Public Storage · NYSE:PSA
Public Storage — Public Storage (PSA, PSA-PF, PSA-PG, PSA-PH, PSA-PI, PSA-PJ, PSA-PK, PSA-PL, PSA-PM, PSA-PN, PSA-PO, PSA-PP, PSA-PQ) — Investor Day (May 2021)
151 slides from Public Storage's investor day presentation, May 3, 2021
Slide 1: Investor Day May 3, 2021
Exhibit 99.1 Investor Day May 3, 2021Exhibit 99.1 Investor Day May 3, 2021
Slide 2: Important Information
Important Information FORWARD-LOOKING STATEMENTS: All statements in this presentation, other than statements of historical fact, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements i
Slide 3: Welcome to Public Storage
Welcome to Public Storage 3 3Welcome to Public Storage 3 3
Slide 4: Agenda
Agenda Ownership in Growing Platforms Company Overview 1 5 Organic Growth Powered by Innovation Balance Sheet Strategy & Outlook 2 6 Q&A Panel Four-Factor Acceleration of Portfolio Growth Q&A Panel 3 7 Q&A Panel Complementary Growth Engines 4 4 4Agenda Ownership in Growing Platforms Company Overview
Slide 5: Company Overview
1 Company Overview 51 Company Overview 5
Slide 6: Introduction
Introduction Joe Russell Chief Executive Officer 6 6Introduction Joe Russell Chief Executive Officer 6 6
Slide 7: The Leading Self-Storage Owner, Operator & Developer
The Leading Self-Storage Owner, Operator & Developer $ 1972 2,600+ 2.9B founded facilities 2020 revenues $ 5,600 182M 2.0B employees net rentable 2020 NOI square feet 1.6M 39 customers states in place Source: Company filings and data Note: As of 3/31/21 unless otherwise noted. Property count, square
Slide 8: The Self-Storage Industry Leader
The Self-Storage Industry Leader Iconic Brand Unmatched Scale Best Portfolio Greatest consumer awareness #1 position in 14 of our 15 top markets 2.2x the number of owned stores relative to our next competitor Marketing cost advantages Data history and access advantages Most “A” locations Employee pr
Slide 9: The Portfolio Growth Leader
The Portfolio Growth Leader Portfolio Square Feet Added (millions) Past Fifteen Years Past Ten Years Past Two Years 90 52 20 42 52 32 21 9 15 18 6 4 2 Public Extra Space Life Storage CubeSmart Public Extra Space Life Storage CubeSmart Public National Extra Space CubeSmart Life Storage Storage Storag
Slide 10: The Leading Self-Storage Operator
The Leading Self-Storage Operator Rental Revenue Net Operating Income 1 Operating Margin 1 1 Per Available Square Foot Per Available Square Foot 76% $16.40 $14.05 $12.86 $10.20 70% Public Storage Self-Storage Public Storage Self-Storage Public Storage Self-Storage REIT Peer Average REIT Peer Average
Slide 11: Increasing Adoption is a Secular Demand Tailwind
Increasing Adoption is a Secular Demand Tailwind Self Storage Utilization % of U.S. Population Using Self Storage 10% 9% 9% 8% Expanding endorsement of 7% the utility and convenience 6% of self storage 5% 4% 3% 3% 2% 1% 0% Source: U.S. Census and Self-Storage Almanac 11 11 1987 1988 1989 1990 1991 1
Slide 12: Embedded Generational Demand
Embedded Generational Demand U.S. Population by Age and Generation in 2020 (Millions) 5.0 4.0 3.0 Two of the most populous Future Core Core Customer Base generations in history are 2.0 Customer 30 – 60 years old aging into our core 1.0 consumer life stage 0.0 0 12 24 36 48 60 72 84 96 Age Silent Gre
Slide 13: Competitive Advantages for the Future
Competitive Advantages for the Future High-Integrity Team & Culture An innovation-driven culture with broad diversity Unmatched Scale & Locations Multi-Lever External Growth Half of the U.S. population lives Unique acquisition, development, and within a Public Storage trade area redevelopment expert
Slide 14: Our Commitment to Sustainable Value Creation
Our Commitment to Sustainable Value Creation Social Environmental Governance A Low Impact Company A People Focus Integral to operational, financial, and reputational resilience Light footprint I Energy, carbon, water, and waste PS Cares Emergency Fund I Established to Significant board refreshment I
Slide 15: Exceptional Team Focused on Growth
Exceptional Team Focused on Growth Joe Russell Tom Boyle Natalia Johnson Nathan Vitan Michael Braine David W. Collins Richard Craig Chief Executive Officer Chief Financial Officer Chief Administrative Chief Legal Officer Chief Technology VP, Revenue VP, Head of Officer Officer Management Marketing 1
Slide 16: Leadership, Innovation, Growth
Leadership Innovation Growth Most recognized brand Digital customer experience Revenue growth and expense control Best locations Technology platform Portfolio expansion through acquisition, development, and redevelopment Great people Operating model transformation Third party management Strongest ba
Slide 17: Who We Are: People, Culture, Empowerment
Who We Are People, Culture, Empowerment Natalia Johnson Chief Administrative Officer 17 17Who We Are People, Culture, Empowerment Natalia Johnson Chief Administrative Officer 17 17
Slide 18: Our People Power the Public Storage Brand
Our People Power the Public Storage Brand 18Our People Power the Public Storage Brand 18
Slide 19: Our Winning Culture
Our Winning Culture Market Leadership Integrity & Accountability Entrepreneurship Seek, hire, and retain great people Enhance competitive advantages embracing the mottos “Do the right through a focus on ideation, thing” and “Tell it like it is” experimentation, and innovation Development & Advanceme
Slide 20: Diverse Workforce Reflects Our Local Communities
Diverse Workforce Reflects Our Local Communities Proud to have a diverse and inclusive workforce that reflects the communities we serve Our 5,600 person workforce is: % 32 % % 39 52 % 69 People of Female People of Female Color Managers Color Managers % % 10 35 Baby Boomer Gen X Age Distributed % 15
