Smartstop Self Storage Reit, Inc. · NYSE:SMA
Smartstop Self Storage Reit — Investor Presentation (June 2024)
37 slides from Smartstop Self Storage Reit's investor presentation, Jun 3, 2024
Slide 1: June 2024 Investor Presentation
June 2024 Investor Presentation Exhibit 99.1
Slide 2: Forward-looking statements
Certain of the matters discussed in this investor presentation constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be identified by our use of forward-looking ter
Slide 3: SmartStop is a Leading, Growth-Oriented Self Storage Platform
SmartStop is a Leading, Growth-Oriented Self Storage Platform Smartstop overview SmartStop Self Storage REIT, Inc. (“SmartStop” or the “Company”) is a premier self storage owner and operator that maintains a high-quality and diversified portfolio across the United States and Canada BBB- Investment G
Slide 4: Successful Track Record of Growing the SmartStop Platform
Successful Track Record of Growing the SmartStop Platform MARCH 2008 SST, first public non-traded REIT entirely focused on self storage, declared effective and begins offering shares at $10.00 SEPTEMBER 2013 SST II is established JUNE 2019 SST II completes Self Administration Transaction; renames co
Slide 5: SmartStop is a high-growth alternative to large-cap self storage companies
SmartStop is a high-growth alternative to large-cap self storage companies Highly fragmented sector that is going through a wave of consolidation Scalable platform positioned to generate outsized returns with improved cost of capital The SmartStop Opportunity Over 52,000 self-storage facilities in t
Slide 6: Key Investment Highlights
Key Investment Highlights High Quality, Diversified Portfolio In Key Growth Markets 1 Differentiated Exposure to the Greater Toronto Area (“GTA”) 2 Scalable, Branded Platform Positioned to Drive Growth 3 Multi-Pronged Growth Strategy 4 Unique Managed REIT Platform Provides Additional Revenue and Acq
Slide 7: SmartStop Owns a High Quality Portfolio in Key Growth Markets
SmartStop Owns a High Quality Portfolio in Key Growth Markets Note: As of 3/31/2024. Figures reflect wholly-owned JVs at 100% of NRSF. (1) Toronto included as a top 25 MSA. Top 25 MSA’s as defined by 2024 U.S. Census Bureau data. Metric refers to owned properties including joint venture properties;
Slide 8: Operating Portfolio Benchmarking vs. Peers
Operating Portfolio Benchmarking vs. Peers Sources: Public company filings and financial supplements. (1) Evercore ISI Equity Research; (2) Excludes impact of LSI transaction and reflects EXR Same-store pool only; (3) Toronto included as a top 25 MSA. Top 25 MSA’s as defined by 2024. U.S. Census Bur
Slide 9: Portfolio Focused on Large Markets with Attractive Demographics
Portfolio Focused on Large Markets with Attractive Demographics Sources: Claritas, SNL Financial, Statistics Canada. Top 10 markets ranked by NRSF as of 12/31/2023. (1) Peers include PSA, EXR, CUBE, and NSA. (2) Toronto included as a top market. (3) Statistics Canada for 2022 and Ontario Ministry of
Slide 10: Key SmartStop U.S. Markets – Miami / Ft. Lauderdale and Los Angeles
Key SmartStop U.S. Markets – Miami / Ft. Lauderdale and Los Angeles Sources: Company internal data as of 3/31/2024. (1) Demographic data pulled by asset from CoStar; market data displayed is the weighted average by NRSF as of 3/31/2024. (2) RentPOF defined as annualized rental revenue net of discoun
Slide 11: GTA and broader Canadian expansion is a differentiated strategy
SmartStop’s GTA and broader Canadian expansion is a differentiated strategy 2 (1) Colliers January 2024 report; (2) 2024 Self-storage Almanac; (3) Statistics Canada and Ontario Ministry of Finance; (4) Colliers January 2024 report; (5) Metrics for the Greater Toronto Area only as of 3/31/2024; Inclu
Slide 12: Toronto and Greater Canada Represent an Untapped Growth Opportunity
Québec Ontario Toronto 2.3x 2.0x Montreal 2.5x Vancouver British Columbia 2.3x Calgary 2.8x Edmonton Alberta 2.2x Ottawa Manitoba Supply Ratio Saskatchewan Toronto and Greater Canada Represent an Untapped Growth Opportunity 2 Sources: Claritas, Colliers, CoStar, Green Street, SNL Financial, Statisti
