BMO Capital downgraded SmartStop Self Storage Inc. to Market Perform from Outperform on Thursday, citing risks tied to the company’s Canadian exposure.
The analyst set a price target of $38.00 per share, while the stock last traded at $33.96, down 0.24% on the day. The highest analyst target remains $40.00, and the consensus rating stands at 1.64, indicating a strong buy bias.
SmartStop’s second-quarter performance showed resilience in core metrics, with same-store revenue growth of 1.3%, operating expenses declining 3.4%, and net operating income rising 3.7%. Adjusted funds from operations per share increased 17.6% year-over-year to $0.49, supported by a stable 92.5% occupancy rate. Trailing twelve-month revenue growth reached 16.5%, with 2026 revenue projected to rise 17%.
Canada accounts for 9.4% of SmartStop’s net operating income, a factor BMO flagged as a potential headwind amid broader economic uncertainty. The self-storage sector declined 1.3% over the prior three months, underperforming a 3.2% gain in the broader REIT index.
BMO raised its 2026 same-store revenue growth projection by 30 basis points and net operating income growth by 60 basis points. FFO estimates were adjusted 10 basis points above market expectations and 20 basis points above REIT guidelines, reflecting improved operational momentum despite the downgrade.