Slide 21: Team of Experienced Industry Experts
Team of Experienced Industry Experts Average Tenure Tenured industry experts 9 Years 6 Years Corporate employees Field management Robust succession planning Hiring forward-looking expertise 6 Years 4 Years Call center employees Property management 21 21Team of Experienced Industry Experts Average Te
Slide 22: Investing in the Best Team in the Industry
Investing in the Best Team in the Industry >$ Training and Development 10M • Blended learning approach PS Cares Emergency Fund • 68 hours / person / year • Personal and career based coaching % 80 Employee Engagement Employee survey participation rate • Constant feedback • Annual anonymous survey • F
Slide 23: A Competitive Market-Level Approach to Wages
A Competitive Market-Level Approach to Wages Market based approach to attract and retain talent We target to be within 10% of the retail median in each market Analytical and real time adjustment of wages to attract and retain Monthly incentive contest to engage and motivate performance Increased our
Slide 24: Thriving Careers Behind the Orange Door
Thriving Careers Behind the Orange Door Roger Brandi Tony VP, Continuous Improvement Delinquent Tenant Specialist Divisional Manager 11 years 14 years 23 years 24Thriving Careers Behind the Orange Door Roger Brandi Tony VP, Continuous Improvement Delinquent Tenant Specialist Divisional Manager 11 ye
Slide 25: 2525
25 2525 25
Slide 26: Organic Growth Powered by Innovation
2 Organic Growth Powered by Innovation 262 Organic Growth Powered by Innovation 26
Slide 27: Organic Growth Powered by Innovation
Organic Growth Organic Growth Po Powered by Innovati wered by Innovation on Customer Experience Advancement Digital and in-store, Property of Tomorrow NOI Growth through Innovation Operating Model Transformation Data Science Driven Revenue Growth Increase customer satisfaction at a lower cost Revenu
Slide 28: The Customer Experience
The Customer Experience <<< Customer Experience Video Shown Here >>> 28The Customer Experience <<< Customer Experience Video Shown Here >>> 28
Slide 29: Brand & Customer Acquisition
Brand & Customer Acquisition David W. Collins VP, Head of Marketing 29 29Brand & Customer Acquisition David W. Collins VP, Head of Marketing 29 29
Slide 30: Power of the Public Storage Brand
Power of the Public Storage Brand Technology Largest national footprint of any self-storage provider with high visibility physical recognition — “Buildings as Billboards” Scale Public Storage was the top search term for our industry in 2020 Branded search represents 43% of our paid search volume at
Slide 31: Unparalleled Brand Recognition & High Customer Satisfaction
Unparalleled Brand Recognition & High Customer Satisfaction Which Of The Self Storage Companies Are You Aware Of? Highly Rated: “Has Friendly & Courteous Staff” Public Storage 73% “Excellent Service” 4.8 Rating CubeSmart 47% Highly Rated: “Is a Company I Can Trust” Extra Space 38% Life Storage 36% 4
Slide 32: Customer Journey Begins Online
Customer Journey Begins Online Optimized Website Paid Search Maps & SEO (Search Digital Engine Optimization) Marketing A disciplined and centralized approach Enhanced visibility through Top-of-mind campaigns coding and content through display and media-buying activities 32Customer Journey Begins Onl
Slide 33: Paid Search
Paid Search Top Five Search Terms % 43 1. Public Storage $ per click of our paid search move-ins are generated by the term 2. Storage Units Near Me $$$ per click “Public Storage” 3. Storage Near $$$ per click Terms Ranked In 4. Storage Units $$$ per click Order of Industry % Search Volume 5. Storage
Slide 34: Two-Thirds of Search Traffic Comes at No Cost
Two-Thirds of Search Traffic Comes at No Cost SEO Results — Top 20 Industry Terms Public Storage Visibility In 93% Unpaid Search Results 0% 20% 40% 60% 80% 100% Maps Public Storage showed an organic listing for 93% of top self-storage Google searches 2/3 of our search traffic comes at no media cost
Slide 35: Targeted Digital Marketing
Targeted Digital Marketing 35Targeted Digital Marketing 35
Slide 36: Digital Marketing Strategy Paired with the Leading Brand
Digital Marketing Strategy Paired with the Leading Brand Digital Strategy Focused on 4 Key Pillars Dedicated team of talented professionals Centralized 25 Digital Strategy digital strategy employees Brand Advertising / Search Engine Delivers Best Marketing Efficiency Dedicated budget for digital mar
Slide 37: Marketing Advantages of Brand and Scale
Marketing Advantages of Brand and Scale Five-Year Average Marketing Spend (% of Same Store Revenues) Brand, Scale, and Expertise 2.4% lead to lower customer 2.2% acquisition costs 1.7% 1.7% Public Storage CubeSmart Extra Space Life Storage Source: Company filings 37 37 Note: National Storage Affilia
Slide 38: Customer Experience & Operations
Customer Experience & Operations Steven Lentin EVP, Field Operations 38 38Customer Experience & Operations Steven Lentin EVP, Field Operations 38 38
Slide 39: Committed to a Best-In-Class Experience
Committed to a Best-In-Class Best Digital Customer Locations Experience Experience Outstanding Service 39Committed to a Best-In-Class Best Digital Customer Locations Experience Experience Outstanding Service 39
Slide 40: Best Locations Across the Best Markets
Best Locations Across the Best Markets Top 15 Markets 1. Los Angeles 9. Dallas 2. San Francisco 10. Houston 3. New York 11. Orlando 4. Seattle 12. Philadelphia 5. Washington DC 13. West Palm Beach 6. Miami 14. Tampa 7. Chicago 15. Charlotte 8. Atlanta Source: Company filings and data 40 40 40Best Lo
