Second-quarter 2026 results showed same-store net operating income growth of 3.7% year over year, outpacing a disclosed peer average of 0.9%, with same-store operating margins expanding 150 basis points to 67.3%. FFO as adjusted per share rose 17.6% to $0.49, driven by a 1.3% increase in same-store revenue and a 3.4% decline in same-store operating expenses. Physical occupancy averaged 92.5%, down 60 basis points from the prior year.
The company revised its 2026 same-store revenue guidance upward to 0.5%โ1.5% from -0.25%โ1.75%, lowered expense guidance to 0.25%โ1.25% from 1.75%โ3.75%, and raised FFO as adjusted per share guidance to $1.98โ$2.02.
Cash flow leverage stood at 6.2x at quarter-end, reflecting organic debt reduction despite continued capital deployment, including $29.7 million for three acquisitions in Spartanburg, South Carolina at an estimated high-5% capitalization rate and $16.3 million in bridge capital at double-digit yields. KBRA noted leverage metrics of 6.3x in Q1 2026 remain near the upper end of SmartStop's 5xโ6x target range, a factor tempering the otherwise satisfactory financial profile that includes loan-to-value in the low-30% range and a $500 million revolving credit facility expiring in 2030 with moderate usage.