Smartstop Self Storage Reit, Inc. · NYSE:SMA
Smartstop Self Storage Reit — Q2 2020 Earnings Presentation
30 slides from Smartstop Self Storage Reit's earnings presentation, Sep 9, 2020
Slide 1: Second Quarter 2020 Update
+ + Second Quarter 2020 Update 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: Additional Information Regarding NOI, FFO & FFO, as adjusted (FFO)
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 4: Additional Information Regarding NOI, FFO & FFO, as adjusted (NOI)
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,
Slide 5: SmartStop Self Storage REIT, Inc.
SmartStop Self Storage REIT, Inc.
Slide 6: SmartStop Self Storage REIT, Inc.
SmartStop Self Storage REIT, Inc. SmartStop Self Storage REIT, Inc. (“SmartStop”) is a self-managed and fully-integrated self storage company with a portfolio of over $1.6 billion of self storage assets. SmartStop is the 10th largest self storage company in the U.S. with an owned and managed portfol
Slide 7: SmartStop's Executive Team
SmartStop’s Executive Team H. Michael Schwartz Founder & Executive Chairman 16 Years Experience Mike Terjung Chief Accounting Officer 11 Years Experience Michael McClure Chief Executive Officer 12 Years Experience Joe Robinson Chief Operations Officer 11 Years Experience Wayne Johnson President & CI
Slide 8: Institutional Management
Institutional Management Day-to-day operations Technology Innovation Web Development Marketing Pricing Analytics Revenue Management Dedicated In-house Call Center Developments & C/Os
Slide 9: Novel Coronavirus (COVID-19) Update
Novel Coronavirus (COVID-19) Update
Slide 10: Protecting Our Customers & Employees
Protecting Our Customers & Employees Social Distancing: Allowing only one customer in our office at a time and enforcing stay-at-home when sick procedures for employees Cleanliness: Thorough cleaning at each of our facilities and installation of plastic dividers. Employees are required to wear masks
Slide 11: COVID-19's Impact on 2nd Quarter 2020
COVID-19’s Impact on 2nd Quarter 2020 Royal Palm Beach, Florida SmartStop paused rate increase for existing customers during the second quarter 2020; SmartStop declined to charge or waived various late fees during second quarter 2020, which amounted to a reduction of approximately 35% on a same-stor
Slide 12: Business Continuity and Positioning
Business Continuity and Positioning Continue to rent units in a contactless manner through the call center and via the online leasing capabilities of the SmartStop website As of March 13 (~6 months), the majority of our corporate employees were working remotely with no interruption of key business f
Slide 13: Company Overview and Second Quarter Financial Highlights
Company Overview and Second Quarter Financial Highlights
Slide 14: Unique Opportunity For Growth In Self Storage
Unique Opportunity For Growth In Self Storage SmartStop offers a unique opportunity for future growth: Highly talented team of over 380 dedicated self storage professionals and executive team with an average of 15 years of self storage experience Tenth largest self storage company in the US with own
Slide 15: SmartStop Financial Update – Second Quarter 2020
SmartStop Financial Update – Second Quarter 2020 Second Quarter 2020 vs. 2019 Revenue Growth (as reported) Net Operating Income* Growth Property Operating Expenses as a Percentage of Revenue Number of Facilities Average Physical Occupancy Annualized Revenue per Occupied SF (excludes parking) Same-St
Slide 16: SmartStop Financial Update – YTD 2020
SmartStop Financial Update – YTD 2020 Same-Store Performance FFO, as adjusted & Cash Flow from Operations *See slides 2-4 for more information regarding Net Operating Income and FFO, as adjusted. Six Months Ended June 30, 2020 vs. 2019 Revenue Growth (as reported) Net Operating Income* Growth Proper
Slide 17: Balance Sheet
Balance Sheet Naples, Florida Loan to Value(1) June 30, 2020 = 45% (1) Debt, net of cash / Value based on most recent NAV Distributions(3) SmartStop pays a distribution rate of approximately $0.001639 per day per share (equivalent to $0.60 per share annually) to both Class A and Class T stockholders
Slide 18: Preferred Equity Investment
Preferred Equity Investment On October 29, 2019, SmartStop entered into a purchase agreement with Extra Space Storage (“EXR”, NYSE: EXR), a publicly-traded self storage REIT with a market capitalization of approximately $14 billion, for Series A Convertible Preferred Stock (“Preferred Stock”) EXR’s
Slide 19: SSGT Merger Overview
SSGT Merger Overview SmartStop completed its acquisition of Strategic Storage Growth Trust, Inc. (“SSGT”) by merger on January 24, 2019 in a 100% cash transaction Included Gilbert, AZ Certificate of Occupancy property, acquired in July 2019 and Toronto property under development, which opened in Q2
Slide 20: NAV Process
NAV Process Net Asset Value (“NAV”) of $10.40/share as of December 31, 2019 Independent, 3rd Party Valuation by Robert A. Stanger & Co, Inc. Asset-by-Asset valuation of Real Estate (no portfolio premium) In accordance with IPA NAV Guideline See our Form 8-K filed with the SEC on April 22, 2020 for a
Slide 21: SmartStop Self Storage REIT, Inc.
