Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (May 2022)
30 slides from Cubesmart's investor presentation, May 2022
Slide 1: CubeSmart May 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement The forward-looking statements contained in this presentation are subject to various risks and known and unknown uncertainties. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assur
Slide 3: 1. As of March 31, 2022 2. Market value of common equity and book
1. As of March 31, 2022 3. Period ending December 31, 2021 2. Market value of common equity and book value of debt as of March 31, 2022 4. Annual dividends declared in period ending December 31, 2021
Slide 4: Arrival of current management team
Moved Received Grew the portfolio Arrival of current headquarters to Rebranded Investment Grade by over $2.5 billion Storage West management suburban company as credit rating from through acquisitions Acquisition for team Philadelphia CubeSmart Moody’s and S&P and developments $1.7 billion Acquired
Slide 5: Value Creation Strategy
Value Creation Strategy Generate sustainable growth to maximize long-term shareholder value Building an industry leading platform to generate outsized growth from our high quality portfolio, maximizing long-term shareholder value 5| CuBESMART’ ram eo E> Attractive Industry Experienced Management Tea
Slide 6: Self-storage has been a top performing REIT sector through all phases of the economic cycle
Self-storage has been a top performing REIT sector through all phases of the economic cycle with 10-year returns averaging 17%1 Most diverse customer base of any REIT sector, averaging over 650 customers per store Month-to-month rentals allow for rapid repricing in response to changing economic cond
Slide 7: Attractive fundamentals have driven continued evolution of the industry
Attractive fundamentals have driven continued evolution of the industry New ? Supply Sang historical returns have led to increased Continued growth in awareness & utilization new development across many core markets has increased demand for the product Favorable returns have been driving private Sop
Slide 8: Management team
• Chris has been CEO of CubeSmart since January 2014 • Currently the longest-tenured CEO in the sector • Joined the company in 2006, and previously served as Chief Operating Officer, Chief Investment Officer, and Chief Financial Officer • Currently serves on the board of NAREIT • Tim has been CFO of
Slide 9: Execution on core operations and portfolio growth
• Execution on our core operations has driven strong organic growth • We continue to grow the portfolio through all available avenues to maximize risk-adjusted returns for shareholders, including meaningful cash flow growth
Slide 10: Attracting the greatest share of potential demand
Attracting the Proprietary Building a Award-winning greatest share of systems and foundation of customer service potential demand processes to proprietary platform delivers through dynamically solutions to an unparalleled continually generate pricing improve experience evolving digital decisions in
Slide 11: Marketing and operating platform
• SEO-focused content creation • Website A/B Testing • Optimized customer rate • Targeted local marketing efforts • Conversion funnel analysis and increase model • Exploratory marketing channels optimization by a team of data • Award winning customer service • Sophisticated brand scientists • Intern
Slide 12: Digital rental and customer app
Launched: April 2020 Launched: September 2020 • Ability to rent online from any web-enabled device • Rent a cube and find new locations, contact-free • Customers can reserve their unit, sign a lease, pay & • Access personal gate codes move in without interacting with CubeSmart • Pay bills & set up a
Slide 13: Portfolio by market
Boston 3% NY/NJ/LI Chicago 21% Staten Island 6% Phila. 0.4% 3% Wash DC Queens 6% 5% North NJ 4% Brooklyn Long Island 4% 1% LA So. CA Westchester 2% 3% Bronx 2% Atlanta 5% Phoenix 3% 3% Dallas 6% Orlando States with Owned Stores 2% States with Managed Stores Only Miami 9% 1. During the quarter ended
Slide 14: Third-party research on the sector
1. Source: Evercore ISI Research Report dated March 9, 2021 2. Source: Evercore ISI Research Report dated May 27, 2020
Slide 15: Storage West acquisition
• Consistent with stated investment strategy of focusing on high-quality, attractive top-40 MSAs • Expands existing market concentration in Southern California (San Diego, Orange County, and Inland Southern Empire), Phoenix, Las Vegas, and Houston California • Attractive high barrier-to-entry submar
