Cubesmart · NYSE:CUBE
Cubesmart — U-Store-It Trust — UBS Self Storage REIT Summit January 2011
19 slides from Cubesmart's conference presentation, Jan 19, 2011
Slide 1: UBS Self Storage REIT Summit New York January 2011
UBS Self Storage REIT Summit New York January 2011
Slide 2: Forward Looking Statements
Forward Looking Statements 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
Slide 3: Portfolio Overview
YSI has an expansive property portfolio with a national footprint Portfolio Overview 16 52 9 27 4 33 24 44 9 1 3 8 9 5 4 2 9 2 17 24 4 5 1 1 6 1 9 1 3 1 13 1 10 4 9 1 5 7 1 5 4 4 11 Text Key: White/Black – YSI Owned/JV Gray – YSI Managed . 1) Excludes 735 U-Store-It Network facilities. Property Coun
Slide 4: Company Highlights
Company Highlights Diversified Portfolio of High-Quality Assets YSI’s geographic and tenant diversity limits exposure to any single tenant or market. Experienced Management Team The top three executives, Dean Jernigan, Chris Marr, and Tim Martin have an average of approximately 21 years of real esta
Slide 5: Experienced Management Team
Experienced Management Team U-Store-It’s management team has deep publicly-traded REIT and self-storage sector experience. Officer / Position Relevant Experience Officer / Position Relevant Experience Dean Jernigan U-Store-It: Since 2006 Joe Fitzgerald U-Store-It: Since 1994 Chief Executive Officer
Slide 6: Favorable Trends in the Self-Storage Sector
Favorable Trends in the Self-Storage Sector Self-storage has developed a favorable reputation as recession-resilient due to its diverse, defensive demand drivers. Household mobility is the main storage demand driver, which benefits in both economic expansions and contractions. A diversified tenant m
Slide 7: Favorable Trends in the Self-Storage Sector (supply growth)
Favorable Trends in the Self-Storage Sector Industry supply growth has been muted by a challenging financing and operating environment in which small, private operators are struggling to compete. Total construction starts are down by approximately 65% from the levels seen four years ago. Source: Sel
Slide 8: Debt Maturities
Debt Maturities Debt Maturity Schedule (as of 12/31/2010) YSI has numerous avenues to access capital to meet upcoming debt maturities: Retained cash flow Unsecured revolving line of credit ($207 million of availability at 12/31/10) Public equity Preferred equity Unsecured debt Secured debt
Slide 9: Robust Deal Flow: Capital Recycling
Robust Deal Flow Quality Investments Portfolio Enhancement Non-Core Dispositions YSI continues to methodically enhance the scale and quality of its self-storage portfolio Portfolio Management Initiatives Extensive review of investment opportunities from a variety of direct and indirect sources Signi
Slide 10: 2010 Transactions Furthered Portfolio Management Objectives
YSI successfully executed transactions in 2010 that significantly furthered its portfolio management objectives Successful Execution in 2010 Evaluated and vetted roughly 300 transaction opportunities Enhanced future deal flow with the rollout of the 3rd party management platform, which ended the yea
Slide 11: 2010 Acquisition Detail
2010 Acquisition Detail Acquired assets were concentrated in attractive markets with high-growth characteristics, strong demographics, and significant barriers to entry Market Property Count Transaction Value New York, NY 4 $52.5 million Washington, DC 2 $16.5 million Frisco, TX 1 $5.8 million Phila
Slide 12: 2010 Acquisition Detail (continued)
2010 Acquisition Detail (continued) Acquired assets included a mix of stabilized and lease-up properties and, as a testament to the strength of YSI’s proprietary deal flow, were sourced in a variety of ways * 7 acquisitions were sourced from YSI’s managed portfolio, including 5 of the 25 distressed
Slide 13: 2010 Acquisition Detail (continued)
2010 Acquisition Detail (continued) In addition to favorable locations and operating characteristics, acquired assets exhibit exceptional physical quality Herndon, VA Orlando, FL
Slide 14: 2010 Acquisition Detail (continued)
2010 Acquisition Detail (continued) Ridgewood, NY Bronx, NY
Slide 15: 2010 Disposition Detail
2010 Disposition Detail While the acquisitions strengthened exposure to core markets, dispositions effectively pruned exposure to less-attractive, secondary markets Market Property Count Square Footage Inland Empire, CA 14 752,000 Fayetteville, NC 2 96,000 Total 16 848,000 YSI’s rentable square foot
Slide 16: 2010 Quality Upgrade
2010 Quality Upgrade A comparison of operating statistics between 2010 acquisitions and dispositions reflects the ongoing portfolio transformation 1) Disposition data as of September 30, 2010. 2) Data shown for those properties acquired on in-place performance metrics. Data as collected at the time
Slide 17: 3-Year Evolution in Portfolio Composition
3-Year Evolution in Portfolio Composition Significant transaction volume over the past three years has measurably enhanced portfolio composition, as evidenced by a 48% increase in properties located in core markets 1 1 2 2 1) Includes wholly-owned, joint venture, and managed properties. 2) Includes
Slide 18: 3-Year Evolution in 3-Mile Demographics
3-Year Evolution in 3-Mile Demographics Submarket demographic characteristics reflect the continuing quality enhancement of YSI’s portfolio 1) Weighted average (weighted by property square footage) of estimated 2010 Census block group demographic data. 2) Includes wholly-owned, joint venture, and ma
Slide 19: Momentum Into 2011
Momentum Into 2011 Acquisitions Currently targeting to invest $75-125MM in acquisitions in 2011. Goal is to strike a balance between in-place NOI and upside, with a particular focus in the aforementioned core markets. 3rd Party Management Expect to continue to expand the national footprint and furth
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