The board of Strategic Storage Trust II Inc., a publicly registered non-traded real estate investment trust sponsored by SmartStop Asset Management, has approved an estimated net asset value of its Class A and Class T shares of common stock of $10.22 per share, as of December 31, 2016.
The board previously determined an estimated NAV of its Class A and Class T shares of $10.09 per share, as of December 31, 2015.
“In just over three years, SST II has acquired a diversified self-storage portfolio of 83 properties that includes approximately 51,300 units and more than 6 million square feet of rentable space,” said H. Michael Schwartz, chairman and chief executive officer. “We are very pleased with the REIT’s performance since inception, and believe our growing NAV endorses our acquisition and management philosophy, which is squarely focused on generating maximum value for our stockholders.”
Approved by the board of directors on April 13, 2017, the NAV is based on the estimated value of SST II’s assets less the estimated value of its liabilities, or net asset value, divided by the number of shares outstanding for each class of shares on an adjusted fully diluted basis.
The REIT’s Nominating and Corporate Governance Committee, comprised of its three independent directors, oversaw the valuation process and approved the engagement of Duff & Phelps LLC, an independent third party real estate valuation and advisory firm.
Duff & Phelps provided the committee with valuations for each property and a calculation of a range of the estimated value per share of its Class A shares and Class T shares of $9.84 to $10.61, with an approximate mid-range value of $10.22, as of December 31, 2016.
The committee then recommended to the REIT’s board of directors that it adopt $10.22 as the estimated NAV for its Class A shares and Class T shares, to which the board unanimously agreed.
The company noted that the valuation was performed in accordance with guidelines issued by the Investment Program Association.
From inception through December 31, 2016, SST II had acquired 77 self storage properties for a total cost of approximately $744 million, exclusive of acquisition fees and expenses. As of December 31, 2016, the total estimated value of the individual real estate assets as provided by Duff & Phelps was approximately $851 million.
SST II focuses on stabilized self storage properties and oversees a portfolio of 83 self storage facilities located in 14 states and Ontario, Canada, comprising approximately 51,300 self storage units and approximately 6 million net rentable square feet of storage space. As of January 3, 2017, the REIT had raised approximately $549 million in investor equity.