Smartstop Self Storage Reit, Inc. · NYSE:SMA
Smartstop Self Storage Reit — Q2 2023 Earnings Presentation
34 slides from Smartstop Self Storage Reit's earnings presentation, Aug 29, 2023
Slide 1: Second Quarter 2023 Update
Second Quarter 2023 Update Chula Vista, CA 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 Platform at a Glance
SmartStop Platform at a Glance 10th Largest Self Storage Company in the U.S.(1) ~15.3 Million(2) Owned or Managed Rentable Square Feet 192(2) Owned or Managed Self Storage Operating Properties $2.9 Billion Total Capitalization(4) >$5.0 Billion Historical Self Storage Transaction Activity(3) ~500 Emp
Slide 4: Awards and Accolades
Awards and Accolades BBB- Investment-Grade Credit Rating from Kroll Bond Rating Agency, Inc. (2022 + 2023)
Slide 5: SmartStop Strategy, Platform & Portfolio
SmartStop Strategy, Platform & Portfolio SmartStop’s focus on high-growth domestic and Canadian markets, combined with unique operating platform initiatives, have created a high quality portfolio with embedded growth opportunities Strategy Platform High Quality Portfolio Strong North American brand
Slide 6: Investment Highlights
Differentiated Exposure to the Greater Toronto Area (“GTA”) Institutional Operator and Proprietary Technology Platform Unique Managed REIT Platform Experienced Management Team High Quality, Diversified Portfolio In Key Growth Markets Investment Highlights 1 2 3 5 7 Demonstrated Ability To Grow Exter
Slide 7: Owned Portfolio Overview as of 6/30/23
Owned Portfolio Overview as of 6/30/23 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. (2) MSAs (Metropolitan Statistical Areas) as defined by the U.S. Census Bureau. Toronto CMA (Census Metropolit
Slide 8: Major U.S. Markets: Miami / Ft. Lauderdale and LA
Major U.S. Markets: Miami / Ft. Lauderdale and LA Sources: Company internal data as of 6/30/23. (1) RentPOF defined as annualized rental revenue net of discounts & concessions, excluding late fees, administrative fees and parking income, divided by occupied square feet of storage. MSA(1) NRSF Portfo
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: GTA Storage Market Overview
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 for Absorption Relative to
Slide 11: SmartStop is a Leading Operator in Toronto
SmartStop is a Leading Operator in Toronto Milton, ONT Toronto, ONT SmartStop GTA Owned or Managed Portfolio(3) SmartStop GTA Highlights 13 Years of experience in GTA Market 2.9 Million Total Owned or Managed Operating Sq. Ft.(1) 6%+ GTA Market Share(2) 27,800 Total Owned or Managed Operating Units(
Slide 12: SmartStop's Opportunity in Canada
SmartStop’s Opportunity in Canada Future Canadian Growth Canadian Market Leader Fifth Largest Owner in Canada Dedicated Canadian Website: Smartstop.ca Québec Ontario Toronto 3.0x 1.6x Montreal 2.3x Vancouver British Columbia 2.1x Calgary 2.3x Edmonton Alberta 2.2x Ottawa Manitoba Supply Ratio Supply
Slide 13: SmartStop's Expansion Beyond the GTA
SmartStop’s Expansion Beyond the GTA Current Owned and Managed Canadian Portfolio Outside of the GTA SmartStop’s expansion into British Columbia, Alberta and Quebec paves the way for growth outside of the GTA 2 One Managed Operating Property(1) One Owned Development Property(2) Map One Managed Opera
Slide 14: Case Study: GTA Portfolio Acquisition
Case Study: GTA Portfolio Acquisition In 1H23, the Managed REITs(1) acquired an eight-facility portfolio in the GTA for approximately CAD $300 million 758,000 rentable square feet 7,400 units The properties are Class-A facilities located in high-growth areas of the GTA with strong demographics The a
Slide 15: Case Study: Vaughan, Ontario
50 Cityview Blvd. Vaughan, Ontario(1) Case Study: Vaughan, Ontario Ground up four story development opened in February 2021 Built on a 1.6 acre lot adjacent to the SmartCentres Vaughan shopping center, The Home Depot and the Walmart Supercenter 880 climate controlled units Quickly gained occupancy g
Slide 16: Cloud-based Backbone of Our Operating Platform
Custom-built • Collaborative development with vendors • Emphasis on flexibility and easy customer experience • Integrates with our processes and how we do business Scalable • Built to grow with SmartStop (hundreds of properties) • Enhancements and upgrades flow seamlessly to field • Enterprise-level
