payable had the Preferred Shares been converted into common stock pursuant to the terms of the Purchase Agreement immediately prior to such liquidation.
Preferred stock redemption description		Subject to certain additional redemption rights, as described herein, we have the right to redeem the Series A Convertible Preferred Stock for cash at any time following the fifth anniversary of the Initial Closing. The amount of such redemption will be equal to the Liquidation Amount. Upon the listing of our common stock on a national securities exchange (the “Listing”), we have the right to redeem any or all outstanding Series A Convertible Preferred Stock at an amount equal to the greater of (i) the amount that would have been payable had such Preferred Shares been converted into common stock pursuant to the terms of the Purchase Agreement immediately prior to the Listing, and then all of such Preferred Shares were sold in the Listing, or (ii) the Liquidation Amount, plus a premium amount (the “Premium Amount”) of 10%, 8%, 6%, 4%, or 2% if redeemed prior to the first, second, third, fourth, or fifth anniversary dates of issuance, respectively, or 0% if redeemed thereafter, as set forth in the Articles Supplementary. Upon a change of control event, we have the right to redeem any or all outstanding Series A Convertible Preferred Stock at an amount equal to the greater of (i) the amount that would have been payable had the Preferred Shares been converted into common stock pursuant to the terms of the Purchase Agreement immediately prior to such change of control or (ii) the Liquidation Amount, plus the Premium Amount, as set forth in the Articles Supplementary. In addition, subject to certain cure provisions, if we fail to maintain our status as a real estate investment trust, the holders of Series A Convertible Preferred Stock have the right to require us to repurchase the Series A Convertible Preferred Stock at an amount equal to the Liquidation Amount with no Premium Amount.
Preferred stock redemption premium	$ 0
Preferred stock, conversion basis		Subject to our redemption rights in the event of a listing or change of control described above, upon the earlier to occur of (i) the second anniversary of the Initial Closing or (ii) 180 days after a Listing, the holders of Series A Convertible Preferred Stock have the right to convert any or all of the Series A Convertible Preferred Stock held by such holders into common stock at a rate per share equal to the quotient obtained by dividing the Liquidation Amount by the conversion price. The conversion price is $10.66, as may be adjusted in connection with stock splits, stock dividends and other similar transactions.
Conversion price per share | $ / shares	$ 10.66
Number of days after lifting of preferred stock to common stock | d	180
Preferred stock, voting rights condition		This foregoing limited voting right shall cease when all past dividend periods have been paid in full. In addition, the affirmative vote of the holders of a majority of the outstanding shares of Series A Convertible Preferred Stock is required in certain customary circumstances, as well as other circumstances, such as (i) our real estate portfolio exceeding a leverage ratio of 60% loan-to-value, (ii) entering into certain transactions with our Executive Chairman as of the Commitment Date, or his affiliates, (iii) effecting a merger (or similar) transaction with an entity whose assets are not at least 80% self storage related and (iv) entering into any line of business other than self storage and ancillary businesses, unless such ancillary business represents revenues of less than 10% of our revenues for our last fiscal year.
Required leverage ratio of our real estate portfolio	60.00%
Required percentage of self storage related assets of merger entity	80.00%
Required ancillary business revenue to total revenue	10.00%
Preferred stock, investors rights agreement		In connection with the issuance of the Series A Convertible Preferred Stock, we and the Investor also entered into an investors’ rights agreement (the “Investors’ Rights Agreement”) which provides the Investor with certain customary protections, including demand registration rights and “piggyback” registration rights with respect to our common stock issued to the Investor upon conversion of the Preferred Shares.
Preferred shares outstanding | shares		200,000	200,000
Aggregate liquidation preference		$ 203,100,000	$ 203,200,000
Amount of accumulated and unpaid distributions		$ 3,100,000	$ 3,200,000
Fifth To Tenth Anniversary
Class Of Stock [Line Items]
Dividend rate percentage of increase on preferred stock	0.75%
Tenth Anniversary | Maximum
Class Of Stock [Line Items]
Preferred stock, dividend rate, percentage	9.00%
After Tenth Anniversary
Class Of Stock [Line Items]
Dividend rate percentage of increase on preferred stock	0.75%
First Anniversary
Class Of Stock [Line Items]
Premium amount over liquidation amount on redemption, percent	10.00%
Second Anniversary
Class Of Stock [Line Items]
Premium amount over liquidation amount on redemption, percent	8.00%
Third Anniversary
Class Of Stock [Line Items]
Premium amount over liquidation amount on redemption, percent	6.00%
Fourth Anniversary
Class Of Stock [Line Items]
Premium amount over liquidation amount on redemption, percent	4.00%
Fifth Anniversary
Class Of Stock [Line Items]
Premium amount over liquidation amount on redemption, percent	2.00%
After Fifth Anniversary
Class Of Stock [Line Items]
Premium amount over liquidation amount on redemption, percent	0.00%

