Smartstop Self Storage Reit, Inc. · NYSE:SMA
Smartstop Self Storage Reit — Q4 2022 Earnings Presentation
30 slides from Smartstop Self Storage Reit's earnings presentation, Apr 4, 2023
Slide 1: 2022 Fourth Quarter Update
2022 Fourth Quarter Update H. Michael Schwartz – Chairman & CEO Texas City Texas Exhibit 99.1
Slide 2: Disclaimer & Risk Factors
Disclaimer & Risk Factors Certain of the matters discussed in this investor presentation constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be identified by our
Slide 3: Awards and Accolades
Awards and Accolades BBB- Investment-Grade Credit Rating from Kroll Bond Rating Agency, Inc. (2022 + 2023)
Slide 4: SmartStop Platform at a Glance
SmartStop Platform at a Glance 11th Largest Self Storage Company in the U.S.(1) ~14.4 Million(2) Owned or Managed Rentable Square Feet 181(2) Owned or Managed Self Storage Facilities $2.9 Billion Total Capitalization(4) >$5.0 Billion Historical Self Storage Transaction Activity(3) ~450 Employees Sma
Slide 5: SmartStop's Leadership Team
SmartStop’s Leadership Team Deep leadership team with an average of over 15 years of storage experience 5-123-187 21-155-215 127-190-66 127-127-127 182-182-182 H. Michael Schwartz Chairman & CEO 19 years’ self storage experience Wayne Johnson President & CIO 37 years’ self storage experience James B
Slide 6: Investment Highlights
Institutional Operator And Technology Platform Demonstrated Ability To Grow Externally Conservative And Diversified Capital Structure Experienced Management Team And Board High Quality, Diversified Portfolio In Key Growth Markets Investment Highlights 1 2 3 5 6 High Growth Portfolio of Stabilized an
Slide 7: Owned Portfolio Overview as of 12/31/2022
Owned Portfolio Overview as of 12/31/2022 Note: Figures reflect wholly-owned JVs at 100% of NRSF. (1) Toronto included as a top 25 MSA. Top 25 MSA’s as defined by 2020 U.S. Census Bureau data. (2) MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropo
Slide 8: Major US Markets: Miami / Ft. Lauderdale and Los Angeles
Major US Markets: Miami / Ft. Lauderdale and Los Angeles Sources: Company internal data as of 12/31/22. (1) RentPOF defined as annualized rental revenue net of discounts & concessions, excluding late fees, administrative fees and parking income, divided by occupied square feet of storage. MSA(1) NRS
Slide 9: Greater Toronto Area Overview
Home to the Toronto Stock Exchange, leading financial institutions and an array of Canada’s largest companies With accommodative immigration policies and a high-quality education system, the GTA is attracting young, highly skilled workers and quickly emerging as a hotbed for the digital economy Rank
Slide 10: Greater Toronto Area Storage Market Overview
Greater Toronto Area (“GTA”) Storage Market Overview % Population Growth Sq. Ft. / Capita The GTA market exhibits many of the positive market characteristics of the top U.S. MSAs, with far less institutional competition The GTA’s Low Supply Ratio and Strong Population Growth Suggests a Long Runway f
Slide 11: SmartStop is a Leading Institutional Operator in Toronto
SmartStop is a Leading Institutional Operator in Toronto Milton, ONT Toronto, ONT SmartStop GTA Owned Portfolio Map(3) SmartStop GTA Highlights 12 Years of experience in GTA Market 5th Largest Operator in GTA(1) 6% GTA Market Share(1) 1.7mm SF / 13.9% Of Total SmartStop Owned Sq. Ft.(2) 20 Owned Ope
Slide 12: SmartStop's Opportunity in Canadian Markets
SmartStop’s Opportunity in Canadian Markets Future Canadian Growth 5-123-187 21-155-215 127-190-66 127-127-127 182-182-182 Canadian Market Leader Largest U.S. Owner in Toronto Market Dedicated Canadian Website: Smartstop.ca Toronto, ON Québec Ontario Toronto 3.0x 1.6x Montreal 2.3x Vancouver British
Slide 13: Case Study: Vaughan, Ontario
50 Cityview Blvd. Vaughan, Ontario(1) Case Study: Vaughan, Ontario 5-123-187 21-155-215 127-190-66 127-127-127 182-182-182 Ground up four story development opened in February 2021 Built on a 1.6 acre lot adjacent to the SmartCentres Vaughan shopping center, The Home Depot and the Walmart Supercenter
Slide 14: External Growth: Investment Activity
External Growth: Investment Activity Note: All acquisition and development prices for SmartStop reflect the original purchase price executed by SmartStop, including Strategic Storage Growth Trust, Inc., Strategic Storage Trust IV, Inc., and Strategic Storage Growth Trust II, Inc. (1) Acquisitions co
Slide 15: SmartStop Managed REIT Platform
Operational Properties NRSF Allocation SmartStop Managed REIT Platform (1) As of 12/31/2022 (2) As of 2/28/2023. Excludes Joint Venture developments. Includes all rentable units and rentable square feet, consisting of storage units and parking units Strategic Storage Growth Trust III, Inc. $92M AUM
Slide 16: Updated Net Asset Value Per Share
