Smartstop Self Storage Reit, Inc. · NYSE:SMA
Smartstop Self Storage Reit — Investor Presentation (December 2022)
31 slides from Smartstop Self Storage Reit's investor presentation, Dec 7, 2022
Slide 1: 2022 Third Quarter Investor Presentation
2022 Third Quarter Investor Presentation North York, Ontario Exhibit 99.1
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: SmartStop's Leadership Team
SmartStop’s Leadership Team Executive Team Deep leadership team with an average of 15 years of storage experience 5-123-187 21-155-215 127-190-66 127-127-127 182-182-182 H. Michael Schwartz Chairman & CEO 18 Years of Storage Experience (18 Years SmartStop and Affiliates) Wayne Johnson President & CI
Slide 4: SmartStop Platform at a Glance
SmartStop Platform at a Glance 11th Largest Self Storage Company in the U.S. (1) ~13.7 Million(2) Owned or Managed Rentable Square Feet 176(2) Owned or Managed Self Storage Facilities $2.9 Billion Total Capitalization(4) >$5.0 Billion Historical Self Storage Transaction Activity(3) ~450 Employees Sm
Slide 5: SmartStop Self Storage REIT, Inc.
4q ! ? SmartStop Self Storage REIT, Inc. ..The Smarter Way to Store!”
Slide 6: Investment Highlights
Institutional Operator And Technology Platform Demonstrated Ability To Grow Externally Conservative And Diversified Capital Structure Experienced Management Team And Board High Quality, Diversified Portfolio In Key Growth Markets Investment Highlights 1 2 3 5 6 North York, Ontario High Growth Portfo
Slide 7: Owned Portfolio Overview
Owned Portfolio Overview 159 Operating Properties Owned In U.S. & Canada ~65% Concentration In Top 25 MSAs(1) 12.3 million Net Rentable Square Feet Note: Figures reflect wholly-owned JVs at 100% of NRSF. (1) Toronto included as a top 25 MSA. Top 25 MSA’s as defined by 2020 U.S. Census Bureau data. (
Slide 8: Concentration In High Growth North American Markets
Concentration In High Growth North American Markets Toronto % of Same- Store NOI(1) Miami - FLL Los Angeles Asheville Las Vegas # Total Properties(2) Total Rentable SQFT (000s)(2) 3Q22 YoY Same-Store Revenue Growth Same-Store Net Rent per Occupied SQFT(3) Avg. 3 Mi. Population (000s)(2) Avg. 3 Mi. M
Slide 9: Greater Toronto Area Overview
Home to the Toronto Stock Exchange, leading financial institutions and an array of Canada’s largest companies With accommodative immigration policies and a high-quality education system, the GTA is attracting young, highly skilled workers and quickly emerging as a hotbed for the digital economy Rank
Slide 10: Greater Toronto Area Storage Market Overview
Greater Toronto Area (“GTA”) Storage Market Overview % Population Growth Sq. Ft. / Capita The GTA market exhibits many of the positive market characteristics of the top U.S. MSAs, with far less institutional competition The GTA’s Low Supply Ratio and Strong Population Growth Suggests a Long Runway f
Slide 11: SmartStop is a Leading Institutional Operator in Toronto
SmartStop is a Leading Institutional Operator in Toronto Milton, ONT Mississauga, ONT Toronto, ONT SmartStop GTA Portfolio Map(3) SmartStop GTA Highlights 12 Years of experience in GTA Market 5th Largest Operator in GTA(1) 6% GTA Market Share(1) 1.6mm SF / 13.1% Of Total SmartStop Owned Sq. Ft.(2) 1
Slide 12: SmartStop's Opportunity in Canadian Markets
SmartStop’s Opportunity in Canadian Markets Future Canadian Growth 5-123-187 21-155-215 127-190-66 127-127-127 182-182-182 Canadian Market Leader Largest U.S. Owner in Toronto Market Dedicated Canadian Website: Smartstop.ca Toronto, ON Québec Ontario Toronto 3.0x 1.6x Montreal 2.3x Vancouver British
Slide 13: SmartCentres Joint Venture Case Study: Vaughan
SmartCentres Joint Venture Case Study: Vaughan(1) Joint Venture Summary 5-123-187 21-155-215 127-190-66 127-127-127 182-182-182 50/50 joint venture with SmartCentres (TSX: SRU.UN), one of Canada’s largest fully-integrated REITs Provides right of first offer in certain markets to develop self storage
Slide 14: SmartStop Self Storage REIT, Inc.
4q ! ? SmartStop Self Storage REIT, Inc. ..The Smarter Way to Store!”