XML

Derivative Instruments - Summary of Derivative Financial Instruments (Detail)								3 Months Ended	12 Months Ended
		Mar. 07, 2024	Jan. 16, 2024 $ / Unit	Jul. 05, 2023 CAD ($)	Apr. 12, 2023 CAD ($)	Oct. 12, 2022	Apr. 12, 2021 CAD ($)	Mar. 31, 2024 CAD ($) $ / Unit	Dec. 31, 2023 CAD ($) $ / Unit	Apr. 12, 2024 CAD ($) $ / Unit	Mar. 31, 2024 USD ($) $ / Unit	Dec. 31, 2023 USD ($) $ / Unit	Nov. 16, 2023 USD ($)	Oct. 12, 2023 CAD ($)
Derivative [Line Items]
Derivative, notional amount										$ 136,476,000
Foreign Currency Forward, Strike | $ / Unit			1.3781							1.3648
Interest rate, maturity date		Mar. 07, 2024
Foreign Currency Forward, Maturity Date								Mar. 07, 2024
Interest Rate Cap | SOFR Cap June 28, 2024
Derivative [Line Items]
Derivative, notional amount											$ 125,000,000	$ 125,000,000
Interest Rate Swaps, Strike								2.00%	2.00%		2.00%	2.00%
Interest Rate Swaps, Effective Date or Date Assumed								Jun. 01, 2022	Jun. 01, 2022
Interest rate, maturity date								Jun. 28, 2024	Jun. 28, 2024
Interest Rate Cap | SOFR Cap December 1, 2022
Derivative [Line Items]
Derivative, notional amount											$ 100,000,000	$ 100,000,000
Interest Rate Swaps, Strike								4.75%	4.75%		4.75%	4.75%
Interest Rate Swaps, Effective Date or Date Assumed								Dec. 01, 2022	Dec. 01, 2022
Interest rate, maturity date								Dec. 02, 2024	Dec. 02, 2024
Interest Rate Cap | SOFR Cap December 1, 2025
Derivative [Line Items]
Derivative, notional amount											$ 100,000,000	$ 100,000,000
Interest Rate Swaps, Strike								4.75%	4.75%		4.75%	4.75%
Interest Rate Swaps, Effective Date or Date Assumed								Dec. 01, 2022	Dec. 01, 2022
Interest rate, maturity date								Dec. 01, 2025	Dec. 01, 2025
Interest Rate Cap | SOFR Cap December 2, 2024
Derivative [Line Items]
Derivative, notional amount											$ 100,000,000	$ 100,000,000
Interest Rate Swaps, Strike								4.75%	4.75%		4.75%	4.75%
Interest Rate Swaps, Effective Date or Date Assumed								Dec. 01, 2022	Dec. 01, 2022
Interest rate, maturity date								Dec. 02, 2024	Dec. 02, 2024
Interest Rate Cap | CORRA Swap March 12, 2024
Derivative [Line Items]
Derivative, notional amount	[1]										$ 75,000,000
Interest Rate Swaps, Strike	[1]							3.93%			3.93%
Interest Rate Swaps, Effective Date or Date Assumed	[1]							Mar. 12, 2024
Interest rate, maturity date	[1]							Mar. 07, 2027
Foreign Currency Forward
Derivative [Line Items]
Derivative, notional amount													$ 30,000,000
Foreign Currency Forward, Notional Amount				$ 132,400,000	$ 134,400,000		$ 125,900,000							$ 137,700,000
Foreign Currency Forward, Maturity Date			Feb. 15, 2024	Apr. 12, 2024	Jul. 06, 2023	Oct. 12, 2023	Apr. 12, 2023
Foreign Currency Forward | Denominated in CAD April 12, 2021
Derivative [Line Items]
Foreign Currency Forward, Notional Amount	[2]								$ 132,350,000
Foreign Currency Forward | Denominated in CAD October 12, 2022
Derivative [Line Items]
Foreign Currency Forward, Notional Amount	[2],[3]								$ 30,000,000
Foreign Currency Forward, Strike | $ / Unit	[2],[3]								1.3782			1.3782
Foreign Currency Forward, Effective Date or Date Assumed	[2],[3]								Nov. 16, 2023
Foreign Currency Forward, Maturity Date	[2],[3]								Jan. 16, 2024
Foreign Currency Forward | Denominated in CAD April 12, 2023
Derivative [Line Items]
Foreign Currency Forward, Notional Amount	[1],[4]							$ 132,350,000
Foreign Currency Forward, Strike | $ / Unit	[1],[4]							1.3273			1.3273
Foreign Currency Forward, Effective Date or Date Assumed	[1],[4]							Jul. 05, 2023
Foreign Currency Forward, Maturity Date	[1],[4]							Apr. 12, 2024
Foreign Currency Forward | Denominated In Cad Effective April Twelve Two Thousand Twenty Four [Member]
Derivative [Line Items]
Foreign Currency Forward, Strike | $ / Unit	[2]								1.3273			1.3273
Foreign Currency Forward, Effective Date or Date Assumed	[2]								Jul. 05, 2023
Foreign Currency Forward, Maturity Date	[2]								Apr. 12, 2024

[1] Notional amounts shown are denominated in CAD.

[2] Notional amount shown is denominated in CAD

[3] On January 16, 2024 we rolled this hedge without any cash settlement, effectively extending the maturity date to February 15, 2024 at a strike rate of 1.3781. Additionally, on February 16, 2024 we further rolled this hedge without any cash settlement at a strike rate of 1.3781. This hedge ultimately matured on March 7, 2024 whereby we owed and paid approximately $0.5 million at settlement.

[4] On April 12, 2024, we settled this hedge and we received approximately $3.5 million. We simultaneously entered into a new foreign currency hedge with a notional amount of $136,476,000 CAD at a strike rate of 1.3648 which matures on April 11, 2025.

XML

Derivative Instruments - Summary of Derivative Financial Instruments (Parenthetical) (Detail) $ in Millions		3 Months Ended
	Mar. 07, 2024 USD ($)	Mar. 31, 2024	Apr. 12, 2024 CAD ($) $ / Unit	Apr. 12, 2024 USD ($) $ / Unit	Jan. 16, 2024 $ / Unit	Nov. 16, 2023 USD ($)	Oct. 12, 2023 CAD ($)	Jul. 05, 2023 CAD ($)	Apr. 12, 2023 CAD ($)	Apr. 12, 2021 CAD ($)
Derivative [Line Items]
Foreign Currency Forward, Strike | $ / Unit			1.3648	1.3648	1.3781
Maturity date	Mar. 07, 2024
Settlement amount of hedge	$ 0.5
Derivative, Notional Amount			$ 136,476,000
Hedge Cash Settlement On January Sixteen Two Thousand Twenty Four [Member]
Derivative [Line Items]
Foreign Currency Forward, Strike | $ / Unit					1.3781
Hedge Cash Settlement On April Twelve Two Thousand Twenty Four
Derivative [Line Items]
Foreign Currency Forward, Strike | $ / Unit			1.3648	1.3648
Maturity date		Apr. 11, 2025
Settlement amount of hedge				$ 3.5
Derivative, Notional Amount			$ 136,476,000
Foreign Currency Forward
Derivative [Line Items]
Derivative, Notional Amount						$ 30.0
Foreign Currency Forward, Notional Amount							$ 137,700,000	$ 132,400,000	$ 134,400,000	$ 125,900,000

