Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (January 2012)
24 slides from Cubesmart's investor presentation, Jan 18, 2012
Slide 1: Investor Presentation January 2012
Investor Presentation January 2012
Slide 2: 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 expectations will be achie
Slide 3: Company Overview: A National Platform
3 Company Overview: A National Platform Owned Managed Self storage REIT with 473 facilities across the United States 370 owned facilities; 103 facilities managed on behalf of 3rd party owners An additional 860 partner facilities in the CubeSmart Network CubeSmart Network facilities not shown. 1
Slide 4: The CubeSmart Story: Attractive Industry
4 The CubeSmart Story Attractive Industry Quality Portfolio Conservative Balance Sheet
Slide 5: Attractive Industry Characteristics
1 in 10 US households use self storage, up from 1 in 17 in 1995 Widely fragmented industry provides runway for consolidators Low variable cost level (operating leverage) fuels NOI growth Low maintenance cap-ex requirements Absence of tenant improvement requirements High operating margins Demand is d
Slide 6: Home Ownership Trends Support Growth
6 Home Ownership Trends Support Growth Declining US Homeownership US homeownership rate. Source: US Census Bureau Housing Vacancy Survey, 3Q11. Renters move roughly three times more frequently than homeowners Fewer Owners = More Renters More Mobility Movers represent more than ½ of self storage cust
Slide 7: Extended Length of Stay Supporting Results
7 Extended Length of Stay Supporting Results Median Length of Stay +25% Widening lengths of stay offset soft rental activity during the recession and continue to support performance 1 CubeSmart same-store portfolio.
Slide 8: Limited New Supply to Absorb Demand
8 Limited New Supply to Absorb Demand New Self Storage Construction Starts - Nationwide -72% Source: Cushman & Wakefield, Inc., Self Storage Performance Quarterly, 3Q11. 1
Slide 9: REITs Taking Market Share
9 REITs Taking Market Share Year-Over-Year Occupancy Gains Source: Cushman & Wakefield, Inc., Self Storage Performance Quarterly. Source: CUBE, SSS, PSA, and EXR public filings. Average of year-over-year change in reported period-ending occupancy. 400 basis point average performance gap over past fo
Slide 10: Benefits of Scale and Sophistication
10 Benefits of Scale and Sophistication Strategic Partnerships Enhanced Services Marketing & Internet Presence People Internal Resources Processes Customer Capture Relationships Quality Team Sales Center Store Managers Systems Leveraging these resources provides a significant competitive advantage o
Slide 11: CubeSmart's Differentiated Service Platform
11 CubeSmart’s Differentiated Service Platform Organization – Offering resources that help customers track & organize their things Logistics – Helping customers get their items into and out of their space Amenities – Providing a more comfortable and accommodating environment Customization – A la car
Slide 12: The CubeSmart Story: Quality Portfolio
12 The CubeSmart Story Attractive Industry Quality Portfolio Conservative Balance Sheet
Slide 13: Continued Capital Recycling Efforts
13 Continued Capital Recycling Efforts All closed transactions, including both stabilized and lease-up properties. Includes the second pool of the portfolio, which is expected to close in 1Q12. 2012 projections are used for metric calculations. Realized annual rent per occupied square foot is comput
Slide 14: Portfolio Characterized by Strong Metrics
Realized annual rent per occupied square foot is computed by dividing rental income by the weighted occupied sq ft for the period. Current portfolio includes the second pool of the Storage Deluxe portfolio, which is expected to close in 1Q12. 2012 projections are used for acquired Storage Deluxe ass
Slide 15: Recent Acquisitions – High Quality
15 Recent Acquisitions – High Quality $127 million closed in 2011, excluding Storage Deluxe Focused on quality assets in high-rent, high-barrier-to-entry markets – including New York City, Houston, Atlanta, Miami, and Washington, DC. $560 million Storage Deluxe portfolio Establishes CubeSmart as the
Slide 16: Significant Exposure to Attractive Markets
Pro Forma including the second pool of the Storage Deluxe portfolio, which is expected to close in 1Q12. 2012 projections are used for acquired Storage Deluxe NOI. 16 Significant Exposure to Attractive Markets Current Geographic Exposure (by NOI) Roughly 60% of portfolio NOI is generated from “core”
Slide 17: The CubeSmart Story: Conservative Balance Sheet
17 The CubeSmart Story Attractive Industry Quality Portfolio Conservative Balance Sheet
Slide 18: Investment Grade Balance Sheet
BBB- Significant balance sheet evolution over past 3 years 18 Investment Grade Balance Sheet NOI from Unencumbered Assets Current 12/31/08 Debt / Gross Assets Rating 51% 40% Unrated Pro Forma. Assumes closing of the second pool of Storage Deluxe assets and includes the full balances of the term loan
Slide 19: Balanced Maturity Profile
19 Balanced Maturity Profile December 31, 2008 Current (Pro Forma) Less than 22% maturing in any given year Assumes closing of the second pool of Storage Deluxe assets and includes the full balances of the term loans maturing in December 2014 and March 2017, as well as the assumption of $88.2 millio
Slide 20: Host of Capital Sources to Support Growth
20 Host of Capital Sources to Support Growth Common Equity Preferred Equity Public Unsecured Debt Unsecured Bank Financing Joint Ventures Free Cash Flow Successfully sourced more than $1 billion of capital to support opportunistic growth in 2011. Strategic Dispositions CMBS / Secured Debt Private Pl
Slide 21: Opportunity for Meaningful External Growth
21 Opportunity for Meaningful External Growth Industry Fragmentation Runway for Consolidation in Both Ownership & Operations Acquisitions 3rd Party Mgmt Catalysts Significant levels of debt maturities from 2012 to 2014 on privately held storage assets. Operational advantages for large-scale platform
Slide 22: Relationships Create Opportunity
22 Relationships Create Opportunity Source of 2011 Acquisitions, By Transaction Value 1) Including Storage Deluxe1 Excluding Storage Deluxe2 Includes second pool of Storage Deluxe assets, which are expected to close 1Q12. 2) Closed transactions. Nearly 2/3 of transaction value sourced through direct
Slide 23: The CubeSmart Story
23 The CubeSmart Story Attractive Industry Quality Portfolio Conservative Balance Sheet
Slide 24: Investor Relations Contact
Investor Relations Contact Daniel Ruble, CFA Vice President, Finance 460 E. Swedesford Rd. Suite 3000 Wayne, PA 19087 610.293.5700 druble@cubesmart.com