Slide 1: Safe Harbor Statement
2 Safe Harbor Statement 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 ex
Slide 2: Introduction to CubeSmart
INTRODUCTION TO CUBESMART 3 Self-Storage REIT with Expansive National Platform Owned Portfolio by Market Other Northeast 9 CT 21 NY 55 Boston 10 Chicago 38 No. CA 12 Ohio 20 Phila 15 CO, UT 13 Inland Empire 16 Balt., DC 26 Tenn 7 AZ, NV, NM 37 NC 8 So. CA 12 Atlanta 18 Major TX 54 Miami 19 Other FL
Slide 3: High-Quality Portfolio
HIGH-QUALITY PORTFOLIO 4 A Disciplined Investment Leading Demographics Strategy has Built an Industry-Leading Portfolio A Focus on Supply Constrained Markets (in ‘000) 1 ($ in ‘000) 1) Determined by ranking top 100 markets by net rentable square feet per person with “1” being the market with the low
Slide 4: Attractive Returns
ATTRACTIVE RETURNS 5 Innovative Platforms, Disciplined Growth, and Prudent Capital Allocation have Combined to Generate Significant Value for Shareholders Cumulative Total Returns1 120.0% 100.0% 9 2 .1% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% S& P 500 RMZ Self-S torage REITs CUBE 1) Returns through Dece
Slide 5: Long-Term Vision for Value Creation
LONG-TERM VISION FOR VALUE CREATION 6 INTERNAL GROWTH Maximize portfolio value through continued focus on customer service and operational enhancements. EXTERNAL GROWTH Continue to prudently build a portfolio of high-quality assets, with a focus on targeted markets. FINANCIAL STRENGTH Finance growth
Slide 6: Internal Growth: 2015 Same-Store Results
7 INTERNAL GROWTH 2015 Same-Store Results1 Revenue Growth driven increasingly by effective rent growth NOI2 +9.6% Revenue +7.3% Expenses +2.3% Average Occupancy +92.3% (+150 bps YOY) Expense Growth is expected to remain inflationary, except for continued pressure on real estate taxes 2016 Same-Store
Slide 7: Internal Growth: Performance Fueled by Innovation
INTERNAL GROWTH: PERFORMANCE FUELED BY INNOVATION 8 Enhancing the customer experience at all points of engagement through proprietary systems and processes. Constantly testing digital platforms, utilizing marketing advancements, sophisticated systems, and new programs that strengthen customer relati
Slide 8: Internal Growth: Internet Marketing
INTERNAL GROWTH: INTERNET MARKETING 9 Optimizing marketing efforts and efficiently attracting customers through use of industry leading analytics.
Slide 9: Internal Growth: Internet Marketing
INTERNAL GROWTH: INTERNET MARKETING 10 CUSTOM EXPERIENCE 1 PERSONA 1 CUSTOM EXPERIENCE 2 PERSONA 2 VISITOR DATA AND BEHAVIOR CUSTOM EXPERIENCE 3 PERSONA 3 VISITORS Adjusting to evolving marketing ecosystems and engagement mediums Continued focus on capturing and leveraging insights about customers t
Slide 10: Internal Growth: Traditional Marketing
INTERNAL GROWTH: TRADITIONAL MARKETING 11 Out-of-home placements in markets with high store concentration Hyper-targeted direct mail campaigns in select markets Customized local marketing efforts to target residential and commercial customers Supplementing internet marketing initiatives with a tradi
Slide 11: Internal Growth: Revenue Management Landscape
INTERNAL GROWTH: REVENUE MANAGEMENT 12 Revenue Management Landscape Multi-Family Residential Self Storage Airlines Hotels Supply Constraints Competition Seasonality Low Transaction Volume Unpredictable Length of Stay Historically, advanced revenue management techniques have boosted revenue in a numb
Slide 12: Internal Growth: Fundamental Pricing Issues
INTERNAL GROWTH: REVENUE MANAGEMENT 13 Fundamental Pricing Issues Pricing optimization requires consideration of a multi-dimensional demand landscape and dynamic capacity constraints Substitutability CSoumbspteittuittiaobnility TCimominpgetition CTaimpaincgity / Economic Outcomes Capacity / Economic
Slide 13: Internal Growth: Long-Term Revenue Maximization Strategy
INTERNAL GROWTH: REVENUE MANAGEMENT 14 Long-Term Revenue Maximization Strategy Demand Forecast/ Revenue Optimization Price optimization requires consideration of a multi-dimensional demand landscape & dynamic capacity constraints Balance between Street Rates, Discounts, and Concessions Goal of provi
Slide 14: Internal Growth: Customer Service
INTERNAL GROWTH: CUSTOMER SERVICE 15 Striving to fulfill our mission of simplifying organizational challenges through unparalleled customer service. Focus on customer service throughout all touch points (store, sales center, and website) to create a fully-integrated interaction with each customer Mo
