Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (March 2019)
25 slides from Cubesmart's investor presentation, Mar 4, 2019
Slide 1: Introduction to CubeSmart
Introduction to CubeSmart MarketCap2 Adjusted4 31 March 2019 Investor Presentation 1. As of December31, 2018 2. Market value of common equity and book value of debt as of December 31,2018 3. Annual dividends declared in period ending December 31,2018 4. Period ending December31, 2018 80% 5-year Grow
Slide 2: It's what's inside that counts
It's what's inside CubeSmart: that counts. 41 March 2019 Investor Presentation
Slide 3: Sophisticated Operating Platform
Sophisticated Operating Platform Integrated strategy to maximize customer acquisition and retention Customer Value achieve the ultimate goal of revenue maximization customer needs and exceed expectations of the storage experience 51 March 2019 Investor Presentation Customer Service Strategic investm
Slide 4: Refined Customer Acquisition Strategy
Sophisticated Operating Platform Refined Customer Acquisition Strategy Integrated approach across all channels drives customers through the funnel Maximize value from each customer through an appealing value proposition Deliver an unparalleled experience to encourage retention and advocacy 61 March
Slide 5: Long-Term Revenue Maximization
Sophisticated Operating Platform Long-Term Revenue Maximization Multi-faceted approach to dynamically manage supply/demand balance Demand Forecast/Revenue Optimization Price optimization requires consideration of a multi-dimensional demand landscape & ever-changing capacity constraints Balance betwe
Slide 6: Refined Customer Acquisition Strategy
phisticated Operating Platform Refined Customer Acquisition Strategy Integrated approach across all channels drives customers through the funne! Building Brand. Attract the greatest ‘Awareness: Targeted:Dats share of potential demand Driven Digital A Marketing = 1)) =) It’s what's inside that counts
Slide 7: Understanding the Needs of Our Customers
Sophisticated Operating Platform Understanding the Needs of Our Customers Striving to fulfill our mission of simplifying our customers· organizational challenges .. Attract the greatest share of potential demand Rita Ryan Mary Erik Dave Maximize value from each customer through an appealing value pr
Slide 8: Award-Winning Service Culture
Sophisticated Operating Platform Award-Winning Service Culture Attract the greatest share of potential demand Maximize value from each customer through an appealing value proposition 10 IMarch2019Investor Presentation
Slide 9: Third-Party Owners Continually Choose CubeSmart
Sophisticated Operating Platform Third-Party Owners Continually Choose CubeSmart Owners repeatedly trust their investments to the CubeSmart platform 11 IMarch 2019 Investor Presentation Third-Party Managed Properties 500 4 00 300 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 200 100 0 593 700 60
Slide 10: National Platform with a Focus in Core Markets
High-Quality Portfolio National Platform with a Focus in Core Markets revenue1 Our top 12 markets are major metro areas which generate 68°/o of • Owned & Managed Managed Only ® Top 12 Market 131 March 2019 Investor Presentation 1. 4th Quarter 2018 2. Property Counts as of December 31,2018
Slide 11: Industry-Leading Portfolio
High-Quality Portfolio Industry-Leading Portfolio Enhancing a high-quality portfolio with a focus on top-25 MSAs 1 2 3-Mile Population (in thousands) Storage REIT Exposure to Top 25 MSAs 100% 180 160 140 120 100 80 60 40 20 0 75% 80% 70% 61% 55% 60% 41% 40% 20% 0% CUBE PSA EXR LSI NSA CUBE PSA EXR L
Slide 12: 1. Source: US Census Bureau, 2018 Self Storage Almanac, Internal Market Research 2. Source:
1. Source: US Census Bureau, 2018 Self Storage Almanac, Internal Market Research 2. Source: New York City Department of City Planning
Slide 13: Enhancing the Portfolio with New Properties
High-Quality Portfolio Enhancing the Portfolio with New Properties Adding value through the development of purpose-built, class A stores $40.3M Total Chicago, IL (2) Delray Beach, FL $19.1M Total Vl C/O c: o...-San Diego, CA :·;-:::;0 ......... -u ::J ..... e-re u <.( 161 March2019Investor Presentat
Slide 14: New York City Market Leader
High-Quality Portfolio New York City Market Leader Leading operator of high-quality stores in this premier market T Market Dynamics Dynamic and diverse population of more 85 million residents erage Available stora are feet per capita of 2.1, well below the national right fore GUBEis the market leade
Slide 15: Extensive Access to Capital
Disciplined Capital Allocation Extensive Access to Capital Access to the full spectrum of capital sources to meet obligations and fund growth Debt to Gross Assets 100.0% 900% 80.0% 70.0% 60.0% 50.0% 400% 30.0% 20.0% 10.0% 0.0% 1 201020112012 2013 2014 2015 2016 2017 2018 • Secured Deb t • Unsec ured
Slide 16: 1,2 1. 2. 3. Source: Company Filings, as of December of each stated year
1 1,2 3 1. 2. 3. Source: Company Filings, as of December 31 of each stated year Calculated as annual EBITDA / Interest Expense Proforma to include impact of January 2019 Unsecured Senior Note Issuance
Slide 17: Funds From Operations Growth & Dividend Growth
Disciplined Capital Allocation Funds From Operations Growth & Dividend Growth Growing FFO has generated meaningful increases in distributions 1 +11.0% CAGR AnnualDividend per Share FFO per Share, as adjusted +22.0% CAGR r $1.75 $1.50 $1.40 $1.20 $1.25 $1.00 $1 00 $0.80 $0.75 $0.60 $0.50 $0.40 $0 25
Slide 18: Current Self-storage Operating Environment
Current Self-storage Operating Environment continues to be an attractive sector 21 IMarch 2019 Investor Presentation
Slide 19: Recent Highlights
Current Operating Environment Recent Highlights Executing on strategic objectives NOI Revenue Expenses NOIMargin +3.3% +3.3% +3.5% 71.4% $208.4 million in acquisitions $111.2 million in new development openings 209 new third-party management contracts 231 March 2019 Investor Presentation 1. Financia
Slide 20: It's what's inside that counts
It's what's inside CubeSmart: that counts. 241 March 2019 Investor Presentation
Slide 21: 1. 2. 3. Performance as reported for the same-store pool as it was constituted
1. 2. 3. Performance as reported for the same-store pool as it was constituted at the end of the respective year Year-ending values as detailed in Company's supplemental packages Calculated as ending common share price / funds from operations per share, as adjusted. Please refer to CubeSmart’s publi
Slide 22: Additional Information
AdditionalInformation • Corporate Responsibility www.cubesmart.com/about-usjcorporate-responsibility • Supplemental Financial http://investors.cubesmart.com • 10-K Filing http://investors.cubesmart.com • Proxy http://investors.cubesmart.com Information 261 March 2019 Investor Presentation
Slide 23: Historical Company Data
Historical Company Data Same-Store Performance’ 2010 20112012 2013 201420152016 __-2017__2018 Revenue Growth 0.3% | 3.6% | 38% | 74% | 7.2% | 7.3% | 7.0% | 4h% | 3.3% NOI Growth 1.0% | 5.7% | 6.0% | 9.3% | 9.6% | 9.6% | 10.2% | 5.1% | 3.5% YOY Occupancy Growth (BPS) 0.6% | 2.0% | 3.4% | 5.9% [26% |
Slide 24: Additional Information
Additional Information = Corporate Responsibility www.cubesmart.com/about-us/corporate-responsibility = Supplemental Financial Information http://investors.cubesmart.com = 10-K Filing http://investors.cubesmart.com = Proxy http://investors.cubesmart.com 26 | March 2019 Investor Presentation
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