Smartstop Self Storage Reit, Inc. · NYSE:SMA
Smartstop Self Storage Reit — Q1 2023 Earnings Presentation
32 slides from Smartstop Self Storage Reit's earnings presentation, Jun 2, 2023
Slide 1: First Quarter 2023 Update
First Quarter 2023 Update Texas City Texas Exhibit 99.1
Slide 2: Disclaimer & Risk Factors
Disclaimer & Risk Factors 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 our
Slide 3: SmartStop Platform at a Glance
SmartStop Platform at a Glance 11th Largest Self Storage Company in the U.S.(1) ~14.7 Million(2) Owned or Managed Rentable Square Feet 185(2) Owned or Managed Self Storage Facilities $3.0 Billion Total Capitalization(4) >$5.0 Billion Historical Self Storage Transaction Activity(3) ~450 Employees Sma
Slide 4: Awards and Accolades
Awards and Accolades BBB- Investment-Grade Credit Rating from Kroll Bond Rating Agency, Inc. (2022 + 2023)
Slide 5: SmartStop Strategy, Platform & Portfolio
SmartStop Strategy, Platform & Portfolio SmartStop’s focus on high-growth domestic and Canadian markets, combined with unique operating platform initiatives, have created a high quality portfolio with embedded growth opportunities Strategy Platform High Quality Portfolio Strong North American brand
Slide 6: Investment Highlights
Differentiated Exposure to the Greater Toronto Area (“GTA”) Institutional Operator and Technology Platform High Growth Portfolio of Stabilized and Lease Up Assets Experienced Management Team And Board High Quality, Diversified Portfolio In Key Growth Markets Investment Highlights 1 2 3 5 7 Demonstra
Slide 7: Owned Portfolio Overview as of 3/31/23
Owned Portfolio Overview as of 3/31/23 Note: Figures reflect wholly-owned JVs at 100% of NRSF. (1) Toronto included as a top 25 MSA. Top 25 MSA’s as defined by 2020 U.S. Census Bureau data. (2) MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolit
Slide 8: Major US Markets: Miami / Ft. Lauderdale and LA
Major US Markets: Miami / Ft. Lauderdale and LA Sources: Company internal data as of 3/31/23. (1) RentPOF defined as annualized rental revenue net of discounts & concessions, excluding late fees, administrative fees and parking income, divided by occupied square feet of storage. MSA(1) NRSF Portfoli
Slide 9: Greater Toronto Area Overview
Home to the Toronto Stock Exchange, leading financial institutions and an array of Canada’s largest companies With accommodative immigration policies and a high-quality education system, the GTA is attracting young, highly skilled workers and quickly emerging as a hotbed for the digital economy Rank
Slide 10: GTA Storage Market Overview
GTA Storage Market Overview % Population Growth Sq. Ft. / Capita The GTA market exhibits many of the positive market characteristics of the top U.S. MSAs, with far less institutional competition The GTA’s Low Supply Ratio and Strong Population Growth Suggests a Long Runway for Absorption Relative to
Slide 11: SmartStop is a Leading Operator in Toronto
SmartStop is a Leading Operator in Toronto Milton, ONT Toronto, ONT SmartStop GTA Owned or Managed Portfolio(3) SmartStop GTA Highlights 12+ Years of experience in GTA Market 5th Largest Operator in GTA(1) 6%+ GTA Market Share(1) 2.3mm SF Total Owned or Managed Sq. Ft.(2) 24 Owned or Managed Operati
Slide 12: SmartStop's Opportunity in Canadian Markets
SmartStop’s Opportunity in Canadian Markets Future Canadian Growth Canadian Market Leader Fifth Largest Owner in Canada Dedicated Canadian Website: Smartstop.ca Québec Ontario Toronto 3.0x 1.6x Montreal 2.3x Vancouver British Columbia 2.1x Calgary 2.3x Edmonton Alberta 2.2x Ottawa Manitoba Supply Ra
Slide 13: SmartStop's Expansion Beyond the GTA
SmartStop’s Expansion Beyond the GTA Current Owned and Managed Canadian Portfolio Outside of the GTA SmartStop’s expansion into British Columbia, Alberta and Quebec paves the way for growth outside of the GTA 2 One Managed Operating Property(1) One Owned Development Property(2) Map One Managed Opera
Slide 14: Case Study: Vaughan, Ontario
50 Cityview Blvd. Vaughan, Ontario(1) Case Study: Vaughan, Ontario Ground up four story development opened in February 2021 Built on a 1.6 acre lot adjacent to the SmartCentres Vaughan shopping center, The Home Depot and the Walmart Supercenter 880 climate controlled units Quickly gained occupancy g
Slide 15: Sophisticated Operating And Analytics Technology
Sophisticated Operating And Analytics Technology 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 implementati
Slide 16: Store Branding and Brand Awareness
Store Branding Brand Awareness Strong and Valuable Brand Identity 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 cus
Slide 17: Industry Leader In Customer Experience