Slide 15: Internal Growth: An Award-Winning Service Culture
INTERNAL GROWTH: CUSTOMER SERVICE 16 An Award-Winning Service Culture
Slide 16: External Growth: Investment Strategy
17 EXTERNAL GROWTH Investment Strategy $276.6 million in 2015 acquisitions Focus on high-quality properties in high-barrier-to-entry markets $65.1 million in 2015 new development openings Leverage relationships with development partners to invest selectively in accretive development and built-to-sui
Slide 17: External Growth: Focused Investment Strategy
EXTERNAL GROWTH: FOCUSED INVESTMENT STRATEGY 18 Focus on Adding Scale in Attractive, High-Barrier-to-Entry Markets Acquisitions1,2 $2.2 billion Dispositions1 $460 million 147 Stores 214 Stores 1) Transactions closed from 2008 through December 31, 2015. 2) Includes investment in 35 properties through
Slide 18: Significant Evolution Over Past Seven Years
EXTERNAL GROWTH: FOCUSED INVESTMENT STRATEGY 19 Significant Evolution Over Past Seven Years Acquisitions 2008 – December 2015 2 Total Portfolio December 2015 2 Total Portfolio January 2008 Dispositions, 2008 – December 2015 2 Note: Bubbles sized by revenue. 1) Realized annual rent per occupied sq ft
Slide 19: External Growth: High-Quality Assets
EXTERNAL GROWTH: HIGH-QUALITY ASSETS 20 Enhancing Our Portfolio by Adding Purpose-Built Class A Facilities
Slide 20: External Growth: Development
EXTERNAL GROWTH: DEVELOPMENT 21 Leverage Local Market Expertise of Partners to Generate Highest Returns 2014 2015 2016 2017 $42.3M Total $49.3M Total $98.9M Total $49.8M Total 1Q14 Bronx, NY - $17.2M 2Q15 Arlington, VA - $17.1M 1Q16 Queens, NY - $32.1M 4Q17 Brooklyn, NY - $49.8M 1Q14 Malvern, PA - $
Slide 21: External Growth: Purchase at Completion
EXTERNAL GROWTH: PURCHASE AT COMPLETION 22 Acquire High-Quality, Purpose-Built Assets and Add to CubeSmart Platform with Sophisticated Marketing and Revenue Management Systems 2014 2015 2016 2017 $38.0M Total $15.8M Total $69.4M Total $32.0M Total 4Q14 Long Island City, NY - $38.0M 2Q15 Dallas, TX -
Slide 22: External Growth: Impactful Third-Party Management Platform
EXTERNAL GROWTH: IMPACTFUL THIRD-PARTY MANAGEMENT PLATFORM 23 Third-party management allows us to leverage our operating platform and generate additional economies of scale Platform has grown to 227 properties since its inception in 2009 Purchased 62 properties from our managed million1 since 2010 p
Slide 23: Financial Strength
24 FINANCIAL STRENGTH 2015 Activity Approach Raised $234.2 million in net offering proceeds through at-the-market equity program Fund external growth in a manner consistent with our objective of maintaining our investment grade credit ratings Issued $250.0 million of 4.0% unsecured senior notes due
Slide 24: Financial Strength: Investment Grade Balance Sheet
FINANCIAL STRENGTH: INVESTMENT GRADE BALANCE SHEET 25 Investment Grade Ratings Conservative Metrics (As of December 31, 2015) Debt / Gross Assets Debt + Preferred / Gross Assets Debt / EBITDA1 Debt + Preferred / EBITDA1 Secured Debt / Gross Assets 1) Based on EBITDA and average debt outstanding duri
Slide 25: External Growth: Key Credit Metrics
EXTERNAL GROWTH: KEY CREDIT METRICS 26 Strong Operating Performance Coupled with Conservative Balance Sheet Management Continues to Improve Credit Metrics 2010 2011 2012 2013 2014 2015 80.0% $0.60 40.0% $0.30 20.0% Dividend per Share Dividend Payout Ratio REIT Avg. Payout Ratio 1) Source: Company Fi
Slide 26: Summary
27 Summary Robust organic growth fueled by a focus on customer service, continued enhancement of our operational infrastructure, and a widening divide between large and small operators Meaningful external growth through a disciplined investment process supplemented by a competitive and expanding thi
Slide 27: Historical Company Data
HISTORICAL COMPANY DATA 28 S ame - S tore Pe rf ormance 1 2010 2011 2012 2013 2014 2015 Exte rnal G row th T radi ng & Val uati on Me tri c s 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 sup
Slide 28: Contact Us
29 Contact Us Contact Info Charles Place Director, Investor Relations Email: cplace@cubesmart.com Telephone Office Phone: 610.535.5700
Slide 29: Contact Info
& Contact Info 2 Telephone Office Phon