XML

Derivative Instruments - Additional Information (Detail) $ in Millions								3 Months Ended
	Apr. 12, 2024 USD ($)	Mar. 07, 2024 USD ($)	Jan. 16, 2024 $ / Unit	Jul. 05, 2023 USD ($)	Apr. 12, 2023 USD ($)	Oct. 12, 2022	Apr. 12, 2021 CAD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Apr. 12, 2024 CAD ($) $ / Unit	Mar. 31, 2024 CAD ($)	Feb. 16, 2024 $ / Unit	Nov. 16, 2023 USD ($) $ / Unit	Nov. 09, 2023 CAD ($) $ / Unit	Oct. 12, 2023 CAD ($)	Oct. 11, 2023 CAD ($) $ / Unit	Jul. 05, 2023 CAD ($)	Apr. 12, 2023 CAD ($)
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, notional amount										$ 136,476,000
Derivative, Foreign Currency Option Strike Price | $ / Unit			1.3781							1.3648
Interest rate, maturity date		Mar. 07, 2024
Settlement amount of hedge		$ 0.5
Foreign currency forward contract gains (loss)	$ 3.5			$ 1.2	$ 6.4
Foreign Currency Forward, Maturity Date								Mar. 07, 2024
Gain (loss) on foreign currency hedge contract, ineffective portion								$ 1.4	$ 0.4
Cash flow hedges reclassified to reduce interest expense								$ 1.0
Hedge Cash Settlement On February Sixteen Two Thousand Twenty Four
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, Foreign Currency Option Strike Price | $ / Unit												1.3781
Hedge Cash Settlement On October Eleven Two Thousand Twenty Three
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, notional amount														$ 137,669,000		$ 137,664,000
Derivative, Foreign Currency Option Strike Price | $ / Unit														1.3767		1.3766
Hedge Cash Settlement On November Sixteen Two Thousand Twenty Three
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, Foreign Currency Option Strike Price | $ / Unit													1.3782
2027 NBC Loan
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, notional amount											$ 75,000,000
Interest rate, maturity date								Mar. 07, 2027
Interest Rate Swaps, Strike								3.926%			3.926%
Foreign Currency Forward
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, notional amount													$ 30.0
Foreign Currency Forward, Notional Amount							$ 125,900,000								$ 137,700,000		$ 132,400,000	$ 134,400,000
Foreign Currency Forward, Maturity Date			Feb. 15, 2024	Apr. 12, 2024	Jul. 06, 2023	Oct. 12, 2023	Apr. 12, 2023

XML

Derivative Instruments - Schedule of Fair Value of Derivative Financial Instruments and Classification In Consolidated Balance Sheets (Detail) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Interest Rate Swap | Other assets
Derivatives Fair Value [Line Items]
Derivative fair value, assets	$ 2,592,468	$ 3,485,281
Interest Rate Swap | Accounts payable and accrued liabilities
Derivatives Fair Value [Line Items]
Derivative fair value, liability	101,787	0
Foreign Currency Hedges | Other assets
Derivatives Fair Value [Line Items]
Derivative fair value, assets	2,247,494	0
Foreign Currency Hedges | Accounts payable and accrued liabilities
Derivatives Fair Value [Line Items]
Derivative fair value, liability	$ 0	$ 985,412

XML

Derivative Instruments - Summary of Effect of Derivative Financial Instruments Designated for Hedge Accounting, on Consolidated Statements of Operations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Gain (Loss) Recognized in OCI	$ 1,763,793	$ (617,934)
Gain (Loss) Reclassified from OCI	914,552	967,023
Interest Rate Swap
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Gain (Loss) Recognized in OCI	(60,369)
Gain (Loss) Reclassified from OCI	41,418	921,477
Interest Rate Cap
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Gain (Loss) Recognized in OCI	468,248	(526,318)
Gain (Loss) Reclassified from OCI	873,134	45,546
Foreign Exchange Forwards
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Gain (Loss) Recognized in OCI	$ 1,355,914	$ (91,616)

XML

Income Taxes - Summary of the Company's Income tax Expense (Benefit) (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Current Federal income tax expense (benefit)	$ 0	$ 51,557
Current State income tax expense (benefit)	8,861	9,277
Current Canadian income tax expense (benefit)	115,560	96,099
Current Income Tax Expense (Benefit), Total	124,421	156,933
Deferred Federal income tax expense (benefit)	68,057	(2,619)
Deferred State income tax expense (benefit)	2,828	(399)
Deferred Canadian income tax expense (benefit)	146,997	123,305
Deferred Income Tax Expense (Benefit), Total	217,882	120,287
Federal Income Tax Expense (benefit)	68,057	48,938
State income tax expense (benefit)	11,689	8,878
Canadian income tax expense (benefit)	262,557	219,404
Income Tax Expense (Benefit), Total	$ 342,303	$ 277,220

XML

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Deferred tax assets:
Intangible contract assets	$ (15,092)	$ (18,111)
Total deferred tax liability	(9,920,091)	(9,905,161)
Deferred tax assets:
Other	1,527,465	1,267,292
Total deferred tax assets	9,245,528	8,828,665
Valuation allowance	(892,589)	(667,514)
Net deferred tax liabilities	(1,567,152)	(1,744,010)
Canadian Entities [Member]
Deferred tax assets:
Canadian non-capital losses	7,718,063	7,561,373
Net deferred tax liabilities	$ (9,904,999)	$ (9,887,050)

XML

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Income Tax [Line Items]
Valuation allowance	$ 892,589	$ 667,514
Canada Revenue Agency Member
Income Tax [Line Items]
Non capital loss carryforwards	23,900,000	24,900,000
Valuation allowance	$ 900,000	$ 700,000
Earliest Tax Year [Member]
Income Tax [Line Items]
Non-Capital Losses Expiration Year	2032	2043

XML

Segment Disclosures - Additional Information (Detail)		3 Months Ended
		Mar. 31, 2024 USD ($) Segment	Sep. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of reportable business segments | Segment		2
Asset	[1]	$ 1,886,396,623			$ 1,895,640,725
Income (loss) from operations		16,000,337		$ 16,900,875
Self Storage
Segment Reporting Information [Line Items]
Asset	[2]	1,785,797,427			1,798,510,325
Income (loss) from operations			$ 21,823,202	21,946,267
Self Storage | Canada
Segment Reporting Information [Line Items]
Asset		169,000,000			174,000,000
Revenues		5,400,000		5,300,000
Corporate and Other
Segment Reporting Information [Line Items]
Asset		57,993,541			55,369,141
Corporate and Other | Canada | JV Properties
Segment Reporting Information [Line Items]
Asset		36,200,000			$ 35,800,000
Income (loss) from operations		$ 300,000		$ 400,000

[1] Other than our investments in and advances to Managed REITs and investments in JV properties, substantially all of our investments in real estate facilities and intangible assets as of March 31, 2024 and December 31, 2023, respectively, were associated with our self storage platform.

