2014 Q4 Form 10-Q Financial Statement

#000119312514410968 Filed on November 13, 2014

View on sec.gov

Income Statement

Concept 2014 Q4 2014 Q3 2013 Q3
Revenue $465.3K $0.00 $0.00
YoY Change
Cost Of Revenue $0.00
YoY Change
Gross Profit $0.00
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $0.00
YoY Change
% of Gross Profit
Operating Expenses $1.357M $498.3K $0.00
YoY Change
Operating Profit -$891.5K -$498.3K
YoY Change
Interest Expense $0.00
YoY Change
% of Operating Profit
Other Income/Expense, Net $0.00
YoY Change
Pretax Income
YoY Change
Income Tax
% Of Pretax Income
Net Earnings -$1.125M -$482.6K $0.00
YoY Change
Net Earnings / Revenue -241.68%
Basic Earnings Per Share
Diluted Earnings Per Share
COMMON SHARES
Basic Shares Outstanding 1.289M shares 430.5K shares
Diluted Shares Outstanding

Balance Sheet

Concept 2014 Q4 2014 Q3 2013 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $6.531M $5.586M $201.0K
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $35.05M $10.90M
YoY Change 17338.13%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities
YoY Change
LONG-TERM LIABILITIES
Long-Term Debt
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities
Total Long-Term Liabilities
Total Liabilities $18.57M $4.263M
YoY Change
SHAREHOLDERS EQUITY
Retained Earnings -$2.396M -$1.272M
YoY Change
Common Stock $14.01M $7.891M
YoY Change 1400557.6%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $11.30M $6.511M
YoY Change
Total Liabilities & Shareholders Equity $35.05M $10.90M
YoY Change 17338.13%

