Smartstop Self Storage Reit, Inc. · NYSE:SMA
Smartstop Self Storage Reit — NAREIT Presentation November 2021
35 slides from Smartstop Self Storage Reit's conference presentation, Nov 8, 2021
Slide 1: NAREIT Presentation November 2021
NAREIT Presentation November 2021 North York, Toronto Exhibit 99.1
Slide 2: Disclaimer & Risk Factors
Disclaimer & Risk Factors 2 Certain of the matters discussed in this investor presentation constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be identified by ou
Slide 3: Today's Presenters
Today’s Presenters 3 H. Michael Schwartz Founder, CEO & Executive Chairman Chairman since March 2013 Founder and creator of SmartStop® Self Storage brand and platform 30+ years of real estate, securities and corporate financial management experience James Barry CFO & Treasurer CFO and Treasurer sinc
Slide 4: SmartStop Platform at a Glance
SmartStop Platform at a Glance 4 11th Largest Self Storage Company in the U.S. 12.2 Million(1) Owned and Managed Rentable Square Feet 158(1) Owned and Managed Self Storage Facilities $2.5 Billion Total Capitalization(3) >$4.0 Billion Historical Self Storage Transaction Activity(2) 400+ Employees Sma
Slide 5: Major Company and Affiliate Milestones
Major Company and Affiliate Milestones 17+ Year Track Record Of Creating Shareholder Value 5 NOVEMBER 2005 H. Michael Schwartz acquires first ten self storage properties MARCH 2008 SST, first public non-traded REIT entirely focused on self storage, declared effective and begins offering shares at $1
Slide 6: SmartStop Self Storage REIT
al, SmartStop Self Storage REIT, Inc. ..The Smarter Way to Storel° NAREIT Presentation G
Slide 7: Investment Highlights
Institutional Operator And Technology Platform Demonstrated Ability To Grow Externally Conservative And Diversified Capital Structure Experienced Management Team And Board High Quality, Diversified Portfolio In Key Growth Markets Investment Highlights 7 1 2 3 5 6 North York, Ontario High Growth Port
Slide 8: Owned Operating Portfolio
Owned Operating Portfolio 8 Note: Portfolio as of 10/31/2021 and includes all operational properties owned by SmartStop, including joint venture properties. Determined based on largest US MSAs and Toronto. Greater Toronto Area included as a top 25 MSA, ranked 8th, with a population of 6.1 million. W
Slide 9: Concentration In High Growth North American Markets
Concentration In High Growth North American Markets 9 Toronto % of Same- Store NOI(1) Miami - FLL Los Angeles Asheville Las Vegas # Total Properties(2) Total Rentable SQFT (000s)(2) 3Q21 YoY Same-Store Revenue Growth Same-Store Net Rent per Occupied SQFT(3) Avg. 3 Mi. Population (000s)(2) Avg. 3 Mi.
Slide 10: Rents and Demographics Reflect Strength of Property Locations
Q3 2021 Same-Store Rent / SF(1) Percentage In Top 25 MSAs(2) 3 Mile Median Household Income (000s)(3) 3 Mile Population (000s)(3) Rents and Demographics Reflect Strength of Property Locations 10 Sources: SNL, Company internal data, Ontario Ministry of Finance, Company Filings, Evercore Storage Demog
Slide 11: Toronto And Largest U.S. Cities By Population
Square Feet Per Capita(2) 2021A – 2026E Population Growth Projections(1) 11 Sources: SNL, Green Street Advisors, Statistics Canada Census 2016, and Ontario Ministry of Finance website. Population data for US cities per SNL; population data for Toronto per Ontario Ministry of Finance website. Represe
Slide 12: SmartStop Leading the Way in the GTA
SmartStop Leading the Way in the GTA 12 As measured by Net Rentable Square Feet at 10/31/21; Includes joint venture square footage. Colliers January and May 2021 reports Denominated in USD. NOI is a non-GAAP measure. See Appendix for a reconciliation of this measure to the most directly comparable G
Slide 13: SmartCentres Joint Venture Case Study: Vaughan
SmartCentres Joint Venture 13 Case Study: Vaughan Joint Venture properties are held in various entities, including through SmartStop’s managed REITs (SST VI and SSGT II). One of the five operational joint venture assets is owned by SSGT II. One of the projects under development is owned by SST VI. J
Slide 14: Internal & External Growth
Internal & External Growth 14
Slide 15: Internal Growth: Recent Historical Performance
Internal Growth: Recent Historical Performance 15 3-Year Average YoY Same-Store Revenue Growth(1) FFOa Per Share Growth Since 4Q19(2) 3-Year Average YoY Same-Store NOI Growth(1,3) Source: Company data and filings. Represents the average year-over-year same-store growth of the most recent 12 quarters
Slide 16: Internal Growth: Q3 2021 Sector Leading Performance
Internal Growth: Q3 2021 Sector Leading Performance 16 Q3 2021 YoY Same-Store Revenue Growth Q3 2021 YoY Same-Store NOI Growth(1) Q3 2021 YoY Same-Store Occupancy Growth(2) Q3 2021 Ending Same-Store Occupancy Source: Company data and filings. NOI is a non-GAAP measure. See Appendix for a reconciliat
Slide 17: Internal Growth: Concentration of Growth Assets
Internal Growth: Concentration of Growth Assets 17 SmartStop has a higher percentage of its assets in its non same-store portfolio (25.4%) vs. peers (12.3%)(1) 3Q21 ending physical occupancy 140bps below same-store average 3Q21 RentPOF 9.9% below same-store average Represents 13.6% of 3Q21 total sel
Slide 18: 2021 Operational Update
