SmartStop Self Storage REIT Advances After $810 Million US IPO

SmartStop Self Storage REIT Inc. made a successful debut in the stock market following its recent initial public offering (IPO) that raised $810 million. The self-storage real estate investment trust (REIT) priced its shares at $30 each, which was on the lower end of the expected range.

Market Debut Highlights

On April 2, 2025, SmartStop's shares opened at $32.40, indicating a strong first day of trading above the IPO price. The firm sold 27 million shares during the offering, which were initially intended to be priced between $28 and $36 per share. However, the company adjusted its pricing downwards to reflect market conditions.

Company Background and Future Prospects

Founded in 2009, SmartStop operates over 200 storage facilities across the United States and Canada, encompassing more than 16.7 million rent-able square feet. It ranks as the 10th largest self-storage company in the U.S.

For 2024, SmartStop reported a net loss of $18.4 million on revenue of $237 million, compared to a net loss of $2.7 million on $233 million in revenue the previous year. The company's shares, which previously traded over the counter, will now trade on the New York Stock Exchange under the ticker symbol SMA.

The IPO is particularly noteworthy as it occurs during a period when the U.S. IPO market has faced challenges in generating excitement, with many recent offerings not meeting investor expectations. SmartStop has indicated plans to offer underwriters an option to purchase an additional 4 million shares of its stock within 30 days at the public offering price. Major financial institutions involved in this offering included JPMorgan Chase & Co., Wells Fargo & Co., KeyBanc Capital Markets, BMO Capital Markets, and Truist Securities.

IPO, REIT, Stock