[2] Included in the assets of the Self Storage segment as of March 31, 2024 and December 31, 2023 was approximately $52.2 million of goodwill. Additionally, as of March 31, 2024 and December 31, 2023, there were no accumulated impairment charges to goodwill within the Self Storage segment.

XML

Segment Disclosures - Summary of Reportable Segments (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023
Revenues:
Total revenues	$ 57,042,057		$ 57,135,265
Operating expenses:
General and administrative	7,426,164		6,536,626
Depreciation	13,584,398		13,272,271
Intangible amortization expense	73,065		1,919,705
Acquisition expenses	70,876		31,190
Total operating expenses	41,041,720		40,234,390
Income from operations	16,000,337		16,900,875
Other income (expense):
Other, net	507,515		750,978
Interest expense	(16,553,242)		(14,703,897)
Income tax expense	(342,303)		(277,220)
Loss on debt extinguishment	(471,166)		0
Net income (loss)	(1,639,513)		2,032,600
Self Storage Rental Revenue
Revenues:
Total revenues	50,469,142		51,276,898
Ancillary Operating Revenue
Revenues:
Total revenues	2,192,633		2,190,622
Managed REIT Platform Revenue
Revenues:
Total revenues	2,734,207		2,276,535
Reimbursable Costs from Managed REITs
Revenues:
Total revenues	1,646,075		1,391,210
Operating expenses:
Operating expenses	1,646,075		1,391,210
Property Operating Expenses
Operating expenses:
Operating expenses	17,389,955		16,533,452
Managed REIT Platform Expenses
Operating expenses:
Operating expenses	851,187		549,936
Managed REITS
Other income (expense):
Equity in earnings (losses) from investments	(451,562)		(233,025)
JV Properties
Other income (expense):
Equity in earnings (losses) from investments	(329,092)		(405,111)
Self Storage
Revenues:
Total revenues	52,661,775		53,467,520
Operating expenses:
Depreciation	13,353,607		13,085,836
Intangible amortization expense	24,135		1,870,775
Acquisition expenses	70,876		31,190
Total operating expenses	30,838,573		31,521,253
Income from operations		$ 21,823,202	21,946,267
Other income (expense):
Other, net	340,777		(415,297)
Interest expense	(16,511,848)		(14,661,959)
Income tax expense	(268,190)		(144,596)
Loss on debt extinguishment	(471,166)
Net income (loss)	4,912,775		6,724,415
Self Storage | Self Storage Rental Revenue
Revenues:
Total revenues	50,469,142		51,276,898
Self Storage | Ancillary Operating Revenue
Revenues:
Total revenues	2,192,633		2,190,622
Self Storage | Property Operating Expenses
Operating expenses:
Operating expenses	17,389,955		16,533,452
Managed REIT Platform
Revenues:
Total revenues	4,380,282		3,667,745
Operating expenses:
Intangible amortization expense	48,930		48,930
Total operating expenses	2,546,192		1,990,076
Income from operations		$ 1,834,090	1,677,669
Other income (expense):
Other, net	450,376		1,142,964
Income tax expense	(64,207)
Net income (loss)	1,768,697		2,587,608
Managed REIT Platform | Managed REIT Platform Revenue
Revenues:
Total revenues	2,734,207		2,276,535
Managed REIT Platform | Reimbursable Costs from Managed REITs
Revenues:
Total revenues	1,646,075		1,391,210
Operating expenses:
Operating expenses	1,646,075		1,391,210
Managed REIT Platform | Managed REIT Platform Expenses
Operating expenses:
Operating expenses	851,187		549,936
Managed REIT Platform | Managed REITS
Other income (expense):
Equity in earnings (losses) from investments	(451,562)		(233,025)
Corporate and other
Operating expenses:
General and administrative	7,426,164		6,536,626
Depreciation	230,791		186,435
Total operating expenses	7,656,955		6,723,061
Income from operations	(7,656,955)		(6,723,061)
Other income (expense):
Other, net	(283,638)		23,311
Interest expense	(41,394)		(41,938)
Income tax expense	(9,906)		(132,624)
Net income (loss)	(8,320,985)		(7,279,423)
Corporate and other | JV Properties
Other income (expense):
Equity in earnings (losses) from investments	$ (329,092)		$ (405,111)

XML

Segment Disclosures - Summary of Total Assets by Segment (Detail) - USD ($)		Mar. 31, 2024	Dec. 31, 2023
Segment Reporting Asset Reconciling Item [Line Items]
Total assets	[1]	$ 1,886,396,623	$ 1,895,640,725
Self Storage
Segment Reporting Asset Reconciling Item [Line Items]
Total assets	[2]	1,785,797,427	1,798,510,325
Managed REIT Platform
Segment Reporting Asset Reconciling Item [Line Items]
Total assets	[3]	42,605,655	41,761,259
Corporate and Other
Segment Reporting Asset Reconciling Item [Line Items]
Total assets		$ 57,993,541	$ 55,369,141

[1] Other than our investments in and advances to Managed REITs and investments in JV properties, substantially all of our investments in real estate facilities and intangible assets as of March 31, 2024 and December 31, 2023, respectively, were associated with our self storage platform.

[2] Included in the assets of the Self Storage segment as of March 31, 2024 and December 31, 2023 was approximately $52.2 million of goodwill. Additionally, as of March 31, 2024 and December 31, 2023, there were no accumulated impairment charges to goodwill within the Self Storage segment.

[3] Included in the assets of the Managed REIT Platform segment as of March 31, 2024 and December 31, 2023 was approximately $1.4 million of goodwill. Such goodwill is net of accumulated impairment charges in the Managed REIT Platform segment of approximately $24.7 million, which relates to the impairment charge recorded during the quarter ended March 31, 2020.

