Smartstop Self Storage Reit, Inc. · NYSE:SMA
Smartstop Self Storage Reit — NAREIT Presentation June 2021
33 slides from Smartstop Self Storage Reit's conference presentation, Jun 4, 2021
Slide 1: NAREIT Presentation June 2021
Exhibit 99.1 NAREIT Presentation June 2021Exhibit 99.1 NAREIT Presentation June 2021
Slide 2: Disclaimer & Risk Factors
Disclaimer & Risk Factors 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
Slide 3: Today's Presenters
Today’s Presenters • Chairman since March 2013 H. Michael Schwartz ® • Founder and creator of SmartStop Self Storage brand and platform Founder, CEO & Executive • 30+ years of real estate, securities and corporate financial management experience Chairman • CFO and Treasurer since June 2019 James Bar
Slide 4: SmartStop Platform at a Glance
SmartStop Platform at a Glance SmartStop Self Storage REIT is the largest public non-traded self storage REIT in the U.S. Initially started raising equity capital in 2014 through the broker dealer network th (1) (1) 10 Largest 11.8 Million 154 Self Storage Company in Owned and Managed Owned and Mana
Slide 5: 15+ Year Track Record Of Creating Shareholder Value
15+ Year Track Record Of Creating Shareholder Value Major Company and Affiliate Milestones DECEMBER 2016 JANUARY 2019 SST II completes SST II completes merger with acquisition of Mindful SSGT; SSGT successful full-cycle MARCH 2021 Storage portfolio cash transaction at $12.00/share SmartStop MARCH 20
Slide 6: Investment Highlights
Investment Highlights NAREIT Presentation 6Investment Highlights NAREIT Presentation 6
Slide 7: Investment Highlights
Investment Highlights High Quality, Diversified Portfolio In Key Growth Markets 1 Institutional Operator And Technology Platform 2 Demonstrated Ability To Grow Externally 3 High Growth Portfolio of Stabilized and Lease Up Assets 4 Conservative And Diversified Capital Structure 5 Naples, Florida Expe
Slide 8: Owned Operating Portfolio
Owned Operating Portfolio 141 104K 63.3% 10.7 million Operating Properties Average 3 Mile Radius Concentration In Top Net Rentable Square Feet (2) (1) Owned In US & Canada Population MSAs Miami - Fort 3 Lauderdale 9.6% 16 1 Toronto % of NRSF 4 12.9% Asheville 8.0% >10% 2 Portfolio 5 8 5 2 5-10% Dive
Slide 9: Concentration In High Growth North American Markets
Concentration In High Growth North American Markets Same-Store 1Q21 YoY Avg. 3 Mi. Total Rentable Avg. 3 Mi. % of Same- # Total Net Rent per Same-Store SQFT Median HHI Population (1) (2) (1) Occupied Store NOI Properties Revenue (3) (3,4) (3) (000s) ($000s) (000s) () SQFT Growth Miami - FLL 16.3% 1,
Slide 10: Rents and Demographics Reflect Strength of Property Locations
Rents and Demographics Reflect Strength of Property Locations (1) (2) Q1 2021 Same-Store Rent / SF Percentage In Top 25 MSAs 75% $17.63 $17.60 $17.16 64% 63% 63% $15.43 $14.87 56% $12.26 32% PSA CUBE EXR SMRT LSI NSA CUBE PSA SMRT EXR LSI NSA (3) (3) 3 Mile Median Household Income (000s) 3 Mile Popu
Slide 11: Toronto Market Overview
Toronto Market Overview (1) Toronto And Largest U.S. Cities By Population Greater Toronto Area (“GTA”) Overview (Populations in millions) th 8.3 • Toronto would be the 3rd most populous city and 8 largest MSA in the U.S., while claiming strong projected population growth and 3.9 least saturated self
Slide 12: SmartStop Leading the Way in the GTA
SmartStop Leading the Way in the GTA SmartStop GTA Platform SmartStop GTA Portfolio • 10+ years of experience in the market • Toronto represents 12.9% of SmartStop’s (1) total owned portfolio • Significant brand presence • 21 self storage facilities • Dedicated website, smartstop.ca, helps to promot
