Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (March 2014)
19 slides from Cubesmart's investor presentation, Mar 3, 2014
Slide 1: Investor Presentation March 2014
Date Investor Presentation March 2014
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 forwardlooking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achi
Slide 3: Self-storage REIT with expansive national platform
Malvern, PA 3 Self Self-storage REIT with expansive national platform 1) Property count as of December 31, 2013. 2) As of December 31, 2013. Market value of common and preferred equity. Book value of debt. 366 526 160 Facilities1 Owned Managed Headquarters $3.5 billion Total Market Cap2 Owned Manage
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
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 high- quality assets assets, with a focus , on targeted markets Maintain investment grade balance sheet that affords
Slide 6: Executing on strategic objectives
6 Executing on strategic objectives Same-Store Results: NOI1 +9.3% Revenue +7.4% Expenses +3.7% NOI Margin 67% 67%(+120 bps) (+$348 million in acquisitions Improved terms on bank financing agreements totaling $800 million million; completed second $250 million unsecured bond offering. 51 new third-p
Slide 7: FFO Per Share Growth
7 1) Funds from operations, as adjusted. Please refer to CubeSmart’s public filings for a detailed explanation of FFO and how it reconciles to a GAAP measure. 2) Year-over-year growth for 2013. External Growth Financial Flexibility Organic Growth FFO Per Share1 Growth +23% 2
Slide 8: Continuation of meaningful occupancy gains
75.0% 80.0% 85.0% 90.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Same Store Occupancy 8 Continuation of meaningful occupancy gains 1) Occupancy at period end. 2012 and 2013 data reflects that of the current same-store pool, as constituted on December 31, 2013. Occupancies prior to 2012 reflect those of t
Slide 9: Historically strong revenue and NOI gains
9 Historically strong revenue and NOI gains Same Same-Store Revenue Growth Growth1 As Reported Same Same-Store NOI Growth Growth1,2 1,2 As Reported 1) Data reflects year-over-year growth rates of the same-store pool as constituted at the time of reporting for each respective period shown. 2) Net ope
Slide 10: Continuation of operational strength
Continuation of operational strength Full Full-Year Guidance Guidance1 $0.98 to $1.02 FFO FFO2 per Share 6.0% to 7.0% NOI Growth 5.0%to 6.0% Revenue Growth 3.0% to 4.0% Expense Growth Same Same-Store Guidance Components: Represents 10% annual growth at the midpoint Driven by occupancy and rate gains
Slide 11: Redefining service in the self-storage industry
11 Redefining service in the self self-storage industry
Slide 12: Enhancing the customer experience at all points of engagement
12 engagement Enhancing the Customer experience at all points of through proprietary systems and processes Reservation Attraction Rental Continued Engagement Sales Center Real-Time Reporting Paperless Leasing In-Store Experience Internet Marketing Revenue Management Website Customer Service
Slide 13: Significant evolution over past six years
13 Significant evolution over past six years Note: Bubbles sized by revenue. 1) Realized annual rent per occupied sq ft is computed by dividing rental income by the weighted occupied sq ft for the period. 2) Includes transactions closed and announced and under contract as of February 27, 2014. Total
Slide 14: Acquisitions and dispositions since 2008
Acquisitions Acquisitions1,2 1,2 14 Focus on building depth in attractive, high high-barrier barrier-to to-entry markets Investment Activity Since 2008 $1.4 billion 139 Stores 1) Transactions closed or announced and under contract from 2008 through February 27, 2014. 2) Includes 50% interest in HHF
Slide 15: Geographic Exposure
Geographic Exposure % of portfolio NOI NOI1 1) Pro forma net operating income; including acquisitions announced and under contract as of February 27, 2014. 15 Targeted investment markets represent 71% of portfolio NOI NOI1
Slide 16: Investment Grade Rating and conservative metrics
16 Objective of funding growth in manner that maintains or improves metrics Investment Grade Rating As of December 31, 2013 Conservative Metrics 41% Debt / Gross Assets 44% Debt + Preferred / Gross Assets 5.6x Debt1 / EBITDA 6.0x Debt + Preferred1 / EBITDA 7% Secured Debt / Gross Assets As of Decemb
Slide 17: Capital structure affords access to full spectrum of capital sources
17 Free Cash Flow Private Public Equity Debt OP Units Free Cash Flow Strategic Dispositions Joint Venture Investment Unsecured Bank Financing Private Placement of Unsecured Debt CMBS / Secured Debt Follow-on Common Equity Offering At-The-Market Equity Program Preferred Equity Public Unsecured Debt o
Slide 18: Summary of industry, growth and balance sheet strengths
Limited new supply, a widening competitive divide between large and small operators, and consolidation continuing industry Robust organic growth fueled by a focus on customer service and continued enhancement of operational infrastructure Meaningful external growth through a disciplined investment p
Slide 19: Investor Relations Contact
Date Investor Relations Contact Charles Place Director, Investor Relations 5 Old Lancaster Rd. Malvern, PA 19355 610.535.5700 cplace@cubesmart.com