Slide 1: Investor Presentation September 2012
Investor Presentation September 2012 p
Slide 2: Safe Harbor Statement
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 expe
Slide 3: Platform Company Overview: A National Self-storage REIT
Platform Company Overview: A National Self-storage REIT with 520 facilities1 across the United States 378 owned facilities; 142 facilities managed on behalf of third-party owners An additional ~850 partner facilities2 in the CubeSmart Network Market Capitalization: Equity3 $1,565 MM Debt4 995 MM Tot
Slide 4: The CubeSmart Story
The CubeSmart Story Conservative Attractive Industry Quality Portfolio Balance Sheet With Advantages for A Strong Platform Driving Internal Growth Supporting External Growth That Moves the Needle 4
Slide 5: Attractive Industry Characteristics
Attractive Industry Characteristics Demand is driven by mobility, which benefits in both economic expansions and contractions, making storage recession resistant Diverse customer base with negligible exposure to any one tenant Stability & Resilience Low maintenance cap-ex requirements Absence of ten
Slide 6: Resilient Operating Performance
Operating Resilient Performance 8.0% 10.0% CUBE Same-Store NOI Growth, Rolling Four Quarters (Rolling Four-Quarter Average of Reported Year-over-Year Growth) Same-Store Revenue Growth, 2-Yr Avg2: 1 2.0% 4.0% 6.0% Same-Store NOI (4 0%) (2.0%) 0.0% Resilient Growth, 2-Yr Avg2: (10.0%) (8.0%) (6.0%) Pe
Slide 7: Home Ownership Trends Support Growth
Ownership Growth Home Trends Support Continue to benefit from same secular forces that are driving Declining US Homeownership Fewer Owners = More Renters 1 performance in the multifamily space 69.0% 70.0% Renters move roughly three times frequently than 64.0% 65.0% 66.0% 67.0% 68.0% more homeowners
Slide 8: Supporting Results: Extended Length of Stay
Supporting Results Extended Length of Stay 8.0 Median Length of Stay1 6.0 7.0 +25% Widening lengths of stay offset soft rental 3.0 4.0 5.0 Months activity during the recession and continue to support performance 1.0 2.0 0.0 2008 2011 2 2 8 1) CubeSmart same-store portfolio. 2) Median length of stay
Slide 9: Limited New Supply to Absorb Demand
Limited New Supply to Absorb Demand New self-storage construction starts are currently at just over one third of 2006 levels1,2.90 New Construction (Nationwide, As Reported by SSDS1) During the past four quarters3, only three new 60 70 80 competing facilities have opened in CubeSmart submarkets nati
Slide 10: Share Taking: Market Occupancy Gains
Share Taking Market Occupancy Gains1 8.0% 10.0% Cumulative Since December 31, 2009 4.0% 6.0% % Change Cumulative Performance Gap Since 2009: (2.0%) 0.0% 2.0% Cumulative Basis Points (6.0%) (4.0%) 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 CubeSmart Industry 2 3 10 1) Calculated by compou
Slide 11: Robust Occupancy Growth for CUBE
Robust Growth for CUBE Occupancy 500 90.0% Occupancy Performance Same-Store Pool1 83.6% 85.0% 300 400 85.0% 87.5% (basis points) Year-over-Year Occupancy Gap at July 31, 80.0% 81.1% 78.9% 200 80.0% 82.5% Year-Over-Year Gap Period End occupancy 2012: Basis Points 77.0% 0 100 75.0% 77.5% 1Q12 2Q12 Jul
Slide 12: Benefits of Scale and Sophistication
Benefits Scale and Sophistication of People Internal Resources Processes Systems Enhanced Marketing & Customer Quality Team Sales Services Internet Presence Capture Center Store Managers Strategic Partnerships Relationships Leveraging these resources provides a significant competitive advantage othe
Slide 13: Technology: A Paradigm Shift for Storage
Shift for Storage Need Help From Charmaine to Fill/Color Boxes – will make slide appear less busy. Technology: A Paradigm The Need to Stay Relevant The Power to Act on Information Evolution Point-of- Sale Point-of- Sale Point-of- Sale Point-of- Sale Evolution Yellow Pages Internet Mobile Stand-Alone
Slide 14: CubeSmart's Differentiated Service Platform
CubeSmart’s Differentiated Service Platform Logistics – Helping customers get their items into and out of their space Amenities – Providing a more comfortable and accommodating environment Customization – A la carte options for customers to customize the space they rent Space – Core self-storage off
Slide 15: The CubeSmart Story
The CubeSmart Story Conservative Attractive Industry Quality Portfolio Balance Sheet With Advantages for A Strong Platform Driving Internal Growth Supporting External Growth That Moves the Needle 15
Slide 16: Substantial Recent Repositioning
