Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (November 2021)
30 slides from Cubesmart's investor presentation, November 2021
Slide 1: November 2021
November 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 assur
Slide 3: CubeSmart at a glance
1. As of September 30, 2021 3. Period ending December 31, 2020 2. Market value of common equity and book value of debt as of September 30, 2021 4. Annual dividends declared in period ending December 31, 2020
Slide 4: Arrival of current management team
Moved Received Grew the portfolio by over Arrival of current headquarters to Rebranded Investment Grade $2.5 billion through management suburban company as credit rating from acquisitions and team Philadelphia CubeSmart Moody’s and S&P developments Acquired United Acquired 22 Began capital Stor-All
Slide 5: Value Creation Strategy
Value Creation Strategy Generate sustainable growth to maximize long-term shareholder value Building an industry leading platform to generate outsized growth from our high quality portfolio, maximizing long-term shareholder value 5| CuBESMART’ ram eo E> Attractive Industry Experienced Management Tea
Slide 6: Self-storage has been a top performing REIT sector through all phases of the economic cycle
Self-storage has been a top performing REIT sector through all phases of the economic cycle with 10-year returns averaging 17%1 Most diverse customer base of any REIT sector, averaging over 650 customers per store Month-to-month rentals allow for rapid repricing in response to changing economic cond
Slide 7: Attractive fundamentals have driven continued evolution of the industry
Attractive fundamentals have driven continued evolution of the industry New ? Supply Sang historical returns have led to increased Continued growth in awareness & utilization new development across many core markets has increased demand for the product Favorable returns have been driving private Sop
Slide 8: Experienced management team
• Chris has been CEO of CubeSmart since January 2014 • Currently the longest-tenured CEO in the sector • Joined the company in 2006, and previously served as Chief Operating Officer, Chief Investment Officer, and Chief Financial Officer • Currently serves on the board of NAREIT • Tim has been CFO of
Slide 9: Execution on our core operations has driven strong organic growth
• Execution on our core operations has driven strong organic growth • We continue to grow the portfolio through all available avenues to maximize risk-adjusted returns for shareholders, including meaningful cash flow growth
Slide 10: Attracting the greatest share of potential demand
Attracting the Proprietary Building a Award-winning greatest share of systems and foundation of customer service potential demand processes to proprietary platform delivers through dynamically solutions to an unparalleled continually generate pricing improve experience evolving digital decisions in
Slide 11: Sophisticated operating platform
• SEO-focused content creation • Website A/B Testing • Optimized customer rate • Targeted local marketing efforts • Conversion funnel analysis and increase model • Exploratory marketing channels optimization by a team of data • Award winning customer service • Sophisticated brand scientists • Intern
Slide 12: Digital customer tools: online rental and mobile app
Launched: April 2020 Launched: September 2020 • Ability to rent online from any web-enabled device • Rent a cube and find new locations, contact-free • Customers can reserve their unit, sign a lease, pay & • Access personal gate codes move in without interaction with CubeSmart • Pay bills & set up a
Slide 13: Performance versus peers
1. Reported average full-year metrics for the other three largest publicly-traded storage REITs by market cap from January 1, 2016 through December 31, 2020
Slide 14: Portfolio footprint by market
Boston 3% NY/NJ/LI Chicago 19% Staten Island 7% Phila. 0.4% 3% Wash DC Queens 7% 3% North NJ 4% Brooklyn Long Island 3% 2% LA So. CA Westchester 2% 3% Bronx 2% Atlanta 5% Phoenix 3% 3% Dallas 6% States with Owned Stores Houston 2% States with Managed Stores Only Miami 9% 1. During the quarter ended
Slide 15: Industry research and market data
1. Source: Evercore ISI Research Report dated March 9, 2021 2. Source: Evercore ISI Research Report dated May 27, 2020
Slide 16: High population density creates a strong demand profile around our stores
