(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 1,~~November 6, 2020, there were ~~5,345,345~~5,442,468 outstanding shares of Class A common stock, ~~3,952,551~~4,029,025 outstanding shares of Class T common stock and ~~1,088,386~~1,105,026 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, 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 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.

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 factors listed and described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the “Risk Factors” 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, 2019, as filed with the Securities and Exchange Commission, as supplemented by the risk factors included in Part II, Item 1A of this Form 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, 2019. Our results of operations for the three and nine months ended ~~March 31,~~September 30, 2020, are not necessarily indicative of the operating results expected for the full year.

	March 31, 2020 (Unaudited)			December 31, 2019			September 30, 2020 (Unaudited)			December 31, 2019
ASSETS
Real estate facilities:
Land	$	54,847,927		$	53,834,093		$	57,745,927		$	53,834,093
Buildings		213,103,334			195,950,218			227,111,853			195,950,218
Site improvements		11,806,231			11,597,977			12,384,628			11,597,977
		279,757,492			261,382,288			297,242,408			261,382,288
Accumulated depreciation		(8,585,153	)		(6,742,793	)		(12,507,445	)		(6,742,793	)
		271,172,339			254,639,495			284,734,963			254,639,495
Construction in process		612,681			608,203			812,379			608,203
Real estate facilities, net		271,785,020			255,247,698			285,547,342			255,247,698
Cash and cash equivalents		37,424,963			5,637,176			10,213,897			5,637,176
Restricted cash		277,272			128,177			566,229			128,177
Investments in unconsolidated real estate ventures		14,790,885			15,116,195
Investments in unconsolidated real estate ventures (Note 4)								7,880,895			15,116,195
Other assets, net		3,913,870			7,500,324			3,990,002			7,500,324
Debt issuance costs, net of accumulated amortization		1,144,942			1,390,126			861,590			1,390,126
Intangible assets, net of accumulated amortization		2,189,298			3,449,999			1,147,598			3,449,999
Total assets	$	331,526,250		$	288,469,695		$	310,207,553		$	288,469,695
LIABILITIES AND EQUITY
Secured debt, net	$	142,382,219		$	109,105,977		$	126,082,450		$	109,105,977
Accounts payable and accrued liabilities		3,589,123			4,671,610			4,264,691			4,671,610
Due to affiliates		4,016,199			3,740,446			1,815,103			3,740,446
Distributions payable		1,252,315			1,139,137			1,265,531			1,139,137
Total liabilities		151,239,856			118,657,170			133,427,775			118,657,170
Commitments and contingencies (Note 7)
Redeemable common stock		7,466,785			5,793,896			11,084,494			5,793,896
Equity:
Strategic Storage Trust IV, Inc. equity:
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
Preferred Stock, $0.001 par value; 200,000,000 shares authorized; NaN issued and outstanding at September 30, 2020 and December 31, 2019								—			—
Class A Common stock, $0.001 par value; 315,000,000 shares authorized; 5,431,314 and 4,756,969 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively								5,431			4,757
Class T Common stock, $0.001 par value; 315,000,000 shares authorized; 4,018,228 and 3,627,582 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively								4,018			3,628
Class W Common stock, $0.001 par value; 70,000,000 shares authorized; 1,102,717 and 978,115 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively								1,102			978
Additional paid-in capital		213,666,177			196,355,036			219,192,569			196,355,036
Distributions		(20,722,132	)		(17,155,027	)		(28,363,989	)		(17,155,027	)
Accumulated deficit		(19,075,815	)		(15,496,271	)		(24,869,978	)		(15,496,271	)
Accumulated other comprehensive (loss) income		(1,172,320	)		185,373			(375,578	)		185,373
Total Strategic Storage Trust IV, Inc. equity		172,706,113			163,898,474			165,593,575			163,898,474
Noncontrolling interests in our Operating Partnership		113,496			120,155			101,709			120,155
Total equity		172,819,609			164,018,629			165,695,284			164,018,629
Total liabilities and equity	$	331,526,250		$	288,469,695		$	310,207,553		$	288,469,695

	Three Months Ended March 31,						Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019			2020			2019
Revenues:
Self storage rental revenue	$	5,187,683		$	3,437,208		$	6,033,260		$	4,454,337		$	16,538,477		$	12,173,703
Ancillary operating revenue		46,506			21,920			61,286			48,456			163,663			97,789
Total revenues		5,234,189			3,459,128			6,094,546			4,502,793			16,702,140			12,271,492
Operating expenses:
Property operating expenses		2,209,164			1,139,089			2,522,763			1,653,511			6,858,532			4,145,330
Property operating expenses – affiliates		1,110,104			597,985			1,173,553			767,862			3,390,798			2,078,575
General and administrative		672,657			473,876			920,347			672,582			2,502,863			1,782,454
Depreciation		1,881,712			1,061,388			2,071,758			1,261,774			5,899,252			3,533,813
Intangible amortization expense		1,260,700			1,115,227			673,465			1,340,317			2,746,401			3,774,255
Acquisition expense – affiliates		150,058			210,822
Acquisition expenses – affiliates								74,546			159,371			342,192			481,857
Other property acquisition expenses		34,957			181,444			4,327			74,074			50,012			313,089
Total operating expenses		7,319,352			4,779,831			7,440,759			5,929,491			21,790,050			16,109,373
Operating loss		(2,085,163	)		(1,320,703	)		(1,346,213	)		(1,426,698	)		(5,087,910	)		(3,837,881	)
Other income (expense):
Interest expense		(998,735	)		(853,808	)		(1,067,673	)		(476,423	)		(3,139,590	)		(2,109,907	)
Interest expense – debt issuance costs		(503,387	)		(244,314	)		(376,783	)		(61,784	)		(1,055,455	)		(1,157,426	)
Equity in loss of unconsolidated real estate venture								(154,052	)		-			(168,689	)		-
Other		4,535			2,319			38,652			5,367			69,889			(23,007	)
Net loss		(3,582,750	)		(2,416,506	)		(2,906,069	)		(1,959,538	)		(9,381,755	)		(7,128,221	)
Net loss attributable to the noncontrolling interests in our Operating Partnership		3,206			3,781			2,352			2,036			8,048			9,017
Net loss attributable to Strategic Storage Trust IV, Inc. common stockholders	$	(3,579,544	)	$	(2,412,725	)	$	(2,903,717	)	$	(1,957,502	)	$	(9,373,707	)	$	(7,119,204	)
Net loss per Class A share—basic and diluted	$	(0.36	)	$	(0.43	)	$	(0.28	)	$	(0.24	)	$	(0.92	)	$	(1.00	)
Net loss per Class T share—basic and diluted	$	(0.36	)	$	(0.43	)	$	(0.28	)	$	(0.24	)	$	(0.92	)	$	(1.00	)
Net loss per Class W share—basic and diluted	$	(0.36	)	$	(0.43	)	$	(0.28	)	$	(0.24	)	$	(0.92	)	$	(1.00	)
Weighted average Class A shares outstanding—basic and diluted		5,026,508			3,228,935
Weighted average Class T shares outstanding—basic and diluted		3,757,064			1,937,175
Weighted average Class W shares outstanding—basic and diluted		1,036,303			473,368
Weighted average Class A shares outstanding— basic and diluted								5,412,722			4,140,431			5,261,270			3,724,703
Weighted average Class T shares outstanding— basic and diluted								4,001,170			3,237,246			3,904,178			2,684,644
Weighted average Class W shares outstanding— basic and diluted								1,098,767			863,071			1,074,811			691,591

	Three Months Ended March 31,						Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019			2020			2019
Net loss	$	(3,582,750	)	$	(2,416,506	)	$	(2,906,069	)	$	(1,959,538	)	$	(9,381,755	)	$	(7,128,221	)
Other comprehensive loss:
Foreign currency translation adjustments		(1,357,693	)		9,048
Foreign currency translation adjustment								282,653			(92,210	)		(560,951	)		50,524
Comprehensive loss		(4,940,443	)		(2,407,458	)		(2,623,416	)		(2,051,748	)		(9,942,706	)		(7,077,697	)
Comprehensive loss attributable to noncontrolling interests:
Comprehensive loss attributable to the noncontrolling interests in our Operating Partnership		4,401			3,768			2,304			2,148			8,535			8,965
Comprehensive loss attributable to Strategic Storage Trust IV, Inc. common stockholders	$	(4,936,042	)	$	(2,403,690	)	$	(2,621,112	)	$	(2,049,600	)	$	(9,934,171	)	$	(7,068,732	)

	Common Stock																														Total												Common Stock
	Class A						Class T						Class W															Accumulated			Strategic			Noncontrolling									Class A						Class T						Class W
	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			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 Income (Loss)			Total Strategic Storage Trust IV, Inc. Equity			Nonconrolling 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																																												400,681			401			508,165			508			169,129		169		26,131,578			—			—			—			26,132,656			—			26,132,656			—
Offering costs																																												—			—			—			—			—		—		(2,623,563	)		—			—			—			(2,623,563	)		—			(2,623,563	)		—
Reimbursement of offering costs by Advisor																																												—			—			—			—			—		—		43,336			—			—			—			43,336			—			43,336			—
Changes to redeemable common stock																																												—			—			—			—			—		—		(1,241,912	)		—			—			—			(1,241,912	)		—			(1,241,912	)		1,241,912
Redemptions of common stock																																												(3,606	)		(3	)		—			—			—		—		—			—			—			—			(3	)		—			(3	)		(234,481	)
Issuance of restricted stock																																												2,000			2			—			—			—		—		—			—			—			—			2			—			2			—
Distributions																																												—			—			—			—			—		—		—			(2,686,760	)		—			—			(2,686,760	)		—			(2,686,760	)		—
Distributions to noncontrolling interests																																												—			—			—			—			—		—		—			—			—			—			—			(3,462	)		(3,462	)		—
Issuance of shares for distribution reinvestment plan																																												25,873			26			22,477			22			4,854		4		1,241,860			—			—			—			1,241,912			—			1,241,912			—
Stock based compensation expense																																												—			—			—			—			—		—		4,687			—			—			—			4,687			—			4,687			—
Net loss attributable to Strategic Storage Trust IV, Inc.																																												—			—			—			—			—		—		—			—			(2,748,977	)		—			(2,748,977	)		—			(2,748,977	)		—
Net loss attributable to the noncontrolling interests in our Operating Partnership																																												—			—			—			—			—		—		—			—			—			—			—			(3,201	)		(3,201	)		—
Foreign currency translation adjustment																																												—			—			—			—			—		—		—			—			—			133,686			133,686			—			133,686			—
Balance as of June 30, 2019																																												3,964,935			3,966			3,079,746			3,079			807,624		807		165,773,659			(10,838,375	)		(11,100,742	)		46,064			143,888,458			131,673			144,020,131			3,851,732
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			—			343,524			344			282,339			283			102,093		102		17,625,837			—			—			—			17,626,566			—			17,626,566			—
Offering costs		—			—			—			—			—			—			(2,345,777	)		—			—			—			(2,345,777	)		—			(2,345,777	)		—			—			—			—			—			—		—		(1,703,021	)		—			—			—			(1,703,021	)		—			(1,703,021	)		—
Reimbursement of offering costs by Advisor		—			—			—			—			—			—			24,467			—			—			—			24,467			—			24,467			—			—			—			—			—			—		—		26,593			—			—			—			26,593			—			26,593			—
Changes to redeemable common stock		—			—			—			—			—			—			(1,672,889	)		—			—			—			(1,672,889	)		—			(1,672,889	)		1,672,889			—			—			—			—			—		—		(1,455,199	)		—			—			—			(1,455,199	)		—			(1,455,199	)		1,455,199
Redemptions of common stock		(19,690	)		(20	)		(8,734	)		(9	)		(4,599	)		(5	)		—			—			—			—			(34	)		—			(34	)		—			(4,668	)		(5	)		(5,678	)		(6	)		—		—		—			—			—			—			(11	)		—			(11	)		(344,727	)
Distributions		—			—			—			—			—			—			—			(3,567,105	)		—			—			(3,567,105	)		—			(3,567,105	)		—			—			—			—			—			—		—		—			(3,024,638	)		—			—			(3,024,638	)		—			(3,024,638	)		—
Distributions to noncontrolling interests		—			—			—			—			—			—			—			—			—			—			—			(3,453	)		(3,453	)		—			—			—			—			—			—		—		—			—			—			—			—			(3,501	)		(3,501	)		—
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			—			30,914			31			27,567			28			5,767		6		1,455,134			—			—			—			1,455,199			—			1,455,199			—
Stock based compensation expense		—			—			—			—			—			—			7,813			—			—			—			7,813			—			7,813			—			—			—			—			—			—		—		7,813			—			—			—			7,813			—			7,813			—
Net loss attributable to Strategic Storage Trust IV, Inc.		—			—			—			—			—			—			—			—			(3,579,544	)		—			(3,579,544	)		—			(3,579,544	)		—			—			—			—			—			—		—		—			—			(1,957,502	)		—			(1,957,502	)		—			(1,957,502	)		—
Net loss attributable to the noncontrolling interests in our Operating Partnership		—			—			—			—			—			—			—			—			—			—			—			(3,206	)		(3,206	)		—			—			—			—			—			—		—		—			—			—			—			—			(2,036	)		(2,036	)		—
Foreign currency translation adjustment		—			—			—			—			—			—			—			—			—			(1,357,693	)		(1,357,693	)		—			(1,357,693	)		—			—			—			—			—			—		—		—			—			—			(92,210	)		(92,210	)		—			(92,210	)		—
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
Balance as of September 30, 2019																																												4,334,705		$	4,336			3,383,974		$	3,384			915,484	$	915	$	181,730,816		$	(13,863,013	)	$	(13,058,244	)	$	(46,146	)	$	154,772,048		$	126,136		$	154,898,184		$	4,962,204

