Smartstop Self Storage Reit, Inc. · NYSE:SMA
Smartstop Self Storage Reit — Strategic Storage Trust II — Q3 2017 Earnings Presentation
22 slides from Smartstop Self Storage Reit's earnings presentation, Dec 14, 2017
Slide 1: Third Quarter Update
Third Quarter Update Strategic Storage Trust II, Inc. H. Michael Schwartz – Founder, Chairman & CEO Exhibit 99.1
Slide 2: Disclaimer & Risk Factors
Disclaimer & Risk Factors This investor presentation may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identi
Slide 3: Additional Information Regarding NOI, FFO & MFFO
Additional Information Regarding NOI, FFO & MFFO Funds from Operations (“FFO”) and Modified Funds from Operations (“MFFO”) Due to certain unique operating characteristics of real estate companies, the National Association of Real Estate Investment Trusts, or NAREIT, an industry trade group, has prom
Slide 4: Additional Information Regarding NOI, FFO & MFFO
Additional Information Regarding NOI, FFO & MFFO The purchase of properties, and the corresponding expenses associated with that process, is a key feature of SST II’s business plan in order to generate operational income and cash flow in order to make distributions to investors. While other start-up
Slide 5: Additional Information Regarding NOI, FFO & MFFO
Additional Information Regarding NOI, FFO & MFFO Acquisition fees and expenses include payments to SST II’s advisor and third parties. Acquisition related expenses under GAAP are considered operating expenses and as expenses included in the determination of net income (loss) and income (loss) from c
Slide 6: Strategic Storage Trust II, Inc.
Strategic Storage Trust II, Inc. Greater Than 75% Portfolio Occupancy Institutional Management Strong Market Demographics
Slide 7: Greater Than 75% Portfolio Occupancy
Strategic Storage Trust II, Inc. Greater Than 75% Portfolio Occupancy SmartStop® Self Storage – Pickering, Canada Targeting facilities with strong physical occupancy Potentially under occupied economically, increasing future cash flows Existing management unable to boost occupancy Management and mar
Slide 8: Institutional Management
Strategic Storage Trust II, Inc. Institutional Management Economies of scale Institutional marketing platform Expense efficiencies Institutional hiring, training, and management SmartStop® Self Storage – Pickering, Canada
Slide 9: Strong Market Demographics
Strategic Storage Trust II, Inc. Strong Market Demographics Concentrated in markets with growth and large surrounding populations and income Achieved a portfolio-wide average 3-mile population radius between 85,000 and 120,000 Average income metrics of approximately $65k - $80k / household, median i
Slide 10: Current Portfolio as of 9/30/2017
Current Portfolio as of 9/30/2017 $840M Portfolio* Since the launch of SST II in 2014, the REIT’s portfolio has expanded to 83 self storage properties in 14 states and Canada (Greater Toronto Area). The portfolio includes approximately 6,029,600 rentable square feet and approximately 51,330 storage
Slide 11: Balance Sheet
Balance Sheet Royal Palm Beach, Florida Loan-To-Value September 30, 2017 = 48%* *Based on acquisition cost Distributions(1) SST II pays a distribution rate of approximately $0.001644 per day per share (equivalent to $0.60 per share annually) to both Class A and Class T stockholders of record. The T
Slide 12: Financial Update Third Quarter 2017 vs. 2016
Financial Update Third Quarter 2017 vs. 2016 Revenues é 7.2% Net Operating Income* é 7.6% 2017 2016 Property Operating Expenses as a Percentage of Revenue 38.5% 38.7% Number of Facilities 62 62 Average Physical Occupancy 94.1% 93.4% Annualized Rent per Occupied SF $15.08 $14.15 Same-Store Performanc
Slide 13: Financial Update Nine Months Ended September 30, 2017 vs. 2016
Financial Update Nine Months Ended September 30, 2017 vs. 2016 Revenues é 12.7% Net Operating Income* é 24.3% 2017 2016 Property Operating Expenses as a Percentage of Revenue 37.5% 43.3% Number of Facilities 33 33 Average Physical Occupancy 93.8% 89.0% Annualized Rent per Occupied SF $13.52 $12.66 M
Slide 14: SmartStop Property Management
SmartStop Self Storage – Property Management
Slide 15: SmartStop Branding
SmartStop Self Storage – Branding Brand Awareness Strong, well-known brand name Brand protection Registered trademarks in U.S./Canada 125 U.S./Canadian domain names Processes in place to act upon potential brand infringement Store Branding Locations feature SmartStop signage and colors The SmartStop
Slide 16: SmartStop Website
SmartStop Self Storage – Website Website SmartStop.com State-of-the-art/responsive Multi-platform views Customer-intuitive user interface Full Integration Store operating system Reservation management system Call center Search engine optimization (SEO) Search engine marketing (SEM) / pay per click (
Slide 17: SmartStop Google Analytics
SmartStop Self Storage – Google Analytics [Drop in Call Center tracking screenshot] [Create call center statistics / anecdotes] Grew in house call center from 3 agents to 8 call center employees, with 7 day coverage
Slide 18: SmartStop Technology
SmartStop Self Storage – Technology Revenue Management System Asking rates are managed in-house Proprietary pricing analytics determine asking rate changes Algorithmic asking rate changes Over 15,000 (asking) rate changes YTD (Toronto) Over 5,000 (asking) rate changes 10/1/17 - current (U.S. stores)
Slide 19: SmartStop Call Center
SmartStop Self Storage – Call Center Total Calls For October 17,974 inbound calls 2,442 abandoned calls 1,238 rolled calls Answered Calls 14,294 calls Leads Total - 1,803 Reservations – 831 (46.0%) Rented - 665 (36.88%) Active - 307 (17.02%) Average Call Time 3:02 Average Queue Time 0:26
Slide 20: Toronto Portfolio
Toronto Portfolio Toronto Canada Properties 1 4548 Dufferin St., North York, ONT M3H5R9 2 530 Martin St., Milton, ONT L9T3H6 3 1207 Appleby Ln., Burlington, ONT L7L5H9 4 2055 Cornwall Rd., Oakville, ONT L6J7S2 5 480 S. Service Rd. W., Oakville, ONT L6K2H4 6 4491 Mainway Dr., Burlington, ONT L7L5H9 7
Slide 21: Public Non-Traded Self Storage REITs
NYSE: EXR NYSE: PSA NYSE: CUBE NYSE: LSI NYSE: UHAL NYSE: JCAP NYSE: NSA Public Non-Traded Self Storage REITs - OFFERING CLOSED - - OFFERING CLOSED - - OFFERING OPEN - Publicly Traded Self Storage Companies Self Storage Companies
Slide 22: Questions?
STRATEGIC STORAGE TRUST II, INC. Questions? is the sponsor of Strategic Storage Trust Il, Inc. Investor Presentation 22
Strategic Storage Trust II — Q3 2017 Earnings Presentation on 6ix