Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (September 2018)
26 slides from Cubesmart's investor presentation, Sep 25, 2018
Slide 1: Introduction to CubeSmart
Introduction to CubeSmart MarketCap2 Adjusted4 31 September 2018 Investor Presentation 1. 2. 3. As of June 30,2018 Market value of common equity and book value of debt as of June 30,2018 Annual dividends declared in period ending December 31,2017 I 4. Period ending December 31, 2017 115% 5-year Grow
Slide 2: It's what's inside CubeSmart that counts
It's what's inside CubeSmart: that counts. 41 September 2018 Investor Presentation
Slide 3: Sophisticated Operating Platform
Sophisticated Operating Platform Integrated strategy to maximize customer acquisition and retention Customer Value achieve the ultimate goal of revenue maximization customer needs and exceed expectations of the storage experience 51 September 2018 Investor Presentation Customer Service Strategic inv
Slide 4: Refined Customer Acquisition Strategy
Sophisticated Operating Platform Refined Customer Acquisition Strategy Integrated approach across all channels drives customers through the funnel Maximize value from each customer through an appealing value proposition Deliver an unparalleled experience to encourage retention and advocacy 61 Septem
Slide 5: Long-Term Revenue Maximization
Sophisticated Operating Platform Long-Term Revenue Maximization Multi-faceted approach to dynamically manage supply/demand balance Demand Forecast/Revenue Optimization Price optimization requires consideration of a multi-dimensional demand landscape & ever-changing capacity constraints Balance betwe
Slide 6: Refined Customer Acquisition Strategy
Sophisticated Operating Platform Refined Customer Acquisition Strategy Integrated approach across all channels drives customers through the funnel Building Brand. Awareness Driveri ee ww Marketing: xo Attract the greatest share of potential demand It’s what's inside that counts. Maximize value from.
Slide 7: Understanding the Needs of Our Customers
Sophisticated Operating Platform Understanding the Needs of Our Customers Striving to fulfill our mission of simplifying our customers· organizational challenges .. Attract the greatest share of potential demand Rita Ryan Mary Erik Dave Maximize value from each customer through an appealing value pr
Slide 8: Award-Winning Service Culture
Sophisticated Operating Platform Award-Winning Service Culture Attract the greatest share of potential demand Maximize value from each customer through an appealing value proposition 10 ISeptember 2018 Investor Presentation
Slide 9: Third-Party Owners Continually Choose CubeSmart
Sophisticated Operating Platform Third-Party Owners Continually Choose CubeSmart Owners repeatedly trust their investments to the CubeSmart platform 11 ISeptember 2018 Investor Presentation 1. As of June 30,2018 Third-Party Managed Properties 600 500 400 300 200 100 0 2009 2010 2011 2012 2013 2014 2
Slide 10: Award-Winning Service Culture
Award-Winning Service Culture Deliver an unparalleled experience to ‘encourage retention and advocacy 10 | September 2018 Investor Presentation Redefining Service in the Self-Storage Industry Since 2012, CubeSmart has been repeatedly honored for outstanding achievements, including: This readers-choi
Slide 11: National Platform with a Focus in Core Markets
High-Quality Portfolio National Platform with a Focus in Core Markets revenue1 Our top 12 markets are major metro areas which generate 68°/o of • Owned & Managed Managed Only ® Top 12 Market 131 September 2018 Investor Presentation 1. 2nd Quarter 2018 2. Property Counts as of June 30,2018
Slide 12: Industry-Leading Portfolio
High-Quality Portfolio Industry-Leading Portfolio Enhancing a high-quality portfolio with a focus on top-25 MSAs 1 2 Storage REIT Exposure to Top 25 MSAs 2017 3-Mile Population fin thousands) 100% 180 160 140 120 100 80 60 40 20 0 75% 80% 70% 61% 55% 60% 41% 40% 20% 0% CUBE PSA EXR LSI NSA CUBE PSA
