Smartstop Self Storage Reit, Inc. · NYSE:SMA
Smartstop Self Storage Reit — Q1 2020 Earnings Presentation
30 slides from Smartstop Self Storage Reit's earnings presentation, May 19, 2020
Slide 1: Full Year 2019 and First Quarter 2020 Update
+ + Full Year 2019 and First Quarter 2020 Update Exhibit 99.1
Slide 2: Disclaimer & Risk Factors
Disclaimer & Risk Factors Certain of the matters discussed in this investor presentation constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be identified by our
Slide 3: Additional Information Regarding NOI, FFO & FFO, as adjusted
Additional Information Regarding NOI, FFO & FFO, as adjusted Funds from Operations (“FFO”) and FFO, as adjusted Funds from operations (“FFO”) is an industry wide metric promulgated by the National Association of Real Estate Investment Trusts, or NAREIT, which SmartStop believes to be an appropriate
Slide 4: Additional Information Regarding NOI, FFO & FFO, as adjusted
Additional Information Regarding NOI, FFO & FFO, as adjusted Net Operating Income or (“NOI”) NOI is a non-GAAP measure that SmartStop defines as net income (loss), computed in accordance with GAAP, generated from properties before corporate general and administrative expenses, asset management fees,
Slide 5: SmartStop Self Storage REIT, Inc.
SmartStop Self Storage REIT, Inc.
Slide 6: SmartStop Self Storage REIT, Inc.
SmartStop Self Storage REIT, Inc. SmartStop Self Storage REIT, Inc. (“SmartStop”) is a self-managed and fully-integrated self storage company with a portfolio of over $1.6 billion of self storage assets. SmartStop is the 10th largest self storage company in the U.S. with an owned and managed portfol
Slide 7: SmartStop's Executive Team
SmartStop’s Executive Team H. Michael Schwartz Founder & Executive Chairman 16 Years Experience Mike Terjung Chief Accounting Officer 10 Years Experience Michael McClure Chief Executive Officer 12 Years Experience Joe Robinson Chief Operations Officer 11 Years Experience Wayne Johnson President & CI
Slide 8: Institutional Management
Institutional Management Day-to-day operations Technology Innovation Web Development Marketing Pricing Analytics Revenue Management Dedicated In-house Call Center Developments & C/Os
Slide 9: Novel Coronavirus (COVID-19) and SmartStop Response
Novel Coronavirus (COVID-19) and SmartStop Response
Slide 10: Protecting Our Customers & Employees
Protecting Our Customers & Employees Social Distancing: Allowing only one customer in our office at a time and enforcing stay-at-home when sick procedures for employees Cleanliness: Thorough cleaning at each of our facilities. Employees are required to wear latex gloves, and ill customers are asked
Slide 11: Business Continuity and Positioning
Business Continuity and Positioning Continue to rent units through the call center As of March 13 (8 weeks), the majority of our corporate employees were working remotely with no interruption of key business functions Significant liquidity across our storage programs, both in cash and availability i
Slide 12: SmartStop's Response
SmartStop’s Response Paused all existing customer rate increases from April 1st – June 1st Paused any auction activity through mid-May Continue to drive traffic through website and call center Added the ability of call center agents to complete rentals, start-to-finish with customers For the month o
Slide 13: COVID-19's Impact on Operations
COVID-19’s Impact on Operations Royal Palm Beach, Florida Demand for self-storage properties continued throughout the COVID pandemic and the various shelter-in-place orders across the U.S. and Canada Slow down in rental activity for the 30 day period between March 20 – April 20 Saw rental activity s
Slide 14: 2019 Highlights and Recent Transactions
2019 Highlights and Recent Transactions
Slide 15: Unique Opportunity For Growth In Self Storage
Unique Opportunity For Growth In Self Storage SmartStop offers a unique opportunity for future growth: Highly talented team of over 380 dedicated self storage professionals and executive team with an average of 15 years of self storage experience Tenth largest self storage company in the US with who
Slide 16: SSGT Merger Overview
