Cubesmart · NYSE:CUBE
Cubesmart — Merger or Acquisition (October 2020)
22 slides from Cubesmart's merger presentation, October 2020
Slide 1: Storage Deluxe Portfolio Acquisition
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: Transaction Summary
• On October 21st, we entered into an agreement to purchase an eight- Transaction property portfolio in the New York City Boroughs for $540 million Summary • Transaction is subject to typical due-diligence and loan assumptions, with the projected closing in the fourth quarter of 2020 • 5 properties
Slide 4: Opportunity to build on leading market position in the outer boroughs
This transaction is an opportunity to further build on our leading market position in the three primary outer- boroughs of New York City. It allows us to increase our market presence in Queens up to par with Brooklyn and the Bronx, cementing our brand leadership across those three boroughs. Grow the
Slide 5: Culmination of a ten-year plan in the best self-storage market
This transaction is the culmination of a ten-year plan that created the market- leading portfolio in the country’s best self-storage market • One NYC borough property in the legacy portfolio (Queens) • Established a relationship with Storage Deluxe through the acquisition of a two- property portfoli
Slide 6: Highest quality portfolio of stores in New York City
Over the last 10 years, we have assembled the highest quality portfolio of stores in New York City, providing both breadth of coverage across all five boroughs and depth within key submarkets Properties Pre- Transaction Transaction Total Brooklyn 13 2 15 Bronx 13 1 14 Queens 9 5 14 Manhattan 1 - 1 S
Slide 7: Target assets in more affluent submarkets with higher incomes
The target assets are in more affluent submarkets within the boroughs where higher incomes support market-leading rental rates ▪ The target portfolio has median household incomes that are 45% above our existing portfolio in the NYC boroughs ▪ In-place rates for the portfolio average 6.5% above our e
Slide 8: Transaction enhances market-leading position in New York City
▪ This transaction will further enhance our market-leading position in New York City. ▪ Our portfolio in the New York MSA is well diversified across seven distinct markets. Each of these distinct markets have unique demographic trends and economic drivers that are supportive of strong self-storage d
Slide 9: Each borough has a standalone economy with low levels of supply
Each borough has a standalone economy with large populations and low levels of supply which support significantly higher rental rates than similarly-sized markets New York City Boroughs Compared to Similarly-Sized MSAs Rank MSA Population1 SF per Capita2 Realized RPSF3 New York-Northern NJ-Long Isla
Slide 10: Outer-boroughs are fundamentally different than Manhattan
The outer-boroughs are fundamentally different than Manhattan and each of them has a robust local economy influenced by a unique set of drivers ▪ Employers in the outer- boroughs are more blue- collar industries compared to the white-collar focus of Manhattan ▪ Education, health, and government serv
Slide 11: New York City compares favorably to MSAs with lowest SF per capita
New York City compares extremely favorably to the top 12 MSAs with the lowest SF per capita of any major market ▪ Supply per capita in all three boroughs is less than half the national average as overall supply remains low despite deliveries from the recent development cycle ▪ The supply outlook in
Slide 12: Performance in the boroughs steady throughout development cycle
Performance in the New York City boroughs has remained steady throughout this development cycle ▪ Over the last three years, our same-store portfolio in New York City has continued to post positive revenue growth while competing with the recent inflow of new supply ▪ We expect that changes to the IC
Slide 13: Performance in the boroughs accelerated with increased demand
Performance in the boroughs has accelerated with significant increases in demand muting the impact of new supply ▪ Storage fundamentals in New York City have proven resilient through the pandemic, with strong demand trends helping to grow occupancy through the third quarter ▪ High levels of demand h
Slide 14: Brooklyn is a vibrant market with highest population and density
Brooklyn is a vibrant market with the highest population and density of the outer-boroughs, supported by a strong economic backdrop CUBE Market Share (post-transaction) # of Customers1 Square Feet Market Share2 17,275 1.05M 16.8% Demographics3 Population Density Renter % 2,559,903 36,147 per sq. mi
Slide 15: Gowanus neighborhood transition expected to accelerate
The Gowanus neighborhood has seen a significant transition which is expected to accelerate with a new retail corridor and over 8,000 new apartments set to be added by 2035 through the current development plan1 Net Rentable SF 70,225 Net Rentable SF 77,696 Current Physical Occupancy2 94.1% Current Ph
Slide 16: Queens has highest household incomes and lowest supply
The largest of the boroughs, Queens has the highest household incomes and the lowest levels of supply CUBE Market Share (post-transaction) # of Customers1 Square Feet Market Share2 18,752 1.18M 24.8% Demographics3 Population Density Renter % 2,253,858 20,767 per sq. mi. 55.4% Market Supply2 Square F
Slide 17: Long Island City saw incredible growth following 2001 rezoning
Long Island City saw incredible growth following a 2001 rezoning program, adding thousands of new apartments. That growth continues to this day, with hundreds of new units still under development.1 Net Rentable SF 66,269 Net Rentable SF 81,630 Current Physical Occupancy2 96.0% Current Physical Occup
Slide 18: Long Island City saw incredible growth following 2001 rezoning
Long Island City saw incredible growth following a 2001 rezoning program, adding thousands of new apartments. That growth continues to this day, with hundreds of new units still under development.1 Net Rentable SF 68,055 Current Physical Occupancy1 96.4% In-Place Rate per Occupied SF1 $42.98 1. Sour
Slide 19: Flushing/College Point is a vibrant submarket
Flushing/College Point is a vibrant submarket, with strong growth in private sector employment helping attract further development1 Net Rentable SF 166,269 Net Rentable SF 140,312 Current Physical Occupancy2 92.9% Current Physical Occupancy2 66.7% In-Place Rate per Occupied SF2 $38.66 In-Place Rate
Slide 20: Dense, mostly renter population in the Bronx supports demand
A dense population comprised mostly of renters in the Bronx supports strong demand trends CUBE Market Share (post-transaction) # of Customers1 Square Feet Market Share2 21,652 1.3M 28.4% Demographics3 Population Density Renter % 1,418,207 33,687 per mi2 80.4% Market Supply2 Square Feet Sq. Feet per
Slide 21: Riverdale is an affluent submarket
Riverdale is an affluent submarket, with median household incomes and multifamily rents well above the average for the Bronx1 Net Rentable SF 109,970 Current Physical Occupancy2 91.3% In-Place Rate per Occupied SF2 $38.10 1. Source: 2018 American Community Survey 2. As of September 30, 2020
Slide 22: Solidifies strong market position and competitive advantage in the boroughs
Solidifies our strong market position and enhances our competitive advantage in the boroughs Expands our exposure to high-growth submarkets with strong demographics and attractive demand trends Opportunity to deploy a meaningful amount of capital to grow the Company in a way that is consistent with