Exhibit 99.1
June 2022 Investor Presentation Cu self storage |
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1. As of March 31, 2022 2. Period ending December 31, 2021 3.Market value of common equity and book value of debt as of March 31, 2022 4.Annual dividends declared in period ending December 31,2021 3 Introduction to CubeSmart A high-quality portfolio in an attractive industry with proven returns |
Why CubeSmart? A company built to perform throughout all phases of the cycle Attractive Industry Cash Flow Stability Focus on Quality Experience Well-diversified Industry-leading portfolio Continuing tog row the A well-seasoned demand characteristics demographics and aplatform through high management team with create strong industry conservative balance quality investments and experience operating fundamentalssheet produce stable further operational throughout many cash flows throughoutevolution to generate macroeconomic the entire cycle long-term value environments |
offering grade unsecured senior management team avvard for Best Customer establish the thir-d-party CubeSmar·t location as CubeSmart rental platform, Deluxe portfolio located Storage Wesl porlrolio CubeSmart's History A history of executing on strategic objectives 2004U-Store-lt initial public 2012Issued debut investment noles 2006ArrivJl of current2012Won pt ISS industry Service 2010Acquired United Stor-All to 2018Opened 1,DOOt mJnJgement pl<Jtform 2011Rebranded the company 2020Launched fully online SmartRental 2011Acquired 22 property Storage 2021Acquired 59 property primarily in NYC for $560 for $1.7 billion rnillion |
Dynamic Demand Wide ra ng e of n eeds d riv es d ema nd for the product thro ug hout a ll economic cycle s High Margins Low e xp ense loa d & c a p-ex r equire ments drive more c as h flow to the bottom line Short-Term Leases Month - to - month l eases a llow for ra pid repric i n g in re s pon s e to cha ng i ng economic co n ditions Increasing Utilization N ewly found dema n d sourc es have crea te d incre as e s in u tilization a nd product a wa reness 1. Straight average total return for CUBE, PSA, EXR, LSIfrom December 31, 2011through December 31,2021 6 Attractive Industry Strong sector fundamentals generate outsized long-term returns Self-Storage REIT Average Total Return BOO% 700% 600% 500% 400% 300% 200% 100% 0% Dec-11Dec-12Dec-13Dec-14Dec-15Dec-16Dec-17Dec-18Dec-19Dec-20Dec-21 |
markets across 38 states coverage across all attractive the portfolio, our customer providing diversification MSAs store's local community an d L------------------------------------------------------------------------------7 Cash Flow Stability National scale with a focused concentration in key markets National Scale Key Market Depth Customer Diversification CubeSmart operates in 154 A portfolio focused on With 71Ok customers across and the District of Columbia,submarkets within our core base is representative of each t hro u g h o u t the co untry no one tenant or cohor t represents a mate ria l segment of the rent roll |
Focus on Top Markets 89% of owned store NOI comes from top-40 MSAs 1 Portfolio Exposure Exposure to secondary and tertiary markets through our third-party management program and joint ventures further diversify the portfolio and leverage our operating platform 1. For the three months ending March 31,2022 8 Diversified Portfolio in Quality Markets National platform with a focus in core markets to drive long-term value •States with Owned Stores •States with Managed Stores Only |
1. Source: Evercore ISI Research Report dated March 18, 2022 2. Total owned portfolio NOI for the three months ending March 31, 2022 11% 11% 59% 19% |
long-term strategy 1. Source C>.DeSm<rt lntEmOI rnort<•tr..,.,a-<1\ 2. Source. 2022 Sef·Smr•AI""""" 3. Tpon:toio NOI for thethreemonths erdng MarCI\31,2022 Market Leader in New York City NYC competitive advantage is a key component of our Best-In Class Portfolio Unique Submarkets Our NYC stores make up the largestE<lch borough fei:lturcs <l robust loc<: l portfolio of purpose-built . Class-A economy with their own unique properties in the outer boroughs that demand drivers create vibrant billboards for our brand Lowest Supplied Market Portfolio Composition3 Supply a cross the three key o uter borough .; is 2.7 SF pP.r r.i:lpiti:l1, the lowest nJtion<:!lly <:lnd less thiJn hc:ilf the nationalaverage of 6.2 SF per capita;. Future supply will helimited due to rer.entlegisli:!tive r.h<J nges removing AllOther sP.lf stor<lge !'!ligibility for the ICAP tax Markets incenlive proyr·cHn |
Value Creation Strategy Focus on quality drives long-term shareholder value Quality Platform Sophisticated, fully integrated platform focused on providing flexible and efficient service delivery to maximize property cash flows over the long term Quality Portfolio Disciplined investment s trategy to grow our national platform o f best -in class assets in co re markets with strong demographics and demand profiles Quality Balance Sheet Investment-grade balance sheet provides flexibility to access a full array of capital sources to finance growth opportuni ties Quality Company Continued focus on corporate responsibility and risk management to ensure sustainable long-term growth |