Slide 13: SmartCentres Joint Venture
SmartCentres Joint Venture Joint Venture Summary Case Study: Vaughan • Ground up four story development opened in February 2021 • 50/50 joint venture with SmartCentres (TSX: SUR.UN), one of Canada’s largest fully-integrated REITs • Built on a 1.6 acre lot adjacent to the SmartCentres Vaughan shoppin
Slide 14: Best In Class Operating Performance
Best In Class Operating Performance (1) (1) Q1 2021 YoY Same-Store Revenue Growth Q1 2021 YoY Same-Store NOI Growth 14.2% 9.7% 11.5% 8.1% 7.3% 6.7% 8.9% 8.6% 6.7% 6.5% 4.6% 3.4% SMRT NSA LSI CUBE EXR PSA SMRT NSA CUBE LSI PSA EXR (2) Q1 2021 Ending Same-Store Occupancy Q1 2021 YoY Same-Store Occupan
Slide 15: 2021 Operational Update
2021 Operational Update 1Q21 Highlights April 2021 Update • Strong YoY same-store results • 4/30/21 Occupancy +7.2% YoY and +1.6% MoM (1) • Revenues increased 9.7% • Move-ins increased ~39.6% YoY Same-Store • Move-outs declined ~2.8%, YoY (1) Performance • Operating expenses increased 1.2% • Asking
Slide 16: External Growth: Strategic Storage Trust IV Merger
External Growth: Strategic Storage Trust IV Merger (1) SST IV Combined SmartStop SST IV SmartStop Portfolio Impacts: (2) Self Storage Properties 114 30 144 Largest MSAs • On March 17, 2021 SmartStop closed the (2) Rentable SQFT (millions) 8.4 2.7 11.1 1) Miami - FLL Houston acquisition of Strategic
Slide 17: SST IV Merger: High Quality Properties in Key Growth Markets
SST IV Merger: High Quality Properties in Key Growth Markets Toronto, ONT Naples, FL San Diego, CA Orlando, FL Houston, TX Charlotte, NC NAREIT Presentation 17SST IV Merger: High Quality Properties in Key Growth Markets Toronto, ONT Naples, FL San Diego, CA Orlando, FL Houston, TX Charlotte, NC NARE
Slide 18: External Growth: SST IV Merger Finance and Balance Sheet Impacts
External Growth: Strategic Storage Trust IV Merger Finance and Balance Sheet Impacts: SST IV Wtd. Avg. Leverage w/ Avg. Debt Leverage w/o Interest Rate Preferred Preferred Maturity New Secured Credit Facility 3.7% 55.4% 43.4% 3.2 years Pre Merger • In tandem with the closing of the merger, SmartStop
Slide 19: SmartStop Managed REIT Funds
SmartStop Managed REIT Funds Strategic Storage Growth Trust II, Inc. (“SSGT II”) Strategic Storage Trust VI, Inc. (“SST VI”) • Income and growth property focused • $155 million assets under management • 11 self storage properties • 2 self storage properties as of 5/31/2021 • 10 wholly owned • 1 whol
Slide 20: Strong and Valuable Brand Identity
Strong and Valuable Brand Identity ® Recognizable Signage and Colors SmartStop Brand Appearances Store Branding Continued investment in brand and marketing Digital Special Events / Employee Moving Website translates to customer awareness Marketing Sponsorships Uniforms Supplies 154 Brand Awareness S
Slide 21: Industry Leader In Customer Experience
Industry Leader In Customer Experience Technology-driven platform gives SmartStop the ability to meet customers’ unique service needs Winner - Best Customer Service 2021 Award for Storage Companies Dedicated In- Online Online Rentals Walk-Ins House Call Center Reservations • Dedicated call center •
Slide 22: Sophisticated Operating And Analytics Technology
Sophisticated Operating And Analytics Technology SmartStop has made continued investment in technology through data science and analytics platforms • Automated ad campaigns and search engine marketing integrated with pricing and POS systems to drive high customer conversion rates Digital Marketing •
