Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (November 2019)
29 slides from Cubesmart's investor presentation, Nov 12, 2019
Slide 1: November 2019 Investor Presentation
November 201 9 Investor Pr e s e n t a t i on
Slide 2: Safe Harbor Statement
N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n 2 S af e H ar bo r S t at e m e n t T h e f o rw ard - look i n g s t a t e m e n t s co n t a i n e d in th i s p r ese n t a t i o n a r e su b je c t to va r i o u s r i s k s an d k no w n a n d u nk no w n u nce rt a i nt i e s . A l th
Slide 3: Introduction to CubeSmart
3 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n 1. As o f S ep t e m be r 30, 2019 I n t r o d u c t i o n t o C u b e S m a rt 1 , 1 71 P r o pertie s 1 $ 8 . 6 B i ll i o n Mar k e t C ap 2 1 0 7 % 5 - y e a r t o t a l s h a r e h o l d e r r etu r n 4 1 6 5 % 5 - y e a r D i v i d e
Slide 4: CubeSmart: It's what's inside that counts
C ub e S mart : It ’ s w h a t ’ s i n s i d e th a t c o u n t s . S o p h i s t i c a te d O p e r a t i n g P l a tf o r m M ax imi z i n g p r o p e r ty c a s h f l o w s to g ene r a t e l o n g - t e r m v a l u e t h r o u g h a c o n ti nu a l l y e v o l v i n g m a r k e ti n g , r e v en
Slide 5: Sophisticated Operating Platform
S o ph i s t i c a t e d O pe r a t i n g P l a t fo r m I n t eg r a t e d s t r a t e gy t o m a x i m i ze c u s t om e r ac q ui s i t i on a nd r e t e nt i on C u s t o m e r V a l u e M a x i m iz a t i o n M a r k e ti n g 5 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n C o n t
Slide 6: Refined Customer Acquisition Strategy
Re f i n ed C u s t o m e r A c q u i s i t i o n S t r a te g y S o p h i s t i c a t e d O p e r a t i n g P l a t f o r m I n t eg r a t e d a pp r oa c h ac r o s s a l l c ha nn e l s d r i v e s c u s t om e r s t h r oug h t he f unn e l It ’ s wh at ’ s ins i d e tha t c o u n t s . M a xi m
Slide 7: Demand Forecast / Revenue Optimization
D e m a n d Fo r e c a s t / R e v e nu e O p timi z a t i o n Pr i c e o p t i m i z ati o n r e q u i r es c o n s i d e r at i o n o f a m u l t i - d i m e n s i o n a l d e m a n d l a n ds c ap e & e v e r - c han g i n g c a p a c i t y c o n str a i n t s B a l a n ce b e t w ee n P r i c i
Slide 8: Proprietary Systems Drive Results
P r o p r i e t a r y S y s t e m s Dr i v e R e su l t s S o p h i s t i c a t e d O p e r a t i n g P l a t f o r m C om p l e x a l g o r i t hm s c on s i d e r m a ny f ac t or s t o m a x i m i ze r e v e nue f r om e v e r y c ub e • C o m p e titi o n • S e as o n a l i t y • S u pp l y C o
Slide 9: Single Sonia, Enterprising Erik, Downsizing Dave
S in gl e Soni a “ As a s i n g l e w o man , s afe t y is c r iti c al t o m e . I d o n ’ t wa nt to n a v i g a te lo n g , d a r k h a ll wa y s b y m y se l f . I n ee d br i ght l i g h t s , o pen a r e a s , a n d a b ov e a ll , I n ee d t o f eel s a f e . ” E n t e r p r i s in g Er i k “
Slide 10: Redefining Service in the Self-Storage Industry
R e d efi n i n g S e r vi c e i n t h e S e l f - S t o r a ge I n d us t r y S i n c e 2 0 1 2 , C u b eS m a r t h a s b een r ep ea t ed ly h o no r e d f o r o u tst a n d i ng a c h i e v e m e n t s , i ncl u d i n g : 5 - t i m e w in ne r o f I n s i d e S e l f - S t o r a g e , B e s t o
Slide 11: Third-Party Owners Continually Choose CubeSmart
