Here's Why SmartStop Self Storage REIT (SMA) Surged in Q2

Baron Funds, an investment management company, released its “Baron Real Estate Income Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund decreased 0.23% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index). Since its inception on December 29, 2017, through June 30, 2025, the Fund achieved a cumulative return of 87.02%, more than double the 35.45% return of the REIT Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Real Estate Income Fund highlighted stocks such as SmartStop Self Storage REIT, Inc. (NYSE:SMA). SmartStop Self Storage REIT, Inc. (NYSE:SMA) is a self-storage Real Estate Investment Trust. The one-month return of SmartStop Self Storage REIT, Inc. (NYSE:SMA) was -6.60%, and its shares lost 6.98% of their value over the last 3 months. On August 8, 2025, SmartStop Self Storage REIT, Inc. (NYSE:SMA) stock closed at $33.98 per share, with a market capitalization of $1.055 billion.

Baron Real Estate Income Fund stated the following regarding SmartStop Self Storage REIT, Inc. (NYSE:SMA) in its second quarter 2025 investor letter:

"In the second quarter, the Fund acquired shares in SmartStop Self Storage REIT, Inc. (NYSE:SMA), a self-storage REIT that owns a portfolio of 171 properties across 22 states and 3 provinces in Canada. Please see the “Top net purchases” section later in this letter for an explanation of why we are excited about our investment in the company.

The share price of SmartStop Self Storage REIT, Inc. appreciated during the quarter. We would characterize the second quarter (the first quarter as a public company) as “the company is executing as it said it would.” Specifically, the company saw improving operating metrics, reported outsized earnings growth, and announced several tuck-in acquisitions, all of which helped the company’s valuation multiple expand to levels closer to those of its self-storage public peers. Please see the “Top net purchases” section of the shareholder letter for more detail on our investment thesis for SmartStop…” (Click here to read the full text)

SmartStop Self Storage REIT, Inc. (NYSE:SMA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of SmartStop Self Storage REIT, Inc. (NYSE:SMA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered SmartStop Self Storage REIT, Inc. (NYSE:SMA) and shared the list of best small company stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.