Slide 1: May 2024 Investor Presentation
May 2024 Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement The forward-looking statements contained in this presentation are subject to various risks and known and unknown uncertainties. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assur
Slide 3: Introduction to CubeSmart
Introduction to CubeSmart A high-quality portfolio in an attractive industry with proven returns 1,473 Properties1 $13.2 Billion Enterprise Value3 52% 5-year total shareholder return2 62% 5-year Dividend Growth4 63% 5-year Growth in FFO, as adjusted per share2 Baa2/BBB Rating $2.9 Billion 5-year acq
Slide 4: Why CubeSmart?
Why CubeSmart? A company built to perform throughout all phases of the cycle Attractive Industry Well-diversified demand characteristics create strong industry fundamentals Cash Flow Stability Industry-leading portfolio demographics and a conservative balance sheet produce stable cash flows througho
Slide 5: CubeSmart's History
CubeSmart’s History A history of executing on strategic objectives 2004 2006 2010 2011 2011 U-Store-It initial public offering Arrival of current management team Acquired United Stor-All to establish the third-party management platform Rebranded the company as CubeSmart Won 1st ISS industry award fo
Slide 6: Attractive Industry
Attractive Industry Strong sector fundamentals generate outsized long-term returns Dynamic Demand Wide range of needs drives demand for the product throughout all economic cycles High Margins Low expense load & cap-ex requirements drive more cash flow to the bottom line Short-Term Leases Month-to-mo
Slide 7: Cash Flow Stability
Cash Flow Stability National scale with a focused concentration in key markets National Scale CubeSmart operates in 182 markets across 41 states and the District of Columbia1, providing diversification throughout the country Key Market Depth A portfolio focused on coverage across all attractive subm
Slide 8: Diversified Portfolio in Quality Markets
Diversified Portfolio in Quality Markets National platform with a focus in core markets to drive long-term value States with Managed Stores Only States with Owned Stores Focus on Top Markets 90% of owned store NOI comes from top-40 MSAs1 Portfolio Exposure Exposure to secondary and tertiary markets
Slide 9: Industry-Leading Demographics Generate Long-Term Value
Industry-Leading Demographics Generate Long-Term Value Quality market focus creates a strong demand backdrop and cash flow stability 1. Source: Evercore ISI Research Report dated March 20, 2024 2. Total owned portfolio NOI for the three months ended March 31, 2024, market ranking by population per U
Slide 10: Market Leader in New York City
Market Leader in New York City Lowest Supplied Market Supply across the three key outer boroughs is 2.6 SF per capita1, the lowest nationally and less than half the national average of 6.3 SF per capita2. Supply pipeline is waning due to recent legislative changes removing self-storage eligibility f
Slide 11: Quality Platform
Quality Platform Sophisticated, fully integrated platform focused on providing flexible and efficient service delivery to maximize property cash flows over the long term Quality Company Continued focus on corporate responsibility and risk management to ensure sustainable long-term growth Quality Bal
Slide 12: Operating Platform
Operating Platform Foundation of proprietary solutions creates flexibility for the future Technological Platform Invest in foundational systems to provide scalability Customer Capture Attract the greatest share of demand across all channels through sophisticated strategies Dynamic Pricing Maximize r
Slide 13: The Customer Journey
The Customer Journey Reservation Rental Existing Customer Optimizing the Platform Paid Search Bid on ~2+ million keywords Brand Marketing Further build brand awareness, making CUBE an operator of choice Social Media Innovative tactics to reach prospective customers Website Interact with 32 million v
Slide 14: Redefining the Customer Experience
Redefining the Customer Experience Meeting the changing needs of our customers Leveraging Digital Platforms Replicate the in-person experience across all customer touch points Omni-Channel Experience A fully-integrated experience where customers can seamlessly transition between various channels & p
Slide 15: External Growth Strategy
External Growth Strategy Enhancing our portfolio through strategic external growth opportunities High-Quality Acquisitions Target acquisitions of well positioned, quality assets in markets with strong demographics and demand trends Development & Lease-Up Build and acquire purpose-built properties in
Slide 16: Robust Portfolio Growth
0 200 400 600 800 1000 1200 1400 1600 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Wholly-Owned Joint Venture Managed Robust Portfolio Growth Strategically increase the scale of the platform Multi-Faceted Growth Strategy Continue to utilize wide variety of avenues to gr
