Investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures represent the Company’s interest in preferred stock of Strategic Storage Trust VI, Inc. and Strategic Storage Growth Trust III, Inc. (collectively, “Strategic Storage”), affiliates of SmartStop Self Storage REIT, Inc., and the Company’s noncontrolling interest in real estate joint ventures. The Company accounts for its investments in Strategic Storage preferred stock, which do not have a readily determinable fair value, at the transaction price less impairment, if any. The Company accounts for its investments in joint ventures using the equity method of accounting. The Company initially records these investments at cost and subsequently adjusts for cash contributions, distributions and net equity in income or loss, which is allocated in accordance with the provisions of the applicable partnership or joint venture agreement. Equity in earnings and dividend income from these investments is included in the equity in earnings and dividend income from unconsolidated real estate entities on the Company’s condensed consolidated statements of operations.

In these joint ventures, the Company and the joint venture partner generally receive a preferred return on their invested capital. To the extent that cash or profits in excess of these preferred returns are generated through operations or capital transactions, the Company would receive a higher percentage of the excess cash or profits, as applicable, than its equity interest.

The Company separately reports investments with net equity less than zero in cash distributions in unconsolidated real estate ventures in the condensed consolidated balance sheets. The net equity of certain joint ventures is less than zero because distributions have exceeded the Company’s investment in and share of income from these joint ventures. This is generally the

Net investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures consist of the following:


	Number of Stores	Equity Ownership %	Excess Profit % (1)	March 31,		December 31,
				2026		2025
PRISA Self Storage LLC	85	4%	4%	$	8,716	$	8,736
HF1 Sovran HHF Storage Holdings LLC	37	49%	49%-59%	300,789		301,794
Storage Portfolio II JV LLC	36	10%	30%	(10,835)		(10,588)
Storage Portfolio IV JV LLC	32	10%	30%	46,153		46,310
Storage Portfolio I LLC	24	34%	49%	(44,829)		(44,537)
HF2 Sovran HHF Storage Holdings II LLC	22	49%	49%-59%	112,330		112,551
HF5 Life Storage-HIERS Storage LLC	17	20%	20%	24,417		24,580
HF6 191 V Life Storage Holdings LLC	17	20%	20%	9,178		9,525
VRS Self Storage, LLC	16	45%	54%	(18,623)		(18,576)
HF10 Life Storage HHF Wasatch Holdings LLC	16	20%	20%	17,853		18,082
Other unconsolidated real estate ventures	106	10%-50%	10%-50%	300,165		295,205
Strategic Storage Growth Trust III, Inc. Preferred Stock (2)	n/a	n/a	n/a	100,000		100,000
Strategic Storage Trust VI, Inc. Preferred Stock (3)	n/a	n/a	n/a	150,000		150,000
Net Investments in and Cash distributions in unconsolidated real estate entities	408			$	995,314	$	993,082

Investments in unconsolidated real estate entities				$	1,069,602	$	1,066,783
Cash distributions in unconsolidated real estate ventures				(74,288)		(73,701)
Net Investments in and Cash distributions in unconsolidated real estate entities				$	995,314	$	993,082

(2) On February 4, 2025, the Company invested $100,000 in shares of convertible preferred stock with a dividend rate of 8.85% per annum, subject to increase after five years. The preferred shares are generally not redeemable for five years, except in the case of a change of control or initial listing, and are redeemable thereafter subject to a redemption premium.