Strategic Storage Trust, Inc. Reports Third Quarter 2012 Results

• – Same-Store Revenues Increases 5.5%

• – Same-Store NOI Increases 8.5%

• – Cash Flows From Operations Increases 435%

LADERA RANCH, CA – December 10, 2012 – Strategic Storage Trust, Inc. (the “Company”) today announced operating results for the three and nine months ended September 30, 2012.

“Our strong results reflect a seasoned management team whose short and long-term initiatives are beginning to bear fruit,” commented H. Michael Schwartz, CEO of Strategic Storage Trust, Inc.  “These initiatives include: multi-discipline marketing capabilities, an online retail platform, and the SmartStop® Self Storage brand in conjunction with our state of the art revenue optimization platform.  Our third quarter results reflect the positive impact of increased occupancy (stabilized and lease-up facilities), an increase in same-store revenues and net operating income, and an overall continued increase in economies of scale across our portfolio.  We believe we are well positioned for future growth.”

Key Highlights for the Three and Nine Months Ended September 30, 2012:

• Increased IPA Modified Funds From Operations (“MFFO”) by 172% for the three months ended September 30, 2012 compared to the three months ended June 30, 2012, from $1.0 million to $2.7 million.
• Increased same-store revenues and net operating income (“NOI”) by 5.5% and 8.5%, respectively, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011.
• Increased same-store revenues and NOI by 5.4% and 8.8%, respectively, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011.
• Increased same-store average occupancy by approximately 400 basis points to 83% for the three months ended September 30, 2012 compared to 79% for the three months ended September 30, 2011.
• Increased cash flows from operations by 435% from $1.2 million for the nine months ended September 30, 2011 to $6.4 million for the nine months ended September 30, 2012.
• Completed the full pay-down of the $28 million KeyBank Bridge Loan.
• Reduced debt leverage from 60% as of December 31, 2011 to 53.2% as of September 30, 2012.
• Amended the Company’s KeyBank Credit Facility, such that on October 10, 2012 the Company was able to refinance $31 million thereof into a new KeyBank CMBS Loan with a term of ten years and a favorable fixed interest rate of 4.65%, thereby significantly reducing the Company’s short-term debt maturities.
• Acquired 17 properties during 2012 for a total purchase price of $82.4 million.

Operations:

• Increased same-store revenues and NOI by 5.5% and 8.5%, respectively for the three months ended September 30, 2012 compared to the three months ended September 30, 2011.  The increase in same-store revenues was primarily attributable to an increase in average occupancy of approximately 400 basis points and an increase in tenant insurance revenue due to increased penetration rates.  Same-store NOI improved due to the revenue increases in combination with a decrease in property operating expenses as a percentage of revenues.
• Decreased general and administrative expenses as a percentage of total revenues and on a per property basis for the three months ended September 30, 2012 compared to the three months ended September 30, 2011.
• Increased interest expense and deferred financing amortization expense, primarily due to increased debt levels incurred in connection with acquisitions completed in late 2011.
• Increased MFFO for the three months ended September 30, 2012 by 172%, or approximately $1.7 million, as compared to the three months ended June 30, 2012. The improvement was primarily the result of sequential quarter improvements in same-store NOI of approximately $1.2 million and a combined reduction in interest expense and deferred financing amortization expense accounted for an additional approximately $0.4 million.  Of the same-store NOI increase of $1.2 million, $0.4 million related to improved NOI at the Homeland Portfolio.
• Increased occupancy for the Homeland Portfolio from 46% as of December 31, 2011 to 67% as of September 30, 2012.  The Homeland Portfolio is an acquisition of 12 lease-up self-storage facilities for $80 million, which were acquired in December 2011.

Acquisitions:

• Closed on the first phase of the Stockade Portfolio on August 16, 2012, which consisted of eight properties for a purchase price of $25 million. The Stockade Portfolio consists of 16 properties located in South Carolina, Florida and Georgia. Subsequent to September 30, 2012, the Company acquired the remainder of the Stockade Portfolio by closing on the second and third phases for a combined purchase price of approximately $50 million. This brings the Company’s total acquisitions for 2012 to 17 properties for a total purchase price of $82.4 million.

Capital Transactions:

• Obtained two separate loans with Citigroup Global Markets Realty Corp. in connection with the acquisition of the Stockade Portfolio, both of which have a term of ten years. The first loan, in the amount of $18.2 million and with a fixed interest rate of 4.60%, closed on October 1, 2012, and the second loan, in the amount of $19.4 million and with a fixed interest rate of 4.61%, closed on November 5, 2012.
• Amended the KeyBank Credit Facility during the third quarter, such that on October 10, 2012 the Company was able to refinance $31 million thereof into a new KeyBank CMBS Loan with a term of ten years and a favorable fixed interest rate of 4.65%, thereby significantly reducing the Company’s short-term debt maturities.

Quarterly Dividend:

The Company’s board of directors declared a distribution rate for the third quarter of 2012 of $0.001912569 per day per share on the outstanding shares of common stock (equivalent to an annual distribution rate of 7% assuming the share was purchased for $10 and approximately 6.5% assuming the share was purchased at $10.79).

About Strategic Storage Trust, Inc.: