Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (June 2018)
26 slides from Cubesmart's investor presentation, Jun 5, 2018
Slide 1: 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 2: 115% 5-year growth in FFO per share; $6.9 billion market cap
115% 5-year Growth in FFO per Share, as Adjusted4 31 June 2018 Investor Presentation 1. As of March 31, 2018 $6.9 Billion MarketCap2
Slide 3: 41 June 2018 Investor Presentation
41 June 2018 Investor Presentation
Slide 4: Integrated strategy to maximize customer acquisition and retention
Integrated strategy to maximize customer acquisition and retention Customer Value Revenue Management Proprietary systems and processes dynamically inform pricing decisions to achieve the ultimate goal of revenue maximization Customer Service Strategic investments in people, training, and technology
Slide 5: Integrated approach across all channels drives customers through the funnel
Integrated approach across all channels drives customers through the funnel Maximize value from each customer through an appealing value proposition Deliver an unparalleled experience to encourage retention and advocacy
Slide 6: Multi-faceted approach to dynamically manage supply/demand balance
Multi-faceted approach to dynamically manage supply/demand balance Attract the greatest share of potential demand Deliver an unparalleled experience to encourage retention and advocacy Demand Forecast/Revenue Optimization Price optimization requires consideration of a multi-dimensional demand landsc
Slide 7: Long-Term Revenue Maximization
Long-Term Revenue Maximization Multi-faceted approach to dynamically manage supply/demand balance sing & Discounting Demand Forecast/Revenue Optimization Balance between Pri the greatest Price optimization of potent requires consideration demand of a multi-dimensional demand landscape & ever-changin
Slide 8: Striving to fulfill our mission of simplifying our customers' organizational challenges
Striving to fulfill our mission of simplifying our customers· organizational challenges .. Attract the greatest share of potential demand Maximize value from each customer through an appealing value proposition SingleEnterprising DownsizingMovingSenior SamRemarried Renovating SoniaErik Dave MaryRyan
Slide 9: Award-Winning Service Culture
Award-Winning Service Culture Attract the greatest share of potential demand Maximize value from each customer through an appealing value proposition 10 IJune 2018 Investor Presentation
Slide 10: Third-Party Owners Continually Choose CubeSmart
Third-Party Owners Continually Choose CubeSmart Owners repeatedly trust their investments to the CubeSmart platform investments Third-Party Managed Properties 600 500 400 300 200 100 0 1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 11: Third-Party Owners Continually Choose CubeSmart
Third-Party Owners Continually Choose CubeSmart Owners repeatedly trust their investments to the CubeSmart platform Smarts national pre fnteFnet structure and proven operational systems consistently drive customers to my property.” - CubeSmart Management Partne Third-Party Managed Properties 11 | Ju
Slide 12: National Platform with a Focus in Core Markets
National Platform with a Focus in Core Markets Our top 12 markets are major metro areas which generate 65°/o of revenue1 • Owned & Managed Managed Only ® Top 12 Market 131 June 2018 Investor Presentation 1. P' Quarter 2018
Slide 13: Enhancing a high-quality portfolio with a focus on top-25 MSAs
Enhancing a high-quality portfolio with a focus on top-25 MSAs 1 100%180 160 2017 3-Mile Population fin thousands) 2 70% 140 61%120 60%55% 40% 100 41% 80 60 20%40 20 0% 0 CUBEPSA EXRLSINSA CUBEPSA EXR LSINSA Continued focus on enhancing our presence in top markets with leading demographics and attra
Slide 14: High-Quality Portfolio
