(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May ~~3, 2019,~~1, 2020, there were ~~3,740,445~~5,345,345 outstanding shares of Class A common stock, ~~2,821,165~~3,952,551 outstanding shares of Class T common stock and ~~711,993~~1,088,386 outstanding shares of Class W common stock of the registrant.

Certain statements contained in this Form 10-Q of Strategic Storage Trust IV, Inc., other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such statements include, in particular, statements about our plans, strategies, and prospects and are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “seek,” “continue,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this report is filed with the Securities and Exchange Commission. We cannot guarantee the accuracy of any such forward-looking statements contained in this Form 10-Q, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Any such forward-looking statements are subject to risks, uncertainties, and other factors and are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, ~~all~~including without limitation changes in the political and economic climate, economic conditions and fiscal imbalances in the United States, and other major developments, including wars, natural disasters, epidemics and pandemics, including the outbreak of ~~which are~~novel coronavirus (COVID-19), military actions, and terrorist attacks. The occurrence or severity of any such event or circumstance is difficult or impossible to predict accurately. To the extent that our assumptions differ from actual results, our ability to meet such forward-looking statements, including our ability to generate positive cash flow from operations and provide distributions to stockholders, and our ability to find suitable investment properties, may be significantly hindered. ~~See~~

For further information regarding risks and uncertainties associated with our business, and important factors that could cause our actual results to vary materially from those expressed or implied in such forward-looking statements, please refer to the ~~risk~~ factors ~~identified in~~listed and described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the “Risk Factors” ~~section~~sections of the documents we file from time to time with the U.S. Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, ~~2018, as filed with the Securities and Exchange Commission,~~2019, as supplemented by the risk factors included in Part II, Item 1A of this Form ~~10-Q, for a discussion of some, although not all, of the risks and uncertainties that could cause actual results to differ materially from those presented in our forward-looking statements.~~10-Q.

The information furnished in the accompanying unaudited consolidated balance sheets and related consolidated statements of operations, comprehensive loss, equity and cash flows reflects all adjustments (consisting of normal and recurring adjustments) that are, in management’s opinion, necessary for a fair and consistent presentation of the aforementioned consolidated financial statements.

The accompanying consolidated financial statements should be read in conjunction with the notes to our consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this report on Form 10-Q. The accompanying consolidated financial statements should also be read in conjunction with our consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019. Our results of operations for the three months ended March 31, ~~2019~~2020 are not necessarily indicative of the operating results expected for the full year.

	March 31, 2019 (Unaudited)			December 31, 2018			March 31, 2020 (Unaudited)			December 31, 2019
ASSETS
Real estate facilities:
Land	$	40,468,823		$	26,485,823		$	54,847,927		$	53,834,093
Buildings		128,598,309			103,015,323			213,103,334			195,950,218
Site improvements		9,358,932			6,478,932			11,806,231			11,597,977
		178,426,064			135,980,078			279,757,492			261,382,288
Accumulated depreciation		(2,814,290	)		(1,769,436	)		(8,585,153	)		(6,742,793	)
								271,172,339			254,639,495
Construction in process								612,681			608,203
Real estate facilities, net		175,611,774			134,210,642			271,785,020			255,247,698
Cash and cash equivalents		12,167,509			15,672,258			37,424,963			5,637,176
Restricted cash		27,192			123,182			277,272			128,177
Investments in unconsolidated real estate ventures								14,790,885			15,116,195
Other assets, net		11,425,934			7,778,605			3,913,870			7,500,324
Debt issuance costs, net of accumulated amortization								1,144,942			1,390,126
Intangible assets, net of accumulated amortization		5,302,846			4,158,073			2,189,298			3,449,999
Total assets	$	204,535,255		$	161,942,760		$	331,526,250		$	288,469,695
LIABILITIES AND EQUITY
Secured debt, net	$	69,894,057		$	63,777,861		$	142,382,219		$	109,105,977
Accounts payable and accrued liabilities		2,124,630			3,027,701			3,589,123			4,671,610
Due to affiliates		3,105,473			1,720,633			4,016,199			3,740,446
Distributions payable		795,064			603,497			1,252,315			1,139,137
Total liabilities		75,919,224			69,129,692			151,239,856			118,657,170
Commitments and contingencies (Note 6)
Commitments and contingencies (Note 7)
Redeemable common stock		2,844,301			2,093,989			7,466,785			5,793,896
Equity:
Strategic Storage Trust IV, Inc. equity:
Preferred Stock, $0.001 par value; 200,000,000 shares authorized; none issued and outstanding at March 31, 2019 and December 31, 2018		—			—
Class A Common stock, $0.001 par value; 315,000,000 shares authorized; 3,539,987 and 2,962,849 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively		3,540			2,964
Class T Common stock, $0.001 par value; 315,000,000 shares authorized; 2,549,104 and 1,570,411 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively		2,549			1,570
Class W Common stock, $0.001 par value; 70,000,000 shares authorized; 633,641 and 353,991 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively		634			354
Preferred Stock, $0.001 par value; 200,000,000 shares authorized; NaN issued and outstanding at March 31, 2020 and December 31, 2019								—			—
Class A Common stock, $0.001 par value; 315,000,000 shares authorized; 5,249,994 and 4,756,969 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively								5,250			4,757
Class T Common stock, $0.001 par value; 315,000,000 shares authorized; 3,873,655 and 3,627,582 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively								3,874			3,628
Class W Common stock, $0.001 par value; 70,000,000 shares authorized; 1,079,182 and 978,115 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively								1,079			978
Additional paid-in capital		142,217,673			102,710,956			213,666,177			196,355,036
Distributions		(8,151,615	)		(6,106,597	)		(20,722,132	)		(17,155,027	)
Accumulated deficit		(8,351,765	)		(5,939,040	)		(19,075,815	)		(15,496,271	)
Accumulated other comprehensive loss		(87,622	)		(96,670	)
Accumulated other comprehensive (loss) income								(1,172,320	)		185,373
Total Strategic Storage Trust IV, Inc. equity		125,633,394			90,573,537			172,706,113			163,898,474
Noncontrolling interests in our Operating Partnership		138,336			145,542			113,496			120,155
Total equity		125,771,730			90,719,079			172,819,609			164,018,629
Total liabilities and equity	$	204,535,255		$	161,942,760		$	331,526,250		$	288,469,695

	Three Months Ended						Three Months Ended March 31,
	March 31, 2019			March 31, 2018			2020			2019
Revenues:
Self storage rental revenue	$	3,437,208		$	357,248		$	5,187,683		$	3,437,208
Ancillary operating revenue		21,920		856				46,506			21,920
Total revenues		3,459,128			358,104			5,234,189			3,459,128
Operating expenses:
Property operating expenses		1,139,089			128,615			2,209,164			1,139,089
Property operating expenses – affiliates		597,985			57,755			1,110,104			597,985
General and administrative		473,876			295,573			672,657			473,876
Depreciation		1,061,388			97,834			1,881,712			1,061,388
Intangible amortization expense		1,115,227			102,233			1,260,700			1,115,227
Acquisition expense – affiliates		210,822			120,092			150,058			210,822
Other property acquisition expenses		181,444			149,924			34,957			181,444
Total operating expenses		4,779,831			952,026			7,319,352			4,779,831
Operating loss		(1,320,703	)		(593,922	)		(2,085,163	)		(1,320,703	)
Other income (expense):
Interest expense		(853,808	)		-			(998,735	)		(853,808	)
Interest expense – debt issuance costs		(244,314	)		-			(503,387	)		(244,314	)
Other		2,319			25,175			4,535			2,319
Net loss		(2,416,506	)		(568,747	)		(3,582,750	)		(2,416,506	)
Net loss attributable to the noncontrolling interests in our Operating Partnership		3,781			2,280			3,206			3,781
Net loss attributable to Strategic Storage Trust IV, Inc. common stockholders	$	(2,412,725	)	$	(566,467	)	$	(3,579,544	)	$	(2,412,725	)
Net loss per Class A share—basic and diluted	$	(0.43	)	$	(0.26	)	$	(0.36	)	$	(0.43	)
Net loss per Class T share—basic and diluted	$	(0.43	)	$	(0.26	)	$	(0.36	)	$	(0.43	)
Net loss per Class W share—basic and diluted	$	(0.43	)	$	(0.26	)	$	(0.36	)	$	(0.43	)
Weighted average Class A shares outstanding—basic and diluted		3,228,935			1,491,499			5,026,508			3,228,935
Weighted average Class T shares outstanding—basic and diluted		1,937,175			539,895			3,757,064			1,937,175
Weighted average Class W shares outstanding—basic and diluted		473,368			134,872			1,036,303			473,368

	Three Months Ended						Three Months Ended March 31,
	March 31, 2019			March 31, 2018			2020			2019
Net loss	$	(2,416,506	)	$	(568,747	)	$	(3,582,750	)	$	(2,416,506	)
Other comprehensive loss:
Foreign currency translation adjustments		9,048			(13,371	)		(1,357,693	)		9,048
Comprehensive loss		(2,407,458	)		(582,118	)		(4,940,443	)		(2,407,458	)
Comprehensive loss attributable to noncontrolling interests:
Comprehensive loss attributable to the noncontrolling interests in our Operating Partnership		3,768			54			4,401			3,768
Comprehensive loss attributable to Strategic Storage Trust IV, Inc. common stockholders	$	(2,403,690	)	$	(582,064	)	$	(4,936,042	)	$	(2,403,690	)

	Common Stock																																						Common Stock																														Total
	Class A						Class T				Class W																												Class A						Class T						Class W															Accumulated			Strategic			Noncontrolling
	Number of Shares			Common Stock Par Value			Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Additional Paid-in Capital			Distributions			Accumulated Deficit			Accumulated Other Comprehensive Loss			Total Strategic Storage Trust IV, Inc. Equity			Noncontrolling Interests in our Operating Partnership			Total Equity			Redeemable Common Stock
Balance as of December 31, 2017		1,253,576		$	1,254			426,228	$	426		110,646	$	111	$	36,653,000		$	(1,079,785	)	$	(1,230,755	)	$	—		$	34,344,251		$	171,100		$	34,515,351		$	183,420
Gross proceeds from issuance of common stock		419,205			419			214,459		215		42,801		42		16,606,278			—			—			—			16,606,954			—			16,606,954			—
Offering costs		—			—			—		—		—		—		(1,850,357	)		—			—			—			(1,850,357	)		-			(1,850,357	)		-
Changes to redeemable common stock		—			—			—		—		—		—		(291,645	)		—			—			—			(291,645	)		—			(291,645	)		291,645
Distributions		—			—			—		—		—		—		—			(798,791	)		—			—			(798,791	)		—			(798,791	)		—
Distributions to noncontrolling interests		—			—			—		—		—		—		—			—			—			—			—			(3,425	)		(3,425	)		—
Issuance of shares for distribution reinvestment plan		8,252			8			3,245		3		924		1		291,633			—			—			—			291,645			—			291,645			—
Net loss attributable to Strategic Storage Trust IV, Inc.		—			—			—		—		—		—		—			—			(566,467	)		—			(566,467	)		—			(566,467	)		—
Net loss attributable to the noncontrolling interests in our Operating Partnership		—			—			—		—		—		—		—			—			—			—			—			(2,280	)		(2,280	)		—
Foreign currency translation adjustment		—			—			—		—		—		—		—			—			—			(13,371	)		(13,371	)		—			(13,371	)		—
Balance as of March 31, 2018		1,681,033		$	1,681			643,932	$	644		154,371	$	154	$	51,408,909		$	(1,878,576	)	$	(1,797,222	)	$	(13,371	)	$	47,722,219		$	165,395		$	47,887,614		$	475,065
																																							Number of Shares			Common Stock Par Value			Number of Shares			Common Stock Par Value			Number of Shares			Common Stock Par Value			Additional Paid-in Capital			Distributions			Accumulated Deficit			Other Comprehensive Income (Loss)			Storage Trust IV, Inc. Equity			Interests in our Operating Partnership			Total Equity			Redeemable Common Stock
Balance as of December 31, 2018		2,962,849		$	2,964			1,570,411	$	1,570		353,991	$	354	$	102,710,956		$	(6,106,597	)	$	(5,939,040	)	$	(96,670	)	$	90,573,537		$	145,542		$	90,719,079		$	2,093,989			2,962,849		$	2,964			1,570,411		$	1,570			353,991		$	354		$	102,710,956		$	(6,106,597	)	$	(5,939,040	)	$	(96,670	)	$	90,573,537		$	145,542		$	90,719,079		$	2,093,989
Gross proceeds from issuance of common stock		560,391			560			966,126		966		277,021		277		43,669,267			—			—			—			43,671,070			—			43,671,070			—			560,391			560			966,126			966			277,021			277			43,669,267			—			—			—			43,671,070			—			43,671,070			—
Offering costs		—			—			—		—		—		—		(4,239,678	)		—			—			—			(4,239,678	)		—			(4,239,678	)		—			—			—			—			—			—			—			(4,239,678	)		—			—			—			(4,239,678	)		—			(4,239,678	)		—
Reimbursement of offering costs by Advisor		—			—			—		—		—		—		72,476			—			—			—			72,476			—			72,476			—			—			—			—			—			—			—			72,476			—			—			—			72,476			—			72,476			—
Changes to redeemable common stock		—			—			—		—		—		—		(833,499	)		—			—			—			(833,499	)		—			(833,499	)		833,499			—			—			—			—			—			—			(833,499	)		—			—			—			(833,499	)		—			(833,499	)		833,499
Redemptions of common stock		(3,660	)		(4	)		—		—		—		—		—			—			—			—			(4	)		—			(4	)		(83,187	)		(3,660	)		(4	)		—			—			—			—			—			—			—			—			(4	)		—			(4	)		(83,187	)
Distributions		—			—			—		—		—		—		—			(2,045,018	)		—			—			(2,045,018	)		—			(2,045,018	)		—			—			—			—			—			—			—			—			(2,045,018	)		—			—			(2,045,018	)		—			(2,045,018	)		—
Distributions to noncontrolling interests		—			—			—		—		—		—		—			—			—			—			—			(3,425	)		(3,425	)		—			—			—			—			—			—			—			—			—			—			—			—			(3,425	)		(3,425	)		—
Issuance of shares for distribution reinvestment plan		20,407			20			12,567		13		2,629		3		833,463			—			—			—			833,499			—			833,499			—			20,407			20			12,567			13			2,629			3			833,463			—			—			—			833,499			—			833,499			—
Stock based compensation expense		—			—			—		—		—		—		4,688			—			—			—			4,688			—			4,688			—			—			—			—			—			—			—			4,688			—			—			—			4,688			—			4,688			—
Net loss attributable to Strategic Storage Trust IV, Inc.		—			—			—		—		—		—		—			—			(2,412,725	)		—			(2,412,725	)		—			(2,412,725	)		—			—			—			—			—			—			—			—			—			(2,412,725	)		—			(2,412,725	)		—			(2,412,725	)		—
Net loss attributable to the noncontrolling interests in our Operating Partnership		—			—			—		—		—		—		—			—			—			—			—			(3,781	)		(3,781	)		—			—			—			—			—			—			—			—			—			—			—			—			(3,781	)		(3,781	)		—
Foreign currency translation adjustment		—			—			—		—		—		—		—			—			—			9,048			9,048			—			9,048			—			—			—			—			—			—			—			—			—			—			9,048			9,048			—			9,048			—
Balance as of March 31, 2019		3,539,987		$	3,540			2,549,104	$	2,549		633,641	$	634	$	142,217,673		$	(8,151,615	)	$	(8,351,765	)	$	(87,622	)	$	125,633,394		$	138,336		$	125,771,730		$	2,844,301			3,539,987		$	3,540			2,549,104		$	2,549			633,641		$	634		$	142,217,673		$	(8,151,615	)	$	(8,351,765	)	$	(87,622	)	$	125,633,394		$	138,336		$	125,771,730		$	2,844,301

Balance as of December 31, 2019																																								4,756,969		$	4,757			3,627,582		$	3,628			978,115		$	978		$	196,355,036		$	(17,155,027	)	$	(15,496,271	)	$	185,373		$	163,898,474		$	120,155		$	164,018,629		$	5,793,896
Gross proceeds from issuance of common stock																																								477,581			478			223,219			223			98,529			99			19,624,712			—			—			—			19,625,512			—			19,625,512			—
Offering costs																																								—			—			—			—			—			—			(2,345,777	)		—			—			—			(2,345,777	)		—			(2,345,777	)		—
Reimbursement of offering costs by Advisor																																								—			—			—			—			—			—			24,467			—			—			—			24,467			—			24,467			—
Changes to redeemable common stock																																								—			—			—			—			—			—			(1,672,889	)		—			—			—			(1,672,889	)		—			(1,672,889	)		1,672,889
Redemptions of common stock																																								(19,690	)		(20	)		(8,734	)		(9	)		(4,599	)		(5	)		—			—			—			—			(34	)		—			(34	)		—
Distributions																																								—			—			—			—			—			—			—			(3,567,105	)		—			—			(3,567,105	)		—			(3,567,105	)		—
Distributions to noncontrolling interests																																								—			—			—			—			—			—			—			—			—			—			—			(3,453	)		(3,453	)		—
Issuance of shares for distribution reinvestment plan																																								35,134			35			31,588			32			7,137			7			1,672,815			—			—			—			1,672,889			—			1,672,889			—
Stock based compensation expense																																								—			—			—			—			—			—			7,813			—			—			—			7,813			—			7,813			—
Net loss attributable to Strategic Storage Trust IV, Inc.																																								—			—			—			—			—			—			—			—			(3,579,544	)		—			(3,579,544	)		—			(3,579,544	)		—
Net loss attributable to the noncontrolling interests in our Operating Partnership																																								—			—			—			—			—			—			—			—			—			—			—			(3,206	)		(3,206	)		—
Foreign currency translation adjustment																																								—			—			—			—			—			—			—			—			—			(1,357,693	)		(1,357,693	)		—			(1,357,693	)		—
Balance as of March 31, 2020																																								5,249,994		$	5,250			3,873,655		$	3,874			1,079,182		$	1,079		$	213,666,177		$	(20,722,132	)	$	(19,075,815	)	$	(1,172,320	)	$	172,706,113		$	113,496		$	172,819,609		$	7,466,785

