Shurgard Storage Centers — Merger or Acquisition (September 2005)
14 slides from Shurgard Storage Centers's merger presentation, Sep 26, 2005
Slide 1: Unique Portfolio, Delivering Superior Value
Exhibit 99.1 Unique Portfolio Exhibit 99.1 Delivering Superior Value September 2005’
Slide 2: Forward-Looking Statements
Forward-Looking This in regarding indicated other its presented 2 herein. this report presentation risk presentation on in factors projections in the Form thisforward-looking presentation as contains Statements 10-Q concerning described forfor 2005 statements the reflects more and the quarter statem
Slide 3: Non-GAAP Financial Measures
Non-GAAP Shurgard FFO meaningful amortization reported cash is estimates 3 a supplemental, available is defined by uses to disclosure other Financial its expenses. FFO for 2005 as companies distribution. net non-GAAP innet earnings Measures addition as FFO Shurgard income a supplement includes becau
Slide 4: Why shareholders should reject PSA's proposal
Whyshareholders Our NAV Reduced 4 portfolio growth Our dilution FFO Board prospects isgrowth unique, Rejected would in Reduced cannot be both PSA’s worse Europe be dividend Proposal off replicated due andTax to: theand burden U.S.isare not Execution superior being properly to risk PSA’svalued
Slide 5: Shurgard's Unique Portfolio Cannot Be Replicated
Unique Large 623 Shurgard’s In 30-year 4.2% Substantial, Biggest 139 .Unparalleled (a) and (b) (c) 5 our properties our vs. and view Portfolio history and 3.0% strategic Average Pergrowing New undeniably higher-yield best opportunity (a) in average ofStores European that seven Shurgard same in posit
Slide 6: PSA's Latest Proposal Far Below Our NAV
PSA’s Latest $193.2 Europe Platform Implied (a) (b) Green 6 Proposal SHU Advisors’ (c) 2005. credit million. (d) million (c) Shurgard Shurgard’s (e) The Value / value franchise Represents$2.58 NAV of facilities. Street $52.62 Based Per Formincrease Offers isPSA $117.2 $52.62 per Shurgard value Advis
Slide 7: PSA Proposal Undervalues Our U.S. and European Portfolio
After We PSA 18.9x Shurgard 16.7x .Implied (a) September (c) 7 and Green 2005 believe Proposal 2005E recognizes backing Transaction Shurgard US Street 23, that FFO out Significantly 2005. our Advisors no Multiple an U.S. value U.S. Multiple assumed FFO portfolio for reports (b) Undervalues based our
Slide 8: PSA Proposal Dilutes Shareholders' FFO Growth
PSA’s As 11.3% 8.2% 18.4% PSA 7.2% 2006-2007 Transaction FFO 2006asignificant result ShurgardProposal GROWTH 2007of FFO NOI benefits FFOour Dilutes Growth prudent ‘06-’07 per DILUTION PSA, Shareour (b) (a) investment hurts Shareholders’ (a) Growth Shurgard strategies Rate shareholders GrowthandProsp
Slide 9: Europe G&A Expense Reduction and Value Creation
Area G&A Comments $7.5 $2.0 Europe Targeted 4.5 This Internal Shurgard 6.0 current Total Per Potential ~ More We (a) on 9 $400 0.8x Based Will should annum mm target of $20 than Expense mm levels. Indirect exchange Expense Real Also Annual total European Value SarbOx various expects mm on $8 not is(
Slide 10: Proposal Would Cut Shurgard's Dividend
PSA’s Pro Current SHU $2.24 Shurgard’s Shurgard (a) 10 Forma PSA $2.00 Proposal proposal Based Dividend shareholders Shareholders Annual dividend $1.60 on would Would current Dividend ($0.64) Percent is result would funded Cut (a) PSA (28.6%) Shurgard’s Loss toinbe dividend through Shurgard a tradin
Slide 11: Taxable Transaction Burdens Many Shareholders
Value Our Many Shurgard Taxable Of (a) 11 (b) the individual to institutional last Pro Source:Transaction transaction Shurgard shareholders 18 forma REIT investors shareholders SHU investors structure mergers Reduces Securities pay ownership would Data 100% would only highly Value pay is of two less
Slide 12: Merging with PSA Carries Significant Execution Risk
Proposed Over Merging PSA Integration Shurgard (a) 12 has operates theAverage no different past operates – Transaction of not development 10 under vastly PSA year-over-year years, operating under a–different centralized has isShurgard’s best aor Significant decentralized operating strategies positio
Slide 13: Our Board Is Committed to Serving Shareholders
Our Board The 7 Lead outof Shurgard’s (a) 13 gave Is ofCommitted Directors 9 directors independent serious Institutional corporate fully is and director to are independent Serving careful Shareholder governanceunderstands independent appointedconsideration the Best Services ranking its Initiated in
Slide 14: PSA's Proposal Is Not Good for Shurgard Shareholders
Thenot We Our PSA’s significant Do 14 have Proposal portfolio proposal trade a unique execution superior is Remains dilutes notportfolio being risk long-term our Good properly shareholders’ that forcannot value PSA, valued for Bad begrowth areplicated for short-term Shurgard prospects and PSA’s shor
Shurgard Storage Centers — Merger or Acquisition (September 2005) on 6ix