Q3 2025 SmartStop Self Storage REIT Inc Earnings Call

Operator: Ladies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today. At this time, I would like to welcome you to the SmartStop Self Storage REIT Q3 earnings call. All lines have been placed on mute to prevent any background noise, and after the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question at that time, please press star then 1 on your telephone keypad. If you'd like to withdraw your question at any time, please press star 1 again. I would now like to turn the call over to David Corak. Please go ahead.

Ladies and gentlemen, thank you for standing by my name is Colby and I'll be your conference operator today.

At this time I would like to welcome you to the smart shop, So smart smart stop self storage REIT third quarter earnings call. All lines have been placed on mute to prevent any background noise nothing the speaker's remarks, there will be a question and answer session. If you'd like to ask a question at that time. Please press Star then the number one on your telephone keypad.

I would like to withdraw your question at any time, Please press star one again.

I would now like to turn the call over to David Corak. Please go ahead.

David Corak: Thank you, operator. Before we begin, I would like to remind everyone that certain statements made during today's call, including statements about our future plans, prospects, and expectations, may be considered forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements are subject to numerous risks and uncertainties as described in our filings with the Securities and Exchange Commission. These risks could cause our actual results to differ materially from those expressed in or implied by our comments. Forward-looking statements in our earnings release that we issued last night, along with the comments on this call, are made only as of today. The company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise. In addition, we will also refer to certain non-GAAP financial measures.

Thank you operator before we begin I would like to remind everyone that certain statements made during today's call, including statements about our future plans prospects and expectations may be considered forward looking statements within the meaning of the safe Harbor provisions of the private Securities Litigation Reform Act. These forward looking statements are subject to numerous risks and uncertainties as described in our filings with the security.

And exchange Commission and these risks could cause our actual results to differ materially from those expressed in or implied by our comments.

Forward looking statements in our earnings release that we issued last night, along with our comments on this call are made only as of today. The company assumes no obligation to update any forward looking statements, whether as a result of new information future events or otherwise.

In addition, we will also refer to certain non-GAAP financial measures information regarding our use of these measures and a reconciliation of these measures to GAAP measures can be found in our earnings release and supplemental disclosure that were issued last night and are available for download on our website at investors thought smart stop self storage dot com and.

David Corak: Information regarding our use of these measures and the reconciliation of these measures to GAAP measures can be found in our earnings release and supplemental disclosure that were issued last night and are available for download on our website at investors.smartstopselfstorage.com. In addition to myself, today we have H. Michael Schwartz, Founder, Chairman, and CEO, as well as James Barry, our CFO. I'll turn it over to Michael.

In addition to myself today, we have Michael Schwartz founder Chairman and CEO as well as <unk>, Barry our CFO now I'll turn it over to Michael.

H. Michael Schwartz: Thank you, David. Thank you for joining us today for our Q3 earnings call to discuss our first full quarter as a New York Stock Exchange-listed company. I'll start with some introductory remarks on SmartStop, the Argus transaction, and the industry before I hand it over to James to discuss the quarter. After that, we'll open it up to Q&A with James, David, and myself. Before we dive into the high-level remarks, a few highlights of our Q3 results. We posted a strong Q3 with sector-leading same-store revenue growth of 2.5% and average occupancy of 92.6%, both largely in line with our expectations. We reported FFO as adjusted per share of $0.47, which was about $0.02 below our expectations for the quarter.

Thank you David and thank you for joining us today for our third quarter earnings call to discuss our first full quarter as a New York stock Exchange listed company.

I'll start with some introductory remarks on smart stop the artist transaction in the industry before I hand, it over to James to discuss the quarter. After that we'll open it up to Q&A with James David and myself.

Before we dive into the high level remarks, a few highlights of our third quarter results, we posted a strong third quarter with sector, leading same store revenue growth of two 5% and average occupancy of 92, 6% both largely in line with our expectations, we reported <unk> as adjusted per share of <unk> 40.

Seven.

Which was about <unk> <unk> below our expectations for the quarter. This was entirely driven by two events that we noted in last night's earnings release, an unexpected vacated bar only notable industrial tenant and the recognition of a one time equity based compensation expense related to performance units issued in 2023 Janesville.

H. Michael Schwartz: This was entirely driven by two events that we noted in last night's earnings release: an unexpected vacate of our only notable industrial tenant and the recognition of a one-time equity-based compensation expense related to performance units issued in 2023. James will elaborate on these items later in the call. With these pieces in mind and our 3-2 strong operating results, we maintain the midpoint of our full year 2025 FFO as adjusted per share guidance. First, we opportunistically returned to the Canadian Maple bond market, raising CAD 200 million at a 3.89% coupon, this time with a 5-year maturity. During the quarter, we acquired approximately $86 million of Class A storage properties on balance sheet in both the US and Canada.

Right on these items later in the call with these pieces in mind and our <unk> strong operating result, we maintained the midpoint of our full year 2025, <unk> as adjusted per share guidance.

We had another robust quarter, both in terms of performance and activity Hearst, We opportunistically returned to the Canadian Maple bond market, raising $200 million Canadian at a 389% coupon. This time with a five year maturity during the quarter, we acquired approximately 86.

Million of class a storage properties on balance sheet in both the U S and Canada. We also acquired one property subsequent to the quarter end were $15 3 million.

H. Michael Schwartz: We also acquired 1 property subsequent to the quarter end for $15.3 million. These on-balance-sheet acquisitions are primarily Class A properties located in top markets consistent with our communicated acquisition strategy. We also increased our loans and preferred investments to the managed REITs by approximately $20 million. Between these loans and our on-balance-sheet acquisitions, we deployed about $106 million of accretive capital during the quarter. Additionally, we are proud of SmartStop's inclusion as a member of the MSCI US REIT Index, more commonly known as the RMZ. Lastly, but certainly not least, we entered into a contribution agreement with Argus Professional Storage Management. Needless to say, it was another very active quarter. Before turning to the industry, I just want to spend a minute on the Argus transaction, which we closed on 1 October.

These odd balance sheet acquisitions are primarily class a properties located in top markets consistent with our communicated acquisition strategy. We also increased our loans and preferred investments to the managed REIT by approximately $20 million between these loans and our on balance sheet acquisitions we.

Deployed about $106 million of accretive capital during the quarter. Additionally, we are proud of smart stops inclusion as a member of the MSCI U S. REIT index more commonly known as the RMB lastly, but certainly not least we entered into a contribution.

With Rguest professional storage management Needless to say it was another very active quarter.

Before turning to the industry I just want to spend a minute on the Argus transaction, which we closed on October one.

H. Michael Schwartz: Since the IPO roadshow, we have been communicating to the street that we intended to enter the third-party management business, and we're actively exploring either developing a platform of our own or acquiring an existing pure-play platform. After thoroughly studying the merits of both paths, we decided that if we could find the right partner, the latter would be the most beneficial to our shareholders. We've known the principals of Argus for almost 2 decades and have the utmost respect for what they've built. We had tremendous confidence that we'd identified the right partner. One with a robust third-party management platform, a top-notch team of professionals, strong relationships across the United States, and a managed portfolio that strongly overlapped with ours. With approximately 230 stores under management across 26 states, Argus was the second-largest independent third-party storage manager in the US.

Since the IPO Roadshow, we have been communicating to the street that we intended to enter the third party management business and we're actively exploring either developing a platform of our own or acquiring an existing pure play platform.

<unk> thoroughly studying the merits of both half we decided that if we could find the right partner the latter would be the most beneficial to our shareholders. We've known the principles of Rguest for almost two decades and have the utmost respect for what they've built so we had tremendous confidence that we have identified the right.

Partner.

One with a robust third party management platform, a top notch team of professionals strong relationships across the United States and a managed portfolio that strongly overlapped with ours with approximately 230 stores under management across 26 States August was the second largest independent third party storage man.

<unk> in the U S. Together, we now operate more than 460 self storage properties in North America, nearly doubling our store count and increasing our overall owned and managed net rental square feet to over $35 million. This deal immediately jumpstarts, our third party management strategy and accretive manner.

H. Michael Schwartz: Together, we now operate more than 460 self-storage properties in North America, nearly doubling our store count and increasing our overall owned and managed net rental square feet to over 35 million. This deal immediately jumpstarts our third-party management strategy in accretive manner rather than a dilutive and lengthy process of developing one ourselves. A few highlights of the deal. Given the size of the managed portfolio, this essentially doubles our data sets, enabling better revenue management across both existing and new geographies. We get immediate property clustering in 12 current SmartStop markets, which in time should lead to margin expansion for both managed and owned properties. This provides SmartStop with direct access to a captive pipeline of potential acquisition targets, including off-market deals.

Rather than a dilutive and lengthy process of developing one ourselves.

You highlight that the deal given the size of the managed portfolio is essentially doubles, our datasets, enabling better revenue management across both existing and new geographies, we get immediate property clustering and 12 current smart Sop markets, which in time should lead to margin expansion for both managed and owned properties.

This provides smart stop with direct access to a captive pipeline of potential acquisition targets, including off market deals.

H. Michael Schwartz: It also opens the door to bridge lending to current or potential owners, which is something that no other independent third-party manager can provide. Lastly, this deal paves the way for SmartStop to expand third-party management in Canada, a vastly underserved management market. As for an update, as of today, we have not experienced any attrition or indications of attrition beyond what we had already known in our underwriting. The integration is going very well, and we've had no turnover of Argus employees. Finally, I'll note that we closed our first lending opportunity with a $4.8 million preferred investment related to a 5-property portfolio that just onboarded onto our platform last week. Turning to the industry.

It also opens the door to bridge lending to current or potential owners, which is something that no. Other independent third party manager can provide it.

And lastly, this deal paves the way for smart start to expand third party management, and Canada vastly underserved management market.

As for an update as of today, we have not experienced any attrition or indications of attrition beyond what we had already known in our underwriting the integration is going very well and we've had no turnover of Argus employees. Finally, I'll note that we've closed our first lending opportunity with a $4 8 million preferred investment related to a five.