	Three Months Ended						Three Months Ended March 31,
	March 31, 2019			March 31, 2018			2020			2019
Cash flows from operating activities:
Net loss	$	(2,416,506	)	$	(568,747	)	$	(3,582,750	)	$	(2,416,506	)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization		2,176,615			200,067			3,142,412			2,176,615
Amortization of debt issuance costs		244,314			-			503,387			244,314
Stock based compensation expense related to issuance of restricted stock		4,688			-			7,813			4,688
Increase (decrease) in cash and cash equivalents from change in assets and liabilities:
Changes in operating assets and liabilities:
Other assets, net		(81,072	)		(75,067	)		(325,290	)		(81,072	)
Accounts payable and accrued liabilities		(503,039	)		196,038			(189,921	)		(503,039	)
Due to affiliates		83,345			(13,724	)		65,171			83,345
Net cash used in operating activities		(491,655	)		(261,433	)		(379,178	)		(491,655	)
Cash flows from investing activities:
Purchase of real estate		(43,165,491	)		(6,865,108	)		(14,263,127	)		(43,165,491	)
Additions to real estate facilities		(140,495	)		-			(735,429	)		(140,495	)
Deposits on acquisitions of real estate		(844,662	)		(1,209,621	)		(175,000	)		(500,000	)
Return of deposit on acquisition of real estate		-			250,000
Investment in joint ventures, net		(4,129,081	)		-
Investments in unconsolidated real estate ventures								(1,369,157	)		(4,179,081	)
Deposits on acquisitions of investments in unconsolidated real estate ventures								—			(344,662	)
Return of preferred equity method investment								—			50,000
Net cash used in investing activities		(48,279,729	)		(7,824,729	)		(16,542,713	)		(48,279,729	)
Cash flows from financing activities:
Proceeds from issuance of revolving secured debt								9,000,000			—
Proceeds from issuance of secured debt		6,000,000			-			78,042,500			6,000,000
Repayment of revolving secured debt								(46,000,000	)		—
Repayment of secured debt								(7,000,000	)		—
Scheduled principal payments on secured debt		(29,527	)		-			(31,466	)		(29,527	)
Debt issuance costs		(98,591	)		-			(355,566	)		(98,591	)
Gross proceeds from issuance of common stock		43,261,870			16,674,701			19,687,733			43,261,870
Offering costs		(2,857,517	)		(1,556,980	)		(1,952,040	)		(2,857,517	)
Redemption of common stock		(82,213	)		-			(747,897	)		(82,213	)
Distributions paid to common stockholders		(1,019,952	)		(419,331	)		(1,781,034	)		(1,019,952	)
Distributions paid to noncontrolling interest in our Operating Partnership		(3,425	)		(4,004	)		(3,457	)		(3,425	)
Net cash provided by financing activities		45,170,645			14,694,386			48,858,773			45,170,645
Net change in cash, cash equivalents and restricted cash		(3,600,739	)		6,608,224			31,936,882			(3,600,739	)
Cash, cash equivalents and restricted cash, beginning of period		15,795,440			21,929,125			5,765,353			15,795,440
Cash, cash equivalents and restricted cash, end of period	$	12,194,701		$	28,537,349		$	37,702,235		$	12,194,701
Supplemental disclosures and non-cash transactions:
Cash paid for interest	$	835,335		$	-		$	998,073		$	835,335
Deposits applied to purchase of real estate	$	1,400,000		$	-		$	750,000		$	1,400,000
Proceeds from issuance of common stock in other assets	$	-		$	130,190
Preferred equity method investment applied to purchase of real estate							$	2,300,000		$	—
Preferred return on preferred equity method investment applied to purchase of real estate							$	255,780		$	—
Additions to real estate facilities included in accounts payable and accrued liabilities							$	183,667		$	—
Proceeds from issuance of common stock in accounts payable and accrued liabilities	$	680,000		$	-		$	275,000		$	680,000
Offering costs included in due to affiliates	$	1,385,376		$	248,034		$	528,843		$	1,385,376
Offering costs included in accounts payable and accrued liabilities	$	47,532		$	131,229		$	196,499		$	47,532
Redemption of common stock in accounts payable and accrued liabilities	$	83,187		$	-		$	—		$	83,187
Distributions payable	$	795,064		$	303,651		$	1,252,315		$	795,064
Issuance of shares pursuant to distribution reinvestment plan	$	833,499		$	291,645		$	1,672,889		$	833,499
Foreign currency translation adjustment	$	9,048		$	(13,371	)	$	1,357,693		$	9,048
Investments in unconsolidated real estate ventures included in accounts payable and accrued expenses							$	377,350		$	—

Strategic Storage Trust IV, Inc., a Maryland corporation (the “Company”), was formed on June 1, 2016 under the Maryland General Corporation Law for the purpose of engaging in the business of investing in self storage facilities. The Company’s year-end is December 31. As used in this report, “we,” “us,” “our” and “Company” refer to Strategic Storage Trust IV, Inc. and each of our subsidiaries.

Prior to June 28, 2019, both we and Strategic Storage Trust II, Inc. (“SST II”) were sponsored by SmartStop Asset Management, LLC (“SAM,” or our “Prior Sponsor”). On June 28, 2019, SST II, and its operating partnership, Strategic Storage Operating Partnership II, L.P., entered into a ~~Delaware limited liability company organized~~series of transactions, agreements, and amendments to its existing agreements and arrangements (such agreements and amendments are referred to collectively as the “Self Administration Transaction”), with our Prior Sponsor, and its affiliates, pursuant to which, effective as of June 28, 2019, SST II acquired the self storage advisory, asset management, property management, investment management, and Tenant Programs (as defined in ~~2013~~Note 6) of SAM, along with certain other assets, including SAM’s sole membership interest in SmartStop Storage Advisors, LLC, which owned all of the membership interests of our advisor and our property manager. Immediately after the Self Administration Transaction, SST II changed its name to SmartStop Self Storage REIT, Inc. (“SmartStop”). As a result of the Self Administration Transaction, SmartStop REIT Advisors, LLC, an indirect subsidiary of SmartStop, became the sponsor (our “Sponsor”)~~, is the sponsor~~ of our Public Offering of shares of our common stock, as described below. Our Sponsor ~~is a company focused on providing real estate advisory, asset management, and property management services. Our Sponsor~~ owns ~~97.5% of the economic interests (and~~ 100% ~~of the voting membership interests)~~ of Strategic Storage Advisor IV, LLC (our “Advisor”) and ~~owns 100% of~~ Strategic Storage Property Management IV, LLC (our “Property Manager”).

We have no0 employees. Our Advisor, a Delaware limited liability company, was formed on May 31, 2016. Our Advisor is responsible for managing our affairs on a day-to-day basis and identifying and making acquisitions and investments on our behalf under the terms of anthe advisory agreement we entered into with our Advisor (our “Advisory Agreement”) on March 3, 2017. ~~The~~A majority of our officers are also officers of our Advisor ~~as well as some of the officers of~~and our ~~Sponsor, are also officers of us.~~Sponsor.

On June 15, 2016, our Advisor purchased 44 shares of our common stock for $1,000 and became our initial stockholder. Our Articles of Incorporation authorized 30,000 shares of common stock with a par value of $0.001. Our Articles of Amendment and Restatement, which were filed with the State Department of Assessments and Taxation of Maryland on January 17, 2017, authorized 700,000,000 shares of common stock with a par value of $0.001, of which 315,000,000 shares are designated as Class A shares, 315,000,000 shares are designated as Class T shares, and 70,000,000 shares are designated as Class W shares, and 200,000,000 shares of preferred stock with a par value of $0.001. Upon the filing of our Articles of Amendment and Restatement, our Advisor’s 44 shares of our common stock were classified as Class A shares. We are offering a maximum of $1.0 billion in common shares for sale to the public (the “Primary Offering”) and $95.0 million in common shares for sale pursuant to our distribution reinvestment plan (collectively, the “Public Offering”).

On January 25, 2017, we sold approximately 360,577 Class A shares for $7.5 million to an institutional account investor pursuant to a private offering transaction (the “Private Offering Transaction” ~~and together with the Public Offering, the “Offerings”~~). Due to the proceeds raised in our Private Offering Transaction, there was not a minimum number of shares we needed to sell before accepting subscriptions for the Primary Offering. On March 17, 2017 (the “Effective Date”), the Securities and Exchange Commission (“SEC”) declared our registration statement effective and we commenced formal operations. As of March 31, ~~2019,~~2020, approximately ~~3.2~~4.9 million Class A shares for gross offering proceeds of approximately ~~$79.2~~$122.2 million, approximately ~~2.5~~3.9 million Class T shares for gross offering proceeds of approximately ~~$61.7~~$93.9 million and approximately ~~0.6~~1.1 million Class W shares for gross offering proceeds of approximately ~~$14.4~~$24.8 million had been sold in the Public Offering. We may continue to sell shares in the Public Offering until the earlier of 180 days after the third anniversary of the effective date of the Public Offering, September 13, 2020, or the effective date of the registration statement for our follow-on offering (SEC Registration No. 333-236176), which we initially filed with the SEC on January 31, 2020. We also reserve the right to terminate the Public Offering at any time. On April 17, 2020, our board of directors approved the suspension of our Primary Offering, effective as of April 30, 2020. See Note 11 – Subsequent Events.

We have invested ~~and intend to continue to invest,~~ the net proceeds from our ~~Offerings~~Private Offering Transaction and the Public Offering primarily in self storage facilities consisting of both income-producing and growth properties located in the United States and Canada. As of March 31, ~~2019,~~2020, we owned 1623 operating self storage properties located in ~~six~~9 states ~~(California,~~(Arizona, California, Florida, Nevada, New Jersey, North Carolina, Texas, Virginia and Washington).

As of March 31, 2020, we owned 50% equity interests in 4 unconsolidated real estate ventures in the Greater Toronto Area that are intended to be developed into self storage facilities, with subsidiaries of SmartCentres Real Estate Investment Trust (“SmartCentres”) owning the other 50% of such entities. In addition, we had entered into 2 other contribution agreements with respect to 2 separate tracts of land in the Greater Toronto Area owned by SmartCentres. For more information, see Note 4.

On June 20, 2019, our board of directors, upon recommendation of our nominating and corporate governance committee, approved an estimated value per share of $22.65 for our Class A shares, Class T shares, and Class W shares based on the estimated value of our assets less the estimated value of our liabilities, or net asset value, divided by the number of shares outstanding on an adjusted fully diluted basis, calculated as of March 31, 2019. As a result of the calculation of our estimated value per share, effective on June 21, 2019, the offering price of Class A shares became $24.89 per share, the offering price of Class T shares became $24.10 per share, and the offering price of Class W shares became $22.65 per share. In addition, shares sold pursuant to our distribution reinvestment plan are now sold at $22.65 per share for Class A, Class T, and Class W shares, effective for distribution payments being paid beginning in July 2019.

Our operating partnership, Strategic Storage Operating Partnership IV, L.P., a Delaware limited partnership (our “Operating Partnership”), was formed on June 2, 2016. On June 15, 2016, our Advisor purchased a limited partnership interest in our Operating Partnership for $200,000 (8,889 partnership units) and on June 15, 2016, we contributed the initial $1,000 capital contribution we received to our Operating Partnership in exchange for the general partner interest. Our Operating Partnership will own, directly or indirectly through one or more special purpose entities, all of the self storage properties that we acquire in the future. As of March 31, ~~2019,~~2020, we owned approximately 99.9% of the common units of limited partnership interests of our Operating Partnership. The remaining approximately 0.1% of the common units are owned by our Advisor.

As the sole general partner of our Operating Partnership, we have the exclusive power to manage and conduct the business of our Operating Partnership. We conduct certain activities through our taxable REIT subsidiary, Strategic Storage TRS IV, Inc., a Delaware corporation (the “TRS”) which was formed on June 2, 2016, and is a wholly owned subsidiary of our Operating Partnership.

Our Property Manager is a Delaware limited liability company which was formed on May 31, 2016 to manage our properties. An affiliate of our ~~Property Manager~~Sponsor owns the rights to the “SmartStop® Self Storage” ~~brand and our~~brand. Our Property Manager derives substantially all of its income from the property management services it performs for us. Our Property Manager may enter into sub-property management agreements with third party management companies and pay part of its management fee to such sub-property manager. Please see Note 56 – Related Party Transactions – Property Management Agreement.

Our dealer manager is Select Capital Corporation, a California corporation (our “Dealer Manager”). On February 10, 2017, the Company executed a dealer manager agreement, as amended (the “Dealer Manager Agreement”), with our Dealer Manager. Our Dealer Manager is responsible for marketing our shares to be offered pursuant to our Primary Offering. Our Prior Sponsor owns, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer Manager. On April 17, 2020, in accordance with the provisions of the Dealer Manager ~~and affiliates of~~Agreement, we provided a 60-day termination notice to our Dealer ~~Manager own a 2.5% non-voting membership interest in our Advisor.~~Manager. See Note 11 – Subsequent Events.

Our Prior Sponsor owns 100% of the membership interests of Strategic Transfer Agent Services, LLC, our transfer agent (our “Transfer Agent”). On May 31, 2018, the Company executed an agreement (the “Transfer Agent Agreement”), with our Transfer Agent to provide transfer agent and registrar services to us that are substantially similar to what a third party transfer agent would provide in the ordinary course of performing its functions as a transfer agent. Our Transfer Agent may retain and supervise third party vendors in its efforts to administer certain services. Please see Note 56 – Related Party Transactions – Transfer Agent Agreement.

As we accept subscriptions for shares of our common stock, we transfer all of the net offering proceeds to our Operating Partnership as capital contributions in exchange for additional units of interest in our Operating Partnership. However, we are deemed to have made capital contributions in the amount of gross proceeds received from investors, and our Operating Partnership is deemed to have simultaneously paid the sales commissions and other costs associated with the Primary Offering. In addition, our Operating Partnership is structured to make distributions with respect to limited partnership units that are equivalent to the distributions made to holders of common stock. Finally, a limited partner in our Operating Partnership may later exchange his or her limited partnership units in our Operating Partnership for shares of our

common stock at any time after one year following the date of issuance of their limited partnership units, subject to certain restrictions outlined in the limited partnership agreement of our Operating Partnership, as amended (the “Operating Partnership Agreement”). Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as it is acting as our Advisor pursuant to our Advisory Agreement.

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC.

Our financial statements, and the financial statements of our Operating Partnership, including its wholly-owned subsidiaries, are consolidated in the accompanying consolidated financial statements. The portion of these entities not wholly-owned by us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated in consolidation.

Current accounting guidance provides a framework for identifying a variable interest entity (“VIE”) and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of a VIE in its consolidated financial statements. In general, a VIE is an entity or other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. Generally, a VIE should be consolidated if a party with an ownership, contractual, or other financial interest in the VIE (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities, and noncontrolling interest at fair value and subsequently account for the VIE as if it were consolidated based on majority voting interest. Our Operating Partnership is deemed to be a VIE and is consolidated by the Company as the primary beneficiary.

As of March 31, ~~2019 and December 31, 2018,~~2020, we had ~~not~~0t entered into any other contracts/interests that would be deemed to be variable interests in VIEs other than our joint ventures with SmartCentres, ~~Real Estate Investment Trust and our preferred equity investment,~~ which are all accounted for under the equity method of accounting. Please see ~~Notes 3 and 9.~~Note 4. Other than the entities noted above, we do not currently have any material relationships with unconsolidated entities or financial partnerships.

Under the equity method, our investments will be stated at cost and adjusted for our share of net earnings or losses and reduced by distributions. Equity in earnings will generally be recognized based on our ownership interest in the earnings of each of the unconsolidated investments.

We account for the noncontrolling interest in our Operating Partnership in accordance with the related accounting guidance. Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partner, our Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company and the limited partner interest is reflected as a noncontrolling interest in the accompanying consolidated balance sheets. The noncontrolling interest shall be attributed its share of income and losses, even if that attribution results in a deficit noncontrolling interest balance.

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. Management will adjust such estimates when facts and circumstances dictate. Actual results could materially differ from those estimates. The most significant estimates made include the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at relative fair value, the determination if certain entities should be consolidated, the evaluation of potential impairment of long-lived assets, and the estimated useful lives of real estate assets and intangibles.

We consider all short-term, highly liquid investments that are readily convertible to cash with a maturity of three months or less at the time of purchase to be cash equivalents.

We may maintain cash and cash equivalents in financial institutions in excess of insured limits, but believe this risk will be mitigated by only investing in or through major financial institutions.

Restricted cash consists primarily of impound reserve accounts for property taxes ~~insurance~~ and capital improvements in connection with the requirements of ~~one~~two of our loan agreements.

We account for acquisitions in accordance with GAAP which requires that we allocate the purchase price of a property to the tangible and intangible assets acquired and the liabilities assumed based on their relative fair values. This guidance requires us to make significant estimates and assumptions, including fair value estimates, which requires the use of significant unobservable inputs, as of the acquisition date.

The value of the tangible assets, consisting of land and buildings, is determined as if vacant. Substantially all of the leases in place at acquired properties are at market rates, as the majority of the leases are month-to-month contracts. We also consider whether in-place, market leases represent an intangible asset. We recorded 0ne and approximately $2.3 ~~million and $5.5~~ million in intangible assets to recognize the value of in-place leases related to our acquisitions during the three months ended March 31, ~~2019~~2020 and ~~the year ended December 31, 2018,~~2019, respectively. We do not expect, nor to date have we recorded, intangible assets for the value of customer relationships because we expect we will not have concentrations of significant customers and the average customer turnover will be fairly frequent.

Allocation of purchase price to acquisitions of facilities are allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size, age, and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values, if available.

Acquisitions ~~of integrated sets of assets and activities~~ that do not meet the definition of a business, as defined under current GAAP, are accounted for as asset acquisitions. During the three months ended March 31, ~~2019~~2020 and ~~2018,~~2019, our acquisitions have not met the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related intangible assets) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. As a result, once an acquisition is deemed probable, transaction costs are capitalized rather than expensed. During the three months ended March 31, ~~2019~~2020 and ~~2018,~~2019, we acquired ~~two~~1 and ~~one~~2 properties, respectively, that did not meet the definition of a business, and we capitalized approximately ~~$65,000~~$25,000 and ~~$15,000,~~$65,000, respectively, of acquisition-related transaction costs.

During the three months ended March 31, ~~2019~~2020 and ~~2018,~~2019, we expensed approximately ~~$392,000~~$0.2 million and ~~$270,000,~~$0.4 million, respectively, of acquisition-related transaction costs that did not meet our capitalization ~~criteria.~~policy during the respective periods.

Management monitors events and changes in circumstances that could indicate that the carrying amounts of our long-lived assets, including those held through joint ventures, may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of the assets may not be recoverable, we will assess the recoverability of the assets by determining whether the carrying value of the long-lived assets will be recovered through the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived assets to the fair value and recognize an impairment loss. For the three months ended March 31, 2020 and 2019, ~~and 2018, no~~0 impairment losses were recognized.

Management believes that all of our leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from any long-term operating leases are recognized on a straight-line basis over the term of the lease. In March 2019, in connection with the acquisition of a self storage facility in Newark, New Jersey, we entered into a ten year operating lease with the seller for warehouse space. The lease contains scheduled base rent increases and contractual future minimum lease payments totaling approximately $6.3 million. The excess of rents received over amounts contractually due pursuant to the underlying leases is included in accounts payable and accrued liabilities in our consolidated balance sheets and contractually due but unpaid rent is included in other assets.