Slide 41: Omnichannel Customer Experience
Omnichannel Customer Experience WebCHAMP2, our proprietary Reservation Channels centralized operating system, enables all channels Desktop Mobile Call Center Property Office Affiliates Integrated digital transactions Move-In Options Consistent and optimized ® experience across all channels Property
Slide 42: Removing Friction from the Move-In Process
Removing Friction from the Move-In Process ® Online eRental agreement utilization by new customers Public Storage Life Storage ≈ Rent and pay for your space online — today. Skip the rental counter and head CubeSmart straight to your space on move- in day. Extra Space 0% 5% 10% 15% 20% 25% 30% 35% 40
Slide 43: Ensuring a Consistent and Quality Experience
Ensuring a Consistent and Quality Experience Digital Experience People Interaction Properties • Comprehensive training curriculum • Modern responsive website • Holistic brand refresh • 85%+ of customers visit the website • Standardized sales processes • Higher visibility with the building being the
Slide 44: Investing in Our Properties
Investing in Our Properties John Sambuco President, Asset Management 44 44Investing in Our Properties John Sambuco President, Asset Management 44 44
Slide 45: Property of Tomorrow
Property of Tomorrow Holistic Brand Refresh Before After Select Program Enhancements: Public Storage Orange Large sign format Updated office Before After Smart property elements Environmental efficiencies Smart property elements 45Property of Tomorrow Holistic Brand Refresh Before After Select Progr
Slide 46: Making Our Properties Smart and Efficient
Making Our Properties Smart and Efficient System-wide upgrades to our assets Developed Digital Property LED Lighting and Solar Power Access Systems Portfolio-wide lighting program in progress Developed in partnership with OpenTech (external lighting is complete and internal Alliance will be 50% comp
Slide 47: Our Low-Impact Footprint
Our Low-Impact Footprint Environmental Intensities Environmental Highlights Low Impact I Inherently light Other Property Public Storage Metric Public Storage 1 Type Average Relative Impact footprint that we further reduce through initiatives such as our transition to paperless Energy Consumption (kW
Slide 48: Accelerating the Program Completion Outlook
Accelerating the Program Completion Outlook (by % of property revenues) properties 2,100 $ 100% total investment 600M 85% 70% Executed by a 75 75-person team 55% 35% Prioritizing high 15% revenue markets 2018-2020 2021E 2022E 2023E 2024E 2025E 48 48Accelerating the Program Completion Outlook (by % o
Slide 49: Property of Tomorrow's Benefits
Property of Tomorrow’s Benefits Further strengthening the industry’s number one brand Better customer experience Better employee experience Greater economic and environmental efficiency 49 49Property of Tomorrow’s Benefits Further strengthening the industry’s number one brand Better customer experie
Slide 50: The Digital Transformation of Self-Storage Operations
The Digital Transformation of Self- Storage Operations Natalia Johnson Michael Braine Chief Administrative Officer Chief Technology Officer 50 50The Digital Transformation of Self- Storage Operations Natalia Johnson Michael Braine Chief Administrative Officer Chief Technology Officer 50 50
Slide 51: Digital Company with Optimized Data-Driven Operations
Digital Company with Optimized Data-Driven Operations Wired Property, Our customer journey is fully Self-Service Asset Management Leasing & Office digitized and our asset management digital transformation is well underway, providing: An exceptional customer experience Smart Cameras & Security Optimi
Slide 52: Best Technology Platform in the Industry
Best Technology Platform in the Industry Customer Omnichannel customer acquisition Technology enabled properties Experience and account management Proprietary WebCHAMP2 Data Science and Advanced Analytics Platform Self-Storage Operating systems for customer Revenue management and data-driven decisio
Slide 53: Digital Operations to Drive Performance
Digital Operations to Drive Performance Digitized, machine learning, and AI-enabled operations Labor Management & Call Center Scheduling Technology Robots and AI create scale and improve performance Optimize labor based on Digital Company initiatives drive customer demand ability to scale and optimi
Slide 54: Enterprise Platform Supports Data Driven Decisions
Enterprise Platform Supports Data Driven Decisions Customer • Channel move-in • Payment patterns preference • Service inquires • Property usage Acquisition & Development • Move-out data patters • Historical • Real estate value performance • Demographic data • Yields Revenue Management & Marketing •
Slide 55: Transforming the Self-Storage Operating Model
Transforming the Self-Storage Operating Model Public Storage Evolution Legacy Operating Model The right people at the right time to meet customer demand ® • 100% in-person • ~50% eRental and growing Customer Move-In 1 Preference • 45 minute average rental time • 6 minute average eRental® time • Full
Slide 56: The Digital Transformation of Self-Storage
The Digital Transformation of Self-Storage Optimization is technology enabled and driven by customer preference Improved Customer Experience Enhanced Employee Experience Better Operating Efficiency Better customer service Optimized hours Increased data for revenue management Expedited self-service l
Slide 57: Revenue Management & Data Science Discussion