Slide 13: Our Success in Canada: Case Studies
Our Success in Canada: Case Studies In 1H23, the Managed REITs(1) acquired an eight-facility portfolio in the GTA for approximately CAD $300 million 758,000 rentable square feet 7,400 units The properties are Class-A facilities located in high-growth areas of the GTA with strong demographics The acq
Slide 14: Award Winning Customer Service and Strong Brand Awareness
Award Winning Customer Service and Strong Brand Awareness Newsweek Awards Named the top-ranked self storage company for customer service by Newsweek and Statista in 2021, 2023 and 2024 The Stevie Awards Recognized as a Silver Winner in The 21st Annual American Business Awards® for Customer Service D
Slide 15: Introducing: Dash, SmartStop's Proprietary Integrated Technology Platform
Introducing: Dash, SmartStop’s Proprietary Integrated Technology Platform Cloud-based Technology Backbone of Our Platform Accelerates innovation Facilitates delivery of strategic objectives 3 Collaborative development with vendor Designed for real-time data access and availability Focus on customer-
Slide 16: Ability To Deliver Leading Customer Experience
Ability To Deliver Leading Customer Experience Technology-driven platform gives SmartStop the ability to meet customers’ unique service needs Dedicated In-House Call Center Dedicated call center employees streamline the customer experience Agents able to use web-based or SMS text features to complet
Slide 17: Multi-Pronged North American Growth Strategy
Multi-Pronged North American Growth Strategy 4 Organic growth drivers acquisitions Additional growth drivers Property revenue maximization Utilize technology-enabled platform to continue growing rental rates and occupancy Margin expansion NOI and EBITDA margin continue to expand but are still below
Slide 18: Internal Growth Strategy
Internal Growth Strategy 4 Internal Growth Strategic Highlights Historical Same-Store AVERAGE Occupancy(1) Historical Same-Store RentPOF(1) (2) SmartStop’s strategic internal growth initiatives have proven successful on key operational statistics Average: $18.57 Average: 94.1% Maximize net operati
Slide 19: Long-Term Internal Growth Track Record
Long-Term Internal Growth Track Record 4 Sources: Public company filings and financial supplements. Note: peers may have different definitions of same-store metrics. (1) Represents the simple average of quarterly year-over-year same-store growth for the most recent 12 quarters (the quarter ended 6/3
Slide 20: Existing Embedded Internal Growth Opportunities
Existing Embedded Internal Growth Opportunities 4 Source: Company data and filings. (1) RentPOF defined as annualized rental revenue net of discounts & concessions, excluding late fees, administrative fees and parking income, divided by occupied square feet of storage. (2) NOI and Adjusted EBITDA ar
Slide 21: Operations Update Post Quarter-End
Operations Update 4 Post Quarter-End Operational Updates Source: Company data and filings. (1) Represents same-store ending physical occupancy for 3/31/2024, 4/30/2024 and 5/31/2024. (2) Represents same-store monthly in-place rates for 3/31/2024, 4/30/2024 and 5/31/2024. (3) Represents same-store mo
Slide 22: Solar Initiative Highlights
Solar Initiative Highlights(1) $700K Existing Est. Annual Savings $1.1M Expected Est. Annual Savings $6.4M Existing Investment $10.2M Expected Investment 43 Live Solar Sites 61 Expected Solar Sites 6.0 GWh Cumulative Production 7.2 GWh Expected Production Actual GWh Production (1) Includes wholly-ow
Slide 23: Management's Track Record on Acquisitions
Management’s Track Record on Acquisitions SmartStop and Affiliates’ Investment Activity Stabilized Acquisitions: Acquired 66 properties for $857 million since 2016 SmartStop acquired three properties during Q2 2022 Managed REITs acquired five properties for $98 million since 2021 C of O and Lease-up
Slide 24: SmartStop Managed REIT Platform Provides Additional Capital Allocation Flexibility