~~STRATEGIC STORAGE TRUST IV, INC. AND SUBSIDIARIES~~Allowance for Doubtful Accounts

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~Tenant accounts receivable is reported net of an allowance for doubtful accounts. Management records a general reserve estimate based upon a review of the current status of tenant accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future.

Real estate facilities are recorded based on relative fair value as of the date of acquisition. We capitalize costs incurred to develop, construct, renovate and improve properties, including interest and property taxes incurred during the construction period. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use.

Our management is required to make subjective assessments as to the useful lives of our depreciable assets. We consider the period of future benefit of the asset to determine the appropriate useful lives.

Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives
as follows:

Personal property assets consist primarily of furniture, fixtures and equipment and are depreciated on a straight-line basis over the estimated useful lives generally ranging from 3 to 5 years, and are included in other assets on our consolidated balance sheets.

For non-U.S. functional currency operations, assets and liabilities are translated to U.S. dollars at current exchange rates. Revenues and expenses are translated at the average rates for the period. All related adjustments are recorded in accumulated other comprehensive income (loss) as a separate component of equity. Transactions denominated in a currency other than the functional currency of the related operation are recorded at rates of exchange in effect at the date of the transaction. Gains or losses on foreign currency transactions are recorded in other income (expense).

We have allocated a portion of our real estate purchase price to in-place lease intangibles. We are amortizing in-place lease intangibles on a straight-line basis over the estimated future benefit period. As of both March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, the gross amounts allocated to in-place lease intangibles ~~was~~were approximately ~~$8.3~~$10.5 million, ~~and $6.1 million, respectively,~~ and accumulated amortization of in-place lease intangibles totaled approximately ~~$3.0~~$8.3 million and ~~$1.9~~$7.1 million, respectively.

The total estimated future amortization expense of intangible assets for the years ending December 31, ~~2019~~2020 and ~~2020~~2021 is approximately ~~$3.7~~$1.8 million and ~~$1.6~~$0.4 million, ~~respectively, and none for the years thereafter.~~respectively.

The net carrying value of costs incurred in connection with ~~obtaining non~~our revolving ~~debt~~credit facility are presented as debt issuance costs on ~~the~~our consolidated balance ~~sheets as a reduction of the related debt (see Note 4).~~sheets. Debt issuance costs are amortized on a straight-line basis over the term of the related loan, which is not materially different than the effective interest method. As of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, accumulated amortization of debt issuance costs related to our revolving credit facility totaled approximately $0.3 million and $0.2 million, respectively.

The net carrying value of costs incurred in connection with obtaining non revolving debt are presented on the consolidated balance sheets as a reduction of the related debt. Debt issuance costs are amortized on a straight-line basis over the term of the related loan, which is not materially different than the effective interest method. As of March 31, 2020 and December 31, 2019, accumulated amortization of debt issuance costs related to non revolving debt totaled approximately ~~$0.7 million~~$18,000 and ~~$0.4 million,~~$4,000, respectively.

Our Advisor may fund organization and offering costs on our behalf. We are required to reimburse our Advisor for such organization and offering costs; provided, however, our Advisor will fund, and will not be reimbursed for, 1.15% of the gross offering proceeds from the sale of Class W shares towards payment of organization and offering expenses, which we will recognize as a capital contribution from our Advisor. Our Advisor must reimburse us within 60 days after the end of the month in which the initial public offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions, dealer manager fees, stockholder servicing fees and dealer manager servicing fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering. If at any point in time we determine that the total organization and offering costs are expected to exceed 3.5% of the gross proceeds anticipated to be received from the Primary Offering, we will recognize such excess as a capital contribution from our Advisor. Offering costs are recorded as an offset to additional paid-in capital, and organization costs are recorded as an expense.

In connection with our Primary Offering, our Dealer Manager will receive a sales commission of up to 6.0% of gross proceeds from sales of Class A shares and up to 3.0% of gross proceeds from the sales of Class T shares in the Primary Offering and a dealer manager fee up to 3.0% of gross proceeds from sales of both Class A shares and Class T shares in the Primary Offering under the terms of the Dealer Manager Agreement. Our Dealer Manager does not receive an upfront sales commission or dealer manager fee from the sales of Class W shares in the Primary Offering. In addition, our Dealer Manager receives an ongoing stockholder servicing fee that is payable monthly and accrues daily in an amount equal to 1/365th of 1% of the purchase price per share of the Class T shares sold in the Primary Offering. Our Dealer Manager also receives an ongoing dealer manager servicing fee that is payable monthly and accrues daily in an amount equal to 1/365th of 0.5% of the purchase price per share of the Class W shares sold in the Primary Offering. We will cease paying the stockholder servicing fee with respect to the Class T shares sold in the Primary Offering at the earlier of (i) the date we list our shares on a national securities exchange, merge or consolidate with or into another entity, or sell or dispose of all or substantially all of our assets, (ii) the date at which the aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the sale of Class A shares, Class T shares, and Class W shares in our Primary Offering (i.e., excluding proceeds from sales pursuant to our distribution reinvestment plan), which calculation shall be made by us with the assistance of our Dealer Manager commencing after the termination of our Primary Offering; (iii) with respect to a particular Class T share, the third anniversary of the issuance of the share; and (iv) the date that such Class T share is redeemed or is no longer outstanding. We will cease paying the dealer manager servicing fee with respect to the Class W shares sold in the Primary Offering at the earlier of (i) the date we list our shares on a national securities exchange, merge or consolidate with or into another entity, or sell or dispose of all or substantially all of our assets, (ii) the date at which the aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the sale of Class A shares, Class T shares, and Class W shares in our Primary Offering (i.e., excluding proceeds from sales pursuant to our distribution reinvestment plan),which calculation shall be made by us with the assistance of our Dealer Manager commencing after the termination of our Primary Offering; (iii) the end of the month in which the aggregate underwriting compensation paid in our Primary Offering with respect to Class W shares, comprised of the dealer manager servicing fee, equals 9.0% of the gross proceeds from the sale of Class W shares in our Primary Offering (i.e., excluding proceeds from sales pursuant to our distribution reinvestment plan), which calculation shall be made by us with the assistance of our Dealer Manager commencing after the termination of our Primary Offering, and (iv) the date that such Class W share is redeemed or is no longer outstanding.

Our Dealer Manager enters into participating dealer agreements with certain other broker-dealers which authorize them to sell our shares. Upon sale of our shares by such broker-dealers, our Dealer Manager will re-allow all of the sales commissions and, subject to certain limitations, the stockholder servicing fees paid in connection with sales made by these broker-dealers. Our Dealer Manager may also re-allow to these broker-dealers a portion of their dealer manager fee as marketing fees, reimbursement of certain costs and expenses of attending training and education meetings sponsored by our Dealer Manager, payment of attendance fees required for employees of our Dealer Manager or other affiliates to attend retail seminars and public seminars sponsored by these broker-dealers, or to defray other distribution-related expenses. Our Dealer Manager will also receive reimbursement of bona fide due diligence expenses; however, to the extent these due diligence expenses cannot be justified, any excess over actual due diligence expenses would have been considered underwriting compensation subject to a 10% FINRA limitation and, when aggregated with all other non-accountable expenses in connection with our Public Offering, may not exceed 3% of gross offering proceeds from sales in the Public Offering. We record a liability within Due to Affiliates for the future estimated stockholder and dealer manager servicing fees and a reduction to additional paid-in capital at the time of sale of the Class T and Class W shares as an offering cost.

On April 17, 2020, in accordance with the provisions of the Dealer Manager Agreement, we provided a 60-day termination notice to our Dealer Manager. See Note 11 – Subsequent Events.

We adopted a share redemption program that will enable stockholders to sell their shares to us in limited circumstances.

We record amounts that are redeemable under the share redemption program as redeemable common stock in the accompanying consolidated balance sheets since the shares are redeemable at the option of the holder and therefore their redemption is outside our control. The maximum amount redeemable under our share redemption program will be limited to the number of shares we could repurchase with the amount of the net proceeds from the sale of shares under the distribution reinvestment plan. However, accounting guidance states that determinable amounts that can become redeemable but that are contingent on an event that is likely to occur (e.g., the passage of time) should be presented as redeemable when such amount is known. Therefore, the net proceeds from the distribution reinvestment plan are considered to be temporary equity and are presented as redeemable common stock in our consolidated balance sheets.

In addition, current accounting guidance requires, among other things, that financial instruments that represent a mandatory obligation of us to repurchase shares be classified as liabilities and reported at settlement value. ~~Our redeemable common shares are contingently redeemable at the option~~

In order to preserve cash in light of the ~~holder. When~~uncertainty relating to COVID-19 and its potential impact on our overall financial results, we ~~determine we have a mandatory obligation~~were not able to ~~repurchase shares under~~honor redemption requests made for the quarter ended March 31, 2020 which totaled approximately $0.7 million (approximately 33,000 shares). Also, on March 30, 2020, our board of directors approved the suspension of our share redemption program ~~we will reclassify such obligations from temporary equity to a liability based upon their respective settlement values.~~effective on April 29, 2020.

For the ~~three months~~year ended ~~March~~December 31, 2019, we received redemption requests totaling approximately ~~$83,000~~$1.4 million (approximately 3,600 shares) which is included in accounts payable and accrued liabilities as of March 31, 2019, and was fulfilled in April 2019. For the year ended December 31, 2018, we received redemption requests totaling approximately $110,000 (approximately 4,90062,000 shares), approximately ~~$30,000~~$0.7 million of which were fulfilled during the year ended December 31, ~~2018,~~2019, with the remaining approximately ~~$80,000~~$0.7 million included in accounts payable and accrued liabilities as of December 31, ~~2018,~~2019, and fulfilled in January ~~2019.~~2020.

The cost of restricted stock is required to be measured based on the grant date fair value and the cost recognized over the relevant service period.

Under GAAP, we are required to measure certain financial instruments at fair value on a recurring basis. In addition, we are required to measure other financial instruments and balances at fair value on a non-recurring basis. Fair value is defined by the accounting standard for fair value measurements and disclosures as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels. The following summarizes the three levels of inputs and hierarchy of fair value we will use when measuring fair value:

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level that is significant to the fair value measurement in its entirety.

The accounting guidance for fair value measurements and disclosures provides a framework for measuring fair value and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In determining fair value, we will utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment will be necessary to interpret Level 2 and 3 inputs in determining fair value of our financial and non-financial assets and liabilities. Accordingly, there can be no assurance that the fair values we will present will be indicative of amounts that may ultimately be realized upon sale or other disposition of these assets.

Financial and non-financial assets and liabilities measured at fair value on a non-recurring basis in our consolidated financial statements consist of real estate and related liabilities assumed related to our acquisitions. The fair values of these assets and liabilities were determined as of the acquisition dates using widely accepted valuation techniques, including (i) discounted cash flow analysis, which considers, among other things, leasing assumptions, growth rates, discount rates and terminal capitalization rates, (ii) income capitalization approach, which considers prevailing market capitalization rates, and (iii) comparable sales activity. In general, we consider multiple valuation techniques when measuring fair values. However, in certain circumstances, a single valuation technique may be appropriate. All of the fair values of the assets and liabilities as of the acquisition dates were derived using Level 3 inputs.

The carrying amounts of cash and cash equivalents, restricted cash, other assets, variable – rate debt, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates approximate fair value.

The table below summarizes our fixed rate ~~note~~notes payable at March 31, ~~2019~~2020 and December 31, ~~2018.~~2019. The estimated fair value of financial instruments are subjective in nature and are dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate ~~note~~notes payable was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange.

We made an election to be taxed as a Real Estate Investment Trust (“REIT”), under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with our taxable year ended December 31, 2017. To qualify as a REIT, we must continue to meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the REIT’s ordinary taxable income to stockholders (which is computed without regard to the dividends paid deduction or net capital gains and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the IRS grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we are organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for federal income tax purposes.

Even if we continue to qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and federal income and excise taxes on our undistributed income.

We filed elections to treat our TRS as a taxable REIT subsidiary. In general, the TRS performs additional services for our customers and generally engages in any real estate or non-real estate related business. The TRS is subject to corporate federal and state income tax. The TRS follows accounting guidance which requires the use of the asset and liability method. Deferred income taxes represent the tax effect of future differences between the book and tax bases of assets and liabilities.

Basic earnings per share attributable to our common stockholders for all periods presented is computed by dividing net income (loss) attributable to our common stockholders by the weighted average number of shares outstanding during the period, excluding unvested restricted stock. Diluted earnings per share is computed by including the dilutive effect of unvested restricted stock, utilizing the treasury stock method. For all periods presented the dilutive effect of unvested restricted stock was not included in the diluted weighted average shares as such shares were antidilutive.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 amends the guidance on accounting for leases. Under ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU 2016-02, lessor accounting is largely unchanged. It also includes extensive amendments to the disclosure requirements. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. We adopted this standard on January 1, 2019 using the modified retrospective approach, without applying the provisions to comparative periods presented. Its adoption did not have a material impact on our consolidated financial statements as substantially all of our lease revenues are derived from month-to-month leases and, as lessee, we have no significant leases. In addition, the new standard requires our expected loss related to collectability of rental payments, previously reflected in property operating expenses as bad debt expense, to be reflected as an adjustment to self storage rental revenue. The impact of this was a reduction in both self storage rental revenue and property operating expenses of approximately $36,000 for the three months ended March 31, 2019.

The following summarizes the activity in real estate facilities during the three months ended March 31, ~~2019:~~2020:

Real estate facilities
Balance at December 31, 2018	$	135,980,078
Balance at December 31, 2019				$	261,382,288
Facility acquisitions		42,305,491			17,568,907
Improvements and additions		140,495			806,297
Balance at March 31, 2019	$	178,426,064
Balance at March 31, 2020				$	279,757,492
Accumulated depreciation
Balance at December 31, 2018	$	(1,769,436	)
Balance at December 31, 2019				$	(6,742,793	)
Depreciation expense		(1,044,854	)		(1,842,360	)
Balance at March 31, 2019	$	(2,814,290	)
Balance at March 31, 2020				$	(8,585,153	)

The following table summarizes the purchase price ~~allocations~~allocation for our ~~acquisitions~~acquisition during the three months ended March 31, ~~2019:~~2020:

~~Investment~~Note 4. Investments in ~~Joint~~Unconsolidated Real Estate Ventures ~~with SmartCentres~~

~~From time to time, we~~We have entered into ~~and expect to continue to enter into, joint venture~~various agreements with a subsidiary of SmartCentres, ~~Real Estate Investment Trust,~~ an unaffiliated third party, ~~(“SmartCentres”), for~~to acquire tracts of land ~~owned by SmartCentres that are intended to be developed~~and develop them into self storage facilities.

The Company accounts for these investments using the equity method of accounting and they ~~will be~~are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions. Equity in earnings will generally be recognized based on our ownership interest in the earnings of each of the unconsolidated investments.

The following table summarizes our investments in unconsolidated real estate ventures:

Joint ~~Venture~~Ventures with SmartCentres – ~~Oshawa Property~~Scarborough and Kingspoint

In ~~August 2018,~~January 2019, one of our subsidiaries entered into a2 contribution ~~agreement (the “Contribution Agreement”)~~agreements with a subsidiary of SmartCentres, for ~~a tract~~2 tracts of land ~~owned by SmartCentres and~~ located in ~~Oshawa,~~Scarborough, Ontario (the ~~“Oshawa~~“Scarborough Land”) and Brampton, Ontario (the “KingspointLand,” and collectively with the Scarborough Land, the “Ontario II Lots”) in the Greater Toronto Area of Canada. ~~In September 2018, we closed~~Upon closing of the Ontario II Lots, self storage facilities will be developed on both of the ~~Oshawa Land, which is now~~Ontario II Lots in joint ventures with SmartCentres.

Upon closing, the Ontario II Lots will each be owned by a limited partnership (the ~~“Oshawa~~“Ontario II Limited ~~Partnership”~~Partnerships”), in which we (through our ~~subsidiary)~~subsidiaries) and SmartCentres (through its ~~subsidiary) are~~subsidiaries) will each be a 50% limited partner and each have an equal ranking general partner in the ~~Oshawa~~Ontario II Limited ~~Partnership.~~Partnerships. It is intended that the Ontario II Limited Partnerships develop self storage facilities on the Ontario II Lots. The value of the Scarborough Land and the KingspointLand to be contributed by SmartCentres to the Ontario II Limited Partnerships has an agreed upon fair market value of approximately $1.8 million CAD and $3.3 million CAD, respectively. At closing, we ~~subscribed~~(through our subsidiaries) will subscribe for 50% of the units in the ~~Oshawa~~ Ontario IILimited ~~Partnership~~Partnerships at an agreed upon subscription price of approximately ~~$750,000~~$0.9 million CAD and $1.7 million CAD, respectively, representing ~~a contribution~~contributions equivalent to 50% of the agreed upon fair market value of each parcel of land. In some circumstances, if we fail to complete the ~~Oshawa Land.~~ Scarborough Land and KingspointLand acquisition, we may forfeit up to approximately $300,000 CAD and $300,000 CAD, respectively in earnest money.

The ~~Oshawa Limited Partnership intends to develop a self storage facility~~Company’s debt is summarized as follows:

The weighted average interest rate on the Oshawa Land. We expect development of the Oshawa Land to be completed in the second half of 2020. Our investment in the Oshawa Land of approximately $660,000 is included in other assets, in the accompanyingour consolidated ~~balance sheet~~debt as of March 31, ~~2019.~~

On January 9, 2019, one of our subsidiaries entered into a share purchase agreement with a company wholly owned by Strategic Storage Trust II, Inc., a REIT sponsored by our Sponsor (“SST II”), to purchase two companies, which together held SST II’s 50% interest in a limited partnership (the “East York Limited Partnership”) that owns a tract of land in East York, Ontario (the “East York Land”) in the Greater Toronto Area of Canada for a purchase price of2020 was approximately $4.7 million CAD which represents total costs incurred by SST II related to the East York Limited Partnership. SmartCentres is the other 50% limited partner in the East York Limited Partnership and we and SmartCentres each have an equal ranking general partner in the East York Limited Partnership. SST II previously purchased its 50% East York Limited Partnership interest at an agreed upon subscription price of approximately $3.8 million CAD, representing a contribution equivalent to 50% of the agreed upon fair market value of the land. The East York Limited Partnership intends to develop a self storage facility on the East York Land. ~~We expect development of the East York Land to be completed in the fourth quarter of 2019 or first quarter of 2020.~~ ~~The value of the land contributed to the East York Limited Partnership had an agreed upon fair market value of approximately $7.6 million CAD.~~ ~~Our investment in the East York Land of approximately $4.1 million USD is included in other assets, in the accompanying consolidated balance sheet as of March 31, 2019~~3.13%.