Revenue Management & Data Science Discussion Tom Boyle Philip Kim Chief Financial Officer Chief Data and Analytics Officer Richard Craig VP, Revenue Management 57 57Revenue Management & Data Science Discussion Tom Boyle Philip Kim Chief Financial Officer Chief Data and Analytics Officer Richard Crai
Slide 58: Leading the Industry in Data and Analytics
Leading the Industry in Data and Analytics Sales Funnel Customer Market & Competition Property & IoT Search engine demand & WebCHAMP2 CRM interaction data New & future storage supply Revenue and pricing experiments performance Lifetime customer value Asset quality of supply Local move in/out history
Slide 59: Customer Touchpoints By the Numbers
Customer Touchpoints By the Numbers 1.1 Billion 5+ Million 240K 46 Million Search and Ad Impressions Web sessions for analysis Online web/app payments App downloads 30 Million 1.4 Million 850K 280K 59 Property visits details + IoT events for entry/exit, elevator usage, eLocks Customer calls Service
Slide 60: Leveraging our Data for Customer Engagement
Leveraging our Data for Customer Engagement Integrated system of people, process and data for analytics and machine learning Customer Omni-channel The multiple ways that a customer can Onsite / Property Call Center Website Mobile App choose to interact with us Centralized data Centralized data creat
Slide 61: Analyzing eRental Launch
® Analyzing eRental Launch (first 9 months) ® <<< eRental Animation Shown Here >>> Fast customer adoption Now nearly 50% of leases ® are via eRental Great success with continual improvement via funnel analysis 61® Analyzing eRental Launch (first 9 months) ® <<< eRental Animation Shown Here >>> Fast
Slide 62: Maximizing Our Revenues
Maximizing Our Revenues Dimensions of Revenue Move in Price Move in Volume Maximize Revenue Tenant Rate Increases Length of Stay 62Maximizing Our Revenues Dimensions of Revenue Move in Price Move in Volume Maximize Revenue Tenant Rate Increases Length of Stay 62
Slide 63: Core Pricing Models
Core Pricing Models Vacate & Inventory Demand Price Overbooking Tenant Rate Increase Forecast Forecast Optimization Management Machine Learning Industry Leading Datasets Data Driven Optimization Billions of Records Revenue Optimization 63 63Core Pricing Models Vacate & Inventory Demand Price Overboo
Slide 64: Optimizing Price & Maximizing Revenue
Optimizing Price & Maximizing Revenue High Sensitive Insensitive Low High Low Price 64 Move In VolumeOptimizing Price & Maximizing Revenue High Sensitive Insensitive Low High Low Price 64 Move In Volume
Slide 65: Optimizing Price & Maximizing Revenue
Optimizing Price & Maximizing Revenue <<< Pricing Animation Shown Here >>> High Low High Low Price 65 Move In VolumeOptimizing Price & Maximizing Revenue <<< Pricing Animation Shown Here >>> High Low High Low Price 65 Move In Volume
Slide 66: Elasticity of Demand & Price
Elasticity of Demand & Price Price vs Conversion Optimal price for maximum revenue 66Elasticity of Demand & Price Price vs Conversion Optimal price for maximum revenue 66
Slide 67: Key Technology Trends
Key Technology Trends Leveraging technology, people and process speeds time to market and lowers development cost Cloud Computing Big Data Machine learning 67Key Technology Trends Leveraging technology, people and process speeds time to market and lowers development cost Cloud Computing Big Data Mac
Slide 68: Using Machine Learning to Recommend a Price
Using Machine Learning to Recommend a Price Better data = better prediction Billions of customer touchpoints + pricing tests Extensive Public Storage data over decades for 2,600+ Public Storage sites can explain real Random Random Random Random world scenarios Data subset Data subset Data subset Dat
Slide 69: Customer Churn – Newer vs Older Customers
Customer Churn – Newer vs Older Customers <<< Customer Churn Animation Shown Here >>> Newer Customers Older Customers Less than 6 month tenure Greater than 6 month tenure 24% of tenants 76% of tenants 69Customer Churn – Newer vs Older Customers <<< Customer Churn Animation Shown Here >>> Newer Custo
Slide 70: Existing Tenant Increase Sensitivity
Existing Tenant Increase Sensitivity Change in Price vs Change in Attrition Key Features • Customer Information ∆ Price ∆ Attrition • Market Intelligence • Customer Behavior • Rental Characteristics • Facility Access History Rent Increase Magnitude % 70 Incremental Attrition %Existing Tenant Increas
Slide 71: Rate Increase Magnitude Varies Significantly
Rate Increase Magnitude Varies Significantly 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 Customer Base 71 Rent Increase %Rate Increase Magnitude Varies Significantly 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 Customer
Slide 72: Evolution of Revenue Management
Evolution of Revenue Management Real time Big data / ML Intraday surge Psychographic Web data Adaptive pricing Behavioral data High frequency Sales channel pricing Competitive data Demography Higher frequency Today Future Rules based Low frequency 72Evolution of Revenue Management Real time Big data
Slide 73: Supporting Site Selection
Supporting Site Selection Using proprietary data to model & score multi- billion dollar development & acquisition pipeline 73Supporting Site Selection Using proprietary data to model & score multi- billion dollar development & acquisition pipeline 73
Slide 74: Same Store Growth Outlook
Same Store Growth Outlook Tom Boyle Chief Financial Officer 74 74Same Store Growth Outlook Tom Boyle Chief Financial Officer 74 74
Slide 75: Industry Leading Revenue Generation