Cashflow Statement

Concept 2014 Q4 2014 Q3 2013 Q3
OPERATING ACTIVITIES
Net Income -$1.125M -$482.6K $0.00
YoY Change
Depreciation, Depletion And Amortization $0.00
YoY Change
Cash From Operating Activities
YoY Change
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities
YoY Change
NET CHANGE
Cash From Operating Activities
Cash From Investing Activities
Cash From Financing Activities
Net Change In Cash
YoY Change
FREE CASH FLOW
Cash From Operating Activities
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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dei Document Type
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10-Q
dei Entity Registrant Name
EntityRegistrantName
STRATEGIC STORAGE TRUST II, INC.
dei Trading Symbol
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ck0001585389
us-gaap Revenue Recognition Accounting Policy Gross And Net Revenue Disclosure
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<div> <p style="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"> <b><i>Revenue Recognition</i></b></p> <p style="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> Management expects that all of our leases will be operating leases. Rental income will be recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from any long-term operating leases will be recognized on a straight-line basis over the term of the lease. The excess of rents received over amounts contractually due pursuant to the underlying leases will be included in accounts payable and accrued liabilities in our consolidated balance sheet and contractually due but unpaid rent will be included in other assets.</p> </div>
dei Entity Filer Category
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dei Entity Incorporation Date Of Incorporation
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<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> <b>Note 1. Organization</b></p> <!-- xbrl,body --> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> Strategic Storage Trust II, Inc., a Maryland corporation (the &#x201C;Company&#x201D;), was formed on January&#xA0;8, 2013 under the Maryland General Corporation Law for the purpose of engaging in the business of investing in self storage facilities. The Company&#x2019;s year-end is December&#xA0;31. As used in this report, &#x201C;we&#x201D; &#x201C;us&#x201D; and &#x201C;our&#x201D; refer to Strategic Storage Trust II, Inc.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> Strategic Storage Holdings, LLC, a Delaware limited liability company (our &#x201C;Prior Sponsor&#x201D;), was the sponsor of our Offering through August&#xA0;31, 2014. Effective August&#xA0;31, 2014, SmartStop Self Storage, Inc. (our &#x201C;Sponsor&#x201D;), formerly known as Strategic Storage Trust, Inc., entered into a series of transactions, agreements and amendments to its existing agreements and arrangements (such agreements and amendments hereinafter referred to collectively as the &#x201C;Self Administration and Investment Management Transaction&#x201D;) with our Prior Sponsor and its affiliates, pursuant to which, effective August&#xA0;31, 2014, our Sponsor acquired the self storage advisory, asset management, property management and investment management businesses of our Prior Sponsor including our Prior Sponsor&#x2019;s sole membership interest in Strategic Storage Realty Group, LLC, which owns 97.5% of the economic interests (and 100% of the voting membership interests) of Strategic Storage Trust Advisor II, LLC (our &#x201C;Advisor&#x201D;) and owns 100% of Strategic Storage Property Management II, LLC (our &#x201C;Property Manager&#x201D;). Our Sponsor was formed on August&#xA0;14, 2007 for the purpose of engaging in the business of investing in self storage facilities. As of September&#xA0;30, 2014, our Sponsor owned 126 self storage facilities located in 17 states and Canada.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> Our Advisor, a Delaware limited liability company, was formed on January&#xA0;8, 2013. 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 an advisory agreement we have with our Advisor (our &#x201C;Advisory Agreement&#x201D;). The officers of our Advisor are also officers of us and our Sponsor.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> On August&#xA0;2, 2013, our Advisor purchased 100 shares of our common stock for $1,000 and became our initial stockholder. Our Articles of Amendment and Restatement authorize 700,000,000 shares of common stock with a par value of $0.001 and 200,000,000 shares of preferred stock with a par value of $0.001. We are offering a maximum of $1,000,000,000 of common shares for sale to the public (the &#x201C;Primary Offering&#x201D;) and $95,000,000 of common shares for sale pursuant to our distribution reinvestment plan (collectively, the &#x201C;Offering&#x201D;).</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> On January&#xA0;10, 2014, the Securities and Exchange Commission (&#x201C;SEC&#x201D;) declared our registration statement effective. On May&#xA0;23, 2014, we satisfied the $1.5 million minimum offering requirements of our Offering and commenced formal operations. As of September&#xA0;30, 2014, we had issued approximately 1.1&#xA0;million shares of our common stock for gross proceeds of approximately $10.5 million. We intend to invest the net proceeds from the Offering primarily in self storage facilities and related self storage real estate investments. As of September&#xA0;30, 2014, we had not purchased any properties; however, we had identified certain potential acquisitions and subsequent to September&#xA0;30, 2014 closed on a portfolio of five properties (see Notes 6 and 7).</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> Our operating partnership, Strategic Storage Operating Partnership II, L.P., a Delaware limited partnership (our &#x201C;Operating Partnership&#x201D;), was formed on January&#xA0;9, 2013. On August&#xA0;2, 2013, our Advisor purchased a limited partnership interest in our Operating Partnership for $200,000 and on August&#xA0;2, 2013, 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 September&#xA0;30, 2014, we owned 98% of the limited partnership interests of our Operating Partnership. The remaining limited partnership interests are owned by our Advisor (2%). 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 will conduct certain activities (such as tenant insurance and selling packing supplies and locks) through our taxable REIT subsidiary, Strategic Storage TRS II, Inc., a Delaware corporation (the &#x201C;TRS&#x201D;) which was formed on January&#xA0;10, 2013, and is a wholly owned subsidiary of our Operating Partnership.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> Our Property Manager was formed on January&#xA0;8, 2013 to manage our properties. Our Property Manager will derive 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.