Cubesmart · NYSE:CUBE
Cubesmart — U-Store-It Trust — FBR Capital Markets Fall Investor Conference 2010
19 slides from Cubesmart's conference presentation, Nov 30, 2010
Slide 1: FBR Capital Markets Fall Investor Conference
FBR Capital Markets Fall Investor Conference November 30, 2010
Slide 2: Company Overview
(1) Source: 2010 Self-Storage Almanac. Source: Company filings. Company Overview U-Store-It is the third largest self-storage owner in the United States: Owns 375 facilities in 26 states and Washington DC with 204,312 self-storage units and 24.2 million rentable square feet. Manages 112 properties e
Slide 3: Company Highlights
Company Highlights Diversified Portfolio of High-Quality Assets YSI’s geographic and tenant diversity limits exposure to any single tenant or market. Experienced Management Team The top three executives, Dean Jernigan, Chris Marr, and Tim Martin have an average of approximately 21 years of real esta
Slide 4: Diversified Portfolio of High-Quality Assets
(1) Source: 2010 Self-Storage Almanac. (2) Based on net rentable square feet as of 6/30/10. Source: Company Filings. Diversified Portfolio of High-Quality Assets With 375 facilities in 26 states and Washington DC, no state accounts for more than 16.8% of total rentable square feet. U-Store-It’s faci
Slide 5: High-Quality Assets
High-Quality Assets Since current management initiated its repositioning strategy, YSI has dramatically increased the quality of its portfolio. Capital Expenditure Plan Completed significant capital expenditure program. Painted 158 facilities. Remodeled 65 offices. Standardized branding across the p
Slide 6: Experienced Management Team
Source: Company filings. Experienced Management Team U-Store-It’s management team has deep publicly-traded REIT and self-storage sector experience. U-Store-It Senior Management Officer Position Relevant Experience Dean Jernigan Chief Executive Officer U-Store-It: Since 2006 and Trustee Private Inves
Slide 7: Corporate Governance and Board Composition
* Committee chairs Source: Company filings. Corporate Governance and Board Composition Shareholder friendly corporate governance structure. Non-staggered board with seven of eight trustees independent. Audit Committee is chaired and comprised of independent trustees. U-Store-It Board of Directors Na
Slide 8: Sector-Leading Technology
Sector-Leading Technology Qlikview Reporting Daily Flash Reporting ROSCOE Mobile Technology Solutions HRIS System Accounting Systems General ledger Automated bank reconciliation software Paperless accounts payable system In-house treasury software Enhanced financial reporting Centershift point of sa
Slide 9: Favorable Trends in the Self-Storage Sector
Favorable Trends in the Self-Storage Sector Self-storage has developed a favorable reputation as recession-resilient due to its diverse, defensive demand drivers. Household mobility is the main storage demand driver, which benefits in both economic expansions and contractions. A diversified tenant m
Slide 10: Favorable Trends in the Self-Storage Sector (continued)
Favorable Trends in the Self-Storage Sector (continued) The self-storage sector’s NOI growth has historically outperformed the average of other major property types. Green Street estimates the sector will continue to outperform between 2010 to 2015 again, though by a lower margin due to the sector m
Slide 11: Favorable Trends in the Self-Storage Sector (continued)
Favorable Trends in the Self-Storage Sector (continued) Despite the economic downturn, U-Store-It’s tenant quality has improved: Median length of stay increased 26% from 171 to 215 days. Bad debt expense decreased 45% from $1 million to $560,000. Bad Debt Expense $1,021,400 $1,118,950 $1,178,147 $95
Slide 12: Favorable Trends in the Self-Storage Sector (continued)
Favorable Trends in the Self-Storage Sector (continued) Self-storage is a highly scalable business with low variable costs at the property level. Corporate functions such as call centers and revenue management systems are consolidated and easily scalable. With low variable expenses at the property l
Slide 13: Favorable Trends in the Self-Storage Sector (continued)
Favorable Trends in the Self-Storage Sector (continued) Industry supply growth has been muted by a challenging financing and operating environment in which small, private operators are struggling to compete. Total construction starts are down by approximately 65% from the levels seen four years ago.
Slide 14: Flexible Liquidity Position
Flexible Liquidity Position Sound Execution Drives Liquidity and Capital Availability (1/1/2009 – Present) Refinanced line of credit and term loan with $450 million in lending commitments, comprising a $200 million secured term loan and $250 million secured revolver. Amended facility to unsecure ass
Slide 15: Successful Execution of Deleveraging Plan
Successful Execution of Deleveraging Plan December: Closed $450 million 3-year credit facility August: $169 million follow-on equity offering June: Began credit facility recast process Stock Performance July: Entered management agreement to manage 25 facilities; acquired a self-storage facility in D
Slide 16: Debt Maturity Schedule
Debt Maturity Schedule Debt Maturity Schedule (as of 9/30/2010) YSI has limited 2010 and 2011 debt maturities. YSI has numerous avenues to access capital to meet upcoming debt maturities: $23.2 million in cash. $250 million of availability with its revolving line of credit. Public equity. Preferred
Slide 17: Credit Facility Update
Credit Facility Update On September 29th, U-Store-It closed its credit facility to convert its $450 million revolving credit facility from secured to unsecured. Terms Amount: Maturity Date: Covenant Structure: Capitalization Rate: Pricing: $450 million Unsecured Credit Facility consisting of a $250
Slide 18: Commitment to Conservative Capital Structure
Commitment to Conservative Capital Structure Common Equity - 55% Unsecured Debt - 20% Secured Debt - 25% (1) Assumes repayment of YSI 25 and YSI 2 with line of credit. Source: SNL Financial as of 9/30/2010 and Company Financials as of Q2 2010. YSI management is committed to maintaining a conservativ
Slide 19: Growth Plan Supports Balance Sheet Objectives
Well-positioned and scalable platform: Necessary investments in scalable systems have already been made. Investments in portfolio improvements will reduce future cap ex requirements. Continue to expand property management business. Opportunities for external growth: Currently evaluating numerous acq
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