Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (November 2013)
18 slides from Cubesmart's investor presentation, Nov 13, 2013
Slide 1: CubeSmart November 2013
Gi) cueswaar November 2013
Slide 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 its expectations will be achi
Slide 3: Introduction to CubeSmart
Introduction|to CubeSmart Self-storage REIT with expansive national platform 497 361 136 497 -_ Total Market Cap? \ $3.6 billion LIA Headquarters “ J Wayne, PA om oo @ Managed *. CusBeSmart: 1). Property count as of September 3, 2013 3 BD heey de scabs 40, 2098, barber elon of commoe end preferred e
Slide 4: Self-Storage Industry Overview
Self-Storage Industry Overview Attractive industry with favorable economic characteristics Broadening Broad tenant diversifi “ania gills * Demand driven by mobility, life change Sui ©5i) ) * High operating margins Flow Low cap-ex requirements Frsjucys) \ * Opportunity for consolidation Ownership Uns
Slide 5: Long-Term Vision for Value Creation
Long-Term Vision for Value Creation A balanced and disciplined approach Financial Flexibility Maximize portfolio value Continue to prudently Maintain investment grade through continued focus build a portfolio of high- balance sheet that affords on customer service and quality assets, with focused br
Slide 6: Year-to-Date 2013 Highlights
Year-to-Date 2013 Highlights Executing on strategic objectives Financial Flexibility Same-Store Results: $312 million in Improved terms on bank financing Nol" +#10.1% acquisitions? agreements totaling $800 million Revenue hs $126 million in $53 million in “at-the-market” Expenses +3.1% dispositions?
Slide 7: FFO Per Share Growth
Financial Flexibility FFO Per Share' Growth +3 1 %, year to date? lings fora detailed explanation of FFO and
Slide 8: Robust Performance Trends
Robust Performance Trends Continuation of meaningful occupancy gains +480 bps, year over year 90.0% : 85.0% 80.0% 2012 @leSame-Store Occupancy" 201 2Q 3Q CUBESMART™ ° Serr sreres end 201252013 noes ct me or pool econiaedonSeptenber 8, 8 2013. Occupancies prior to 2012 reflect those of the 2012 same-
Slide 9: Robust Performance Trends (continued)
Robust Performance Trends (conrinveq) Historically strong revenue and NOI gains Same-Store Revenue Growth’ Same-Store NOI Growth? As Reported As Reported 12.0% 120% 10.1% 10.0% 10.0% 9 8.0% 7.6% 8.0% 6.0% 6.0% 40% 3.6% 3.8% 4.0% . [ 2 . 0.0% | 0.0% + 2011 2012 2013YTD 2011 2012 2013YTD mSame-Store R
Slide 10: Redefining service in the self-storage industry
Redefining service in the self-storage industry 2ZOAS Winner of 3 Gold Stevie® Awards * Contact Center of the Year STEVIE® WINNER * Innovation in Customer Service * Customer Service Department of the Year WINNER. P ISSSELE-sTORAGE 2ui2 Winner of Inside Self-Storage Best of BEST OF BUSINESS ; BEST CU
Slide 11: Performance Fueled by Innovation
Performance Fueled by Innovation Enhancing the Customer experience at all points of engagement through proprietary systems and processes Attraction Reservation Continued Engagement 2013 GOLD y STEVIEWINNER Eas“
Slide 12: Significant evolution over past six years
Significant evolution over past six years $22.00 Acquisitions $20.00 2008 - November 2013” $18.00 Total Portfolio $16.00 November 2013” $14.00 Total Portfolio. Janay 2008, $12.00 Or Realized Rent Per Occ Sq Ft $10.00 50,000 100, on 150, non 200,000 250,000 300,000 350,000 400,000 450,000 500, ioe Po
Slide 13: Focus on building depth in attractive, high-barrier-to-entry markets
Focus on building depth in attractive, high-barrier-to-entry markets Investment Activity Since 2008 $1.3 billion 128 stores $42.1 milion 138 stores Cees Sey dt = 3 @vvpoutors, 7008- November 2013 : > + CuBeSMART 4 Transactions closed or announced and under contract from 2008 through November 7, 2013
Slide 14: Focused Exposure to Core Investment Markets
Focused Exposure to Core Investment Markets Core investment markets represent 70% of portfolio NOI" Geographic Exposure % of portfolio NO/ Other Markets San Francisco. / Oakland Ww Boston Denver, CO Phoenix-Mesa, AZ Baltimore / oc Philadelphia /. Southern wy Atlanta LA/San Diego Chicago Miami / Ft.
Slide 15: Investment Grade Balance Sheet
Investment Grade Balance Sheet Objective of funding growth in manner that maintains or improves metrics Investment Grade Rating Conservative Metrics As of September 30, 2013 As of September 30, 2013 STANDARD Debt / Gross Assets 40% &POOR’S Debt + Preferred / Gross Assets 43% Debt / EBITDA S.8x © Deb
Slide 16: Flexibility to Support Growth
Flexibility to Support Growth Capital structure affords access to full spectrum of capital sources Capital Structure Private Public As of September 30, 2013 = OP Units ® Follow-on Common 400% = Free Cash Flow Equity Offering § E * Strategic Dispositions | * At-The-Market q Es * Joint Venture Equity
Slide 17: Key investment takeaways
QO Limited new supply, a widening competitive divide between large and small operators, and continuing industry consolidation OQ Robust organic growth fueled by a focus on customer service and continued enhancement of operational infrastructure O Meaningful external growth through a disciplined inve
Slide 18: Investor Relations Contact
pb) cuseswasr Investor Relations Contact Daniel Ruble, CFA Vice President, Finance 460 E. Swedesford Rd. Suite 3000 Wayne, PA 19087 610.293.5700 druble@cubesmart.com