On July 31, 2018, the Company, through ~~six~~6 special purpose entities (collectively, the ~~“Borrower”~~“Prior Borrower”) wholly owned by our Operating Partnership, entered into a credit agreement (the “Credit Agreement”) with KeyBank, National Association (“KeyBank”), as administrative agent and KeyBanc Capital Markets, LLC, as sole book runner and sole lead arranger.

Under the terms of the Credit Agreement, the Prior Borrower had an initial maximum borrowing capacity up to $70 million (the “KeyBank Credit Facility”). On July 31, 2018, in order to finance a portion of the Naples acquisition, the Borrower borrowed $17 million on the KeyBank Credit Facility. On October 10, 2018, in order to finance a portion of the acquisition of the six properties in the greater Houston Area and College Station, Texas (the “Houston Portfolio”), the Borrower drew an additional $40 million on the KeyBank Credit Facility. On October 30, 2018, the Borrower drew an additional $5 million on the KeyBank Credit Facility, which was primarily used in connection with the acquisition of the property in Queenston, Texas. On October 31, 2018, and pursuant to the terms of the Credit Agreement, the maximum borrowing capacity of the KeyBank Credit Facility was reduced to $62 million, which was the amount outstanding on the KeyBank Credit Facility as of that date and as of December 31, 2018.

On ~~January 8,~~June 27, 2019, the KeyBank Credit Facility was repaid in full and terminated with proceeds from the Revolving KeyBank Credit Facility. The KeyBank Credit Facility was a term loan that had a maturity date of July 31, 2019. Payments due under the KeyBank Credit Facility were interest-only. As of June 27, 2019, the applicable interest rate was approximately 4.9% which was based on LIBOR plus 250 basis points.

On June 27, 2019, we, through our operating partnership, and certain affiliated entities (collectively, the “Borrower”), entered into an amended and restated credit agreement (the “Revolving KeyBank Credit Facility”) with KeyBank, as administrative agent and KeyBanc Capital Markets, LLC, as sole book runner and sole lead arranger. The Revolving KeyBank Credit Facility replaced the KeyBank Credit Facility.

Under the terms of the Revolving KeyBank Credit Facility, we had an initial maximum borrowing capacity of $55 million. On June 27, 2019, $43 million was drawn on the Revolving KeyBank Credit Facility to repay in ~~order~~full and terminate the KeyBank Credit Facility. The Revolving KeyBank Credit Facility may be increased to ~~allow~~a maximum credit facility size of $300 million, in minimum increments of $20 million, which KeyBank will arrange on a best efforts basis. On August 9, 2019, we entered into an amendment and joinder to amend and restate the ~~Borrower to draw~~Revolving KeyBank Credit Facility (the “First Amendment”) with KeyBank. Under the terms of the First Amendment, we added an additional $6$45 million ~~which was used~~to our maximum borrowing capacity for a total of $100 million with the admission of Texas Capital Bank (“Texas Capital”), Fifth Third Bank (“Fifth Third”) and SunTrust Bank (“SunTrust”) (the “Subsequent Lenders”). The Subsequent Lenders also became a party to the Revolving KeyBank Credit Facility through a joinder agreement in ~~connection~~the First Amendment.

On November 5, 2019, we entered into an amendment and joinder to amend and restate the Revolving KeyBank Credit Facility (the “Second Amendment”) with KeyBank. Under the terms of the Second Amendment, we added an additional $35 million to increase our maximum borrowing capacity to a total of $135 million. In conjunction with the increase of the maximum borrowing capacity we drew $65 million on the Revolving KeyBank Credit Facility to acquire 4 properties (Ocoee, Ardrey Kell, Charlottesville, and University City) and 3 properties were added as collateral to the loan (Redmond, Charlottesville, and University City).

On January 17, 2020, in conjunction with the acquisition of the ~~Plant City property. The maximum borrowing capacity and the amount outstanding~~Escondido Property we drew $9.0 million on the Revolving KeyBank Credit ~~Facility was increased~~Facility. On January 31, 2020, we, through 7 wholly-owned special purpose entities, entered into a $40.5 million CMBS financing with KeyBank as lender pursuant to ~~$68~~a mortgage loan (the “CMBS Loan”), see CMBS Loan section below for further details. We used $40 million ~~which was~~of the ~~amount outstanding as~~proceeds from the CMBS Loan to pay down the Revolving KeyBank Credit Facility. As a result of ~~March 31, 2019. As of March 31, 2019,~~ this, ~~facility encumbers 13~~7 properties (Jensen Beach, Texas City, Riverside, Las Vegas I, Puyallup, Las Vegas II, ~~Naples, Woodlands I, Humble, Woodlands II, College Station, Cypress~~ and Plant City). were released as collateral under the Revolving KeyBank Credit Facility and now serve as collateral under the CMBS Loan. On April 14, 2020, we repaid an additional $7 million on the Revolving KeyBank Credit Facility. Accordingly, as of April 14, 2020, the outstanding balance was $63 million.

The Revolving KeyBank Credit Facility is a revolving loan with an initial term ~~loan that has a maturity date~~ of ~~July 31, 2019, which may,~~three years, maturing on June 27, 2022, with two one-year extension options subject to certain conditions outlined further in ~~certain circumstances, be extended at~~ the ~~option of the Borrower until July 31, 2020 upon the payment of a fee equal to 25 basis points of the then-outstanding amounts under the~~Revolving KeyBank Credit Facility. ~~Payments~~Monthly payments due ~~under~~pursuant to the Revolving KeyBank Credit Facility are ~~interest-only.~~interest-only and the principal

balance is due at maturity. The ~~amounts outstanding under the~~Revolving KeyBank Credit Facility ~~bear~~bears interest ~~generally~~ based on the type of ~~borrowing, which are either “ABR” or “Eurodollar” (as each term is defined in the Credit Agreement) at the Borrower’s election. Prior to October 31, 2018: (A) the loans comprising~~borrowing. The ABR ~~borrowing~~Loans bear interest at the lesser of (x) the ~~alternate base rate (being the highest of (1) the Prime~~Alternate Base Rate ~~(2) the Federal Funds Effective Rate plus 0.5% or (3) one-month LIBO Rate plus 1%, with such capitalized terms being~~(as defined in the Revolving KeyBank Credit ~~Agreement)~~Facility) plus ~~175 basis points (the “ABR Basis Points”),~~the Applicable Rate, or (y) the ~~maximum rate that can be charged~~Maximum Rate (as defined in ~~accordance with applicable law, and (B)~~ the ~~loans comprising~~Revolving KeyBank Credit Facility). The Eurodollar ~~borrowing~~Loans bear interest at the lesser of ~~(x)~~(a) the Adjusted LIBO Rate (as defined in the Revolving KeyBank Credit ~~Agreement)~~Facility) for ~~a given~~the Interest Period in effect plus the Applicable Rate, or (b) the Maximum Rate (as defined in the Revolving KeyBank Credit ~~Agreement) plus 275~~Facility). The Applicable Rate means the percentage rate corresponding to our total leverage, which are as follows for Eurodollar Loans: (1) 225 basis points ~~(the “Eurodollar Basis Points”),~~with a total leverage ratio greater than or ~~(y) the maximum rate that can be charged in accordance with applicable law. After October 31, 2018, once our (i) debt service coverage ratio is at least~~ equal to ~~1.35:1.00 and (ii) loan to value~~55%; (2) 200 basis points with a total leverage ratio ~~is no~~ greater than ~~60%, the ABR Basis Points will be reduced~~or equal to 45% but less than 55%; (3) 175 basis points with a total leverage ratio greater than or equal to 35% but less than 45%; and (4) 150 basis points ~~and the Eurodollar Basis Points will be reduced to 250 basis points.~~with a total leverage ratio less than 35%. As of March 31, ~~2019,~~2020, the ~~applicable~~total interest rate was approximately ~~5.0%~~2.5% which was based on ~~the~~ LIBOR ~~rate~~ plus ~~250~~150 basis points. Our Operating Partnership purchased an interest rate cap with a notional amount of $105 million, such that in no event will LIBOR exceed 3.00% thereon through July 1, 2021.

The Revolving KeyBank Credit Facility is fully recourse, jointly and severally, to each of the ~~Company, the Operating Partnership, and the Borrower~~Borrowers and is secured by cross-collateralized first mortgage liens onthe Mortgaged Properties (as defined in the Revolving KeyBank Credit ~~Agreement)~~Facility). As of March 31, 2020, the facility encumbered the following 11 properties (Naples, Woodlands I, Humble, Woodlands II, College Station, Cypress, Queenston, Newark, Redmond, Charlottesville, and University City). The Revolving KeyBank Credit Facility may be prepaid or terminated at any time without penalty, provided, however, that the Lenders shall be indemnified for any breakage costs associated with any LIBO borrowings. The Credit Agreement also contains customary representations and warranties, covenants and events of default. Amounts outstanding under the Credit Agreement may be accelerated upon the occurrence of an event of default.

The Company and the Borrower, on a consolidated basis, must at all times comply with the following financial covenants: (i) a total leverage ratio no greater than 65%; and (ii) a tangible net worth not less than the Base Amount, plus 85% of the net equity proceeds received by the Company after the effective date. The Pool of Mortgaged Properties shall at all times comply with the following covenants: (i) Maximum Pool loan to value ratio not greater than 60%; and (ii) on and after October 31, 2018, a debt service coverage ratio of not less than 1.35:1.00 (such debt service coverage ratio was previously not less than 1.20:1.00). If the Borrower does not meet the defined debt service coverage ratios, the Borrower may be required either to fund certain amounts into an account held by KeyBank, as administrative agent as additional collateral or to make certain prepayments, as set forth in the Credit Agreement. As of March 31, 2019, we were in compliance with all such covenants.

costs. Pursuant to ~~the terms of the~~that certain guaranty (the “KeyBank Guaranty”), dated ~~July 31, 2018,~~as of June 27, 2019, in favor of the Lenders, ~~each of the Company and its Operating Partnership serves~~we serve as a guarantor of all obligations due under the Revolving KeyBank Credit Facility.

Under certain conditions, the Borrower may cause the release of one or more of the properties serving as collateral for the Revolving KeyBank Credit Facility, provided that no default or event of default is then outstanding or would reasonably occur as a result of such release, and after taking into account any prepayment of outstanding Loans (as defined in the Revolving KeyBank Credit Facility) necessary to maintain compliance with the financial covenants.

The Revolving KeyBank Credit Facility contains: customary affirmative, negative and financial covenants; agreements; representations; warranties and borrowing conditions; and events of default all as set forth in such loan documents. In particular, the aggregate borrowing base availability under the Revolving KeyBank Credit Facility is limited by a minimum Debt-Service-Coverage-Ratio, maximum Loan-to-Value Ratio, minimum number of Mortgaged Properties, and minimum required Pool Value for the Mortgaged Properties (capitalized terms are as defined in the Revolving KeyBank Credit Facility). In addition, we must meet certain requirements as of the close of each fiscal quarter including a maximum Total Leverage Ratio, a minimum Tangible Net Worth, a minimum Fixed Charge Ratio and required Interest Rate Protection (capitalized terms are as defined in the Revolving KeyBank Credit Facility). We are in compliance with all such covenants.

On October 10, 2018, in connection with the acquisition of the property in Katy, Texas (the “Katy Property”), we, through a special purpose entity formed to acquire and hold the Katy Property, assumed an approximately $2.3 million loan from John Hancock Life Insurance Company (U.S.A) (the “Katy Loan”), which is secured by a deed of trust on the Katy Property. The Katy Loan has a fixed annual interest rate of approximately 6.4% and matures on September 1, 2031.

On January 17, 2020, we closed on a bridge loan (the “KeyBank Bridge Loan”) with KeyBank that allowed for a limited number of draws, up to an aggregate amount of $12 million. The loan was secured by pledges of equity interests in four of our property owning subsidiaries and a pledge of the proceeds received by us from certain capital events. Concurrent with the closing, we drew $7 million on the KeyBank Bridge Loan to acquire the Escondido Property. Monthly payments were interest only at a rate of LIBOR plus 275 basis points, and the loan had a maturity date of July 15, 2020. We served as a full recourse guarantor for the KeyBank Bridge Loan. On January 29, 2020, we paid down $3 million of the outstanding loan balance. On March 30, 2020, in conjunction with obtaining the TCF Loan (as discussed below), the remaining $4 million balance on the KeyBank Bridge Loan was repaid and the loan was terminated.

On January 31, 2020, we, through 7 wholly-owned special purpose entities, entered into a $40.5 million CMBS financing with KeyBank as lender pursuant to a mortgage loan (the “CMBS Loan”). We used $40 million of the proceeds from the CMBS Loan to pay down the Revolving KeyBank Credit Facility. The CMBS Loan is secured by a first mortgage or deed of trust on each of 7 properties owned by us (Jensen Beach, Texas City, Riverside, Las Vegas I, Puyallup, Las Vegas II, and Plant City). The separate assets of these encumbered properties are not available to pay our other debt. The loan has a maturity date of February 1, 2030. Monthly payments due under the loan agreement (the “CMBS Loan Agreement”) are interest-only, with the full principal amount becoming due and payable on the maturity date.

The amounts outstanding under the CMBS Loan bear interest at an annual fixed rate equal to 3.56%. Commencing two years after securitization, the CMBS Loan may be defeased in whole, but not in part, subject to certain conditions as set forth in the CMBS Loan Agreement.

The loan documents for the CMBS Loan contain: customary affirmative and negative covenants; agreements; representations; warranties and borrowing conditions; reserve requirements and events of default all as set forth in such loan documents. In addition, and pursuant to the terms of the limited recourse guaranty dated January 31, 2020 in favor of KeyBank, we serve as a non-recourse guarantor with respect to the CMBS Loan. We are in compliance with all such covenants.

On March 30, 2020, we, through 4 wholly-owned special purpose entities (collectively, the “Borrowers”), entered into a term loan agreement (the “TCF Loan Agreement”) with TCF National Bank, a national banking association (“TCF”), as lead arranger and administrative agent for up to $31.5 million (the “TCF Loan”). At closing, we drew approximately $30.5 million and utilized $4 million to pay off the KeyBank Bridge Loan. The remaining $1 million serves as an interest holdback to cover monthly interest payments until fully utilized. The TCF Loan is secured by a first mortgage on each of the Ocoee Property, the Ardrey Kell Property, the Surprise Property, and the Escondido Property (the “TCF Properties”).

The interest rate on the TCF Loan is equal to the greater of (i) 3.75% per annum or (ii) an adjustable annual rate equal to LIBOR plus 3.00%. Upon achievement of certain financial conditions, the interest rate will be equal to the greater of (i) 3.50% per annum or (ii) an adjustable annual rate equal to LIBOR plus 2.50%. As of March 31, 2020, the interest rate on the TCF Loan was approximately 3.9%. In April 2020, our Operating Partnership purchased an interest rate cap with a notional amount of $30.5 million, such that in no event will LIBOR exceed 0.75% thereon through May 2022.

The TCF Loan has an initial term of three years, maturing on March 30, 2023, with two one-year extension options subject to certain conditions outlined further in the TCF Loan documents. During the initial term, monthly payments are interest only; during any extension periods, monthly payments are principal and interest.

The TCF Loan Agreement also contains a debt service coverage ratio covenant applicable to the Borrowers whereby, commencing on March 31, 2022, the TCF Properties must have a debt service coverage ratio of not less than 1.20 to 1.00. The TCF Loan Agreement also contains: customary affirmative, negative and financial covenants; agreements; representations; warranties and borrowing conditions; and events of default all as set forth in such loan agreement.

We serve as a limited recourse guarantor with respect to the TCF Loan during the initial term. Our obligations as guarantor may decrease based on the debt service coverage ratio on the TCF Properties.

The following table presents the future principal payment requirements on outstanding secured debt as of March 31, ~~2019:~~2020:

2019	$	68,091,448
2020		128,922		$	97,457
2021		137,392			137,392
2022		146,419			70,146,419
2023		156,038			30,698,538
2024 and thereafter		1,613,437
2024					166,290
2025 and thereafter					41,947,146
Total payments		70,273,656			143,193,242
Debt issuance costs, net		(379,599	)		(811,023	)
Total	$	69,894,057		$	142,382,219

Our Advisory Agreement with our Advisor and our Dealer Manager Agreement with our Dealer Manager entitle our Advisor and our Dealer Manager to specified fees upon the provision of certain services with regard to the Public Offering and investment of funds in real estate properties, among other services, as well as reimbursement for organization and offering costs incurred by our Advisor on our behalf and reimbursement of certain costs and expenses incurred by our Advisor in providing services to us.

Organization and offering costs of the Public Offering may be paid by our Advisor on our behalf and reimbursed to our Advisor from the proceeds of our Public Offering; provided, however, that our Advisor will fund, and will not be reimbursed for, 1.15% of the gross offering proceeds from the sale of Class W shares towards payment of organization and offering expenses. Organization and offering costs consist of all expenses (other than sales commissions, the dealer manager fee, stockholder servicing fees and dealer manager servicing fees) to be paid by us in connection with the Public Offering, including our legal, accounting, printing, mailing and filing fees, charges of our escrow holder and other accountable organization and offering expenses, including, but not limited to, (i) amounts to reimburse our Advisor for all marketing related costs and expenses such as salaries and direct expenses of employees of our Advisor and its affiliates in connection with registering and marketing our shares; (ii) technology costs associated with the Public Offering; (iii) our costs of conducting our training and education meetings; (iv) our costs of attending retail seminars conducted by participating broker-dealers; and (v) payment or reimbursement of bona fide due diligence expenses. Our Advisor must reimburse us within 60 days after the end of the month which the Public Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions, dealer manager fees, stockholder servicing fees and dealer manager servicing fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering.

We do ~~not~~0t have any employees. Our Advisor is primarily responsible for managing our business affairs and carrying out the directives of our board of directors. Our Advisor receives various fees and expenses under the terms of our Advisory Agreement. As noted above, we are required under our Advisory Agreement to reimburse our Advisor for organization and offering costs; provided, however, our Advisor will fund, and will not be reimbursed for, 1.15% of the gross offering proceeds from the sale of Class W shares towards payment of organization and offering expenses, and is required to reimburse us within 60 days after the end of the month in which the ~~Public~~Primary Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions, dealer manager fees, stockholder servicing fees and dealer manager servicing fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering.

Our Advisory Agreement also requires our Advisor to reimburse us to the extent that offering expenses, including sales commissions, dealer manager fees, stockholder servicing fees, dealer manager servicing fees and organization and offering expenses, are in excess of 15% of gross proceeds from the ~~Public~~Primary Offering. Our Advisor also receives a monthly asset management fee equal to 0.0833%, which is one-twelfth of 1%, of our aggregate asset value, as defined. Our Advisor may also be entitled to various subordinated distributions under our operating partnership agreement if we (1) list our shares of common stock on a national exchange, (2) terminate our Advisory Agreement, or (3) liquidate our portfolio.

