SmartStop Self Storage 8-K 2013 and First Quarter 2014 Update

2013 and First Quarter 2014 Update

2013 and First Quarter 2014 Update

Strategic Storage Trust, Inc.

Exhibit 99.1

Disclaimer and Risk Factors

2

Disclaimers

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this material, other than historical facts, may be considered forward-looking statements within the

meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange

Act of 1934, as amended (the “Exchange Act”). We intend for all such forward looking statements to be covered by the applicable

safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange

Act, as applicable. Such statements include, in particular, statements about our plans, strategies, and prospects and are subject to

certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those

projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such

forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,”

“intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Readers are cautioned not to place undue reliance on

these forward-looking statements, which speak only as of the date this report is filed with the Securities and Exchange Commission.

We cannot guarantee the accuracy of any such forward looking statements contained in this material, and we do not intend to

publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Any such forward-looking statements are subject to risks, uncertainties, and other factors and are based on a number of assumptions

involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are

difficult or impossible to predict accurately. To the extent that our assumptions differ from actual results, our ability to meet such

forward-looking statements, including our ability to generate positive cash flow from operations and provide distributions to

stockholders, and our ability to find suitable investment properties, may be significantly hindered.  All forward-looking statements

should be read in light of the risks identified in our 2013 Annual Report on Form 10-K.

Disclaimer and Risk Factors

3

Risk Factors

See our Form 10-K, and recent Form 10-Q for specific risks associated with an investment in Strategic Storage Trust, Inc.

As of March 31, 2014, our accumulated deficit was approximately $70 million and we may have a net loss in 2014.

No public market currently exists for shares of our common stock. It may be difficult to sell your shares. If you sell your shares,

it will likely be at a substantial discount.

We have paid distributions from sources other than our cash flows from operations. We are not prohibited from undertaking

such activities by our charter, bylaws or investment policies, and we may use an unlimited amount from any source to pay our

distributions. We also may be required to sell assets or issue new securities for cash in order to pay distributions. Any such

actions could reduce the amount of capital we ultimately invest in assets and negatively impact the amount of income available

for future distributions.

We have no employees and must depend on our advisor to select investments and conduct our operations, and there is no

guarantee that our advisor will devote adequate time or resources to us.

Our board of directors may change any of our investment objectives, including our focus on self storage facilities.

We

will

pay

substantial

fees

and

expenses

to

our

advisor

and

its

affiliates

which

will

reduce

cash

available

for

investment

and

distribution.

There are substantial conflicts of interest among us and our sponsor, advisor and property manager.

We

may

fail

to

remain

qualified

as

a

REIT,

which

could

adversely

affect

our

operations

and

our

ability

to

make

distributions.

We may incur substantial debt, which could hinder our ability to

pay distributions to our stockholders or could decrease the

value of your investment.

Future distribution declarations are at the sole discretion of our board of directors and are not guaranteed. Since our inception,

our cumulative distributions have exceeded cumulative GAAP earnings. We cannot assure you that we will achieve any of our

investment objectives.

We encourage you to review our SEC filings at www.sec.gov.

Agenda

4

•

Overview

•

Performance Highlights

•

Acquisitions

•

Development/Lease-up Performance

•

Toronto, Canada Solar Installations

•

Self Storage Industry Update

Overview

•

First publicly registered non-traded REIT

focused on self storage

•

Sponsor was ranked 7th in Mini-Storage

Messenger’s Top Operators List in 2013

•

As of 3/31/14, SSTI owned 125 properties in

17 states and Ontario, Canada with

approximately 80,000 units and 10.4 million

rentable square feet

5

Overview

6

*As of April 5, 2014

Owned Properties by Quarter

Overview

7

Square Footage by State (as of 3/31/2014)

•

125 properties

•

17 states, 1 province

•

80,000 units

•

10.4 million SF

8.9%

2.8%

6.2%

13.8%

2.1%

2.1%

3.8%

4.0%

4.0%

16.4%

9.6%

2.0%

4.0%

2.8%

0.8%

4.0%

8.4%

4.3%

Self Storage Footprint

8

Population

26,059,203

Population

75,232,171

Population

6,054,191

Population

47,353,616

This map depicts the locations of our primary target markets, although we may acquire properties elsewhere.

