Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (September 2022)
28 slides from Cubesmart's investor presentation, Sep 13, 2022
Slide 1: September 2022 Investor Presentation
September 2022InvestorPresentation
Slide 2: Safe Harbor Statement; Use of Non-GAAP Financial Measures
Safe Harbor StatementTheforward-lookingstatementscontainedinthispresentationaresubjecttovariousrisksandknownandunknownuncertainties.AlthoughtheCompanybelievestheexpectationsreflectedinsuchforward-lookingstatementsarebasedonreasonableassumptions,therecanbenoassurancethattheCompany’sexpectationswillbe
Slide 3: Introduction to CubeSmart
Introduction to CubeSmartA high-quality portfolio in an attractive industry with proven returns 1,289Properties1 $12.8 BillionMarket Cap3 159%5-year total shareholder return2 61%5-year Dividend Growth4 47%5-year Growth in FFO per Share, as Adjusted2 Baa2/BBB Rating $3.0 Billion5-year acquisition vol
Slide 4: Why CubeSmart?
Why CubeSmart?A company built to perform throughout all phases of the cycle Attractive IndustryWell-diversified demand characteristics create strong industry fundamentalsCash Flow StabilityIndustry-leading portfolio demographics and a conservative balance sheet produce stable cash flows throughout t
Slide 5: CubeSmart's History
CubeSmart’sHistoryA history of executing on strategic objectives 20042006 2010 2011 2011 U-Store-It initial public offeringArrival of current management teamAcquired United Stor-All to establish the third-party management platformRebranded the company as CubeSmart Won 1stISS industry award for Best
Slide 6: Attractive Industry
0%100%200%300%400% 500%600%700%800%Dec-11Dec-12Dec-13Dec-14Dec-15Dec-16Dec-17Dec-18Dec-19Dec-20Dec-21Self-Storage REIT Average Total Return Attractive IndustryStrong sector fundamentals generate outsized long-term returns Dynamic DemandWide range of needs drives demand for the product throughout all
Slide 7: Cash Flow Stability
Cash Flow StabilityNational scale with a focused concentration in key marketsNational ScaleCubeSmart operates in 155 markets across 39 states and the District of Columbia1, providing diversification throughout the countryKey Market DepthA portfolio focused on coverage across all attractive submarket
Slide 8: Diversified Portfolio in Quality Markets
Diversified Portfolio in Quality MarketsNational platform with a focus in core markets to drive long-term value States with Managed Stores Only States with Owned StoresFocus on Top Markets89% of owned store NOI comes from top-40 MSAs1Portfolio ExposureExposure to secondary and tertiary markets throu
Slide 9: Quality Market Focus Generates Long-Term Value
Top 10 MSAs MSAs 11-25 MSAs 26-40 MSAs 41+Quality Market Focus Generates Long-Term Value59%19%11%11%Property NOI by Market2Strong Demographics A strategic focus on submarkets with attractive demographics for stable long-term demand trendsMature MarketsLarger, stable markets should experience less vo
Slide 10: Market Leader in New York City
Market Leader in New York CityLowest Supplied MarketSupply across the three key outer boroughs is 2.7 SF per capita1, the lowest nationally and less than half the national average of 6.2 SF per capita2. Future supply will be limited due to recent legislative changes removing self-storage eligibility
Slide 11: Value Creation Strategy: Focus on Quality
Quality PlatformSophisticated, fully integrated platform focused on providing flexible and efficient service delivery to maximize property cash flows over the long termQuality CompanyContinued focus on corporate responsibility and risk management to ensure sustainable long-term growthQuality Balance
Slide 12: Operating Platform
Operating PlatformFoundation of proprietary solutions creates flexibility for the futureTechnological PlatformInvest in foundational systems to provide scalabilityCustomer CaptureAttract the greatest share of demand across all channels through sophisticated strategiesDynamic PricingMaximize revenue
Slide 13: The Customer Journey
The Customer JourneyExisting CustomerRentalReservationOptimizing the PlatformPaid SearchBid on ~2+ million keywords Brand MarketingFurther build brand awareness, making CUBE an operator of choice Social MediaInnovative tactics to reach prospective customers WebsiteInteract with 13.5 million visitors
Slide 14: Redefining the Customer Experience
Redefining the Customer ExperienceMeeting the changing needs of our customersLeveraging Digital PlatformsReplicate the in-person experience across all customer touch pointsOmni-Channel ExperienceA fully integrated experience where customers can seamlessly transition between various channels & platfo
Slide 15: External Growth Strategy