Slide 13: 1. Source: US Census Bureau, 2018 Self Storage Almanac, Internal Market Research 2. Source:
1. Source: US Census Bureau, 2018 Self Storage Almanac, Internal Market Research 2. Source: New York City Department of City Planning
Slide 14: Enhancing the Portfolio with New Properties
High-Quality Portfolio Enhancing the Portfolio with New Properties Adding value through the development of purpose-built, class A stores $40.8M Total Chicago, IL (2) Delray Beach, FL Vl c: o...-:·;-:::;0 ......... -u ::J ..... e-re u <.( 161 September 2018 Investor Presentation 1. Openings per year
Slide 15: New York City Market Leader
High-Quality Portfolio New York City Market Leader Leading operator of high-quality stores in this premier market Se Market Dynamics Dynamic and diverse population of more than 85 million residents renters compared to anational average Availabl juare feet per capita of 2.1, well below the national G
Slide 16: Extensive Access to Capital
Disciplined Capital Allocation Extensive Access to Capital Access to the full spectrum of capital sources to meet obligations and fund growth Debt to Gross Assets 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20 O% • Raised $1.3 billion in net proceeds • • Five 10-year unsecured note issuances •
Slide 17: 1,2 1. 2. 3. Source: Company Filings, as of December of each stated year
1 1,2 3 1. 2. 3. Source: Company Filings, as of December 31 of each stated year Calculated as annual EBITDA / Interest Expense As of June 30, 2018
Slide 18: Funds From Operations Growth & Dividend Growth
Disciplined Capital Allocation Funds From Operations Growth & Dividend Growth Growing FFO has generated meaningful increases in distributions 1 AnnualDividend per Share FFO per Share, as adjusted +15.0% CAGR +24.6% CAGR $1.20 $1.75 $1.50 $1.00 $1.25 $0.80 $1.00 $0.60 I $0.75 $0.50 $0.40 $0.20 1 $o.2
Slide 19: Current Self-storage Operating Environment
Current Self-storage Operating Environment continues to be an attractive sector 21 ISeptember 2018 Investor Presentation
Slide 20: Generating Outsized Results
Current Operating Environment Generating Outsized Results Sophisticated platform maximizes performance dynamic revenue management systems and 221 September 2018 Investor Presentation Source: CUBE, EXR, PSA,& LSI Company Filings Constantly evolving marketing techniques coupled with award-winning cust
Slide 21: Recent Highlights
Current Operating Environment Recent Highlights Executing on strategic objectives $65.4 million in acquisitions2 NOI Revenue Expenses NOIMargin +3.6% +3.5% +3.3% 70.7% 88 new third-party management contracts3 $352.4 million in investments under contract2 231 September 2018 Investor Presentation 1. F
Slide 22: It's what's inside CubeSmart that counts
It's what's inside CubeSmart: that counts. 241 September 2018 Investor Presentation
Slide 23: 1. 2. 3. Performance as reported for the same-store pool as it was constituted
1. 2. 3. Performance as reported for the same-store pool as it was constituted at the end of the respective year Year-ending values as detailed in Company's supplemental packages Calculated as ending common share price / funds from operations per share, as adjusted. Please refer to CubeSmart’s publi
Slide 24: CubeSmart: It's what's inside that counts
CubeSmart: It’s what’s inside that counts. High-Quality Portfolio Prudently building on our portfolio of high-quality assets with a disciplined growth strategy of investing in targeted markets to maximize risk-adjusted returns Disciplined Capital Allocation An investment-grade balance sheet provides
Slide 25: Historical Company Data
Historical Company Data Same-Store Performance’ 2010 _2011__2012 _2013__2014_—-2015_—-2016__ 2017 Revenue Growth 0.3% [| 3.6% | 3.8% | 74% | 7.2% | 7.3% | 7.0% | 4.4% NOI Growth 1.0% | 5.7% | 6.0% | 9.3% | 9.6% | 9.6% | 10.2% | 5.1% YOY Occupancy Growth [BPS] 16% | 2.0% | 3.4% | 5.3% | 26% | 15% | 0
Slide 26: Contact Us