Property portfolio that just onboard it onto our platform last week.

Turning to the industry on the operations front, we continue to believe that 2025 will be an incrementally better year in 2024, but not as strong as a more normalized year in storage. Accordingly, we saw a more normalized rental season as compared to the past two years, but again still not quite atypical rentals.

H. Michael Schwartz: On the operations front, we continue to believe that 2025 will be an incrementally better year than 2024, but not as strong as a more normalized year in storage. Accordingly, we saw a more normalized rental season as compared to the past 2 years, but again, still not quite a typical rental season. The recovery in storage is happening, but the choppiness in customer demand continues. During the quarter, we saw a healthy July and August to close out busy season, but a weaker than anticipated September. Industry move-in rates continue to stabilize but are still negative year over year, though significantly less negative than the previous 2 years. However, our strategy is working. Website visits are up significantly. Reservations remain strong. In Q3, we posted the highest ever lead conversion statistics in our company's history.

Season.

The recovery in storage is happening, but the choppiness and customer demand continues.

During the quarter, we saw a healthy July and August to closeout busy season, but a weaker than anticipated September eight.

The industry move in rates continue to stabilize but are still negative year over year, those significantly less negative than the previous two years. However, our strategy is working website visits are up significantly reservations remains strong in the third quarter, we posted the highest ever lead conversion statistics.

In our company's history, we also posted the highest hit rate on tenant protection in our company's history.

H. Michael Schwartz: We also posted the highest hit rate on tenant protection in our company's history. Our customers' health remains strong. Delinquencies remain at below average levels and in fact are down year-over-year. 25% of our new rentals utilize our SmartPay feature for payments, and nearly 50,000 customers have downloaded our mobile app. ECRIs remain healthy without any change in attrition. Customers citing the rental rates as a reason for leaving our properties is down year-over-year on our exit surveys. With our year-to-date results through busy season paired with an improved supply picture, we remain optimistic on the sector's slow and steady recovery, creating momentum as we head into 2026. I do wanna quickly touch on the retail shareholder lock-up expiration. On 1 October, our 6-month post lock-up of our existing retail shareholders expired.

Customers health remains strong delinquencies remain at below average levels and in fact are down year over year, 25% of our new rentals utilize our smart pay feature for payments and nearly 50000 customers have downloaded our mobile app <unk> remains healthy without any change in <unk>.

Richard.

Customer, citing the rental rates as a reason for leaving our properties is down year over year on our exit surveys.

With our year to date results through busy season paired with an improved supply picture, we remain optimistic on the sector slow and steady recovery, creating momentum as we head into 2026.

I do want to quickly touch on the retail shareholder lock up expiration.

On October one our six months post lockup of our existing retail shareholders expired.

H. Michael Schwartz: Over the course of the next 2 weeks, as expected, we saw elevated volume and volatility in our stock price. Since then, both volume and volatility have normalized. While we are not able to calculate the exact turnover of our retail shareholder base, we want to once again thank our retail shareholders who have been such an important part of SmartStop. Taking a step back, we have accomplished a tremendous amount in a short period of time as a publicly traded company. We believe we're off to a strong start and are executing on the story that we laid out on our IPO roadshow in March. 2025 will certainly be known as a transformational year for SmartStop. We had a successful IPO raising $931.5 million in some of the most difficult capital markets and tariff concerns, AKA Liberation Day.

Over the course of the next two weeks as expected we saw elevated volume and volatility in our stock price. Since then both volume and volatility have normalized while we aren't able to calculate the exact turnover our retail shareholder base, we want to once again, thank our retail shareholders, who have been such an important part of <unk>.

<unk>.

Taking a step back we have accomplished a tremendous amount in a short period of time as a publicly traded company.

We believe we're off to a strong start and are executing on the story that we laid out on our IPO Roadshow in March 2025, we will certainly be known as a transformational year for <unk>, we had a successful IPO raising $931 5 million and some of the most difficult capital markets.

Tariff concerns.

Hey, Liberation day, we raised $700 million and maple bonds at a sub 4% rate, we had more than $500 million in accretive acquisitions over the past 12 months, including the acquisition of Rguest professional storage management.

H. Michael Schwartz: We raised $700 million in Maple bonds at a sub 4% rate. We had more than $500 million in accretive acquisitions over the past 12 months, including the acquisition of Argus Professional Storage Management. Sector leading same-store revenue growth, even with the backdrop of the single largest self-storage supply wave in our sector's history, expected strong FFO growth that should further accelerate in Q4. Without a doubt, we're in a choppy self-storage market with volatile capital markets and plenty of uncertainty in the broader economic environment. However, through all this choppiness, SmartStop's accomplishments over the past 7 months have positioned this company to achieve solid forward growth and take advantage of the better days ahead in self-storage. We are a small-cap company with a large-cap platform built for continued growth in the US and Canada.

Sector, leading same store revenue growth, even with the backdrop of the single largest self storage supply wave and our sector's history and expected strong <unk> growth that should further accelerate in the fourth quarter without a doubt we're in a choppy self storage market with volatile capital markets and plenty.

Uncertainty in the broader economic environment. However, through all of this choppiness smart stops accomplishments over the past seven months and position. This company to achieve solid board growth and take advantage of the better days ahead and self storage.

We are a small cap company with a large cap platform built for continued growth in the U S and Canada with that I'll turn it over to James to discuss the quarter.

H. Michael Schwartz: With that, I'll turn it over to James to discuss the quarter.

James Barry: Thank you, Michael. Starting with our operating performance, we are pleased to report that our same-store pool posted year-over-year revenue growth of 2.5%, with operating expense growth of 4.5%, leading to an NOI increase of 1.5%. These were all in line with our expectations. The FX impact from our 13 Canadian same-store assets was a headwind of approximately 10 basis points to our overall same-store pool as we posted constant currency revenue growth of 2.6%, expense growth of 4.6%, and NOI growth of 1.6%. Revenue growth was in line for Q3, and we accomplished best-in-class same-store revenue growth utilizing less concessions and limited marketing dollars while maintaining strong occupancy of over 92%.

Thank you Michael starting with our operating performance. We are pleased to report that our same store pool posted year over year revenue growth of two 5% with operating expense growth of four 5% leading to an NOI increase of one 5%. These were all in line with our expectations the FX impact from our 13 Canadian.

Same store assets was a headwind of approximately 10 basis points to our overall same store pool as we posted constant currency revenue growth of two 6% expense growth of four 6% and NOI growth of one 6%.

Revenue growth was in line for the third quarter and we accomplished best in class same store revenue growth utilizing less concessions and limited marketing dollars, while maintaining strong occupancy of over 92%.

James Barry: On the operating expense front, property taxes were up 4.8% and marketing expense was up only 1.8%. We saw muted or negative expense growth in payroll, utilities, professional, and administrative expenses. Notably, our property insurance was down 4.5% this quarter as we finally started to see pressure alleviate in that market. The result was that same-store operating expenses were up 4.5% year over year. Our same-store pool ended the quarter at 92.4% occupancy, up 10 basis points year over year, while average occupancy was 92.6%, up 40 basis points year over year.

The operating expense front property taxes were up four 8% and marketing expense was up only one 8% we saw muted or negative expense growth in payroll utilities professional and administrative expenses, notably our property insurance was down four 5% this quarter as we finally started to see pressure.

In that market. The result was that same store operating expenses were up four 5% year over year.

Our same store pool ended the quarter at 92, 4% occupancy up 10 basis points year over year, while average occupancy was 92, 6% up 40 basis points year over year.

James Barry: Our web rates were down about 3.9% year-over-year for Q3, while our achieved move-in rates were down 8.5% on average as the stabilization of the rate environment slowly but surely continues. As we moved into October, we put a strong emphasis on maintaining occupancy headed into slow season. In doing so, we actually grew our average and ending occupancy over September by about 10 basis points. October ended occupancy at 92.5%, up 20 basis points year-over-year. In-place rates were up 50 basis points year-over-year and flat versus September, and we are positive on a year-over-year basis for rentals in the month of October by 9%.

Our web rates were down about three 9% year over year for the third quarter, while our achieved move in rates were down eight 5% on average as the stabilization of the rate environment slowly, but surely continues.

As we moved into October we put a strong emphasis on maintaining occupancy headed into the slow season in doing so we actually grew our average and ending occupancy over September by about 10 basis points October ended occupancy at 92, 5% up 20 basis points year over year in place rates were up 50 basis.

This points year over year and flat versus September and we are positive on a year over year basis for rentals in the month of October by 9%.

James Barry: On the external growth front, we acquired 6 properties for $83 million and a piece of land within a joint venture for $1 million during the quarter, leading to a full year acquisitions of $318 million through the end of September. Subsequent to quarter end, we acquired Argus as well as 1 property in the Orlando MSA for $15.3 million. I'll note that as of 30 September, we have acquired nearly $500 million on balance sheet over the last 12 months. Turning to the managed REIT platform, our 3 managed REIT funds, inclusive of 1031 eligible DST programs, ended the quarter with assets under management of $972 million.

On the external growth front, we acquired six properties for $83 million and a piece of land within a joint venture for $1 million during the quarter, leading to a full year acquisitions of $318 million through the end of September.

Subsequent to quarter end, we acquired Argus as well as one property in the Orlando MSA for $15 3 million.

I'll note that as of September 30, we have acquired nearly $500 million on balance sheet over the last 12 months.

Turning to the managed REIT platform, our three managed refunds inclusive of $2 31 eligible DSC programs ended the quarter with assets under management of $972 million, we recognize gross fees of $3 6 million and the managers have a combined portfolio of 48 operating properties and approximately 4 million net rentable square feet at quarter end.