Slide 23: Appendix
Appendix NAREIT Presentation 23Appendix NAREIT Presentation 23
Slide 24: Decades of Collective Industry Experience
Decades of Collective Industry Experience BE oar xec du of tiv D ei T rec eam tors James Barry Joe Robinson H. Michael Schwartz Wayne Johnson CFO & Treasurer Chief Operations Officer Chairman & Chief Executive Officer President & CIO 9 Years Storage Experience 12 Years Storage Experience 17 Years St
Slide 25: MSA Exposure – Same-Store 1Q21
MSA Exposure – Same-Store 1Q21 Wholly Owned Same-Store Portfolio at 3/31/21 Net Rent / Occupied Sq. Ft. Avg. Occupancy for the Op. Expenses for the for the Three Months Three Months Ended Revenue for the Three Three Months Ended NOI for the Three Months Net Ended March 31,(2) March 31, Months Ended
Slide 26: MSA Exposure – Same-Store FY2020
MSA Exposure – Same-Store FY2020 Wholly Owned Same-Store Portfolio at 12/31/20 Net Rent / Occupied Sq. Ft. Avg. Occupancy for Revenue for the Twelve Expenses for the Twelve NOI for the Twelve for the Twelve Months the Twelve Months Months Ended Months Ended Months Ended Net (2) Ended December 31, En
Slide 27: MSA Exposure – Total Portfolio 1Q21
MSA Exposure – Total Portfolio 1Q21 Wholly Owned Total Portfolio at 3/31/21 % of Net Portfolio by Rentable # of (1) Net Sq. Ft. MSA/CMA Sq. Ft. Stores Units Miami - Fort Lauderdale 10.0% 1, 024,000 10 8, 750 Toronto 9.8% 1, 006,700 12 9, 540 Asheville 8.4% 859, 700 14 6, 160 Las Vegas 7.3% 755, 000
Slide 28: Reconciliation of Same-Store Revenue and Net Operating Income 1Q21
Reconciliation of Same-Store Revenue and Net Operating Income 1Q21 Same-Store Facilities Non Same-Store Facilities Total % % % 2021 2020 Change 2021 2020 Change 2021 2020 Change (1) Revenue $ 27,871,895 $ 25,405,035 9.7% $ 3,188,977 $ 1,315,827 N/M $ 31,060,872 $ 26,720,862 16.2% Property operating
Slide 29: Reconciliation of Same-Store Revenue and Net Operating Income FY2020
Reconciliation of Same-Store Revenue and Net Operating Income FY2020 Same-Store Facilities Non Same-Store Facilities Total % % % 2020 2019 Change 2020 2019 Change 2020 2019 Change Revenue (1) $ 84,147,601 $ 8 1,245,804 3.6% $ 2 6,027,324 $ 2 1,955,456 N/M $ 1 10,174,925 $ 1 03,201,260 6.8% Property
Slide 30: Reconciliation: Net Loss to Net Operating Income
Reconciliation: Net Loss to Net Operating Income For the Three Months Ended March 31, 2021 2020 Net loss $ (12,303,466) $ (37,743,581) Adjusted to exclude: Managed REIT Platform revenue (2,287,740) (1,783,787) Managed REIT Platform expenses 319,890 1,174,809 General and administrative 4,752,989 3,66
Slide 31: Reconciliation: Net Loss to FFO & FFO, as Adjusted
Reconciliation: Net Loss to FFO & FFO, as Adjusted Three Months Three Months Ended Ended March 31, March 31, 2021 2020 Net loss (attributable to common stockholders) $ (13,908,664) $ ( 35,073,951) Add: Depreciation of real estate 8, 377,485 7,587,338 Depreciation and amortization of real estate and
Slide 32: Additional Information Regarding NOI, FFO & FFO, as adjusted
Additional Information Regarding NOI, FFO & FFO, as adjusted 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 appropriate
Slide 33: Additional Information Regarding NOI, FFO & FFO, as adjusted
Additional Information Regarding NOI, FFO & FFO, as adjusted Net Operating Income or (“NOI”) NOI is a non-GAAP measure that SmartStop defines as net income (loss), computed in accordance with GAAP, generated from properties before corporate general and administrative expenses, asset management fees,
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