	Common Stock
	Class A						Class T						Class W
	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 Income (Loss)			Total Strategic Storage Trust IV, Inc. Equity			Nonconrolling Interests in our Operating Partnership			Total Equity			Redeemable Common Stock
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
Gross proceeds from issuance of common stock		103,883			103			76,185			76			7,639			7			4,583,477			—			—			—			4,583,663			—			4,583,663			—
Offering costs		—			—			—			—			—			—			(540,039	)		—			—			—			(540,039	)		—			(540,039	)		—
Adjustment to offering costs (Note 7)		—			—			—			—			—			—			1,585,682			—			—			—			1,585,682			—			1,585,682			—
Reimbursement of offering costs by Advisor		—			—			—			—			—			—			1,713			—			—			—			1,713			—			1,713			—
Changes to redeemable common stock		—			—			—			—			—			—			(1,797,306	)		—			—			—			(1,797,306	)		—			(1,797,306	)		1,797,306
Issuance of restricted stock		2,000			2			—			—			—			—			—			—			—			—			2			—			2			—
Distributions		—			—			—			—			—			—			—			(3,776,027	)		—			—			(3,776,027	)		—			(3,776,027	)		—
Distributions to noncontrolling interests		—			—			—			—			—			—			—			—			—			—			—			(3,454	)		(3,454	)		—
Issuance of shares for distribution reinvestment plan		37,638			38			33,813			33			7,899			8			1,797,227			—			—			—			1,797,306			—			1,797,306			—
Stock based compensation expense		—			—			—			—			—			—			7,812			—			—			—			7,812			—			7,812			—
Net loss attributable to Strategic Storage Trust IV, Inc.		—			—			—			—			—			—			—			—			(2,890,446	)		—			(2,890,446	)		—			(2,890,446	)		—
Net loss attributable to the noncontrolling interests in our Operating Partnership		—			—			—			—			—			—			—			—			—			—			—			(2,490	)		(2,490	)		—
Foreign currency translation adjustment		—			—			—			—			—			—			—			—			—			514,089			514,089			—			514,089			—
Balance as of June 30, 2020		5,393,515		$	5,393			3,983,653		$	3,983			1,094,720		$	1,094		$	219,304,743		$	(24,498,159	)	$	(21,966,261	)	$	(658,231	)	$	172,192,562		$	107,552		$	172,300,114		$	9,264,091
Offering costs		—			—			—			—			—			—			(123,031	)		—			—			—			(123,031	)		—			(123,031	)		—
Changes to redeemable common stock		—			—			—			—			—			—			(1,820,403	)		—			—			—			(1,820,403	)		—			(1,820,403	)		1,820,403
Distributions		—			—			—			—			—			—			—			(3,865,830	)		—			—			(3,865,830	)		—			(3,865,830	)		—
Distributions to noncontrolling interests		—			—			—			—			—			—			—			—			—			—			—			(3,491	)		(3,491	)		—
Issuance of shares for distribution reinvestment plan		37,799			38			34,575			35			7,997			8			1,820,322			—			—			—			1,820,403			—			1,820,403			—
Stock based compensation expense		—			—			—			—			—			—			10,938			—			—			—			10,938			—			10,938			—
Net loss attributable to Strategic Storage Trust IV, Inc.		—			—			—			—			—			—			—			—			(2,903,717	)		—			(2,903,717	)		—			(2,903,717	)		—
Net loss attributable to the noncontrolling interests in our Operating Partnership		—			—			—			—			—			—			—			—			—			—			—			(2,352	)		(2,352	)		—
Foreign currency translation adjustment		—			—			—			—			—			—			—			—			—			282,653			282,653			—			282,653			—
Balance as of September 30, 2020		5,431,314		$	5,431			4,018,228		$	4,018			1,102,717		$	1,102		$	219,192,569		$	(28,363,989	)	$	(24,869,978	)	$	(375,578	)	$	165,593,575		$	101,709		$	165,695,284		$	11,084,494

	Three Months Ended March 31,						Nine Months Ended September 30,
	2020			2019			2020			2019
Cash flows from operating activities:
Net loss	$	(3,582,750	)	$	(2,416,506	)	$	(9,381,755	)	$	(7,128,221	)
Adjustments to reconcile net loss to cash used in operating activities:
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization		3,142,412			2,176,615			8,645,653			7,308,068
Amortization of debt issuance costs		503,387			244,314			855,873			593,946
Stock based compensation expense related to issuance of restricted stock		7,813			4,688			26,563			17,188
Equity in loss of unconsolidated joint venture								168,689			—
Interest payments added to debt principal								503,803			—
Changes in operating assets and liabilities:
Other assets, net		(325,290	)		(81,072	)		(1,020,001	)		(746,080	)
Accounts payable and accrued liabilities		(189,921	)		(503,039	)		1,484,316			237,589
Due to affiliates		65,171			83,345			69,053			114,874
Net cash used in operating activities		(379,178	)		(491,655	)
Net cash provided by operating activities								1,352,194			397,364
Cash flows from investing activities:
Purchase of real estate		(14,263,127	)		(43,165,491	)		(31,125,609	)		(55,190,181	)
Additions to real estate facilities		(735,429	)		(140,495	)		(2,167,721	)		(653,091	)
Deposits on acquisitions of real estate		(175,000	)		(500,000	)		—			(100,000	)
Return of deposits on acquisition of real estate								200,000			—
Investments in unconsolidated real estate ventures		(1,369,157	)		(4,179,081	)		(4,572,138	)		(9,168,451	)
Deposits on acquisitions of investments in unconsolidated real estate ventures		—			(344,662	)		—			(474,158	)
Return of capital on investments in unconsolidated real estate ventures								10,515,833			—
Return of preferred equity method investment		—			50,000			—			150,000
Net cash used in investing activities		(16,542,713	)		(48,279,729	)		(27,149,635	)		(65,435,881	)
Cash flows from financing activities:
Proceeds from issuance of revolving secured debt		9,000,000			—			25,000,000			52,000,000
Proceeds from issuance of secured debt		78,042,500			6,000,000			87,282,500			6,000,000
Repayment of revolving secured debt		(46,000,000	)		—			(88,000,000	)		(10,000,000	)
Repayment of secured debt		(7,000,000	)		—			(7,000,000	)		(68,000,000	)
Scheduled principal payments on secured debt		(31,466	)		(29,527	)		(95,919	)		(90,006	)
Debt issuance costs		(355,566	)		(98,591	)		(403,819	)		(1,211,856	)
Gross proceeds from issuance of common stock		19,687,733			43,261,870			23,907,808			86,851,407
Offering costs		(1,952,040	)		(2,857,517	)		(3,380,073	)		(6,449,156	)
Redemption of common stock		(747,897	)		(82,213	)		(747,897	)		(399,733	)
Distributions paid to common stockholders		(1,781,034	)		(1,019,952	)		(5,791,928	)		(3,807,794	)
Distributions paid to noncontrolling interest in our Operating Partnership		(3,457	)		(3,425	)
Distributions paid to noncontrolling interests in our Operating Partnership								(10,440	)		(10,426	)
Net cash provided by financing activities		48,858,773			45,170,645			30,760,232			54,882,436
Effect of exchange rate changes on cash								51,982			—
Net change in cash, cash equivalents and restricted cash		31,936,882			(3,600,739	)		5,014,773			(10,156,081	)
Cash, cash equivalents and restricted cash, beginning of period		5,765,353			15,795,440			5,765,353			15,795,440
Cash, cash equivalents and restricted cash, end of period	$	37,702,235		$	12,194,701		$	10,780,126		$	5,639,359
Supplemental disclosures and non-cash transactions:
Cash paid for interest	$	998,073		$	835,335		$	2,581,054		$	2,241,020
Deposits applied to purchase of real estate	$	750,000		$	1,400,000		$	750,000		$	900,000
Deposits applied to purchase of investments in unconsolidated real estate ventures							$	228,861		$	560,313
Preferred equity method investment applied to purchase of real estate	$	2,300,000		$	—		$	2,300,000		$	—
Preferred return on preferred equity method investment applied to purchase of real estate	$	255,780		$	—		$	255,780		$	—
Additions to real estate facilities included in accounts payable and accrued liabilities	$	183,667		$	—		$	17,207		$	219,453
Proceeds from issuance of common stock in accounts payable and accrued liabilities	$	275,000		$	680,000		$	—		$	680,000
Offering costs included in due to affiliates	$	528,843		$	1,385,376		$	163,685		$	2,060,360
Adjustment to offering costs							$	(1,585,682	)	$	—
Offering costs included in accounts payable and accrued liabilities	$	196,499		$	47,532		$	30,829		$	20,392
Redemption of common stock in accounts payable and accrued liabilities	$	—		$	83,187		$	—		$	344,875
Distributions payable	$	1,252,315		$	795,064		$	1,265,531		$	1,020,286
Issuance of shares pursuant to distribution reinvestment plan	$	1,672,889		$	833,499		$	5,290,598		$	3,530,610
Foreign currency translation adjustment	$	1,357,693		$	9,048		$	(560,951	)	$	50,524
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 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 and property management ~~investment management,~~businesses and ~~Tenant Programs (as defined in Note 6)~~certain joint venture interests (the “Self Storage Platform”) of SAM, along with certain other assets ~~including SAM’s sole membership interest in SmartStop Storage Advisors, LLC, which owned all~~ of SAM (collectively, the ~~membership interests of our advisor and our property manager.~~“Self Administration Transaction”). 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”) of our Public Offering of shares of our common stock, as described below. Our Sponsor owns 100% of Strategic Storage Advisor IV, LLC (our “Advisor”) and Strategic Storage Property Management IV, LLC (our “Property Manager”).

We have 0 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 the advisory agreement we entered into with our Advisor (our “Advisory Agreement”) on March 3, 2017. A majority of our officers are also officers of our Advisor and our Sponsor.

On November 10, 2020, the Company, SmartStop, and SST IV Merger Sub, LLC, a Maryland limited liability company and a wholly-owned subsidiary of SmartStop (“Merger Sub”), entered into a definitive agreement and plan of merger (the “Merger Agreement”). Pursuant to the Merger Agreement, the Company will merge with and into Merger Sub (the “Merger”) with Merger Sub being the surviving entity. The Merger is expected to close during the first half of 2021. See Note 11, Subsequent Events for additional information related to the Merger and other transactions entered into in conjunction with the Merger Agreement.

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~~offered 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”). 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, 2020, approximately 4.9 million Class A shares for gross offering proceeds of approximately $122.2 million, approximately~~ ~~3.9~~ ~~million Class T shares for gross offering proceeds of approximately $93.9 million and approximately~~ ~~1.1~~ ~~million Class W shares for gross offering proceeds of approximately $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, 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 termination of our Dealer Manager Agreement. The termination of our Public Offering occurred on September 11, 2020. ~~See Note 11 – Subsequent Events.~~ We sold approximately 5.1 million Class A shares for gross offering proceeds of approximately $126.4 million, approximately 4.0 million Class T shares for gross offering proceeds of approximately $97.2 million and approximately 1.1 million Class W shares for gross offering proceeds of approximately $25.3 million in the Public Offering. On July 30, 2020, prior to the termination of our Public Offering, we filed with the SEC a Registration Statement on Form S-3, which registered up to an additional $50 million in shares under our distribution reinvestment plan (our “DRP Offering”). The DRP Offering may be terminated at any time upon 10 days’ prior written notice to stockholders.

We have invested the net proceeds from our 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,~~September 30, 2020, we wholly owned 2324 operating self storage properties located in 9 states (Arizona, California, Florida, Nevada, New Jersey, North Carolina, Texas, Virginia and Washington).

~~As of March 31, 2020, we owned~~, as well as 50% equity interests in 45 unconsolidated real estate ventures located in the Greater Toronto Area ~~that are intended to be~~of Ontario, Canada (“Greater Toronto Area”). Our unconsolidated real estate ventures consist of one operating self storage property and four parcels of land being developed into self storage facilities, with subsidiaries of SmartCentres Real Estate Investment Trust, one of the largest real estate investment trusts in Canada (“SmartCentres”), owning the other 50% of such entities. In addition, we had entered into 21 other contribution ~~agreements~~agreement with respect to ~~2 separate tracts~~a tract of land in the Greater Toronto Area owned by SmartCentres. For more information, see Note 4.

