Slide 1: Investor Presentation May 2015
Date Investor Presentation May 2015
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 forwardlooking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achi
Slide 3: Self-storage REIT with expansive national platform
Self-storage REIT with expansive national platform 3 428 609 181 Facilities1 Owned Managed Miami 19 Other FL 54 Atlanta 16 Major TX 48 Chicago 37 Ohio 20 Balt/DC 23 Philadelphia 15 NY 49 CT 21 Boston 5 Tenn 6 AZ/LV 32 CO/UT 13 So. CA 12 Inland Empire 16 Other West 15 Other Midwest 10 Other Southeast
Slide 4: Innovative platforms, disciplined growth, and prudent funding generate significant shareholder value
4 Innovative platforms, disciplined growth, and prudent funding have combined to generate significant value for shareholders Cumulative Total Returns1 1) Returns through March 31, 2015. Self-Storage REITs represent a straight average of cumulative total returns for the four largest publicly traded s
Slide 5: Internal Growth, External Growth, Financial Strength
5 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 highquality assets, with a focus on targeted markets Finance growth by accessing the full array of capital
Slide 6: Internal Growth: Q1 2015 same-store results and guidance
6 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 investment grade balance sheet that
Slide 7: Customer engagement and marketing funnel
Reservation Attraction Rental Continued Engagement 7 Internet Marketing Revenue Management Customer Service Marketing Efforts Website Email Confirmation Customer Center Inventory Management Attractive Discount Attractive Offer In-Place Rate Increases Customer Referrals Sales Center Store Managers EN
Slide 8: Adjusting to evolving marketing ecosystems and engagement mediums
8 Adjusting to evolving marketing ecosystems and engagement mediums Time Sophistication Yellow Page advertising; engagement primarily via land-line phone and in-person Early online advertising; websites accessed via desktop computers and serve as digital flyers Website maturation; Internet ad spend
Slide 9: Optimizing marketing efforts through industry-leading analytics
9 Optimizing marketing efforts and efficiently attracting customers through use of industry-leading analytics
Slide 10: Supplementing internet marketing with a traditional platform
10 Supplementing internet marketing initiatives with a traditional platform to take advantage of market depth and to reach customers offline . Out-of-home placements in markets with high store concentration . Hyper-targeted direct mail campaigns in select markets . Selective local marketing efforts
Slide 11: Advanced data analytics to personalize customer experiences
11 Advanced data analytics to personalize experiences for each customer Custom Experience 1 Custom Experience 2 Custom Experience 3 . Continued focus on capturing and leveraging insights about customers to create customized experiences that increase engagement and conversion . Understanding the moti
Slide 12: Revenue Management Landscape
. Historically, advanced revenue management techniques have boosted revenue in a number of supply-constrained industries, beginning with airlines and then moving on to hotels . Multi-family represents the closest analogy, but the unpredictable lengths of stay for self storage customers adds addition
Slide 13: Pricing optimization requires a multi-dimensional demand landscape
Fundamental Pricing Issue Optimal Pricing . Substitutability .Competition .Timing / Other . Capacity / Economic Outcomes Pricing Decisions Pricing optimization requires consideration of a multi-dimensional demand landscape and dynamic capacity constraints 13
Slide 14: Long-Term Revenue Maximization Strategy
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 providing the most compelling offer to the c
Slide 15: Fulfilling our mission through unparalleled customer service
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 . Modern offices and operational train
Slide 16: An award-winning service culture
16 An award-winning service culture
Slide 17: External Growth: Investment Strategy
17 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 investment grade balance sheet tha
Slide 18: Acquisitions: adding scale in high-barrier-to-entry markets
Acquisitions1,2 18 Focus on adding scale in attractive, high-barrier-to-entry markets Investment Activity Since 2008 $2.0 billion 192 Stores 1) Transactions closed from 2008 through March 31, 2015 2) Includes investment in 35 properties through HHF Joint Venture Dispositions1 $422 million 139 Stores
Slide 19: Significant evolution over past seven years
19 Significant evolution over past seven 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 March 31, 2015. Total P
Slide 20: Development transactions
1Q14 Bronx, NY – $17.2M Malvern, PA - $25.1M 2Q15 Arlington, VA - $18.1M $157.9M 20 2Q16 Bronx, NY - $32.0M Development . Development transactions generate highest returns . Utilize partners for local market expertise 1Q16 Queens, NY - $32.1M Queens, NY - $19.0M 1) Dollar amounts represent 100% of e
Slide 21: Purchase at completion transactions
$123.2M 21 Purchase at Completion . These transactions allow us to acquire high-quality, purpose-built assets without taking on development risk . Our proven operational platform creates value by mitigating lease-up risk 4Q14 Long Island City, NY – $38M 2Q15 Dallas, TX – $15.8M 1Q16 Brooklyn, NY – $
Slide 22: Enhancing our portfolio by adding purpose-built Class A facilities
Enhancing our portfolio by adding purpose-built Class A facilities 22
Slide 23: Financial Strength: approach and 2015 activity
24 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 investment grade balance sheet tha
Slide 24: Funding growth consistent with a conservative balance sheet
25 Objective of funding growth in manner consistent with a conservative balance sheet Investment Grade Rating As of March 31, 2015 Conservative Metrics 35% Debt / Gross Assets 38% Debt + Preferred / Gross Assets 5.0x Debt / EBITDA1 5.4x Debt + Preferred / EBITDA1 5.9% Secured Debt / Gross Assets As
Slide 25: Conservative balance sheet management continues to improve credit metrics
Strong operating performance coupled with conservative balance sheet management continues to improve credit metrics Historical Leverage Levels1 EBITDA Coverage Ratio1 Gross Assets1 Dividends2 1) Source: Company Filings 2) Sources: SNL, Company Filings 3) Dividend payout ratio calculated as annual co
Slide 26: Investment summary
. Robust organic growth fueled by a focus on customer service, continued enhancement of 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 third party ma
Slide 27: Same-Store Performance
Same-Store Performance 1 2010 2011 2012 2013 2014 Revenue Growth 0.3% 3.6% 3.8% 7.4% 7.2% NOI Growth 1.0% 5.7% 6.0% 9.3% 9.6% YOY Occupancy Growth (BPS) 0.6% 2.0% 3.4% 5.3% 2.6% Annual Avg. Occupancy 76.8% 78.8% 82.6% 88.4% 90.8% External Growth # Acquired Properties 12 27 37 20 53 Acquisition Value
Slide 28: 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