Industry Leading Revenue Generation Highest Rental Revenue Per Available Square Foot 2 Rent-Driven Revenue Growth 1 in 12 of our Top 15 Markets Occupancy 96% Public Storage Self-Storage REIT 92% Peer Average 88% 84% San Francisco Los Angeles Atlanta st 80% Tampa 1 New York Dallas 4Q10 4Q12 4Q14 4Q16
Slide 76: Strengthening Our Operating Leadership Position
Strengthening Our Operating Leadership Position 1 Same-Store NOI Margin 2 Plan to increase margins by 2%+ over the next three years 75.9% Operating model transformation leading to 25% payroll cost savings Solar power and LED light returns leading to 30% utility cost savings 71.3% 70.5% 70.1% 66.8% P
Slide 77: A Strong Outlook Driven by Platform Innovation
A Strong Outlook Driven by Platform Innovation Favorable Outlook Annual Same-Store NOI Growth Strong demand trends 4.0% Improving supply trends 3.5% 3.0% Platform innovation improving margins 1.7% Five-Year Long-Term Outlook Margin expansion from operating model Historical Average and efficiency inv
Slide 78: Growth Powered by Innovation Q&A
Growth Powered by Innovation Q&A 78 78Growth Powered by Innovation Q&A 78 78
Slide 79: Four-Factor Acceleration of Portfolio Growth
3 Four-Factor Acceleration of Portfolio Growth 793 Four-Factor Acceleration of Portfolio Growth 79
Slide 80: Portfolio Enhancement Through Investment & Growth
Portfolio Enhancement Through Investment & Growth Joe Russell Chief Executive Officer 80 80Portfolio Enhancement Through Investment & Growth Joe Russell Chief Executive Officer 80 80
Slide 81: Multiple Growth Drivers Maximize Opportunity
Redevelopment New Development Multiple Growth Drivers Maximize Opportunity Third-Party Management The only four-factor external growth program Acquisitions among the self-storage REITs provides: Broad domestic and international opportunity Optionality through market cycles 81Redevelopment New Develo
Slide 82: Unrivaled Capabilities
Unrivaled Capabilities In-House Expertise Analytics and Underwriting Reputation and Execution § Most experienced and knowledgeable § Underwriting focus§ The preferred buyer teams in the industry (50+ people) ⎻ Cash flow profile and real estate value⎻ No contingency, execution certainty, cash buyer,
Slide 83: Driving Value Creation through Acquisitions and Development
Driving Value Creation through Acquisitions and Development 1 Investment Since 2010 % 7.7 16% 2 Stabilized NOI yield New Development 12% Redevelopment $ 6.2B $ Acquisitions 3.4B 3 72% Value creation Source: Company filings and data 1. Includes YTD investments closed as of 3/31/21. 2. Estimated stabi
Slide 84: Accelerating Capital Deployment in an Attractive Growth Environment
Accelerating Capital Deployment in an Attractive Growth Environment Annual Investment Volume (millions) $2,915 $906 $793 $522 2018 2019 2020 2021E Development Acquisitions Source: Company filings and estimate 84Accelerating Capital Deployment in an Attractive Growth Environment Annual Investment Vol
Slide 85: Fragmented Industry Provides Opportunity
Fragmented Industry Provides Opportunity Self-Storage Market Share | Square Feet Owned Self-Storage Development Share | Since 2014 3.9% 9.4% 4.6% 2.6% 2.5% 79.0% 2.0% 96.1% The only self-storage REIT with a property development platform Source: Company filings, Self-Storage Almanac, and Yardi Matrix
Slide 86: Portfolio Enhancement & Growth
Portfolio Enhancement & Growth <<< Portfolio Enhancement & Growth Video Shown Here >>> 86Portfolio Enhancement & Growth <<< Portfolio Enhancement & Growth Video Shown Here >>> 86
Slide 87: Development
Development Andres Friedman SVP, Development 87 87Development Andres Friedman SVP, Development 87 87
Slide 88: Nationwide Development Strategy
Nationwide Development Strategy 1 Development Since 2010 $ 1.7B 1 Investment since 2010 % 8.6 2 Stabilized NOI yield $ 1.3B 3 Value creation Source: Company filings and data 1. Includes YTD investments closed as of 3/31/21. 2. Estimated stabilized NOI (typically achieved in years 3 to 5 of operation
Slide 89: Development Platform Drives Exceptional Returns
Development Platform Drives Exceptional Returns 1 Development — The Public Storage Way NOI Yield by Development Vintage Largest in-house development program in the industry 12.7% 50+ person team and growing 11.0% 8.0% Expected Average Data-driven submarket and site selection 7.6% 6.3% Optimized prop
Slide 90: Multi-Faceted Development Strategy for Growth and Optimization
Multi-Faceted Development Strategy for Growth and Optimization New Development Redevelopment Conversion / Adaptive Reuse Land acquisition Expand opportunity on existing Repurposing existing real estate properties Ground-up construction Expands investment opportunities Increased densification for por
Slide 91: Downtown Seattle New Development
Downtown Seattle New Development $ 26M Before After Total investment % 8.3 1 Stabilized NOI yield $ 43M Estimated stabilized 2 market value 2,209 148,000 % Units Square Feet 65 2 Value creation margin Source: Company filings and data 1. Estimated stabilized NOI as a percent of total cost (including
Slide 92: Los Angeles Redevelopment
Los Angeles Redevelopment $ 27M Before Total investment After % 10.4 1 Stabilized NOI yield $ 56M Estimated stabilized 2 market value 3,958 260,300 % Units Square Feet 107 2 Value creation margin Source: Company filings and data 1. Estimated stabilized NOI as a percent of total cost (including land)
Slide 93: San Francisco Bay Area Conversion
San Francisco Bay Area Conversion $ 29M Before After Total investment % 12.3 1 Stabilized NOI yield $ 71M Estimated stabilized 2 market value 4,504 320,000 % Units Square Feet 145 2 Value creation margin Source: Company filings and data 1. Estimated stabilized NOI as a percent of total cost (includi