James Barry: We recognized gross fees of $3.6 million, and the managed REITs have a combined portfolio of 48 operating properties at approximately 4 million net rentable square feet at quarter end. We also increased our loans and preferred investments to the managed REITs by approximately $20 million, all of which happened in September. As a result, we recognized interest income of $1.5 million during the quarter. The DST programs continue to successfully raise equity, and we are excited that SST Ten has closed its first property subsequent to quarter end as that program gets up and running. The result of all of this is that for Q3 2025, we posted fully diluted FFO as adjusted per share and unit of $0.47. As Michael mentioned, this was a few cents below our expectations, driven by 2 main items.

We also increased our loans and preferred investments to the mandatory by approximately $20 million all of which happened in September.

As a result, we recognized interest income of $1 5 million during the quarter.

The Dfc programs continued to successfully raise equity and we are excited that SSD tenants closed its first property subsequent to quarter end as that program gets up and running.

The result of all of this is that for the third quarter of 2025, we posted fully diluted <unk> as adjusted per share and unit of <unk> 47.

As Michael mentioned this was a few cents below our expectations driven by two main items first we recorded an approximate $825000 expense due to performance based equity compensation in G&A from the expectation that legacy performance units issued in 2023, we invested 200% of target. These units were tied to it.

James Barry: First, we recorded an approximate $825,000 expense due to performance-based equity compensation in G&A from the expectation that legacy performance units issued in 2023 will vest at 200% of target. These units were tied to same-store operating performance relative to our peer group. The midpoint of our previous guidance for G&A expenses issued in August 2025 did not contemplate the recognition of this expense on the midpoint for the full year 2025. The impact of this expense to our FFO is adjusted per share, and OP unit outstanding is about $0.015 for the full year 2025. Second, during the quarter, a tenant renting industrial space at one of our non-same store properties unexpectedly defaulted on their lease and vacated the space. This tenant accounted for approximately $730,000 of annual NOI.

Same store operating performance relative to our peer group.

Mid point of our previous guidance for G&A expenses issued in August 2025 did not contemplate the recognition of this expense on the midpoint for the full year 2025 <unk>.

The impact of this expense to our <unk> as adjusted per share and <unk> unit outstanding is about a penny and a half for the full year 2025.

Second during the quarter, a tenant renting industrial space at one of our non same store properties unexpectedly defaulted on their lease and vacated the space. This tenant accounted for approximately $730000 of annual NOI.

James Barry: We believe the impact to our FFO is adjusted per share to be just under a penny for the full year 2025. We are in the process of finding a replacement tenant while simultaneously evaluating a redevelopment of that space into traditional self-storage. Just to preempt the question, this was our only industrial space in the owned portfolio. Even in the face of those two items, Q3 was a much cleaner quarter from a transactions standpoint as compared to Q2. There are a few more moving pieces to keep in mind headed into Q4 on the capital side. These include the September Maple bond, which was completed on 26 September, the coupon step-down of our US private placement, which occurred on 1 October, and the refinance of our joint venture level debt, which was completed last week.

We believe the impact to our <unk> as adjusted per share to be just under a penny for the full year 2025, we are in the process of finding a replacement tenant while simultaneously evaluating a redevelopment of that space into traditional self storage and just to preempt. The question. This was our only industrial space in the owned portfolio.

Even in the face of those two items third quarter was a much cleaner quarter from a transaction standpoint as compared to the second quarter, but there are a few more moving pieces to keep in mind headed into the fourth quarter on the capital side. These include the September Maple Bond, which was completed on September 26.

The coupon step down of our U S private placement, which occurred on October one and the refinance of our joint venture level debt, which was completed last week.

James Barry: Looking out for the remainder of 2025, we updated our guidance for the full year last night. We are now expecting same-store revenue growth in the 1.9% to 2.3% range, with OpEx growth in the 4.0% to 4.4% range, resulting in NOI growth of 0.9% to 1.1%. The other moving pieces as compared to our previous guidance were as follows. Better than expected execution on the Canadian Maple bond. Better than expected managed REIT EBITDA. Higher G&A, primarily driven by the previously mentioned performance units. Reduction of our same-store NOI guidance by 10 basis points at the midpoint, and a reduction to our non-same-store NOI due to the aforementioned industrial tenant. We also narrowed our acquisitions guidance to $365 million to 385 million.

Looking out to the remainder of 2025, we updated our guidance for the full year last night. We are now expecting same store revenue growth in the one 9% to two 3% range with operating expense growth in the 4.0% to four 4% range, resulting in NOI growth of <unk>, 9% to one 1% the.

The other moving pieces as compared to our previous guidance, whereas follows.

Better than expected execution on the Canadian Maple bond better than expected manager EBITDA higher G&A, primarily driven by the previously mentioned performance units reduction of our same store NOI guidance by 10 basis points at the midpoint and a reduction to our non same store NOI due to the aforementioned industrial tenants. We also narrowed our <unk>.

Acquisitions guidance to 365 million to $385 million.

James Barry: The result of all of these updates is that we are tightening our FFO as adjusted per share range to $1.87 to $1.91 for the full year 2025. Lastly, turning to the balance sheet. In September, we priced our second Maple bond, raising CAD 200 million or approximately $144 million USD. The notes have a 5-year maturity and bear a coupon of 3.888%. We were extremely pleased with this execution, which coming off the back of our June offering, was multiple times oversubscribed. In October, we closed on a CAD 160 million term loan within our SmartCentres joint ventures, of which we are 50% owners. The loan is a 5-year term and bears a fixed interest rate of 3.87%.

<unk> of all of these updates we are tightening our <unk> as adjusted per share range to $1 87 to $1 91 for the full year 2025.

Lastly, turning to the balance sheet in September we priced our second maple bond raising $200 million Canadian or approximately $144 million USD.

Notes have a five year maturity and bear a coupon of 388, 8%. We were extremely pleased with this execution, which coming off the back of our June offering was multiple times oversubscribed.

In October we closed on a $160 million Canadian term loan within our Smart Center joint ventures of which we are 50% owners. The loan has a five year term and bears a fixed interest rate of 387%. We used the proceeds to pay off all of the existing JV level debt, which had a weighted average cost of $5 seven.

James Barry: We used the proceeds to pay off all the existing JV level debt, which had a weighted average cost of 5.7%. The joint venture was also able to raise excess proceeds of approximately CAD 27 million as a result of this refinance. With the Maple bond and the JV level debt issued in October, we have fully hedged our Canadian FX exposure from a cash flow standpoint naturally. Additionally, over 99% of our outstanding debt was fixed as of quarter-end and pro forma for the JV refinance. While our work on the balance sheet is continuous, we are very happy with the transformation of the debt stack that we've been able to accomplish since April. With that, operator, we will open it up to questions.

<unk>.

<unk> venture was also able to raise excess proceeds of approximately $27 million Canadian dollars as a result of this refinance.

With the Maple bond and the JV level debt issued in October we are fully hedged our Canadian FX exposure from a cash flow standpoint naturally. Additionally.

Additionally, over 99% of our outstanding debt was fixed as of quarter end and pro forma for the JV refinance.

While our work on the balance sheet is continuous we're very happy with the transformation of the debt stack that we've been able to accomplish since April.

And with that operator, we will open it up to questions.

Operator: Thank you. We will now begin the question and answer session. If you'd like to ask a question, please press star then the number one on your telephone keypad to raise your hand and enter the queue. If you'd like to withdraw your question at any time, simply press star one again. Thank you. Your first question comes from Todd Thomas with KeyBanc Capital Markets. Your line is open.

Thank you we will now begin the question and answer session. If you'd like to ask a question. Please press Star then the number one on your telephone keypad to raise your hand and entered the queue.

If you would like to withdraw your question at any time simply press Star one again.

Thank you.

Your first question comes from Todd Thomas with Keybanc capital markets. Your line is open.

Todd Thomas: Hi. Thanks. James, I wanted to ask about acquisitions. You know, you touched on investments that you've completed, I think it was over the last 12 months, targeting $375 this calendar year. How are you thinking about acquisitions from here with a view into 2026, given, you know, sort of some of the volatility and capital costs and with leverage in the high fives, or do you stay, you know, do you maintain this pace moving ahead?

Yeah, Hi, Thanks, James I wanted to ask about acquisitions.

You touched on on investments that you've completed I think it was over the last 12 months targeting.

Targeting $3 75, this calendar year, how are you thinking about acquisitions from here.

With a view into 26 do you pause given sort of some of the volatility in capital costs and with leverage in the high fives or do you stay.

Do you maintain this pace moving ahead.

James Barry: Hey, Todd, it's Corak. I'll start. Then hand it over to the rest of the team here. You know, what we've said from the get-go is that we've got this target leverage range, you know, in the 5 to 6x range, and we intend to stay in there. Obviously, there's gonna be periods where we are below it, as we were right after the IPO, and there's gonna be periods that, you know, we opportunistically look to take that up a little bit. We do wanna, you know, maintain that as our target range on a go-forward basis. When you think about the pace of acquisitions, right?

Hey, John It's Greg I'll start and then hand, it over to the rest of the team here. So.

What we've said from the get go is that we've got this target leverage range.

In the five to six times range and we.

<unk> intends to stay in there, obviously theres going to be periods, where we are below it as we were right. After the IPO and theres going to be periods that we opportunistically look to take that up a little bit, but we do want to maintain that as our target range on a go forward basis. When you think about the pace of acquisitions right. This year 375 is the midpoint of the range.

David Corak: This year, 375 is the midpoint of the range, you know, which entails just over 10% growth of the asset base overall. We'd love to be able to grow the portfolio by 10% or more in a given year. Realistically, when you just do the math, if we wanted to do that next year, that would require some common equity to help keep us in that target leverage range. What we've said from the beginning is we're not gonna go out and issue, you know, common equity at a 6.5 cap to go buy 5.5 cap assets on a go-forward basis, the math just doesn't make sense to us.

Which entails.

Over 10% growth of the asset base overall, we love to be able to grow the portfolio by 10% or more in a given year, but realistically when you just do the math.

We wanted to do that next year that would require some some common equity to help keep us in that in that.

