Cubesmart · NYSE:CUBE
Cubesmart — U-Store-It Trust — Corporate Update (January 2010)
12 slides from Cubesmart's corporate update, Jan 20, 2010
Slide 1: 2009 Capital-Raising Review
2009 Capital-Raising Review January 20, 2010
Slide 2: Forward Looking Statements
2 Forward Looking Statements 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 i
Slide 3: Capital-Raising Initiatives: 2009 Activity
3 Capital-Raising Initiatives: 2009 Activity o Capital raising efforts in 2009 combined to raise over $875 million to address maturities, reduce leverage, and position the company for future growth o Net debt to gross assets improved from approximately 51% as of December 31, 2008 to approximately 36
Slide 4: New $450 Million Secured Credit Facility
4 New $450 Million Secured Credit Facility • Senior secured credit facility $200 million secured term loan $250 million secured revolving credit facility • Three-year term • Secured by mortgages on borrowing base properties • Use of proceeds: Replace existing unsecured credit facility General corpor
Slide 5: Asset Level Loans / Regional Banks
5 Asset Level Loans / Regional Banks • Our focused effort generated $116.1 million of asset level loans from regional banks and life companies • Loans were from 17 different lenders and encumbered 45 properties • Average terms: 64% loan-to-value 7.01% interest rate 7.73% effective rate (including am
Slide 6: 2009 Ended with an Improved Debt Maturity Profile
6 2009 Ended with an Improved Debt Maturity Profile DEBT OVERVIEW (as of December 31, 2009) (unaudited, in thousands) Unsecured and Secured Debt Weighted Floating and Fixed Weighted Average Average Maturity Maturity Debt Amount Rate(1) (in years) Debt Amount Rate(1) (in years) Unsecured - $ - - Floa
Slide 7: Outstanding Loans as of December 31, 2009
7 Outstanding Loans as of December 31, 2009 As of December 31, 2009 (in thousands) Maturity Maturity Balance Rate Date Balance Rate Date FIXED RATE MORTGAGES FIXED RATE DEBT PREMIUMS YSI 1 83,339 FIXED 5.19% May-10 Fixed Rate Debt Premiums 231 YSI 4 6,065 FIXED 8.63% Jul-10 YSI 26 9,475 FIXED 6.15%
Slide 8: Pro Forma Interest Expense
8 Pro Forma Interest Expense March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, 2009 2009 2009 2009 2010 2010 2010 2010 Interest: Interest expense on loans 11,353 $ 11,473 $ 12,008 $ 10,435 $ 10,878 $ 10,250 $ 9,829 $ 9,540 $ Loan procurement amortization exp
Slide 9: Joint Venture
9 Joint Venture • Closed on a $102 million joint venture with an affiliate of Heitman, LLC in August 2009 • Proceeds to the Company of $51 million for a 50% interest in the unleveraged joint venture • U-Store-It Contributed 22 wholly-owned properties located in eight states The Company’s interest in
Slide 10: Property Dispositions
10 Property Dispositions • Closed on the disposition of 19 properties totaling 1.2 million square feet during 2009 • The properties had an aggregate sale price of $88.9 million and gains on the sales totaled approximately $14.1 million • Cap rates for the sold properties averaged 8.26% on trailing 1
Slide 11: Common Share Offering
11 Common Share Offering Offering Highlights • Offering Structure: One-Day Marketed • $5.25 offer price was a 9% discount to announcement price, well below the 14% average for other recent one-day marketed REIT transactions. • Demand was 4x oversubscribed and offering was upsized from original 22.0
Slide 12: Capital Sources / Debt Maturities
12 Capital Sources / Debt Maturities ($ in thousands) Capital Sources Maturities through December 2012 (1) Cash balance as of 12/31/09 (unaudited) 102,400 $ Secured maturity - YSI 1 in May 2010 83,339 $ Available capacity under revolving line of credit 250,000 Secured maturity - YSI 4 in July 2010 6