Slide 1: Investor Presentation August 2013
Investor Presentation August 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 June 30, 2013. As of June 30, 2013. Market value of common equity. Book value of preferred equity and debt. 386 519 133 Facilities1 Owned Managed Headquarters $3.3 billion Total Market Cap2 1) 2)
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 +10.4% Revenue +7.9% Expenses +3.5% NOI Margin 66% (+150 bps) $107 million in acquisitions2 Improved terms on bank financing agreements totaling $800 million 10 new third-party management contracts $36 million in dispositions2 $21 million
Slide 7: Reaching all-time-high occupancy levels
7 Reaching all-time-high occupancy levels Occupancy at period end. 2012 and 2013 data reflects that of the current same-store pool, as constituted on June 30, 2013. Occupancies prior to 2012 reflect those of the 2012 same-store pool, as constituted on December 31, 2012. 90.0% +590 bps, year over yea
Slide 8: Historically strong revenue and NOI gains
8 Historically strong revenue and NOI gains Same-Store Revenue Growth1 As Reported Four-quarter average of 6.3% Same-Store NOI Growth1,2 As Reported Data reflects quarterly year-over-year growth rates of the same-store pool as constituted at the time of reporting for each respective quarter shown. N
Slide 9: Continuation of recent operational strength
Continuation of recent operational strength Full-Year Guidance1 $0.86 to $0.90 FFO2 per Share 7.5% to 8.5% NOI Growth 6.5% to 7.0% Revenue Growth 4.0% to 4.5% Expense Growth Same-Store Guidance Components: Represents 19% annual growth at the midpoint Acceleration from 3.8% in 2012 Fueled by occupanc
Slide 10: Redefining service in the self-storage industry
10 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 Best of Business Awards 2012 Best Customer Service 2013 Redefining service in the self-storage industry
Slide 11: Proprietary systems optimize speed and efficiency of execution
ROSCOE Real-Time Reporting eCRM Relationship Management CubeSmart.com Targeted At-Home Experience 11 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 12: Understanding, targeting, attracting, and engaging our customers
12 Understanding, targeting, attracting, and engaging our customers Customer Capture Conversion
Slide 13: Significant evolution over past five years
13 Significant evolution over past five years Note: Bubbles sized by revenue. 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 June 2013 Acquisitions 2008 – June 2
Slide 14: Acquisitions and dispositions: 5-year investment activity
Acquisitions1 14 Focus on building depth in attractive, high-barrier-to-entry markets 5-Year Investment Activity $1.1 billion 88 Stores Transactions closed from 2008 through August 9, 2013. Dispositions1 $331 million 116 Stores Acquisitions, 2008 – June 2013 Dispositions, 2008 – June 2013
Slide 15: Core markets represent 62% of portfolio NOI
Core markets represent 62% of portfolio NOI1 Same-store assets2 represent 81% of portfolio NOI1 Second quarter 2013 net operating income. 2013 same-store portfolio. Excludes assets that have been sold during 2013. 15 2012 Same - Store Portfolio 3 Same - Store Additions in 2013 Non - Same - Store Ass
Slide 16: Funding growth while maintaining or improving metrics
16 Objective of funding growth in manner that maintains or improves metrics Investment Grade Rating As of June 30, 2013 Conservative Metrics 42% Debt / Gross Assets 45% Debt + Preferred / Gross Assets 6.0x Debt / EBITDA 6.4x Debt + Preferred / EBITDA 8% Secured Debt / Gross Assets As of June 30, 201
Slide 17: Capital structure affords access to full spectrum of capital sources
17 Capital structure affords access to full spectrum of capital sources Capital Structure As of June 30, 2013 Common Equity 66% Preferred Equity 2% Unsecured Bank Debt 18% Secured Debt 6% Public Unsecured Debt 8% % of Total Market Capitalization 1 Market value of common equity. Book value of preferr
Slide 18: Summary of growth drivers and objectives
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 19: Investor Relations Contact
Investor Relations Contact Daniel Ruble, CFA Vice President, Finance 460 E. Swedesford Rd. Suite 3000 Wayne, PA 19087 610.293.5700 druble@cubesmart.com