Population

39,135,452

Agenda

•

Overview

•

Performance Highlights

•

Acquisitions

•

Development/Lease-up Performance

•

Toronto, Canada Solar Installations

•

Self Storage Industry Update

9

Performance Highlights –

Fourth Quarter 2013

10

Cash Flow from Operations

•

$3.1 Million for Three Months Ended 12/31/2012

•

$5.2 Million for Three Months Ended 12/31/2013

67%

•

$9.6 Million for Twelve Months Ended 12/31/2012

•

$19.3 Million for Twelve Months Ended 12/31/2013

102%

IPA Modified Funds from Operations

•

$4.2 Million

for Three Months Ended 12/31/2012

•

$5.6 Million for Three Months Ended 12/31/2013

33%

•

$9.0 Million for Twelve Months Ended 12/31/2012

•

$20.6 Million for Twelve Months Ended 12/31/2013

129%

Performance Highlights –

Fourth Quarter 2013

11

Fourth Quarter 2013 vs. 2012

•

Revenues

8.6%

•

Net Operating Income

13.9%

2013

2012

•

Property Operating Expenses as a Percentage of

Revenue

37.9%

40.8%

•

Number of Facilities

101

101

Same Store Performance

Performance Highlights

12

Prior Year Occ Sq Ft (%)

76.4%

76.1%

78.3%

78.4%

77.4%

73.3%

79.0%

80.4%

79.3%

80.6%

Current Year Occ Sq Ft (%)

77.2%

77.1%

82.6%

82.3%

82.0%

81.6%

84.6%

84.5%

83.0%

84.5%

No. of Properties

41

45

60

71

76

89

89

90

100

108

Q4-11

Q1-12

Q2-12

Q3-12

Q4-12

Q1-13

Q2-13

Q3-13

Q4-13

Q1-14

70.0%

72.0%

74.0%

76.0%

78.0%

80.0%

82.0%

84.0%

86.0%

88.0%

(1,200)

800

2,800

4,800

6,800

8,800

Same Store Occupancy

Q4-2011 to Q1-2014

Move Ins

Move Outs

Net

Current Year Occ Sq Ft (%)

* Does not include Canadian properties, but does include consolidated joint venture, SF property.

Performance

Highlights

–

First

Quarter

2014

13

Cash Flow from Operations

•

$4.0 Million for Three Months Ended 3/31/2013

•

$6.3 Million for Three Months Ended 3/31/2014

57%

IPA Modified Funds from Operations

•

$4.6 Million

for Three Months Ended 3/31/2013

•

$6.3 Million for Three Months Ended 3/31/2014

35%

Performance

Highlights

–

First

Quarter

2014

14

First Quarter 2014 vs. 2013

•

Revenues

7.6%

•

Net Operating Income

8.1%

2014

2013

•

Property Operating Expenses as a Percentage of

Revenue

39.4%

39.7%

•

Number of Facilities

109

109

Same Store Performance

NOI and MFFO Definition

15

Net

Operating

Income

(“NOI”)

•

Funds

from

Operations

(“FFO”)

and

Modified

Funds

from

Operations

(“MFFO”)

•

•

NOI is a non-GAAP measure that we define as net income (loss), computed in accordance with GAAP, generated from properties

before corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization,

acquisition expenses and other non-property related expenses. We believe that net operating income is useful for investors as it

provides a measure of the operating performance of our operating

assets because net operating income excludes certain items

that are not associated with the operation of the properties. Additionally, we believe that NOI is a widely accepted measure of

comparative operating performance in the real estate community. However, our use of the term NOI may not be comparable to

that of other real estate companies as they may have different methodologies for computing this amount.

Due to certain unique operating characteristics of real estate companies, the National Association of Real Estate Investment

Trusts, or NAREIT, an industry trade group, has promulgated a measure known as funds from operations, or FFO, which we

believe to be an appropriate supplemental measure to reflect the

operating performance of a REIT. The use of FFO is

recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to our net income (loss) as

determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the

Board of Governors of NAREIT, as revised in February

2004, or the White Paper. The White Paper defines FFO as net income

(loss) computed in accordance with GAAP, excluding gains or losses from sales of property and asset impairment writedowns,

plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for

unconsolidated partnerships and joint ventures are calculated to

reflect FFO on the same basis. Our FFO calculation complies

with NAREIT’s policy described above.