Our debt leverage ranges and so what we've said from the beginning is we're not going to go out and issue common equity at a six five cap to go buy five five cap assets on a go forward basis with the math just doesn't make sense to us. So I think what I would say is when we look out.

David Corak: I think what I would say is, you know, when we look out, you know, we're gonna be, you know, really prudent with how we deploy capital, and be opportunistic on a go-forward basis.

We're going to we're going to be really prudent with how we deploy capital.

And be opportunistic on a go forward basis and Todd. This is Michael Schwartz side I would add also is that as <unk>.

H. Michael Schwartz: Todd, this is Michael Schwartz. I would add, you know, also is that as many are aware, we've had some significant structural changes to our balance sheet, which we're starting to see kind of that kind of flow through with respect to kind of our FFO for Q3, moving in potentially Q4 and then 2026. As we look at our levers to growth, clearly external growth is one that we'd like to capitalize on. We obviously need to be careful of where we're trading. We do have other levers of growth. You know, we do have our same-store pool, we do have our non-same store pool, we have our joint venture pool.

Many of you are aware, we've had some significant structural changes to our balance sheet, which.

We're starting to see kind of that kind of flow through with respect to kind of our SFO.

For the third quarter, moving and potentially the fourth quarter, and then 2026 and so as we look at at our levers of growth.

Clearly external growth is one that we'd like to capitalize on but we obviously.

Need to be careful, but where were trading but we do have other levers of growth. We do have our same store pool. We do have our non same store pool, we have our joint venture pool.

H. Michael Schwartz: You know, we have our third-party management platform with Argus, which obviously we're spending a lot of attention. Last but not least, you know, we do have our managed REIT platform, which we think will add some additional contribution as we move forward. Finally, at this point, we do not have a joint venture partner. At some point in the future, we will have a joint venture partner, and we think that that will create, you know, additional lever for growth.

And we have our third party management platform with Rguest, which obviously, we are spending a lot of attention and last but not least we do have are managed.

Managed REIT platform, which we think will be add some additional contribution as we move forward and then finally, whereas at this point, we do not have a joint venture partner at some point in the future. We will have a joint venture partner and we think that that will.

Create addition, additional lever for growth just to frame one more thing Michael mentioned the acquisition of Argus, which obviously closed subsequent to quarter end and some of the consideration there was in the form of equity for tax planning purposes. So actually that transaction should should bring down our leverage on a net basis. When you roll from 930 to 10, one just.

David Corak: Just to frame one more thing. Michael mentioned the acquisition of Argus, which obviously closed subsequent to quarter end, and some of the consideration there was in the form of equity for tax planning purposes. Actually that transaction should bring down our leverage on a net basis, when you roll from 30 September to 1 October, just from that transaction alone.

That transaction alone.

Todd Thomas: Okay. That's helpful. Then one or two on Argus, actually. First, can you talk about the integration of that platform, the timeline, for SmartStop to, you know, fully integrate leasing, revenue management, financial reporting, or whatever else? Michael, you talked about the scale benefits that you might expect to achieve in some of the overlapping markets. Any early update or insights on that and sort of the timeline to begin to see some of those benefits?

Okay. That's that's helpful and then.

Then one or two on or I guess actually.

First can you talk about the integration of that platform the timeline for.

For smart stop to fully integrate leasing revenue management financial reporting whatever else and Michael you talked about the scale benefits that you.

Might expect to achieve in some of the overlapping markets any any early update or insights on that and sort of the timeline to begin to see some of those benefits.

H. Michael Schwartz: Todd, thank you. Well, the good news here that with the acquisition of Argus, there's not this integration within SmartStop, okay? Let me step back. When we decided to acquire Argus, we spent a lot of time understanding what Argus had built. They had built this entrepreneurial third-party management platform that was developed for entrepreneurial self-storage owners that were fiercely independent. Some want full service, but some actually want say in the overall aggregate operations. We've recognized that we have to respect the entrepreneurial owners within that. What our strategy has been, and we've been making this clear, is that we wanna provide the services that these owners want.

Hi, Todd Thank you well the good news here this week.

The acquisition of Rguest Theres not this integration within smart stop Okay, and so let me step back when we when we do.

Decided to acquire <unk>.

<unk>, we spent a lot of time understanding what Argus had built and they had built this entrepreneurial third party management platform that was developed for entrepreneurial self storage owners that we're fiercely independent and so somewhat full service with some actually want say in the overall aggregate operations and so.

We recognize that we have to respect the entrepreneurial owners within that and so what our strategy has been and we've been making this may.

Making this clear is that we want to provide the services that these owners want and so what we step back and said how do we do that one.

H. Michael Schwartz: What we stepped back and said, how do we do that? Well, one, we didn't think it was prudent to go in there and say to these owners that you now all have to be pushed onto the SmartStop platform. That's not very entrepreneurial whatsoever. Being an entrepreneur, I'm very sensitive to that. We put together a menu, a menu of options that gives us a differentiated experience versus some of the third-party platforms out there. One, if you wanna be on the SmartStop platform, hey, great. We will brand you, sign a couple-year agreement, and we will kick in some dollars to, you know, change signs out and brand and onward you march. Or if you like your brand, well, we love your brand too.

We didn't think it was prudent to go in there and say to these owners that you know all has to be pushed onto the smartphone platform. That's not very entrepreneurial whatsoever in being an entrepreneur I'm very sensitive to that so we put together a menu a menu of options that gives us a differentiated experience versus some of the third party.

Forms out there one if you wanted to be on the smart stop platform Hey, Great. We will brand you sign a couple of year agreement and we will kick in some some some dollars to to change.

<unk> signs out and brand and honorary March or if you'd like your brand when we love your brand to where you can keep your brand you can move to the <unk> platform will create a page within the smart stop environment and Youre utilizing all the benefits. However, if you really want to maintain your independence through right.

H. Michael Schwartz: You can keep your brand, and you can move to the SmartStop platform. We'll create a page within the SmartStop environment, and you're utilizing all the benefits. However, if you really want to maintain, you know, your independence through a private label solution, we're gonna allow that. Now, do we think that the properties will perform better on the SmartStop platform? The absolutely, yes. However, we think there's some significant amount of enhancements that we're gonna be able to offer the current owners. For an example, from accounting perspective, from a reporting perspective, and in addition, consultation perspective on things that they're seeing, how we look at it. One of the big items that we're doing, we're having a very large operator meeting in the end of January. We need to get out and meet these operators one-on-one. We need to introduce ourselves to them.

Private label solution, we're going to allow that now do we think that the properties will perform better on the smart stop platform. The absolutely. Yes. However, we think there is some significant amount of enhancements that we're going to be able to offer the current owners. So for an example from accounting perspective from <unk>.

Porting perspective, and in addition console patient perspective on things that they are seeing how we look at it and so one of the big items that we're doing we're having a very large operator meeting. The ended January we need to get out and meet these operators one on one we need to introduce ourselves to them and so from that perspective.

H. Michael Schwartz: From that perspective, I think next year we will start to see, I think, some of the choices that they will exercise. That's how we kinda look at the transaction, and that's how we're handling the transaction. We do believe over time, at minimum, people will probably be choosing the SmartStop legacy brand at minimum. We're engaging a lot of the owners right now, and a lot of them are very intrigued. I think in January, it'll be a great opportunity to introduce ourselves, and I think at that point, we will get a better sense of who's gonna be transitioning to the SmartStop platform.

I think next year, we will start to see I think some of the choices that they will.

Exercise and so that's how we kind of look at the transaction and that's how we're handling the transaction, but we do believe over time at minimum people will probably be excusing. The smart stopped legacy brand at many minimum we are engaging.

A lot of the owners right now and a lot of them are very intrigued, but I think in January it will be a great opportunity to introduce ourselves and I think at that point, we will get a better sense of who is going to be transitioning to the smart start platform, yes, and Todd just to add on in terms of kind of timelines and lead flows that we've seen thus far I would say.

David Corak: Yeah. Todd, just to add on in terms of kind of timelines and lead flows that we've seen thus far, I would say we've seen interest across owners across the spectrum of menus, right? We've had people that want to engage with a SmartStop branded location, some that want SmartStop legacy, and some wanna continue on and then learn more about the platform. Overall, the reception from the owners has been positive and definitely curious about the upgrades.

We've seen interest across owners across the spectrum of menus right. So we've had we've had people that want to engage with our smart stop branded locations. Some of them want smart South legacy and some want to continue on and then learn more about the platform. So overall.

The reception from the owners has been has been positive and definitely curious about the upgrades that are that are going to and I will add that obviously, they're running on a separate operating system. We have received a separate data carb and we're about three to four weeks into.

H. Michael Schwartz: I will add that obviously they're running on a separate operating system. We've received a separate data carve, and we're about three to four weeks into being able to provide some similar aspects that we have at SmartStop. That takes a little bit of time. It's probably a 60 to 90 days just from a technology perspective.

Being able to provide some similar aspects that we have at smart stops so that takes a little bit of time, so it's probably.

A 60 to 90 days just from a technology perspective, and lastly, one of the one of the strategies. We had in this transaction as we could actually bring our balance sheet to bear to help our owners and as we mentioned in our opening remarks, we have already closed on one of those transactions in a highly accretive manner.

David Corak: Lastly, you know, one of the strategies we had in this transaction is we could actually bring our balance sheet to bear to help out owners. As we mentioned in our opening remarks, we've already closed on one of those transactions in a highly accretive manner, you know, double digit coupon in a preferred investment. Again, that's servicing our customers from an owner perspective.

Digit coupon in our preferred investment so and again, that's servicing our customers from a from an owner perspective.

Todd Thomas: Okay, great. Thank you.

Okay, great. Thank you.

Operator: Your next question comes from the line of Jonathan Hughes with Raymond James. Your line is open.

Your next question comes from the line of Jonathan Hughes with Raymond James Your line is open.

