Slide 1: CubeSmart March 2015
Go) cueswarr March 2015
Slide 2: Forward-looking statements
2 The forward-looking statements contained in this presentation are subject to various risks and uncertainties. Although the Company believes the expectations reflected in such forwardlooking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achi
Slide 3: Self-storage REIT with expansive national platform
Self-storage REIT with expansive national platform 3 421 595 174 Facilities1 Owned Managed Miami 19 Other FL 54 Atlanta 16 Major TX 47 Chicago 33 Ohio 20 Balt/DC 23 Philadelphia 15 NY 49 CT 21 Boston 5 Tenn 5 AZ/LV 31 CO/UT 13 So. CA 12 Inland Empire 16 Other West 15 Other Midwest 10 Other Southeast
Slide 4: Cumulative total returns versus self-storage REITs
4 Innovative platforms, disciplined growth, and prudent funding have combined to generate significant value for shareholders Cumulative Total Returns1 1) Returns through 12/31/2014. Self-Storage REITs represent a straight average of cumulative total returns for the four publicly traded storage REITs
Slide 5: Internal growth, external growth, financial strength
5 External Growth Financial Strength Internal Growth Maximize portfolio value through continued focus on customer service and operational advancement Continue to prudently build a portfolio of high- quality assets, with a focus on targeted markets Maintain BBB/Baa2 investment grade balance sheet tha
Slide 6: 2014 same-store results and 2015 guidance
6 External Growth Financial Strength Internal Growth imize por io value through continued focus on customer s ce and op tional adv ement C d l b ld f l f high quality assets, ocus on targeted m M i t i BBB/B 2 i t t de bal h et th d ac array pal so Revenue Expenses NOI2 Average Occupancy +7.2% +2.5%
Slide 7: Customer engagement lifecycle
Reservation Attraction Rental Continued Engagement 7 Internet Marketing Revenue Management Customer Service Marketing Efforts Website Email Confirmation Customer Center Inventory Management Attractive Discount Attractive Offer In-Place Rate Increases Customer Referrals Sales Center Store Managers EN
Slide 8: Adjusting to evolving marketing ecosystems and engagement mediums
8 Adjusting to evolving marketing ecosystems and engagement mediums Time Sophistication Yellow Page advertising; engagement primarily via land-line phone and in-person Early online advertising; websites accessed via desktop computers and serve as digital flyers Website maturation; Internet ad spend
Slide 9: Optimizing marketing efforts through industry-leading analytics
9 Optimizing marketing efforts and efficiently attracting customers through use of industry-leading analytics
Slide 10: Supplementing internet marketing with traditional platform
10 Supplementing internet marketing initiatives with a traditional platform to take advantage of market depth and to reach customers offline Out-of-home placements in markets with high store concentration Hyper-targeted direct mail campaigns in select markets Selective local marketing efforts to tar
Slide 11: Advanced data analytics to personalize customer experiences
11 Advanced data analytics to personalize experiences for each customer Custom Experience 1 Custom Experience 2 Custom Experience 3 Continued focus on capturing and leveraging insights about customers to create customized experiences that increase engagement and conversion Understanding the motivati
Slide 12: Revenue management landscape
Historically, advanced revenue management techniques have boosted revenue in a number of supply-constrained industries, beginning with airlines and then moving on to hotels Multi-family represents the closest analogy, but the unpredictable lengths of stay for self storage customers adds additional c
Slide 13: Pricing optimization and multi-dimensional demand
Fundamental Pricing Issue Optimal Pricing Substitutability Competition Timing / Other Capacity / Economic Outcomes Pricing Decisions Pricing optimization requires consideration of a multi-dimensional demand landscape and dynamic capacity constraints 13
Slide 14: Long-term revenue maximization strategy
Long-Term Revenue Maximization Strategy Demand Forecast/ Revenue Optimization Price optimization requires consideration of a multi-dimensional demand landscape & dynamic capacity constraints Balance Between Street Rates, Discounts, and Concessions Goal of providing the most compelling offer to the c
Slide 15: An award-winning service culture
16 An award-winning service culture
Slide 16: External growth: investment strategy
17 External Growth Financial Strength Internal Growth imize portfolio value through continued focus on customer service and operational advancement Continue to prudently build a portfolio of high-quality assets, with a focus on targeted markets Maintain BBB/Baa2 investment grade balance sheet t rds
Slide 17: Investment activity since 2008
Acq itions1,2 18 Focus on adding scale in attractive, high-barrier-to-entry markets Investment Activity Since 2008 $2.0 billion 192 Stores 1) Transactions closed or announced and under contract from 2008 through December 31, 2014. 2) Includes investment in 35 properties through HHF Joint Venture D s
Slide 18: Significant evolution over past seven years
19 Significant evolution over past seven years Note: Bubbles sized by revenue. 1) Realized annual rent per occupied sq ft is computed by dividing rental income by the weighted occupied sq ft for the period. 2) Includes transactions closed or announced and under contract as of December 31, 2014. Tota
Slide 19: Portfolio with sector-leading demographics
20 Evolution has created a portfolio with strong, sector-leading demographics 3-Mile Population 3-Mile Average Household Incomes Source: ISI Group LLC Real Estate Research Report dated September 5, 2014.