Slide 94: National U.S. New Development is Slowing
National U.S. New Development is Slowing Estimated National Self-Storage Supply Growth 6% 5% 4% Moderation in progress given oversupply and COVID 3% interruptions 2% 1% 0% 2015 2016 2017 2018 2019 2020 2021E 2022E Source: Yardi Matrix and Public Storage 94 94National U.S. New Development is Slowing
Slide 95: Accelerating Development Deliveries
Accelerating Development Deliveries Development outlook is increasingly favorable for Public Storage due to unique competitive advantages Development Delivery Outlook (millions) Flexing the Power of the Platform & Brand $700 New supply growth slowing Public Storage is growing the pipeline Land acqui
Slide 96: Acquisitions
Acquisitions Michael McGowan SVP, Acquisitions 96 96Acquisitions Michael McGowan SVP, Acquisitions 96 96
Slide 97: Nationwide Acquisition Strategy
Nationwide Acquisition Strategy 1 Acquisitions Since 2010 $ 4.4B 1 Investment % 7.7 2 Stabilized NOI yield $ 2.4B 3 Value creation Source: Company filings and data 1. Includes YTD investments closed as of 3/31/21. 2. Estimated stabilized NOI (typically achieved in years 3 to 5 of operations) as a pe
Slide 98: From Commoditized to Widely Recognized
From Commoditized to Widely Recognized Rebranding significantly elevates product visibility, awareness, and performance 98From Commoditized to Widely Recognized Rebranding significantly elevates product visibility, awareness, and performance 98
Slide 99: Proven Value Creation: Acquisitions – Pensacola, FL
Proven Value Creation: Acquisitions Acquisition Case Study — Pensacola, FL $60,000 $50,000 Public Storage Acquisition $40,000 Power of the brand Trajectory of Prior Owner $30,000 Marketing advantages $20,000 Revenue maximization -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 Month
Slide 100: Proven Value Creation: Acquisitions – Mid Atlantic Portfolio
Proven Value Creation: Acquisitions Acquisition Case Study — Mid Atlantic Portfolio (9 properties) $500,000 $450,000 Public Storage Acquisition $400,000 Power of the brand Trajectory of Prior Owner Marketing advantages $350,000 Revenue maximization $300,000 -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1
Slide 101: Uniquely Positioned for ezStorage Value Creation
Uniquely Positioned for ezStorage Value Creation $1.8 billion portfolio acquisition announced in April 2021 48 high-quality properties comprising 4.2 million square feet in desirable markets across Washington DC, Virginia, and Baltimore Benefits enabled by our scale, operating platform, development
Slide 102: The Best-in-Class Mid-Atlantic Portfolio
The Best-in-Class Mid-Atlantic Portfolio ezStorage acquisition bolsters our in-progress Mid-Atlantic portfolio enhancement and diversification strategy = Public Storage = ezStorage Acquisitions § ezStorage acquisition immediately upgrades Mid-Atlantic portfolio quality § Properties will be fully reb
Slide 103: Accelerating Acquisition Volume to Drive Growth
Accelerating Acquisition Volume to Drive Growth Annual Acquisitions (millions) Acquisition Environment is Increasingly Favorable $2,700 Transaction environment improving since 2019 A “win-win” marketplace • Sellers transact at fair valuations • Public Storage acquires and enhances cash flow growth $
Slide 104: Portfolio Growth Outlook
Portfolio Growth Outlook Tom Boyle Chief Financial Officer 104 104Portfolio Growth Outlook Tom Boyle Chief Financial Officer 104 104
Slide 105: External Growth Initiatives
External Growth Initiatives Combination of recent and future activity to fuel FFO growth Embedded growth from recently acquired and built properties Increased future activity funded with attractive cost of capital 105 105External Growth Initiatives Combination of recent and future activity to fuel F
Slide 106: Embedded NOI Growth
Embedded NOI Growth Projected NOI from Non Same Store Properties LTM NOI Embedded NOI Upside to Stabilization $100 $90 $79 $ $80 $71 100MM $70 $58 $33 $60 $50 or 5% accretion to FFO $43 $24 embedded from recent activity $40 $30 $46 $20 $34 $28 $10 $0 Acquisitions Development Redevelopment Embedded g
Slide 107: Funding Growth and Value Creation: Leverage Neutral Scenario
Funding Growth and Value Creation Illustrative Leverage Neutral Scenario Investment Amount (millions) Stabilized NOI Yield Development $300 8.0% Acquisitions 600 5.0% % Total $900 6.0% 2.2 Funding Amount (millions) Interest Rate FFO Growth Illustrative Retained Cashflow $400 0.0% Debt Financing 500
Slide 108: Funding Growth and Value Creation: Increased Investment
Funding Growth and Value Creation Illustrative Public Storage Increased Investment Investment Amount (millions) Stabilized NOI Yield Development $700 8.0% Acquisitions 800 5.0% % Total $1,500 6.4% 3.7 Funding Amount (millions) Interest Rate FFO Growth Illustrative Retained Cashflow $400 0.0% Debt Fi
Slide 109: Portfolio Growth Contribution
Portfolio Growth Contribution Annual Illustrative FFO Growth Contribution of Stabilized Performance 3.7% 2.2% Attractive growth contribution with modest leverage impact Leverage neutral growth Increased investment volumes Annual Debt / EBITDA Impact 0.0x 0.2x 109 109Portfolio Growth Contribution Ann
Slide 110: Accelerating Portfolio Growth Q&A
Accelerating Portfolio Growth Q&A 110 110Accelerating Portfolio Growth Q&A 110 110
Slide 111: Complementary Growth Engines
4 Complementary Growth Engines 1114 Complementary Growth Engines 111
Slide 112: Third Party Management
Third Party Management Peter Panos President, Third Party Management 112 112Third Party Management Peter Panos President, Third Party Management 112 112