External Growth StrategyEnhancing our portfolio through strategic external growth opportunities High-Quality AcquisitionsTarget acquisitions of well positioned, quality assets in markets with strong demographics and demand trendsDevelopment & Lease-UpBuild and acquire purpose- built properties in to
Slide 16: Robust Portfolio Growth
0200 400 600 8001000 1200 14002010201120122013201420152016201720182019202020212022 Wholly-Owned Joint Venture Managed Robust Portfolio GrowthStrategically increase the scale of the platform Multi-Faceted Growth StrategyContinue to utilize wide variety of avenues to grow the portfolioBrand AwarenessS
Slide 17: Acquisitions
AcquisitionsDisciplined investment strategy to prudently build our portfolio83%of acquisitions since 2010 in top 25 MSAs$1.5Bof acquisitions from third-party management1Strong Demographics Focus on submarkets with attractive demographics for strong long-term demand characteristicsComplement Existing
Slide 18: Development
DevelopmentStrategic partnerships drive additional long-term value to our shareholdersPartner with Local DevelopersPartner with developers that have local market expertise and can source high-quality sitesFocus on Top MarketsTargeted projects in high-quality markets that generate attractive long-ter
Slide 19: Joint Venture Advantages
Joint Venture AdvantagesStrategic investment with joint venture partners adds value to our portfolio 5different ventures189total properties1Strong ReturnsFee revenue and promoted interests increase our return profile for transactionsDiversification Further diversifying cash flow and exposure to mark
Slide 20: Third-Party Management
Third-Party Management Mutually beneficial relationships drive additional long-term value to our shareholders 680properties1200+ partnerships1$31Mmanagement fee income2ProfitabilityCreate additional revenue streams for our shareholders through management and other feesScaleContinue expanding our nat
Slide 21: Financial Strength
Financial StrengthEnsuring stability while funding growthContinue to operate with credit metrics at the conservative end of our investment grade rating, ensuring access to a variety of attractively-priced capital Net Debt to EBITDA1: 5.4xEBITDA Coverage1,2: 6.7xDebt to Gross Assets1: 41.2% 1.Source:
Slide 22: Liquidity and Access to Capital
Liquidity and Access to CapitalAccess to the full range of capital sources to fund commitments Capital Needs & LiquidityAmple liquidity to manage near-term capital needsCapital Needs: $71.5M through 20231•$40.3M of remaining development commitments•$31.2Mof debt maturities Existing Sources of Capita
Slide 23: Funds from Operations, as Adjusted; Experienced Management
00.511.522.520112012201320142015201620172018201920202021Funds from Operations, as Adjusted Experienced ManagementLengthy track record of experience through all phases of the cycle20 years in self storage14 yearswith CubeSmart21 years at publicly-traded REITS Named Executive Officers1+225%Platform |
Slide 24: Sharing Cash Flow Growth
$- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.0020122013201420152016201720182019202020212022Annual Dividend per ShareSharing Cash Flow GrowthConsistent history of dividend increases to return capital to investors +391%Platform | Portfolio | Balance Sheet| Company24 11.Annualized assumi
Slide 25: Environmental Highlights
Environmental HighlightsMinimizing our environmental impact for long-term sustainability Environmental TargetsEstablished targets to reduce consumption and greenhouse gas emissions.Through 2021, we made significant progress against these targets with a 19.2% like-for-like reduction in Scope 1 & 2 GH
Slide 26: Social Highlights
Social HighlightsInvesting in our team and communities Engagement & DevelopmentWe value our teammates’ engagement. In 2021, our annual Teammate Engagement Survey had a 91% response rate. Our goal is to help our teammates grow with our company. Last year over 390 teammates were promoted into new role
Slide 27: Strong Corporate Governance
Strong Corporate GovernanceSupporting the long-term interest of all shareholdersShareholder RightsAnnual election of TrusteesAnnual say-on-pay votesSingle voting class of stockShareholder right to call special meetingHighest governance rating among our peers (per ISS)Board PracticesSeparate Bo
Slide 28: Operational Performance
Operational PerformanceStrong fundamentals provide strong outlook for future growth 88.0%90.0% 92.0% 94.0% 96.0% 98.0%JanFebMarAprMayJunJulAugSepOctNovDecSame-Store Occupancy 2020 2021 2022 - 5,000 10,000 15,000 20,000 25,000JanFebMarAprMayJunJulAugSepOctNovDecSame-Store Rentals 2021 2022 - 5,000 10