On June ~~20, 2019,~~29, 2020, 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.~~2020. As a result of the calculation of our estimated value per share ~~effective on June 21, 2019,~~remaining the same as the prior year value, there was no change to the public offering ~~price~~prices for any of ~~Class A shares became $24.89 per~~our 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.~~classes. In addition, the purchase price for shares sold pursuant to our distribution reinvestment plan ~~are now sold~~remained at $22.65 per share for Class A, Class T, and Class W ~~shares, effective for distribution payments being paid beginning in July 2019~~shares..

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,~~September 30, 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 Sponsor owns the rights to the “SmartStop® Self Storage” 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 6 – Related Party Transactions – Property Management Agreement.

Our dealer manager iswas Select Capital Corporation, a California corporation (our ~~“Dealer~~“Former Dealer Manager”). On February 10, 2017, the Company executed a dealer manager agreement, as amended (the “Dealer Manager Agreement”), with our Former Dealer Manager. Our Former Dealer Manager iswas responsible for marketing our shares to be offered pursuant to our Primary Offering. On April 17, 2020, in accordance with provisions of the Dealer Manager Agreement, we provided a 60-day termination notice to our Former Dealer Manager and pursuant to such notice, the Dealer Manager Agreement was terminated on June 16, 2020. Our Prior Sponsor owns, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Former Dealer Manager. ~~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~~Please see Note 116 – ~~Subsequent Events.~~Related Party Transactions for additional detail.

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 6 – Related Party Transactions – Transfer Agent Agreement.

As we ~~accept~~accepted subscriptions for shares of our common stock, we ~~transfer~~transferred 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~~were deemed to have made capital contributions in the amount of gross proceeds received from investors, and our Operating Partnership iswas 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 global economy has continued to be adversely 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 have affected our business. While many of the factors underlying the demand for self storage improved during the third quarter, future governmental orders or broad economic weakness could 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.

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,~~September 30, 2020, we had 0t entered into any other contracts/interests that would be deemed to be variable interests in VIEs other than our joint ventures with SmartCentres, which are all accounted for under the equity method of accounting. Please see 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 and capital improvements in connection with the requirements of ~~two~~certain 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.~~values as of the date of acquisition. 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~~approximately $0.4 million and ~~approximately $2.3~~$2.7 million in intangible assets to recognize the value of in-place leases related to our acquisitions during the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 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 that do not meet the definition of a business, as defined under current GAAP, are accounted for as asset acquisitions. During the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019, our property acquisitions ~~have~~did not ~~met~~meet the definition of a business because substantially all of the fair value iswas 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~~acquisitions did 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~~nine months ended ~~March 31,~~September 30, 2020 and 2019, we acquired 12 and 23 properties, respectively, that did not meet the definition of a business, and we capitalized approximately ~~$25,000~~$40,000 and ~~$65,000,~~$90,000, respectively, of acquisition-related transaction costs.

During the three months ended ~~March 31,~~September 30, 2020 and 2019, we expensed approximately $0.1 million and $0.2 million, respectively, of acquisition-related transaction costs that did not meet our capitalization policy during the respective periods. During the nine months ended September 30, 2020 and 2019, we expensed approximately $0.4 million and $0.8 million, respectively, of acquisition-related transaction costs that did not meet our capitalization 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 and nine months ended ~~March 31,~~September 30, 2020 and 2019, 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~~$5.9 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.

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,~~September 30, 2020, the gross amounts allocated to in-place lease intangibles were approximately $10.9 million and accumulated amortization of in-place lease intangibles totaled approximately $9.8 million. As of December 31, 2019, the gross amounts allocated to in-place lease intangibles were approximately $10.5 million and accumulated amortization of in-place lease intangibles totaled approximately ~~$8.3 million and~~ $7.1 ~~million, respectively.~~million.

The total estimated future amortization expense of intangible assets for the years ending December 31, 2020 and 2021 is approximately ~~$1.8~~$0.5 million and ~~$0.4~~$0.6 million, respectively.

The net carrying value of costs incurred in connection with our revolving credit facility are presented as debt issuance costs on our consolidated balance 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,~~September 30, 2020 and December 31, 2019, accumulated amortization of debt issuance costs related to our revolving credit facility totaled approximately ~~$0.3~~$0.6 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,~~September 30, 2020 and December 31, 2019, accumulated amortization of debt issuance costs related to non revolving debt totaled approximately ~~$18,000~~$0.1 million and $4,000, respectively.

Our Advisor ~~may fund~~has funded 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,~~has funded, 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~~recognized 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~~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. 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. Subsequent to the termination of our Primary Offering, we determined that total organization and offering costs did not exceed 3.5% of the gross proceeds received from the Primary Offering, and thus there was 0 reimbursement. 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 Former Dealer Manager ~~will receive~~received 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 Former Dealer Manager ~~does~~did not receive an upfront sales commission or dealer manager fee from the sales of Class W shares in the Primary Offering. In addition, participating broker-dealers of our Former Dealer Manager ~~receives~~receive 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 Former 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~~During the second quarter of 2020, as a result of the suspension of our Primary Offering, termination of our Former Dealer Manager ~~enters~~and the termination of our Primary Offering on September 11, 2020, we expected that the aggregate underwriting compensation from all sources would exceed 10% at a date in the future, and therefore, we will cease paying a portion of the accrued Class W dealer manager servicing fees. Accordingly, during the second quarter of 2020, we reversed a portion of our liability for future payment of Class W dealer manager servicing fees in excess of the 10% limitation, which resulted in an approximately $1.6 million reduction in Due to Affiliates and an increase in Additional Paid in Capital in the accompanying consolidated balance sheet. Subsequent to the termination of our Primary Offering, we determined that no additional adjustment to accrued Class W dealer manager servicing fees was required.

Our Former Dealer Manager entered into participating dealer agreements with certain other broker-dealers which ~~authorize~~authorized them to sell our shares. Upon sale of our shares by such broker-dealers, our Former Dealer Manager ~~will re-allow~~re-allowed 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 Former Dealer Manager ~~may~~ also ~~re-allow~~re-allowed 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 Former Dealer Manager, payment of attendance fees required for employees of our Former 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 Former Dealer Manager ~~will~~ also ~~receive~~received reimbursement of bona fide due diligence expenses; however, to the extent these due diligence expenses ~~cannot~~could not 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~~recorded 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.

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 ~~accordance with~~accumulated other comprehensive income (loss) as a separate component of equity. Transactions denominated in a currency other than the ~~provisions~~functional currency of the ~~Dealer Manager Agreement, we provided a 60-day termination notice to our Dealer Manager. See Note 11 – Subsequent Events.~~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 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.

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, effective on April 29, 2020. The share redemption program will remain suspended until its resumption is approved by the board, if ever. As a result, we were unable to honor redemption requests made during the nine months ended September 30, 2020.

For the year ended December 31, 2019, we received redemption requests totaling approximately $1.4 million (approximately 62,000 shares), approximately $0.7 million of which were fulfilled during the year ended December 31, 2019, with the remaining approximately $0.7 million included in accounts payable and accrued liabilities as of December 31, 2019, and fulfilled in January 2020. During the nine months ended September 30, 2020, we received redemption requests totaling approximately $0.9 million (approximately 39,000 shares); however, due to the suspension of our share redemption program, no share redemption requests were fulfilled.

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 notes payable at ~~March 31,~~September 30, 2020, and December 31, 2019. The estimated fair value of financial instruments ~~are~~is subjective in nature and ~~are~~is 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 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~~an election 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 isare 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.

The following summarizes the activity in real estate facilities during the ~~three~~nine months ended ~~March 31,~~September 30, 2020:

Real estate facilities
Balance at December 31, 2019	$	261,382,288		$	261,382,288
Facility acquisitions		17,568,907
Real estate facility acquisitions					33,987,389
Improvements and additions		806,297			1,872,731
Balance at March 31, 2020	$	279,757,492
Balance at September 30, 2020				$	297,242,408
Accumulated depreciation
Balance at December 31, 2019	$	(6,742,793	)	$	(6,742,793	)
Depreciation expense		(1,842,360	)		(5,764,652	)
Balance at March 31, 2020	$	(8,585,153	)
Balance at September 30, 2020				$	(12,507,445	)

The following table summarizes the purchase price ~~allocation~~allocations for our ~~acquisition~~acquisitions during the ~~three~~nine months ended ~~March 31,~~September 30, 2020:

Property	Acquisition Date	Real Estate Assets⁽¹⁾		Intangibles		Total⁽²⁾		2020 Revenue⁽³⁾		2020 Property Operating Loss⁽³⁾⁽⁴⁾			Acquisition Date	Real Estate Assets		Intangibles		Total⁽²⁾		2020 Revenue⁽³⁾		2020 Property Operating Income (Loss)⁽³⁾⁽⁴⁾
Escondido – CA	01/17/20	$	17,568,907	$	—	$	17,568,907	$	10,944	$	(98,369	)
Escondido –CA⁽¹⁾													01/17/20	$	17,568,907	$	—	$	17,568,907	$	184,986	$	(178,568	)
Punta Gorda –FL													06/18/20	$	16,418,482	$	444,000	$	16,862,482	$	287,140	$	149,769
		$	17,568,907	$	—	$	17,568,907	$	10,944	$	(98,369	)		$	33,987,389	$	444,000	$	34,431,389	$	472,126	$	(28,799	)

We have entered into various agreements with a subsidiary of SmartCentres, an unaffiliated third party, to acquire tracts of land and develop them into self storage facilities.

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

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

				Carrying Value of Investment								Carrying Value of Investment
	Location	Date Real Estate Venture Acquired Land	Equity Ownership %	March 31, 2020		December 31, 2019		Location	Date Real Estate Venture Acquired Land	Real Estate Venture Status	Equity Ownership %	September 30, 2020		December 31, 2019
Oshawa Property	Oshawa, Ontario	September 2018	50%	$	839,749	$	1,793,565	Oshawa, Ontario	September 2018	Under Development	50%	$	746,103	$	1,793,565
East York Property	East York, Ontario	January 2019	50%		6,904,770		7,069,314	East York, Ontario	January 2019	Commenced Operations June 16, 2020	50%		3,082,153		7,069,314
Brampton Property	Brampton, Ontario	September 2019	50%		3,601,466		3,249,402	Brampton, Ontario	September 2019	Under Development	50%		1,662,229		3,249,402
Vaughan Property	Vaughan, Ontario	August 2019	50%		3,351,442		2,902,858	Vaughan, Ontario	August 2019	Under Development	50%		1,410,566		2,902,858
Scarborough Property	Scarborough, Ontario	Expected in second half of 2020	50%		69,384		74,847	Scarborough, Ontario	August 2020	Under Development	50%		947,771		74,847
Kingspoint Property	Kingspoint, Ontario	Expected in first half of 2021	50%		24,074		26,209	Kingspoint, Ontario	Expected in the fourth quarter of 2020	Pre-Development	50%		32,073		26,209
				$	14,790,885	$	15,116,195					$	7,880,895	$	15,116,195

On July 9, 2020, we and SmartCentres, through the Oshawa, East York, Brampton and Vaughan joint venture partnerships (“the JV Properties”),entered into a master mortgage commitment agreement (the “MMCA”) with SmartCentres –Storage Finance LP (the “SmartCentres Lender”) (collectively, the “SmartCentres Financing”). The SmartCentres Lender is an affiliate of SmartCentres. The initial maximum amount available is approximately $60 million CAD ($45 million USD), however, the SmartCentres Financing includes an accordion feature such that borrowings pursuant thereto may be increased up to approximately $120 million CAD ($90 million USD) subject to certain conditions set forth in the MMCA. The proceeds of the SmartCentres Financing will be used to finance the development and construction of self storage facilities on the JV Properties. The initial draw on the SmartCentres Financing was made on July 30, 2020 for approximately $30 million CAD ($22.6 million USD). In August 2020, the JV Properties distributed the excess funds from the initial draw on the MMCA as a return of capital which totaled approximately $14 million CAD ($10.5 million USD) to each joint venture partner. As of September 30, 2020, the total loan balance was approximately $35 million CAD ($26.4 million USD). On October 28, 2020, the Scarborough joint venture partnership was added to the MMCA and ~~Kingspoint~~became a co-borrower with the JV Properties.

The SmartCentres Financing is secured by first mortgages on each of the JV Properties. Interest on the SmartCentres Financing is a variable annual rate equal to the aggregate of: (i) the BA Equivalent Rate, plus: (ii) a margin based on the External Credit Rating, plus (iii) a margin under the Senior Credit Facility, each as defined and described further in the MMCA. As of September 30, 2020, the total interest rate was approximately 2.95%.