Our Advisory Agreement provides for reimbursement of our Advisor’s direct and indirect costs of providing administrative and management services to us. Beginning four fiscal quarters after we acquire our first real estate asset, our Advisor is required to pay or reimburse us the amount by which our aggregate annual operating expenses, as defined, exceed the greater of 2% of our average invested assets or 25% of our net income, as defined, unless a majority of our independent directors determine that such excess expenses were justified based on unusual and non-recurring factors. For any fiscal quarter for which total operating expenses for the 12 months then ended exceed the limitation, we will disclose this fact in our next quarterly report or within 60 days of the end of that quarter and send a written disclosure of this fact to our stockholders. In each case the disclosure will include an explanation of the factors that the independent directors considered in arriving at the conclusion that the excess expenses were justified.

As of March 31, 2020 and 2019, our aggregate annual operating expenses, as defined, did not exceed the thresholds described above.

As of December 31, 2018, we had incurred total operating expenses for the 12 months then ended that exceeded the greater of 2% of our average invested assets or 25% of our net income, as defined, in the four consecutive fiscal quarters then ended by approximately $210,000 (the “Excess Expenses”). On March 7, 2019, our board of directors, including all of the independent directors, determined that there were unusual and non-recurring factors sufficient to justify the Excess Expenses, including but not limited to: (1) the amounts reflect legitimate operating expenses necessary for the operation of our business; (2) we are still in the acquisition and development stage of our operations; (3) the start-up costs associated with our operations, including the expenses associated with being a public company (such as audit and legal services, director and officer liability insurance and fees for directors), are significant and disproportionate to our average invested assets and net income; and (4) our average invested assets were low due to us owning between two and 14 properties during the four fiscal quarter periods.

In connection with our Primary Offering, our Dealer Manager receives a sales commission of up to 6.0% of gross proceeds from sales of Class A shares and up to 3.0% of gross proceeds from sales of Class T shares in the Primary Offering and a dealer manager fee of up to 3.0% of gross proceeds from sales of both Class A shares and Class T shares in the Primary Offering under the terms of the Dealer Manager Agreement. Our Dealer Manager does not receive an upfront sales commission or dealer manager fee from sales of Class W shares in the Primary Offering. In addition, our Dealer Manager receives an ongoing stockholder servicing fee that is payable monthly and accrues daily in an amount equal to 1/365^th of 1% of the purchase price per share of the Class T shares sold in the Primary Offering. Our Dealer Manager also receives an ongoing dealer manager servicing fee that is payable monthly and accrues daily in an amount equal to 1/365^th of 0.5% of the purchase price per share of the Class W shares sold in the Primary Offering. We will cease paying the stockholder servicing fee with respect to the Class T shares sold in the Primary Offering at the earlier of (i) the date we list our shares on a national securities exchange, merge or consolidate with or into another entity, or sell or dispose of all or substantially all of our assets, (ii) the date at which the aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the sale of Class A shares, Class T shares, and Class W shares in our Primary Offering (i.e., excluding proceeds from sales pursuant to our distribution reinvestment plan), which calculation shall be made by the Company with the assistance of our

Dealer Manager commencing after the termination of our Primary Offering; (iii) with respect to a particular Class T share, the third anniversary of the issuance of the share; and (iv) the date that such Class T share is redeemed or is no longer outstanding. We will cease paying the dealer manager servicing fee with respect to the Class W shares sold in the Primary Offering at the earlier of (i) the date we list our shares on a national securities exchange, merge or consolidate with or into another entity, or sell or dispose of all or substantially all of our assets, (ii) the date at which the aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the sale of Class A shares, Class T shares, and Class W shares in our Primary Offering (i.e., excluding proceeds from sales pursuant to our distribution reinvestment plan), which calculation shall be made by the Company with the assistance of our Dealer Manager commencing after the termination of our Primary Offering; (iii) the end of the month in which the aggregate underwriting compensation paid in our Primary Offering with respect to Class W shares, comprised of the dealer manager servicing fees, equals 9.0% of the gross proceeds from the sale of Class W shares in our Primary Offering (i.e., excluding proceeds from sales pursuant to our distribution reinvestment plan), which calculation shall be made by us with the assistance of our Dealer Manager commencing after the termination of our Primary Offering, and (iv) the date that such Class W share is redeemed or is no longer outstanding.

Our Dealer Manager enters into participating dealer agreements with certain other broker-dealers which authorizes them to sell our shares. Upon sale of our shares by such broker-dealers, our Dealer Manager will re-allow all of the sales commissions and, subject to certain limitations, the stockholder servicing fees paid in connection with sales made by these broker-dealers. Our Dealer Manager may also re-allow to these broker-dealers a portion of their dealer manager fee as marketing fees, reimbursement of certain costs and expenses of attending training and education meetings sponsored by our Dealer Manager, payment of attendance fees required for employees of our Dealer Manager or other affiliates to attend retail seminars and public seminars sponsored by these broker-dealers, or to defray other distribution-related expenses. Our Dealer Manager will also receive reimbursement of bona fide due diligence expenses; however, to the extent these due diligence expenses cannot be justified, any excess over actual due diligence expenses are considered underwriting compensation subject to a 10% FINRA limitation and, when aggregated with all other non-accountable expenses in connection with our Primary Offering, may not exceed 3% of gross offering proceeds from sales in the ~~Public~~Primary Offering. We record a liability as due to affiliates for the future estimated stockholder and dealer manager servicing fees and a reduction to additional paid-in capital at the time of sale of the Class T and Class W shares as an offering cost.

On April 17, 2020, in accordance with the provisions of the Dealer Manager Agreement, we provided a 60-day termination notice to our Dealer Manager. See Note 11 – Subsequent Events.

Our Prior Sponsor owns, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer ~~Manager and affiliates of our Dealer Manager own a 2.5% non-voting membership interest in our Advisor.~~Manager.

Our Property Manager receives: (i) a monthly management fee for the property equal to the greater of $3,000 or 6% of the gross revenues from the property plus reimbursement of the Property Manager’s costs of managing the property and (ii) a construction management fee equal to 5% of the cost of construction or capital improvement work in excess of $10,000. In addition, our Property Manager or an affiliate has the exclusive right to offer tenant insurance plans, tenant protection plans or similar programs (collectively “Tenant Programs”) to ~~the tenants~~customers at our properties and is entitled to substantially all of the benefits of such ~~tenant insurance.~~Tenant Programs. The property management agreement has a three year term and automatically renews for successive three year periods thereafter, unless we or our Property Manager provide prior written notice at least 90 days prior to the expiration of the term. After the end of the initial three year term, either party may terminate a property management agreement generally upon 60 days prior written notice. With respect to each new property we acquire for which we enter into a property management agreement with our Property Manager we will also pay our Property Manager a one-time start-up fee in the amount of $3,750.

All of our properties are operated under the “SmartStop® Self Storage” brand. An affiliate of our sponsor owns the rights to the “SmartStop® Self Storage” brand.

Our Prior Sponsor is the owner and manager of our Transfer Agent, which is a registered transfer agent with the SEC. ~~Effective in June 2018,~~Pursuant to our transfer agent agreement, our Transfer Agent ~~processes our subscription agreements~~provides transfer agent and ~~certain other forms directly,~~registrar services to us. These services are substantially similar to what a third party transfer agent would provide in the ordinary course of performing its functions as ~~well as provides~~a transfer agent, including, but not limited to: providing customer service to our ~~stockholders. These services include, among other things, processing payment of any sales commission and dealer manager fees associated with a particular purchase, as well as~~stockholders, processing the distributions and any servicing fees with respect to our ~~shares. Additionally,~~shares and issuing regular reports to our stockholders. Our Transfer Agent may retain and supervise third party vendors in its efforts to administer certain services. We believe that our Transfer Agent, through its knowledge and understanding of the direct participation program industry which includes non-traded REITs, is particularly suited to provide us with transfer agent and registrar services. Our Transfer Agent also conducts transfer agent and registrar services for ~~other non-traded REITs~~our Sponsor and a private REIT sponsored by our Sponsor.

It is the duty of our board of directors to evaluate the performance of our Transfer Agent. ~~In connection with the engagement of our Transfer Agent, we paid a one-time initial setup fee. In addition, the other fees to be~~Fees paid to our Transfer Agent are based on a fixed quarterly fee, one-time account setup fees and monthly open account fees. In addition, we will reimburse our Transfer Agent for all reasonable expenses or other changes incurred by it in connection with the provision of its services to us, and we will pay our Transfer Agent fees for any additional services we may request from time to time, in accordance with its rates then in effect. Upon the request of our Transfer Agent, we may also advance payment for substantial reasonable out-of-pocket expenditures to be incurred by it.

The initial term of the Transfer Agent Agreement is three years, which term will be automatically renewed for one year successive terms, but either party may terminate the Transfer Agent Agreement upon 90 days’ prior written notice. In the event that we terminate the Transfer Agent Agreement, other than for cause, we will pay our transfer agent all amounts that would have otherwise accrued during the remaining term of the Transfer Agent Agreement; provided, however, that when calculating the remaining months in the term for such purposes, such term is deemed to be a 12 month period starting from the date of the most recent annual anniversary date.

Pursuant to the terms of the agreements described above, the following table summarizes related party costs incurred and paid by us for the year ended December 31, ~~2018~~2019 and the three months ended March 31, ~~2019,~~2020, as well as any related amounts payable as of December 31, ~~2018~~2019 and March 31, ~~2019:~~2020:

	Year Ended December 31, 2018						Three Months Ended March 31, 2019						Year Ended December 31, 2019						Three Months Ended March 31, 2020
	Incurred		Paid		Payable		Incurred		Paid		Payable		Incurred		Paid		Payable		Incurred		Paid		Payable
Expensed
Operating expenses (including organizational costs)	$	775,948	$	754,396	$	26,616	$	278,651	$	212,327	$	92,940	$	1,247,017	$	1,200,196	$	73,437	$	445,758	$	345,861	$	173,334
Asset management fees		613,637		615,399		7,833		391,198		377,114		21,917		2,027,231		1,989,408		45,656		771,186		802,886		13,956
Property management fees		350,058		358,818		—		206,787		206,787		-		1,014,881		1,014,881		—		338,918		338,918		—
Transfer Agent expenses		163,898		153,355		10,543		60,484		57,550		13,477		275,899		273,542		12,900		84,600		87,626		9,874
Acquisition expenses		666,416		666,416		-		210,822		210,822		-		652,167		652,167		—		150,058		150,058		—
Capitalized
Acquisition expenses		76,890		76,890		-		26,700		26,700		-		44,740		44,740		—		10,800		10,800		—
Additional Paid-in Capital
Selling commissions		3,884,006		3,838,693		45,313		1,879,929		1,759,098		166,144		4,702,176		4,714,469		33,020		989,641		937,019		85,642
Dealer Manager fees		1,352,419		1,351,849		16,253		732,164		691,629		56,788		1,774,215		1,772,811		17,657		340,146		329,567		28,236
Stockholder Servicing Fees and Dealer Manager Servicing Fees⁽¹⁾		1,297,283		216,670		1,595,773		1,268,897		121,783		2,742,887		2,661,417		729,179		3,528,011		346,550		237,819		3,636,742
Offering costs		356,021		371,085		18,302		75,692		82,674		11,320		266,409		254,946		29,765		82,483		43,833		68,415
Total	$	9,536,576	$	8,403,571	$	1,720,633	$	5,131,324	$	3,746,484	$	3,105,473	$	14,666,152	$	12,646,339	$	3,740,446	$	3,560,140	$	3,284,387	$	4,016,199

We may offer a tenant insurance plan, tenant protection plan or similar program (collectively “Tenant Programs”) to customers at our properties pursuant to which our Property Manager or an affiliate is entitled to substantially all of the net revenue attributable to the sale of ~~tenant insurance~~Tenant Programs at our properties.

In order to protect the interest of the Property Manager in receiving these ~~tenant insurance~~ revenues in light of the fact that we control the properties and, hence, the ability of the Property Manager to receive ~~the tenant insurance~~such revenues, we and an affiliate of our Property Manager agreed to transfer our respective rights in such ~~tenant insurance~~ revenue to a joint venture entity ~~Strategic Storage TI Services IV JV, LLC (the “TI Joint Venture”), a Delaware limited liability company~~ owned 0.1% by our TRS subsidiary and 99.9% by our Property Manager’s affiliate ~~SmartStop TI IV, LLC (“SS TI IV”~~(the “PM Affiliate”). Under the terms of the ~~TI Joint Venture Agreement,~~operating agreement of the joint venture entity, dated March 27, 2018 (the “JV Agreement”), our TRS will receive 0.1% of the net revenues generated from such ~~tenant insurance~~Tenant Programs and ~~SS TI IV~~the PM Affiliate will receive the other 99.9% of such net revenues. The ~~TI Joint Venture~~JV Agreement further provides, among other things, that if a member or its affiliate terminates all or substantially all of the property management agreements or defaults in its material obligations under the ~~TI Joint Venture agreement~~JV Agreement or undergoes a change of control, as defined, (the “Triggering Member”), the other member generally shall have the right (but not the obligation) to either (i) sell all of its interest in the ~~TI Joint Venture~~joint venture to the Triggering Member at fair market value (as agreed upon or as determined under an appraisal process) or (ii) purchase all of the Triggering Member’s interest in the ~~TI Joint Venture~~joint venture at 95% of fair market value. For the three months ended March 31, ~~2019~~2020 and ~~2018,~~2019, an affiliate of our Property Manager received net ~~tenant insurance~~ revenue from this joint venture of approximately ~~$62,000~~$170,000 and ~~none,~~$60,000, respectively.

Our Sponsor owns a minority interest in a company that owns 50% of an online auction company (the “Auction Company”) that serves as a web portal for self storage companies to post their auctions for the contents of abandoned storage units online instead of using live auctions conducted at the self storage facilities. The Auction Company receives a service fee for such services. During the three months ended March 31, ~~2019~~2020 and ~~2018,~~2019, we paid approximately ~~$1,500~~$3,000 and ~~$100~~$1,500 in fees to the Auction Company related to our properties, respectively. Our properties receive the proceeds from such online auctions.

We adopted a distribution reinvestment plan that will allow our stockholders to have distributions otherwise distributable to them invested in additional shares of our common stock. The plan became effective on the effective date of our Public Offering. ~~The purchase price per share is $23.75 per share for Class A shares, $23.00 per share for Class T shares and $22.75 per share for Class W shares during the Primary Offering. No~~NaN sales commission or dealer manager fee will be paid on shares sold through the distribution reinvestment plan. We may amend or terminate the distribution reinvestment plan for any reason at any time upon 10 days’ prior written notice to stockholders. On June 20, 2019, our board of directors approved the Amended and Restated Distribution Reinvestment Plan, which replaced our prior distribution reinvestment plan, and became effective for distribution payments being paid beginning in July 2019. The Amended and Restated Distribution Reinvestment Plan sets the price for our shares to be equal to the estimated value per share of the Class A Shares, Class T Shares, and Class W Shares approved by the board of directors and in effect on the date of purchase of the shares under the Amended and Restated Distribution Reinvestment Plan.

As of March 31, ~~2019,~~2020, we have sold approximately ~~79,000~~205,000 Class A shares, ~~41,000~~152,000 Class T shares and ~~10,000~~34,000 Class W shares through our distribution reinvestment plan offering.

We adopted a share redemption program that enables stockholders to sell their shares to us in limited circumstances. As long as our common stock is not listed on a national securities exchange or over-the-counter market, our stockholders who have held their stock for at least one year may be able to have all or any portion of their shares of stock redeemed by us. We may redeem the shares of stock presented for redemption for cash to the extent that we have sufficient funds available to fund such redemption.

Our board of directors may amend, suspend or terminate the share redemption program with 30 days’ notice to our stockholders. We may provide this notice by including such information in a Current Report on Form 8-K or in our annual or quarterly reports, all publicly filed with the SEC, or by a separate mailing to our stockholders. ~~The complete terms~~

In order to preserve cash in light of the uncertainty relating to COVID-19 and its potential impact on our overall financial results, we were not able to honor redemption requests made for the quarter ended March 31, 2020 which totaled approximately $0.7 million (approximately 33,000 shares). Also, on March 30, 2020, our board of directors approved the suspension of our share redemption program ~~are described in detail in our prospectus.~~effective on April 29, 2020.

~~Until~~As a result of our board of directors ~~approves~~approving an estimated net asset value per share ~~as published from time to time in an Annual Report~~ on Form 10-K, a Quarterly Report on Form 10-Q and/or a Current Report on Form 8-K publicly filed with the SEC, the per share price for the redemption of shares shall be equal to the then-current net investment amount of our shares, which will be based on the “amount available for investment” percentage shown in the estimated use of proceeds table in our prospectus. For each class of shares, this amount will equal the current offering price of the shares, less the associated sales commissions, dealer manager fee and estimated organization and offering expenses not reimbursed by our Advisor. Once our board of directors approves an estimated net asset value per share,June 20, 2019, the per share price for the repurchase of a given class of shares ~~will be~~is equal to the then-current estimated net asset value per share for such class of shares.

There are several limitations on our ability to redeem shares under the share redemption program including, but not limited to:

The limited partners of our Operating Partnership have the right to cause our Operating Partnership to redeem their limited partnership units for cash equal to the value of an equivalent number of our shares, or, at our option, we may purchase their limited partnership units by issuing ~~one~~1 share of our common stock for each limited partnership unit redeemed. These rights may not be exercised under certain circumstances that could cause us to lose our REIT election. Furthermore, limited partners may exercise their redemption rights only after their limited partnership units have been outstanding for one year. Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as our Advisor is acting as our advisor under the Advisory Agreement.

From time to time, we are party to legal proceedings that arise in the ordinary course of our business. We are not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition, nor are we aware of any such legal proceedings contemplated by governmental authorities.

The following is a summary of quarterly financial information for the periods shown below.