XML

Segment Disclosures - Summary of Total Assets by Segment (Parenthetical) (Detail) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2020
Segment Reporting Asset Reconciling Item [Line Items]
Goodwill	$ 53,643,331	$ 53,643,331
Self Storage
Segment Reporting Asset Reconciling Item [Line Items]
Goodwill	52,200,000	52,200,000
Accumulated impairment charges to goodwill	0	0
Managed REIT Platform
Segment Reporting Asset Reconciling Item [Line Items]
Goodwill	$ 1,400,000	$ 1,400,000
Accumulated impairment charges to goodwill			$ 24,700,000

XML

Related Party Transactions - Additional Information (Detail)											3 Months Ended		12 Months Ended
	May 02, 2024 USD ($)	Dec. 15, 2023 USD ($)	Nov. 01, 2023 USD ($) $ / shares	Jun. 13, 2023 USD ($)	May 02, 2023 USD ($)	Jan. 30, 2023 USD ($) shares	Dec. 20, 2022 USD ($)	Aug. 09, 2022 USD ($)	Jun. 01, 2022 USD ($)	Dec. 30, 2021 USD ($) StorageFacility	Mar. 31, 2024 USD ($) StorageFacility shares	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jan. 31, 2023 USD ($)	Aug. 29, 2022 USD ($)	Oct. 07, 2021 USD ($)	Mar. 10, 2021 USD ($)
Related Party Transaction [Line Items]
Percentage of investment fee due upon closing						1.00%
Upfront sales commission			3.00%
Upfront dealer manager			3.00%
Organization and offering expense			1.00%
Outstanding principal, plus accrued interest											$ 0	$ 12,016,875
Number of self storage facilities | StorageFacility										2	154
Principal borrowing amount																	$ 700,000,000
Other Income
Related Party Transaction [Line Items]
Dividend distribution received											$ 85,000	84,000
SST VI Advisory Agreement
Related Party Transaction [Line Items]
Rate of acquisition fees of purchase price of contract											1.00%
Monthly asset management fee											0.0625%
Reimbursable costs													$ 39,000
Monthly asset management fee one twelfth of less than one percentage of average invested assets											one-twelfth of 0.75%
Strategic Storage Growth Trust I I I Advisory Agreement
Related Party Transaction [Line Items]
Rate of acquisition fees of purchase price of contract											1.00%
Monthly asset management fee											0.0625%
Monthly asset management fee one twelfth of less than one percentage of average invested assets											one-twelfth of 0.75%
Strategic Storage Growth Trust I I I Advisory Agreement | Disposition Fee
Related Party Transaction [Line Items]
Rate of disposition fee of contract sales price											1.50%
Strategic Storage Growth Trust I I I Advisory Agreement | Disposition Fee | Pacific Oak Holding Group
Related Party Transaction [Line Items]
Rate of disposition fee of contract sales price											10.00%
Administrative Services Agreement
Related Party Transaction [Line Items]
Receivables due from related parties											$ 18,000
Payables to related parties											11,000
SST VI OP
Related Party Transaction [Line Items]
Purchase units of limited partnership interest | shares						600,000
Purchase commitment amount						$ 15,000,000
Description of preferred investor distributions						SmartStop, through its subsidiary, received distributions, payable monthly in arrears, at a rate of 7.0% per annum from the date of issuance until the second anniversary of the date of issuance, 8.0% per annum commencing thereafter until the third anniversary of the date of issuance, 9.0% per annum commencing thereafter until the fourth anniversary of the date of issuance, and 10% per annum thereafter, payable monthly.
SST VI OP | Up to Second Anniversary
Related Party Transaction [Line Items]
Rate of distributions payable monthly in arrears						7.00%
SST VI OP | Up to Third Anniversary
Related Party Transaction [Line Items]
Rate of distributions payable monthly in arrears						8.00%
SST VI OP | Up to Fourth Anniversary
Related Party Transaction [Line Items]
Rate of distributions payable monthly in arrears						9.00%
SST VI OP | Investment Thereafter
Related Party Transaction [Line Items]
Rate of distributions payable monthly in arrears						10.00%
SST VI OP | Other Income
Related Party Transaction [Line Items]
Loss related to equity interest											300,000	200,000
Property Management Agreement
Related Party Transaction [Line Items]
Our former external property management fee											$ 3,000
Percentage of fee of former external property managers											6.00%
Construction management fee											5.00%
Cost of construction or capital improvement work											$ 10,000
One time fee for former external property managers											3,750
Write-off of carrying value related to intangible asset									$ 600,000
Property Management Agreement | Other Income
Related Party Transaction [Line Items]
Change in deferred tax liability														$ 200,000
SmartStop OP
Related Party Transaction [Line Items]
Investment																		$ 5,000,000
Investment of preferred investor																$ 5,000,000
SSGT III OP
Related Party Transaction [Line Items]
Outstanding amount											1,000,000		4,000,000
SSGT III OP | Other Income
Related Party Transaction [Line Items]
Loss related to equity interest											200,000	200,000
Dividend distribution received											68,000	$ 54,000
SST VI
Related Party Transaction [Line Items]
Payables incurred to related parties											700,000
Payables to related parties											$ 200,000
Purchase units of limited partnership interest | shares											810,000
Reimbursement of stock dividend		$ 6,600,000									$ 7,500,000
Offering price | $ / shares			$ 9.3
Public offering expiry date			Mar. 17, 2024
Variable Entity Maximum Offering			$ 1,000,000,000
Interest rate			7.00%
Maximum commitment			$ 70,000,000
Outstanding principal, plus accrued interest					$ 51,700,000
Debt instrument, description of variable rate basis				SOFR plus 3.0%
Debt instrument, description of variable rate basis, extended				SOFR plus 4.0%
Principal borrowing amount				$ 15,000,000
Commitment fee percentage				1.00%
Principal borrowing amount, currently available				$ 15,000,000
SST VI Mezzanine Loan
Related Party Transaction [Line Items]
Outstanding amount														$ 35,000,000	$ 15,000,000
Commitment fee percentage										1.00%
SST VI Mezzanine Loan | Minimum
Related Party Transaction [Line Items]
Increased the principal borrowing amount							$ 45,000,000
SST VI Mezzanine Loan | Maximum
Related Party Transaction [Line Items]
Debt issued										$ 45,000,000
Increased the principal borrowing amount							$ 55,000,000
SST VI Mezzanine Loan | Pacific Oak Holding Group
Related Party Transaction [Line Items]
Debt instrument, description of variable rate basis							SOFR plus 3.0%.			LIBOR plus 3.0%.
SSGT III Mezzanine Loan
Related Party Transaction [Line Items]
Debt issued								$ 50,000,000
Line of credit facility, current borrowing capacity								$ 42,000,000
Outstanding principal, plus accrued interest	$ 1,000,000
Debt instrument, description of variable rate basis							SOFR plus 3.0%
Number of operating self storage property | StorageFacility											7
Principal borrowing amount											$ 1,500,000		$ 1,500,000
Commitment fee percentage								1.00%
SSGT III Mezzanine Loan | Minimum
Related Party Transaction [Line Items]
Increased the principal borrowing amount							$ 50,000,000
SSGT III Mezzanine Loan | Maximum
Related Party Transaction [Line Items]
Increased the principal borrowing amount							$ 77,000,000
SSGT III Mezzanine Loan | Upon Achievement Of Certain Financial Conditions
Related Party Transaction [Line Items]
Debt instrument, description of variable rate basis							SOFR plus 4.0%

