Raymond James has raised SmartStop Self Storage REIT (SMA) from Outperform to Strong Buy, lifting its 12‑month price target to $44. This move reflects deepening confidence in SMA’s trajectory, driven by a growing portfolio, strong margin improvement prospects, and dynamic expansion opportunities.
📦 Expansion through Acquisitions: SMA has deployed approximately $180 – $186 million in acquisitions since its NYSE debut, with a growing footprint in high-demand markets like Toronto—a region known for reliable revenue growth.
🚀 Organic Growth Push: Raymond James anticipates a notable boost in same-store revenue, projecting more than a 200‑basis‑point uplift year-over-year, outpacing peers in the self-storage REIT sector.
💰 Margin Leverage: SMA is now positioned to enhance both NOI and EBITDA margins, as operating costs are spread across an enlarged portfolio—delivering efficiencies that strengthen the bottom line.
Dividend Fundamentals:
📊 Dividend Yield: Estimated 2.5% to 3.0%
📊 Payout Basis: Funds From Operations (FFO)
📊 Recent FFO Guidance: $1.84 to $1.92 per share for FY 2025
📊 Dividend Payout Safety: Moderate, well-aligned with current FFO projections
While still scaling its platform, SMA’s dividend remains sustainable under present FFO guidance. Investors should continue to watch acquisition pacing and leverage metrics, but cash distributions are supported by stable rental income and operational efficiency gains.
Raymond James’s upgrade highlights the REIT’s evolution from a growth-focused player into a margin-expanding platform with visible earnings momentum. SMA offers income-focused investors a balanced opportunity—modest yield combined with capital appreciation potential tied to smart, ongoing portfolio growth.