Slide 1: Investor Presentation June 2012
Investor Presentation June 2012
Slide 2: 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 expectations will be achie
Slide 3: Company Overview: A National Platform
3 Company Overview: A National Platform Owned Managed Self-storage REIT with 478 facilities1 across the United States 376 owned facilities; 102 facilities managed on behalf of third-party owners An additional ~825 partner facilities2 in the CubeSmart Network Property count as of March 31, 2012. Cube
Slide 4: The CubeSmart Story: Attractive Industry
4 The CubeSmart Story Attractive Industry Quality Portfolio Conservative Balance Sheet
Slide 5: Attractive Industry Characteristics
1 in 10 US households uses self storage, up from 1 in 17 in 19951 Widely fragmented industry provides runway for consolidators Low variable cost level (operating leverage) fuels NOI growth Low maintenance cap-ex requirements Absence of tenant improvement requirements High operating margins Demand is
Slide 6: NOI Performance: Correlation with Multifamily
6 NOI Performance: Correlation w/ Multifamily NOI = “Net Operating Income” Data source: SNL. CubeSmart calculations. Weighted average of 4 storage REITs. Data source: SNL. CubeSmart calculations. Weighted average of 12 multifamily REITs. Notable correlation between self-storage NOI performance and t
Slide 7: Home Ownership Trends Support Growth
7 Home Ownership Trends Support Growth Declining US Homeownership US homeownership rate. Source: US Census Bureau Housing Vacancy Survey, 1Q12. Renters move roughly three times more frequently than homeowners do Fewer Owners = More Renters More Mobility Movers represent more than ½ of self storage c
Slide 8: Extended Length of Stay Supporting Results
8 Extended Length of Stay Supporting Results Median Length of Stay +28% Widening lengths of stay offset soft rental activity during the recession and continue to support performance 1 CubeSmart same-store portfolio. Median length of stay of tenants who moved in during the specified time period. 2 2
Slide 9: Limited New Supply to Absorb Demand
9 Limited New Supply to Absorb Demand Source: Cushman & Wakefield, Inc., Self Storage Performance Quarterly. New construction tracked by F.W. Dodge. Includes new construction, alterations, renovations, and interior construction. Trailing four quarters ending March 31, 2012, as compared with full yea
Slide 10: REITs Taking Market Share
10 REITs Taking Market Share Year-Over-Year Occupancy Gains Source: Cushman & Wakefield, Inc., Self Storage Performance Quarterly – 2Q11, 3Q11, 4Q11, and 1Q12. Source: CUBE, SSS, PSA, and EXR public filings. Average of year-over-year change in reported period-ending occupancies. 250 basis point aver
Slide 11: Benefits of Scale and Sophistication
11 Benefits of Scale and Sophistication Strategic Partnerships Enhanced Services Marketing & Internet Presence People Internal Resources Processes Customer Capture Relationships Quality Team Sales Center Store Managers Systems Leveraging these resources provides a significant competitive advantage o
Slide 12: Technology: A Paradigm Shift for Storage
12 Technology: A Paradigm Shift for Storage The Need to Stay Relevant The Power to Act on Information Technology has transformed the way in which storage companies learn about, respond to, attract, engage and, ultimately, capture and retain their customers. CUBE’s sophisticated marketing, revenue ma
Slide 13: CubeSmart's Differentiated Service Platform
13 CubeSmart’s Differentiated Service Platform Organization – Offering resources that help customers track & organize their things Logistics – Helping customers get their items into and out of their space Amenities – Providing a more comfortable and accommodating environment Customization – A la car
Slide 14: The CubeSmart Story: Quality Portfolio
14 The CubeSmart Story Attractive Industry Quality Portfolio Conservative Balance Sheet
Slide 15: Recent Repositioning Has Been Substantial
