Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (June 2019)
26 slides from Cubesmart's investor presentation, Jun 4, 2019
Slide 1: Introduction to CubeSmart
Introduction to CubeSmart MarketCap2 Adjusted4 31 June 2019 Investor Presentation 1. As of March 31,2019 2. Market value of common equity and book value of debt as of March 31,2019 3. Annual dividends declared in period ending December 31,2018 4. Period ending December31, 2018 80% 5-year Growth in F
Slide 2: It's what's inside that counts
It's what's inside CubeSmart: that counts. 41 June 2019 Investor Presentation
Slide 3: Sophisticated Operating Platform: Refined Customer Acquisition Strategy
Sophisticated Operating Platform Refined Customer Acquisition Strategy 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 61 June 2
Slide 4: Sophisticated Operating Platform: Long-Term Revenue Maximization
Sophisticated Operating Platform Long-Term Revenue Maximization Multi-faceted approach to dynamically manage supply/demand balance Demand Forecast/Revenue Optimization Price optimization requires consideration of a multi-dimensional demand landscape & ever-changing capacity constraints Balance betwe
Slide 5: Sophisticated Operating Platform: Refined Customer Acquisition Strategy
Sophisticated Operating Platform Refined Customer Acquisition Strategy Integrated approach across all channels drives customers through the funnel Building Brand. Awareness Attract the greatest share of potential demand It’s what's inside that counts. proposition A 7 Strong Physical” ‘Award-Winning
Slide 6: Understanding the Needs of Our Customers
Sophisticated Operating Platform Understanding the Needs of Our Customers Striving to fulfill our mission of simplifying our customers· organizational challenges .. Attract the greatest share of potential demand Rita Ryan Mary Erik Dave Maximize value from each customer through an appealing value pr
Slide 7: Sophisticated Operating Platform: Award-Winning Service Culture
Sophisticated Operating Platform Award-Winning Service Culture Attract the greatest share of potential demand Maximize value from each customer through an appealing value proposition 10 IJune 2019 Investor Presentation
Slide 8: Understanding the Needs of Our Customers
Understanding the Needs of Our Customers Striving to fulfill our mission of simplifying our customers’ organizational challenges Ate eH Deliver an unparalleled experience to encourage retention and advocacy
Slide 9: Award-Winning Service Culture
Award-Winning Service Culture Redefining Service in the Self-Storage Industry Since 2012, CubeSmart has been repeatedly honored for outstanding achievements, including: 5-time winner of Inside Self-Storag s-choice poll honors companie: are leaders in their categor Deliver an ‘7-time winner of the Go
Slide 10: National Platform with a Focus in Core Markets
High-Quality Portfolio National Platform with a Focus in Core Markets revenue1 Our top 12 markets are major metro areas which generate 68°/o of • Owned & Managed Managed Only ® Top 12 Market 131 June 2019 Investor Presentation 1. First Quarter 2019 2. Property Counts as of March 31, 2019
Slide 11: Industry-Leading Portfolio
High-Quality Portfolio Industry-Leading Portfolio Enhancing a high-quality portfolio with a focus on top-25 MSAs 1 2 3-Mile Population (in thousands) Storage REIT Exposure to Top 25 MSAs 100% 180 160 140 120 100 80 60 40 20 0 75% 80% 70% 61% 55% 60% 41% 40% 20% 0% CUBE PSA EXR LSI NSA CUBE PSA EXR L
Slide 12: 1. Source: US Census Bureau, 2018 Self Storage Almanac, Internal Market Research 2. Source:
1. Source: US Census Bureau, 2018 Self Storage Almanac, Internal Market Research 2. Source: New York City Department of City Planning
Slide 13: Enhancing the Portfolio with New Properties