Slide 17: Acquisitions
Acquisitions Disciplined investment strategy to prudently build our portfolio 83% of acquisitions in top 25 MSAs1 $1.6B of acquisitions from third-party management1 Strong Demographics Focus on submarkets with attractive demographics for strong long-term demand characteristics Complement Existing Po
Slide 18: Development
Development Strategic partnerships drive additional long-term value to our shareholders Partner with Local Developers Partner with developers that have local market expertise and can source high-quality sites Focus on Top Markets Targeted projects in high-quality markets that generate attractive lon
Slide 19: Joint Venture Advantages
Joint Venture Advantages Strategic investment with joint venture partners adds value to our portfolio 4 different ventures1 75 total properties1 Strong Returns Fee revenue and promoted interests increase our return profile for transactions Diversification Further diversifying cash flow and exposure
Slide 20: Third-Party Management
Third-Party Management Mutually beneficial relationships drive additional long-term value to our shareholders 860 properties1 235+ partnerships1 $37M management fee income2 Profitability Create additional revenue streams for our shareholders through management and other fees Scale Continue expanding
Slide 21: Financial Strength
Financial Strength Ensuring stability while funding growth Continue to operate with credit metrics at the conservative end of our investment grade rating, ensuring access to a variety of attractively-priced capital Net Debt to EBITDA1: 4.1x EBITDA Coverage1,2: 7.8x Debt to Gross Assets1: 38.2% 1. So
Slide 22: Liquidity and Access to Capital
Liquidity and Access to Capital Access to the full range of capital sources to fund commitments Capital Needs & Liquidity Ample liquidity to manage near-term capital needs Capital Needs: $69.7M through 20241 • $38.5M of remaining development commitments • $31.2M of debt maturities Existing Sources o
Slide 23: Experienced Management
Experienced Management Lengthy track record of experience through all phases of the cycle Platform | Portfolio | Balance Sheet | Company 1. Represents averages for CubeSmart Senior Management 19 years in self storage 14 years with CubeSmart 18 years at publicly-traded REITs Senior Management1 23
Slide 24: Efficient Expense Management
Efficient Expense Management Sector-leading expense control against a high inflationary backdrop Platform | Portfolio | Balance Sheet | Company 24 1.5% 2.3% 2.9% 5.2% 6.0% 3.9% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 2023 Two-Year Expense Growth Three-Year Expense Growth Average Same-Store Expense G
Slide 25: Funds From Operations Growth
$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 FFO, as adjusted per share Funds From Operations Growth Long-term growth in portfolio cash flows +195% Platform | Portfolio | Balance Sheet | Company 25
Slide 26: Sharing Cash Flow Growth
$- $0.50 $1.00 $1.50 $2.00 $2.50 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Annual Dividend per Share Sharing Cash Flow Growth Consistent history of dividend increases to return capital to investors +330% Platform | Portfolio | Balance Sheet | Company 26
Slide 27: Long-Term Value Creation
Long-Term Value Creation Generating outperformance over the long term Platform | Portfolio | Balance Sheet | Company 27 1. Market cap weighted total shareholder return for PSA and EXR as of December 31, 2023 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% 12/31/2013 12/31/2014 12/31/2015 12/31/2016 1
Slide 28: Environmental Highlights
Environmental Highlights Minimizing our environmental impact for long-term sustainability Environmental Targets Established targets to reduce consumption and greenhouse gas emissions. Through 2022, we made significant progress against these targets with a 22.6% like-for-like reduction in Scope 1 & 2
Slide 29: Social Highlights
Social Highlights Investing in our team and communities Engagement & Development We value our teammates’ engagement. In 2023, our annual Teammate Engagement Survey had an 92% response rate. Our goal is to help our teammates grow with our company. Last year 350 teammates were promoted into new roles.
Slide 30: Strong Corporate Governance
Strong Corporate Governance Supporting the long-term interest of all shareholders Shareholder Rights Annual election of Trustees Annual say-on-pay votes Single voting class of stock Shareholder right to call special meeting Highest governance rating among our peers (per ISS) Board Practice
Slide 31: Operational Performance
Operational Performance Strong fundamentals provide strong outlook for future growth 88.0% 90.0% 92.0% 94.0% 96.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Same-Store Occupancy1 2022 2023 2024 0 5,000 10,000 15,000 20,000 25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Same-Store Renta