XML 60 R24.htm IDEA: XBRL DOCUMENT
v3.23.4

Summary of Significant Accounting Policies (Tables) | 9 Months Ended | 12 Months Ended
--- | --- | ---
Sep. 30, 2023 | Dec. 31, 2022
Accounting Policies [Abstract] |  |
Estimated Useful Lives used to Depreciate Real Property Assets | Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows:
Description |  | Standard Depreciable Life
Land |  | Not Depreciated
Buildings |  | 30-40 years
Site Improvements |  | 7-10 years
| Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows:
Description |  | Standard Depreciable Life
Land |  | Not Depreciated
Buildings |  | 30-40 years
Site Improvements |  | 7-10 years
Summary of Fixed Rate Notes Payable | The table below summarizes the carrying amounts and fair values of financial instruments that are not carried at fair value as of September 30, 2023 and December 31, 2022. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of our fixed and variable rate debt was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities (categorized within Level 2 of the fair value hierarchy). The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. As of September 30, 2023 and December 31, 2022, we believe the carrying amounts of our variable rate debt are reasonably estimated at their notional amounts as there have been minimal changes to the fixed spread portion of interest rates for similar loans observed in the market, and as the variable portion of our interest rates fluctuate with the associated market indices.
|  | September 30, 2023 |  |  | December 31, 2022 |
|  | Fair Value |  |  | Carrying Value |  |  | Fair Value |  |  | Carrying Value |
Fixed Rate Secured Debt |  | $ | 398,500,000 |  |  | $ | 440,716,667 |  |  | $ | 410,600,000 |  |  | $ | 442,672,020 |
| The table below summarizes the carrying amounts and fair values of financial instruments that are not carried at fair value as of December 31, 2022 and 2021 . The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of our fixed and variable rate debt was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities (categorized within Level 2 of the fair value hierarchy). The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. As of December 31, 2022 and 2021 , we believe the carrying amounts of our variable rate debt are reasonably estimated at their notional amounts as there have been minimal changes to the fixed spread portion of interest rates for similar loans observed in the market, and as the variable portion of our interest rates fluctuate with the associated market indices.
|  | December 31, 2022 |  |  | December 31, 2021 |
|  | Fair Value |  |  | Carrying Value |  |  | Fair Value |  |  | Carrying Value |
Fixed Rate Secured Debt |  | $ | 410,600,000 |  |  | $ | 442,672,020 |  |  | $ | 353,600,000 |  |  | $ | 340,967,113 |
Schedule of Computation of Earnings Per Common Share | The computation of earnings per common share is as follows for the periods presented:
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Net income |  | $ | 2,978,726 |  |  | $ | 2,246,524 |  |  | $ | 9,290,680 |  |  | $ | 19,529,105 |
Net income attributable to noncontrolling interests |  |  | (463,844 | ) |  |  | (366,047 | ) |  |  | (1,573,727 | ) |  |  | (2,528,010 | )
Net income attributable to SmartStop Self Storage REIT, Inc. |  |  | 2,514,882 |  |  |  | 1,880,477 |  |  |  | 7,716,953 |  |  |  | 17,001,095 |
Less: Distributions to preferred stockholders |  |  | (3,150,685 | ) |  |  | (3,150,684 | ) |  |  | (9,349,315 | ) |  |  | (9,349,315 | )
Less: Distributions to participating securities |  |  | (92,813 | ) |  |  | (72,260 | ) |  |  | (276,041 | ) |  |  | (213,535 | )
Net income (loss) attributable to common stockholders for basic computations: |  |  | (728,616 | ) |  |  | (1,342,467 | ) |  |  | (1,908,403 | ) |  |  | 7,438,245 |
Net income (loss) attributable to common stockholders for diluted computations: |  | $ | (728,616 | ) |  | $ | (1,342,467 | ) |  | $ | (1,908,403 | ) |  | $ | 7,438,245 |
Weighted average Class A and Class T shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average number of Class A and Class T shares outstanding- basic |  |  | 96,837,584 |  |  |  | 96,786,669 |  |  |  | 96,824,500 |  |  |  | 90,305,337 |
Unvested LTIP Units |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Unvested restricted stock awards |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 120,328 |
Average number of Class A and Class T shares outstanding- diluted |  |  | 96,837,584 |  |  |  | 96,786,669 |  |  |  | 96,824,500 |  |  |  | 90,425,665 |
Earnings per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (0.01 | ) |  | $ | (0.01 | ) |  | $ | (0.02 | ) |  | $ | 0.08 |
Diluted |  | $ | (0.01 | ) |  | $ | (0.01 | ) |  | $ | (0.02 | ) |  | $ | 0.08 |
| The computation of earnings per common share is as follows for the periods presented:
|  | For the Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Net income (loss) |  | $ | 21,669,452 |  |  | $ | (19,564,718 | ) |  | $ | (51,206,803 | )