Slide 17: Strong and Valuable Brand Identity
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 cus
Slide 18: Industry Leader in Customer Experience
Ability to search for and reserve units at one of SmartStop’s 190+ 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 19: Operations & Investment Update 2Q23 Highlights
Operations & Investment Update 2Q23 Highlights YoY same-store results Revenues increased 5.3% Operating expenses increased 13.7% NOI increased 1.9%(1) Average physical occupancy decreased 180bps to 93.7% Annualized rent per occupied square foot increased 8.1% to $19.99(2) 2Q23 common dividend covera
Slide 20: External Growth: Investment Activity
External Growth: Investment Activity Note: All acquisition and development prices for SmartStop 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.; Original purchase
Slide 21: SmartStop Managed REIT Platform
Operational Properties NRSF Allocation SmartStop Managed REIT Platform (1) As of 8/29/23. Includes all rentable units and rentable square feet, consisting of storage units and parking units Strategic Storage Growth Trust III, Inc. $154M AUM Assets Under Management on a cost basis(1) Strategic Storag
Slide 22: 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 23: Investment Grade Rated Balance Sheet
Investment Grade Rated Balance Sheet BBB- Investment Grade Rating 3.4 Years Avg. Debt Maturity(1) 34.7% Leverage w/o Preferred(2) 83% Fixed Rate Debt(3) 6.0% Wtd. Avg. Interest Rate(4) 41.5% Leverage w/ Preferred(5) 2.0x Fixed Charge Coverage(6) Debt Private Placement $150M Debt Private Placement Ap
Slide 24: Experienced Senior Management Team
Experienced Senior Management Team SmartStop Executive Management Team SmartStop Team Highlights H. Michael Schwartz Chairman & Chief Executive Officer 19 Years of Storage Experience 19 Years at SmartStop and Affiliates Wayne Johnson President & CIO 37 Years of Storage Experience 17 Years at SmartSt
Slide 25: ESG Commitment: Solar Initiative
ESG Commitment: Solar Initiative (1) Includes wholly-owned, joint venture operating assets and assets owned by the Managed REITs as of 6/30/23. Western U.S. includes Arizona and California. Central U.S. includes Colorado, Illinois, Indiana, Michigan and Texas. Eastern U.S. includes Florida, Maryland
Slide 26: SmartStop Self Storage REIT, Inc.
al, SmartStop Self Storage REIT, Inc. .. The Smarter Way to Store!”
Slide 27: MSA Exposure – Same-Store
MSA Exposure – Same-Store Same-Store Portfolio at 6/30/23 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 28: MSA Exposure – Total Portfolio
MSA Exposure – Total Portfolio Wholly-Owned Total Portfolio at 6/30/23 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 29: MSA Exposure – Owned & Managed Portfolio
MSA Exposure – Owned & Managed Portfolio Owned and Managed Total Portfolio at 6/30/23 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, Cape Coral - Fort Meyers, Charle
Slide 30: Reconciliation: Net Income (Loss) to Net Operating Income
Reconciliation: Net Income (Loss) to Net Operating Income
Slide 31: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) This gain relates to the mark up in fair value of our preexisting equity interests in SSGT II as a result of our acquisition of control in the SSGT II Merger. This represents the portion of the above stated adjustments in the calculations of FFO and FFO, as adjus
Slide 32: 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 33: Reconciliation: Net Income (Loss) to Adjusted EBITDA: Trailing 5 Quarters
Reconciliation: Net Income (Loss) to Adjusted EBITDA: Trailing 5 Quarters Tax related expense consists primarily of adjustments to deferred tax liabilities, state, federal, and Canadian income tax, as well as state franchise taxes. The contingent earnout adjustment represents the adjustment to the f
Slide 34: Additional Information Regarding FFO & FFO, as adjusted and NOI
Additional Information Regarding FFO & FFO, as adjusted and NOI 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 appropria
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