	Three months ended															Three months ended
	March 31, 2018			June 30, 2018			September 30, 2018			December 31, 2018			March 31, 2019			March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020
Total revenues	$	358,104		$	824,113		$	1,565,837		$	3,015,974		$	3,459,128		$	3,459,128		$	4,309,571		$	4,502,793		$	4,976,849		$	5,234,189
Total operating expenses		952,026			1,877,012			2,394,010			4,058,474			4,779,831			4,779,831			5,400,052			5,929,491			6,550,524			7,319,352
Operating loss		(593,922	)		(1,052,899	)		(828,173	)		(1,042,500	)		(1,320,703	)		(1,320,703	)		(1,090,481	)		(1,426,698	)		(1,573,675	)		(2,085,163	)
Net loss		(568,747	)		(956,985	)		(1,185,278	)		(2,008,943	)		(2,416,506	)		(2,416,506	)		(2,752,178	)		(1,959,538	)		(2,440,506	)		(3,582,750	)
Net loss attributable to common stockholders		(566,467	)		(954,195	)		(1,182,557	)		(2,005,066	)		(2,412,725	)		(2,412,725	)		(2,748,977	)		(1,957,502	)		(2,438,027	)		(3,579,544	)
Net loss per Class A share-basic and diluted		(0.26	)		(0.32	)		(0.31	)		(0.44	)		(0.43	)		(0.43	)		(0.37	)		(0.24	)		(0.27	)		(0.36	)
Net loss per Class T share-basic and diluted		(0.26	)		(0.32	)		(0.31	)		(0.44	)		(0.43	)		(0.43	)		(0.37	)		(0.24	)		(0.27	)		(0.36	)
Net loss per Class W share-basic and diluted		(0.26	)		(0.32	)		(0.31	)		(0.44	)		(0.43	)		(0.43	)		(0.37	)		(0.24	)		(0.27	)		(0.36	)

OnIn order to give our board of directors maximum flexibility to monitor and evaluate the situation related to the financial impact of COVID-19, on March ~~7, 2019,~~30, 2020, our board of directors decided to change from quarterly to monthly authorization of distributions for the second quarter of 2020 and the foreseeable future. In addition, on March 30, 2020, our board of directors declared a daily distribution rate for the ~~second quarter~~month of ~~2019~~April 2020 of approximately ~~$0.004281~~$0.00427 per day per share on the outstanding shares of common stock payable to Class A, Class T and Class W stockholders of record of such shares as shown on our books at the close of business on each day of the period commencing on April 1, ~~2019~~2020 and ending ~~June~~April 30, ~~2019.~~2020. In connection with this distribution, for the stockholders of Class T shares, after the stockholder servicing fee is paid, approximately ~~$0.003618~~$0.00361 per day will be paid per Class T share and for the stockholders of Class W shares, after the dealer manager servicing fee is paid, approximately ~~$0.003969~~$0.00396 per day will be paid per Class W share. Such distributions payable to each stockholder of record during a month will be paid the following month.

On November 7, 2017 (as amended on March 12, 2018), one of our subsidiaries executed a purchase and sale agreement with an unaffiliated third party for the acquisition of a property that is being developed into a self storage facility located in Surprise, Arizona (the “Surprise Property”). The purchase price for the Surprise Property is approximately $7.8 million, plus closing and acquisition costs. We expect the acquisition of the Surprise Property to close in the second or third quarter of 2019 after construction is complete on the self storage facility and a certificate of occupancy has been issued. We expect to fund such acquisition with net proceeds from our Offering. If we fail to acquire the Surprise Property, in addition to the incurred acquisition costs, we may also forfeit approximately $300,000 in earnest money as a result.

On January 4, 2018, one of our subsidiaries executed a purchase and sale agreement with an unaffiliated third party for the acquisition of a property that is being developed into a self storage facility located in San Gabriel, California (the “San Gabriel Property”). The purchase price for the San Gabriel Property is approximately $13.5 million, plus closing and acquisition costs. We expect the acquisition of the San Gabriel Property to close in the ~~second quarter~~first half of ~~2020~~2021 after construction is complete on the self storage facility and a certificate of occupancy has been issued. We expect to fund such acquisition with net proceeds from our ~~Offering~~offering and/or ~~a credit facility or other~~ debt financing. If we fail to acquire the San Gabriel Property, in addition to the incurred acquisition costs, we may also forfeit approximately $200,000 in earnest money as a result.

~~In January 2018,~~17, 2020, a subsidiary of our sponsor entered into two contribution agreements (“Contribution Agreements”) with a subsidiary of SmartCentres Real Estate Investment Trust, an unaffiliated third party (“SmartCentres”), for two tracts of land located in Brampton, Ontario (the “Brampton Land”) and Vaughan, Ontario (the “Vaughan Land,” and collectively with the Brampton Land, the “Ontario Lots”) in the Greater Toronto Area of Canada. On March 26, 2018, the subsidiary of our sponsorSponsor assigned its interest in ~~the two Contribution Agreements to one of our subsidiaries. Upon closing of the Ontario Lots, self storage facilities will be developed on both of the Ontario Lots in joint ventures with SmartCentres.~~

Upon closing, the Ontario Lots will each be owned by a limited partnership (the “Ontario Limited Partnerships”), in which we (through our subsidiaries) and SmartCentres (through its subsidiaries) will each be a 50% limited partner and each have an equal ranking general partner in the Ontario Limited Partnerships. On June 6, 2018, we (through our subsidiaries) and SmartCentres (through its subsidiaries) entered into Initial Limited Partnership Agreements for each joint venture. It is intended that the Ontario Limited Partnerships develop self storage facilities on the Ontario Lots. The value of the Brampton Land and the Vaughan Land to be contributed by SmartCentres to the Ontario Limited Partnerships has an agreed upon fair market value of approximately $1.8 million CAD and $3.4 million CAD, respectively. At closing, we (through our subsidiaries) will subscribe for 50% of the units in the Ontario Limited Partnerships at an agreed upon subscription price of approximately $0.9 million CAD and $1.7 million CAD, respectively, representing contributions equivalent to 50% of the agreed upon fair market value of each parcel of land. We expect the acquisitions of the Brampton Land and Vaughan Land to close in the second or third quarter of 2019 after the land has been zoned so as to permit the self storage facilities. In some circumstances, if we fail to complete the Brampton Land and Vaughan Land acquisition, we may forfeit up to approximately $200,000 CAD and $500,000 CAD, respectively in earnest money.

In January 2019, one of our subsidiaries entered into two contribution agreements with a subsidiary of SmartCentres, for two tracts of land located in Scarborough, Ontario (the “Scarborough Land”) and Brampton, Ontario (the “~~Kingspoint~~Land,” and collectively with the Scarborough Land, the “Ontario II Lots”) in the Greater Toronto Area of Canada. Upon closing of the Ontario II Lots, self storage facilities will be developed on both of the Ontario II Lots in a joint venture with SmartCentres.

Upon closing, the Ontario II Lots will each be owned by a limited partnership (the “Ontario II Limited Partnerships”), in which we (through our subsidiaries) and SmartCentres (through its subsidiaries) will each be a 50% limited partner and each have an equal ranking general partner in the Ontario II Limited Partnerships. It is intended that the Ontario II Limited Partnerships develop self storage facilities on the Ontario II Lots. The value of the Scarborough Land and the ~~Kingspoint~~Land to be contributed by SmartCentres to the Ontario II Limited Partnerships has an agreed upon fair market value of approximately $1.8 million CAD and $3.3 million CAD, respectively. At closing, we (through our subsidiaries) will subscribe for 50% of the units in the Ontario IILimited Partnerships at an agreed upon subscription price of approximately $0.9 million CAD and $1.7 million CAD, respectively, representing contributions equivalent to 50% of the agreed upon fair market value of each parcel of land. We expect the acquisitions of the Scarborough Land and ~~KingspointLand to close in the first half of 2020 after the land has been zoned so as to permit the self storage facilities. In some circumstances, if we fail to complete the Scarborough Land and~~ ~~KingspointLand acquisition, we may forfeit up to approximately $300,000 CAD and $150,000 CAD, respectively in earnest money.~~

On ~~April 16, 2018, one of our subsidiaries executed~~ a purchase and sale agreement with an unaffiliated third party for the acquisition of a ~~property that is being developed into a~~ self storage facility located in ~~Escondido, California~~Punta Gorda, Florida (the ~~“Escondido~~“Punta Gorda Property”). to one of our subsidiaries. The purchase price for the ~~Escondido~~Punta Gorda Property is approximately ~~$18.0~~$17.5 million, plus closing and acquisition costs. We expect the acquisition of the ~~Escondido~~Punta Gorda Property to close in the second or third quarter of ~~2019 after construction is complete on the self storage facility and a certificate of occupancy has been issued.~~2020. We expect to fund such acquisition with net proceeds from our ~~Offering~~offering and/or ~~potential~~ debt financing. If we fail to acquire the ~~Escondido~~Punta Gorda Property, ~~in addition to the incurred acquisition costs,~~ we may also forfeit ~~$750,000~~approximately $175,000 in earnest money as a result.

On July 31, 2018, one of our subsidiaries made a preferred equity investment of approximately $2.5 million in the entity that is developing the Escondido Property. Such investment will be redeemed upon purchase of the completed property and has an annual preferred return of 8%, to be paid quarterly, with an additional 4% preferred return to be paid upon closing of the property. The Company accounts for this preferred equity investment using the equity method of accounting and it is included in other assets in the accompanying consolidated balance sheet as of March 31, 2019.

On August 7, 2019, a subsidiary of our Sponsor assigned its interest in a purchase and sale agreement, as subsequently amended, with an unaffiliated third party for the acquisition of a self storage facility located in Piscataway, New Jersey (the “Piscataway Property”) to one of our subsidiaries. The purchase price for the Piscataway Property was approximately $8.5 million. On April 30, 2020, the Piscataway Property purchase and sale agreement was terminated according to its terms and our deposit of $200,000 was returned in full. We will also be reimbursed for certain of our acquisition related costs in accordance with the agreement.

As of May ~~3, 2019,~~1, 2020, in connection with our Offerings we have issued approximately ~~3,740,445~~5.3 million Class A shares for gross offering proceeds of approximately ~~$91.7~~$132.0 million, approximately ~~2,821,165~~4.0 million Class T shares for gross offering proceeds of approximately ~~$68.2~~$95.7 million and approximately ~~711,993~~1.1 million Class W shares for gross offering proceeds of approximately ~~$16.2~~$25.0 million.

Subsequent to March 31, 2020, the global economy has continued to be severely impacted by the COVID-19 pandemic, including in the United States and in the markets in which we operate. The COVID-19 pandemic and the resulting effects, including shutdowns or weakness in national, regional and local economies that negatively impact the demand for self storage space have impacted and could continue to adversely impact our business, financial condition, liquidity and results of operations, however the extent and duration to which our operations will be impacted is highly uncertain and cannot be predicted.

On April 17, 2020, in accordance with the provisions of the Dealer Manager Agreement, we provided a 60-day termination notice to our Dealer Manager.

Based upon various factors, including the uncertainty relating to the ongoing COVID-19 outbreak and its potential economic impact, the status of fundraising in the non-traded REIT industry due to such uncertainty, and the approval by our board of directors of the termination of the Dealer Manager Agreement, on April 17, 2020, our board of directors approved the suspension of our Primary Offering, effective as of April 30, 2020.

On April 27, 2020, our board of directors declared a daily distribution rate for the month of May 2020 of approximately $0.00427 per day per share on the outstanding shares of common stock payable to Class A, Class T and Class W stockholders of record of such shares as shown on our books at the close of business on each day of the period commencing on May 1, 2020 and ending May 31, 2020. In connection with this distribution, for the stockholders of Class T shares, after the stockholder servicing fee is paid, approximately $0.00361 per day will be paid per Class T share and for the stockholders of Class W shares, after the dealer manager servicing fee is paid, approximately $0.00396 per day will be paid per Class W share. Such distributions payable to each stockholder of record during a month will be paid the following month.

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our financial statements and notes thereto contained elsewhere in this report. The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should also be read in conjunction with our financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019. See also “Cautionary Note Regarding Forward Looking Statements” preceding Part I.

Prior to June 28, 2019, both we and Strategic Storage Trust II, Inc. (“SST II”), were sponsored by SmartStop Asset Management, LLC (“SAM,” or our “Prior Sponsor”). On June 28, 2019, SST II, and its operating partnership, Strategic Storage Operating Partnership II, L.P., entered into a ~~Delaware limited liability company organized~~series of transactions, agreements, and amendments to its existing agreements and arrangements (such agreements and amendments are referred to collectively as the “Self Administration Transaction”), with our Prior Sponsor, and its affiliates, pursuant to which, effective as of June 28, 2019, SST II acquired the self storage advisory, asset management, property management, investment management, and Tenant Programs of SAM, along with certain other assets, including SAM’s sole membership interest in ~~2013~~SmartStop Storage Advisors, LLC, which owned all of the membership interests of our advisor and our property manager. Immediately after the Self Administration Transaction, SST II changed its name to SmartStop Self Storage REIT, Inc. (“SmartStop”). As a result of the Self Administration Transaction, SmartStop REIT Advisors, LLC, an indirect subsidiary of SmartStop, became the sponsor (our “Sponsor”)~~, is the sponsor~~ of our Offering of shares of our common stock, as described below. Our Sponsor ~~is a company focused on providing real estate advisory, asset management, and property management services. Our Sponsor~~ owns ~~97.5% of the economic interests (and~~ 100% ~~of the voting membership interests)~~ of Strategic Storage Advisor IV, LLC (our “Advisor”) and ~~owns 100% of~~ Strategic Storage Property Management IV, LLC (our “Property Manager”).

On March 17, 2017, we commenced a public offering of a maximum of $1 billion in common shares for sale to the public (the “Primary Offering”) and $95 million in common shares for sale pursuant to our distribution reinvestment plan (collectively, the “Public Offering”).We may continue to sell shares in the Public Offering until the earlier of 180 days after the third anniversary of the effective date of the Public Offering, September 13, 2020, or the effective date of the registration statement for our follow-on offering (SEC Registration No. 333-236176), which we initially filed with the SEC on January 31, 2020. We also reserve the right to terminate the Public Offering at any time. On April 17, 2020, our board of directors approved the suspension of our Primary Offering, effective as of April 30, 2020.

As of March 31, ~~2019,~~2020, we owned 1623 self storage facilities located in ~~six~~nine states comprising approximately ~~11,150~~17,020 units and approximately ~~1,305,800~~1,935,000 rentable square feet.

As of March 31, ~~2019,~~2020, we owned 50% ~~of the~~ equity interests ~~of two entities that owned two tracts of land~~in four unconsolidated real estate ventures in the Greater Toronto Area that are intended to be developed into self storage facilities, with subsidiaries of SmartCentres Real Estate Investment Trust (“SmartCentres”) owning the other 50% of such entities. In addition, we had entered into ~~four~~two other contribution agreements with respect to ~~four~~two separate tracts of land in the Greater Toronto Area owned by SmartCentres. For more information, see Note ~~3 and Note 9~~4 of the Notes to the Consolidated Financial Statements contained in this report.

As of March 31, ~~2019,~~2020, our self storage portfolio was comprised as follows:

State	No. of Properties		Units⁽¹⁾		Sq. Ft. (net)⁽²⁾		% of Total Rentable Sq. Ft.			Physical Occupancy %⁽³⁾			Rental Income %⁽⁴⁾			No. of Properties		Units⁽¹⁾		Sq. Ft. (net)⁽²⁾		% of Total Rentable Sq. Ft.			Physical Occupancy %⁽³⁾				Rental Income %⁽⁴⁾
Arizona																	1		720		79,000		4.1	%	N/A			⁽⁵⁾		0.2	%
California		1		470		57,500		4.4	%		94	%		5	%		2		1,620		154,000		8.0	%		88	%	⁽⁶⁾		3.7	%
Florida		3		2,120		254,900		19.5	%		85	%		27	%		4		3,030		413,100		21.3	%		89	%	⁽⁷⁾		21.3	%
Nevada		2		1,220		131,500		10.1	%		93	%		13	%		2		1,220		131,500		6.8	%		93	%			9.1	%
New Jersey		1		1,900		158,000		12.1	%		79	%		1	%		1		1,900		158,000		8.2	%		73	%			13.2	%
North Carolina																	2		1,910		176,500		9.1	%	N/A			⁽⁸⁾		7.8	%
Texas		8		4,610		605,900		46.4	%		87	%		46	%		8		4,610		605,900		31.3	%		89	%			30.1	%
Virginia																	1		830		71,000		3.7	%	N/A			⁽⁹⁾		5.1	%
Washington		1		830		98,000		7.5	%		91	%		8	%		2		1,180		146,000		7.5	%		92	%			9.5	%
		16		11,150		1,305,800		100	%		87	%		100	%		23		17,020		1,935,000		100	%		89	%	⁽³⁾		100	%

We have established accounting policies which conform to generally accepted accounting principles (“GAAP”) in the U.S. Preparing financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. Following is a discussion of the estimates and assumptions used in setting accounting policies that we consider critical in the presentation of our financial statements. Many estimates and assumptions involved in the application of GAAP may have a material impact on our financial condition or operating performance, or on the comparability of such information to amounts reported for other periods, because of the subjectivity and judgment required to account for highly uncertain items or the susceptibility of such items to change. These estimates and assumptions affect our reported amounts of assets and liabilities, our disclosure of contingent assets and liabilities at the dates of the financial statements and our reported amounts of revenue and expenses during the period covered by this report. If management’s judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied or different amounts of assets, liabilities, revenues and expenses would have been recorded, thus resulting in a materially different presentation of the financial statements or materially different amounts being reported in the financial statements. Additionally, other companies may use different estimates and assumptions that may impact the comparability of our financial condition and results of operations to those companies.

We believe that our critical accounting policies include the following: real estate purchase price allocations; the evaluation of whether any of our long-lived assets have been impaired; the determination of the useful lives of our long-lived assets; and the evaluation of the consolidation of our interests in joint ventures. The following discussion of these policies supplements, but does not supplant the description of our significant accounting policies, as contained in Note 2 of the Notes to the Consolidated Financial Statements contained in this report, and is intended to present our analysis of the uncertainties involved in arriving upon and applying each policy.

The value of the tangible assets, consisting of land and buildings, is determined as if vacant. Because we believe that substantially all of the leases in place at properties we will acquire will be at market rates, as the majority of the leases are month-to-month contracts, we do not expect to allocate any portion of the purchase prices to above or below market leases. We also consider whether in-place, market leases represent an intangible asset. Acquisitions of portfolios of facilities are allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size, age, and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values, if available.

Our allocations of purchase prices are based on certain significant estimates and assumptions, variations in such estimates and assumptions could result in a materially different presentation of the consolidated financial statements or materially different amounts being reported in the consolidated financial statements.

The majority of our assets, other than cash and cash equivalents, consist of long-lived real estate assets as well as intangible assets related to our acquisitions. We will evaluate such assets for impairment based on events and changes in circumstances that may arise in the future and that may impact the carrying amounts of our long-lived ~~assets.~~assets, including those held through joint ventures. When indicators of potential impairment are present, we will assess the recoverability of the particular asset by determining whether the carrying value of the asset will be recovered, through an evaluation of the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. This evaluation is based on a number of estimates and assumptions. Based on this evaluation, if the expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived asset and recognize an impairment loss. Our evaluation of the impairment of long-lived assets could result in a materially different presentation of the financial statements or materially different amounts being reported in the financial statements, as the amount of impairment loss recognized, if any, may vary based on the estimates and assumptions we use.

