Slide 1: Investor Presentation March 2013
Investor Presentation March 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 December 31, 2012. As of December 31, 2012. Market value of common equity. Book value of preferred equity and debt. 381 514 133 Facilities1 Owned Managed Headquarters $3.1 billion Total Market Cap2
Slide 4: Attractive industry with favorable economic characteristics
4 Broadening Demand Profile 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 ga
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 +6.0% Revenue +3.8% Expenses -0.1% $442.7 million in acquisitions $250 million debut public unsecured bond offering 29% growth in third-party management program $60.0 million in dispositions $102 million in “at-the-market” equity offering
Slide 7: Accelerating occupancy gains
+180 bps 7 Accelerating occupancy1 gains +360 bps +550 bps +360 bps 1) Period end occupancy for the same-store pool, as constituted on December 31, 2012. 75.0% 77.5% 80.0% 82.5% 85.0% 1Q 2Q 3Q 4Q 2012 2011 79.1% 83.9% 84.8% 84.6% 77.3% 80.3% 81.2% 79.1%
Slide 8: Continuation of recent operational strength
Continuation of recent operational strength Full-Year Guidance $0.80 to $0.86 FFO1 per Share 5.0% to 6.0% NOI Growth 4.75% to 5.25% Revenue Growth 3.5% to 4.5% Expense Growth Same-Store Guidance Components: Represents 12% annual growth at the midpoint Acceleration from 3.8% in 2012 Fueled by occupan
Slide 9: Redefining service in the self-storage industry
9 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 2012 Best of Business Award Best Customer Service Redefining service in the self-storage industry
Slide 10: Optimizing the speed and efficiency of execution
ROSCOE Real-Time Reporting eCRM Relationship Management CubeSmart.com Targeted At-Home Experience 10 Optimizing the speed and efficiency of execution Ability to anticipate & react to changing needs, conditions Lazarus Organizational & Revenue Management Unified Data Warehouse INFO System QlikView Cu
Slide 11: Understanding, targeting, attracting, and engaging our customers
11 Understanding, targeting, attracting, and engaging our customers Customer Capture Conversion
Slide 12: Significant evolution over past five years
12 Significant evolution over past five years Note: Bubbles sized by revenue. 1) 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 December 2012 Acquisitions 2008-2
Slide 13: Acquisitions and dispositions: 5-year investment activity
Acquisitions1 13 Focus on building depth in attractive, high-barrier-to-entry markets 5-Year Investment Activity $992 million 77 Stores 1) Transactions from 2008 through 2012. Dispositions1 $294 million 103 Stores
Slide 14: Core markets represent 62% of portfolio NOI
14 Core markets represent 62% of portfolio NOI1 Same-store assets2 represent 83% of portfolio NOI1 1) Fourth quarter 2012 net operating income. 2) 2013 same-store pool. Added 20 stores to the 2013 same-store pool, including 8 from the Storage Deluxe transaction Our policy is to reconstitute the same
Slide 15: Investment grade rating and debt maturity schedule
15 Objective of funding growth in manner that maintains or improves metrics Investment Grade Rating As of December 31, 2012 Conservative Metrics 41% Debt / Gross Assets 44% Debt + Preferred / Gross Assets 6.1x Debt / EBITDA 6.6x Debt + Preferred / EBITDA 9% Secured Debt / Gross Assets As of December
Slide 16: Capital structure affords access to full spectrum of capital sources
16 Capital structure affords access to full spectrum of capital sources Capital Structure As of December 31, 2012 Common Equity 64% Preferred Equity 2.5% Unsecured Bank Debt 18% Secured Debt 7.5% Public Unsecured Debt 8% % of Total Market Capitalization 1 Market value of common equity. Book value of
Slide 17: Summary of growth drivers
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 18: 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