Strategic Storage Trust VI and Growth Trust III announce $1.2 billion

Strategic Storage Trust VI (SST VI) disclosed that it will acquire Strategic Storage Growth Trust III (SSGT III) in an all‑stock merger, forming a combined self‑storage REIT with an estimated fair‑market value exceeding $1 billion and a portfolio of 37 wholly owned facilities【2】.

Deal structure and asset profile

The merger will transfer SSGT III’s 12 wholly owned self‑storage sites (≈9,215 units, 1.0 m sq ft) and its 50 % stakes in three joint‑venture properties in Canada, plus beneficial interests in three Delaware Statutory Trust programs covering eight facilities (≈5,370 units, 694,800 sq ft) to SST VI【2】. Post‑transaction, the combined entity will hold roughly 29,415 units across 3.2 million net rentable square feet, positioning it among the larger non‑listed self‑storage REITs.

Ownership and strategic rationale

Under the agreement, each SSGT III share converts into one SST VI Class A common share, leaving existing SST VI shareholders with about 59 % of the new company and SSGT III shareholders with roughly 38 %, while ~3 % will be held by other SST VI operating partnership unitholders【2】. Executives argue that the scale‑up will enhance borrowing terms, improve distribution rates for SSGT III investors, and create operational synergies given the overlapping geographic footprint and shared SmartStop branding【2】.

What to watch

• Completion of the merger, subject to customary regulatory approvals and shareholder votes.
• Potential changes to distribution rates for SSGT III shareholders after integration.
• Any adjustments to the combined REIT’s borrowing capacity or capital structure as it leverages the $1.2 bn asset base.

The transaction illustrates how REITs can use all‑stock mergers to achieve scale and operational efficiencies, but the ultimate impact on investor returns will depend on post‑merger integration performance and market conditions.