The board of Strategic Storage Growth Trust 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 $11.56 per share, as of December 31, 2016.
The board of directors previously determined an estimated per share NAV of its Class A and Class T shares of $10.05 as of December 31, 2015.
“We are very proud of the performance of SSGT and are pleased with our most recent valuation as reflected in our latest estimated per share value,” said H. Michael Schwartz, chairman and chief executive officer. “In just over two years, the REIT has acquired a national self-storage portfolio of 19 properties that currently includes approximately 1.3 million rentable square feet.”
The estimated per share NAV is based on the estimated value of the REIT’s assets less the estimated value of its liabilities, 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 two independent directors, oversaw the valuation process and approved the engagement of Duff & Phelps, 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 $10.89 to $12.37, with an approximate mid-range value of $11.56, as of December 31, 2016.
The committee then recommended to the REIT’s board of directors that it adopt $11.56 as the estimated NAV for its Class A and Class T shares, to which the board unanimously agreed. This valuation was performed in accordance with guidelines issued by the Investment Program Association.
From inception through December 31, 2016, the REIT had acquired 17 properties for a total cost of approximately $91 million, exclusive of acquisition fees and expenses and inclusive of construction in process. As of December 31, 2016, the total estimated value of the individual real estate assets as provided by Duff and Phelps was approximately $129 million.
Strategic Storage Growth Trust focuses on the acquisition, development, redevelopment and lease-up of self-storage properties. The company’s portfolio currently consists of 16 operating self-storage facilities located in seven states and includes three development properties. The REIT went effective in January 2015 and has raised more than $107.4 million in investor equity, as of the fourth quarter of 2016.