Platform I Portfolio I Balance Sheet I Company the future sophisticated historical Operating Platform Foundation of proprietary solutions creates flexibility for Technological Platform Invest in foundational systems to provide scalability Customer Capture Attract the greatest share of demand across all channels through strategies Dynamic Pricing Maximize revenue through real-time pricing decisions that leverage customer data Service Oriented Model Provide awa rd-winning customer service to meet the many needs of our customers Ongoing Optimization Continually test new strategies to capture further efficiencies |
1. Data for full year ending December 31, 2021 |
Platform I Portfolio I Balance Sheet I Company Redefining the Customer Experience Meeting the changing needs of our customers Leveraging Digital Platforms Replicate the in-person experience across all customer touch po ints Omni-Channel Experience A fully integrated experience where customers can seamlessly tra nsition between various channels & platforms Customer Preference Provide optionality to meet the customer in the way they wish to interact Award Winning Customer Service Continue to provide industry-leading service both in-store and across all of our digital platforms |
Platform I Portfolio I Balance Sheet I Company 15 External Growth Strategy Enhancing our portfolio through strategic external growth opportunities High-Quality Acquisitions Development & Lease-Up Value-Add Joint Ventures Third-Party Management Target acquisitions of well Build and acquire purpose Genera t e outsized returns, Mutually beneficialvalue positioned, quality assets in built properties in top markets reduce risk and enhance creation by generating markets with strongto generate elevated growthfurther diversification through additionalscale a nd va lue demographics and demand over the long term acquisitions with partnersf rom our platform trends |
Platform I Portfolio I Balance Sheet I Company Multi-Faceted Growth Strategy Continue to utilize wide variety of avenues to grow the portfolio Brand Awareness Si nce 2010, incre a sed stores on the pla tform by 179°/o Customer Data Points The consistent growth in Cu beSma rt stores has subst a nt i ally increased our customer base by 519k since 201 0 1. As of March 31,2022 16 Robust Portfolio Growth Strategically increase the scale of the platform 14001,272 1200 1000 800 600 400 200 0 201020112012 20132014 201520162017 2018 201920202021 •Wholly-Owned•Joint Venture Managed |
l'lalform I l'orlfolio I Balance Sreel I Company 83% of acquisitions since 2010 in top 25 MSAs $3.0B of wholly-owned acquisitions since 20171 $1.5B of acquisitions from third party management2 17 1. Includes SO% interest in two unconsolidated joint ventures as part of the Storage West transaction 2. Since 2010 Acquisitions Disciplined investment strategy to prudently build our portfolio Strong Demographics Focus on submarkets with attractive demographics for strong long-term demand characteristics Complement Existing Portfolio Continue to identify opportunities to improve coverage across core markets Platform Value-Add Placing new properties on the CubeSmart platform generates multi-year yield expansion Strategic Lease-up Opportunities Acquire properties with remaining lease-up when we can generate elevated returns |
P.atform I Portfolio I Balance Sheet I Company $628M of new projects delivered1 $92M of new projects in the pipeline2 100% of new development in top 1 0 markets 1. Oevelopm ent deliveries as of March 31, 2022 (does not include C/0 acquisitions) 2. As of March 31,2022 18 Development Strategic partnerships drive additional long-term value to our shareholders Partner with Local Developers Partner with developers that have local market expertise and can source high-quality sites Focus on Top Markets Targeted projects in high-quality markets that generate attractive long-term risk-adjusted returns Operational Expertise Leverage CubeSmart's operating platform to optimally design and efficiently lease-up new stores Portfolio Refresh Enhance the quality of our existing portfolio through purpose-built, flagship properties that showcase our brand |
Platform I Portfolio I Balance Sheet I Company 5 diff eren t ventures 1 $999M joint venture inves tment1 88 t ot a l p ro pe rties 1 1. As of March 31,2022. Excludes 2 unconso l idated joint ventures acqu d as a part of the Sto rage West transaction 19 ire Joint Venture Advantages Strategic investment with joint venture partners adds value to our portfolio Strong Returns Adding fee revenue and promoted interests increases our return profile for transactions Diversification Further diversifying cash flow and exposure to markets outside of core a cq u isition strategy Opportunistic Unstabilized Acquisitions Spread investment capital across additional transactions through a minority interest while mitigatin g d ilution th rou g h fe es Acquisition Opportunities Opportunity to purchase the assets that are a strategic fit at the end of the hold period |