XML

Related Party Transactions - Additional Information (Details1) - USD ($)						1 Months Ended	3 Months Ended		12 Months Ended
	Apr. 29, 2024	Feb. 01, 2024	Nov. 01, 2023	Oct. 25, 2022	Mar. 01, 2022	Oct. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	May 02, 2023
Managed REIT Platform Expenses
Related Party Transaction [Line Items]
Reimbursements payable to SAM under the Administrative Services Agreement							$ 142,000	$ 65,000
Managed REIT Platform Revenue
Related Party Transaction [Line Items]
Percentage of revenue from tenant protection programs							0.10%
TRS Subsidiary | Managed REIT Platform Revenue
Related Party Transaction [Line Items]
Percentage of revenue from tenant protection programs							99.90%
Pacific Oak Holding Group
Related Party Transaction [Line Items]
Variable interest entity non-voting ownership percentage							10.00%
Managed REIT
Related Party Transaction [Line Items]
Equity method investment, ownership percentage							0.10%
Managed REIT | TRS Subsidiary
Related Party Transaction [Line Items]
Equity method investment, ownership percentage							99.90%
Subsequent Event | Strategic Transfer Agent Services, LLC
Related Party Transaction [Line Items]
Transition Fee	$ 150,000
Related Party | Managed REIT Platform Revenue
Related Party Transaction [Line Items]
Receivables due from related parties							$ 11,400,000		$ 6,500,000
SmartStop Asset Management | Strategic Transfer Agent Services, LLC
Related Party Transaction [Line Items]
Percentage of membership interest							100.00%
SST VI
Related Party Transaction [Line Items]
Public offering extended expiry date		Mar. 17, 2025	Sep. 12, 2025
Offering price			$ 9.3
SST VI | Class A Common stock
Related Party Transaction [Line Items]
Offering price			$ 10
SST VI Advisory Agreement | Pacific Oak Holding Group
Related Party Transaction [Line Items]
Variable interest entity non-voting ownership percentage					10.00%
SST VI Advisory Agreement | Class W
Related Party Transaction [Line Items]
Percentage of offering cost without reimbursement				1.50%		1.00%
Cost incurred in public offering									$ 59,000
SST VI Advisory Agreement | Class Z
Related Party Transaction [Line Items]
Percentage of offering cost without reimbursement							1.50%
Cost incurred in public offering							$ 12,000
Administrative Services Agreement
Related Party Transaction [Line Items]
Receivables due from related parties							18,000
Administrative Services Agreement | Managed REIT Platform Expenses
Related Party Transaction [Line Items]
Administrative service fees							$ 53,000	$ 40,000
SST VI OP | Series A Convertible Preferred Stock [Member]
Related Party Transaction [Line Items]
Preferred stock shares redeemed										600,000
Interest Payable										$ 15,100,000

XML

Related Party Transactions - Summary of Related Party Costs (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Related party costs, Incurred	$ 378,590	$ 1,479,254
Related party costs, Paid	378,590	1,473,005
Due to affiliates	415,980	415,980
Dealer Manager
Related Party Transaction [Line Items]
Due to affiliates	415,980	415,980
Transfer Agent fees
Related Party Transaction [Line Items]
Related party costs, Incurred	378,590	1,479,254
Related party costs, Paid	378,590	1,473,005
Transfer Agent fees | Dealer Manager
Related Party Transaction [Line Items]
Due to affiliates	75,000	75,000
Transfer Agent expenses
Related Party Transaction [Line Items]
Related party costs, Incurred		0
Related party costs, Paid	0	0
Stockholder servicing fee
Related Party Transaction [Line Items]
Related party costs, Incurred		0
Related party costs, Paid	0	0
Other | Dealer Manager
Related Party Transaction [Line Items]
Due to affiliates	$ 340,980	$ 340,980

XML

Related Party Transactions - Summary of Fees and Revenue Related to the Managed REITs (Detail) - USD ($)		3 Months Ended
		Mar. 31, 2024		Mar. 31, 2023
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		$ 2,915,053		$ 2,276,535
Sponsor funding reduction		(180,846)	[1]	0
Total Managed REIT Platform Revenues		2,734,207		2,276,535
Asset Management
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		1,396,894		763,529
Property Management
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		732,774		457,432
Tenant Protection Program
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		442,873		215,633
Acquisition Fees
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		33,647		699,681
Strategic Storage Trust VI Advisory Agreement | Asset Management
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		1,059,898		592,122
Strategic Storage Trust VI Advisory Agreement | Property Management
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		392,517		231,222
Strategic Storage Trust VI Advisory Agreement | Tenant Protection Program
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		272,724		142,596
SSGT III Advisory Agreement | Asset Management
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		336,996		171,407
Strategic Storage Growth Trust I I I Property Management Agreement | Property Management
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		123,208		54,315
JV Properties Property Management Agreement | Property Management
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		217,049		171,895
JV Properties Property Management Agreement | Tenant Protection Program
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		87,904		58,329
Strategic Storage Growth Trust I I I Tenant Protection Program Revenue | Tenant Protection Program
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		82,245		14,708
Strategic Storage Trust VI Acquisition Fees Revenue | Acquisition Fees
Related Party Transaction [Line Items]
Managed REIT Platform Revenues		33,647		542,681
Strategic Storage Growth Trust III Acquisition Fees Revenue | Acquisition Fees
Related Party Transaction [Line Items]
Managed REIT Platform Revenues				157,000
Other Managed REIT Revenue
Related Party Transaction [Line Items]
Managed REIT Platform Revenues	[2]	$ 308,865		$ 140,260

[1] Pursuant to the Sponsor Funding Agreement, SmartStop funds certain costs of SST VI's share sales, and in return receives Series C Units in SST VI's OP. The excess of the funding over the value of the Series C Units received is accounted for as a reduction of Managed REIT Platform revenues from SST VI over the remaining estimated term of the management contracts with SST VI.

