Slide 1: Safe Harbor Statement
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 ex
Slide 2: Introduction to CubeSmart
INTRODUCTION TO CUBESMART 3 Self-Storage REIT with Expansive National Platform Owned Portfolio by Market New England 15 NYC, No. NJ 58 CT 22 Chicago 40 No. CA 12 Ohio 20 Phila., So. NJ 19 CO, UT 15 Inland Empire 16 Balt., DC 28 Tenn 7 AZ, NV, NM 40 NC 8 So. CA 12 Atlanta 18 Major TX 63 Other FL 58 M
Slide 3: High-Quality Portfolio
HIGH-QUALITY PORTFOLIO 4 A Disciplined Investment Leading Demographics Strategy has Built an Industry-Leading Portfolio A Focus on Supply Constrained Markets (in ‘000) 1 ($ in ‘000) 1) Determined by ranking top 100 markets by net rentable square feet per person with “1” being the market with the low
Slide 4: Long-Term Vision for Value Creation
LONG-TERM VISION FOR VALUE CREATION 5 INTERNAL GROWTH Maximize portfolio value through continued focus on customer service and operational enhancements. EXTERNAL GROWTH Continue to prudently build a portfolio of high-quality assets, with a focus on targeted markets. FINANCIAL STRENGTH Finance growth
Slide 5: Internal Growth: 2016 Same-Store Results
6 INTERNAL GROWTH 2016 Same-Store Results1 Year-to-Date Revenue +7.4% Revenue Growth driven increasingly by effective rent growth NOI2 +11.0% Expenses (0.5%) Average Occupancy +93.1% (+90 bps YOY) Expense Growth is expected to remain inflationary, except for continued pressure on real estate taxes 2
Slide 6: Internal Growth: Performance Fueled by Innovation
INTERNAL GROWTH: PERFORMANCE FUELED BY INNOVATION 7 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 relati
Slide 7: Internal Growth: Internet Marketing
INTERNAL GROWTH: INTERNET MARKETING 8 Optimizing marketing efforts and efficiently attracting customers through use of industry leading analytics.
Slide 8: Internal Growth: Internet Marketing
INTERNAL GROWTH: INTERNET MARKETING 9 CUSTOM EXPERIENCE 1 PERSONA 1 CUSTOM EXPERIENCE 2 PERSONA 2 VISITOR DATA AND BEHAVIOR CUSTOM EXPERIENCE 3 PERSONA 3 VISITORS Adjusting to evolving marketing ecosystems and engagement mediums Continued focus on capturing and leveraging insights about customers to
Slide 9: Internal Growth: Traditional Marketing
INTERNAL GROWTH: TRADITIONAL MARKETING 10 Out-of-home placements in markets with high store concentration Hyper-targeted direct mail campaigns in select markets Customized local marketing efforts to target residential and commercial customers Supplementing internet marketing initiatives with a tradi
Slide 10: Internal Growth: Revenue Management Landscape
INTERNAL GROWTH: REVENUE MANAGEMENT 11 Revenue Management Landscape Multi-Family Residential Self Storage Airlines Hotels Supply Constraints Competition Seasonality Low Transaction Volume Unpredictable Length of Stay Historically, advanced revenue management techniques have boosted revenue in a numb
Slide 11: Internal Growth: Fundamental Pricing Issues
INTERNAL GROWTH: REVENUE MANAGEMENT 12 Fundamental Pricing Issues Pricing optimization requires consideration of a multi-dimensional demand landscape and dynamic capacity constraints Substitutability CSoumbspteittuittiaobnility TCimominpgetition CTaimpaincgity / Economic Outcomes Capacity / Economic
Slide 12: Internal Growth: Long-Term Revenue Maximization Strategy
INTERNAL GROWTH: REVENUE MANAGEMENT 13 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 provi
Slide 13: Internal Growth: Customer Service
INTERNAL GROWTH: CUSTOMER SERVICE 14 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 Mo
Slide 14: Internal Growth: An Award-Winning Service Culture
INTERNAL GROWTH: CUSTOMER SERVICE 15 An Award-Winning Service Culture
Slide 15: External Growth: Investment Strategy
