Cubesmart · NYSE:CUBE
Cubesmart — Investor Day (May 2021)
24 slides from Cubesmart's investor day presentation, May 2021
Slide 1: New York City Portfolio Presentation May 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement The forward-looking statements contained in this presentation are subject to various risks and known and unknown uncertainties. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assur
Slide 3: CUBE remains uniquely positioned to outperform in the country's strongest self-storage market
CUBE remains uniquely positioned to outperform in the country’s strongest self-storage market Market • The scale of our portfolio in both New York City and the surrounding Dominance suburbs creates competitive advantages Vibrant • New York City is the strongest self storage market in the world, as t
Slide 4: Over the last 10 years, we have assembled the highest quality portfolio of stores
Over the last 10 years, we have assembled the highest quality portfolio of stores in New York City, providing both breadth of coverage across all five boroughs and depth within key submarkets Properties Owned Total Brooklyn 15 20 Bronx 14 15 Queens 14 15 Manhattan 1 1 Staten Island 1 2 Total 45 53 O
Slide 5: New York-Northern New Jersey-Long Island Properties
New York-Northern New Jersey-Long Island, NY-NJ-PA Properties Owned Total NYC 45 53 North NJ 19 35 Long Island 7 12 Westchester 5 7 Total 76 107 Owned Managed ▪ Our portfolio in the New York City boroughs is complemented by a significant presence across the major suburbs, allowing us to meet our cus
Slide 6: Our market-leading portfolio was built methodically over the last ten years
Our market-leading portfolio was built methodically over the last ten years as a result of our strategic focus on this market as core to our growth strategy • One NYC borough property in the legacy portfolio (Queens) • Established a relationship with Storage Deluxe through the acquisition of a two-
Slide 7: Our portfolio in the New York MSA is well diversified across seven distinct markets
▪ Our portfolio in the New York MSA is well diversified across seven distinct markets which each have unique demographic trends and economic drivers that are supportive of strong self-storage demand ▪ Our dominant market position in the three major outer boroughs, with 23% of available square footag
Slide 8: Our NYC stores make up the largest portfolio of purpose-built Class A properties
Our NYC stores make up the largest portfolio of purpose-built Class A properties in the market ▪ Our portfolio has exposure to attractive submarkets in New York, with purpose- built climate-controlled stores that have an average age of just 12 years ▪ These distinctive assets create vibrant billboar
Slide 9: Our purpose-built portfolio is built in exceptional locations
Our purpose-built portfolio is built in exceptional locations Property stands out with great visibility for distinctive branding Easily accessible Significant from highway multifamily exit presence with 37k residents per square mile Right off the Major Deegan with 148,000 cars daily
Slide 10: Our dominant position affords us competitive advantages from the ubiquity of our brand
Our dominant position affords us competitive advantages from the ubiquity of our brand within the market ▪ Our distinct properties act like billboards and our significant presence allows for efficiency with out-of-home marketing, all driving meaningful brand recognition ▪ Our NYC properties receive
Slide 11: The high quality of our properties positions us at a premium to the competition
The high quality of our properties and the strength of our market position in the NYC boroughs positions us at a premium to the competition 5x5 CC Internet Rate1 $124 0.45 miles $105 Premium +18% 1. Internet rate from company website as of 5/10/2021
Slide 12: The high quality of our properties positions us at a premium to the competition
The high quality of our properties and the strength of our market position in the NYC boroughs positions us at a premium to the competition 5x5 CC Internet Rate1 $115 $104 Premium +11% 1. Internet rate from company website as of 5/10/2021
Slide 13: The high quality of our properties positions us at a premium to the competition
The high quality of our properties and the strength of our market position in the NYC boroughs positions us at a premium to the competition 5x5 CC Internet Rate1 $125 0.48 miles $101 Premium +24% 1. Internet rate from company website as of 5/10/2021
Slide 14: Each borough has a standalone economy with large populations and low levels of supply
Each borough has a standalone economy with large populations and low levels of supply which support significantly higher rental rates than similarly-sized markets New York City Boroughs Compared to Similarly-Sized MSAs Rank MSA Population1 SF per Capita2 Realized RPSF3 New York-Northern NJ-Long Isla
Slide 15: Strong demand drivers and local economies position New York City to be the best storage market
Strong demand drivers and local economies position New York City to be the best storage market in the United States There are significantly more High population density Renters boost demand as people surrounding our creates a strong demand they are 3.9x more likely to stores in NYC compared to profi
Slide 16: The outer-boroughs are fundamentally different than Manhattan
The outer-boroughs are fundamentally different than Manhattan and each of them has a robust local economy influenced by a unique set of drivers 1 ▪ Employers in the outer- boroughs are generally blue- collar industries compared to the white-collar focus of Manhattan ▪ Education, health, and governme
Slide 17: New York City renters have distinctive demand drivers
New York City renters have distinctive demand drivers that manifest themselves in unique interactions with the product ▪ NYC customers rent for much longer, with median lengths of stay approximately three months greater than the rest of the portfolio ▪ The unit mix for stores in NYC is drastically d
Slide 18: Manhattan is a unique market, with different demand characteristics
Manhattan is a unique market, with different demand characteristics and demographics from the other boroughs ▪ We have one store in Manhattan, located in Midtown on West 55th Street ▪ An extremely small average unit size of 26.5 SF is distinctive of Manhattan storage, as demand tends to be from cust
Slide 19: New York City customers are generally located in very close proximity to the store
New York City customers are generally located in very close proximity to the store ▪ 59% of customers at this Bronx store come from within one mile of the store versus 26% at a comparative store in the Dallas MSA ▪ In Dallas, the ring would need to be extended out to three miles to capture a similar
Slide 20: New York City compares extremely favorably to the top 12 MSAs with the lowest SF per capita
New York City compares extremely favorably to the top 12 MSAs with the lowest SF per capita of any major market ▪ Supply per capita in all three boroughs is less than half the national average as overall supply remains low despite deliveries from the recent development cycle ▪ The supply outlook in
Slide 21: Performance in the boroughs has remained steady throughout this development cycle
Performance in the New York City boroughs has remained steady throughout this development cycle ▪ Over the last three years, our same-store portfolio in New York City has continued to post positive revenue growth while competing with the recent inflow of new supply ▪ We expect that changes to the IC
Slide 22: Since 2014 we have continued our investment in the NYC boroughs through development
Since 2014 we have continued our investment in the NYC boroughs by developing brand new Class-A properties, creating long-term value Brooklyn Bronx Queens Manhattan $159m $141m $135m $81m $294m of value creation for our shareholders1 1. Proforma based on stabilized NOI projections and current market
Slide 23: Performance in the boroughs has accelerated with significant increases in demand
Performance in the boroughs has accelerated with significant increases in demand muting the impact of new supply ▪ New York City has proven resilient through the pandemic, with strong demand trends helping to grow occupancy through the first quarter ▪ High levels of demand have accelerated the lease
Slide 24: New York City will remain a key component of our long-term strategy
New York City will remain a key component of our long-term strategy Market • The competitive advantages afforded to us by our dominant market Dominance portfolio position us to maximize cash flows from our NYC portfolio Vibrant • The unique demographics of New York City will continue to drive Demogr