The SmartCentres Financing matures on May 11, 2021, and may be extended annually as set forth in the MMCA. Monthly interest payments are initially capitalized on the outstanding principal balance. Upon a JV Property generating sufficient Net Cash Flow (as defined in the MMCA), the SmartCentres Financing provides for the commencement of quarterly payments of interest. The borrowings advanced pursuant to the SmartCentres Financing may be prepaid without penalty, subject to certain conditions set forth in the MMCA.

The SmartCentres Financing contains customary affirmative and negative covenants, agreements, representations, warranties and borrowing conditions (including a loan to value ratio of no greater than 70% with respect to each JV Property) and events of default, all as set forth in the MMCA. We serve as a full recourse guarantor with respect to 50% of the SmartCentres Financing.

In January 2019, one of our subsidiaries entered into 2a contribution ~~agreements~~agreement with a subsidiary of SmartCentres, ~~for 2 tracts~~to acquire a tract of land owned by SmartCentres and located in Scarborough, Ontario ~~(the “Scarborough~~(“Scarborough Land”~~) and Brampton, Ontario (the “KingspointLand,” and collectively with the Scarborough Land, the “Ontario II Lots”~~) in the Greater Toronto Area of Canada. ~~Upon~~

On August 7, 2020, we closed on the Scarborough Land, which is now owned by a limited partnership (the “Scarborough Limited Partnership”), in which we (through our subsidiaries) and SmartCentres (through its subsidiaries) are each a 50% limited partner and each have an equal ranking general partner in the Scarborough Limited Partnership. At closing, we subscribed for 50% of the ~~Ontario II Lots,~~units in the Scarborough Limited Partnership at an agreed upon subscription price of approximately $0.9 million CAD, representing a contribution equivalent to 50% of the agreed upon fair market value of the Scarborough Land. The Scarborough Limited Partnership intends to develop a self storage ~~facilities will be developed~~facility on ~~both~~the Scarborough Land.

In January 2019, one of our subsidiaries entered into a contribution agreement with a subsidiary of SmartCentres, to acquire a tract of land owned by SmartCentres and located in Brampton, Ontario (the “KingspointLand”) in the ~~Ontario II Lots in joint ventures with SmartCentres.~~ Greater Toronto Area of Canada.

Upon closing, the ~~Ontario II Lots~~Kingspoint Land it will ~~each~~ be owned by a limited partnership (the ~~“Ontario II~~“Kingspoint Limited ~~Partnerships”~~Partnership”), 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~~Kingspoint Limited Partnerships. It is intended that the ~~Ontario II~~Kingspoint Limited Partnerships ~~develop~~develops a self storage ~~facilities~~facility 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.~~land. At closing, we (through our subsidiaries) will subscribe for 50% of the units in the ~~Ontario II~~Kingspoint 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~~the land. ~~In some circumstances, if we fail to complete the Scarborough Land and~~ ~~KingspointLand acquisition, we may forfeit up to approximately $300,000 CAD and $300,000 CAD, respectively in earnest money.~~

Secured Debt	March 31, 2020			December 31, 2019			Interest Rate			Maturity Date	September 30, 2020			December 31, 2019			Interest Rate			Maturity Date
Revolving KeyBank Credit Facility	$	70,000,000		$	107,000,000			2.5	%	6/27/2022	$	44,000,000		$	107,000,000			1.9	%	6/27/2022
Katy Loan		2,150,742			2,182,207			6.4	%	9/1/2031		2,086,289			2,182,207			6.4	%	9/1/2031
KeyBank CMBS Loan		40,500,000			—			3.6	%	2/1/2030
CMBS Loan												40,500,000			—			3.6	%	2/1/2030
TCF Loan		30,542,500			—			3.9	%	3/30/2023		40,286,302			—			3.8	%	3/30/2023
Debt issuance costs, net		(811,023	)		(76,230	)						(790,141	)		(76,230	)
Total Secured Debt	$	142,382,219		$	109,105,977						$	126,082,450		$	109,105,977

The weighted average interest rate on our consolidated debt as of ~~March 31,~~September 30, 2020 was approximately ~~3.13%~~3.1%.

On July 31, 2018, the Company, through 6 special purpose entities (collectively, the “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 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 full and terminate the KeyBank Credit Facility. The Revolving KeyBank Credit Facility may be increased to 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 Revolving KeyBank Credit Facility (the “First Amendment”) with KeyBank. Under the terms of the First Amendment, we added an additional $45 million 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 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 Escondido Property we drew $9.0 million on the Revolving KeyBank Credit 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 a mortgage loan (the “CMBS Loan”), see CMBS Loan section below for further details. We used $40 million of the proceeds from the CMBS Loan to pay down the Revolving KeyBank Credit Facility. As a result of this, 7 properties (Jensen Beach, Texas City, Riverside, Las Vegas I, Puyallup, Las Vegas II, 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,~~

September 30, 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 of three years, maturing on June 27, 2022, with two one-year extension options subject to certain conditions outlined further in the Revolving KeyBank Credit Facility. Monthly payments due pursuant to the Revolving KeyBank Credit Facility are interest-only and the principal

balance is due at maturity. The Revolving KeyBank Credit Facility bears interest based on the type of borrowing. The ABR Loans bear interest at the lesser of (x) the Alternate Base Rate (as defined in the Revolving KeyBank Credit Facility) plus the Applicable Rate, or (y) the Maximum Rate (as defined in the Revolving KeyBank Credit Facility). The Eurodollar Loans bear interest at the lesser of (a) the Adjusted LIBO Rate (as defined in the Revolving KeyBank Credit Facility) for the Interest Period in effect plus the Applicable Rate, or (b) the Maximum Rate (as defined in the Revolving KeyBank Credit Facility). The Applicable Rate means the percentage rate corresponding to our total leverage, which are as follows for Eurodollar Loans: (1) 225 basis points with a total leverage ratio greater than or equal to 55%; (2) 200 basis points with a total leverage ratio greater than or equal to 45% but less than 55%; (3) 175 basis points with a total leverage ratio greater than or equal to 35%35% but less than 45%; and (4) 150 basis points with a total leverage ratio less than 35%. As of ~~March 31,~~September 30, 2020, the total interest rate was approximately ~~2.5%~~1.9% which was based on LIBOR plus ~~150~~175 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%~~3.0% thereon through July 1, 2021.

The Revolving KeyBank Credit Facility is fully recourse, jointly and severally, to each of the Borrowers and is secured by cross-collateralized first mortgage liens on the Mortgaged Properties (as defined in the Revolving KeyBank Credit Facility). As of ~~March 31,~~September 30, 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. Pursuant to that certain guaranty (the “KeyBank Guaranty”), dated as of June 27, 2019, in favor of the Lenders, 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”~~“Original 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”).

On September 2, 2020, the Company, the Original Borrowers and TCF amended the TCF Loan Agreement, whereby a special purpose entity of the Company owning the Punta Gorda property, became a co-borrower and pledged its property as additional collateral for the TCF Loan. Accordingly, we received an increase of approximately $9.2 million to the loan commitment, which was immediately drawn (the “Additional Proceeds”), for an aggregate commitment of approximately $40.7 million. Other than as described in the foregoing, none of the other material terms of the TCF Loan were changed by the loan amendment.

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,~~September 30, 2020, the interest rate on the TCF Loan was ~~approximately 3.9%~~3.75%. 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,~~September 30, 2020:

2020	$	97,457		$	33,004
2021		137,392			137,392
2022		70,146,419			44,146,418
2023		30,698,538			40,442,340
2024		166,290			166,287
2025 and thereafter		41,947,146			41,947,150
Total payments		143,193,242			126,872,591
Debt issuance costs, net		(811,023	)		(790,141	)
Total	$	142,382,219		$	126,082,450

Our Advisory Agreement with our Advisor and our Dealer Manager Agreement with our Former Dealer Manager entitle our Advisor and our Former 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~~were 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,~~funded, 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~~consisted 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.Subsequent to the termination of our Primary Offering, we determined that total organization and offering costs did not exceed 3.5% of the gross proceeds received from the Primary Offering, and thus there was no reimbursement.

We do 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,~~funded, 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 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. Subsequent to the termination of our Primary Offering, we determined that total organization and offering costs did not exceed 3.5% of the gross proceeds received from the Primary Offering, and thus there was no reimbursement.

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 Primary Offering.Subsequent to the termination of our Primary Offering, we determined that total organization and offering costs will not exceed 15% of the gross proceeds received from the Primary Offering, and thus there will be no reimbursement. 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,~~September 30, 2020 and 2019, our aggregate annual operating expenses, as defined, did not exceed the thresholds described above.

On April 17, 2020, in accordance with provisions of the Dealer Manager Agreement, we provided a 60-day termination notice to our Former Dealer Manager and pursuant to such notice, the Dealer Manager Agreement was terminated on June 16, 2020. In connection with our Primary Offering, our Former Dealer Manager ~~receives~~received 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 Former Dealer Manager ~~does~~did not receive an upfront sales commission or dealer manager fee from sales of Class W shares in the Primary Offering. In addition, participating broker-dealers of our Former Dealer Manager ~~receives~~receive 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 Former 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. During the second quarter of 2020, as a result of the suspension of our Primary Offering, termination of our Former Dealer Manager and the termination of our Primary Offering on September 11, 2020, we expected that the aggregate underwriting compensation from all sources would exceed 10% at a date in the future, and therefore, we will cease paying a portion of the accrued Class W dealer manager servicing fees. Accordingly, during the second quarter of 2020, we reversed a

portion of our liability for future payment of Class W dealer manager servicing fees in excess of the 10% limitation, which resulted in an approximately $1.6 million reduction in Due to Affiliates and an increase in Additional Paid in Capital in the accompanying consolidated balance sheet.Subsequent to the termination of our Primary Offering, we determined that no additional adjustment to accrued Class W dealer manager servicing fees was required.

Our Former Dealer Manager ~~enters~~entered into participating dealer agreements with certain other broker-dealers which ~~authorizes~~authorized them to sell our shares. Upon sale of our shares by such broker-dealers, our Former 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 Former 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 Former Dealer Manager, payment of attendance fees required for employees of our Former 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 Former Dealer Manager ~~will~~ also ~~receive~~received 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 Primary Offering. We ~~record~~recorded 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.~~

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 customers at our properties and is entitled to substantially all of the benefits of such 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. Pursuant to our transfer agent agreement, our Transfer Agent provides transfer agent and 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 a transfer agent, including, but not limited to: providing customer service to our stockholders, processing the distributions and any servicing fees with respect to our 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 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.~~ 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, 2019 and the ~~three~~nine months ended ~~March 31,~~September 30, 2020, as well as any related amounts payable as of December 31, 2019 and ~~March 31,~~September 30, 2020:

	Year Ended December 31, 2019						Three Months Ended March 31, 2020						Year Ended December 31, 2019						Nine Months Ended September 30, 2020
	Incurred		Paid		Payable		Incurred		Paid		Payable		Incurred		Paid		Payable		Incurred		Paid		Adjustment⁽²⁾			Payable
Expensed
Operating expenses (including organizational costs)	$	1,247,017	$	1,200,196	$	73,437	$	445,758	$	345,861	$	173,334	$	1,247,017	$	1,200,196	$	73,437	$	1,287,391	$	1,209,446	$	-		$	184,635
Asset management fees		2,027,231		1,989,408		45,656		771,186		802,886		13,956		2,027,231		1,989,408		45,656		2,358,356		2,398,742		-			5,270
Property management fees		1,014,881		1,014,881		—		338,918		338,918		—		1,014,881		1,014,881		—		1,032,442		1,032,442		-			—
Transfer Agent expenses		275,899		273,542		12,900		84,600		87,626		9,874		275,899		273,542		12,900		275,771		277,530		-			11,141
Acquisition expenses		652,167		652,167		—		150,058		150,058		—		652,167		652,167		—		342,192		342,192		-			—
Capitalized
Acquisition expenses		44,740		44,740		—		10,800		10,800		—		44,740		44,740		—		10,800		10,800		-			—
Additional Paid-in Capital
Selling commissions		4,702,176		4,714,469		33,020		989,641		937,019		85,642		4,702,176		4,714,469		33,020		1,232,385		1,265,405		-			-
Dealer Manager fees		1,774,215		1,772,811		17,657		340,146		329,567		28,236		1,774,215		1,772,811		17,657		432,389		450,046		-			-
Stockholder Servicing Fees and Dealer Manager Servicing Fees⁽¹⁾		2,661,417		729,179		3,528,011		346,550		237,819		3,636,742		2,661,417		729,179		3,528,011		417,202		744,996		(1,585,682	)		1,614,057
Offering costs		266,409		254,946		29,765		82,483		43,833		68,415		266,409		254,946		29,765		97,883		127,648		-			-
Total	$	14,666,152	$	12,646,339	$	3,740,446	$	3,560,140	$	3,284,387	$	4,016,199	$	14,666,152	$	12,646,339	$	3,740,446	$	7,486,811	$	7,859,247	$	(1,585,682	)	$	1,815,103

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 Programs at our properties.