High population density Renters boost demand NYC square foot per creates a strong as they are 3.9x more capita is substantially demand profile around likely to move than lower than the industry our stores homeowners average 11 1 2 00 1. Source: CubeSmart 3-mile portfolio demographics 2. CubeSmart in
Slide 17: New York City zoning and abatement constraints on new supply
• In 2017, NYC passed a zoning amendment that required a special permit for self-storage to be built in the Industrial Business Zones (IBZs) • The IBZs reduced the land that was previously zoned by- right for storage by 49%1 • NYC recently excluded all self-storage development from eligibility under
Slide 18: Focus on markets with strong demographics to drive long-term value
Focus on markets with strong demographics to drive long- term value Build and acquire Class-A properties in core infill locations by leveraging local developer expertise Invest with partners to expand national footprint and improve returns for lease-up opportunities Expand scale of platform, generat
Slide 19: Development projects
1 Our development projects are 12 Projects 3 Projects 3 Projects 2 Projects projected to create over $400 million in value at stabilization2 2 Projects 2 Projects 1 Project 2 Projects 1. As of September 30, 2021 3. Other markets include San Diego, CA and Philadelphia, PA 2. Proforma based on stabili
Slide 20: Joint venture investments
Strong returns through levered structures and promotes Opportunity to purchase assets at the end of the hold period Fee revenue increases our return profile Market and cash flow diversification Mitigates dilution of lease- up properties 35 properties 28 properties 13 properties 14 properties 4 prope
Slide 21: Third-party management platform
CubeSmart management has grown to the second largest stores on the national management platform4 as we continue to expand platform1 our national footprint and brand while increasing efficiency Fees from the management business contribute management meaningfully to FFO growth fees2 acquisitions The m
Slide 22: Investment grade balance sheet
“CubeSmart’s Baa2 senior unsecured rating reflects the REIT’s good financial flexibility and modest use of leverage.” - Moody’s Investors Service 1. Source: Company Filings, as of December 31 of each stated year 2. Calculated as annual EBITDA / Interest Expense
Slide 23: Ample liquidity to manage near-term capital needs
Ample liquidity to manage near-term capital needs Proven ability to access a variety of sources of Capital Needs: $34.1M through 2022 capital, raising $4.6 billion since 2010 • $34.1M of remaining development commitments1 • Common Equity: raised $1.7 billion in net proceeds Existing Sources of Capit
Slide 24: Environmental initiatives
Since 2015, CubeSmart has completed Since 2010, CubeSmart has installed 86 lighting retrofits at 257 owned stores in energy management systems at owned 21 states and DC. Last year we upgraded stores to monitor and automate a store’s over 4,000 lighting fixtures saving an interior temperature and tim
Slide 25: Engaging with our customers, teammates and communities
Engaging with our customers, teammates and communities Charitable Donations 2 Investments in Our Teammates Establishment of programs designed to increase Teammate engagement, recognition and development Match employee contributions to charitable organizations through our Gift Matching Program Soe Cu
Slide 26: Governance
• Annual election of trustees • Separate position of Board • Share ownership guidelines for • Annual say-on-pay votes Chair & Chief Executive executive officers and trustees • Single voting class of stock Officer • Anti-hedging & anti-pledging • Shareholder right to call special • Regular executive
Slide 27: Year-to-date results
1. Same-store results for the nine months ending September 30, 2021 3. Year to date through November 4, 2021 2. For the nine months ending September 30, 2021
Slide 28: Investment summary
Maximizing property cash flows to generate long-term value through a continually evolving marketing, revenue management, and customer service platform An investment-grade balance sheet provides the strength and flexibility to access the full array of capital sources to finance growth opportunities P
Slide 29: Historical operating metrics
Revenue Growth 0.3% 3.6% 3.8% 7.4% 7.2% 7.3% 7.0% 4.4% 3.3% 1.9% 0.8% NOI Growth 1.0% 5.7% 6.0% 9.3% 9.6% 9.6% 10.2% 5.1% 3.3% 1.1% 0.1% YOY Occupancy Growth (BPS) 0.6% 2.0% 3.4% 5.3% 2.6% 1.5% 0.8% 0.2% (0.2%) 0.0% 2.2% Annual Avg. Occupancy 76.8% 78.8% 82.6% 88.4% 90.8% 92.3% 92.9% 93.1% 92.7% 92.
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