| Item 7.01. | Regulation FD Disclosure. |
On March 30, 2020, Strategic Storage Trust IV, Inc. (the “Company”) issued a letter to its stockholders regarding the novel coronavirus (COVID-19) pandemic and the resulting suspension of its share redemption program (the “SRP”) and the change in distribution authorization by the Company. A copy of the letter to stockholders is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibit and the information set forth therein is deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
Suspension of SRP
In order to preserve cash in light of the uncertainty relating to COVID-19 and its potential impact on the Company’s overall financial results, we will not be able to honor redemption requests made for the quarter ending March 31, 2020. Also, on March 30, 2020, the Company’s board of directors (the “Board”) approved the suspension of the Company’s SRP. Under the SRP, the Board may amend, suspend, or terminate the SRP with 30 days’ notice to the Company’s stockholders. This Current Report on Form 8-K serves as such required notice and therefore the suspension of the SRP will be effective on April 29, 2020. All pending redemption requests will not be redeemed, nor will any additional requests received in future quarters be redeemed, until further notice. The SRP will remain suspended until such time as the Board may approve the resumption of the SRP.
Change in Distribution Policy and Distribution Authorization for April 2020
The Company has decided to change from quarterly to monthly authorization of distributions for the second quarter of 2020 and the foreseeable future. This change in the Company’s distribution policy is in order to give the Board maximum flexibility to monitor and evaluate the situation related to the financial impact of COVID-19.
On March 30, 2020, the Board authorized a daily distribution rate 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 the Company’s books at the close of business on each day of the period commencing on April 1, 2020 and ending April 30, 2020.
In connection with this distribution, for the stockholders of Class T shares, after the stockholder servicing fee is paid, approximately $0.00361 per day will be paid per Class T share and for the stockholders of Class W shares, after the dealer manager servicing fee is paid, approximately $0.00396 per day will be paid per Class W share. Such distributions payable to each stockholder of record during April 2020 will be paid in May 2020.
| Item 9.01. | Financial Statements and Exhibits. |