Ability to search for and reserve units at one of SmartStop’s 180+ locations Integrated into revenue management system to update pricing and occupancy real time Online Reservations Industry Leader In Customer Experience Technology-driven platform gives SmartStop the ability to meet customers’ unique
Slide 18: External Growth: Investment Activity
External Growth: Investment Activity Note: All acquisition and development prices for SmartStop reflect the original purchase price executed by SmartStop, including Strategic Storage Growth Trust, Inc., Strategic Storage Trust IV, Inc., and Strategic Storage Growth Trust II, Inc.; Original purchase
Slide 19: Operations & Investment Update 1Q23 Highlights
2022 2022 2022 2022 2022 Operations & Investment Update 1Q23 Highlights Post Quarter-End Operational Updates YoY same-store results Revenues increased 8.9% Operating expenses increased 13.3% NOI increased 6.9%(1) Average physical occupancy decreased 190bps to 93.1% Annualized rent per occupied squar
Slide 20: Updated Net Asset Value Per Share
Updated Net Asset Value Per Share Declared Net Asset Value (“NAV”) of $15.21/share as of September 30, 2022 Represents an increase of approximately 1% from previous declared NAV as of June 30, 2021 Valuation range between $14.15 - $16.38 Independent, 3rd Party Valuation by Robert A. Stanger & Co, In
Slide 21: Investment Grade Rated Balance Sheet
Investment Grade Rated Balance Sheet BBB- Investment Grade Rating 3.6 Years Avg. Debt Maturity(1) 35.9% Leverage w/o Preferred(2) 92% Fixed Rate Debt(3) 5.8% Wtd. Avg. Interest Rate(4) 42.7% Leverage w/ Preferred(5) 1.9x Fixed Charge Coverage(6) Debt Private Placement $150M Debt Private Placement Ap
Slide 22: SmartStop Managed REIT Platform
Operational Properties NRSF Allocation SmartStop Managed REIT Platform (1) As of 3/31/23 (2) As of 5/21/23. Includes all rentable units and rentable square feet, consisting of storage units and parking units Strategic Storage Growth Trust III, Inc. $103M AUM Assets Under Management on a cost basis(1
Slide 23: Update To Share Redemption and Dividend Reinvestment
Update To Share Redemption and Dividend Reinvestment 6 In March 2022, the board of directors (“Board”) approved the suspension of our Share Redemption Program (“SRP”) and Distribution Reinvestment Plan (“DRP”) in connection with the process of reviewing alternatives to provide liquidity to stockhold
Slide 24: Experienced Senior Management Team
Experienced Senior Management Team SmartStop Executive Management Team SmartStop Team Highlights H. Michael Schwartz Chairman & Chief Executive Officer 19 Years of Storage Experience 19 Years at SmartStop and Affiliates Wayne Johnson President & CIO 37 Years of Storage Experience 17 Years at SmartSt
Slide 25: ESG Commitment: Solar Initiative
ESG Commitment: Solar Initiative (1) Includes wholly-owned, joint venture operating assets and assets owned by the Managed REITs as of 3/31/23. Western U.S. includes Arizona and California. Central U.S. includes Colorado, Illinois, Indiana, Michigan and Texas. Eastern U.S. includes Florida, Maryland
Slide 26: SmartStop Self Storage REIT, Inc.
al, SmartStop Self Storage REIT, Inc. .. The Smarter Way to Store!”
Slide 27: MSA Exposure – Same-Store
MSA Exposure – Same-Store Same-Store Portfolio at 3/31/23 Note: Data presented represents SmartStop’s existing owned same-store portfolio only MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolitan Area) as defined by Statistics Canada. RentPOF d
Slide 28: MSA Exposure – Total Portfolio
MSA Exposure – Total Portfolio Wholly-Owned Total Portfolio at 3/31/23 MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolitan Area) as defined by Statistics Canada. Other markets include: Baltimore, Charleston, Charlottesville, College Station, C
Slide 29: Reconciliation: Net Income (Loss) to Net Operating Income
Reconciliation: Net Income (Loss) to Net Operating Income
Slide 30: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) This represents the portion of the above stated adjustments in the calculations of FFO and FFO, as adjusted, that are attributable to our non-controlling interests. Includes all Class A Shares, Class T Shares and OP Units, as well as the dilutive effect on FFO an
Slide 31: Reconciliation: Net Income (Loss) to Adjusted EBITDA: Trailing 5 Quarters
Reconciliation: Net Income (Loss) to Adjusted EBITDA: Trailing 5 Quarters Tax related expense consists primarily of adjustments to deferred tax liabilities, state, federal, and Canadian income tax, as well as state franchise taxes. The contingent earnout adjustment represents the adjustment to the f
Slide 32: Additional Information Regarding FFO & FFO, as adjusted and NOI
Additional Information Regarding FFO & FFO, as adjusted and NOI 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
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