Has Been Substantial Recent Repositioning. Redeploying disposition proceeds from low-growth, tertiary markets into $35.00 Storage Deluxe: superior assets competitively positioned in attractive “core” markets. $560MM 2 3 $25.00 $30.00 Per Occ Sq Ft Acquisitions Since 2008: 1 $270 MM $10 00 $15.00 $20
Slide 17: A Portfolio Markedly Improved
A Portfolio Markedly Improved. High rents and population density are indicative of current portfolio Realized Annual Rent per Occ Sq 3-Mile 2010 Population 1 quality and opportunity to drive pricing and demand in the future. $13.00 250,000 Ft (Weighted by Revenue) $11.00 $12.00 150,000 200,000 $10.0
Slide 18: Operating Metrics Improved
Metrics Improved Operating Scheduled Annual Rent2 Second Realized Annual Rent2 Second Quarter $11.98 $13.20 $15.00 $20.00 $25.00 Quarter 2012 $12.41 $0.00 $5.00 $10.00 $11.33 $0.00 $5.00 $10.00 Same-Store Portfolio Total Portfolio1 1Q12 2Q12 1Q122 2Q12 Same-Store Total Portfolio Same-Store Total Por
Slide 19: Greater Exposure to High-Growth Markets
Greater Exposure to High-Growth Markets High-Current Total Portfolio January 2008 Portfolio. Roughly 60% of 1 Major Texas Core Market Exposure, by NOI New York/ NJ g y portfolio NOI is generated from “core” markets – up from 41% i l 2008 j Markets New York/ Northern NJ Chicago Northern Major Texas M
Slide 20: Continued Enhancement: Recent Investment Activity
Continued Enhancement Recent Activity – 2011 Investment Activity Acquisitions: $714 million1. $154 million excluding the Storage Deluxe portfolio. Focused on quality assets in high-rent, high-barrier-to-entry markets including York City Houston Atlanta – New City, Houston, Atlanta, Miami, and Washin
Slide 21: Transformational Storage Deluxe Transaction
Transformational Storage Deluxe Transaction $560 million transaction 22 assets representing 1.6 million net rentable square feet, predominantly in the Greater New York City area Establishes CubeSmart as the largest owner of self-storage – one of the storage assets in New York City most attractive ma
Slide 22: Opportunity for Meaningful External Growth
Opportunity for Meaningful Growth External Industry Fragmentation Runway for Consolidation in Both Ownership Public Owners, & Operations Acquisitions 1 ~10% 3rd Party Mgmt Private Catalysts Significant levels of debt maturities in coming years on privately held storage assets Owners, ~90% Operationa
Slide 23: Relationships Create Opportunity
Relationships Create Opportunity Source of 2011 and 20121 Acquisitions, By Transaction Value Deluxe2,3 Deluxe3 Brokered Direct - Other 22% Brokered, 7% Direct - 3rd Including Storage Deluxe Excluding Storage Deluxe Brokered, 29% Other, Party Mgmt, 13% Direct - 3rd Party Mgmt, 49% Direct - Other, 80%
Slide 24: The CubeSmart Story
The CubeSmart Story Conservative Attractive Industry Quality Portfolio Balance Sheet With Advantages for A Strong Platform Driving Internal Growth Supporting External Growth That Moves the Needle 24
Slide 25: Commitment to Conservative Capital Structure
Commitment to Conservative Capital Structure Consistently-articulated unsecured balance sheet CubeSmart Capital Structure strategy. Affords flexibility to actively manage asset portfolio Diversity of portfolio and relatively small individual property Unsecured Debt Secured 10% 80% 100% values not co
Slide 26: Significant Balance Sheet Evolution
Significant Balance Sheet Evolution Emphasis on limiting risk and maximizing financial flexibility with a balanced maturity profile $600 December 31, 2008 June 30, 2012 $600 $200 $300 $400 $500 ($million) $200 $300 $400 $500 Maturities ($million)Weighted Average Maturity: 2.5 years Weighted Average
Slide 27: Investment Grade Balance Sheet
Investment Grade Balance Sheet. Continued focus on maintaining and improving metrics NOI from Unencumbered Assets1 Debt / Gross Assets Rating NOI from Unencumbered Assets1 Debt / Gross Assets Rating Encumbered Unencumbered 49% 12/31/08 51% Unrated Encumbered 51% Unencumbered 49% 12/31/08 51% Unrated
Slide 28: Full Spectrum of Capital Sources to Support Growth
Full Spectrum of Capital Sources to Support Growth. Access to the full spectrum of potential capital sources provides optimal Private Public. Units. Follow Common flexibility to support the Company’s external growth Private Public Equity OP. Free Cash Flow. Strategic Dispositions. Joint Venture Inve
Slide 29: The CubeSmart Story
The CubeSmart Story Conservative Attractive Industry Quality Portfolio Balance Sheet With Advantages for A Strong Platform Driving Internal Growth Supporting External Growth That Moves the Needle 29
Slide 30: Investor Relations Contact
Relations Contact Investor Daniel Ruble, CFA Vice President, Finance 460 E. Swedesford Rd. Suite 3000 Wayne, PA 19087 610.293.5700 druble@cubesmart.com