In order to protect the interest of the Property Manager in receiving these revenues in light of the fact that we control the properties and, hence, the ability of the Property Manager to receive such revenues, we and an affiliate of our Property Manager agreed to transfer our respective rights in such revenue to a joint venture entity owned 0.1% by our TRS subsidiary and 99.9% by our Property Manager’s affiliate (the “PM Affiliate”). Under the terms of the 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 Programs and the PM Affiliate will receive the other 99.9% of such net revenues. The 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 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 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 joint venture at 95% of fair market value. For the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019, an affiliate of our Property Manager received net revenue from this joint venture of approximately ~~$170,000~~$610,000 and ~~$60,000,~~$260,000, 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~~nine months ended ~~March 31,~~September 30, 2020 and 2019, we paid approximately ~~$3,000~~$8,000 and ~~$1,500~~$7,000 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. 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.

On July 30, 2020, we filed with the SEC a Registration Statement on Form S-3, which registered up to an additional $50 million in shares under our distribution reinvestment plan. The DRP Offering may be terminated at any time upon 10 days’ prior written notice to stockholders. As of ~~March 31,~~September 30, 2020, we have sold approximately ~~205,000~~280,000 Class A shares, ~~152,000~~220,000 Class T shares and ~~34,000~~50,000 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 share redemption program will remain suspended until its resumption is approved by the board, if ever. As a result, ~~of our board of directors approving an estimated net asset value per share on June 20, 2019,~~we were not able to honor redemption requests made during the ~~per share price for the repurchase of a given class of shares is equal to the then-current estimated net asset value per share for such class of shares.~~nine months ended September 30, 2020.

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 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, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			September 30, 2019			December 31, 2019			March 31, 2020			June 30, 2020			September 30, 2020
Total revenues	$	3,459,128		$	4,309,571		$	4,502,793		$	4,976,849		$	5,234,189		$	4,502,793		$	4,976,849		$	5,234,189		$	5,373,405		$	6,094,546
Total operating expenses		4,779,831			5,400,052			5,929,491			6,550,524			7,319,352			5,929,491			6,550,524			7,319,352			7,029,939			7,440,759
Operating loss		(1,320,703	)		(1,090,481	)		(1,426,698	)		(1,573,675	)		(2,085,163	)		(1,426,698	)		(1,573,675	)		(2,085,163	)		(1,656,534	)		(1,346,213	)
Net loss		(2,416,506	)		(2,752,178	)		(1,959,538	)		(2,440,506	)		(3,582,750	)		(1,959,538	)		(2,440,506	)		(3,582,750	)		(2,892,936	)		(2,906,069	)
Net loss attributable to common stockholders		(2,412,725	)		(2,748,977	)		(1,957,502	)		(2,438,027	)		(3,579,544	)		(1,957,502	)		(2,438,027	)		(3,579,544	)		(2,890,446	)		(2,903,717	)
Net loss per Class A share-basic and diluted		(0.43	)		(0.37	)		(0.24	)		(0.27	)		(0.36	)		(0.24	)		(0.27	)		(0.36	)		(0.28	)		(0.28	)
Net loss per Class T share-basic and diluted		(0.43	)		(0.37	)		(0.24	)		(0.27	)		(0.36	)		(0.24	)		(0.27	)		(0.36	)		(0.28	)		(0.28	)
Net loss per Class W share-basic and diluted		(0.43	)		(0.37	)		(0.24	)		(0.27	)		(0.36	)		(0.24	)		(0.27	)		(0.36	)		(0.28	)		(0.28	)

In 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 30, 2020, our board of directors ~~decided to change~~changed its distribution authorizations from a quarterly to monthly authorization starting with the second quarter of ~~distributions~~2020.

On September 25, 2020, the board of directors changed its distribution authorizations from monthly back to quarterly for the ~~second~~fourth quarter of 2020 and the foreseeable future. In addition, ~~on March 30, 2020, our~~the board ~~of directors declared~~authorized a daily distribution rate ~~for the month of April 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 ~~April~~October 1, 2020 and ending ~~April 30,~~December 31, 2020. In connection with ~~this distribution,~~these distributions, 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.

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~~$15.4 million, plus closing and acquisition costs. We expect the acquisition of the San Gabriel Property to close in the ~~first~~second half of 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 and/or 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.

On March 17, 2020, a subsidiary of our Sponsor assigned its interest in a purchase and sale agreement with an unaffiliated third party for the acquisition of a self storage facility located in Punta Gorda, Florida (the “Punta Gorda Property”) to one of our subsidiaries. The purchase price for the Punta Gorda Property is approximately $17.5 million, plus closing and acquisition costs. We expect the acquisition of the Punta Gorda Property to close in the second or third quarter of 2020. We expect to fund such acquisition with net proceeds from our offering and/or debt financing. If we fail to acquire the Punta Gorda Property, we may also forfeit approximately $175,000 in earnest money as a result.

~~Piscataway Property – Termination of Purchase and Sale Agreement~~Potential Merger with SmartStop Self Storage REIT, Inc.

On ~~August 7, 2019,~~November 10, 2020, the Company, SmartStop and Merger Sub entered into the Merger Agreement in connection with the Merger. The Merger Agreement provides that SmartStop will acquire the Company by way of a ~~subsidiary~~merger of the Company with and into Merger Sub, with Merger Sub being the surviving entity in the Merger. The special committee (the “Committee”) of our ~~Sponsor assigned its interest in a purchase~~board of directors, our board, the special committee of the board of directors of SmartStop and ~~sale agreement, as subsequently amended, with~~the board of directors of SmartStop have approved the Merger, the Merger Agreement and the transactions contemplated by the Merger Agreement. In addition, the Committee and our board have approved, and recommended that our stockholders

approve, an ~~unaffiliated third party for~~amendment to the ~~acquisition~~Company’s First Articles of ~~a self storage facility located in Piscataway, New Jersey~~Amendment and Restatement to remove the limitations on “roll-up transactions” (the ~~“Piscataway Property”~~“Charter Amendment”), which is necessary to ~~one of our subsidiaries. The purchase price for~~consummate the ~~Piscataway Property was approximately $8.5 million. On April 30, 2020,~~Merger.

Pursuant to the ~~Piscataway Property purchase and sale agreement was terminated according to its~~ terms and ~~our deposit~~subject to the conditions set forth in the Merger Agreement, at the effective time of ~~$200,000 was returned in full. We~~the Merger (the “Merger Effective Time”), each Class A share, Class T share, and Class W share issued and outstanding immediately prior to the Merger Effective Time will ~~also~~ be ~~reimbursed for certain~~converted into the right to receive 2.1875 shares of ~~our acquisition related costs~~SmartStop’s Class A Common Stock, $0.001 par value per share (the “SmartStop Common Stock”), subject to the treatment of fractional shares in accordance with the ~~agreement.~~

As of May 1, 2020, in connection with our Offerings we have issued approximately 5.3 million Class A shares for gross offering proceeds of approximately $132.0 million, approximately 4.0 million Class T shares for gross offering proceeds of approximately $95.7 million and approximately 1.1 million Class W shares for gross offering proceeds of approximately $25.0 million. Merger Agreement (the “Merger Consideration”). This exchange ratio represents an increase of $0.10 per share from the Company’s most recent estimated Net Asset Value (NAV) of $22.65, when compared to SmartStop’s most recent estimated NAV of $10.40 per share. The transaction values the Company at approximately $370 million, based on September 30, 2020 share counts and debt principal balances outstanding, and using the agreed exchange ratio and SmartStop’s estimated NAV. Immediately prior to the Merger Effective Time, each restricted share of SST IV Common Stock granted under the Company’s Employee and Director Long-Term Incentive Plan will become fully vested and non-forfeitable, and at the Merger Effective Time will be converted into the right to receive the Merger Consideration.

~~Subsequent~~The Merger Agreement contains customary representations, warranties and covenants, including covenants relating to ~~March 31, 2020,~~ the ~~global economy has continued to be severely impacted by~~conduct of the ~~COVID-19 pandemic, including in~~respective businesses of the ~~United States~~Company and inSmartStop during the ~~markets in which we operate. The COVID-19 pandemic~~period between the execution of the Merger Agreement and the ~~resulting effects, including shutdowns~~earlier of the completion of the Merger 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~~termination 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~~its terms. The closing of the ~~Dealer Manager~~Merger (the “Closing”) is subject to and conditioned on the approval of the Merger and the Charter Amendment by the affirmative vote of holders of not less than a majority of all outstanding shares of our common stock (the “Stockholder Approvals”). Pursuant to the terms of the Merger Agreement, ~~we provided a 60-day termination notice~~the Closing is also subject to ~~our Dealer Manager.~~

~~Based upon various factors,~~ other customary conditions, including the ~~uncertainty~~delivery of certain documents and legal opinions, the accuracy of the representations and warranties of the parties (subject to the materiality standards contained in the Merger Agreement), the effectiveness of the registration statement on Form S-4 to be filed by SmartStop to register the shares of the SmartStop Common Stock to be issued as Merger Consideration, and the absence of a “SST IV Material Adverse Effect” or “SmartStop Material Adverse Effect” (as each term is defined in the Merger Agreement). The Closing is not subject to a financing condition or the approval of SmartStop’s stockholders.

The Merger Agreement prohibits the Company and its subsidiaries and representatives from soliciting, providing information or entering into discussions concerning proposals relating to alternative business combination transactions, subject to certain limited exceptions. The Merger Agreement also provides that at any time prior to receipt of the ~~ongoing COVID-19 outbreak~~Stockholder Approvals, the Company and its ~~potential economic impact, the status of fundraising~~representatives may, in certain circumstances, make an “Adverse Recommendation Change” (as that term is defined in the ~~non-traded REIT industry due~~Merger Agreement) and terminate the Merger Agreement, subject to ~~such uncertainty, and~~complying with certain conditions set forth in the ~~approval by our board of directors~~Merger Agreement.

In the event of the termination of the ~~Dealer Manager~~Merger Agreement and the Company’s entry into an alternative transaction with respect to a superior proposal, as well as under other specified circumstances, the Company will be required to pay to SmartStop a termination payment of $7.2 million. In addition, the Merger Agreement provides for customary expense reimbursements under specified circumstances set forth in the Merger Agreement.

We expect the Merger to close during the first half of 2021; however, there is no guarantee that the Merger will be consummated.

Concurrently with the entry into the Merger Agreement, (i) the Company, our Operating Partnership, and our Advisor, entered into a termination agreement (the “Termination Agreement”), pursuant to which, among other things, the Advisory Agreement, dated as of March 3, 2017, by and among the Company, our Operating Partnership, and our Advisor will terminate upon the Merger Effective Time without any payment to our Advisor, and (ii) the Company, our Operating Partnership, and SmartStop Storage Advisors, LLC, a subsidiary of SmartStop (“SSA”), entered into a Redemption of Special Limited Partner Interest Agreement (the “Redemption Agreement”), pursuant to which the special limited partner interest in our Operating Partnership held by SSA will be redeemed by our Operating Partnership immediately prior to the Merger Effective Time, without any distribution or other payment to SSA.

In connection with the Merger Agreement, on ~~April 17,~~November 10, 2020, ~~our~~the board of directors approved the suspension of ~~our Primary Offering,~~the DRP with an effective asdate of ~~April 30,~~November 20, 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 Therefore, further distributions will be paid ~~per Class T share~~in cash to all stockholders unless and until the DRP is reinstated. The Board may amend, suspend or terminate the DRP for any reason upon 10 days’ written notice to the ~~stockholders~~participants 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, 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 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 and property management ~~investment management,~~businesses and ~~Tenant Programs~~certain joint venture interests (the “Self Storage Platform”) of SAM, along with certain other assets ~~including SAM’s sole membership interest in SmartStop Storage Advisors, LLC, which owned all~~ of SAM (collectively, the ~~membership interests of our advisor and our property manager.~~“Self Administration Transaction”). 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”) of our Offering of shares of our common stock, as described below. Our Sponsor owns 100% of Strategic Storage Advisor IV, LLC (our “Advisor”) and 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, 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 termination of our Dealer Manager Agreement. The termination of our Public Offering occurred on September 13, 2020.On July 30, 2020, prior to the termination of our Public Offering, we filed with the SEC a Registration Statement on Form S-3, which registered up to an additional $50 million in shares under our distribution reinvestment plan (our “DRP Offering”). The DRP Offering may be terminated at any time upon 10 days’ prior written notice to stockholders.

During the third quarter of 2020, our board of directors established a special committee comprised solely of its independent directors to conduct a review of a potential strategic transaction with SmartStop. As a result of this process, on November 10, 2020, the Company, SmartStop, and Merger Sub, entered into the Merger Agreement in ~~July 2019. See our Current Report on Form 8-K filed~~connection with the ~~SEC on June 21, 2019 for~~Merger. The Merger Agreement provides that SmartStop will acquire the Company by way of a ~~description~~merger of the ~~methodologies~~Company with and ~~assumptions used~~into Merger Sub, with Merger Sub being the surviving entity in the Merger. See Note 11, Subsequent Events for additional information related to ~~determine,~~the Merger and other transactions entered into in conjunction with the ~~limitations of, the estimated value per share.~~Merger Agreement.