SmartStop Managed REIT Platform Provides Additional Capital Allocation Flexibility 5 NRSF 2,097,280 (1) Represents Strategic Storage Trust VI, Inc. ("SST VI"), a non-traded REIT with a publicly-registered offering that was declared effective by the SEC on 3/17/2022. (2) Represents Strategic Storage
Slide 25: Experienced Senior Management Team
Experienced Senior Management Team 6 SmartStop Executive Management Team H. Michael Schwartz Chairman & Chief Executive Officer 19 Years of Storage Experience 19 Years at SmartStop and Affiliates Wayne Johnson President & CIO 37 Years of Storage Experience 17 Years at SmartStop and Affiliates James
Slide 26: Investment Grade Rated Balance Sheet
Investment Grade Rated Balance Sheet (1) As of 3/31/2024. (2) Total capitalization includes debt, preferred equity. Debt and preferred equity are at face value for purposes of this calculation; (3) Equity market cap based on approx. 110.5 million shares and OP Units at 3/31/24 valued at the most rec
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Slide 28: MSA Exposure – Same-Store
MSA Exposure – Same-Store Same-Store Portfolio at 3/31/24 Note: Data presented represents SmartStop’s existing owned same-store portfolio only (1) MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolitan Area) as defined by Statistics Canada. (2) R
Slide 29: MSA Exposure – Total Portfolio
MSA Exposure – Total Portfolio Wholly-Owned Total Portfolio at 3/31/24 (1) MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolitan Area) as defined by Statistics Canada. (2) Other markets include: Baltimore, Charleston, Charlottesville, College St
Slide 30: MSA Exposure – Owned & Managed Portfolio
MSA Exposure – Owned & Managed Portfolio Owned and Managed Total Portfolio at 3/31/24 Note: Amounts include properties owned in joint ventures. (1) MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolitan Area) as defined by Statistics Canada. (2)
Slide 31: Reconciliation: Net Income (Loss) to Net Operating Income
Reconciliation: Net Income (Loss) to Net Operating Income (1) Tenant protection program revenues are included within ancillary operating revenue within our consolidated statements of operations. Beginning with the period presented for fiscal year 2021, the Company removed Tenant protection program r
Slide 32: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) (1) Our calculation of FFO, as adjusted was modified in the period ended March 31, 2024, to add back the amortization of debt issuance costs. Accordingly, the prior periods have been presented here based on the current calculation, which differs from what was pre
Slide 33: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) (1) Includes all Class A Shares, Class T Shares and OP Units, as well as the dilutive effect on FFO and FFO, as adjusted of both unvested restricted stock and long term incentive plan units (both time-based units and performance based-units), and is calculated us
Slide 34: Reconciliation: Net Income (Loss) to Adjusted EBITDA: Trailing 5 Quarters
Reconciliation: Net Income (Loss) to Adjusted EBITDA: Trailing 5 Quarters (1) Tax related expense consists primarily of adjustments to deferred tax liabilities, state, federal, and Canadian income tax, as well as state franchise taxes. (2) This represents acquisition expenses associated with investm
Slide 35: Reconciliation: Same-Store Net Operating Income to Total Net Operating Income
Reconciliation: Same-Store Net Operating Income to Total Net Operating Income NM: Not meaningful comparison (1) RentPOF defined as annualized rental revenue net of discounts & concessions, excluding late fees, administrative fees and parking income, divided by occupied square feet of storage; (2) NO
Slide 36: Additional Information Regarding FFO & FFO, as Adjusted and NOI
Additional Information Regarding FFO & FFO, as Adjusted and NOI Funds from Operations (“FFO”) and FFO, as adjusted Funds from operations (“FFO”) is an industry wide metric promulgated by the National Association of Real Estate Investment Trusts, or NAREIT, which SmartStop believes to be an appropria
Slide 37: Thank you!
Thank you!
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