[2] Such revenue primarily includes other property management related fees, construction management fees, development fees, and other miscellaneous revenues.

XML

Related Party Transactions - Summary of Related Party Carrying Value of Investments In Advances (Detail) - USD ($)		Mar. 31, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Total investments in and advances		$ 36,070,661	$ 34,390,866
SSGT III OP
Related Party Transaction [Line Items]
Receivables		1,756,522	628,710
Total investments in and advances		6,178,048	8,290,688
SSGT III OP | SSGT III Mezzanine Loan
Related Party Transaction [Line Items]
Debt	[1]	1,000,000	4,000,000
SSGT III OP | SSGT III OP Units and SSGT III SLP
Related Party Transaction [Line Items]
Equity		3,421,526	3,661,978
SST VI
Related Party Transaction [Line Items]
Receivables		9,663,148	5,861,326
Total investments in and advances		29,876,336	26,100,177
SST VI | SST VI Note
Related Party Transaction [Line Items]
Debt		15,000,000	15,000,000
SST VI | SST VI OP Units and SLP [Member]
Related Party Transaction [Line Items]
Equity		1,568,062	1,932,357
SST VI | SST VI Class C Subordinated Units [Member]
Related Party Transaction [Line Items]
Equity		$ 3,645,126	$ 3,306,494

[1] As of March 31, 2024 and December 31, 2023, $1.5 million was available to be drawn on the SSGT III Mezzanine Loan. On May 2, 2024, SSGT III paid down the remaining $1.0 million outstanding on the SSGT III Mezzanine Loan.

XML

Related Party Transactions - Summary of Related Party Carrying Value of Investments In Advances (Parenthetical) (Detail) - USD ($)			3 Months Ended
	May 02, 2024	May 02, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Jun. 13, 2023	Oct. 07, 2021
Related Party Transaction [Line Items]
Principal borrowing amount							$ 700,000,000
Fully repayment of debt			$ 0	$ 12,016,875
SST VI
Related Party Transaction [Line Items]
Principal borrowing amount						$ 15,000,000
Fully repayment of debt		$ 51,700,000
SSGT III Mezzanine Loan
Related Party Transaction [Line Items]
Principal borrowing amount			$ 1,500,000		$ 1,500,000
Fully repayment of debt	$ 1,000,000

XML

Equity Based Compensation - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended		12 Months Ended
		Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense related to non-vested equity awards		$ 12.0		$ 6.8
Unrecognized compensation expense, expected weighted average-recognition period		2 years 8 months 12 days		2 years 2 months 12 days
Property Operating Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation expense		$ 0.1	$ 0.1
General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation expense		$ 1.1	$ 1.1
Time Based Awards | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		3 years
Issuance of equity Award		40,293		43,720
Time Based Awards | LTIPs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of equity Award		298,247		315,915
Time Based Awards | LTIPs | Executive Officers
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		4 years
Issuance of equity Award		274,183
Performance Based Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards vesting date		Mar. 31, 2025
Awards vesting year		Mar. 31, 2026	Mar. 31, 2027
Performance Based Awards | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of established target performance criteria		100.00%
Share based compensation arrangement by share based payment award voting rights		do not have
Issuance of equity Award	[1]			5,752
Performance Based Awards | LTIPs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of established target performance criteria		200.00%
Description of distribution and allocation of profits and losses		Recipients of performance based LTIP Units are issued LTIP Units at 200% of the targeted award and are entitled to receive distributions and allocations of profits and losses with respect to the performance based LTIP Units as of the effective date of each award in an amount equal to 10% of the distributions and allocations available to such LTIP Units, until the Distribution Participation Date (as defined in the Operating Partnership Agreement). The remaining 90% of distributions will accrue and will be payable on the Distribution Participation Date based upon the performance level attained and number of performance based LTIP Units that vest.
Share based compensation arrangement by share based payment award voting rights		one vote per LTIP Unit
Issuance of equity Award		270,096		271,199	[1]
Performance Based Awards | LTIPs | Executive Officers
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		3 years
Percentage of established target performance criteria		200.00%
Issuance of equity Award		270,096
Employee and Director Long-term Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for issuance		8,759,182
Minimum | Time Based Awards | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		1 year
Minimum | Performance Based Awards | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of established target performance criteria		0.00%
Minimum | Performance Based Awards | LTIPs | Executive Officers
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of established target performance criteria		0.00%
Maximum | Time Based Awards | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		4 years
Maximum | Performance Based Awards | LTIPs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of established target performance criteria		200.00%
Maximum | Performance Based Awards | LTIPs | Executive Officers
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of established target performance criteria		200.00%

[1] On March 2, 2023 the Compensation Committee of the board of directors approved the vesting of the 2020 performance grant at 200% of the targeted award. Accordingly, individuals who elected to receive performance based restricted stock were issued and immediately vested additional shares to equal 200% of their targeted award.