Updated Net Asset Value Per Share Declared Net Asset Value (“NAV”) of $15.21/share as of September 30, 2022 Represents an increase of approximately 1% from previous declared NAV as of June 30, 2021 Valuation range between $14.15 - $16.38 Independent, 3rd Party Valuation by Robert A. Stanger & Co, In
Slide 17: Investment Grade Rated Balance Sheet
Investment Grade Rated Balance Sheet (1) Does not take into account potential extension options. (2) Leverage as measured by debt less cash to total capitalization (total capitalization includes debt, preferred equity and equity market cap) (3) Includes the impact of interest rate derivatives, inclu
Slide 18: Operations & Investment Update 4Q22 Highlights
2022 2022 2021 2022 2021 Operations & Investment Update 4Q22 Highlights Post Quarter-End Operational Updates YoY same-store results Revenues increased 8.2% Operating expenses increased 7.9% NOI increased 8.4%(1) Average physical occupancy decreased 210bps to 93.3% Annualized rent per occupied square
Slide 19: Solar Initiative
Solar Initiative (1) Includes wholly-owned, joint venture operating assets and assets owned by the Managed REITs as of 12/31/2022. Western U.S. includes Arizona and California. Central U.S. includes Colorado, Illinois, Indiana, Michigan and Texas. Eastern U.S. includes Florida, Maryland, Massachuset
Slide 20: Store Branding and Brand Awareness
Store Branding Brand Awareness Strong and Valuable Brand Identity Well-Known Brand Name Brand Protection Recognizable Signage and Colors SmartStop® Brand Appearances Registered trademarks in U.S. / Canada +250 U.S. / Canadian domain names Continued investment in brand and marketing translates to cus
Slide 21: Industry Leader in Customer Experience
Ability to search for and reserve units at one of SmartStop’s 180+ locations Integrated into revenue management system to update pricing and occupancy real time Online Reservations Industry Leader In Customer Experience Technology-driven platform gives SmartStop the ability to meet customers’ unique
Slide 22: Sophisticated Operating And Analytics Technology
Sophisticated Operating And Analytics Technology Optimization of rental rates, discounts, and incentives driven by scientifically-based, proprietary pricing models Proprietary competitive rate analysis allows dynamic and real-time pricing based on forecasted future demand Evaluation and implementati
Slide 23: Update To Share Redemption and Distribution Reinvestment Plan
Update To Share Redemption and Distribution Reinvestment Plan In March 2022, our board of directors (“Board”) approved the suspension of our Share Redemption Program (“SRP”) and Distribution Reinvestment Plan (“DRP”) in connection with the process of reviewing alternatives to provide liquidity to st
Slide 24: SmartStop Self Storage REIT, Inc.
al, SmartStop Self Storage REIT, Inc. .. The Smarter Way to Store!” Investor Presentation 24
Slide 25: MSA Exposure – Same-Store
MSA Exposure – Same-Store Same-Store Portfolio at 12/31/22 Note: Data presented represents SmartStop’s existing owned same-store portfolio only MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolitan Area) as defined by Statistics Canada. RentPOF
Slide 26: MSA Exposure – Total Portfolio
MSA Exposure – Total Portfolio Wholly-Owned Total Portfolio at 12/31/22 MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolitan Area) as defined by Statistics Canada. Other markets include: Baltimore, Charleston, Charlottesville, College Station,
Slide 27: Reconciliation: Net Income (Loss) to Net Operating Income
Reconciliation: Net Income (Loss) to Net Operating Income Excludes tenant protection program revenue.
Slide 28: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) This represents the portion of the above stated adjustments in the calculations of FFO and FFO, as adjusted, that are attributable to our non-controlling interests. Includes all Class A Shares, Class T Shares and OP Units, as well as the dilutive effect on FFO an
Slide 29: Reconciliation: Net Income (Loss) to Adjusted EBITDA: Trailing 5 Quarters
Reconciliation: Net Income (Loss) to Adjusted EBITDA: Trailing 5 Quarters Tax related expense consists primarily of adjustments to deferred tax liabilities, state franchise taxes, and state, federal, and Canadian income tax. The contingent earnout adjustment represents the adjustment to the fair val
Slide 30: Additional Information Regarding FFO & FFO, as adjusted and NOI
Additional Information Regarding FFO & FFO, as adjusted and NOI Funds from Operations (“FFO”) and FFO, as adjusted Funds from operations (“FFO”) is an industry wide metric promulgated by the National Association of Real Estate Investment Trusts, or NAREIT, which SmartStop believes to be an appropria
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