BUZZ - SmartStop Self Storage REIT pulls back from all-time highs after nearly $302 million stock offering

November 10 - ** Prior to Tuesday's market open, SmartStop Self Storage REIT (SMA.N) shares fell 5% to $37.70 after the company announced the pricing of a follow-on offering overnight

** On Monday evening, SMA announced (link) an offering of 8.15 million shares at $37 per share, raising approximately $301.6 million, which includes a portion for forward sales

** The offering size was increased from 7 million shares, and the pricing represents a 6.8% discount to its latest trade; on Monday, the stock rose 2% to $39.69, marking its highest closing price since its 2025 IPO

** The company has entered into forward sale agreements with affiliates of JPMorgan and Wells Fargo

** SMA stated that after settlement of the agreements (expected no later than September 30, 2028), it plans to use the net proceeds for investment in a Canadian joint venture fund and ongoing acquisitions, to repay credit lines and Canadian term loans, and for other purposes

** The company, based in Ladera Ranch, California, went public in April 2025 through an $810 million initial public offering (IPO) (link) at $30 per share and currently has about 55.37 million shares outstanding

** JPMorgan, Wells Fargo, KeyBanc, BMO, and Truist Securities are acting as joint bookrunners for this offering

** As of Monday, SMA shares had risen 21% over the past month

** According to LSEG data, the average rating from 11 analysts is "buy," with a median target price of $37 per share

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