Slide 16: High population density creates strong demand profile
High population density Renters boost demand NYC square foot per creates a strong as they are 3.9x more capita is substantially demand profile around likely to move than lower than the industry our stores homeowners average 11 1 2 00 1. Source: CubeSmart 3-mile portfolio demographics 2. CubeSmart in
Slide 17: NYC zoning and supply constraints
• In 2017, NYC passed a zoning amendment that required a special permit for self-storage to be built in the Industrial Business Zones (IBZs) • The IBZs reduced the land that was previously zoned by- right for storage by 49%1 • NYC excluded all self-storage development from eligibility under the Indu
Slide 18: External growth strategy
Focus on markets with strong demographics to drive long- term value Build and acquire Class-A properties in core infill locations by leveraging local developer expertise Invest with partners to expand national footprint and improve returns for lease-up opportunities Expand scale of platform, generat
Slide 19: Development projects
1 Our development projects are 12 Projects 3 Projects 3 Projects 2 Projects projected to create over $400 million in value at stabilization2 2 Projects 2 Projects 2 Projects 2 Projects 1. As of March 31, 2022 3. Other markets include San Diego, CA and Philadelphia, PA 2. Proforma based on stabilized
Slide 20: Joint venture strategy
Strong returns through levered structures and promotes Opportunity to purchase assets at the end of the hold period Fee revenue increases our return profile Market and cash flow diversification Mitigates dilution of lease- up properties 28 properties 28 properties 13 properties 14 properties 5 prope
Slide 21: Third-party management platform
CubeSmart management has grown to the second largest stores on the national management platform4 as we continue to expand platform1 our national footprint and brand while increasing efficiency Fees from the management business contribute management meaningfully to FFO growth fees2 acquisitions The m
Slide 22: Investment grade balance sheet
“CubeSmart’s Baa2 senior unsecured rating reflects the REIT’s good financial flexibility and modest use of leverage.” - Moody’s Investors Service 1. Source: Company Filings, as of December 31 of each stated year 2. Calculated as annual EBITDA / Interest Expense
Slide 23: Ample liquidity to manage near-term capital needs
Ample liquidity to manage near-term capital needs Proven ability to access a variety of sources of Capital Needs: $75.3M through 20231 capital, raising $6.4 billion since 2010 • $23.9M of remaining development commitments • Common Equity: raised $2.5 billion in net proceeds • $31.4M of debt maturiti
Slide 24: Environmental initiatives
Since 2015, CubeSmart has completed Since 2010, CubeSmart has installed 86 lighting retrofits at 257 owned stores in energy management systems at owned 21 states and DC. Last year we upgraded stores to monitor and automate a store’s over 4,000 lighting fixtures saving an interior temperature and tim
Slide 25: Engaging with customers, teammates and communities
Engaging with our customers, teammates and communities Charitable Donations 2 Investments in Our Teammates Establishment of programs designed to increase Teammate engagement, recognition and development Match employee contributions to charitable organizations through our Gift Matching Program Soe Cu
Slide 26: Corporate governance
• Annual election of trustees • Separate position of Board • Share ownership guidelines for • Annual say-on-pay votes Chair & Chief Executive executive officers and trustees • Single voting class of stock Officer • Anti-hedging & anti-pledging • Shareholder right to call special • Regular executive
Slide 27: First quarter 2022 same-store results
1. Same-store results for the three months ending March 31, 2022 3. As of March 31, 2022 2. For the three months ending March 31, 2022
Slide 28: Summary
Maximizing property cash flows to generate long-term value through a continually evolving marketing, revenue management, and customer service platform An investment-grade balance sheet provides the strength and flexibility to access the full array of capital sources to finance growth opportunities P
Slide 29: Same-Store Performance
Same-Store Performance1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Revenue Growth 3.6% 3.8% 7.4% 7.2% 7.3% 7.0% 4.4% 3.3% 1.9% 0.8% 13.1% NOI Growth 5.7% 6.0% 9.3% 9.6% 9.6% 10.2% 5.1% 3.3% 1.1% 0.1% 17.2% YOY Occupancy Growth (BPS) 2.0% 3.4% 5.3% 2.6% 1.5% 0.8% 0.2% (0.2%) 0.0% 2.2% 1.8
Slide 30: @
@