16 EXTERNAL GROWTH Investment Strategy $294.7 million in year-to-date acquisitions1 Focus on high-quality properties in high-barrier-to-entry markets $133.4 million openings in year-to-date new development Leverage relationships with development partners to invest selectively in accretive developmen
Slide 16: External Growth: Focused Investment Strategy
EXTERNAL GROWTH: FOCUSED INVESTMENT STRATEGY 17 Focus on Adding Scale in Attractive, High-Barrier-to-Entry Markets 16 Acquisitions1,2 $2.6 billion Dispositions1 $460 million 147 Stores 238 Stores 1) Transactions closed from 2008 through September 30, 2016. 2) Includes investment in 35 properties thr
Slide 17: External Growth: Focused Investment Strategy
EXTERNAL GROWTH: FOCUSED INVESTMENT STRATEGY 18 Acquisitions 2008 – September 20162 Total Portfolio September 20162 Total Portfolio January 2008 Dispositions, 2008 – September 20162 Note: Bubbles sized by revenue. 1) Realized annual rent per occupied sq ft is computed by dividing rental income by th
Slide 18: External Growth: High-Quality Assets
EXTERNAL GROWTH: HIGH-QUALITY ASSETS 19 Enhancing Our Portfolio by Adding Purpose-Built Class A Facilities
Slide 19: External Growth: Development
EXTERNAL GROWTH: DEVELOPMENT 20 Leverage Local Market Expertise of Partners to Generate Highest Returns 2015 2016 2017 2018 $49.3M Total $98.8M Total $49.8M Total $218.6M Total 2Q15 Arlington, VA - $17.1M 1Q16 Queens, NY - $31.8M 4Q17 Brooklyn, NY - $49.8M 1Q18 New York, NY - $72.9M 4Q15 Queens, NY
Slide 20: External Growth: Purchase at Completion
EXTERNAL GROWTH: PURCHASE AT COMPLETION 21 Acquire High-Quality, Purpose-Built Assets and Add to CubeSmart Platform Sophisticated Marketing and Revenue Management Systems with 2016 2017 2015 $69.4M Total $43.3M Total 2Q17 Chicago, IL - $11.2M $15.8M Total 1Q16 Brooklyn, NY - $48.5M 2Q15 Dallas, TX -
Slide 21: External Growth: Impactful Third-Party Management Platform
EXTERNAL GROWTH: IMPACTFUL THIRD-PARTY MANAGEMENT PLATFORM 22 Third-party management allows us to leverage our operating platform and generate additional economies of scale Platform has grown to 291 properties since its inception in 2009 Purchased 63 properties from our managed million1 since 2010 p
Slide 22: Financial Strength
23 FINANCIAL STRENGTH Recent Activity Approach Raised $137.7 million year-to-date in net offering proceeds through at-the-market equity program Fund external growth in a manner consistent with our objective of maintaining our investment grade credit ratings Issued $300.0 million of 3.125% unsecured
Slide 23: Financial Strength: Investment Grade Balance Sheet
FINANCIAL STRENGTH: INVESTMENT GRADE BALANCE SHEET 24 Investment Grade Ratings Conservative Metrics (As of September 30, 2016) Debt / Gross Assets Debt + Preferred / Gross Assets Debt / EBITDA1 Debt + Preferred / EBITDA1 Secured Debt / Gross Assets 37% 39% 4.6x 4.9x 2.8% Baa2 (Stable) BBB (Stable) 1
Slide 24: External Growth: Key Credit Metrics
EXTERNAL GROWTH: KEY CREDIT METRICS 25 Strong Operating Performance Coupled with Conservative Balance Sheet Management Continues to Improve Credit Metrics 2010 2011 2012 2013 2014 2015 $0.70 $0.40 $0.20 Dividend per Share Dividend Payout Ratio REIT Avg. Payout Ratio 1) Source: Company Filings. 2) So
Slide 25: Summary
26 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 thi
Slide 26: Historical Company Data
HISTORICAL COMPANY DATA 27 Same-Store Performance 1 2010 2011 2012 2013 2014 2015 External Growth Trading & Valuation Metrics 1) Performance as reported for the same-store pool as it was constituted at the end of the respective year. 2) Year-ending values as detailed in Company’s supplemental packag
Slide 27: Contact Us
28 Contact Us Contact Info Charles Place Director, Investor Relations Email: cplace@cubesmart.com Telephone Office Phone: 610.535.5700
Slide 28: Contact Info
& Contact Info Charles Place 2 Telephone Office Phone: 610.