Jonathan Hughes: Hey, good afternoon. Thanks for the prepared remarks and commentary. I appreciate you adding the earnings bridge. I find it very helpful. I think some who see that might be inclined to annualize that implied Q4 figure to get a sense of next year's earnings. What are some considerations we should be aware of as we look at that implied Q4 FFO and think ahead to next year? I mean, I know there's overall seasonality in the business. Is there also maybe some G&A seasonality? Just some more color there would be great. Thanks.

Hey, good afternoon, thanks for the prepared remarks and commentary.

I appreciate you, adding the earnings bridge I find it very helpful. I think some who see that might be inclined to annualize that implied fourth quarter figure to get a sense of next year's earnings but.

What are some considerations, we should be aware of as we as we look at that implied fourth quarter <unk> and think ahead to next year I mean, I know there is overall seasonality in the business is there also maybe some G&A seasonality just some more color there would be great. Thanks.

David Corak: Thanks, Jonathan. It's Corak. I will try not to be long-winded here, I will probably fail because there's a lot to unpack. Yeah, we gave the quarterly bridge, just given the step up in FFO from Q3 to Q4. It's $0.56 for Q4 on the midpoint. I'll note just to be clear that $0.56 is on the Q4 share count, share count of about 59.2 million shares, not the full year weighted average share count of 51 million shares. That $0.56, is that a good run rate into 2026, to your question? I'll try to answer that as best I can without going into actual guidance, which we will give in February.

Thanks, Jonathan its core.

I will try not to be long winded here, but I will probably fail plasmon tax. So yes, we gave the quarterly bridge just given the step up in <unk> from <unk> to <unk> 56.

For <unk> on the midpoint I'll note just just to be clear that that 56 is on the <unk> share share count of about 50 to $59 2 million shares not the full year weighted average share count of 51 million shares. So thats 56 is that a good run rate into 2026 to your question.

And I'll try to answer that as best I can without doing an actual guidance, which we will give in February. So <unk> is the first quarter that reflects all of the various financing activities that we've done this year.

David Corak: Q4 is the first quarter that reflects all of the various financing activities that we've done this year, from the IPO to the Maple bonds, to the JV refi, to the private placement coupon step down. It's not quite a full year of the JV, but that's the least impactful piece there. From a financing standpoint, it's a pretty darn good run rate, right? From a G&A standpoint, the implied guide for Q4 is about $7 million of clean G&A. That Q3 number was $9 million. In addition to the $825,000 of performance units which all hit in Q3, there's some seasonality in G&A whereby Q4 is naturally less than Q3.

IPO to the Maple bonds to the JV refi to the private placement coupon step down it is not quite a full year of the JV, but that's the least impactful piece there. So from a financing standpoint, it's a pretty darn good run rate right from a G&A standpoint.

The implied guide for <unk> was about $7 million of clean G&A.

<unk> number was $9 million. So in addition to the 825 K of performance units, which all hit in the third quarter. There is some seasonality in G&A, whereby <unk> is naturally less than three Kim my point being that $7 million is probably not the right number but also $9 million was probably not the right number.

David Corak: My point being that $7 million is probably not the right number, but also $9 million is probably not the right number, so somewhere in the middle. Those are the two, you know, sort of pieces I would call out on that front. You know, everything else is sort of, you know, an assumption into next year.

So somewhere in the middle those are the two sort of pieces I would call out on that front.

Els is sort of.

Sumption into next year.

David Corak: You know, I don't wanna get in the same store necessarily, just given the fact that, you know, we'll guide to that on as we get into February. For the non-same store pool, right, we have 28 properties and another 10 that are in the JV. The non-same store properties are obviously classified as such because they're non-stabilized, and/or they're recent acquisitions or both. Inherently in those, we would expect the NOI generated by the properties to be higher next year, offset of course by the property with the industrial tenant that we discussed. On the JVs, you know, 4 of those 10 properties are non-stabilized. 6 that are stabilized are putting up better NOI growth than the same store GTA properties.

And so I don't want to get in the same store and necessarily just given the fact that we'll guide to that.

As we get into February but for the non same store pool right. We have 28 properties and another 10 that are in the JV. The non same store properties are obviously classified as such because they are non stabilized.

<unk> recent acquisitions were both inherently and those we would expect the NOI generated by the property has to be higher next year offset of course, a lot of property with the industrial tenant that we discussed on.

The Jv's four of those 10 properties are non stabilized.

Six that are stabilized theyre, putting up better NOI growth.

Same store GTA properties. So two of those three pools of our properties in theory.

David Corak: Two of those three pools of our properties in theory, would put up better NOI growth than this year. On the 3PM front, the third-party management front, obviously we completed that transaction in October, so the accretion for the full year is not quite recognized. But you know, you pair that and that should be pretty good growth for us. It was an accretive transaction. We still feel really good about the yields that we gave on those numbers. On the managed REIT side, you know, the natural growth in the fees from the revenue growth of those, you know, unstabilized portfolios, paired with potential future AUM growth should benefit us into 2026.

Would put up better NOI growth this year.

On the <unk> front, the third party management front, obviously, we completed that transaction in October so the accretion for the full year is not quite recognized but.

Share of that and that should be pretty good growth for us. It was an accretive transaction, we still feel really good about the yields that we gave on those numbers and then on the managed REIT side the natural growth in the fees from the revenue growth of those stabilized portfolios paired with potential future enrollment growth did benefit us into 2026.

David Corak: A lot there, but those are some of the big pieces I'd point to, Jonathan.

A lot there, but those are those are some of the big pieces I'd point to Jonathan.

Jonathan Hughes: Very helpful. I appreciate it. Just one more from me on just the acquisitions front and guidance for the year there was tightened. Can you talk about how you source investment opportunities? Maybe, you know, what % are brokered versus sourced via relationships? You know, maybe how much do you look at on a monthly basis versus what is acquired, so, you know, effectively like a conversion rate?

Very helpful. I appreciate it just one more from me on the acquisitions front in.

And guidance for the year, there was tightened but can you talk about how you sourced investment opportunities, maybe what percent of brokered versus sourced via relationships.

How much do you look at it on a monthly basis versus what is required so effectively like a conversion rate.

H. Michael Schwartz: Yes, that's a good question. Obviously, you know, we believe we see, I think most acquisitions out there in the US and also Canada. You know, we've got a, you know, team of about six people that are just tearing through, you know, acquisitions on both sides of the overall aggregate border. You know, many acquisitions are not institutional quality. I think they're discarded, you know, from at minimum. I think overall, the acquisition flow and quality has been pretty consistent from our perspective. I think sellers are willing to trade. Not all of them, but they are willing to trade. I think that, it's been evidenced by, you know, our half a billion dollars.

Yes, that's a good question, obviously, we believe we see.

Most acquisitions out there in the U S and also Canada. So we've got a.

Team of about six people that are just carrying through acquisitions on both sides of the overall aggregate border.

Many many acquisitions are not institutional quality I think there are discarded.

From at minimum I think overall the acquisition flow and quality has been pretty consistent from our perspective.

I think sellers are willing to trade not all of them, but they are willing to trade and I think that.

I think it's been evidenced by our half a billion dollars. We found that I think we found the right acquisitions at the right pricing I think at the right time, and so we feel pretty comfortable with respect to.

H. Michael Schwartz: I think we found the right acquisitions at the right pricing, and I think, you know, at the right time. We feel pretty comfortable, you know, with respect to the flow. From where we get these, I mean, we Look, this is my 21st year, so Wayne's been with me 17 years. Between the two of us, you know, we're getting, you know, from the traditional brokers, we're getting traditional from owners, developers, you know, third parties. I mean, we get a lot of calls from a variety of different people that have self-storage properties, they can be on or off market. I think that has been very consistent. Obviously, Bliss in Canada has a tremendous amount of relationships within Canada.

The flow from where we get these I mean, we look we've this is my 20 <unk> year. So Wayne has been with me 17 years. So between the two of US were getting from the traditional brokers, we're getting a traditional from owners developers third parties I mean, we get a lot of calls from a variety of different.

People that have some self storage properties and so they can be on or off market and so I think that that has been very consistent in and obviously bliss and Canada has a tremendous amount of it of relationships within Canada. So she's hearing and seeing all of those deals and starting to.

H. Michael Schwartz: She's hearing and seeing all those deals and starting to, you know, pitch those to us. I think, you know, with respect to kind of a hit rate, I can't say I give you a number from a hit rate. What I can say, the ones we want, there's enough out there that we can transact.

Pitch those to US I think with respect to kind of a hit rate I can't I can't say I give you a number from a hit rate, but what I can say the ones. We want there is enough out there that we can transact.

Jonathan Hughes: All right. That's great. Thank you for the time.

Alright, great. Thanks for the time.

Operator: Your next question comes from the line of Nicholas Yulico with Scotiabank. Your line is open.

Your next.

Comes from the line of Nicholas <unk> with Scotiabank. Your line is open.

[Analyst] (Scotiabank): Hello, this is 51 with Nick. Now as we are getting closer to the end of this year, just trying to understand your framework of thinking about 2026. Kind of what is your base macro expectation for 2026, and how are you thinking about moving rents and occupancy dynamics kind of in the next 12 months versus the last 12 months?

Hello, This is Victor Friday on with Nick.

As you know.

Getting closer to the end of this year, just trying to understand your framework of <unk>.

Thinking about 2026 kind of what is your <unk>.

<unk>.

Expectation for 'twenty, if any stakes and how youre thinking about moving rents and occupancy dynamics kind of the next 12 months versus last 12 months.

David Corak: Hey, thanks for the question. I will once again be careful here on the 2026 outlook. I think from a macro standpoint, there's a lot at play, both, you know, a lot of moving pieces in the United States and Canada, right? I don't wanna get too bogged down in the macro because honestly, I don't know. With that said, from a storage perspective, there is one thing I do know, and it's that the supply picture in self-storage in the United States is improving, right? The impact from that new supply will be less in 2026 than it will be in 2025.

Hey, Thanks for the question so I will.