Slide 20: Development transactions
1Q14 Bronx, NY – $17.2M Malvern, PA - $25.1M 1Q15 Arlington, VA - $18.1M 2Q15 Brooklyn, NY - $10.7M $154.2M 21 2Q16 Brooklyn, NY - $32.0M Development Development transactions generate highest returns Utilize partners for local market expertise 3Q15 Queens, NY - $32.1M 1Q16 Queens, NY - $19.0M 1) Dol
Slide 21: Purchase at completion transactions
$123.2M 22 Purchase at Completion These transactions allow us to acquire high-quality, purpose-built assets without taking on development risk Our proven operational platform creates value by mitigating lease-up risk 4Q14 Long Island City, NY – $38M 1Q15 Dallas, TX – $15.8M 1Q16 Brooklyn, NY – $48.5
Slide 22: Refreshing the portfolio with purpose-built Class A facilities
Refreshing the portfolio by adding purpose-built Class A facilities 23
Slide 23: Third-party management platform
Platform has grown to 174 properties since its inception in 2009 Purchased 57 properties from our managed portfolio for $527 million1 since 2010 1) Includes acquisitions closed or under contract as of February 26, 2015 24 Third-party management allows us to leverage our operating platform and genera
Slide 24: Financial strength: approach and 2014 activity
25 External Growth Financial Strength Internal Growth Maximize portfolio value through continued focus on customer service and operational advancement Continue to prudently build a portfolio of high-q lity assets, with a focus on targeted markets Maintain BBB/Baa2 investment grade balance sheet that
Slide 25: Funding growth with a conservative balance sheet
26 Objective of funding growth in manner consistent with a conservative balance sheet Investment Grade Rating As of December 31, 2014 Conservative Metrics 36% Debt / Gross Assets 38% Debt + Preferred / Gross Assets 5.4x Debt / EBITDA1 5.8x Debt + Preferred / EBITDA1 6.0% Secured Debt / Gross Assets
Slide 26: Improving credit metrics
Strong oper ng performance coupled with conservative balance sheet management continues to improving credit metrics Historical Leverage Levels1 EBITDA Coverage Ratio1 Gross Assets1 Dividends2 1) Source: Company Filings 2) Sources: SNL, Company Filings 3) Dividend payout ratio calculated as annual co
Slide 27: Summary of organic and external growth
Robust organic growth fueled by a focus on customer service, continued enhancement of operational infrastructure, and a widening divide between large and small operators Meaningful external growth through a disciplined investment process supplemented by a competitive and expanding third party manage
Slide 28: Same-store performance and key metrics
29 1) Performance as reported for the same-store pool as it was constituted at the end of the respective year 2) Year-ending values as detailed in Company’s supplemental packages 3) Calculated as ending common share price / funds from operations per share, as adjusted. Please refer to CubeSmart’s pu
Slide 29: Investor Relations Contact
Date I tor Re ns Con Charles Place Director, Investor Relations 5 Old Lancaster Rd. Malvern, PA 19355 610.535.5700 cplace@cubesmart.com Date Investor Relations Contact Charles Place Director, Investor Relations 5 Old Lancaster Rd. Malvern, PA 19355 610.535.5700 cplace@cubesmart.com