As of ~~March 31,~~September 30, 2020, we wholly owned 2324 operating self storage ~~facilities~~properties located in nine states (Arizona, California, Florida, Nevada, New Jersey, North Carolina, Texas, Virginia and Washington) comprising approximately ~~17,020~~18,000 units and ~~approximately 1,935,000~~2.0 million net rentable square ~~feet.~~

~~As of March 31, 2020, we owned~~feet as well as 50% equity interests in ~~four~~five unconsolidated real estate ventures located in the Greater Toronto ~~Area that are intended to be~~Area. Our unconsolidated real estate ventures consist of one operating self storage property and four parcels of land being 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 ~~two~~one other contribution ~~agreements~~agreement with respect to ~~two separate tracts~~a tract of land in the Greater Toronto Area owned by SmartCentres. For more information, see Note 4 of the Notes to the Consolidated Financial Statements contained in this report.

As of ~~March 31,~~September 30, 2020, our wholly owned 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	%		1		720		79,000		3.9	%		80	%	⁽⁵⁾		1.1	%
California		2		1,620		154,000		8.0	%		88	%	⁽⁶⁾		3.7	%		2		1,620		154,000		7.5	%		69	%	⁽⁶⁾		4.4	%
Florida		4		3,030		413,100		21.3	%		89	%	⁽⁷⁾		21.3	%		5		3,830		519,100		25.4	%		86	%	⁽⁷⁾		22.2	%
Nevada		2		1,220		131,500		6.8	%		93	%			9.1	%		2		1,220		131,500		6.4	%		94	%			8.6	%
New Jersey		1		1,900		158,000		8.2	%		73	%			13.2	%		1		1,900		158,000		7.7	%		96	%			13.0	%
North Carolina		2		1,910		176,500		9.1	%	N/A			⁽⁸⁾		7.8	%		2		1,910		176,500		8.6	%		88	%			7.7	%
Texas		8		4,610		605,900		31.3	%		89	%			30.1	%		8		4,610		605,900		29.7	%		92	%			28.5	%
Virginia		1		830		71,000		3.7	%	N/A			⁽⁹⁾		5.1	%		1		830		71,000		3.5	%		92	%			5.5	%
Washington		2		1,180		146,000		7.5	%		92	%			9.5	%		2		1,180		146,000		7.3	%		92	%			9.0	%
		23		17,020		1,935,000		100	%		89	%	⁽³⁾		100	%		24		17,820		2,041,000		100	%		89	%	⁽³⁾		100	%

We have entered into joint venture agreements with a subsidiary of SmartCentres, an unaffiliated third party, for tracts of land owned by SmartCentres that are intended to be developed into self storage facilities. We account for these investments using the equity method of accounting and they will be stated at cost and adjusted for our share of net earnings or losses and reduced by distributions. Equity in earnings (loss) will generally be recognized based on our ownership interest in the earnings of each of the unconsolidated investments. On June 16, 2020, the East York property obtained certificate of occupancy and commenced operations, with initial occupancy of 0%. The occupancy was approximately 15% as of September 30, 2020.

The following table summarizes our investments in unconsolidated real estate ventures as of September 30, 2020:

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.

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. 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, 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~~Since the beginning of the ~~global~~ COVID-19 pandemic in March 2020, our operations have been affected by COVID-19 in various ways, including but not limited to, national and local ~~governments in every jurisdiction in which we operate have issued~~jurisdictions issuing orders causing temporary restrictions on our business in certain markets, temporary shutdowns of ~~businesses~~certain of our facilities, customer behavior and ~~restrictions on the ability of residents to conduct business or engage in certain activities outside of~~ their ~~homes,~~comfort levels visiting our facilities, as well as ~~restrictions~~the broader economic impacts of COVID-19. The financial impact associated with these items were most significant in the second quarter of 2020, with customer demand for self storage resuming at or above normalized levels during the third quarter of 2020.

Since the beginning of March 2020, we have been focused on ~~certain commercial activities. These orders have impacted,~~creating a safe environment for our customers and ~~will continue to impact, our facilities and operations. To ensure~~employees given the ~~safety~~spread of ~~our personnel and customers we~~COVID-19. We have instituted the use of masks, ~~gloves,~~plastic dividers, 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 also 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,~~Additionally, we have ~~seen reductions~~expanded our options for customers to rent units via contactless means, including directly through our website and call center. Implementing additional safety measures, including personal protective equipment, as well as various field personnel one-time cash bonuses, resulting in increased property operating expenses during 2020.

Various jurisdictions issued orders or proclamations impacting our ~~move-in volumes which have been partially offset by lower move-out volumes.~~ability to charge certain fees, conduct auctions or increase our rental rates. Beginning in mid-March, we elected to suspend auctions and rate increases for our existing customers, as well as suspend or waive certain fees. At the end of the second quarter 2020, in certain jurisdictions, we resumed certain of the foregoing operating procedures on a modified basis, including auctions and charging late fees. While many of the restrictions initially implemented lapsed during the third quarter, we are still subject to some restrictions at certain locations. To date there has been no significant change in our rent collections. However, rent collections could be impacted by prolonged economic stress and unemployment, which could affect our customers’ ability to pay rent ~~which~~and thus 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,~~

We experienced reduced rental activity during late March and April, 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 producedlower prices offered by our ~~facilities. Concerns relating to COVID-19 have also affected, and could continue to affect, our on-site staffing,~~competitors, 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~~caused lower rental rates ~~to existing customers. Beginning in mid-March, we elected to suspend all auctions and rate increases~~ for our ~~existing~~incoming customers ~~as well as suspend certain fees from being charged.~~during the second quarter. As a result of market conditions, and the suspension of existing customer rate increases and certain forgone fees, we ~~have seen~~saw a negative impact on our ~~revenues.~~revenues in the second quarter.

Many of these factors improved throughout the third quarter, along with increased self storage demand, resulting in revenue returning to more normalized seasonal levels. Our rental activity during the third quarter was strong, we were able to resume existing customer rate increases in most markets, customer collections remained relatively consistent, and our asking rates to new customers continued to improve on a year-over-year basis.

Below is a summary of the business indicators, drivers, and metrics which were impacted by the COVID-19 pandemic for the third quarter of 2020 as compared to the second quarter 2020:

The ultimate extent and duration of the ~~impact of~~COVID-19 pandemic and the ~~COVID-19 outbreak,~~resulting impact, including the corresponding governmental orders or broader economic condition and any associated impact 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-~~packing and ~~storage-related~~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,~~September 30, 2020 and 2019, we owned 2324 and 1617 self storage facilities, respectively.

Our operating results for the three months 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 The comparability 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, 2020 and 2019. Operating results in future periods will depend on theour results of operations ~~of these properties~~was significantly affected by our acquisition activity in 2019 and ~~the real estate properties that we acquire in the future.~~2020 as listed below.

Comparison of ~~Operating Results for~~ the Three Months Ended ~~March 31,~~September 30, 2020 and 2019

Total revenues for the three months ended ~~March 31,~~September 30, 2020 and 2019 were approximately ~~$5.2~~$6.1 million and ~~$3.5~~$4.5 million, respectively. The increase in total revenues is primarily attributable to a full quarter of operations for 2224 properties in the third quarter of 2020, compared to a full quarter of operations for 16 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~~third quarter of 2019. We expect total revenues to increase in the future commensurate with our future acquisition activity and lease-up of our non-stabilized properties.

Property operating expenses for the three months ended ~~March 31,~~September 30, 2020 and 2019 were approximately ~~$2.2~~$2.5 million (approximately ~~42%~~41% of total revenues) and ~~$1.1~~$1.7 million (approximately ~~33%~~37% 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 2224 properties in the third quarter of 2020, compared to a full quarter of operations for 16 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~~third quarter of 2019. The increase in property operating expenses as a 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 2019 and the first ~~quarter~~two quarters of 2020. We expect property operating expenses to increase in the future as our operational activity 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,~~September 30, 2020 and 2019 were approximately ~~$1.1~~$1.2 million and ~~$0.6~~$0.8 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 2224 properties in the third quarter of 2020, compared to a full quarter of operations for 16 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~~third quarter of 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,~~September 30, 2020 and 2019 were approximately ~~$0.7~~$0.9 million and ~~$0.5~~$0.7 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~~professional expense and board of directors costs ~~commensurate with~~related to our evaluation of and entry into the ~~increase in our operational activity.~~Merger Agreement. 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,~~September 30, 2020 and 2019 were approximately ~~$3.1~~$2.7 million and ~~$2.2~~$2.6 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 2224 properties in the third quarter of 2020, compared to a full quarter of operations for 16 properties and partial quarter of operations for one property acquired in the ~~first~~third quarter of ~~2020, compared to a full quarter~~2019, partially offset by certain of ~~operations for 14 properties~~our intangible assets associated with in-place leases being fully amortized during 2019 and ~~partial quarter of operations for the two properties acquired in the first quarter of 2019.~~2020. 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,~~September 30, 2020 and 2019 were approximately $0.1 million and $0.2 million, ~~in each period.~~respectively. Acquisition expenses primarily 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-~~expenses - affiliates to fluctuate in the future commensurate with our acquisition activity.

Other property acquisition expenses for the three months ended ~~March 31,~~September 30, 2020 and 2019 were approximately ~~$35,000~~$4,000 and ~~$0.2~~$0.1 million, respectively. Acquisition expenses primarily 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,~~September 30, 2020 and 2019 was approximately ~~$1.0~~$1.1 million and ~~$0.9~~$0.5 million, respectively. The increase in interest expense is primarily attributable to debt obtained in conjunction with certain of the properties we acquired subsequent to ~~March 31,~~September 30, 2019 offset by lower interest rates onrelated to the KeyBank Revolving Credit Facility, the CMBS Loan, and the ~~CMBS~~TCF 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,~~September 30, 2020 and 2019 were approximately ~~$0.5~~$0.4 million and ~~$0.2~~$0.1 million, respectively. The increase in interest expense – debt issuance costs was primarily due to the write off of approximately ~~$0.3~~$0.2 million of debt issuance costs ~~related to the new CMBS Loan that were expensed~~ in accordance with GAAP during the ~~quarter~~three months ended ~~March 31,~~September 30, 2020. We expect interest expense – debt issuance costs to fluctuate in the future commensurate with our future financing activity.

Same-Store Facility Results – Three months ended ~~March 31,~~September 30, 2020 and 2019

The following table sets forth operating data for our same-store facilities (those properties included in the consolidated results of operations since ~~January~~July 1, 2019) for the three months ended ~~March 31,~~September 30, 2020 and 2019. We consider the following data to be meaningful as this allows for the comparison of results without the effects of acquisition or lease up activity.

Our same-store revenue increased by approximately $0.1 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to an increase in ~~same-store revenue was primarily the result of increased~~ average physical occupancy of approximately ~~1.8%~~3.9%, partially 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.~~lower rates.

Our same-store property operating expenses increased by approximately ~~$150,000~~$0.2 million for the three months ended ~~March 31,~~September 30, 2020 compared to the three months ended ~~March 31,~~September 30, 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:

	For the Three Months Ended March 31,						For the Three Months Ended September 30,
	2020			2019			2020			2019
Net loss	$	(3,579,544	)	$	(2,412,725	)	$	(2,903,717	)	$	(1,957,502	)
Adjusted to exclude:
Asset management fees (1)		771,186			394,918			810,700			492,559
General and administrative		672,657			473,876			920,347			672,582
Depreciation		1,881,712			1,061,388			2,071,758			1,261,774
Intangible amortization expense		1,260,700			1,115,227			673,465			1,340,317
Acquisition expenses—affiliates		150,058			210,822			74,546			159,371
Other property acquisition expenses		34,957			181,444			4,327			74,074
Interest expense		998,735			853,808			1,067,673			476,423
Interest expense—debt issuance costs		503,387			244,314			376,783			61,784
Equity in loss of unconsolidated real estate venture								154,052			-
Other		(4,535	)		(2,319	)		(38,652	)		(5,367	)
Total property operating income	$	2,689,313		$	2,120,753		$	3,211,282		$	2,576,015

Total revenues for the nine months ended September 30, 2020 and 2019 were approximately $16.7 million and $12.3 million, respectively. The increase in total revenues is primarily attributable to a full period of operations for 22 self storage facilities and partial period of operations for two self storage facilities acquired during the first two quarters of 2020, compared to a full period of operations for 14 self storage facilities and partial period of operations for three self storage facilities acquired during the first three quarters of 2019. We expect total revenues to increase in the future commensurate with our future acquisition activity and lease-up of our non-stabilized properties.

