Q3 2025 SSSE Updates
Across the portfolio, Q3 2025 marked a strong period of execution, progress, and value creation as multiple projects reached key milestones and operating performance continued to improve.
Several expansion and value-add projects are now fully constructed, including Ironton, Portland, Sandusky, and Morgantown, positioning these assets for the next phase of lease-up, stabilization, and long-term value growth. In Morgantown, we are actively underwriting equipment financing for the portable unit expansion, a move expected to improve margins, reduce payroll and insurance costs, smooth seasonal cash flow, and elevate the facility to an institutional-quality asset. This expansion also unlocks meaningful tax benefits through Section 179 depreciation.
Ironton delivered its strongest quarter on record, with occupancy reaching 75% and quarterly revenue climbing to $102,845—up both quarter-over-quarter and year-over-year. Despite a temporary slowdown tied to a website and marketing transition, the facility still achieved 55 move-ins using organic demand alone, underscoring the strength of the local market. With construction complete and a new, best-in-class digital marketing strategy launching in Q4, Ironton is well positioned for accelerated growth heading into the spring leasing season.
At Goodrich, nearly all capital improvements have been completed, including repaving, new gate access, upgraded signage, and a full rebrand. These improvements supported steady lease-up during Q3 and repositioned the property as a premium offering, strengthening rent growth and exit potential. Distributions for Goodrich began in Q3 2025, marking an important milestone for investors.
Sandusky reached construction completion with an unexpected upside: work completed after January 19, 2025 now qualifies for 100% bonus depreciation, exceeding original expectations and enhancing projected tax benefits for investors.
On the development side, Lawrenceville made meaningful progress with site grading, utilities, foundations, and steel delivery already underway. Construction loan closing is scheduled for early November, keeping the project firmly on track.
Portfolio-wide, management continues to prioritize strong balance sheets by building cash reserves before initiating or resuming distributions—an approach designed to reduce risk, avoid capital calls, and protect long-term investor returns.
Finally, SSSE Diversified Self Storage Fund I is now live, consolidating all future acquisitions into a single diversified vehicle. The fund targets a 7–8% preferred return, a 17–22% IRR, and meaningful bonus depreciation, with approximately $40 million in deals already under contract, many featuring attractive seller financing.
Overall, Q3 reflected disciplined execution, improving operating performance, and continued progress toward creating durable, institutional-quality self-storage assets across the portfolio.