We assess the useful lives of the assets underlying our properties based upon a subjective determination of the period of future benefit for each asset. We record depreciation expense with respect to these assets based upon the estimated useful lives we determine. Our determinations of the useful lives of the assets could result in a materially different presentation of the financial statements or materially different amounts being reported in the financial statements, as such determinations, and the corresponding amount of depreciation expense, may vary dramatically based on the estimates and assumptions we use.

We will evaluate the consolidation of our investments in joint ventures in accordance with relevant accounting guidance. This evaluation requires us to determine whether we have a controlling interest in a joint venture through a means other than voting rights, and, if so, such joint venture may be required to be consolidated in our financial statements. Our evaluation of our joint ventures under such accounting guidance could result in a materially different presentation of the financial statements or materially different amounts being reported in the financial statements, as the joint venture entities included in our financial statements may vary based on the estimates and assumptions we use.

We made an election under Section 856(c) of the Internal Revenue Code of 1986 (the “Code”) to be taxed as a REIT under the Code, commencing with the taxable year ended December 31, 2017. By qualifying as a REIT for federal income tax purposes, we generally will not be subject to federal income tax on income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year in which our qualification is denied. Such an event could materially and adversely affect our net income and could have a material adverse impact on our financial condition and results of operations. However, we believe that we are organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for federal income tax purposes.

Our rental revenue and operating results depend significantly on the demand for self storage space. As a result of the global COVID-19 pandemic, national and local governments in every jurisdiction in which we operate have issued orders causing temporary shutdowns of businesses and restrictions on the ability of residents to conduct business or engage in certain activities outside of their homes, as well as restrictions on certain commercial activities. These orders have impacted, and will continue to impact, our facilities and operations. To ensure the safety of our personnel and customers we have instituted the use of masks, gloves, additional cleaning measures and social distancing at all of our self storage facilities. In addition, our Sponsor instituted remote working measures at our corporate headquarters and call center.

We have adjusted our in-store operations in order to comply with the various governmental orders, and, in certain cases, we have had to temporarily close some of our offices. In addition, since late March, we have seen reductions in our move-in volumes which have been partially offset by lower move-out volumes. To date there has been no significant change in our rent collections. However, rent collections could be impacted by our customers’ ability to pay rent which would increase bad debt expense. While we have recently implemented an entirely contactless option for servicing our customers, we typically conduct aspects of our leasing activities at our facilities, as well as the offering of various ancillary products, including moving and packing supplies, such as locks and boxes, and other services, such as tenant protection plans. Reductions in the ability and willingness of customers to visit our facilities due to the COVID-19 outbreak along with the economic impact of COVID-19 on customers could reduce rental revenue and ancillary operating revenue produced by our facilities. Concerns relating to COVID-19 have also affected, and could continue to affect, our on-site staffing, which could have an adverse impact our ability to adequately manage our facilities.

In addition, certain jurisdictions have issued orders impacting our ability to charge certain fees, conduct auctions or increase our rental rates to existing customers. Beginning in mid-March, we elected to suspend all auctions and rate increases for our existing customers, as well as suspend certain fees from being charged. As a result, we have seen a negative impact on our revenues.

The ultimate extent and duration of the impact of the COVID-19 outbreak, including the corresponding governmental orders, on the demand for self storage space or on our business, financial condition, collections, bad debt expense, liquidity, results of operations and prospects will depend on future developments, which are highly uncertain and cannot be predicted. This includes new information that may also emerge concerning the breadth or severity of the COVID-19 outbreak, as well as the actions to contain or treat its impact.

We derive revenues principally from: (i) rents received from tenants who rent storage units under month-to-month leases at each of our self storage facilities; and (ii) sales of packing- and storage-related supplies at our storage facilities. Therefore, our operating results depend significantly on our ability to retain our existing tenants and lease our available self storage units to new tenants, while maintaining and, where possible, increasing the prices for our self storage units. Additionally, our operating results depend on our tenants making their required rental payments to us.

Competition in the market areas in which we operate is significant and affects the occupancy levels, rental rates, rental revenues and operating expenses of our facilities. Development of any new self storage facilities would intensify competition of self storage operators in markets in which we operate.

On March 17, 2017, we commenced our Public Offering and formal operations. On April 11, 2017, we acquired our first self storage property located in Jensen Beach, Florida. As of March 31, ~~2019~~2020 and ~~2018,~~2019, we owned 1623 and ~~three~~16 self storage facilities, respectively.

Our operating results for the three months ended March 31, 2018 include full period results for our first two self storage facilities and partial period results for the self storage facility acquired during the first quarter of 2018. Our operating results for the period ended March 31, 2019 include full period results for 14 self storage facilities and partial period results for the two self storage facilities acquired during the first quarter of 2019. Our operating results for the three months ended March 31, 2020 include full period results for 22 self storage facilities and partial period results for one self storage facility acquired during the first quarter of 2020. As such, we believe there is little basis for comparison between the three months ended March 31, ~~2019~~2020 and ~~2018.~~2019. Operating results in future periods will depend on the results of operations of these properties and the real estate properties that we acquire in the future.

Comparison of Operating Results for the Three Months Ended March 31, ~~2019~~2020 and ~~2018~~2019

Total revenues for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were approximately ~~$3.5~~$5.2 million and ~~$0.4~~$3.5 million, respectively. The increase in total revenues is primarily attributable to a full quarter of operations for 22 properties and partial quarter of operations for one property acquired in the first quarter of 2020, compared to a full quarter of operations for 14 properties and partial quarter of operations for the two properties acquired in the first quarter of ~~2019, compared to a full quarter of operations for two properties and partial quarter of operations for the property acquired in the first quarter of 2018.~~2019. We expect total revenues to increase in the future ~~periods~~ commensurate with our future acquisition ~~activity.~~activity and lease-up of our non-stabilized properties.

Property operating expenses for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were approximately $2.2 million (approximately 42% of total revenues) and $1.1 million ~~and $0.1 million,~~(approximately 33% of total revenues), respectively. Property operating expenses include the costs to operate our facilities including payroll, utilities, insurance, real estate taxes, and marketing. The increase in property operating expenses is primarily attributable to a full quarter of operations for 22 properties and partial quarter of operations for one property acquired in the first quarter of 2020, compared to a full quarter of operations for 14 properties and partial quarter of operations for the two properties acquired in the first quarter of ~~2019, compared to~~2019. The increase in property operating expenses as a ~~full~~percentage of total revenues is primarily a result of the lease-up and certificate of occupancy properties that were acquired in the fourth quarter of ~~operations for two properties~~2019 and ~~partial quarter of operations for the property acquired in~~ the first quarter of ~~2018.~~2020. We expect property operating expenses to increase in the future as our operational activity ~~increases.~~increases but decrease as a percentage of total revenues as we lease-up our non-stabilized properties.

Property operating expenses – affiliates for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were approximately ~~$0.6~~$1.1 million and ~~$0.1~~$0.6 million, respectively. Property operating expenses – affiliates includes property management fees and asset management fees. The increase in property operating expenses – affiliates is primarily attributable to a full quarter of operations for 22 properties and partial quarter of operations for one property acquired in the first quarter of 2020, compared to a full quarter of operations for 14 properties and partial quarter of operations for the two properties acquired in the first quarter of ~~2019, compared to a full quarter of operations for two properties and partial quarter of operations for the property acquired in the first quarter of 2018.~~2019. We expect property operating expenses – affiliates to increase in the future as our operational activity increases.

General and administrative expenses for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were approximately ~~$0.5~~$0.7 million and ~~$0.3~~$0.5 million, respectively. General and administrative expenses consist primarily of legal expenses, directors’ and officers’ insurance, transfer agent fees, an allocation of a portion of our Advisor’s payroll related costs, accounting expenses and board of directors related costs. The increase in general and administrative expenses is primarily attributable to an increase in ~~our Advisor’s payroll related~~ costs ~~and transfer agent fees~~ commensurate with the increase in our operational activity. We expect general and administrative expenses to increase in the future as our operational activity increases, but decrease as a percentage of total revenue.

Depreciation and amortization expenses for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were approximately ~~$2.2~~$3.1 million and ~~$0.2~~$2.2 million, respectively. Depreciation expense consists primarily of depreciation on the buildings and site improvements at our properties. Amortization expense consists of the amortization of intangible assets resulting from our acquisitions. The increase in depreciation and amortization expense is primarily attributable to a full quarter of operations for 22 properties and partial quarter of operations for one property acquired in the first quarter of 2020, compared to a full quarter of operations for 14 properties and partial quarter of operations for the two properties acquired in the first quarter of ~~2019, compared to a full quarter of operations for two properties and partial quarter of operations for the property acquired in the first quarter of 2018.~~2019. We expect depreciation and amortization expense to increase in future periods commensurate with our future acquisition activity.

Acquisition expenses – affiliates for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were approximately $0.2 million ~~and $0.1 million, respectively. The increase~~ in ~~acquisition~~each period. Acquisition expenses primarily ~~relates~~relate to the costs associated with our potential acquisitions of self storage facilities prior to the acquisitions becoming probable in accordance with our capitalization policy. We expect acquisition expenses- affiliates to fluctuate in the future commensurate with our acquisition activity.

Other property acquisition expenses for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were approximately $35,000 and $0.2 million, ~~and $0.1 million,~~ respectively. ~~The increase in acquisition~~Acquisition expenses primarily ~~relates~~relate to the costs associated with our potential acquisitions of self storage facilities prior to the acquisitions becoming probable in accordance with our capitalization policy. We expect other property acquisition expenses to fluctuate in the future commensurate with our acquisition activity.

Interest expense for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 was approximately ~~$0.9~~$1.0 million and ~~none,~~$0.9 million, respectively. The increase in interest expense ~~was due~~is primarily attributable to debt obtained in conjunction with certain of the properties we acquired subsequent to ~~June 30, 2018.~~March 31, 2019 offset by lower interest rates on the KeyBank Revolving Credit Facility and the CMBS Loan. We expect interest expense to fluctuate in the future commensurate with our future debt level.

Interest expense – debt issuance costs for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were approximately ~~$0.2~~$0.5 million and ~~none,~~$0.2 million, respectively. The increase in interest expense – debt issuance costs was primarily due to the approximately $0.3 million of debt ~~obtained~~issuance costs related to the new CMBS Loan that were expensed in ~~conjunction~~accordance with ~~certain of~~GAAP during the ~~properties we acquired subsequent to June 30, 2018.~~quarter ended March 31, 2020. We expect interest expense – debt issuance costs to fluctuate in the future commensurate with our future financing activity.

The following table sets forth operating data for our same-store facilities (those properties included in the consolidated results of operations since January 1, 2019) for the three months ended March 31, 2020 and 2019. We consider the following data to be meaningful as this allows for the comparison of results without the effects of acquisition activity.

Our increase in same-store revenue was primarily the result of increased average physical occupancy of approximately 1.8% offset by a decrease in revenue per occupied square foot of approximately 2.3% for the three months ended March 31, 2020 over the three months ended March 31, 2019.

Our same-store property operating expenses increased by approximately $150,000 for the three months ended March 31, 2020 compared to the three months ended March 31, 2019 primarily due to increased payroll expense due to bonuses to our store personnel and an increase in property taxes.

The following table presents a reconciliation of net loss as presented on our consolidated statements of operations to property operating income, as stated above, for the periods indicated:

A comparison of cash flows for operating, investing and financing activities for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 is as follows:

	Three Months Ended									Three Months Ended
	March 31, 2019			March 31, 2018			Change			March 31, 2020			March 31, 2019			Change
Net cash flow provided by (used in):
Operating activities	$	(491,655	)	$	(261,433	)	$	(230,222	)	$	(379,178	)	$	(491,655	)	$	112,477
Investing activities		(48,279,729	)		(7,824,729	)		(40,455,000	)		(16,542,713	)		(48,279,729	)		31,737,016
Financing activities		45,170,645			14,694,386			30,476,259			48,858,773			45,170,645			3,688,128

Cash flows used in operating activities for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were approximately ~~$0.5~~$0.4 million and ~~$0.3~~$0.5 million, respectively, a change of approximately ~~$0.2~~$0.1 million. The ~~increase~~decrease in cash used in our operating activities is primarily the result of an increase in ~~accounts payable and accrued liabilities of approximately $0.7 million offset by a decrease in~~cash from our net loss, ~~adjusted for~~net of depreciation and amortization of approximately ~~$0.4~~$0.1 million.

Cash flows used in investing activities for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were approximately ~~$48.3~~$16.5 million and ~~$7.8~~$48.3 million, respectively, a change of approximately ~~$40.5~~$31.7 million. The ~~increase~~decrease in cash used in our investing activities is primarily the result of ~~an increase~~decreases in ~~acquisitions during~~cash used for purchase of real estate of approximately $28.9 million, and a decrease in cash used for investments in unconsolidated real estate ventures of approximately $2.8 million for the three months ended March 31, ~~2019 of approximately $36.3 million and an increase in investment in joint ventures of approximately $4.1 million.~~2020.

Cash flows provided by financing activities for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were approximately ~~$45.2~~$48.9 million and ~~$14.7~~$45.2 million, respectively, a change of approximately ~~$30.5~~$3.7 million. The increase in cash provided by our financing activities is primarily the result of an increase in net proceeds from debt of approximately $28.0 million, offset by a decrease in net proceeds raised from our Offering of approximately ~~$25.3 million and proceeds from issuance of debt of $6.0 million, primarily offset by an increase in cash distributions paid of approximately $0.6~~$22.6 million.

We generally expect that we will meet our short-term operating liquidity requirements from the combination of ~~proceeds from our Offering,~~cash on hand, proceeds from secured or unsecured financing from banks or other lenders, net cash provided by property operations, proceeds from our offering, and advances from our Advisor which will be repaid, without interest, as funds are available after meeting our current liquidity requirements, subject to the limitations on reimbursement set forth in our advisory agreement with our Advisor.

~~Currently,~~Historically, we ~~are making~~have primarily made distributions to our stockholders using proceeds from the Public Offering in anticipation of future cash flow. As such, this reduces the amount of capital we will ultimately invest in properties. Because substantially all of our operations are performed indirectly through our Operating Partnership, our ability to pay distributions depends in large part on our Operating Partnership’s ability to pay distributions to its partners, including to us. In the event we do not have enough cash from operations to fund cash distributions, we may borrow, issue additional securities or sell assets in order to fund the distributions or make the distributions out of net proceeds from the Public Offering. Though we presently intend to pay only cash distributions, and potentially stock distributions, we are authorized by our charter to pay in-kind distributions of readily marketable securities, distributions of beneficial interests in a liquidating trust established for our dissolution and the liquidation of our assets in accordance with the terms of the charter or distributions that meet all of the following conditions: (a) our board of directors advises each stockholder of the risks associated with direct ownership of the property; (b) our board of directors offers each stockholder the election of receiving such in-kind distributions; and (c) in-kind distributions are only made to those stockholders who accept such offer.

During our Offering, when we may raise capital more quickly than we acquire income-producing assets, we may not be able to pay distributions from our cash flows from operations, in which case distributions may be paid in part from debt financing or from proceeds from the Public ~~Offering.~~Offering, if any. The payment of distributions from sources other than cash flows from operations may reduce the amount of proceeds available for investment and operations or cause us to incur additional interest expense as a result of borrowed funds.

Over the long-term, we expect that a greater percentage of our distributions will be paid from cash flows from operations. However, our operating performance cannot be accurately predicted and may deteriorate in the future due to numerous factors, including our ability to raise and invest capital at favorable yields, the financial performance of our investments in the current real estate and financial environment and the types and mix of investments in our portfolio. As a result, future distributions declared and paid may exceed cash flow from operations.

Distributions are paid to our stockholders as of the record date selected by our board of directors. We currently pay distributions monthly based on daily declaration and record dates so that investors may be entitled to distributions immediately upon purchasing our shares. We expect to continue to regularly pay distributions unless our results of operations, our general financial condition, general economic conditions, or other factors inhibit us from doing so. Distributions will be authorized at the discretion of our board of directors, which will be directed, in substantial part, by its obligation to cause us to comply with the REIT requirements of the Code. Our board of directors may increase, decrease or eliminate the distribution rate that is being paid at any time. Distributions will be made on all classes of our common stock at the same time. The per share amount of distributions on Class A Shares, Class T Shares and Class W Shares will likely differ because of different allocations of class-specific expenses. Specifically, distributions on Class T Shares will likely be lower than distributions on Class A Shares because Class T Shares are subject to ongoing stockholder servicing fees and distributions of Class W Shares will likely be lower than distributions on Class A Shares because Class W Shares are subject to the ongoing dealer manager servicing fees. The funds we receive from operations that are available for distribution may be affected by a number of factors, including the following:

The following shows our distributions and the sources of such distributions for the respective periods presented:

	Three Months Ended March 31, 2019				Three Months Ended March 31, 2018				Three Months Ended March 31, 2020				Three Months Ended March 31, 2019
Distributions paid in cash — common stockholders	$	1,019,952			$	419,331			$	1,781,034			$	1,019,952
Distributions paid in cash — Operating Partnership unitholders		3,425				4,004				3,457				3,425
Distributions reinvested		833,499				291,645				1,672,889				833,499
Total distributions	$	1,856,876			$	714,980			$	3,457,380			$	1,856,876
Source of distributions
Cash flows provided by operations	$	—	0	%	$	—	0	%	$	—	0.0	%	$	—	0	%
Proceeds from the Public Offering		1,023,377	55.1	%		423,335	59.2	%
Proceeds from the Primary Offering and Private Offering Transaction										1,784,491	51.6	%		1,023,377	55.1	%
Offering proceeds from distribution reinvestment plan		833,499	44.9	%		291,645	40.8	%		1,672,889	48.4	%		833,499	44.9	%
Total sources	$	1,856,876	100.0	%	$	714,980	100.0	%	$	3,457,380	100.0	%	$	1,856,876	100.0	%

From our inception through March 31, ~~2019,~~2020, we paid cumulative distributions of approximately ~~$7.4~~$19.5 million, as compared to cumulative net loss attributable to our common stockholders of approximately ~~$8.4~~$19.1 million. For the three months ended March 31, 2020, we paid distributions of approximately $3.5 million, as compared to a net loss attributable to our common stockholders of approximately $3.6 million. Net loss attributable to our common stockholders for the three months ended March 31, 2020 reflects non-cash depreciation and amortization of approximately $3.1 million and acquisition related expenses of approximately $0.2 million. From our inception through March 31, 2020, cumulative net loss attributable to our common stockholders reflects non-cash depreciation and amortization of approximately $19.3 million, and acquisition related expenses of approximately $3.0 million.