High-Quality Portfolio Industry-Leading Portfolio Enhancing a high-quality portfolio with a focus on top-25 MSAs Storage REIT Exposure to Top 25 MSAs" 2017 3-Mile Population fin thousands} * 10% 180 160 80% = 75% a0. 40 41% 120 35% ore faa 100 40% 0 60 20% 40 20 0% ° CURE PSA XR LSI_UNSA, CUBE PSA X
Slide 15: Adding value through the development of purpose-built, class A stores
Adding value through the development of purpose-built, class A stores N. Palm Beach, F NewiYork, NIYi NewiYork, Ni¥1 Vl c: o...-·- ......... -u ::J ..... e-re u <.( $69.4M Total Brooklyn, NY Fort Worth, TX Grapevine, TX $40.8M Total Chicago, IL (2) Delray Beach, FL $40.0M Total Miami,FL San Diego, C
Slide 16: Enhancing the Portfolio with New Properties
Enhancing the Portfolio with New Properties Adding value through the development of purpose-built, class A stores a $69.4M Total $40.3M Total $40.0M Total Brooklyn, NY Chicago, IL (2) Miami, FL Fort Worth, TX Delray Beach, FL. San Diego, CA No Current C/O Projects Grapevine, TX SS 16 | sone 2018 inc
Slide 17: Disciplined Capital Allocation: Extensive Access to Capital
Disciplined Capital Allocation Extensive Access to Capital Access to the full spectrum of capital sources to meet obligations and fund growth Demonstrated an ability to access a variety of sources of capital, raising over $3.1billion since 2010 • Common Equity • Raised $1.2 billion in net proceeds •
Slide 18: Disciplined Capital Allocation
Disciplined Capital Allocation Access to the full spectrum of capital sources to meet obligations and fund growth Demonstrated an ability to acce: variety of sources of capital, raising Debt to Gross Assets over $3.1 billion since 2010 100.0% oa * Common Equity or = Raised $1.2 billion in net procee
Slide 19: Funds From Operations Growth & Dividend Growth
Disciplined Capital Allocation Funds From Operations Growth & Dividend Growth Growing FFO has generated meaningful increases in distributions $1.75 $1.50 $1.25 $1.00 I $0.75 $0.50 1 $o.25 FFO per Share, as adjusted +15.0% CAGR$1.20 $1.00 $0.80 $0.60 $0.40 $0.20 1 AnnualDividend per Share +24.6% CAGR
Slide 20: Current Operating Environment
Current Operating Environment Self-storage continues to be an attractive sector 21 IJune 2018 Investor Presentation
Slide 21: Sophisticated platform maximizes performance
Sophisticated platform maximizes performance Constantly evolving marketing techniques coupled with dynamic revenue management systems and award-winning customer service drive outperformance I'' I'' I'' I I'. • I 221 June 2018 Investor Presentation Source: CUBE, EXR, PSA,& LSI Company Filings
Slide 22: Executing on strategic objectives
Executing on strategic objectives NOI +4.0% $12.2 million in acquisitions2 Revenue Expenses +3.8% +3.4% 47 new third-party management contracts2 NOIMargin 70.2% $343.7 million in investments under contract4 231 June 2018 Investor Presentation 1. Financial Data from January 1,2018through March 31, 20
Slide 23: CubeSmart: It's what's inside that counts.
CubeSmart: It's what's inside that counts. 241 June 2018 Investor Presentation
Slide 24: Footnotes and definitions
1. Performance as reported for the same-store pool as it was constituted at the end of the respective year 2. Year-ending values as detailed in Company's supplemental packages 3. Calculated as ending common share price / funds from operations per share, as adjusted. Please refer to CubeSmart’s publi
Slide 25: Historical Company Data
Historical Company Data Same-Store Performance’ 2010 2011 2012 201320142015 2016 __—2017 Revenue Growth 0.3% | 3.6% | 3.8% | 74% | 7.2% | 7.3% | 7.0% | 4.4% NOI Growth 1.0% | 5.7% | 6.0% | 9.3% | 9.6% | 9.6% | 10.2% | 5.1% YOY Occupancy Growth [BPS] 1.6% | 2.0% | 3.4% | 5.3% [2.6% | 15% | 08% | 0.2%
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