The Nominating and Corporate Governance Committee (the “Committee”), comprised of our two independent directors, was responsible for the oversight of the valuation process, including the review and approval of the valuation process and methodology used to determine the estimated value per share, the consistency of the valuation methodology with real estate standards and practices and the reasonableness of the assumptions used in the valuations and appraisals.

The Committee approved the engagement of Duff & Phelps, LLC (“Duff & Phelps”), an independent third party real estate valuation and advisory firm, to provide valuation services for our assets and liabilities and a calculation of a range of the estimated value per share of our Class A shares and Class T shares as of December 31, 2016.

After considering all information provided, and based on the Committee’s extensive knowledge of our assets and liabilities, the Committee concluded that the range in estimated value per share of $10.89 to $12.37, with an approximate mid-range value per share of $11.56, as indicated in the valuation report provided by Duff & Phelps was reasonable and recommended to the Board that it adopt $11.56 as the estimated value per share for our Class A shares and Class T shares. The Board unanimously agreed upon the estimated value per share of $11.56⁽¹⁾ recommended by the Committee, which determination is ultimately and solely the responsibility of the Board.

The current valuation of $11.56 was based upon an appraisal by Duff & Phelps, as of December 31, 2016, of 12 of our self storage properties acquired prior to 2016 (the “Appraised Properties”) on an individual property basis and was otherwise conducted in accordance with the IPA Guidelines. An additional five properties acquired by us in 2016 were included in Duff & Phelps’ analysis at the purchase price paid for such properties (less sub-property management agreement termination fees), based on Duff & Phelps’ conclusion that such purchase prices, as adjusted, reasonably approximate the market value of such properties.

We acquired the Appraised Properties prior to 2016 for an aggregate purchase price of approximately $62.2 million. As of December 31, 2016, the total appraised value of the Appraised Properties as provided by Duff & Phelps was approximately $100.9 million. This represents an approximate 62% increase in the total value of the Appraised Properties over the aggregate purchase price.

With respect to the estimated value per share, we can give no assurance that: you would be able to resell your shares at this estimated value; you would ultimately realize distributions per share equal to our estimated value per share upon liquidation of our assets and settlement of our liabilities or a sale of our company; our shares of common stock would trade at the estimated value per share on a national securities exchange; another independent third-party appraiser or other third-party valuation firm would agree with our estimated value per share; or the methodology used to estimate our value per share will be in compliance with any future regulatory rules or ERISA reporting requirements.