SSGT Merger Overview SmartStop completed its acquisition of Strategic Storage Growth Trust, Inc. (“SSGT”) by merger on January 24, 2019 in a 100% cash transaction Total transaction value of approximately $350M at $12.00/share, which includes SSGT debt that was assumed or repaid Subsequent to the mer
Slide 17: Preferred Equity Investment
Preferred Equity Investment On October 29, 2019, SmartStop entered into a purchase agreement with Extra Space Storage (“EXR”, NYSE: EXR), a publicly-traded self storage REIT with a market capitalization of approximately $14 billion, for Series A Convertible Preferred Stock (“Preferred Stock”) EXR’s
Slide 18: NAV Process
NAV Process Net Asset Value (“NAV”) of $10.40/share as of December 31, 2019 Independent, 3rd Party Valuation by Robert A. Stanger & Co, Inc. Asset-by-Asset valuation of Real Estate (no portfolio premium) In accordance with IPA NAV Guideline See our Form 8-K filed with the SEC on April 22, 2020 for a
Slide 19: Portfolio & Financial Update
Portfolio & Financial Update
Slide 20: Current Portfolio
Current Portfolio Portfolio as of 3/31/2020 *SST IV includes 4 under development properties owned through SmartCentres JV SSGT II includes 1 operating property owned through SmartCentres JV *
Slide 21: SmartStop NOI by State Q1 2020
*NOI represents approximate Q1 2020. SmartStop NOI by State Q1 2020 $17,045,000* Our portfolio is geographically diversified, with targeted investments in high growth markets such as California, Florida, and the Greater Toronto Area Owned NOI Owned & Managed NOI Q1 2020 $20,044,000*
Slide 22: Toronto Portfolio
Toronto Portfolio $275M CAD INVESTMENT IN TORONTO* *$275M figure represents Canadian dollar-denominated value of SmartStop’s owned or managed portfolio, as designated under the “Current Properties” section. Value is determined based on the appraised value of the assets from the declared Net Asset Va
Slide 23: Canadian Case Studies: Fruitland Rd, Stoney Creek
Canadian Case Studies 365 Fruitland Rd, Stoney Creek, ONT 780 Units 81,600 NRSF Approx. 81.6% Occupancy* Development Opened: June 2018 *Occupancy number as of 04/30/2020 Partially opened in June 2018, fully opened in July 2018 **Revenue ($) figures presented are in local currency (Canadian $s)
Slide 24: Canadian Case Studies: Torbarrie Rd, North York
Canadian Case Studies 69 Torbarrie Rd, North York, ONT 900 Units 85,060 NRSF Approx. 4.9% Occupancy* Partial C/O: March 17, 2020 *Occupancy number as of 04/30/2020 Partially opened March 17, 2020 **Rev ($) figures presented are in local currency (Canadian $s)
Slide 25: Continued Investment In Our Assets
Continued Investment In Our Assets Retail Rebranding Rebranding and remodeling store fronts for more modern retail presence Aprox. 50% of portfolio complete Solar Initiatives Identifying assets for solar installations Accretive cost savings First U.S. project underway LED Initiatives Converting ligh
Slide 26: Balance Sheet
Balance Sheet Royal Palm Beach, Florida Loan to Value(1) March 31, 2020 = 45% December 31, 2019 = 45% September 30, 2019 = 55% (1) Debt, net of cash / Value based on most recent NAV Distributions(2) SmartStop pays a distribution rate of approximately $0.001639 per day per share (equivalent to $0.60
Slide 27: SmartStop Financial Update - 2019
SmartStop Financial Update - 2019 Twelve Months Ended December 31, 2019 vs. 2018 Revenue Growth (as reported) Revenue Growth (adjusted for impact of ASU 2016-02 Leases) Net Operating Income* Growth Property Operating Expenses as a Percentage of Revenue Number of Facilities Average Physical Occupancy
Slide 28: SmartStop Financial Update – First Quarter 2020
SmartStop Financial Update – First Quarter 2020 First Quarter 2020 vs. 2019 Revenue Growth (as reported) Net Operating Income* Growth Property Operating Expenses as a Percentage of Revenue Number of Facilities Average Physical Occupancy Annualized Revenue per Occupied SF (excludes parking) Same-Stor
Slide 29: Publicly Traded Self Storage Companies; Public Non-Traded Self Storage REITs
Publicly Traded Self Storage Companies NYSE: EXR NYSE: PSA NYSE: CUBE NYSE: LSI NYSE: UHAL NYSE: JCAP NYSE: NSA Public Non-Traded Self Storage REITs
Slide 30: Questions?
al, SmartStop Self Storage REIT, Inc. ... Fhe Smarter Way to Store!® Questions?
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