Investment Opportunity

Overview

Offering Highlights

  • Real estate investment trust (REIT) structure
  • Focus is on income-producing self storage properties
  • Allows capitalization on a fragmented industry
  • Anticipate acquisition leverage less than 50%(1) 
  • Provides regional diversification
  • Structured as a long-term investment strategy
  • Allows distribution reinvestment plan
  • Inflation hedge(1) 
  • Preservation of capital(1)
     

Investor Suitability

We have established suitability standards for an initial purchaser or subsequent transferee of our shares. These suitability standards require that a purchaser of shares must have, excluding the value of a purchaser’s home, furnishings and automobiles, either:

  • a net worth of at least $250,000; or
  • a gross annual income of at least $70,000 and a net worth of at least $70,000.

Certain jurisdictions may have different suitability requirements, and you should review the prospectus for additional specific state information. Given the long-term nature of an investment in our shares, our investment objectives and the relative illiquidity of our shares, our suitability standards are intended to help ensure that shares of our common stock are an appropriate investment for those of you who become investors.

Investment Objectives

Our primary investment objectives are to:

  • invest in income-producing real property in a manner that allows us to qualify as a REIT for federal income tax purposes;
  • provide regular cash distributions to our stockholders;
  • preserve and protect your invested capital; and
  • achieve appreciation in the value of our properties over the long term.
  • We cannot assure you that we will attain these primary investment objectives.
     

REIT Investment

  • Maximum offering size: $1 billion shares of our common stock
    - Plus an additional $95,000,000 shares in the distribution reinvestment plan
  • Price per share: $10.79 per share
    - approximately $10.25 per share for the distribution reinvestment plan
  • Minimum investment: $1,000; $2,500(2)
    - Certain states may require different minimums – see prospectus for details 
  • Asset Class: self storage
    - Properties that offer do-it-yourself, month-to-month storage space rental for personal or business use
  • Distribution payment schedule: monthly
  • Monthly automatic investment plan (not available in Alabama and Ohio)
  • Exit Strategy: list, liquidate or merge

Distribution Reinvestment Plan*

Under our distribution reinvestment plan (DRP), you may reinvest the distributions you receive in additional shares of our common stock. The purchase price per share under our DRP will be 95% of the per share offering price. No sales commissions or dealer manager fees will be paid on shares sold under the distribution reinvestment plan. If you participate in the DRP, you will not receive the cash from your distributions, other than special distributions that are designated by our board of directors. As a result, you may have a tax liability with respect to your share of our taxable income, but you will not receive cash distributions to pay such liability. We may terminate the DRP at our discretion at any time upon ten days prior written notice to you.

Share Redemption Program*

Our board of directors has adopted a share redemption program that enables our stockholders to sell their shares back to us in limited circumstances. Our share redemption program permits you to submit your shares for redemption after you have held them for at least one year, subject to the significant conditions and limitations described below.

There are several restrictions on your ability to sell your shares to us under our share redemption program. You generally have to hold your shares for one year before submitting your shares for redemption under the program; however, we may waive the one-year holding period in the event of the death, commitment to a long-term care facility, qualifying disability or bankruptcy of a stockholder. In addition, we will limit the number of shares redeemed pursuant to our share redemption program as follows: (1) during any calendar year, we will not redeem in excess of 5% of the weighted average number of shares outstanding during the prior calendar year; and (2) funding for the redemption of shares will be limited to the proceeds we receive from the sale of shares under our DRP. These limits may prevent us from accommodating all requests made in any year. If we are unable to purchase all shares presented for redemption in any quarter, based upon insufficient proceeds from our DRP and the limit on the number of shares we may redeem during any calendar year, we will attempt to honor redemption requests as follows (and in the following order of priority): (1) redemptions upon the death or disability of a stockholder (or pro rata if less than all of such death or disability redemption requests can be satisfied); and (2) pro rata as to all other redemption requests.  

During the term of this offering, and subject to certain provisions described in the “Description of Shares — Share Redemption Program” section of the prospectus, the redemption price per share, or Redemption Amount, will depend on the length of time you have held such shares as follows:

90.0% of the Redemption Amount after one year from the purchase date;
92.5% of the Redemption Amount after two years from the purchase date;
95.0% of the Redemption Amount after three years from the purchase date; and
100% of the Redemption Amount after four years from the purchase date.

The Redemption Amount shall equal the lesser of the amount you paid for your shares or the price per share in the current offering, as described in more detail in the “Description of Shares — Share Redemption Program” section of the prospectus, as amended.

(1) No assurance that this objective will be met
(2) In the states of Minnesota, New Jersey, New York and North Carolina except for IRA investments. 
* Effective as of March 28, 2012
 

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This website is neither an offer to sell nor the solicitation of an offer to buy any security. Only the prospectus can make such an offer. Therefore, a copy of the prospectus must be made available to you in connection with the offering. This advertising material must be read in conjunction with the prospectus in order to understand fully all of the implications and risks of the offering of securities to which it relates. Because it is a summary, it may not contain all of the information that is important to you. To understand the Strategic Storage Trust offering fully, you should read the entire prospectus and Risk Factors carefully, including the “Questions and Answers About this Offering” and “Risk Factors” sections and the financial statements, before making a decision to invest in our shares. Some of the more significant risks include the following: the “blind pool” nature of the offering; our accumulated deficit; absence of public market for the shares and lack of liquidity; we have paid distributions from sources other than cash flows from operations and may continue to do so; dependence on our advisor and its affiliates to select investments and conduct our operations; our board’s ability to change our investment objectives; our payment of substantial fees and expenses to our advisor and its affiliates; conflicts of interest among us and our sponsor and its affiliates; less diversification if we raise substantially less than the maximum offering; we may fail to remain qualified as a REIT; and we may incur substantial debt. We cannot assure you that we will achieve any of our investment objectives. No offering is made to New York residents except by a prospectus filed with the Department of Law of the State of New York. The Attorney General of the State of New York has not passed or endorsed the merits of the offering. Use of this website is subject to its Terms and Conditions and Privacy Policy.