Slide 113: Monetizing Our Competitive Advantages
Monetizing Our Competitive Advantages Brand and Scale Technology & Data Growth Profitability Relationships Deep addressable market First-mover technologies Asset-light income growth Operating and overhead Industry relationships with presents long-term brand and multifarious data to (management fee +
Slide 114: A Sizeable Addressable Market Within Our Footprint
A Sizeable Addressable Market Within Our Footprint 114 114A Sizeable Addressable Market Within Our Footprint 114 114
Slide 115: Managed Properties are Operated as Our Own
Managed Properties are Operated as Our Own 115Managed Properties are Operated as Our Own 115
Slide 116: Growing Acquisitions from our Platform
Growing Acquisitions from 7 our Platform Properties acquired through the third party program $ 78M Investment $ 150 Investment per square foot % 5.4 1 Stabilized NOI yield Source: Company filings and data 1. Estimated stabilized NOI (typically achieved in years 3 to 5 116 116 of operations) as a per
Slide 117: Proven Operational Excellence: Third-Party Management Case Study
Proven Operational Excellence Sharing Our Competitive Third-Party Management Case Study — Austin, TX Advantages $50,000 $45,000 $40,000 $35,000 Public Storage $30,000 Assumes $25,000 Management Trajectory of Prior REIT $20,000 Manager Power of the brand $15,000 Marketing superiority $10,000 -9 -7 -5
Slide 118: Partner Endorsements
Partner Endorsements I can say without hesitation that third party management provided by Public Storage exceeds their competitors. “ Their organization, the marketing, the knowledge, and expertise is second to none. % “ Aside from most competitive offering in the industry and great brand 95 recogni
Slide 119: Strong Growth Trajectory
PP Strong Growth Trajectory Third Party Management Contracts Poised to Grow 500 15-person team and growing Focus on quality properties Multi-market momentum Strong pipeline 120 Today 2025E Note: 2025 is a company estimate. 119 119 119PP Strong Growth Trajectory Third Party Management Contracts Poise
Slide 120: Storage Insurance
Storage Insurance Capri Haga SVP, Risk Management 120 120Storage Insurance Capri Haga SVP, Risk Management 120 120
Slide 121: Offering Protection to Our Customers
Offering Protection to Our Customers Insurance and Peace of Mind Offered at affordable rates Immediate coverage for damage caused by water, flood, fire, smoke, hail, lightning, windstorm, and vandalism Policies are fully reinsured by a wholly-owned, consolidated subsidiary of Public Storage 121 121
Slide 122: Growth through Customer Adoption and Scalability
Growth through Customer Adoption and Scalability Storage Insurance Premiums (millions) 40% premium growth expected $148 over the next five years through: Enhancements to existing offering Property portfolio growth $24 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 123: Ownership in Growing Platforms
5 Ownership in Growing Platforms 1235 Ownership in Growing Platforms 123
Slide 124: Shurgard Self Storage and PS Business Parks
Shurgard Self Storage and PS Business Parks Joe Russell Chief Executive Officer 124 124Shurgard Self Storage and PS Business Parks Joe Russell Chief Executive Officer 124 124
Slide 125: Strategic Growth with Clear Visibility
JR Strategic Growth with Clear Visibility 1 Contribution to Operating FFO PS Business Parks and Shurgard’s public-company attributes provide: Public Storage — Same Store Pool Transparency through Public Storage — Non-Same Store Pool 6.5% reporting, management access, and equity research 6.3% Public
Slide 126: Shurgard Self Storage
Shurgard Self Storage Largest owner and leading consolidator of self-storage in Europe Significant recent growth across Western Europe Portfolio 243 properties | 13 million square feet | 7 countries Unique multi-country operating platform provides long-term growth opportunity Market Capitalization $
Slide 127: PS Business Parks
PS Business Parks Leading industrial-focused property owner in the United States Decades-long track record of growth and value creation Portfolio 97 properties | 28 million square feet Unique small-tenant industrial focus with proven Market Capitalization $5.5 billion (NYSE: PSB) operating competiti
Slide 128: Total Return Performance
JR Total Return Performance 1 Total Return Performance 2018 – 2021 CAGR 22.4% Shurgard and PS Business Parks have been additive to 15.0% 14.7% Public Storage’s valuation 11.3% and total returns over time REIT Index Source: Company filings and FactSet 1. Three years ended 4/16/21 for Public Storage,
Slide 129: Ownership in Growing Platforms
Ownership in Growing Platforms Self-Storage Platform Public Market Transparency Public Market Valuation Visibility Additive to Public Storage’s Growth Profile Public Storage’s Board of Trustees and Management strategically review these investments 129Ownership in Growing Platforms Self-Storage Platf
Slide 130: Balance Sheet Strategy & Outlook
6 Balance Sheet Strategy & Outlook 1306 Balance Sheet Strategy & Outlook 130
Slide 131: Balance Sheet Engine for Sustainable Growth
Balance Sheet Engine for Sustainable Growth Tom Boyle Chief Financial Officer 131 131Balance Sheet Engine for Sustainable Growth Tom Boyle Chief Financial Officer 131 131
Slide 132: Balance Sheet Engine for Sustainable Growth
Balance Sheet Engine for Sustainable Growth Strong access and cost of capital through cycles Flexibility to fund strategic opportunities Interest rate optionality to lower cost of perpetual preferred stock Sustainable growth financing with retained cash flow and debt 132 132Balance Sheet Engine for
Slide 133: The Strongest REIT Balance Sheet