Slide 15: Internal Growth: Concentration of Growth Assets
Internal Growth: Concentration of Growth Assets 3Q22 ending physical occupancy 150bps below same-store average 3Q22 RentPOF 8.8% below same-store average Represents 16.7% of 3Q22 total revenue Source: Company data and filings. NM: not a meaningful comparison. (1) RentPOF defined as annualized rental
Slide 16: 2022 Operational Update
2022 Operational Update 3Q22 Highlights Additional 2022 Updates Strong YoY same-store results Revenues increased 11.8% Operating expenses increased 7.5% NOI increased 13.7%(1) Average physical occupancy decreased 140bps to 94.5% Annualized rent per occupied square foot increased 14.3% to $19.30(2) I
Slide 17: Updated Net Asset Value Per Share
Updated Net Asset Value Per Share Declared Net Asset Value (“NAV”) of $15.21/share as of September 30, 2022 Represents an increase of approximately 1% from previous declared NAV as of June 30, 2021 Valuation range between $14.15 - $16.38 Independent, 3rd Party Valuation by Robert A. Stanger & Co, In
Slide 18: External Growth: Investment Activity
External Growth: Investment Activity Stabilized Acquisitions: Note: All acquisition and development prices reflect the original purchase price executed by SmartStop, including Strategic Storage Growth Trust, Inc., Strategic Storage Trust IV, Inc., and Strategic Storage Growth Trust II, Inc. Acquired
Slide 19: External Growth: SSGT II Merger
Overview of SmartStop Portfolio Expansion On June 1, 2022, SmartStop closed the previously announced merger with Strategic Storage Growth Trust II, Inc. (“SSGT II”) 100% stock-for-stock transaction SSGT II was a private REIT that was formed in October of 2018 Continues SmartStop’s successful track r
Slide 20: SmartStop Managed REIT Funds
Operational Properties NRSF Allocation SmartStop Managed REIT Funds Note: Data as of 9/30/2022 Excludes Joint Venture developments. Includes all rentable units and rentable square feet, consisting of storage units and parking units Strategic Storage Growth Trust III, Inc. 175 Rolling Acres Rd., Lady
Slide 21: Investment Grade Rated Balance Sheet
Investment Grade Rated Balance Sheet (1) Does not take into account potential extension options. (2) Leverage as measured by debt less cash to total capitalization (total capitalization includes debt, preferred equity and equity market cap) (3) Includes the impact of interest rate derivatives, inclu
Slide 22: Store Branding
Store Branding Brand Awareness Strong and Valuable Brand Identity Well-Known Brand Name Brand Protection Recognizable Signage and Colors SmartStop® Brand Appearances Registered trademarks in U.S. / Canada 250 U.S. / Canadian domain names Continued investment in brand and marketing translates to cust
Slide 23: Industry Leader In Customer Experience
Ability to search for and reserve units at one of SmartStop’s 175+ locations Integrated into revenue management system to update pricing and occupancy real time Online Reservations Industry Leader In Customer Experience Technology-driven platform gives SmartStop the ability to meet customers’ unique
Slide 24: Sophisticated Operating And Analytics Technology
Sophisticated Operating And Analytics Technology Optimization of rental rates, discounts, and incentives driven by scientifically-based, proprietary pricing models Proprietary competitive rate analysis allows dynamic and real-time pricing based on forecasted future demand Evaluation and implementati
Slide 25: SmartStop Self Storage REIT, Inc.
4q ! ? SmartStop Self Storage REIT, Inc. ..The Smarter Way to Store!”
Slide 26: MSA Exposure – Same-Store
MSA Exposure – Same-Store Same-Store Portfolio at 9/30/22 Note: Data presented represents SmartStop’s existing owned same-store portfolio only MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolitan Area) as defined by Statistics Canada. RentPOF d
Slide 27: MSA Exposure – Total Portfolio
MSA Exposure – Total Portfolio Wholly-Owned Total Portfolio at 9/30/22 MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolitan Area) as defined by Statistics Canada. Other markets include: Baltimore, Charleston, Charlottesville, College Station, C
Slide 28: Reconciliation: Net Loss to Net Operating Income
Reconciliation: Net Loss to Net Operating Income Excludes tenant protection program revenue.
Slide 29: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) This represents the portion of the above stated adjustments in the calculations of FFO and FFO, as adjusted, that are attributable to our non-controlling interests. Includes all Class A Shares, Class T Shares and OP Units, as well as the dilutive effect on FFO an
Slide 30: Reconciliation: Net Income to Adjusted EBITDA: Trailing Quarters
Reconciliation: Net Income to Adjusted EBITDA: Trailing 5 Quarters Tax related expense consists primarily of adjustments to deferred tax liabilities, state franchise taxes, and state, federal, and Canadian income tax. The contingent earnout adjustment represents the adjustment to the fair value of t
Slide 31: 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
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