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> Our dealer manager is Select Capital Corporation, a California corporation (our &#x201C;Dealer Manager&#x201D;). Our Dealer Manager is responsible for marketing our shares being offered pursuant to our Primary Offering. Our president owned, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer Manager through August 31, 2014. Effective August&#xA0;31, 2014, our Sponsor now indirectly owns the 15% non-voting equity interest in our Dealer Manager, pursuant to the Self Administration and Investment Management Transaction. An affiliate of our Dealer Manager continues to own a 2.5% non-voting membership interest in our Advisor.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> As we accept subscriptions for shares of our common stock, we transfer substantially all of the net offering proceeds to our Operating Partnership as capital contributions in exchange for additional units of interest in our Operating Partnership. However, we are deemed to have made capital contributions in the amount of gross proceeds received from investors, and our Operating Partnership is deemed to have simultaneously paid the sales commissions and other costs associated with the Offering. In addition, our Operating Partnership is structured to make distributions with respect to limited partnership units that will be 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. 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.</p> </div>
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PercentageOfNonVotingMembershipInterest
0.025 pure
ck0001585389 Percentage Of Gross Properties Revenues And Reimbursement Of Direct Costs
PercentageOfGrossPropertiesRevenuesAndReimbursementOfDirectCosts
0.06 pure
ck0001585389 Maximum Percentage Other Non Accountable Expenses
MaximumPercentageOtherNonAccountableExpenses
0.03 pure
ck0001585389 Auction Fees
AuctionFees
0
ck0001585389 Maximum Offering Cost Rate Incurred On Behalf Of Entity
MaximumOfferingCostRateIncurredOnBehalfOfEntity
0.035 pure
ck0001585389 Operating Expenses Reimbursement Percentage Of Net Income
OperatingExpensesReimbursementPercentageOfNetIncome
0.25 pure
ck0001585389 Stock Issuable During Period Value Dividend Reinvestment Plan
StockIssuableDuringPeriodValueDividendReinvestmentPlan
95000000
ck0001585389 Minimum Percentage Of Ordinary Taxable Income To Be Distributed To Stockholders
MinimumPercentageOfOrdinaryTaxableIncomeToBeDistributedToStockholders
0.90 pure
ck0001585389 Other Property Acquisition Expenses
OtherPropertyAcquisitionExpenses
10217
ck0001585389 Sale Commission Fees Percentage Of Proceed From Primary Offering
SaleCommissionFeesPercentageOfProceedFromPrimaryOffering
0.070 pure
ck0001585389 Percentage Program Insurer Provides Fees
PercentageProgramInsurerProvidesFees
0.50 pure
ck0001585389 Beneficial Non Voting Equity Interest
BeneficialNonVotingEquityInterest
0.15 pure
ck0001585389 Tenant Reinsurance Fee
TenantReinsuranceFee
0
ck0001585389 Maximum Period For Reimbursement Of Offering Cost
MaximumPeriodForReimbursementOfOfferingCost
P60D
ck0001585389 Construction Management Fee Percent On Cost Above Specific Limit
ConstructionManagementFeePercentOnCostAboveSpecificLimit
0.05 pure
ck0001585389 Disposition Fees Percentage Of Sale Price Of Property
DispositionFeesPercentageOfSalePriceOfProperty
0.01 pure
ck0001585389 Fee Paid To Related Party Property Manager For Administration Of Tenant Insurance Policies
FeePaidToRelatedPartyPropertyManagerForAdministrationOfTenantInsurancePolicies
0.50
ck0001585389 Related Party Transaction Other Assets
RelatedPartyTransactionOtherAssets
1287857
ck0001585389 Operating Expenses Exceed Limitation
OperatingExpensesExceedLimitation
P12M
ck0001585389 Underwriting Commission Rate
UnderwritingCommissionRate
0.10 pure
ck0001585389 Maximum Period For Disclosure Fact
MaximumPeriodForDisclosureFact
P60D
ck0001585389 Preferred Units Distribution Description
PreferredUnitsDistributionDescription
The holders of the Preferred Units will receive current distributions (the “Current Distributions”) at a rate of a one-month LIBOR plus 6.5% per annum on the Liquidation Amount, payable monthly and calculated on an actual/360 basis. In addition to the Current Distributions, our Operating Partnership has the obligation to elect either (A) to pay the holder of the Preferred Units additional distributions monthly in an amount equal to: (i) 4.35% per annum of the Liquidation Amount through March 31, 2017; and (ii) beginning April 1, 2017, 6.35% per annum of the Liquidation Amount or (B) defer the additional distributions ( the “Deferred Distributions”) in an amount that will accumulate monthly in an amount equal to (i) LIBOR plus 10.85% of the Deferred Distributions through March 31, 2017; and (ii) beginning April 1, 2017, LIBOR plus 12.85% of the Deferred Distributions.
ck0001585389 Related Party Transaction Offering Costs
RelatedPartyTransactionOfferingCosts
1577414
CY2013Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
0 shares
CY2013Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
0.00
CY2013Q3 us-gaap Profit Loss
ProfitLoss
0
CY2013Q3 us-gaap Revenues
Revenues
0
CY2013Q3 us-gaap Net Income Loss
NetIncomeLoss
0
CY2013Q3 us-gaap Operating Expenses
OperatingExpenses
0
CY2013Q3 us-gaap Related Party Costs
RelatedPartyCosts
0
CY2013Q3 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
0
CY2013Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
0
CY2013Q3 ck0001585389 Business Combination Acquisition Related Costs Paid To Affiliates
BusinessCombinationAcquisitionRelatedCostsPaidToAffiliates
0
CY2013Q3 ck0001585389 Related Party Transaction Dealer Manager Fee Expenses
RelatedPartyTransactionDealerManagerFeeExpenses
0
CY2013Q3 ck0001585389 Related Party Transaction Selling Commission Expenses
RelatedPartyTransactionSellingCommissionExpenses
0
CY2013Q3 ck0001585389 Other Property Acquisition Expenses
OtherPropertyAcquisitionExpenses
0
CY2013Q3 ck0001585389 Related Party Transaction Other Assets
RelatedPartyTransactionOtherAssets
0
CY2013Q3 ck0001585389 Related Party Transaction Offering Costs
RelatedPartyTransactionOfferingCosts
0
CY2014Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
626566 shares
CY2014Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.77
CY2014Q3 us-gaap Profit Loss
ProfitLoss
-498335
CY2014Q3 us-gaap Revenues
Revenues
0
CY2014Q3 us-gaap Net Income Loss
NetIncomeLoss
-482603
CY2014Q3 us-gaap Operating Expenses
OperatingExpenses
498335
CY2014Q3 us-gaap Related Party Costs
RelatedPartyCosts
1666262
CY2014Q3 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
204067
CY2014Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
-15732
CY2014Q3 ck0001585389 Business Combination Acquisition Related Costs Paid To Affiliates
BusinessCombinationAcquisitionRelatedCostsPaidToAffiliates
284051
CY2014Q3 ck0001585389 Related Party Transaction Dealer Manager Fee Expenses
RelatedPartyTransactionDealerManagerFeeExpenses
228250
CY2014Q3 ck0001585389 Related Party Transaction Selling Commission Expenses
RelatedPartyTransactionSellingCommissionExpenses
532582
CY2014Q3 ck0001585389 Other Property Acquisition Expenses
OtherPropertyAcquisitionExpenses
10217
CY2014Q3 ck0001585389 Related Party Transaction Other Assets
RelatedPartyTransactionOtherAssets
316226
CY2014Q3 ck0001585389 Related Party Transaction Offering Costs
RelatedPartyTransactionOfferingCosts
110600

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