The Strongest REIT Balance Sheet Net Debt and Preferred Equity to EBITDA 8x 7x 6x 5x 4.0x 4x 3x 2x 1x 0x Public Alexandria Prologis CubeSmart Life Storage Digital Realty AvalonBay Equity Extra Space Welltower Ventas Boston Simon Storage Communities Residential Properties Moody’s / Baa1 / Baa2 / Baa2
Slide 134: Targeting Leverage for Sustainable Growth
Targeting Leverage for Sustainable Growth Net Debt and Preferred Equity to EBITDA 4.0x 3.2x Target: 4.0x to 5.0x 2.5x 1 2015 2020 Today Source: Company filings 1. Pro forma ezStorage acquisition and April 2021 bond offering. 134Targeting Leverage for Sustainable Growth Net Debt and Preferred Equity
Slide 135: Adding Low-Cost Debt to Optimize Financing Mix
Adding Low-Cost Debt to Optimize Financing Mix 1 Debt and Preferred Equity on Balance Sheet (billions) Diversified Funding Sources and Lowered Cost Debt and free cash flow fund growth $4.0 • $5 billion of debt issued at a 1.9% blended rate $1.5 • U.S. dollar and euro denominated unsecured debt $1.0
Slide 136: Attractive Long Term Financing Costs
Attractive Long Term Financing Costs Long-Dated Maturities Weighted average maturity % of maturities greater than 15 years 80.00% 20 70.00% 16.6 year maturity 60.00% 15 50.00% 43% of maturities 40.00% 10 30.00% greater than 15 years 20.00% 5 10.00% 0.00% 0 Extra Space Boston Life Storage Cubesmart V
Slide 137: Reinvesting for Growth
Reinvesting for Growth First quarter 2021 represented: th 160 Annual Common Stock Dividend (per share) Consecutive quarterly dividend paid $10 $8 th 10% CAGR 124 $6 3% Dividend Yield Consecutive growing or sustained quarterly dividend $4 $2 $ 300 – 500M $0 Annual retained cashflow 2005 2008 2011 201
Slide 138: Strong Access Across the Capital Stack
Strong Access Across the Capital Stack Funding Strategic Opportunities Attractive Perpetual Capital Base Funding Ongoing Growth Retained Cash Flow Common Equity Perpetual Preferred Equity Institutional Equity Unsecured Debt USD and Euro Joint Venture Partners 138Strong Access Across the Capital Stac
Slide 139: Positioned for Sustainable Growth
Positioned for Sustainable Growth $5B 86% 80% USD / 20% EUR Unsecured debt Fixed rate debt Denominated debt $4B Preferred equity 4.0x Net Debt + preferred equity to EBITDA A2 / A $300– 500MM Credit ratings from Annual retained cash flow Moody’s and S&P 7.5x th Fixed charge coverage ratio 160 Consecu
Slide 140: Sustainable Long-Term Growth Outlook
Sustainable Long-Term Growth Outlook Tom Boyle Chief Financial Officer 140 140Sustainable Long-Term Growth Outlook Tom Boyle Chief Financial Officer 140 140
Slide 141: Key Drivers of Long-Term Growth
Key Drivers of Long-Term Growth Grow cash flow from our industry leading portfolio Fund run rate growth Accelerate portfolio with retained cash flow expansion and debt Increase scale of ancillary businesses 141Key Drivers of Long-Term Growth Grow cash flow from our industry leading portfolio Fund ru
Slide 142: Engines of Long-Term Growth
Engines of Long-Term Growth Illustrative Long-Term Growth Same Store Growth 3.0% +/- 3% long term SS NOI growth 1 Operating initiatives 0.5%–1.0% Operating innovation and efficiency investments 2 Portfolio Growth 2.2%–3.7% Increasing run rate of investments Complementary Growth 0.5%–1.0% Increasing
Slide 143: Undervalued Relative to Peers
Undervalued Relative to Peers 1 EBITDA Multiple 29.2x 26.2x Premium operator, but discounted valuation 24.7x 24.4x 23.5x Life Storage CubeSmart Public Storage Extra Space National Storage Affliates Source: FactSet 143 143 1. Enterprise Value to consensus 2021 EBITDA estimateUndervalued Relative to P
Slide 144: The Power Behind the Orange Door
The Power Behind the Orange Door Joe Russell Chief Executive Officer 144 144The Power Behind the Orange Door Joe Russell Chief Executive Officer 144 144
Slide 145: Sustainability — A Focus for Decades
Sustainability — A Focus for Decades Environmental Social Governance A Low Impact Company A People Focus Integral to operational, financial, and reputational resilience 145 145Sustainability — A Focus for Decades Environmental Social Governance A Low Impact Company A People Focus Integral to operati
Slide 146: Leadership, Innovation, Growth
Leadership Innovation Growth Most recognized brand Digital customer experience Revenue growth and expense control Best locations Technology platform Portfolio expansion through acquisition, development, and redevelopment Great people Operating model transformation Third party management Strongest ba
Slide 147: Our Commitment to Reset Communications
Our Commitment to Reset Communications Discuss company and industry dynamics on earnings calls and in quarterly supplemental reports Ongoing investor presentations to provide company and industry updates Advancement of ESG programs and reporting More proactive engagement Annual guidance 147Our Commi
Slide 148: Final Q&A
7 Final Q&A 1487 Final Q&A 148
Slide 149: Appendix
Appendix 149 149Appendix 149 149
Slide 150: Non-GAAP Reconciliations
Non-GAAP Reconciliations Net Income to EBITDA Reconciliation 2020 2015 2020 1Q2021 LTM Net income $1,318 $1,361 $1,428 Net operating income attributed to noncontrolling interests (8) (6) (7) Depreciation and amortization 425 553 564 Interest expense 1 56 57 Extraordinary and nonrecurring gains and l
Slide 151: RevPAF by MSA
1 RevPAF by MSA 1 Revenue Per Available Square Foot by MSA Los Angeles-Riverside-Orange County, CA $25.99 $21.59 $21.49 San Francisco-Oakland-San Jose, CA $26.39 $27.43 - New York-N. New Jersey-Long Isl., NY-NJ-PA $25.67 $23.78 $22.80 Seattle-Tacoma, WA $19.40 - - Washington-Baltimore, DC-MD-VA-WV $