High-Quality Portfolio Enhancing the Portfolio with New Properties Adding value through the development of purpose-built, class A stores $40.3M Total Chicago, IL (2) Delray Beach, FL $19.1M Total Vl C/O c: o...-San Diego, CA :·;-:::;0 ......... -u ::J ..... e-re u <.( 161 June 2019 Investor Presenta
Slide 14: New York City Market Leader
High-Quality Portfolio New York City Market Leader Leading operator of high-quality stores in this premier market a Market Dynamics Dynamic and diverse population of more than 85 million residents average Availabl national Newly enat right for se GUBEis the marketleaderin New York City with 35 owned
Slide 15: 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 Debt to Gross Assets 100.0% 900% 80.0% 70.0% 60.0% 50.0% 400% 30.0% 20.0% 10.0% • Raised $1.3 billion in net proceeds • • Six unsecured note issuances since 2
Slide 16: 1,2 1. 2. 3. Source: Company Filings, as of December of each stated year
1 1,2 3 1. 2. 3. Source: Company Filings, as of December 31 of each stated year Calculated as annual EBITDA / Interest Expense As of March 31, 2019
Slide 17: Funds From Operations Growth & Dividend Growth
Disciplined Capital Allocation Funds From Operations Growth & Dividend Growth Growing FFO has generated meaningful increases in distributions 1 +11.0% CAGR AnnualDividend per Share FFO per Share, as adjusted +22.0% CAGR r $1.75 $1.50 $1.40 $1.20 $1.25 $1.00 $1 00 $0.80 $0.75 $0.60 $0.50 $0.40 $0 25
Slide 18: Current Operating Environment
Current Self-storage Operating Environment continues to be an attractive sector 21 IJune 2019 Investor Presentation
Slide 19: Generating Outsized Results
Current Operating Environment Generating Outsized Results Sophisticated platform maximizes performance dynamic revenue management systems and 221 June 2019 Investor Presentation Source: CUBE, EXR, PSA, & LSI Company Filings 1) Fort he 5 year period ended December 31, 2018. Constantly evolving market
Slide 20: Recent Highlights
Current Operating Environment Recent Highlights Executing on strategic objectives $22.0 million in acquisitions2 NOI Revenue Expenses NOIMargin +2.8% +2.6% $70.4 million in new development openings2 +2.2% 70.1% 46 new third-party management contracts1 231 June 2019 Investor Presentation 1. Financial
Slide 21: It's what's inside CubeSmart that counts
It's what's inside CubeSmart: that counts. 241 June 2019 Investor Presentation
Slide 22: 1. 2. 3. Performance as reported for the same-store pool as it was constituted
1. 2. 3. Performance as reported for the same-store pool as it was constituted at the end of the respective year Year-ending values as detailed in Company's supplemental packages Calculated as ending common share price / funds from operations per share, as adjusted. Please refer to CubeSmart’s publi
Slide 23: Additional Information
Additional Information • Corporate Responsibility ww-w.cubesmart.comjabout-usjcorporate-responsibility • Supplemental Financial Information http://investors.cubesmart.com • 10-K Filing http://investors.cubesmart.com • 10-QFiling http://investors.cubesmart.com • Proxy http://investors.cubesmart.com 2
Slide 24: Historical Company Data
Historical Company Data Same-Store Performance’ 2010 2011 2012 201320142015 2016 __2017__2018 Revenue Growth 0.3% | 3.6% | 38% | 74% | 7.2% | 7.3% | 7.0% | 4h% | 3.3% NOI Growth 1.0% | 5.7% | 6.0% | 9.3% | 9.6% | 9.6% | 10.2% | 5.1% | 3.5% YOY Occupancy Growth (BPS) 0.6% | 20% | 3.4% | 53% | 26% | 1
Slide 25: Additional Information
Additional Information ™ Corporate Responsibility www.cubesmart.com/about-us/corporate-responsibility ™ Supplemental Financial Information http://investors.cubesmart.com " 10-K Filing http://investors.cubesmart.com ™ 10-Q Filing http://investors.cubesmart.com ™ Proxy http://investors.cubesmart.com 2
Slide 26: Contact Us