Net (income) loss attributable to noncontrolling interests |  |  | (2,847,572 | ) |  |  | 2,663,123 |  |  |  | 6,901,931 |
Net income (loss) attributable to SmartStop Self Storage REIT, Inc. |  |  | 18,821,880 |  |  |  | (16,901,595 | ) |  |  | (44,304,872 | )
Less: Distributions to preferred stockholders |  |  | (12,500,000 | ) |  |  | (12,500,000 | ) |  |  | (10,049,522 | )
Less: Distributions to participating securities |  |  | (285,796 | ) |  |  | (246,109 | ) |  |  | (135,836 | )
Net income (loss) attributable to common stockholders - basic: |  |  | 6,036,084 |  |  |  | (29,647,704 | ) |  |  | (54,490,230 | )
Net income (loss) attributable to common stockholders - diluted: |  | $ | 6,036,084 |  |  | $ | (29,647,704 | ) |  | $ | (54,490,230 | )
Weighted average common shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |
Average number of common shares outstanding-basic |  |  | 91,939,172 |  |  |  | 79,438,374 |  |  |  | 59,616,407 |
Unvested LTIP Units |  |  | — |  |  |  | — |  |  |  | — |
Unvested restricted stock awards |  |  | 117,266 |  |  |  | — |  |  |  | — |
Average number of common shares outstanding - diluted |  |  | 92,056,438 |  |  |  | 79,438,374 |  |  |  | 59,616,407 |
Earnings per common share: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.07 |  |  | $ | (0.37 | ) |  | $ | (0.91 | )
Diluted |  | $ | 0.07 |  |  | $ | (0.37 | ) |  | $ | (0.91 | )
Summary of Antidilutive Shares Excluded from Computation of Earnings per Share | The following table presents the weighted average Series A Convertible Preferred Stock, Class A and Class A-1 OP Units, unvested LTIP Units, and unvested restricted stock awards, that were excluded from the computation of diluted earnings per share above as their effect would have been antidilutive for the respective periods, and was calculated using the two-class, treasury stock or if-converted method, as applicable:
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | Equivalent Shares (if converted) |  |  | Equivalent Shares (if converted) |  |  | Equivalent Shares (if converted) |  |  | Equivalent Shares (if converted) |
Series A Convertible Preferred Stock |  |  | 18,761,726 |  |  |  | 18,761,726 |  |  |  | 18,761,726 |  |  |  | 18,761,726 |
Class A and Class A-1 OP Units |  |  | 12,864,174 |  |  |  | 12,131,585 |  |  |  | 12,831,077 |  |  |  | 11,354,513 |
Unvested LTIP Units |  |  | 443,655 |  |  |  | 425,126 |  |  |  | 378,665 |  |  |  | 370,318 |
Unvested restricted stock awards |  |  | 36,200 |  |  |  | 89,190 |  |  |  | 65,121 |  |  |  | — |
|  |  | 32,105,755 |  |  |  | 31,407,627 |  |  |  | 32,036,589 |  |  |  | 30,486,557 |
| The following table presents the weighted average Series A Convertible Preferred Stock, Class A and Class A-1 OP Units, unvested LTIP Units, and unvested restricted stock awards, that were excluded from the computation of diluted earnings per share above as their effect would have been antidilutive for the respective periods, and was calculated using the two-class, treasury stock or if-converted method, as applicable:
|  | For the Year Ended December 31, |
| 2022 |  |  | 2021 |  |  | 2020 |
|  | Equivalent Shares (if converted) |  |  | Equivalent Shares (if converted) |  |  | Equivalent Shares (if converted) |
Class A and Class A-1 OP Units |  |  | 11,667,696 |  |  |  | 10,097,549 |  |  |  | 9,095,029 |
Series A Convertible Preferred Stock |  |  | 18,761,726 |  |  |  | 18,761,726 |  |  |  | 14,917,110 |
LTIP Units |  |  | 392,856 |  |  |  | 179,344 |  |  |  | 46,449 |
Restricted Stock Awards |  |  | — |  |  |  | 105,476 |  |  |  | 81,290 |
|  |  | 30,822,278 |  |  |  | 29,144,095 |  |  |  | 24,139,878 |

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, balances by class of assets, depreciation and depletion expense and method used, including composite depreciation, and accumulated deprecation. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -SubTopic 10 -Topic 360 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482099/360-10-50-1 + Details
Name: | us-gaap_PropertyPlantAndEquipmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) in the future that were not included in the computation of diluted EPS because to do so would increase EPS amounts or decrease loss per share amounts for the period presented, by antidilutive securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482662/260-10-50-1 + Details
Name: | us-gaap_ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information pertaining to carrying amount and estimated fair value of short-term and long-term debt instruments or arrangements, including but not limited to, identification of terms, features, and collateral requirements. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCarryingValuesAndEstimatedFairValuesOfDebtInstrumentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 260 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482662/260-10-50-1 + Details
Name: | us-gaap_ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration