Investment Opportunity

Risk Factors

Please see the prospectus for a complete description of the risks you should consider before buying shares of Strategic Storage Trust, Inc. (SSTI). An investment in shares of SSTI is subject to significant risks. Some of the more significant risks include the following:

  • We have limited established financing sources and we cannot assure you that we will be successful in the marketplace.
  • We have incurred operating losses to date, have an accumulated deficit and our operations will not be profitable in 2012.
  • To date, we have paid a majority of our distributions from sources other than cash flow from operations; therefore, we will have fewer funds available for the acquisition of properties, and our stockholders’ overall return may be reduced.
  • There is currently no public trading market for our shares and there may never be one; therefore, it will likely be difficult for you to sell your shares.
  • In determining our estimated net asset value per share, we primarily relied upon a valuation of our portfolio of properties as of December 31, 2011.  Valuations and appraisals of our properties are estimates of fair value and may not necessarily correspond to realizable value upon the sale of such properties, therefore our estimated net asset value per share may not reflect the amount that would be realized upon a sale of each of our properties.
  • Our share price is primarily based on the estimated per share value of our shares, but also based upon subjective judgments, assumptions and opinions by management, which may or may not turn out to be correct. Therefore, our share price may not reflect the precise amount that might be paid to you for your shares in a market transaction. 
  • Because this is a “blind pool” offering, you will not have the opportunity to evaluate the investments we will make with the proceeds of this offering before you purchase our shares.
  • Our ability to operate profitably will depend upon the ability of our advisor to efficiently manage our day-to-day operations and the ability of our property manager to effectively manage our properties.
  • We do not own or control the intellectual property rights to the “SmartStop® Self Storage” brand and other trademarks and intellectual property used by us in connection with our self storage facilities; therefore, we could potentially lose revenues and incur significant costs if we cease to operate under this brand.
  • Because our president, H. Michael Schwartz, owns a 15% beneficial non-voting equity interest in our dealer manager, you may not have the benefit of an independent review of the prospectus or our company as is customarily performed in underwritten offerings.
  • Our advisor, property manager and their officers and certain of our key personnel will face competing demands relating to their time, and this may cause our operating results to suffer.
  • Our advisor will face conflicts of interest relating to the incentive fee structure under our advisory agreement, which could result in actions that are not necessarily in the long-term best interests of our stockholders.
  • Payment of fees to our advisor and its affiliates will reduce cash available for investment and distribution.
  • Because we are focused on the self storage industry, our rental revenues will be significantly influenced by demand for self storage space generally, and a decrease in such demand would likely have a greater adverse effect on our rental revenues than if we owned a more diversified real estate portfolio.
  • We will depend on our on-site personnel to maximize customer satisfaction at each of our facilities, and any difficulties we encounter in hiring, training and retaining skilled field personnel may adversely affect our rental revenues.
  • We may suffer reduced or delayed revenues for, or have difficulty selling, properties with vacancies.
  • We may not be able to sell our properties at a price equal to, or greater than, the price for which we purchased such properties, which may lead to a decrease in the value of our assets.
  • Adverse economic conditions will negatively affect our returns and profitability.
  • If we breach covenants under our credit facility or our bridge loan with KeyBank National Association, we could be held in default under such loans, which could accelerate our repayment date and materially adversely affect the value of your investment in us. 
  • High interest rates may make it difficult for us to refinance properties, which could reduce the number of properties we can acquire and the amount of cash distributions we can make.
  • Failure to qualify as a REIT would adversely affect our operations and our ability to make distributions, as we would incur additional tax liabilities.
  • You may have tax liability on distributions you elect to reinvest in our common stock.
  • There are special considerations that apply to pension or profit-sharing trusts or IRAs investing in our shares which could cause an investment in our company to be a prohibited transaction and could result in additional tax consequences.
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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.