T h i r d - P a r t y O wn e r s C on t i nu a l l y C h oos e C u b e S m a rt O w n e r s r e p e a t e d l y t r u s t th e ir in v e s tm e n ts t o th e C u b e S ma r t p l a t f o r m S o p h i s t i c a t e d O p e r a t i n g P l a t f o r m “ C ube S m a r t ’ s n a t i o n al p r e s e n
Slide 12: Building a Mutually Beneficial Partnership
B ui l d i n g a Mu t ual l y Be n e f ic i a l P a r t n e r s h i p W e t r e a t T h i r d - P a r ty Ma n a ge m e n t a s a t r u e p a r tn e r s h ip w ith p r o p e r ty o w n e r s S o p h i s t i c a t e d O p e r a t i n g P l a t f o r m 12 N o v em b er 2 0 19 I n v e s t o r Pr e s en
Slide 13: National Platform with a Focus in Core Markets
13 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n N a t i o n a l P lat fo r m w i th a F o c u s i n C o r e Ma r k e t s Hi g h - Q u a li t y P o r t f o li o O w n e d an d M an a g e d O w n e d O n ly M an a g e d O n l y T o p 12 M ark et O w n e d : 5 1 9 M a n age d : 6 5 2 T o
Slide 14: Enhancing a high-quality portfolio with a focus on top-25 MSAs
1 4 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n E nha nc i n g a hi g h - q ua l i t y p o r t fo l i o wi t h a f oc us on t o p - 25 M S A s I n d u s t ry - L e a d i n g P o r t fo l i o Hi g h - Q u a li t y P o r t f o li o C o n t i nu e d f ocu s on e n h a nc i ng ou r p r e
Slide 15: New York City Market Leader
15 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n N e w Y o r k C i ty M a r k e t L e a de r Hi g h - Q u a li t y P o r t f o li o L e a d i ng op e r a t or of hi g h - q u a l i ty s t o r e s in th is p r e mi e r ma r k e t M a r k e t D y nam i c s Le ad i n g S el f - S t or a g
Slide 16: Enhancing the Portfolio with New Properties
16 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n E n h a n c i n g the P o r t fo l i o w i th N e w P r o p e r t i e s Hi g h - Q u a li t y P o r t f o li o A dd i ng v a l ue t h r oug h t he d e v e l o p m e nt of p u r p o s e - bu i lt , cla s s A s t o r e s $ 1 6 8 . 0 M T o t
Slide 17: Investment in our Existing Portfolio
17 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n C on t i nu e d I n v e s t m e n t i n ou r E x i s t i n g P or t f o l i o Hi g h - Q u a li t y P o r t f o li o A ddi n g m e a n i n gf u l v a l u e t o e xi s t i n g s t o r e s t h r o u gh c a pi t a l p r o j e ct s a n d u pg
Slide 18: Extensive Access to Capital
18 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n E xt e n s i v e A c c e s s t o C a p i t a l A cc e s s t o t he f u l l s p e c t r um of c a p i t a l s ou r c e s t o m ee t ob l i g a t i ons a nd f und g r o wt h D is ci p li n e d C a p it a l A ll o c a ti o n D e m o nst r a
Slide 19: Investment-Grade Balance Sheet
19 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n Baa2 ( S t a b l e) BBB ( S t a b l e) I n v e s t m e n t - G r a d e Bala n c e S h ee t C o n s e r v a t i v e ba lan c e s h ee t bu i lds s t a bi li t y a n d f l e xi bi li t y D is ci p li n e d C a p it a l A ll o c a ti o n 1 1
Slide 20: Funds From Operations Growth & Dividend Growth
2 0 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n F un d s F r o m O p e r a t i on s G r o w t h & D i v i d e n d G r o w t h G r o wi ng F F O ha s ge n e r a t e d m e a ni ng f u l i nc r e a s e s i n d i s t r i b ut i ons D is ci p li n e d C a p it a l A ll o c a ti o n + 22 .
