Slide 1: Safe Harbor Statement
Safe Harbor Statement The forward-looking statements contained in this presentation are subject to various risks and uncertainties. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expe
Slide 2: Introduction to CubeSmart
INTRODUCTION TO CUBESMART Self-Storage REIT with Expansive National Platform by Owned Portfolio Market CUBE ll,.ii!•J $7.1 billion Malvern, PA NVSE. 1) Property count as of June 30, 2016. ® CuBESNIART 2) Market value of common and book value of preferred equity and debt as of June 30, 2016.
Slide 3: High-Quality Portfolio
4 HIGH - QUALITY PORTFOLIO A Disciplined Investment Strategy has Built an Industry - Leading Portfolio 1) Determined by ranking top 100 markets by net rentable square feet per person with "1" being the market with the lowest supply and "100" being the market with the highest supply compared to the N
Slide 4: Attractive Returns
ATTRACTIVE RETURNS Innovative Platforms, Disciplined Growth, and Prudent Capital Allocation have Combined to Generate Significant Value for Shareholders Cumulative Total Returns1 5 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 93.2% 68.6% 33.3% 1) Returns through June 30, 2016. S
Slide 5: Long-Term Vision for Value Creation
LONG-TERM VISION FOR VALUE CREATION EXTERNAL GROWTH Continue to prudently build a portfolio of high-quality assets, with a focus on targeted markets. ®Ou FINANCIAL STRENGTH Finance growth by strategically accessing the full array of capital sources available through a BBB/Baa2 investment grade balan
Slide 6: Internal Growth: Revenue Growth driven by effective rent growth
INTERNAL GROWTH Revenue Growth driven increasingly by effective rent growth Revenue Expenses Average Occupancy Expense Growth is expected to remain inflationary, except for continued pressure on reaI estate taxes 1) Financial data from January 1, 2016 through June 30,2016. 2) Net operating income, o
Slide 7: Internal Growth: Performance Fueled by Innovation
INTERNAL GROWTH: PERFORMANCE FUELED BY INNOVATION Enhancing the customer experience at all points of engagement through proprietary systems and processes. Constantly testing digital platforms, utilizing marketing advancements, sophisticated systems, and new programs that strengthen customer relation
Slide 8: Internal Growth: Internet Marketing
INTERNAL GROWTH: INTERNET MARKETING Optimizing marketing efforts and efficiently attracting customers through use of industry leading analytics. Jamaica Self Storage - CubeSmart.com www.cubesmart.com/ Up to 1 Month Free. Reserve Today. It's Fast & Easy To Reserve Online. Find a Location - Up to 1 Mo
Slide 9: Internal Growth: Internet Marketing Custom Experience
INTERNAL GROWTH: INTERNET MARKETINCUSTOM EXPERIENCE 1 PERSONA 1 CUSTOM EXPERIENCE 2 CUSTOM EXPERIENCE 3 VISITOR DATA AND BEHAVI OR PERSONA 3 VISITORS Adjusting to evolving marketing ecosystems and engagement mediums Continued focus on capturing and leveraging insights about customers to create custo
Slide 10: Internal Growth: Traditional Marketing
INTERNAL GROWTH: TRADITIONAL MARKETING Supplementing internet marketing initiatives with a traditional platform to take advantage of market depth and to reach customers offline .Out - of - home placements in markets with high store concentration .Hyper - targeted direct mail campaigns in select mark
Slide 11: Internal Growth: Revenue Management Landscape
INTERNAL GROWTH: REVENUE MANAGEMENT Revenue Management Landscape Multi-Family Residential Supply Constraints Competition Seasonality Low Transaction Volume Unpredictable Length of Stay • Historically, advanced revenue management techniques have boosted revenue in a number of supply-constrained indus
Slide 12: Internal Growth: Revenue Management Fundamental Pricing Issues
INTERNAL GROWTH: REVENUE MANAGEMENT Fundamental Pricing Issues Pricing optimization requires consideration of a multi - dimensional demand landscape and dynamic capacity constraints Substitutability .Competition .Timing .Capacity / Economic Outcomes Pricing Decisions Optimal Pricing
Slide 13: Internal Growth: Long-Term Revenue Maximization Strategy
INTERNAL GROWTH: REVENUE MANAGEMENT Long-Term Revenue Maximization Strategy Demand Forecast/ Revenue Optimization Price optimization requires consideration of a multi¬dimensional demand landscape & dynamic capacity constraints Balance between Street Rates, Discounts, and Concessions Goal of providin
Slide 14: Internal Growth: Customer Service
INTERNAL GROWTH: CUSTOMER SERVICE Striving to fulfill our mission of simplifying organizational challenges through unparalleled customer service. Focus on customer service throughout all touch points (store, sales center, and website) to create a fully-integrated interaction with each customer Moder