Platform I Portfolio I Balance Sheet I Company 664 pro p ert i es1 $31M ma n agement fee inc ome2 200+ pa rtnershi ps1 1. As of Ma rch 31, 2022 2. For the yea r e nding Decem ber 31, 2021 20 Third-Party Management Mutually beneficial relationships drive additional long-term value to our shareholders Profitability Create additional revenue streams for our shareholders through management and other fees Scale Continue expanding our national footprint and brand as we take on additional stores, increasing opera t ing effi c ie nc i es Acquisition Pipeline Opportunity for relationship-driven transactions while utilizing our knowledge of the assets to reduce u nderwriti ng risk Relationships Build a group of partners to share insights and indus try trends |
Platform I Portfolio I Balance Sheet I Company 100. 0% 80. 0% ensuring access to a variety of attractively-priced capital •Unsecured Debt &POOR'S [Stable] [Stable] 7.0x 2.0x 1. Source: Company Filings, as of December 31of each stated year 2. Calculated as annual EBITDA I Interest Expense 21 Financial Strength Ensuring stability while funding growth Debt to Gross Assets1 : 41.2% Continue to operate with credit metrics at the conservative end of our investment grade rating, •Secured Debt MooDY's8aa2 STANDARD 8 88 201920202021 Net Debt to EBITDA1 : 5.4xCoverage1• 2 : 6.7x 6.0x 5.0x 4.0x 3.0x 2.0x 1.0xO.Ox 2017201820192020202120172018201920202021 60. 0% 40. 0% 20.0% 0.0% 20172018 EBITDA 8.0x 6.0x 4.0x |
1. As of March 31, 2022 •• •• • • • •• • |
Platform I Portfolio I Balance Sheet I Company Named Executive Officers 14years with CubeSmart 20years in self storage 21years at publicly-traded REITS 23 Experienced Management Lengthy track record of experience through all phases of the cycle 2.5Funds from Operations, as Adjusted 2 1.5 0.5 0 20112012 2013 2014 2015 2016 2017 2018 20192020 2021 |
Platform I Portfolio I Balance Sheet I Company 1. Annualized assuming no change i n current dividend rate 24 Sharing Cash Flow Growth Consistent history of dividend increases to return capital to investors Annual Dividend per Share $2.00+391 °/o $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $-2012201320142015201620172018201920202021 |
sustainability .il' r.c ;rw<'{ lu ud sl r ca i.l r iecllu ;, J l::i:;\ .,,.:;1.. s::J ::; emi siu·1s. ' ::.t::: re::.. ·:·tsten·s.\·Vh ·c, will sig(·if cilr ::)''V r·es a 11,' '"V.r: .1'-<r•.:-Ic·r-l''ke GHG en·is'or ·. u. Ll·:.;e l.:.:r :::,). r.r:::du e;,: /.f.) Mi.lion \•'•.'" 18.8o/: i1 rc<J:oc lrom 2020. Environmental Highlights Minimizing our environmentalimpact for long-term Environmental Targets Solar Program HVAC Upgrades I:,·..hli,-I,•P.1t?. I'QP.tr. t.-,A.dd ci .'",(,l .=,r pArP.I!". t:-: (:. In ?li/1,·..v,., .nbr.:Arti rF:dl.:-::.on.nrr ptiun Flr::<l'<·Vner. !.' torP..=. w·itl" r.r:1j r:tsccmriP.I"-O Cf.l' J-'P; Hmu!Jh 2::2· . '-NF. rmd?. sv ;.tcrn:::. :::: )n '-)CCition;:;L35Jp:Jrcrdc C·Ur -Ni\C < gai1), t:het.e t:l'"ge:r.,··,vi:hlr ?07'1. \)Jr $ f Vrt,-:r,.:wer :t.r Cl C err r ;; rEJ.ion 'n Sc<.>pr 1 & 2 ol 1enew l;l;er·er ;·, a·t ;,l.:{ r.r |
Platform I Portfolio I Balance Sheet I Company e of defines Policy prohibits Social Highlights Investing in our team and communities Engagement & DevelopmentDiversity, Equity, and Inclusion We value our teammates' We believe our business is better becaus engagement. In 2021, our annual the diversity of our team. Our Philosophy Teammate Engagement Survey had a Regarding Respect in the Workplace 91% response rate. Our goal is to help our approach to diversity, inclusion, and our teammates grow with our treatment of differences and is company. Last year over 390 acknowledged by allteammates. Our teammates were promoted into new on Equal Employment Opportunity roles. We supported this goalthrough discrimination in all aspects of employme an average of 17 hours of training per teammate. Community EngagementSupply Chain & Human Rights We are proud to serve the We established the CubeSmart Code communities in which we operate.of Ethics, Conduct & Human Rights Through our volunteering and for Vendors and Suppliers to hold our fund raising efforts, we've supported partners to our own standards and numerous local charities and ensure that we're doing our part to community organizations.protect human rights and promote ethicalconduct. nt. |
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96.0% 2.9°/o Expense growth 21.4°/o 92.0% 90 . 0% JanFebMar AprMay Jun Jul AugSepOctNov Dec 1. Same-store results for the three months ending March 31, 2022 28 Operational Performance Strong fundamentals provide strong outlook for future growth Same-Store Rentals Same-Store Vacates 25,000 25,000 20,000 20,000 15,000 10,000 5,000 JanFeb Mar AprMay Jun Jul AugSepOctNov DecMay Jun Jul AugSepOctNov Dec • 2021 • 2022 • 2021 • 2022 Same-Store Occupancye Results1 98. 0% 94. 0% 88. 0% -2020 2021 2022 NOI Growth - - - 15,000 10,000 5,000 JanFeb Mar Apr - 2022 Same-Stor 15.6°/o Revenue growth |