Slide 21: Environmental Initiatives
E n v i r o n m e n t a l I n i t i a t i v es F oc us on r e d uc i ng t he a l r e a d y l o w i m p ac t of our s t or a ge po r t f o li o H ig h E ff i c i en c y L igh t R e t r o f it Si n ce 2015, C ub eSmart h as c om p l e t e d li g h ti n g re t r o f its a t 134 st o r e s in 17 stat e
Slide 22: Corporate Governance & Board Composition
C or p o r a t e G o v e rn a nc e & B oa r d C om p os i t i on S t r o n g , i n d ep e n d e n t l e ad er s h i p t o o v er s e e s t r a t eg i c e x e c u t i o n Dee p , R e l e v a n t E x p e r i e nce » R ea l E stat e L a w » R ea l E stat e D e v elo p me n t » R e al E stat e M a n a g
Slide 23: Current Operating Environment
C u r r e n t O p e r a t i n g E n v i r on m e nt S e lf - s t or a ge c ont i nu e s t o b e a n a tt r ac t i v e s e c t or S tead y C a s h F l o w G r o w th R e v enu e a n d c a s h f l o w s c o n ti nu e to g r o w d e s p i t e i n t r o d u c ti o n o f n e w s u p p l y i n m a n y m a
Slide 24: Generating Outsized Results
2 4 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n G e n e r a t i n g O u t s i z e d R e su l t s S o p h i s ti c a t e d p l a t f o r m ma x im i z e s p e r f o r ma n c e C u r r e n t O p e r a ti n g E n v i r o n m e nt C onst a n t l y e v o l v in g m a r k e t ing tec h n i
Slide 25: Recent Highlights
2 5 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n Re c e n t H i g h l i g ht s E x e c u tin g o n s t r a t eg ic o b j e c ti v e s C u r r e n t O p e r a ti n g E n v i r o n m e nt N OI R e v e nue E x p e n s e s N O I M a rg i n + 1 . 3 % + 2 . 0% + 3 . 8 % 7 0 . 6 % 2 0 1 9 Y T
Slide 26: CubeSmart: It's what's inside that counts
C ub e S mart : It ’ s w h a t ’ s i n s i d e th a t c o u n t s . S o p h i s t i c a te d O p e r a t i n g P l a tf o r m M ax imi z i n g p r o p e r ty c a s h f l o w s to g ene r a t e l o n g - t e r m v a l u e t h r o u g h a c o n ti nu a l l y e v o l v i n g m a r k e ti n g , r e v en
Slide 27: Historical Company Data
H i s t o r i c a l C o m p a n y D ata 1. P er f or m anc e a s repor t e d f o r t h e sa m e - s t or e poo l a s i t w a s cons t i t u t e d a t t h e en d o f t h e respec t iv e yea r 2. Y ear - endin g value s a s de t aile d i n C o m pany 's supp l e m en t a l pac k a g e s 3. C alcula t
Slide 28: Additional Information
A d d i t i o n a l I n fo r m a t i o n ▪ C o rp o r a t e R e s po n s i b il i t y ww w . c u b e s m a r t . c o m / a b o u t - u s / c o r p o r a t e - r e s p o n s i b i l i ty ▪ S u ppl e m e n t a l F i n a n c i a l In f o r m a t i o n h t t p : / / i n v e s t ors . c u b e s m a r t .
Slide 29: Contact Info
C o nt a ct I n f o C h a r l e s P l a c e D i r e c to r , I n v e s to r R e l ati o n s E m a i l : c p l ac e @ c u b es m a r t . c o m T e l e p h o n e O ff i c e P h o ne : 610 . 535 . 5700 C o n t a ct U s 29 N o v em b er 2 0 19 I n v e s t o r Pr e s en t a t i o n