Once again be careful here on sort of the 2026 outlook, but I think from a from a macro standpoint, there's a lot at play both a lot of moving pieces, both in the United States and Canada.

So I don't want to get too bogged down in the macro because honestly I don't know.

With that said from a storage perspective there.

There is one thing I do know.

The supply picture in self storage in the United States is improving right and the impact from that new supply will be less in 2026, then it will be in 2025.

David Corak: From the demand side, you know, I think there's a lot of moving pieces, and it's too early to really tell. From the supply side, which is a good half of the total equation, we feel better about 2026 than 2025.

So from the demand side, I think theres, a lot of moving pieces and it's too early to really tell but from the supply side.

It is a good half of the total equation, we feel better about 2006 2025, and I think if you step back also I think that you are seeing additional listings out there listings are up year over year.

H. Michael Schwartz: I think if you step back also, I think that you are seeing additional listings out there. Listings are up year-over-year. You're not seeing things trade. I think you're still probably seeing the prices maybe come down to, you know, 5% to 15%. I think that sets us up for 2026, and that in concert with the reduction in interest rates, I think could create some mobility. I don't wanna overplay that. But, you know, the listings for housing, I think, is a good indicator of future transactions. You're seeing a lot of markets where listings are increasing and people are talking about that. I think, you know, we're cautiously, you know, optimistic, you know, with respect to that.

Youre not seeing things trade I think youre still is probably seeing the prices maybe come down that $5, 10% to 15%, but I think that sets us up for 2026 and that that in concert with the reduction in interest rates I think could create some mobility I don't want to overplay that.

But the listing for housing I think is a good indicator of future transactions and Youre seeing a lot of markets, where listings are increasing and people are talking about that so I think we're cautiously optimistic with respect to that but in addition, I will add that what I'm seeing even with all.

H. Michael Schwartz: In addition, I will add that what I'm seeing, you know, even with all the choppiness we've talked about, you're seeing natural absorption in the storage market. I think that's incredibly important. I know that I'm a broken record on supply, and we've talked about supply, but I think that natural absorption is gonna carry over into 2026.

All the the Choppiness, we've talked about you're seeing natural absorption in the storage market and I think that's incredibly important.

I know that I'm, a broken record on supply and we've talked about supply, but I think that natural absorption is going to carry over into 2026.

[Analyst] (Scotiabank): Understood. A second, small one from me. Now that you've added this third-party managed platform and have access to much more data across several markets, where should we expect to see these first synergies in terms of improved pricing strategies and expense control?

Understood and then the second small one for me.

Now that you've added is third party managed platform and have access to much more data across several markets.

Should we expect to see the first synergies in terms of improved pricing strategies and expense control.

James Barry: Yeah, this is James. I'll jump in on specifically the margin expansion story. We've always said it. Whenever we get to sort of 10 properties or so in an MSA, that's sort of our benchmark for getting to economies of scale. Within the next 12 months, we start to see that margin improvement in those economies of scale start to come in. Clearly, we just closed on this Argus transaction on 1 October. I will note there are 4 more markets that the Argus property overlap tips us into that 10 property mark, right? We were previously at 6, and we've added 4 more as a result of that transaction. Again, it's gonna take, call it a 12-month period before we start to see the economies of scale really chip in there.

Yes. This is James I'll jump in on specifically the margin expansion story I mean, we've always said it whenever we get to sort of 10 properties or so in an MSA, that's sort of our benchmark for getting to economies of scale.

Within the next 12 months, we start to see that real margin improvement in those economies of scale start to come in clearly we just closed on this Argus transaction on October one I will note. There are four more markets that the rguest property overlap tips us into that 10 property Mark great. So we were previously at six and we've added four more.

As a result of that transaction, but again, it's going to take it's going to take call. It a 12 month period before we start to see the economies of scale really chip in there and then from a revenue management perspective, I mean, clearly that's our that's our mousetrap and and our algorithms are continuing to incorporate that data and then further enhance their overall.

James Barry: From a revenue management perspective, I mean, clearly that's our mousetrap, and our algorithms are continuing to incorporate that data and then further enhance their overall pricing synergies to maximize revenue, right? That's an ongoing process, whether it's our data or the newly integrated Argus data as well.

Racing synergies to maximize revenue right and so that's going to be that's an ongoing process, whether it's our data or the newly integrated Argus data as well.

[Analyst] (Scotiabank): Got it. Thank you.

Got it thank you.

Yeah.

Operator: Your next question comes from the line of Juan Sanabria with BMO Capital Markets. Your line is open.

Your next question comes from the line of Juan Sanabria with BMO BMO capital markets. Your line is open.

Robin Hanlon: Thank you. This is Robin Hanlon sitting in for Juan. I was curious on Toronto, what your preliminary thoughts are on the market's performance heading into 2026. If you can provide some data points on expected new supply this year in 2026, specifically for Toronto.

Thank you this is robin handle <unk> sitting in for one.

I was curious on two wrong. So what's your preliminary thoughts on the market's performance heading into 'twenty.

And if you can provide some data points on expected new supply this year and.

Specifically for Toronto.

H. Michael Schwartz: Yeah. Hi, it's Michael Schwartz. Why don't I talk about supply, then I'll kick it over to David to talk about, you know, some of the, you know, KPIs. From a supply perspective, there's been a lot of chatter out there, we've heard it with respect to additional supply in Canada and in Toronto. The answer is yes. We've been very clear in communicating that on previous calls, there is a good amount of supply in Toronto right now. Now, there are a lot of the supply that is from us. We have delivered 7 properties in the GTA in the past 36 months.

Yeah, Hi, it's Michael Schwartz why don't I talk about supply and then I'll kick it over to David had talked about.

Some some of the Kpis.

From a from a supply perspective, theres been a lot of chatter out there and we've heard it with respect to.

Additional supply in Canada, and in Toronto, and the answer is yes, and we've been very clear in communicating that.

Previous calls there is a good amount of supply in Toronto right. Now now there are a lot of the supply that.

Is from US we've delivered seven properties in the GTA in the past 36 months, we have a pipeline of about a dozen identify properties that we'll look to deliver over the next five years.

James Barry: We have a pipeline of about 12 identified properties that we'll look to deliver over the next 5 years, an additional pipeline, you know, behind that. Today, about half of our properties are being impacted by new supply. The square foot under construction is approximately 10% from our estimation of existing stock. Those stats are pretty consistent with what we've been, what we've seen for the past 5 years or so. When we look out and we expect to see that drop to 5% to 6% next year. That said, there are isolated trade areas, as there always will be, particularly where multiple projects are being delivered at once, and we will see, you know, temporary softness.

And then additional pipeline.

And additional pipeline.

Behind that today about half of our properties are being impacted by new supply.

Now the square foot under construction is approximately 10% from our estimation.

The existing stock.

Now those stats are pretty consistent with what we've been what we've seen for the past five years or so, but when we look out and we expect to see that dropped to five 6%.

Next year, and so that said there are isolated trade areas as there always will be particularly where multiple projects are being delivered at once and we will see a temporary softness but we this is not a structural or Toronto.

James Barry: We, this is not a structural or Toronto wide issue. For example, Leaside, which is one of the most competitive, I think, markets within the GTA, we have 8 properties in a half mile ring of competition. We're still experiencing very high overall occupancy and $35 plus, you know, rents per square foot. I think the answer is we can compete, you know, specifically from a technology perspective. At scale, the GTA and Canada in general remain dramatically undersupplied relative to population. Urban densification continues. Living spaces are shrinking, and new supply, they face significant barriers. In some areas, the development charges just for the privilege to develop self-storage is approximately $45 a square foot. In a lot of cases, the math simply doesn't support a national regional oversupply narrative.

A wide issue. So for example lease side, which is one of the most competitive I think markets within the GTA, we have eight properties in a half mile ring of competition and we are still experiencing very high overall occupancy and $35 plus rents per square foot.

The answer is we can compete specifically from a technology perspective, so at scale. The GTA in Canada in general remain dramatically under supplied relative to population urban Densification continues living spaces are shrinking.

And new supply they faced significant barriers in some areas. The development charges just for the privilege to develop self storage is approximately $45 a square foot. So in a lot of cases, the math simply doesn't support a national regional oversupply narrative and so we don't think that will be for.

James Barry: We don't think that will be for the foreseeable future. David?

Foreseeable future David So just to talk about some of the metrics in Toronto right now.

David Corak: Just to talk about some of the metrics in Toronto right now. On a constant currency basis, same-store revenue growth was 1.4% in Q3. The comp in Q3 2024 was 2.6%, a much tougher comp than the US, which was actually net. If you look at our joint venture properties that would meet the definition of our same-store pool, they actually did even better at around 5.3% year-over-year revenue growth on a constant currency basis. As we sit here today or at the end of October, the occupancy is 92.5%. That's up 80 basis points year over year. That gap has widened and is actually wider than the States.

On a constant currency basis same store revenue growth was one 4% in the third quarter.

<unk> and <unk> 24, it was two 6% so a much tougher comps than the U S, which was actually net.

If you look at our joint venture properties that would meet the definition of our same store pool, they actually did even better at around five 3% year over year revenue growth on a constant currency basis as we sit here today or at the end of October excuse me.

Occupancy is 92, 5% that's up 80 bps year over year, so that gap.

Has widened.

It's actually wider than the states and then we've added another 20 basis points in the first six to eight.

David Corak: We've added another 20 basis points, you know, in the first six days of November. Move-in rates were down about 9% in October, which was actually better than the States. I think our overall, you know, demand remains solid, right? In our trade areas. I think the platform continues to capture an outsized amount of that demand. Really, we haven't seen, you know, any of the weakness from changes to immigration policy or macro environment. It appears that the recently proposed budget could be a potential, you know, economic catalyst. You know, given our operational advantages and everything I just said, our thesis on Canada and the GTA, you know, remains unchanged.

November.

Move in rates were down about 9% in October which was actually better than the states I think our overall demand remains solid.