Property operating expenses for the nine months ended September 30, 2020 and 2019 were approximately $6.9 million (approximately 41% of total revenues) and $4.1 million (approximately 34% 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 period of operations for 22 self storage facilities and partial period of operations for two self storage facilities acquired during the first two quarters of 2020, compared to a full period of operations for 14 self storage facilities and partial period of operations for three self storage facilities acquired during the first three quarters of 2019. The increase in property operating expenses as a 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 2019 and the first two quarters of 2020. We expect property operating expenses to increase in the future as our operational activity increases but decrease as a percentage of total revenues as we lease-up our non-stabilized properties.

Property operating expenses – affiliates for the nine months ended September 30, 2020 and 2019 were approximately $3.4 million and $2.1 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 period of operations for 22 self storage facilities and partial period of operations for two self storage facilities acquired during the first two quarters of 2020, compared to a full period of operations for 14 self storage facilities and partial period of operations for three self storage facilities acquired during the first three quarters of 2019. We expect property operating expenses – affiliates to increase in the future as our operational activity increases.

General and administrative expenses for the nine months ended September 30, 2020 and 2019 were approximately $2.5 million and $1.8 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 professional expense and board of directors costs related to our evaluation of and entry into the Merger Agreement and an increase in costs 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 nine months ended September 30, 2020 and 2019 were approximately $8.6 million and $7.3 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 period of operations for 22 self storage facilities and partial period of operations for two self storage facilities acquired during the first two quarters of 2020, compared to a full period of operations for 14 self storage facilities and partial period of operations for three self storage facilities acquired during the first three quarters of 2019, partially offset by certain of our intangible assets associated with in-place leases being fully amortized during 2019 and 2020. We expect depreciation and amortization expense to increase in future periods commensurate with our future acquisition activity.

Acquisition expenses – affiliates for the nine months ended September 30, 2020 and 2019 were approximately $0.3 million and $0.5 million, respectively. Acquisition expenses primarily 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 nine months ended September 30, 2020 and 2019 were approximately $0.1 million and $0.3 million, respectively. Acquisition expenses primarily 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 nine months ended September 30, 2020 and 2019 was approximately $3.1 million and $2.1 million, respectively. The increase in interest expense is primarily attributable to debt obtained in conjunction with certain of the properties we acquired subsequent to September 30, 2019, offset by lower interest rates related to the KeyBank Revolving Credit Facility, the CMBS Loan and the TCF Loan. We expect interest expense to fluctuate in the future commensurate with our future debt level.

Interest expense – debt issuance costs for the nine months ended September 30, 2020 and 2019 were approximately $1.1 million and $1.2 million, respectively. 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 nine months ended September 30, 2020 and 2019. We consider the following data to be meaningful as this allows for the comparison of results without the effects of acquisition or lease up activity.

Our same-store revenue increased by approximately $30,000 for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to an increase in average physical occupancy of approximately 1.6%, offset by the impact of the COVID-19 pandemic and the resulting reduction in late fees and pausing existing customer rate increases during the second quarter of 2020.

Our same-store property operating expenses increased by approximately $60,000 for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to increased payroll expense due to bonuses to our store personnel.

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~~nine months ended ~~March 31,~~September 30, 2020 and 2019 is as follows:

	Three Months Ended								Nine Months Ended
	March 31, 2020			March 31, 2019			Change		September 30, 2020			September 30, 2019			Change
Net cash flow provided by (used in):
Operating activities	$	(379,178	)	$	(491,655	)	$	112,477	$	1,352,194		$	397,364		$	954,830
Investing activities		(16,542,713	)		(48,279,729	)		31,737,016		(27,149,635	)		(65,435,881	)		38,286,246
Financing activities		48,858,773			45,170,645			3,688,128		30,760,232			54,882,436			(24,122,204	)

Cash flows ~~used in~~provided by operating activities for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019 were approximately ~~$0.4~~$1.4 million and ~~$0.5~~$0.4 million, respectively, a change of approximately ~~$0.1~~$1.0 million. The ~~decrease~~increase in cash ~~used in~~provided by our operating activities is primarily the result of an increase in cash ~~from our net loss, net of depreciation~~provided by operating assets and ~~amortization of approximately $0.1 million.~~liabilities.

Cash flows used in investing activities for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019 were approximately ~~$16.5~~$27.1 million and ~~$48.3~~$65.4 million, respectively, a change of approximately ~~$31.7~~$38.3 million. The decrease in cash used in our investing activities is primarily the result of decreases in cash used for purchase of real estate of approximately ~~$28.9~~$22.6 million ~~and~~ a ~~decrease in cash used for~~return of capital on investments in unconsolidated real estate ventures of approximately ~~$2.8~~$10.5 million, and a decrease in investments in unconsolidated real estate ventures of approximately $5.1 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2020.

Cash flows provided by financing activities for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019 were approximately ~~$48.9~~$30.8 million and ~~$45.2~~$54.9 million, respectively, a change of approximately ~~$3.7~~$24.1 million. The ~~increase~~decrease in cash provided by our financing activities is primarily the result of an increase in net proceeds from debt of approximately ~~$28.0~~$37.3 million, offset by a decrease in net proceeds raised from our ~~Offering~~offering of approximately ~~$22.6~~$59.9 million and an increase in distributions paid to common stockholders of approximately $2.0 million.

We generally expect that we will meet our short-term operating liquidity requirements from the combination of existing cash balances, capacity on ~~hand,~~our revolving credit facility, 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.

On September 25, 2020, our board of directors changed its distribution authorizations from monthly back to quarterly for the ~~second~~fourth quarter of 2020 and the foreseeable future. In addition, ~~on March 30, 2020, our~~the board of directors ~~declared~~authorized a daily distribution rate ~~for the month of April 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 ~~April~~October 1, 2020 and ending ~~April 30,~~December 31, 2020. In connection with ~~this distribution,~~these distributions, 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.

Historically, we 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, 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, 2020				Three Months Ended March 31, 2019				Nine Months Ended September 30, 2020				Nine Months Ended September 30, 2019
Distributions paid in cash — common stockholders	$	1,781,034			$	1,019,952			$	5,791,928			$	3,807,794
Distributions paid in cash — Operating Partnership unitholders		3,457				3,425				10,440				10,426
Distributions reinvested		1,672,889				833,499				5,290,598				3,530,610
Total distributions	$	3,457,380			$	1,856,876			$	11,092,966			$	7,348,830
Source of distributions
Cash flows provided by operations	$	—	0.0	%	$	—	0	%	$	1,352,194	12.2	%	$	397,364	5.4	%
Proceeds from the Primary Offering and Private Offering Transaction		1,784,491	51.6	%		1,023,377	55.1	%
Proceeds from the Primary Offering										4,450,174	40.1	%		3,420,856	46.6	%
Offering proceeds from distribution reinvestment plan		1,672,889	48.4	%		833,499	44.9	%		5,290,598	47.7	%		3,530,610	48.0	%
Total sources	$	3,457,380	100.0	%	$	1,856,876	100.0	%	$	11,092,966	100.0	%	$	7,348,830	100.0	%

From ~~our~~ inception through ~~March 31,~~September 30, 2020, we paid cumulative distributions of approximately ~~$19.5~~$27.1 million, as compared to cumulative net loss attributable to our common stockholders of approximately ~~$19.1~~$24.9 million. Net loss attributable to our common stockholders from inception through September 30, 2020, reflects non-cash depreciation and amortization of approximately $25.4 million, and acquisition related expenses of approximately $3.3 million.

For the ~~three~~nine months ended ~~March 31,~~September 30, 2020, we paid distributions of approximately ~~$3.5~~$11.1 million, as compared to a net loss attributable to our common stockholders of approximately ~~$3.6~~$9.4 million. Net loss attributable to our common stockholders for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 reflects non-cash depreciation and amortization of approximately ~~$3.1~~$9.7 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$0.4 million.

For the ~~three~~nine months ended ~~March 31,~~September 30, 2019, we paid distributions of approximately ~~$1.9~~$7.3 million, as compared to a net loss attributable to our common stockholders of approximately ~~$2.4~~$7.1 million. Net loss attributable to our common stockholders for the ~~three~~nine months ended ~~March 31,~~September 30, 2019 reflects non-cash depreciation and amortization of approximately ~~$2.2~~$8.5 million and acquisition related expenses of approximately ~~$0.4~~$0.8 million.

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 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, 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 a result of the suspension of our distribution reinvestment plan on November 10, 2020, our distributions will all be paid in cash until such time as our board of directors resumes our distribution reinvestment plan, if ever. Please see Note 11 – Subsequent Events.

As of ~~March 31,~~September 30, 2020, our total indebtedness was approximately ~~$142.4~~$126.1 million which included approximately ~~$100.5~~$84.3 million of variable rate debt and approximately ~~$42.7~~$42.6 million of fixed rate debt, less approximately $0.8 million in net debt issuance costs. As of December 31, 2019, our total indebtedness was approximately $109.1 million which included approximately $107.0 million of variable rate debt and approximately $2.2 million of fixed rate debt, less approximately $75,000 in net debt issuance costs.

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 secured or unsecured financings from banks or other lenders, issuance of equity instruments and undistributed funds from ~~operations, and additional public or private offerings.~~operations. 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,~~September 30, 2020:

	Payments due during the years ended December 31,										Payments due during the years ended December 31,
	Total		2020		2021-2022		2023-2024		Thereafter		Total		2020		2021-2022		2023-2024		Thereafter
Mortgage interest⁽¹⁾	$	22,720,524	$	3,361,829	$	8,204,692	$	3,487,165	$	7,666,838	$	19,762,253	$	979,862	$	7,522,360	$	3,593,193	$	7,666,838
Mortgage principal⁽²⁾	$	143,193,242		97,457		70,283,811		30,864,828		41,947,146	$	126,872,591		33,004		44,283,810		40,608,627		41,947,150
Total contractual obligations	$	165,913,766	$	3,459,286	$	78,488,503	$	34,351,993	$	49,613,984	$	146,634,844	$	1,012,866	$	51,806,170	$	44,201,820	$	49,613,988

We have joint ventures with SmartCentres, which are accounted for using the equity method of 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 11 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,~~September 30, 2020, our total indebtedness was approximately ~~$142.4~~$126.1 million which included approximately ~~$100.5~~$84.3 million inof variable rate debt and approximately ~~$42.7~~$42.6 million inof fixed rate debt, less approximately $0.8 million in net debt issuance costs. As of December 31, 2019, our total indebtedness was approximately $109.1 million, which included approximately $107.0 million in variable rate debt and approximately $2.2 million in fixed rate debt, less approximately $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 ~~$1.0~~$0.4 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,~~September 30, 2020:

	Payments due during the years ended December 31,																				Payments due during the years ended December 31,
	2020			2021			2022			2023			2024			Thereafter			Total		2020			2021			2022			2023			2024			Thereafter			Total
Variable rate debt	$	—		$	—		$	70,000,000		$	30,542,500		$	—		$	—		$	100,542,500	$	—		$	—		$	44,000,000		$	40,286,302		$	—		$	—		$	84,286,302
Average interest rate⁽¹⁾		2.8	%		2.8	%		2.8	%		2.8	%	N/A			N/A						2.8	%		2.8	%		2.8	%		3.8	%	N/A			N/A
Fixed rate debt	$	97,457		$	137,392		$	146,419		$	156,038		$	166,290		$	41,947,146		$	42,650,742	$	33,004		$	137,392		$	146,418		$	156,038		$	166,287		$	41,947,150		$	42,586,289
Average interest rate		3.7	%		3.7	%		3.7	%		3.7	%		3.7	%		3.7	%				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 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,~~September 30, 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, 2019.

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

We incurred a net loss attributable to common stockholders of approximately ~~$3.6~~$9.4 million and ~~$2.4~~$7.1 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019, respectively. Our accumulated deficit was approximately ~~$19.1~~$24.9 million as of September 30, 2020.

The Merger Consideration will not be adjusted in the event of any change in the relative values of the Company or SmartStop.

Upon the consummation of the Merger, each outstanding share of SST IV Common Stock will be converted automatically into the right to receive 2.1875 shares of SmartStop’s Class A Common Stock, $0.001 par value per share (“SmartStop Class A Common Stock”) (the “Exchange Ratio”). The Exchange Ratio will not be adjusted before or after consummation of the Merger. Except as expressly contemplated in the Merger Agreement, no change in the Merger Consideration will be made for any reason, including the following:

Completion of the Merger is subject to many conditions and if these conditions are not satisfied or waived, the Merger will not be completed, which could result in the requirement that the Company pay a termination payment to SmartStop or, in certain circumstances, that the Company or SmartStop pay expenses to the other party.

The Merger Agreement is subject to many conditions, which must be satisfied or waived in order to complete the Merger. The mutual conditions of the parties include, among others, the approval by the Company’s stockholders of the Merger and Charter Amendment. In addition, each party’s obligation to consummate the Merger is subject to certain other conditions, including, among others: (a) the accuracy of the other party’s representations and warranties; (b) the other party’s compliance with its covenants and agreements contained in the Merger Agreement; (c) the absence of an event that constitutes a material adverse effect on the other party; and (d) the receipt of customary legal opinions.

