SMA Stock Forecast & Price Target

Smartstop Self Storage REIT Inc is projected to experience consistent growth in key financial metrics, including a 2.3% year-over-year increase in self-storage revenue (SSREV) for the third quarter of 2025 and a 2.8% increase for the fourth quarter. The net operating income (SSNOI) is also expected to rise, with growth of 1.2% in 3Q25 and 2.0% in 4Q25, reflecting solid operational performance. Additionally, the company anticipates robust funds from operations per share (FFO/sh) growth, with expectations of 12.3% in 2025 and 16.3% in 2026, indicating a strong outlook for shareholder value and sustainability.

Smartstop Self Storage faces several fundamental challenges that contribute to a negative outlook on its stock. Key risks include potential underperformance in same-store results, which is critical for revenue generation, as well as the possibility of fewer acquisitions and an inability to lower the cost of capital, both necessary for driving future growth. Additionally, macroeconomic uncertainties, including impacts on credit markets and higher supply or promotional pressures, further exacerbate concerns about the company's ability to sustain favorable financial performance and shareholder distributions.