In our trade areas I think the platform continues to capture an outsized amount of that demand.

And really we haven't seen the weakness from changes to immigration policy or macro environment and it appears that the recently proposed budget could be a potential economic catalyst. So given given our operational advantages and everything I just said our thesis on Canada in the GTA remains unchanged.

Robin Hanlon: Just curious if it's impacting your thoughts on deploying capital for the SmartCentres JV, if you'd like to take that elsewhere, or just curious on your thoughts here.

Just curious is it impacting on the balloon capital food smoking with Didi, if you'd like to think what else War just curious when the pulp mill.

David Corak: Can you repeat that? You were a little choppy there.

Can you repeat that you were a little choppy there.

Robin Hanlon: I was just curious, on the, if that changes your view on deploying capital through the SmartCentres JV, if you're thinking about taking some of that capital deployment in other markets.

I was just curious.

If that changes your view on deploying capital through our <unk> JV.

If you're thinking about taking some of that capital deployment in other markets.

H. Michael Schwartz: No, no, I mean, actually, we're leaning into the SmartCentres joint venture. You know, part of the strength of that relationship is their access to their retail platform and a lot of underutilized land within some of their retail that we can leverage up and put a SmartStop Self Storage next to a, you know, a Walmart, next to, you know, a Home Depot. The answer is no. I think, you know, we are interested in expanding, but not at the expense of that joint venture. I think we've talked about that. We believe there's a tremendous opportunity in Canada, and that's why we've moved into developing on the Island of Victoria, Vancouver, Calgary, Edmonton, and Montreal.

No no I mean actually.

Actually we're leaning into the smart centers joint venture.

Part of the strength of that relationship as their access to their retail platform and a lot of <unk>.

Underutilized land within some of their their retail that we can leverage up and put a smart stop self storage next to.

Walmart next too.

Home depot. So the answer is no I think we are interested in expanding but not at the expense of that joint venture I think we've talked about that we believe there is a tremendous opportunity in Canada and Thats why we did we've we've we've moved into developing on the island of Victoria Vancouver.

Calgary, Edmonton, and Montreal, and so I think sitting and building out.

H. Michael Schwartz: I think, you know, sitting and building out, I think one of the nicest aggregate portfolio in the GTA is now going to benefit us with respect to our overall growth path throughout the top 5 metropolitan cities within Canada.

I think one of the one of the nicest aggregate portfolio in the GTA is now going to benefit us with respect to our overall growth path throughout the top five metropolitan cities within Canada.

Robin Hanlon: Thank you. Adam, we're past the IPO lockup. Can you maybe talk about what the potential recapture rate back into your managed REIT funds has been?

Thank you.

Now that we're past the IPO lockup.

Can you maybe talk about what the potential recapture rate.

Back into your managed REIT funds has been.

H. Michael Schwartz: Well, one of the things when it comes to the kind of the managed REIT platform, we were gonna, you know, talk about this, is that because we switched over to our a new managing broker-dealer, we were effectively about 6 months behind with respect to be able to kind of launch new products. I think at this point, the recapture rate, we're gonna have to look at 2026 from that, from that perspective. Right now we don't have the proper product out in the marketplace right now.

Well one of the things when it comes to the kind of the managed REIT platform. When we were going to talk about this is that because we switched over to our new.

New managing broker dealer, we were effectively about six months behind with respect to be able to kind of launch new products. So I think at this point the recapture rate we're going to have to look at.

2026 from that from that perspective, so right now we don't have the proper product out in the marketplace.

Right now.

Robin Hanlon: Understood. I was just also curious if you can maybe disclose the industrial tenant that went bankrupt?

Understood.

And then I will just also curious if you can maybe disclose the industrial tenants.

Background.

James Barry: Yeah, it's actually we're a little bit limited in what we can say in terms of this particular matter because obviously we had a tenant that broke their lease prematurely, we're, you know, evaluating all of our options as it relates to that contract. At this time, you know, we're not at liberty just to talk about that particular property. Just to note, this is a component of this non-same store asset where the majority of the square footage is self-storage. If you think about it, there is a redevelopment opportunity. It could also just be a re-leasing opportunity. We're looking at all those options.

Yes.

Actually were a little bit limited in what we can say in terms of this particular matter because obviously someone had a tenant that broke their lease pretty materially and so we're.

Evaluating all of our options as it relates to that contract. So at this time.

We're not at Liberty.

To talk about that particular property just to note. This is a this is a component of this non same store assets, where the majority of the square footage is self storage. So if you think about it there is a redevelopment opportunity. It could also just be releasing opportunities. So we're looking at all of those options.

Robin Hanlon: Got it. Thank you.

Got it thank you.

Operator: Your next question comes from Michael Mueller with JP Morgan. Your line is open.

Your next question comes from Michael Mueller with JP Morgan Your line is open.

Michael Mueller: Yeah, hi. I guess for the 2 questions. First, I guess how much higher are the margins in the markets that you were talking about where you have at least 10 properties compared to the others? The second question, just going down the path of adding a JV, I guess what hole do you see that needs to be filled by adding a JV or that you can fill by adding a JV? Especially, you know, because it could, I guess, increase optically the complexity to the story overall. I guess, how do you think about that trade-off?

Yeah, Hi, I guess for the two questions.

First I guess, how much higher are the margins in the markets that you were talking about where you have at least 10 properties compared to the others.

And then the second question.

Just going down the path of adding a JV.

Guess, what would hold do you see that needs to be filled by adding a JV or that you can fill by adding a JV, especially.

It could.

I guess increase optically the complexity to the story overall, so I guess, how do you think about that trade off.

David Corak: I'll start with the margin question. When we look at our markets where we've consistently had 10 plus properties, we're generally about 300 basis points higher than our overall portfolio average. If you look at a market like Toronto, where we have 35 properties in that MSA, we're actually closer to 500 basis points higher in terms of relative to our portfolio average. That just gives you a sense of the scalability of the platform in all of these particular markets.

Yeah, Hey, I'll start with the margin question. So when we look at our markets, where we where we've consistently had 10 plus properties were generally about 300 basis points higher than our overall portfolio average and if you look at a market like Toronto, where we have 35 properties in that in that MSA, we're actually closer.

500 basis points higher in terms of our relative to our portfolio average. So that just gives you a sense of the scalability of the platform in all of these particular markets.

H. Michael Schwartz: From a joint venture to your second question there, Mike, you know, I'll be clear, we already have a joint venture, right, with SmartCentres that is a pure development joint venture. I believe what you are referring to is if we added a, you know, an institutional acquisitions joint venture. I'll speak to that specifically. What we would look for and

Yes, so from a joint venture due to your second question there Mike.

I'll be clear, we already have a joint venture.

<unk> is a pure development joint venture I believe what you're referring to is if we added it in institutional acquisitions joint ventures, So I'll speak to that specifically.

Michael Mueller: Yeah. That makes sense

We look forward.

H. Michael Schwartz: Right. Thanks. What we'd look for there and what, you know, the gap, I guess, we would be trying to fill is, you know, given the size of our company, right? If we wanted to go out and acquire a billion-dollar portfolio, right? I'm making numbers up here. It would be tough for us to do that with the capital that we have right now, right? What if we were able to partner with an institutional joint venture where we were, you know, a smaller part of the overall deal, the LP, you know, and put 5%, 10%, 15%, 20% into a particular joint venture, that deal is all of a sudden a lot more achievable for SmartStop to take down.

Alright, thanks, what we'd look for there and what's the gap I guess, we would be trying to fill is given the size of our company right. If we wanted to go out and acquire a $1 billion portfolio right and I'm, making up numbers up here it would be tough for us to do the capital that we have right now.

But what if we were able to partner with an institutional joint venture, where we were a smaller part of the overall LLP.

And put $5 $10 $15, 20% into a particular joint venture that deal was all of us on a lot more achievable for smart stuff to take down.

H. Michael Schwartz: I think beyond that, you know, portfolios that are maybe not pure stabilized, you know, maybe there's a place in there. I think, you know, the main goal would be to be able to compete for, you know, larger deals and make those deals accretive for SmartStop.

Beyond that portfolios that are maybe not pure stabilized maybe theres a place them there, but I think the.

Main goal would be to be able to compete for larger deals and make it make those deals are accretive for smartphone.

Michael Mueller: Okay. Thank you.

Okay. Thank you.

Operator: Your next question comes from Wes Golladay with Baird. Your line is open.

Your next question comes from Wes Golladay with Baird. Your line is open.

Wes Golladay: Hey, everyone. Question on the revenue management. Sometimes it's early to detect signs of weakness in the economy, just curious if your revenue management is, you know, pivoting more to an occupancy mentality right now.

Hey, everyone. A question on the revenue management, sometimes it's early to detect signs of weakness in the economy and I'm. Just curious if your revenue management is pivoting more to an occupancy.

Mentality right now.

H. Michael Schwartz: I mean, our strategy is currently an occupancy strategy. We think that best positions us for success. More importantly, best positions us in the slow seasons in Q4 and Q1 to maintain as high as occupancies we can, so that as we move into the busy season, that we're only focusing on really, you know, economic, overall, you know, aggregate occupancy. That to us has always been incredibly important. We focus on high occupancy, then we're focusing on, you know, rates and discounts, and then we're focusing on existing customer rent increases. That is kind of has been our process.

I mean, our strategy is currently an occupancy strategy.

We think that best positions us for success more importantly that positions us in the.

<unk> slow seasons in the fourth quarter, the first quarter to maintain as high as Occupancies. We can so that as we move into the busy season that we're only focusing on really economic overall aggregate occupancy and so that to US has always been incredibly important we focus on high occupancy.

Then we're focusing on rates and discounts and then we're focusing on existing customer rent increases that is kind of has been our process.

David Corak: Yeah. If you think about, the occupancy that we posted in the quarter, and then where we are in October, we're sitting here at the end of October, at 92.5% occupancy. That's up 20 basis points year over year, importantly, is up 10 basis points over September, which is a really nice, you know, sequential move for us and really illustrates our strategy that Michael laid out to maintain occupancy into the fall. We're really happy with that.

If you think about the occupancy that we posted in the quarter.

And then where we are in October we're sitting here at the end of October at 92, 5% occupancy that's up 20 basis points year over year, and importantly is up 10 basis points over September which is a really nice sequential move for us and really illustrates our strategy that Michael laid out to maintain occupancy and into the fall. So we're really happy with that.

Wes Golladay: Okay. Maybe a quick follow-up on Q4. Looks like the guidance implies, like, a small uptick in Q4 on same-store revenue. Is that maybe gonna be due to the occupancy build, or will that be, you know, potentially easy comps, rate? What's driving that?

Okay.

A quick follow up on the fourth quarter. It looks like the guidance implies a small uptick in the fourth quarter on a same store revenue is that mainly going to be due to the occupancy build or will that be potentially easy comps right, what's driving that.

David Corak: Just doing the math, I think it actually it's a slight downtick versus the 2.5% and absolute on same-store revenue. It implies a further reduction of OpEx. The OpEx is where the absolute NOI gain would be there. We're assuming same-store revenue goes down in the Q4 versus the Q3 in terms of absolute USD.

I, just just doing the math I think I think it actually it's a slight downtick versus the two 5% in absolute on same store revenue at.

It implies.

A further reduction of Opex. So the opex is where the absolute NOI gain would be there, but we're assuming same store revenue goes down in the in the fourth quarter versus the third quarter in terms of absolute dollars.

Wes Golladay: Okay. Thank you.

Okay. Thank you.

Yeah.

Okay.

Operator: Your last question comes from Eric Luebchow with Wells Fargo. Your line is open.

Your last question comes from Eric <unk> with Wells Fargo. Your line is open.

Eric Luebchow: Great. Thanks for taking the question. I apologize if I missed this earlier, but it seems like your Q3 same store came in largely in line with expectations. Q4, obviously, maybe the expectations are a touch lower. Maybe just touch on some of the moving parts and what you are seeing in October. I know there are some difficult comps in a handful of, you know, hurricane or storm-impacted markets that you are going to lap. Maybe just give us kind of an update on how you are feeling in terms of exit rate going into 2026 versus last quarter.

Great. Thanks for taking the question.

I apologize if I missed this earlier, but it seems like your Q3 same store came in largely in line with expectations Q4, obviously, maybe the expectations are a touch lower so maybe just touch on some of the moving parts and what Youre seeing in October I know there are some difficult comps and a handful of.

Hurricane or storm impacted markets that you're going to lap, but maybe just give us kind of an update on how you are feeling in terms of exit rate going into 'twenty six versus versus last quarter.

David Corak: Hey, thanks. I just went over the October occupancy numbers, so I'm not gonna say that again. You know, we feel really good about where occupancy is sitting, you know, in the 92.5% you know, range. When you think about move-in rates during the quarter, the Q3, James Barry touched on this in his remarks, but they were down about 8.9%. In October, those were down about 18% year over year, as the, you know, building occupancy strategy played out. You pointed this out, but I'll note that October was October 2024, was the most difficult move-in comp of the whole H2 of 2024, so not too surprising to see that down year over year.

Hey, Thanks, So I just went over the October occupancy numbers, so I'm not going to say that again, but we feel really good about where occupancy is sitting in.

In the 92, 5% range.

When you think about move in rates during the quarter the third quarter James touched on this in his remarks, but they were down about eight 9% in <unk>.

October those were down about 18% year over year as the building occupancy strategy played out you pointed this out but I'll note that October was October 2024 was the most difficult moving comp of the whole second half of 2004, so not too surprising to see that down year over year as we moved into November the trends have improved we're still.

David Corak: As we moved into November, the trends have improved. We're still sitting at 92.5% occupancy, which is really, really happy with that. The move-in rates have actually improved sequentially by about 6% or 7% over the October numbers. And in-place rates have actually improved sequentially over the October numbers as well. And we're now up 40 basis points in occupancy year over year. Those stats have improved as we've gone into November. Lastly, to touch on ECRIs as they are, you know, a piece of the whole puzzle, you know, we continue to pull that lever without changes to attrition there. You know, attrition's actually down year over year, as James and Michael mentioned.

Sitting at 92, 5% occupancy, which is really really really happy with that and the move in rates has actually improved sequentially by about six or 7% over the October numbers and in place rates have actually improved sequentially over over the October numbers as well and we're now up 40 basis points in occupancy year over year. So those those stats have improved as we've gone in to note.

Remember.

And then lastly, just to touch on <unk>.

They are a piece of the whole puzzle, we continue to pull that lever without changes to attrition. There attrition is actually down year over year as James Michael mentioned and without getting into specific numbers, because some of thats a bit proprietary.

David Corak: And without getting into specific numbers, because some of that's, you know, a bit proprietary, you know, we gave ECRIs to more tenants in October than new rentals, right? That average ECRI was above the 18% in a really healthy place. We feel really good about all those pieces as we stand here right now. Just to touch, 'cause you brought up the hurricane-impacted markets, just to kind of recap those. Obviously, Asheville was a hurricane-impacted market and as was kind of the Gulf Coast of Florida. We're effectively lapping the occupancy comp on Asheville, but remember, we didn't do any sort of Existing Customer Rate Increases until Q1 2025.

You see a rise of more tenants in October then the new rental spreads and that average <unk> was above the 18% and a really healthy healthy place. So we feel really good about all of those pieces as we stand here right now.

Just to touch because you brought up the hurricane impacted markets just to kind of recap those obviously asheville was a hurricane impact to market and as was kind of the Gulf Coast of Florida, We were effectively lapping the occupancy comp compound national but remember, we didnt do any sort of existing customer rate increases until the first quarter of 2025. So both.

David Corak: Both, the Asheville market as well as, for example, the Tampa market, while we are starting to lap the occupancy comp, where we had elevated occupancy, we are coming in with a pretty healthy head of steam on the rate side.

The actual market as well as the for example, the Tampa market, while we are starting to lap the occupancy.

Comp, where we had elevated occupancy we are coming in with a pretty healthy head of steam on the REIT side.

Eric Luebchow: Got it. Super helpful. Appreciate that. Maybe just one final question. How are you guys thinking about, you know, obviously, move-in rates, there's a little bit of tough pressure in the back half of the year. Part of it is comp-based. We've heard of some of your larger peers kind of leaning in on discounts or promotions, kind of more short-term ways to bring people in the door. How are you seeing that competitive backdrop play out between, you know, discounted move-in rates versus promotions or upfront discounts? What do you think is kind of more effective in keeping that occupancy number up?

Got it Super helpful.

Appreciate that and maybe just one.

One final question I think how are you guys thinking about obviously move in rates there is a little bit of tough pressure in the back half of the year partial part of it is comp base. We've heard of some of your larger peers kind of leaning in on discounts or promotions kind of more short term ways to bring people in the door. How are you seeing that competitive backdrop play out between just kind of.

Move in rates versus promotions or upfront discounts and what do you think is kind of more effective in keeping that occupancy number up.

David Corak: Yeah. If you look at what we've done this year versus last year to date, our concession numbers have been down pretty materially, like in the 20% to 30% range. We were able to drive, you know, rentals without using concessions nearly as much, and that's paid off for us, I think and you see it in the revenue growth numbers and the results overall. As we stand here today, you know, that's less so the case, right? We're utilizing concessions a little bit more than we were, you know, in Q3, especially as compared to last year, but not drastically differently.

Yes. So if you look at what we've done this year versus last year year to date, our concession numbers have been down pretty materially like in the 20% to 30% range.

So we were able to drive.

Rentals without using concessions nearly as much and thats paid off for US I think and you see it in the revenue growth numbers and the results overall as we stand here today.

Thats less so the case right.

Utilizing concessions a little bit more than we were.

In the third quarter, especially as compared to last year, but but not not drastically differently. So.

David Corak: You know, I'd say we're utilizing all of our tools to drive rentals right now. The one thing I would point out is that from a marketing spend perspective, we've been, you know, not utilizing that nearly as much as we were last year. I mean, in the Q2, I think we were negative 4% or 5%. In this quarter, the Q3, we were only up like 1.5% or 1.8%, something like that. Not having to spend a lot to drive rentals.

I'd say, we're utilizing all of our tools to drive rentals right now the one thing I would point out is that from a marketing spend perspective.

We are not utilizing that nearly as much as we were last year I mean in the second quarter I think we were at negative 45% and in this quarter. The third quarter. We were only up like 151, 8% something like that so not having to spend a lot to drive rentals.

Eric Luebchow: Great. Thank you.

David Corak: Those rentals, for what it's worth, were up, you know, 3% in Q3 and are up 8% or 9% into October. You know, the strategy is working.

Great. Thank you and the rentals for what it's worth we're up three.

<unk>, 3% in the third quarter and are up 8% eight or 9% and into October so.

The strategy is working.

Eric Luebchow: Thank you.

Thank you.

Yeah.

Operator: Thank you. With no further questions in queue, I'd like to turn the conference back over to Michael Schwartz for closing remarks.

Thank you and with no further questions in queue I'd like to turn the conference back over to Michael Schwartz for closing remarks.

H. Michael Schwartz: Thank you, operator. It's been an amazing seven months as a publicly traded company. We've accomplished a lot in just a short amount of time. We thank our investors, both retail and institution, for their support, and we look forward to the next quarter in 2026. Thank you for your time and interest in SmartStop Self Storage, the smarter way to store. Have a great day.

Thank you operator, it's been amazing first seven months as a publicly traded company. We've accomplished a lot in just a short amount of time, we think our investors both retail and institution for their support and we look forward to the next quarter and 2026. Thank you for your time and interest in smart stop self storage the smarter way to store have a great day.

Operator: This concludes today's conference call. You may now disconnect.

This concludes today's conference call you may now disconnect.

Okay.

Yeah.

Yeah.

Yeah.