XML

Equity Based Compensation - Schedule of Non- vested Restricted Stock Grants (Detail) - $ / shares		3 Months Ended	12 Months Ended
		Mar. 31, 2024	Dec. 31, 2023
Time Based Awards | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested Shares, Beginning balance		85,315	145,850
Unvested Shares, Granted		40,293	43,720
Unvested Shares, Vested		(41,726)	(96,295)
Unvested Shares, Forfeited		(3,155)	(7,960)
Unvested Shares, Ending Balance		80,727	85,315
Unvested Weighted-Average Grant-Date Fair Value, Beginning balance		$ 13.44	$ 11.5
Unvested Weighted-Average Grant-Date Fair Value, Granted		14.3	14.3
Unvested Weighted-Average Grant-Date Fair Value, Vested		12.58	10.86
Unvested Weighted-Average Grant-Date Fair Value, Forfeited		14.27	13.92
Unvested Weighted-Average Grant-Date Fair Value, Ending balance		$ 14.28	$ 13.44
Time Based Awards | LTIPs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested Shares, Beginning balance		380,285	290,641
Unvested Shares, Granted		298,247	315,915
Unvested Shares, Vested			(226,271)
Unvested Shares, Ending Balance		678,532	380,285
Unvested Weighted-Average Grant-Date Fair Value, Beginning balance		$ 12.69	$ 11.16
Unvested Weighted-Average Grant-Date Fair Value, Granted		13.53	13.3
Unvested Weighted-Average Grant-Date Fair Value, Vested			11.58
Unvested Weighted-Average Grant-Date Fair Value, Ending balance		$ 13.06	$ 12.69
Performance Based Awards | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested Shares, Beginning balance		0	5,752
Unvested Shares, Granted	[1]		5,752
Unvested Shares, Vested			(11,504)
Unvested Shares, Ending Balance		0	0
Unvested Weighted-Average Grant-Date Fair Value, Beginning balance		$ 0	$ 9.78
Unvested Weighted-Average Grant-Date Fair Value, Granted	[1]		9.78
Unvested Weighted-Average Grant-Date Fair Value, Vested			9.78
Unvested Weighted-Average Grant-Date Fair Value, Ending balance		$ 0	$ 0
Performance Based Awards | LTIPs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested Shares, Beginning balance		533,015	380,536
Unvested Shares, Granted		270,096	271,199	[1]
Unvested Shares, Vested		(148,387)	(118,720)
Unvested Shares, Ending Balance		654,724	533,015
Unvested Weighted-Average Grant-Date Fair Value, Beginning balance		$ 12.16	$ 10.39
Unvested Weighted-Average Grant-Date Fair Value, Granted		13.55	13.3	[1]
Unvested Weighted-Average Grant-Date Fair Value, Vested		9.3	9.09
Unvested Weighted-Average Grant-Date Fair Value, Ending balance		$ 13.38	$ 12.16

[1] On March 2, 2023 the Compensation Committee of the board of directors approved the vesting of the 2020 performance grant at 200% of the targeted award. Accordingly, individuals who elected to receive performance based restricted stock were issued and immediately vested additional shares to equal 200% of their targeted award.

XML

Equity Based Compensation - Schedule of Non- vested Restricted Stock Grants (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2024
Performance Based Awards | 2020 Performance Grant [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting percentage	200.00%

XML

Commitments and Contingencies - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended		12 Months Ended
	May 31, 2024	Jan. 31, 2024	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Jan. 15, 2024
Commitments And Contingencies [Line Items]
Redemptions of common stock, value			$ 274
Loss contingency other non-cancellable future payments due in year one			$ 2,600,000
Loss contingency other non-cancellable future payment due year one			2024
Insurance claim for damages			$ 8,300,000
Distribution Reinvestment Plan
Commitments And Contingencies [Line Items]
Amendment, suspension or termination period of share			10 days
Share Redemption Program
Commitments And Contingencies [Line Items]
Amendment, suspension or termination period of share			30 days
Net asset value per share and redemption price						$ 15.25
Maximum weighted-average number of shares outstanding percentage			5.00%
Redemptions of common stock (in shares)			600,000		1,500,000
Redemptions of common stock, value	$ 8,400,000	$ 3,900,000	$ 8,600,000		$ 22,900,000
Operating Partnership Redemption Rights
Commitments And Contingencies [Line Items]
Number of shares issuable upon conversion of partnership units			1
Requisite minimum outstanding period for conversion eligibility			1 year
Class A and Class T Common Stock | Distribution Reinvestment Plan
Commitments And Contingencies [Line Items]
Estimated value per share under distribution reinvestment plan			$ 15.25
Class A Common stock | Distribution Reinvestment Plan
Commitments And Contingencies [Line Items]
Shares issued pursuant to distribution reinvestment plan			8,500,000
Class T Common stock | Distribution Reinvestment Plan
Commitments And Contingencies [Line Items]
Shares issued pursuant to distribution reinvestment plan			1,200,000
Redeemable Common Stock
Commitments And Contingencies [Line Items]
Redemptions of common stock, value			$ 8,660,074	$ 4,715,055
Redeemable Common Stock | Share Redemption Program
Commitments And Contingencies [Line Items]
Redemptions of common stock, value					$ 19,000,000

XML

Declaration of Distributions - Additional Information (Detail) - $ / shares	Apr. 19, 2024	Mar. 28, 2024
Class A Common stock
Dividend Declared [Line Items]
Common stock per share outstanding per day declared	$ 0.0508	$ 0.0492
Cash distribution record date end	May 31, 2024	Apr. 30, 2024
Class T Common stock
Dividend Declared [Line Items]
Common stock per share outstanding per day declared	$ 0.0508	$ 0.0492
Cash distribution record date end	May 31, 2024	Apr. 30, 2024

XML

Subsequent Events - Additional Information (Details) $ in Millions	May 13, 2024 USD ($)	May 01, 2024 USD ($)	Apr. 10, 2024 USD ($)	Apr. 12, 2024 CAD ($)
Subsequent Event [Line Items]
Derivative, notional amount				$ 136,476,000
Subsequent Event
Subsequent Event [Line Items]
Purchase price	$ 23.8		$ 10.5
Percentage of property occupied at time of acquisition			86.00%
Notice Period of Adopted Limitation		30 days
Subsequent Event | Interest Rate Cap
Subsequent Event [Line Items]
Derivative, notional amount		$ 8.2

XML

Subsequent Events - Schedule of Notional Amounts of Outstanding Derivative Positions (Details)		3 Months Ended
	Mar. 07, 2024	Mar. 31, 2024 USD ($)	Apr. 12, 2024 CAD ($)
Derivative [Line Items]
Derivative, notional amount			$ 136,476,000
Maturity date	Mar. 07, 2024
May 1, 2025 | Interest Rate Cap
Derivative [Line Items]
Derivative, notional amount		$ 100,000,000
Derivative, Cap Rate		1.50%
Effective Date		May 01, 2024
Maturity date		May 01, 2025
July 1, 2025 | Interest Rate Cap
Derivative [Line Items]
Derivative, notional amount		$ 100,000,000
Derivative, Cap Rate		2.00%
Effective Date		Jul. 01, 2024
Maturity date		Jul. 01, 2025
December 1, 2026 | Interest Rate Cap
Derivative [Line Items]
Derivative, notional amount		$ 200,000,000
Derivative, Cap Rate		5.50%
Effective Date		Dec. 02, 2024
Maturity date		Dec. 01, 2026