Slide 1: Investor Presentation November 2014
Investor Presentation November 2014
Slide 2: Forward-looking statements
2 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 expectations will be ach
Slide 3: Self-storage REIT with expansive national platform
Ma lve r n , PA 3 Self-storage REIT with expansive national platform 1) Property count as of September 30, 2014. 2) Market value of common as of October 30, 2014. Book value of preferred equity and debt as of September 30, 2014. 3 9 0 5 6 2 1 7 2 Fa c i l i t i e s 1 Ow n e d Ma n a g e d He a d q u
Slide 4: Attractive industry with favorable economic characteristics
Positive Trends Fragmented Ownership Strong Cash Flow Broadening Demand Profile 4 Broad tenant diversification Demand driven by mobility, life change Opportunity for consolidation Unsophisticated competition High operating margins Low cap-ex requirements Attractive industry with favorable economic c
Slide 5: A balanced and disciplined approach
5 A balanced and disciplined approach External Growth Financial Strength Internal Growth Maximize portfolio value through continued focus on customer service and operational advancement Continue to prudently build a portfolio of high-quality assets, with a focus on targeted markets Maintain BBB/Baa2
Slide 6: Executing on strategic objectives
6 Executing on strategic objectives Same-Store Results (YTD1): NOI3 +9.9% Revenue +7.4% Expenses +2.5% NOI Margin 68.2%(+160 bps) FFO/Share Growth4 +16.2% $570 million in 2014 acquisitions2 Amended agreement on $100 million term loan to improve pricing & extend term $193 million of investments under
Slide 7: Robust Performance Trends
Robust Performance Trends 1) Occupancy at period end. 2014 and 2013 data reflects that of the current same-store pool, as constituted on September 30, 2014. Occupancies in 2012 reflect those of the 2013 same-store pool, as constituted on December 31, 2013 and occupancies in 2011 reflect those of the
Slide 8: Improving Net Operating Income Margin
Improving Net Opearting Income Margin Higher occupancies & operational efficiencies drive margin growth 9 68 1 1) Net operating income margin for the nine months ended September 30, 2014. 2) Annual same-store net operating income margin except as noted above. 2014 and 2013 data reflects that of the
Slide 9: Performance Fueled by Innovation
Performance Fueled by Innovation 10 Enhancing the Customer experience at all points of engagement through proprietary systems and processes Reservation Attraction Rental Continued Engagement Sales Center Real -Tim e Re p o r t i n g Pa p e r l e ss L e a si n g I n -St o r e Ex p e r i e n c e In t
Slide 10: An Award-Winning Service Culture
An Award-Winning Service Culture 11 Redefining service in the self-storage industry
Slide 11: 2014 Outlook
2014 Outlook Continuation of operational strength Full-Year Guidance1 $1 .0 6 t o $1 .0 7 FFO2 per Share 9 .25% t o 9 .75% NOI Growth 7 .0% t o 7 .25% Revenue Growth 2 .25% t o 2 .75% Expense Growth Same-Store Guidance C omponents: Represents 17.0% annual growth at the midpoint Driven by rate and oc
Slide 12: External Growth Drivers
External Growth Drivers 13 External Growth Financial Strength Internal Growth Focus on quality properties in high-barrier-to-entry markets. Invest selectively in development and built-to-suit projects with experienced partners in targeted markets. Utilize third-party management program to leverage o
Slide 13: Significant evolution over past six years
14 Significant evolution over past six years Note: Bubbles sized by revenue. 1) Realized annual rent per occupied sq ft is computed by dividing rental income by the weighted occupied sq ft for the period. 2) Includes transactions closed or announced and under contract as of September 30, 2014. Total
Slide 14: Evolution has created a portfolio with strong demographic exposure
15 Evolution has created a portfolio with strong demographic exposure 3 -Mi l e P o p u l a t io n 3 -Mi l e Ho u s e h o ld s 3-Mile Ave r a g e Ho u s e h o ld In c om e s Source: ISI Group LLC Real Estate Research Report dated September 5, 2014.
Slide 15: Investment Activity Since 2008
A sitions1 16 Focus on adding scale in attractive, high-barrier-to-entry markets Investment Activity Since 2008 $1 .9 b i l l i o n 1 8 8 St o r e s 1) Transactions closed or announced and under contract from 2008 through September 30, 2014. Dispositions1 $4 2 2 m i l l i o n 1 3 9 St o r e s Acquis
Slide 16: Favorable supply levels across CUBE's targeted investment markets
Favorable supply levels across CUBE’s targeted investment markets 17 1) Source: 2014 Self-Storage Almanac, by MSA. National Average Rentable Square Footage per Person1 7.35
Slide 17: Opportunistic development in high-barrier-to-entry markets
Facility Acquisitions at C/O Expected Opening Contract Price Long Island City, NY Q4 2014 38,000 $ Dallas, TX Q2 2015 15,800 Brooklyn, NY Q4 2015 48,500 Fort Worth, TX Q4 2015 10,100 Grapevine, TX Q4 2015 10,800 Total 123,200 $ New JV Development Facilities Expected Opening CUBE's Investment to-date
Slide 18: Financial Strength: investment grade ratings
19 External Growth Financial Strength Internal Growth Baa2 rating from Moody’s with a stable outlook. BBB rating from S&P with a stable outlook. Acquisitions will be funded in a manner consistent with our objective of maintaining a BBB/Baa2 investment grade rating.
Slide 19: Objective of funding growth in manner that maintains credit metrics
20 Objective of funding growth in manner that maintains credit metrics Investment Grade Rating As of September 30, 2014 Conservative Metrics 37% Debt / Gross Assets 40% Debt + Preferred / Gross Assets 5 .3 x Debt / EBITDA1 5 .6 x Debt + Preferred / EBITDA1 7 .2% Secured Debt / Gross Assets As of Sep
Slide 20: Capital structure affords access to full spectrum of capital sources
21 Free Cash Flow Private Public Equity Debt OP Units Free Cash Flow Strategic Dispositions Joint Venture Investment Unsecured Bank Financing Private Placement of Unsecured Debt CMBS / Secured Debt Follow-on Common Equity Offering At-The-Market Equity Program Preferred Equity Public Unsecured Debt C
Slide 21: Summary of investment case
Limited new supply, a widening competitive divide between large and small operators, and continuing industry consolidation Robust organic growth fueled by a focus on customer service and continued enhancement of operational infrastructure Meaningful external growth through a disciplined investment p
Slide 22: Investor Relations Contact
Date Investor Relations Contact Charles Place Director, Investor Relations 5 Old Lancaster Rd. Malvern, PA 19355 610.535.5700 cplace@cubesmart.com Date Investor Relations Contact Charles Place Director, Investor Relations 5 Old Lancaster Rd. Malvern, PA 19355 610.535.5700 cplace@cubesmart.com