al, SmartStop Self Storage REIT, Inc. .. The Smarter Way to Store!®
Slide 22: Current Portfolio
Current Portfolio Portfolio as of 6/30/2020 *SST IV includes 1 operating property owned through SmartCentres JV *SST IV includes 3 under development properties owned through SmartCentres JV *SSGT II includes 1 operating property owned through SmartCentres JV * *
Slide 23: SmartStop NOI by State Q2 2020
*NOI represents approximate Q2 2020. SmartStop NOI by State Q2 2020 $16,935,000* Our portfolio is geographically diversified, with targeted investments in high growth markets such as California, Florida, and the Greater Toronto Area Owned NOI Owned & Managed NOI Q2 2020 $20,400,000*
Slide 24: Toronto Portfolio
Toronto Portfolio $275M CAD INVESTMENT IN TORONTO* *$275M figure represents Canadian dollar-denominated value of SmartStop’s owned or managed portfolio, as designated under the “Current Properties” section. Value is determined based on the appraised value of the assets from the declared Net Asset Va
Slide 25: Canadian Development Case Study
Canadian Development Case Study Stoney Creek, ONT *Occupancy number as of 06/30/2020 Partially opened in June 2018, fully opened in July 2018 **Gross Rental Revenue ($) figures presented are in local currency (Canadian $s) 905 Units 76,300 NRSF Approx. 90% Occupancy* Development Opened: June 2018
Slide 26: Certificate of Occupancy Case Study
Certificate of Occupancy Case Study Gilbert, AZ 975 Units 96,700 NRSF Approx. 73.0% Occupancy* Acquired: July 11, 2019 *Occupancy number as of 07/31/2020
Slide 27: Continued Investment In Our Assets
Continued Investment In Our Assets Retail Rebranding Rebranding and remodeling store fronts for more modern retail presence Over 50% of portfolio complete Solar Initiative In process on a number of solar array projects across the portfolio Accretive cost savings First U.S. project completed LED Init
Slide 28: Solar Initiative
Solar Initiative 701 Wando Park Blvd, Mt. Pleasant, SC See SmartStop’s press release and 8-K filed August 7, 2020. Energy Savings Equivalent To: Greenhouse gas emissions from ~12.4 passenger vehicles driven for one year Carbon dioxide (CO2) emissions from ~9.8 homes’ annualized electricity usage CO2
Slide 29: Publicly Traded and Public Non-Traded Self Storage Companies
Publicly Traded Self Storage Companies NYSE: EXR NYSE: PSA NYSE: CUBE NYSE: LSI NYSE: UHAL NYSE: JCAP NYSE: NSA Public Non-Traded Self Storage REITs Merger Pending
Slide 30: Questions?
al, SmartStop Self Storage REIT, Inc. ... The Smarter Way to Store!l® Questions?
SmartStop Self Storage REIT — Q2 2020 Earnings Presentation on 6ix