Slide 1: Investor Presentation June 2013
Date Investor Presentation June 2013
Slide 2: Forward-looking statements
2 The forward-looking statements contained in this presentation are subject to various risks and uncertainties. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be ach
Slide 3: Self-storage REIT with expansive national platform
Wayne, PA 3 Owned Managed Self-storage REIT with expansive national platform Property count as of March 31, 2013. As of March 31, 2013. Market value of common equity. Book value of preferred equity and debt. 377 517 140 Facilities1 Owned Managed Headquarters $3.2 billion Total Market Cap2
Slide 4: Attractive industry with favorable economic characteristics
4 Broad tenant diversification Demand driven by mobility, life change Opportunity for consolidation Unsophisticated competition High operating margins Low cap-ex requirements Attractive industry with favorable economic characteristics Limited new supply REIT market share gains Positive Trends Strong
Slide 5: A balanced and disciplined approach
5 A balanced and disciplined approach Maximize portfolio value through continued focus on customer service and operational advancement Continue to prudently build a portfolio of high-quality assets, with focused exposure in core markets Maintain investment grade balance sheet that affords broad acce
Slide 6: Executing on strategic objectives
6 Executing on strategic objectives Same-Store Results: NOI1 +6.0% Revenue +3.8% Expenses -0.1% $442.7 million in acquisitions $250 million debut public unsecured bond offering 29% growth in third-party management program $60.0 million in dispositions $102 million in “at-the-market” equity offering
Slide 7: Accelerating occupancy gains
7 Accelerating occupancy gains +550 bps 1) Period end occupancy for the current same-store pool, as constituted on March 31, 2013. 2) Prior year occupancies reflect those of the 2012 same-store pool, as constituted on December 31, 2012. Occupancy gaps for periods prior to 1Q13 reflect those of the 2
Slide 8: Continuation of recent operational strength
Continuation of recent operational strength Full-Year Guidance1 $0.81 to $0.86 FFO2 per Share 5.75% to 6.75% NOI Growth 5.5% to 6.0% Revenue Growth 4.0% to 5.0% Expense Growth Same-Store Guidance Components: Represents 13% annual growth at the midpoint Acceleration from 3.8% in 2012 Fueled by occupa
Slide 9: Redefining service in the self-storage industry
9 Winner of 3 Gold Stevie® Awards Contact Center of the Year Innovation in Customer Service Customer Service Department of the Year Winner of Inside Self-Storage 2012 Best of Business Award Best Customer Service Redefining service in the self-storage industry
Slide 10: A streamlined customer experience
ROSCOE Real-Time Reporting eCRM Relationship Management CubeSmart.com Targeted At-Home Experience 10 Proprietary systems optimize the speed and efficiency of execution Ability to anticipate & react to changing needs, conditions Lazarus Organizational & Revenue Management Unified Data Warehouse INFO
Slide 11: Understanding, targeting, attracting, and engaging our customers
11 Understanding, targeting, attracting, and engaging our customers Customer Capture Conversion
Slide 12: Significant evolution over past five years
12 Significant evolution over past five years Note: Bubbles sized by revenue. (1) Realized annual rent per occupied square foot is computed by dividing rental income by the weighted occupied sq ft for the period. Evolution Total Portfolio January 2008 Total Portfolio December 2012 Acquisitions 2008-
Slide 13: Focus on building depth in attractive, high-barrier-to-entry markets
Acquisitions1 13 Focus on building depth in attractive, high-barrier-to-entry markets 5-Year Investment Activity $992 million 77 Stores 1) Transactions from 2008 through 2012. Dispositions1 $294 million 103 Stores
Slide 14: Core markets represent 62% of portfolio NOI
14 Core markets represent 62% of portfolio NOI1 Same-store assets2 represent 81% of portfolio NOI1 1) First quarter 2013 net operating income. 2) 2013 same-store pool. On January 1, 2013, added 20 stores to the same-store portfolio, including 8 from the Storage Deluxe transaction During 1Q13, sold 5
Slide 15: Objective of funding growth in manner that maintains or improves metrics
15 Objective of funding growth in manner that maintains or improves metrics Investment Grade Rating As of March 31, 2013 Conservative Metrics 41% Debt / Gross Assets 44% Debt + Preferred / Gross Assets 6.3x Debt / EBITDA 6.8x Debt + Preferred / EBITDA 9% Secured Debt / Gross Assets As of March 31, 2
Slide 16: Capital structure affords access to full spectrum of capital sources
16 Capital structure affords access to full spectrum of capital sources Capital Structure As of March 31, 2013 Common Equity 66% Preferred Equity 3% Unsecured Bank Debt 16% Secured Debt 7% Public Unsecured Debt 8% % of Total Market Capitalization 1 Market value of common equity. Book value of prefer
Slide 17: Summary of growth drivers
Limited new supply, a widening competitive divide between large and small operators, and continuing industry consolidation Accelerating organic growth fueled by a focus on customer service and continued enhancement of operational infrastructure Meaningful external growth through a disciplined invest
Slide 18: Investor Relations Contact
Date Investor Relations Contact Daniel Ruble, CFA Vice President, Finance 460 E. Swedesford Rd. Suite 3000 Wayne, PA 19087 610.293.5700 druble@cubesmart.com