Cubesmart · NYSE:CUBE
Cubesmart — Q4 2023 Earnings Presentation
31 slides from Cubesmart's earnings presentation, Mar 1, 2024
Slide 1: Investor Presentation March 2024
March 2024 Investor Presentation CUBESMART’ self storage
Slide 2: Forward-looking statements
The forward-looking statements contained in this presentation are subject to various risks and known and unknown uncertainties. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that the Company'
Slide 3: Company at a glance
1. As of December 31, 2023 3. Market value of common equity and book value of debt as of December 31, 2023 2. Period ended December 31, 2023 4. Annual dividends declared for period ended December 31, 2023
Slide 4: Why CubeSmart?
Why CubeSmart? Well-diversified demand characteristics create strong industry fundamentals Industry-leading portfolio demographics and a conservative balance sheet produce stable cash flows throughout the entire cycle A company built to perform throughout all phases of the cycle Continuing to grow t
Slide 5: CubeSmart's History
CubeSmart’s History A history of executing on strategic objectives 2004 | U-Store-lt initial public 2012 Issued debut investment offering grade unsecured senior notes 2006 Arrival of current 2012 Won 1s*ISS industry management team award for Best Customer Service 2010 | Acquired United Stor-All to 2
Slide 6: Total shareholder return
1. For the periods ending December 31, 2023 2. Source: S&P Global Capital IQ, storage REITs straight average total return for CUBE, PSA and EXR
Slide 7: Cash Flow Stability
Cash Flow Stability National scale with a focused concentration in key markets National Scale Key Market Depth Customer Diversification CubeSmart operates in 178 A portfolio focused on With ~733k customers! across markets across 41 states ; coverage across all attractive the portfolio, our customer
Slide 8: Portfolio
1. For the twelve months ended December 31, 2023
Slide 9: Key markets
1. Source: Evercore ISI Research Report dated August 20, 2023 2. Total owned portfolio NOI for the three months ended December 31, 2023, market ranking by population per US Census Bureau
Slide 10: Industry demand and supply
1. Source: CubeSmart internal market research 3. Total portfolio NOI for the three months ended December 31, 2023 2. Source: 2023 Self-Storage Almanac
Slide 11: Focus on quality drives long-term shareholder value
Focus on quality drives long-term shareholder value Sophisticated, fully integrated platform focused on providing flexible and efficient service delivery to maximize property cash flows over the long term Disciplined investment strategy to grow our nationwide portfolio of best-in- class assets in co
Slide 12: Foundation of proprietary solutions creates flexibility
Portfolio | Balance Sheet | Company Foundation of proprietary solutions creates flexibility for the future Technological Platform Invest in foundational systems to provide scalability Customer Capture Attract the greatest share of demand across all channels through sophisticated strategies Dynamic P
Slide 13: Full year 2023 results
1. Data for full year ended December 31, 2023
Slide 14: Redefining the Customer Experience
Redefining the Customer Experience Meeting the changing needs of our customers Replicate the in-person experience across all customer touch points A fully-integrated experience where customers can seamlessly transition between various channels & platforms Provide optionality to meet the customer in
Slide 15: External Growth Strategy
Platform | Portfolio | Balance Sheet | Company External Growth Strategy Enhancing our portfolio through strategic external growth opportunities High-Quality Acquisitions Development & Lease-Up Value-Add Joint Ventures Third-Party Management Target acquisitions of well Build and acquire purpose- Gene
Slide 16: Robust Portfolio Growth
Platform | Portfolio | Balance Sheet | Company Robust Portfolio Growth Strategically increase the scale of the platform 1600 1400 1200 1000 800 60 S 460 401 S 20 S ° 1,406 2010, 2011-2012) 2013, 2014 =. 2015 m™ Wholly-Owned 2016 = =2017 = 2018 m Joint Venture Managed 2020 2021 2022 2023 Multi-Facete
Slide 17: Acquisitions
Platform | Portfolio | Balance Sheet | Company Acquisitions Disciplined investment strategy to prudently build our portfolio Strong Demographics Focus on submarkets with attractive demographics for strong long-term demand characteristics Complement Existing Portfolio Continue to identify opportuniti
Slide 18: Development
1. Development deliveries as of December 31, 2023 (does not include C/O acquisitions) 2. As of December 31, 2023
Slide 19: Third-party management and joint ventures
1. As of December 31, 2023. Excludes two unconsolidated joint ventures acquired as a part of the Storage West transaction
Slide 20: Balance sheet
1. As of December 31, 2023 2. For the year ended December 31, 2023
Slide 21: Unsecured and secured debt
Unsecured Debt Secured Debt 1. Source: Company Filings, as of December 31 of each stated year 2. Calculated as annual EBITDA / Interest Expense
Slide 22: Capital structure
• • • • • • • • • 1. As of December 31, 2023
Slide 23: Management team
1. Represents averages for CubeSmart Senior Management
Slide 24: Same-store expense growth
1. One-, two- and three year average annual same-store expense growth as reported for years ending December 31, 2023, 2022, and 2021 2. One-, two- and three year average annual same-store expense growth as reported by EXR, PSA and NSA for years ending December 31, 2023, 2022, and 2021
Slide 25: Funds From Operations Growth
Platform | Portfolio | Balance Sheet | Company Funds From Operations Growth Long-term growth in portfolio cash flows FFO, as adjusted per share $1.50 $1.00 $0.50 $0.00 +195% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 25
Slide 26: Sharing Cash Flow Growth
Platform | Portfolio | Balance Sheet | Company Sharing Cash Flow Growth Consistent history of dividend increases to return capital to investors Annual Dividend per Share $2.50 $2.00 $1.50 $1.00 $0.50 +330% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 26
Slide 27: Total shareholder return versus peers
1 1. Market cap weighted total shareholder return for PSA and EXR as of December 31, 2023
Slide 28: Environmental highlights
1. Reduction against 2019 baseline. Like-for-like defined as the set of stores owned for the entirety of the period January 1, 2019 through December 31, 2022 2. As of December 31, 2022
Slide 29: Social Highlights
Company Social Highlights Investing in our team and communities We value our teammates’ engagement. In 2023, our annual Teammate Engagement Survey had an 92% response rate. Our goal is to help our teammates grow with our company. Last year 350 teammates were promoted into new roles. We supported thi
Slide 30: Strong Corporate Governance
Platform | Portfolio | Balance Sheet | Company Strong Corporate Governance Supporting the long-term interest of all shareholders Board Practices Shareholder Rights = Separate Board Chair & Chief Executive Officer = Annual election of Trustees = Regular executive sessions of independent Trustees = An
Slide 31: Same-store pool results and 2024 outlook
\ 1. Results for the 2024 Same-Store pool 2. 2023 Same-Store pool results for the year ended December 31, 2023