2021 Operational Update 18 3Q21 Highlights October 2021 Update Strong YoY same-store results Revenues increased 19.4% Operating expenses increased 2.3% NOI increased 28.1%(1) Average physical occupancy increased 420bps to 95.9% Annualized rent per occupied square foot increased 15.3% to $16.92(2) In
Slide 19: External Growth: Investment Activity
External Growth: Investment Activity 19 Stabilized Acquisitions: (5) Note: All acquisition and development prices reflect the original purchase price executed by SmartStop, including Strategic Storage Growth Trust, Inc. and Strategic Storage Trust IV, Inc.. Includes two assets that were previously h
Slide 20: External Growth: Strategic Storage Trust IV Merger
External Growth: Strategic Storage Trust IV Merger 20 Portfolio Impacts: (5) Amounts include joint venture assets. As of 5/31/21 Occupancy for wholly owned assets as of 3/31/21 On March 17, 2021 SmartStop closed the acquisition of Strategic Storage Trust IV, Inc. (“SST IV”) $375 million in gross ass
Slide 21: SmartStop Managed REIT Funds
SmartStop Managed REIT Funds 21 (5) Strategic Storage Growth Trust II, Inc. (“SSGT II”) Strategic Storage Trust VI, Inc. (“SST VI”) $155 million assets under management on a cost basis 11 self storage properties 10 wholly-owned One joint venture property with SmartCentres SSGT II Portfolio Stats Inc
Slide 22: Well Positioned Balance Sheet
Well Positioned Balance Sheet 22 Recent Balance Sheet Activities: March 2021: In tandem with the closing of the SSTIV merger, entered into a multi-currency credit facility of up to $500 million $250 million revolver (3-year initial maturity) and $250 million term loan (5-year maturity) Initially sec
Slide 23: Strong and Valuable Brand Identity
Store Branding Brand Awareness Strong and Valuable Brand Identity 23 Well-Known Brand Name Brand Protection Recognizable Signage and Colors SmartStop® Brand Appearances Registered trademarks in U.S. / Canada 250 U.S. / Canadian domain names Continued investment in brand and marketing translates to c
Slide 24: Industry Leader In Customer Experience
Ability to search for and reserve units at one of SmartStop’s 150+ locations Integrated into revenue management system to update pricing and occupancy real time Online Reservations Industry Leader In Customer Experience 24 Technology-driven platform gives SmartStop the ability to meet customers’ uni
Slide 25: Sophisticated Operating And Analytics Technology
Sophisticated Operating And Analytics Technology 25 Optimization of rental rates, discounts, and incentives driven by scientifically-based, proprietary pricing models Proprietary competitive rate analysis allows dynamic and real-time pricing based on forecasted future demand Evaluation and implement
Slide 26: SmartStop Self Storage REIT
al, SmartStop Self Storage REIT, Inc. ..The Smarter Way to Storel° NAREIT Presentation 26
Slide 27: Decades of Collective Industry Experience
Decades of Collective Industry Experience 27 Board of Directors Senior Team Bliss Edwards Executive Vice President - Canada 6 Years Storage Experience Wayne Johnson President & CIO 35 Years Storage Experience
Slide 28: MSA Exposure – Same-Store
MSA Exposure – Same-Store 28 Source: Company internal data. Note: Data presented represents SmartStop’s existing owned same store portfolio only MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. 3Q21 Wholly Owned Same-Store Portfolio at 9/30/21 Note: Data presented represen
Slide 29: MSA Exposure – Total Portfolio
MSA Exposure – Total Portfolio 29 3Q21 Wholly Owned Total Portfolio at 9/30/21 Note: Data presented represents SmartStop’s existing wholly-owned portfolio only, excluding joint ventures. MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolitan Area
Slide 30: Reconciliation: Net Loss to Net Operating Income
Reconciliation: Net Loss to Net Operating Income 30
Slide 31: Reconciliation: Net Loss to FFO & FFO, as Adjusted
Reconciliation: Net Loss to FFO & FFO, as Adjusted 31 (1) These items represent the amortization, accretion, or adjustment of intangible assets or deferred tax liabilities. As these items are non-cash and not primary drivers in our decision-making process, FFO is adjusted for their effect to arrive
Slide 32: Reconciliation: Net Loss to FFO & FFO, as Adjusted per Share & Unit
Reconciliation: Net Loss (Attributable to Common Stockholders) to FFO & FFO, as Adjusted per Share & Unit Outstanding - Diluted 32 (1) Includes all Class A Shares, Class T Shares and OP Units, as well as the dilutive effect of both unvested restricted stock and long term incentive plan units (both t
Slide 33: Reconciliation: Net Loss to EBITDA
Reconciliation: Net Loss to EBITDA 33
Slide 34: Additional Information Regarding NOI, FFO & FFO, as adjusted
Additional Information Regarding NOI, FFO & FFO, as adjusted 34 Funds from Operations (“FFO”) and FFO, as adjusted Funds from operations (“FFO”) is an industry wide metric promulgated by the National Association of Real Estate Investment Trusts, or NAREIT, which SmartStop believes to be an appropria
Slide 35: Additional Information Regarding NOI, FFO & FFO, as adjusted
Additional Information Regarding NOI, FFO & FFO, as adjusted 35 Net Operating Income or (“NOI”) NOI is a non-GAAP measure that SmartStop defines as net income (loss), computed in accordance with GAAP, generated from properties before corporate general and administrative expenses, asset management fe
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