Slide 15: Internal Growth: An Award-Winning Service Culture
INTERNAL GROWTH: CUSTOMER SERVICE An Award-Winning Service Culture STEVlE"WlNNER STEYlE"WlNNER STEVIE"WI NNER STEVIEWlNNER STEVIE' WINNER FOR SALES& SALI::S& & OH SALI::S & Customer Service Training Team of the Year Customer Service Department of the Year Innovation in Customer Service Customer Serv
Slide 16: External Growth
EXTERNAL GROWTH $224.7 million in year-to-date acquisitions $133.7 million in year-to-date new development 65 new properties added year-to-date to the third-party platform $313.2 million of investments under contract1 - $51.7 million of acquisitions, $43.3 million of acquisitions at c/o, $218.2 mill
Slide 17: External Growth: Focused Investment Strategy
EXTERNAL GROWTH: FOCUSED INVESTMENT STRATEGY Focus on Adding Scale in Attractive, High-Barrier-to-Entry Markets •Acquisitions, 2008 - June 30, 2016 •Dispositions, 2008 - June 30. 2016 Q Development Properties, 2014 - June 30, 2016 $2.4 billion $460 million 1) Transactions closed from 2008 through Ju
Slide 18: External Growth: Focused Investment Strategy Acquisitions
EXTERNAL GROWTH: FOCUSED INVESTMENT STRATEGY 19 Acquisitions 2008 – June 20162 Total Portfolio June 20162 Total Portfolio January 2008 Dispositions, 2008 – June 20162 1 Population (3-Mile Radius, Weighted by Revenue) Note: Bubbles sized by revenue. 1) Realized annual rent per occupied sq ft is compu
Slide 19: External Growth: High-Quality Assets
EXTERNAL GROWTH: HIGH-QUALITY ASSETS Enhancing Our Portfolio by Adding Purpose-Built Class A Facilities Malvern,PA Bronx,NY
Slide 20: External Growth: Development
EXTERNAL GROWTH: DEVELOPMENT Leverage Local Market Expertise of Partners to Generate Highest Returns $42.3M Total $49.3M Total $98.6M Total $49.8M Total 4Q17 2Q15 Arlington, VA-$17.1M 1Q16 Queens, NY-$31.8M Brooklyn, NY - $49.8M Bronx,NY - $17.2M 1Q14 Malvern, PA-$25.1M 4Q15 Queens, NY - $17.4M 2Q16
Slide 21: External Growth: Purchase at Completion
EXTERNAL GROWTH: PURCHASE AT COMPLETION Acquire High-Quality, Purpose-Built Assets and Add to CubeSmart Platform with Sophisticated Marketing and Revenue Management Systems Total 9.4M Total Total lyn, NY - $48.5M 2Q76 Fort Worth,TX-$10.1M 2Q76 Grapevine, TX - $10.8M $43.3M 1Q17 Miami, FL - $20.8M 1Q
Slide 22: External Growth: Impactful Third-Party Management Platform
EXTERNAL GROWTH: IMPACTFUL THIRD-PARTY MANAGEMENT PLATFORM Third-party management allows us to leverage our operating platform and generate additional economies of scale Platform has grown to 277 properties since its inception in 2009 Purchased 62 properties from our managed portfolio for $562 milli
Slide 23: Financial Strength
FINANCIAL STRENGTH Recent Activity Raised $88.7 million year-to-date in net offering proceeds through at-the-market equity program Issue $250.0 million of 4.0% unsecured senior Amended credit agreement to increase revolving line of credit to from $300 million - Extended maturity to April 2020 from J
Slide 24: Financial Strength: Investment Grade Balance Sheet
FINANCIAL STRENGTH: INVESTMENT GRADE BALANCE SHEET Investment Grade Ratings Baa2 (Stable) BBB (Stable) Conservative Metrics (As of June 30, 2016) Debt / Gross Assets 36% Debt + Preferred / Gross Assets 38% Debt/EBITDA1 4.6x Debt + Preferred / EBITDA1 4.8x Secured Debt / Gross Assets 3.5% 1) Based on
Slide 25: External Growth: Key Credit Metrics
EXTERNAL GROWTH: KEY CREDIT METRICS 26 2010 2011 2012 2013 2014 2015 $0.70 $0.40 20.0% $0.10 2010 2011 2012 2013 2014 2015 Dividend per Share Dividend Payout Ratio REIT Avg. Payout Ratio % of Gross Assets Dividend per Share EBITDA / Interest Expense Dividend Payout Ratio 60% 50% 40% 30% 20% 10% 0% 2
Slide 26: Summary
Summary Robust organic growth fueled by a focus on customer service, continued enhancement of our operational infrastructure, and a widening divide between large and small operators Meaningful external growth through a disciplined investment process supplemented by a competitive and expanding third-
Slide 27: Historical Company Data
HISTORICAL COMPANY DATA 28 Same-Store Performance 1 2010 2011 2012 2013 2014 2015 External Growth Trading & Valuation Metrics Market Equity Value2 $965 $1,277 $2,049 $2,335 $3,752 $5,496 Total Market Capitalization2 $1,580 $2,035 $3,073 $3,474 $4,926 $6,758 Total Gross Assets2 $1,793 $2,195 $2,504 $
Slide 28: Contact Us
Contact Us 181 Contact Info Charles Place Director, Investor Relations Email: cplace@cubesmart.com cl Telephone Office Phone: 610.535.5700
Slide 29: Contact Us
Contact Us & Contact Info Charles Place Director, Investor Relations Email: cplace@cubesmart.com op Telephone Office Phone: 610.535.5700 @ CuseSmart