There is no assurance that the Merger will be completed. Failure to consummate the Merger may adversely affect the Company’s results of operations and business prospects for the following reasons, among others: (i) the Company has incurred and will continue to incur certain transaction costs, regardless of whether the Merger closes, which could adversely affect the Company’s financial condition, results of operations and ability to make distributions to its stockholders, and (ii) the Merger, whether or not it closes, will divert the attention of certain management and other key employees of the Company from ongoing business activities, including the pursuit of other opportunities that could be beneficial to the Company.

In addition, the Company or SmartStop may terminate the Merger Agreement under certain circumstances, including, among other reasons, if the Merger has not been consummated by August 6, 2021 (the “Outside Date”). The Merger Agreement also may be terminated in certain circumstances if a final and non-appealable order is entered prohibiting the transactions contemplated by the Merger Agreement, upon a material uncured breach by the other party that would cause the closing conditions not to be satisfied, or if the Company’s stockholders fail to approve the Merger Proposal or the Charter Amendment Proposal. In addition, at any time prior to the time the Company’s stockholders approve the Merger Proposal and the Charter Amendment Proposal, the Company has the right to terminate the Merger Agreement in order to enter into an Alternative Acquisition Agreement (as such term is defined in the Merger Agreement) with a third party relating to a Superior Proposal (as such term is defined in the Merger Agreement). Finally, at any time prior to the time the Company’s stockholders approve the Merger Proposal and the Charter Amendment Proposal, SmartStop has the right to terminate the Merger Agreement upon an Adverse Recommendation Change (as such term is defined in the Merger Agreement), upon the commencement of a tender offer or exchange offer for any shares of SST IV Common Stock that constitutes an Acquisition Proposal (as such term is defined in the Merger Agreement) if the Company’s board of directors (the “Board”) fails to recommend against acceptance of such tender offer or exchange offer or to publicly reaffirm the Board’s recommendation

after being requested to do so by SmartStop or if the Company breaches or fails to comply in any material respect with certain of its obligations regarding the solicitation of and response to Acquisition Proposals.

In certain circumstances specified in the Merger Agreement, the Company may be required to pay SmartStop a termination payment of $7,200,000 or one party may be required to reimburse the other party's transaction expenses (subject to a cap of $1,500,000).

Failure to complete the Merger could negatively impact the future business and financial results of the Company.

If the Merger is not completed, the ongoing business of the Company could be materially and adversely affected and the Company will be subject to a variety of risks associated with the failure to complete the Merger, including the following:

If the Merger is not completed, these risks could materially affect the business and financial results of the Company.

The pendency of the Merger, including as a result of the restrictions on the operation of the Company’s and SmartStop’s business during the period between signing the Merger Agreement and the completion of the Merger, could adversely affect the business and operations of the Company, SmartStop, or both.

During the pendency of the Merger, some business partners or vendors of each of the Company and SmartStop may delay or defer decisions, which could negatively impact the revenues, earnings, cash flows, and expenses of the Company and SmartStop, regardless of whether the Merger is completed. In addition, due to operating covenants in the Merger Agreement, each of the Company and SmartStop may be unable without the consent of the other party to pursue certain strategic transactions, undertake certain significant capital projects, undertake certain significant financing transactions, and otherwise pursue other actions that are not in the ordinary course of business, even if such actions would prove beneficial.

The Company expects to incur substantial expenses in connection with completing the Merger and integrating the properties and operations of the Company that SmartStop is acquiring with those of SmartStop. Although the Company has assumed that a certain level of transaction expenses would be incurred, there are a number of factors beyond the control of the Company that could affect the total amount or the timing of such expenses. Many of the expenses that will be incurred, by their nature, are difficult to estimate accurately at the present time. As a result, the actual transaction expenses associated with the Merger could significantly exceed the estimated transaction expenses.

The ownership positions of the Company’s stockholders and the SmartStop stockholders will be diluted by the Merger.

The Merger will result in the Company’s stockholders having an ownership stake in the combined company after the completion of the merger (the “Combined Company”) that is smaller than their current stake in the Company. Upon completion of the Merger, based on the number of shares of SST IV Common Stock, the number of shares of SmartStop’s common stock, and the number of limited partnership units of SmartStop’s operating partnership outstanding on September 30, 2020, the Company’s stockholders will own approximately 25% of the ownership interests in the Combined Company, continuing SmartStop stockholders will own approximately 64% of the ownership interests in the Combined Company, and the Combined Company’s management will own approximately 11% of the ownership interests in the Combined Company. Consequently, the Company’s stockholders and continuing SmartStop stockholders will have less influence over the management and policies of the Combined Company following the Merger than they currently exercise over the management and policies of the Company and SmartStop, respectively.

Litigation challenging the Merger may increase transaction costs and prevent the Merger from becoming effective or from becoming effective within the expected timeframe.

If any stockholder files a lawsuit challenging the Merger, the Company can provide no assurances as to the outcome of any such lawsuit, including the costs associated with defending such claims or any other liabilities that may be incurred in connection with the litigation or settlement of such claims. If plaintiffs are successful in obtaining an injunction prohibiting the parties from completing the Merger on the agreed-upon terms, such an injunction may prevent the completion of the Merger in the expected time frame, or may prevent it from being completed altogether. Whether or not any such plaintiffs’ claims are successful, this type of litigation is often expensive and diverts management’s attention and resources, which could adversely affect the operations of the Company’s business.

The Combined Company will have substantial indebtedness upon completion of the Merger.

In connection with the Merger, the Combined Company will assume, and may refinance, certain indebtedness of the Company and will be subject to risks associated with such indebtedness. As of September 30, 2020, the Company had $127 million of outstanding debt, and SmartStop had $717 million of outstanding debt. After giving effect to the Merger, the Combined Company’s total pro forma consolidated indebtedness may increase.

The Combined Company’s indebtedness could have important consequences to holders of its common stock, including the Company’s stockholders who receive SmartStop Class A Common Stock in the Merger, including:

The future results of the Combined Company will suffer if the Combined Company does not effectively manage its expanded portfolio and operations following the Merger.

Following the Merger, the Combined Companywill have an expanded portfolio and operations and likely will continue to expand its operations through additional acquisitions and other strategic transactions. The future success of the Combined Companywill depend, in part, upon its ability to manage its expansion opportunities, integrate new operations into its existing business in an efficient and timely manner, successfully monitor its operations, costs, regulatory compliance and service quality, and maintain other necessary internal controls. The Combined Companycannot assure investors that its expansion or acquisition opportunities will be successful, or that the Combined Companywill realize its expected operating efficiencies, cost savings, revenue enhancements, synergies or other benefits.

If and when the Combined Company completes a liquidity event, the market value ascribed to the shares of common stock of the Combined Company upon the liquidity event may be significantly lower than the estimated net asset values per share of the Company and SmartStop used to establish the exchange ratio in the Merger.

In approving and recommending the Merger, the Committee and the special committee of the board of directors of SmartStop (the “SmartStop Special Committee”) considered the most recent estimated net asset values per share of the Company and SmartStop, which are as of March 31, ~~2020.~~2020 and as of December 31, 2019, respectively. The estimated net asset value per share of the Combined Company will only be determined after the Merger. In the event that the Combined Company completes a liquidity event after the consummation of the Merger the value ascribed to the shares of the Combined

Company in connection with such liquidity event may be significantly lower than the estimated net asset values considered by the Committee and the SmartStop Special Committee and the estimated net asset value per share of the Combined Company that may be reflected on the account statements of stockholders of the Combined Company after the consummation of the Merger.

As of ~~March 31,~~September 30, 2020, we had sold approximately ~~4.9~~5.1 million Class A shares for gross offering proceeds of approximately ~~$122.2~~$126.4 million, approximately ~~3.9~~4.0 million Class T shares for gross offering proceeds of approximately ~~$93.9~~$97.2 million and approximately 1.1 million Class W shares for gross offering proceeds of approximately ~~$24.8~~$25.3 million pursuant to our Primary Offering and had sold approximately 360,577 Class A Shares in the Private Offering Transaction for gross proceeds of approximately $7.5 million. In conjunction with the Private Offering Transaction and the Primary Offering, we have incurred approximately ~~$20.9~~$19.7 million in sales commissions and dealer manager fees (of which approximately ~~$16.1~~$13.4 million was re-allowed to a third party broker-dealer), and approximately ~~$4.8~~$5.1 million in organization and offering costs. On July 30, 2020, prior to the termination of our Public Offering, we filed with the SEC a Registration Statement on Form S-3, which registered up to an additional $50 million in shares under our distribution reinvestment plan (our “DRP Offering”). The DRP Offering may be terminated at any time upon 10 days’ prior written notice to stockholders.

With the net offering proceeds of the Public Offering, we acquired approximately ~~$295~~$321 million in self storage facilities and made the other payments reflected under “Cash Flows from Financing Activities” in our consolidated statements of cash flows included in this report.

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,~~September 30, 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

		Page No.
	Cautionary Note Regarding Forward-Looking Statements	2

PART I. FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements	3
	Consolidated Balance Sheets as of ~~March 31,~~September 30, 2020 (unaudited) and December 31, 2019	4
	Consolidated Statements of Operations for the Three and Nine Months Ended ~~March 31,~~September 30, 2020 and 2019 (unaudited)	5
	Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended ~~March 31,~~September 30, 2020 and 2019 (unaudited)	6
	Consolidated Statements of Equity for the Three Months Ended March 31, ~~2020~~2019, June 30, 2019, and September 30, 2019 (unaudited)	7
	Consolidated Statements of ~~Cash Flows~~Equity for the Three Months Ended March 31, 2020, June 30, 2020, and September 30, 2020 (unaudited)	8
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2020 and 2019 (unaudited)	89
	Notes to Consolidated Financial Statements (unaudited)	910
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2934
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3949
Item 4.	Controls and Procedures	4050

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	4050
Item 1A.	Risk Factors	4050
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4154
Item 3.	Defaults Upon Senior Securities	4154
Item 4.	Mine Safety Disclosures	4154
Item 5.	Other Information	4255
Item 6.	Exhibits	4255

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

	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

	Same-Store Facilities							Non Same-Store Facilities					Total
					%							%						%
	2020		2019		Change			2020		2019		Change	2020			2019		Change
Revenue ⁽¹⁾	$	4,447,642	$	4,348,102		2.3	%	$	1,646,904	$	154,691	N/M	$	6,094,546		$	4,502,793		35.4	%
Property operating expenses ⁽²⁾		2,021,732		1,848,920		9.3	%		861,532		77,858	N/M		2,883,264			1,926,778		49.6	%
Property operating income	$	2,425,910	$	2,499,182		(2.9	)%	$	785,372	$	76,833	N/M	$	3,211,282		$	2,576,015		24.7	%
Number of facilities		16		16					8		1			24			17
Rentable square feet ⁽³⁾		1,385,800		1,385,800					655,200		48,000			2,041,000			1,433,800
Average physical occupancy ⁽⁴⁾	93.5%		89.6%					N/M		N/M			87.7%		⁽⁵⁾	89.6%
Annualized rent per occupied square foot ⁽⁶⁾	$	15.46	$	15.67				N/M		N/M			$	14.88		$	15.61

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

	For the Nine Months Ended September 30,
	2020			2019
Net loss	$	(9,373,707	)	$	(7,119,204	)
Adjusted to exclude:
Asset management fees (1)		2,358,356			1,352,797
General and administrative		2,502,863			1,782,454
Depreciation		5,899,252			3,533,813
Intangible amortization expense		2,746,401			3,774,255
Acquisition expenses—affiliates		342,192			481,857
Other property acquisition expenses		50,012			313,089
Interest expense		3,139,590			2,109,907
Interest expense—debt issuance costs		1,055,455			1,157,426
Equity in loss of unconsolidated real estate venture		168,689			-
Other		(69,889	)		23,007
Total property operating income	$	8,819,214		$	7,409,401

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
3.4		Amendment No. 1 to the Bylaws of Strategic Storage Trust IV, Inc., incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed on November 10, 2020, 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, dated April 30, 2020, Commission File No. 333-212639

10.1		~~CMBS Loan~~Master Mortgage Commitment Agreement, ~~with KeyBank National Association,~~ dated ~~January 31,~~July 9, 2020, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on ~~February 3,~~July 15, 2020, Commission File No. 000-55928

10.2		~~CMBS~~First Amendment to Loan Documents, dated September 2, 2020, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on September 9, 2020, Commission File No. 000-55928

10.3		Amended and Restated Term Loan Promissory Note, in the principal amount of $40,782,500, by the borrowers listed thereto in favor of ~~KeyBank~~TCF National ~~Association,~~Bank, dated ~~January 31,~~September 2, 2020, incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed on ~~February 3,~~September 9, 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~~		Syndicated Term Loan Agreement with TCF National Bank and the co-lenders party thereto, dated March 30, 2020, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on April 3, 2020, Commission File No. 000-55928

~~10.5~~		Promissory Note in favor of TCF National Bank, dated March 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,~~September 30, 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,~~September 30, 2020 has been formatted in Inline XBRL.