Cubesmart · NYSE:CUBE
Cubesmart — Investor Presentation (June 2014)
24 slides from Cubesmart's investor presentation, Jun 2, 2014
Slide 1: [Logo] June 2014
[Logo] June 2014
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement 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 n
Slide 3: Introduction to CubeSmart
Malvern, PA Malvern, PA 3 Introduction to CubeSmart Introduction to CubeSmartSelf-storage REIT with expansive national platform Self-storage REIT with expansive national platform 1)Property count as of March 31, 2014. 2)As of March 31, 2014. Market value of common. Book value of preferred equity and
Slide 4: Self-Storage Industry Overview
Storage Doors.jpg4 Self-Storage Industry Overview Self-Storage Industry Overview .Broad tenant diversification .Demand driven by mobility, life change .Opportunity for consolidation .Unsophisticated competition .High operating margins .Low cap-ex requirements Attractive industry with favorable econo
Slide 5: Long-Term Vision for Value Creation
5 Long-Term Vision for Value Creation Long-Term Vision for Value Creation A balanced and disciplined approach A balanced and disciplined approach External Growth External Growth C:\Users\druble\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\ICJ2K7H3\MP900399475[1].jpgFinancial
Slide 6: 2013 Highlights
C:\Users\druble\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\ICJ2K7H3\MP900399475[1].jpg6 2013 Highlights 2013 Highlights Executed on strategic objectives Executed on strategic objectives Same-Store Results: +9.3% +7.4% +3.7% 67% 23% Same-Store Results: NOI1 +9.3% Revenue +7.
Slide 7: 2014 Organic Growth Drivers
7 2014 Organic Growth Drivers 2014 Organic Growth Drivers Organic Growth Organic Growth .Continued strength in revenue growth derived from a balanced mix of occupancy gains and accelerating effective rent growth. .Expenses are largely inflationary except for severe winter costs and continued pressur
Slide 8: Robust Performance Trends
2013 2013 2012 2012 2011 2011 1)Occupancy at period end. 2014 and 2013 data reflects that of the current same-store pool, as constituted on March 31,2014. Occupancies in 2012 reflect those of the 2013 same-store pool, as constituted on December 31, 2013 and occupancies in 2011 reflect those of the 2
Slide 9: Historical Revenue Growth
Historical Revenue Growth Historical Revenue GrowthRecord same-store revenue growth for storage REITS Record same-store revenue growth for storage REITS Long-Term Avg. 1 3.9%3.9% 1)Average reported same-store performance of publicly traded REITs in operation for each respective period. Source: compa
Slide 10: Performance Fueled by Innovation
image00410 Performance Fueled by Innovation Performance Fueled by Innovation Enhancing the Customer experience at all points of engagement through proprietary systems and processes Enhancing the Customer experience at all points of engagement through proprietary systems and processes Reservation Res
Slide 11: An Award-Winning Service Culture
Portrait.pngC:\Users\cplace\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\LBZKQ647\2013 Stevie Winner Logo Portrait.pngInnovation Innovation Innovation in Customer in Customer in Customer ServiceServiceService Customer Customer Customer Service Service Service Department D
Slide 12: Improving Net Operating Income Margin
http://www.stevieawards.com/uploads/image/SASCS14_Gold_V.pngC:\Users\cplace\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\LBZKQ647\2013 Stevie Winner Logo Portrait.pngC:\Users\druble\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\K9ILLW3C\ISS_BoB_
Slide 13: 2014 Outlook: Full-Year Guidance
Continuation of operational strength Full-Year Guidance1 Full-Year Guidance1 $0.99 to $1.02 $0.99 to $1.02 FFO2 per Share 6.5% to 7.5% 6.5% to 7.5% NOI Growth 5.25% to 6.25% 5.25% to 6.25% Revenue Growth 3.0% to 3.75% 3.0% to 3.75% Expense Growth Same-Store Guidance Components: .Represents 10.4% ann
Slide 14: Investment Strategy and Outlook
Improving Net Operating Income Margin Higher occupancies & operational efficiencies drive margin growth Higher occupancies & operational efficiencies drive margin growth 12 14 Investment Strategy and Outlook Investment Strategy and OutlookExternal Growth External Growth .Focus on quality properties
Slide 15: High-Quality Portfolio
15 High-Quality Portfolio High-Quality PortfolioSignificant evolution over past six years Significant evolution over past six years Note: Bubbles sized by revenue. 1)Realized annual rent per occupied sq ft is computed by dividing rental income by the weighted occupied sq ft for the period. 2)Include
Slide 16: Prudent Portfolio Repositioning
Acquisitions1 Acquisitions1 16 Prudent Portfolio Repositioning Prudent Portfolio Repositioning Focus on building depth in attractive, high-barrier-to-entry markets Focus on building depth in attractive, high-barrier-to-entry markets Investment Activity Since 2008 $1.5 billion 148 Stores $1.5 billion
Slide 17: Focused Investment Strategy
Focused Investment StrategyFocused Investment Strategy Geographic Exposure % of portfolio NOI 1 1)Pro forma net operating income; including acquisitions announced and under contract as of March 31, 2014. 17 Targeted investment markets represent 71% of portfolio NOI1 Targeted investment markets repre
Slide 18: Capacity for New Supply
Capacity for New Supply Capacity for New Supply 10 largest targeted investment markets are primarily undersupplied 10 largest targeted investment markets are primarily undersupplied 18 1)Source: 2014 Self-Storage Almanac, by MSA. National Average Rentable Square Footage per Person1 Rentable Square F
Slide 19: Joint Venture Development Pipeline
Joint Venture Development Pipeline Joint Venture Development Pipeline Opportunistic co-development in high-barrier-to-entry markets Opportunistic co-development in high-barrier-to-entry markets 1 1 1)All amounts reflected in millions. Represents 100% of estimated project cost. 19
Slide 20: Attractive Capital Structure
C:\Users\druble\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\ICJ2K7H3\MP900399475[1].jpg20 Attractive Capital Structure Attractive Capital Structure .Investment grade balance sheet: BBB-/Baa3. .Acquisitions will be funded in a manner consistent with maintaining investment gra
Slide 21: Investment Grade Balance Sheet
21 Investment Grade Balance Sheet Investment Grade Balance SheetObjective of funding growth in manner that maintains or improves metrics Objective of funding growth in manner that maintains or improves metrics Investment Grade Rating Investment Grade Rating As of March 31, 2014 Conservative Metrics
Slide 22: Flexibility to Support Growth
22 Flexibility to Support Growth Flexibility to Support Growth Capital structure affords access to full spectrum of capital sources Capital structure affords access to full spectrum of capital sources Capital Structure Capital Structure As of March 31, 2014 66% 66% 2% 2% 13% 13% 6% 6% 13% 13% % of T
Slide 23: Summary
Summary Summary continuing industry consolidation .Robust organic growth .Meaningful external growth supported by a healthy, investment grade balance sheet .Limited new supply, a widening competitive divide between large and small operators, and continuing industry consolidation .Robust organic grow
Slide 24: Investor Relations Contact
San Antonio_Day.jpgDate San Antonio_Day.jpgInvestor Relations Contact Charles Place Director, Investor Relations 5 Old Lancaster Rd. Malvern, PA 19355 610.535.5700 cplace@cubesmart.com