For the three months ended March 31, 2019, we paid distributions of approximately $1.9 million, as compared to a net loss attributable to our common stockholders of approximately $2.4 million. Net loss attributable to our common stockholders for the three months ended March 31, 2019 reflects non-cash depreciation and amortization of approximately ~~$2.4~~$2.2 million and acquisition related expenses of approximately $0.4 million. Cumulative net loss attributable to our common stockholders reflects non-cash depreciation and amortization of approximately $6.6 million, and acquisition related expenses of approximately $2.2 million.

For the three months ended March 31, 2018, we paid distributions of approximately $715,000, as compared to a net loss attributable to our common stockholders of approximately $566,000. Net loss attributable to our common stockholders for the three months ended March 31, 2018 reflects non-cash depreciation and amortization of approximately $200,000, and acquisition related expenses of approximately $270,000.

We must distribute to our stockholders at least 90% of our taxable income each year in order to meet the requirements for being treated as a REIT under the Code. Our directors may authorize distributions in excess of this percentage as they deem appropriate. Because we may receive income from interest or rents at various times during our fiscal year, distributions may not reflect our income earned in that particular distribution period, but may be made in anticipation of cash flow that we expect to receive during a later period and may be made in advance of actual receipt of funds in an attempt to make distributions relatively uniform. To allow for such differences in timing between the receipt of income and the payment of expenses, and the effect of required debt payments, among other things, we could be required to borrow funds from third parties on a short-term basis, issue new securities, or sell assets to meet the distribution requirements that are necessary to achieve the tax benefits associated with qualifying as a REIT. We are not prohibited from undertaking such activities by our charter, bylaws or investment policies, and we may use an unlimited amount from any source to pay our distributions. These methods of obtaining funding could affect future distributions by increasing operating costs and decreasing available cash, which could reduce the value of our stockholders’ investment in our shares. In addition, such distributions may constitute a return of investors’ capital.

We ~~have not been able to and~~ may not be able to pay distributions from our cash flows from operations, in which case distributions may be paid in part from debt financing or from proceeds from the issuance of common stock in the Public ~~Offering.~~Offering, if any. The payment of distributions from sources other than cash flows from operations may reduce the amount of proceeds available for investment and operations or cause us to incur additional interest expense as a result of borrowed funds.

As of March 31, ~~2019,~~2020, our total indebtedness was approximately ~~$69.9~~$142.4 million which included approximately ~~$68.0~~$100.5 million of variable rate debt and approximately ~~$2.3~~$42.7 million of fixed rate debt, less approximately ~~$0.4~~$0.8 million in net debt issuance costs. As of December 31, ~~2018,~~2019, our total indebtedness was approximately ~~$63.8~~$109.1 million which included approximately ~~$62.0~~$107.0 million of variable rate debt and approximately ~~$2.3~~$2.2 million of fixed rate debt, less approximately ~~$0.5 million~~$75,000 in net debt issuance costs. Our variable rate debt has an initial maturity date in 2019 and we intend to exercise the extension option or repay the loan through debt refinancing. See Note 4 of the Notes to the Consolidated Financial Statements for more information about our indebtedness.

On a long-term basis, our principal demands for funds will be for property acquisitions, either directly or through entity interests, for the payment of operating expenses and distributions, and for the payment of interest on our outstanding indebtedness, if any.

Long-term potential future sources of capital include proceeds from ~~our Offering,~~ secured or unsecured financings from banks or other lenders, issuance of equity instruments, ~~and~~ undistributed funds from ~~operations.~~operations, and additional public or private offerings. To the extent we are not able to secure requisite financing in the form of a credit facility or other debt, we will be dependent upon proceeds from the issuance of equity securities and cash flows from operating activities in order to meet our long-term liquidity requirements and to fund our distributions.

The following table summarizes our contractual obligations as of March 31, ~~2019:~~2020:

	Payments due during the years ended December 31,										Payments due during the years ended December 31,
	Total		2019		2020-2021		2022-2023		Thereafter		Total		2020		2021-2022		2023-2024		Thereafter
Mortgage interest⁽¹⁾	$	2,163,062	$	1,238,334	$	262,527	$	226,383	$	435,818	$	22,720,524	$	3,361,829	$	8,204,692	$	3,487,165	$	7,666,838
Mortgage principal⁽²⁾		70,273,656		68,091,448		266,314		302,457		1,613,437	$	143,193,242		97,457		70,283,811		30,864,828		41,947,146
Total contractual obligations	$	72,436,718	$	69,329,782	$	528,841	$	528,840	$	2,049,255	$	165,913,766	$	3,459,286	$	78,488,503	$	34,351,993	$	49,613,984

On July 31, 2018, one of our subsidiaries made a preferred equity investment in an entity that is developing a self storage facility. For more information please see Note 9 of the Notes to the Consolidated Financial Statements contained in this report. The investment is accounted for under the equity method of accounting. We ~~also~~ have joint ventures with SmartCentres, which are accounted for using the equity method of ~~accounting.~~accounting (Note 4). Other than the foregoing, we do not currently have any relationships with unconsolidated entities or financial partnerships. Such entities are often referred to as structured finance or special purpose entities, which typically are established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Please see Note 1011 of the Notes to the Consolidated Financial Statements contained in this report.

We believe that we will experience minor seasonal fluctuations in the occupancy levels of our facilities which we believe will be slightly higher over the summer months due to increased moving activity.

Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market sensitive instruments. In pursuing our business plan, we expect that the primary market risk to which we will be exposed is interest rate risk and to a lesser extent, foreign currency risk. We may be exposed to the effects of interest rate changes primarily as a result of borrowings used to maintain liquidity and fund acquisition, expansion, and financing of our real estate investment portfolio and operations. Our interest rate risk management objectives will be to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. To achieve our objectives, we may borrow at fixed rates or variable rates. We may also enter into derivative financial instruments such as interest rate swaps and caps in order to mitigate our interest rate risk on a related financial instrument. We will not enter into derivative or interest rate transactions for speculative purposes.

As of March 31, ~~2019,~~2020, our total indebtedness was approximately ~~$69.9~~$142.4 million, which included approximately ~~$68.0~~$100.5 million in variable rate debt and approximately ~~$2.3~~$42.7 million in fixed rate debt, less approximately ~~$0.4~~$0.8 million in debt issuance costs. As of December 31, ~~2018,~~2019, our total indebtedness was approximately ~~$63.8~~$109.1 million, which included approximately ~~$62.0~~$107.0 million in variable rate debt and approximately ~~$2.3~~$2.2 million in fixed rate debt, less approximately ~~$0.5 million~~$75,000 in debt issuance costs. A change in interest rates on variable debt could impact the interest incurred and cash flows and its fair value. If the underlying rate of the related index on our variable rate debt were to increase by 100 basis points, the increase in interest would decrease future earnings and cash flows by approximately ~~$0.7~~$1.0 million annually.

Interest rate risk amounts were determined by considering the impact of hypothetical interest rates on our financial instruments. These analyses do not consider the effect of any change in overall economic activity that could occur. Further, in the event of a change of that magnitude, we may take actions to further mitigate our exposure to the change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, these analyses assume no changes in our financial structure.

The following table summarizes future debt maturities and average interest rates on our outstanding debt as of March 31, ~~2019:~~2020:

	Payments due during the years ended December 31,																				Payments due during the years ended December 31,
	2019			2020			2021			2022			2023			Thereafter			Total		2020			2021			2022			2023			2024			Thereafter			Total
Variable rate debt	$	68,000,000		$	—		$	—		$	—		$	—		$	—		$	68,000,000	$	—		$	—		$	70,000,000		$	30,542,500		$	—		$	—		$	100,542,500
Average interest rate⁽¹⁾		4.99	%	N/A			N/A			N/A			N/A			N/A						2.8	%		2.8	%		2.8	%		2.8	%	N/A			N/A
Fixed rate debt	$	91,448		$	128,922		$	137,392		$	146,419		$	156,038		$	1,613,437		$	2,273,656	$	97,457		$	137,392		$	146,419		$	156,038		$	166,290		$	41,947,146		$	42,650,742
Average interest rate⁽¹⁾		6.38	%		6.38	%		6.38	%		6.38	%		6.38	%		6.38	%
Average interest rate																						3.7	%		3.7	%		3.7	%		3.7	%		3.7	%		3.7	%

Currently, our only foreign exchange rate risk comes from our investments in our Canadian joint ~~venture interests~~ventures and the Canadian Dollar (“CAD”). As a result of fluctuations in currency exchange, our cash flows and results of operations could be affected.

As of the end of the period covered by this report, management, including our Chief Executive Officer (Our Principal Executive Officer) and Chief Financial Officer (Our Principal Financial Officer), evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report to ensure that information required to be disclosed in the reports we file and submit under the Exchange Act is recorded, processed, summarized and reported as and when required. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file and submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There have been no changes in our internal control over financial reporting that occurred during the quarter ended March 31, ~~2019~~2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

The following should be read in conjunction with the risk factors set forth in the “Risk Factors” section of the Registrant’s Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019.

We have incurred a net loss to date, have an accumulated deficit and our operations may not be profitable in ~~2019.~~2020.

We incurred a net loss attributable to common stockholders of approximately $3.6 million and $2.4 million for the three months ended March 31, ~~2019.~~2020 and 2019, respectively. Our accumulated deficit was approximately ~~$8.4~~$19.1 million as of March 31, ~~2019. Given that we are still early in our fundraising and acquisition stage, our operations may not be profitable in 2019.~~2020.

The exhibits required to be filed with this report are set forth on the Exhibit Index hereto and incorporated by
reference herein.

The following exhibits are included in this report on Form 10-Q for the period ended March 31, ~~2019~~2020 (and are numbered in accordance with Item 601 of Regulation S-K).

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
None	None	None


~~Title of Each Class~~	~~Trading Symbol(s)~~	~~Name of Each Exchange on Which Registered~~
~~None~~	~~None~~	~~None~~

		Page No.
	Cautionary Note Regarding Forward-Looking Statements	2

PART I. FINANCIAL INFORMATION

Item 1.	Consolidated Financial ~~Statements:~~Statements	3
	Consolidated Balance Sheets as of March 31, ~~2019~~2020 (unaudited) and December 31, ~~2018~~2019	4
	Consolidated Statements of Operations for the Three Months Ended March 31, ~~2019~~2020 and ~~2018~~2019 (unaudited)	5
	Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, ~~2019~~2020 and ~~2018~~2019 (unaudited)	6
	Consolidated Statements of Equity for the Three Months Ended March 31, 2020 and 2019 (unaudited)	7
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, ~~2019~~2020 and ~~2018~~2019 (unaudited)	8
	Notes to Consolidated Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3029
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3839
Item 4.	Controls and Procedures	3840

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	3940
Item 1A.	Risk Factors	3940
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3941
Item 3.	Defaults Upon Senior Securities	4041
Item 4.	Mine Safety Disclosures	4041
Item 5.	Other Information	4042
Item 6.	Exhibits	4042

Description	Standard Depreciable Life
Land	Not Depreciated
Buildings	35 years
Site Improvements	~~7 -10~~7-10 years

	March 31, 2019				December 31, 2018
	Fair Value		Carrying Value		Fair Value		Carrying Value
Fixed Rate Secured Debt	$	2,310,000	$	2,273,656	$	2,350,000	$	2,303,183

Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☒	Smaller reporting company	☒

		Emerging growth company	☒

Property	Acquisition Date	Real Estate Assets		Intangibles		Total⁽¹⁾		2019 Revenue⁽²⁾		2019 Property Operating Income⁽²⁾⁽³⁾
Plant City – FL	01/08/19	$	13,688,543	$	831,000	$	14,519,543	$	292,094	$	182,170
Newark – NJ	03/26/19		28,616,948		1,429,000		30,045,948		39,515		26,904
		$	42,305,491	$	2,260,000	$	44,565,491	$	331,609	$	209,074

				Carrying Value of Investment
	Location	Date Real Estate Venture Acquired Land	Equity Ownership %	March 31, 2020		December 31, 2019
Oshawa Property	Oshawa, Ontario	September 2018	50%	$	839,749	$	1,793,565
East York Property	East York, Ontario	January 2019	50%		6,904,770		7,069,314
Brampton Property	Brampton, Ontario	September 2019	50%		3,601,466		3,249,402
Vaughan Property	Vaughan, Ontario	August 2019	50%		3,351,442		2,902,858
Scarborough Property	Scarborough, Ontario	Expected in second half of 2020	50%		69,384		74,847
Kingspoint Property	Kingspoint, Ontario	Expected in first half of 2021	50%		24,074		26,209
				$	14,790,885	$	15,116,195

Secured Debt	March 31, 2020			December 31, 2019			Interest Rate			Maturity Date
Revolving KeyBank Credit Facility	$	70,000,000		$	107,000,000			2.5	%	6/27/2022
Katy Loan		2,150,742			2,182,207			6.4	%	9/1/2031
KeyBank CMBS Loan		40,500,000			—			3.6	%	2/1/2030
TCF Loan		30,542,500			—			3.9	%	3/30/2023
Debt issuance costs, net		(811,023	)		(76,230	)
Total Secured Debt	$	142,382,219		$	109,105,977

	Same-Store Facilities								Non Same-Store Facilities									Total
					%												%									%
	2020		2019		Change				2020				2019				Change	2020					2019			Change
Revenue ⁽¹⁾	$	3,156,565	$	3,127,573		0.9	%	$		2,077,624		$		331,555		N/M		$	5,234,189			$		3,459,128			51.3	%
Property operating expenses ⁽²⁾		1,346,078		1,192,240		12.9	%			1,198,798				146,135		N/M			2,544,876					1,338,375			90.1	%
Property operating income	$	1,810,487	$	1,935,333		(6.5)	%	$		878,826		$		185,420		N/M		$	2,689,313			$		2,120,753			26.8	%
Number of facilities		14		14							9				2					23					16
Rentable square feet ⁽³⁾		1,037,800		1,037,800							897,200				268,000					1,935,000					1,305,800
Average physical occupancy ⁽⁴⁾		90.6%		88.8%					N/M				N/M							89.7%	⁽⁵⁾				86.5%
Annualized rent per occupied square foot ⁽⁶⁾	$	14.72	$	15.08					N/M				N/M					$		15.41			$		14.74

	For the Three Months Ended March 31,
	2020			2019
Net loss	$	(3,579,544	)	$	(2,412,725	)
Adjusted to exclude:
Asset management fees (1)		771,186			394,918
General and administrative		672,657			473,876
Depreciation		1,881,712			1,061,388
Intangible amortization expense		1,260,700			1,115,227
Acquisition expenses—affiliates		150,058			210,822
Other property acquisition expenses		34,957			181,444
Interest expense		998,735			853,808
Interest expense—debt issuance costs		503,387			244,314
Other		(4,535	)		(2,319	)
Total property operating income	$	2,689,313		$	2,120,753

For the Month Ended	Total Number of Shares Redeemed		Average Price Paid per Share		Total Number of Shares Redeemed as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet to be Purchased Under the Plans or Programs
January 31, 2019		3,660	$	22.46		3,660		165,509
February 28, 2019		—		—		—		165,509
March 31, 2019		—		—		—		165,509

For the Month Ended	Total Number of Shares Redeemed		Average Price Paid per Share		Total Number of Shares Redeemed as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet be Purchased Under the Plans or Programs
January 31, 2020		33,024	$	22.65		33,024		345,081
February 29, 2020		—		—		—		345,081
March 31, 2020		—		—		—		345,081

Exhibit No.		Description

3.1		First Articles of Amendment and Restatement of Strategic Storage Trust IV, Inc., incorporated by reference to Exhibit 3.1 to Pre-Effective Amendment No. 3 to the Company’s Registration Statement on Form S-11, filed on February 10, 2017, Commission File No. 333-212639

3.2		Bylaws of Strategic Storage Trust IV, Inc., incorporated by reference to ~~Exhibit~~ Exhibit��3.2 to the Company’s Registration Statement on Form S-11, filed on July 22, 2016, Commission File No. 333-212639

3.3		Certificate of Correction to the First Articles of Amendment and Restatement of Strategic Storage Trust IV, Inc., incorporated by reference to Exhibit 3.3 to the Registrant’s Form 10-Q, filed on August 13, 2018, Commission File No. 000-55928

4.1		Form of Subscription Agreement and Subscription Agreement Signature Page (included as Appendix A to prospectus), incorporated by reference to the Company’s prospectus, ~~filed on~~dated April ~~19, 2019,~~30, 2020, Commission File No. 333-212639

10.1		~~First Amendment to Credit~~CMBS Loan Agreement with KeyBank National Association, dated January ~~8, 2019,~~31, 2020, incorporated by reference to Exhibit ~~10.13 to the Registrant’s Post-Effective Amendment No. 4~~10.1 to the Company’s ~~Registration Statement on Form S-11, filed on January 10, 2019, Commission File No. 333-212639~~

~~10.2~~		~~First Amendment to the Newark Purchase Agreement, dated January 11, 2019, incorporated by reference to Exhibit 10.14 to the Company’s Annual~~Current Report on Form ~~10-K,~~8-K, filed on ~~March 20, 2019,~~February 3, 2020, Commission File No. 000-55928

~~10.3~~10.2		~~Second Amendment to the Newark Purchase Agreement,~~CMBS Promissory Note in favor of KeyBank National Association, dated ~~February 19, 2019,~~January 31, 2020, incorporated by reference to Exhibit ~~10.15~~10.2 to the Company’s ~~Annual~~Current Report on Form ~~10-K,~~8-K, filed on ~~March 20, 2019,~~February 3, 2020, Commission File No. 000-55928

10.3		CMBS Guaranty Agreement in favor of KeyBank National Association, dated January 31, 2020, incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed on February 3, 2020, Commission File No. 000-55928

10.4		~~Third Amendment to~~Syndicated Term Loan Agreement with TCF National Bank and the ~~Newark Purchase Agreement,~~co-lenders party thereto, dated March ~~12, 2019,~~30, 2020, incorporated by reference to Exhibit ~~10.16~~10.1 to the Company’s ~~Annual~~Current Report on Form ~~10-K,~~8-K, filed on April 3, 2020, Commission File No. 000-55928

10.5		Promissory Note in favor of TCF National Bank, dated March ~~20, 2019,~~30, 2020, incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed on April 3, 2020, Commission File No. 000-55928

10.6		Guaranty of Recourse Carve-Outs in favor of TCF National Bank, dated March 30, 2020, incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed on April 3, 2020, Commission File No. 000-55928

31.1*		Certification of Principal Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*		Certification of Principal Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1*		Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002

32.2*		Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002

101*		The following Strategic Storage Trust IV, Inc. financial information for the quarter ended March 31, ~~2019,~~2020, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Loss, (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements.

104*		The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 has been formatted in Inline XBRL.