Acquisitions Since 2008: $265 MM Dispositions Since 2008: $234 MM Storage Deluxe: $560 MM Capital Recycling 1 2 1 Dotted Lines = Same-Store Portfolio, 1Q12 3 Note: Bubbles sized by transaction value. All closed transactions as of 3/31/2012, including both stabilized and lease-up properties as well a
Slide 16: A Markedly Improved Portfolio
Realized annual rent per occupied square foot is computed by dividing rental income by the weighted occupied sq ft for the period. Pro Forma, including all consolidated JV and wholly-owned assets as of 3/31/2012 as well as the second pool of the Storage Deluxe portfolio. 16 A Markedly Improved Portf
Slide 17: Now Positioned in Higher-Growth Markets
Current Total Portfolio January 2008 Portfolio Pro Forma, including all consolidated JV and wholly-owned assets as of 3/31/2012, as well as the entirety of the second pool of the Storage Deluxe portfolio. 17 Now Positioned in Higher-Growth Markets Roughly 60% of portfolio NOI is generated from “core
Slide 18: Recent Activity – Continued Enhancement
Acquisitions: $75 to $125 million target As of March 31, 2012, had closed on one asset in Houston and one asset in Atlanta for a total price of $12 million. Dispositions: $35 to $50 million target 18 Recent Activity – Continued Enhancement Acquisitions: $714 million1 $154 million excluding the Stora
Slide 19: Transformational Storage Deluxe Transaction
19 Transformational Storage Deluxe Transaction $560 million transaction 22 assets representing 1.6 million net rentable square feet, predominantly in the Greater New York City area Establishes CubeSmart as the largest owner of self-storage assets in New York City – one of the most attractive storage
Slide 20: Opportunity for Meaningful External Growth
20 Opportunity for Meaningful External Growth Industry Fragmentation Runway for Consolidation in Both Ownership & Operations Acquisitions 3rd Party Mgmt Catalysts Significant levels of debt maturities in coming years on privately held storage assets. Operational advantages for large-scale platforms
Slide 21: Relationships Create Opportunity
21 Relationships Create Opportunity Source of 2011 Acquisitions, By Transaction Value Including Storage Deluxe1,2) Excluding Storage Deluxe2 1) Total Storage Deluxe transaction value, including the first and second pools. 2) Includes CUBE’s proportional share (50%) of the $90 million HSRE joint vent
Slide 22: The CubeSmart Story: Conservative Balance Sheet
22 The CubeSmart Story Attractive Industry Quality Portfolio Conservative Balance Sheet
Slide 23: Commitment to Conservative Capital Structure
Common and preferred market values as of March 31, 2012. Secured and unsecured book value as of March 31, 2012. Excludes any debt assumption and credit facility borrowings associated with the closing of the final two Storage Deluxe assets that had not yet closed as of quarter end. 23 Commitment to C
Slide 24: BBB- Investment Grade Balance Sheet
BBB- 24 Investment Grade Balance Sheet NOI from Unencumbered Assets 3/31/12 12/31/08 Debt / Gross Assets Rating 51% 37% Unrated Baa3 Significant balance sheet evolution over past three years Continued focus on maintaining and improving metrics BBB - Encumbered 51% Unencumbered 49% NOI from Unencumbe
Slide 25: Balanced Maturity Profile
25 Balanced Maturity Profile December 31, 2008 March 31, 2012 Less than 20% maturing in any given year Weighted Average Maturity: 2.5 years Weighted Average Maturity: 3.5 years $- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 1 2 3 4 5 6 7 8+ Maturities ($million) Years to Maturity Secured Unsecured
Slide 26: Full Spectrum of Capital Sources to Support Growth
26 Full Spectrum of Capital Sources to Support Growth Free Cash Flow Private Public Equity Debt OP Units Free Cash Flow Strategic Dispositions Joint Venture Investment Unsecured Bank Financing Private Placement of Unsecured Debt CMBS / Secured Debt Secondary Common Equity Offering At-The-Market Equi
Slide 27: The CubeSmart Story
27 The CubeSmart Story Attractive Industry Quality Portfolio Conservative Balance Sheet
Slide 28: Investor Relations Contact
Investor Relations Contact Daniel Ruble, CFA Vice President, Finance 460 E. Swedesford Rd. Suite 3000 Wayne, PA 19087 610.293.5700 druble@cubesmart.com