NOI and MFFO Definition –

Con’t

16

•

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and

improvements, which implies that the value of real estate assets diminishes predictably over time. Diminution in value may

occur if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances or other

measures necessary to maintain the assets are not undertaken. However, we believe that, since real estate values historically

rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer

spending, presentations of operating results for a REIT using historical accounting for depreciation may be less informative. In

addition, in the determination of FFO, we believe it is appropriate to disregard impairment charges, as this is a fair value

adjustment that is largely based on market fluctuations and assessments regarding general market conditions which can

change over time. An asset will only be evaluated for impairment if certain impairment indications exist and if the carrying

value, or book value, exceeds the total estimated undiscounted future cash flows (including net rental revenues, net proceeds

on the sale of the property, and any other ancillary cash flows at a property or group level under GAAP) from such asset.

Testing for impairment is a continuous process and is analyzed on a quarterly basis. Investors should note, however, that

determinations of whether impairment charges have been incurred are based partly on anticipated operating performance,

because estimated undiscounted future cash flows from a property, including estimated future net rental revenues, net

proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an

impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO as described

above, investors are cautioned that due to the fact that impairments are based on estimated future undiscounted cash flows

and that we intend to have a relatively limited term of our operations, it could be difficult to recover any impairment charges

through the eventual sale of the property. To date, we have not recognized any impairments.

•

Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair

value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate

valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate related

depreciation and amortization and impairments, assists in providing a more complete understanding of our performance to

investors and to our management, and when compared year over year, reflects the impact on our operations from trends in

occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be

immediately apparent from net income (loss).

NOI and MFFO Definition –

Con’t

17

•

However, FFO or Modified FFO (“MFFO”), discussed below, should not be construed to be more relevant or accurate

than

the current GAAP methodology in calculating net income (loss) or

in its applicability in evaluating our operating

performance. The method utilized to evaluate the value and performance of real estate under GAAP should be considered a

more relevant measure of operational performance and is, therefore, given more prominence than the non-GAAP FFO and

MFFO measures and the adjustments to GAAP in calculating FFO and

MFFO.

•

Changes in the accounting and reporting rules under GAAP that were put into effect and other changes to GAAP accounting

for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled

expenses, specifically acquisition fees and expenses, as items that are expensed as operating expenses under GAAP. We

believe these fees and expenses do not affect our overall long-term operating performance. Publicly registered, non-traded

REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years

of investment and operation. The purchase of properties, and the

corresponding expenses associated with that process, is a

key feature of our business plan in order to generate operational income and cash flow in order to make distributions to

investors. While other start-up entities may also experience significant acquisition activity

during their initial years, we

believe that publicly registered, non-traded REITs are unique in that they typically have a limited life with targeted exit

strategies within a relatively limited time frame after the acquisition activity ceases. Our board of directors is in the process

of determining which liquidity event, if any, is in the best interests of us and our stockholders (i.e., listing of our shares of

common stock on a national securities exchange, a merger or sale, the sale of all or substantially all of our assets, or another

similar transaction). We expect to achieve a liquidity event within three years, which is generally comparable to other

publicly registered, non-traded REITs. Thus, we do not intend to continuously purchase assets and intend to have a limited

life. The decision whether to engage in any liquidity event is in the sole discretion of our board of directors. Due to the

above factors and other unique features of publicly registered, non-traded REITs, the Investment Program Association, or

the IPA, an industry trade group, has standardized a measure known as modified funds from operations, or MFFO, which

the IPA has recommended as a supplemental measure for publicly registered, non-traded REITs and which we believe to be

another appropriate supplemental measure to reflect the operating performance of a publicly registered, non-traded REIT

NOI and MFFO Definition –

Con’t

18

having the characteristics described above. MFFO is not equivalent to our net income (loss) as determined under GAAP, and

MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not ultimately engage

in a liquidity event. We believe that, because MFFO excludes acquisition fees and expenses that affect our operations only in

periods in which properties are acquired and that we consider more reflective of investing activities, as well as other non-

operating items included in FFO, MFFO can provide, on a going-forward basis, an indication of the sustainability (that is, the

capacity to continue to be maintained) of our operating performance after the period in which we are acquiring our properties

and once our portfolio is in place. By providing MFFO, we believe we are presenting useful information that assists investors

and analysts to better assess the sustainability of our operating performance now that our offering has been completed. We

also believe that MFFO is a recognized measure of sustainable operating performance by the publicly registered, non-traded

REIT industry. Further, we believe MFFO is useful in comparing the sustainability of our operating performance now that our

offering has been completed and we expect our acquisition activity over the near term to be less vigorous, with the

sustainability

of

the

operating

performance

of

other

real

estate

companies

that

are

not

as

involved

in

acquisition

activities.

Investors are cautioned that MFFO should only be used to assess the sustainability of our operating performance now that our

offering has been completed and we expect our acquisition activity over the near term to be less vigorous, as it excludes

acquisition fees and expenses that have a negative effect on our

operating performance during the periods in which properties

are acquired.

•

We define MFFO, a non-GAAP measure, consistent with the IPA’s Guideline 2010-01, Supplemental Performance Measure for

Publicly Registered, Non-Listed REITs: Modified Funds from Operations (the “Practice Guideline”) issued by the IPA in

November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items included in the

determination of GAAP net income (loss): acquisition fees and expenses; amounts relating to straight line rents and

amortization of above or below intangible lease assets and liabilities; accretion of discounts and amortization of premiums on

debt investments; non-recurring impairments of real estate related investments; mark-to-market adjustments included in net

income; non-recurring gains or losses included in net income from the extinguishment or sale of debt, hedges

NOI and MFFO Definition –

Con’t

19

foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the

business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after

adjustments for consolidated and unconsolidated partnerships and

joint ventures, with such adjustments calculated to reflect

MFFO on the same basis. The accretion of discounts and amortization of premiums on debt investments, unrealized gains and

losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from

consolidations, as well as other listed cash flow adjustments are adjustments made to net income (loss) in calculating cash

flows from operations and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized.

Our MFFO calculation complies with the IPA’s Practice Guideline described above. In calculating MFFO, we exclude acquisition

related expenses, the amortization of fair value adjustments related to debt, realized and unrealized gains and losses on foreign

exchange holdings and the adjustments of such items related to noncontrolling interests. The other adjustments included in the

IPA’s Practice Guideline are not applicable to us for the periods presented. Acquisition fees and expenses are paid in cash by us,

and we have not set aside or put into escrow any specific amount

of proceeds from our offering to be used to fund acquisition

fees and expenses. Acquisition fees and expenses include payments to our Advisor and third parties. Acquisition related

expenses under GAAP are considered operating expenses and as expenses included in the determination of net income (loss)

and income (loss) from continuing operations, both of which are performance measures under GAAP. All paid and accrued

acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash

flows generated by us, unless earnings from operations or net sales proceeds from the disposition of other properties are

generated to cover the purchase price of the property, these fees and expenses and other costs related to such property. In the

future, if we are not able to raise additional proceeds from our

distribution reinvestment plan offering or other potential

offerings, this could result in us paying acquisition fees or reimbursing acquisition expenses due to our Advisor, or a portion

thereof, with net proceeds from borrowed funds, operational earnings or cash flows, net proceeds from the sale of properties,

or ancillary cash flows. As a result, the amount of proceeds available for investment and operations would be reduced, or we

may incur additional interest expense as a result of borrowed funds

NOI and MFFO Definition –

Con’t

20

•

Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating

non-cash adjustments to net income (loss) in determining cash flows from operations. In addition, we view fair value

adjustments of derivatives and the amortization of fair value adjustments related to debt as items which are unrealized

and may not ultimately be realized or as items which are not reflective of on-going operations and are therefore typically

adjusted for when assessing operating performance. 

We use MFFO and the adjustments used to calculate it in order to evaluate our performance against other publicly

registered, non-traded REITs which intend to have limited lives with short and defined acquisition periods and targeted exit

strategies shortly thereafter. As noted above, MFFO may not be a useful measure of the impact of long-term operating

performance if we do not continue to operate in this manner. We believe that our use of MFFO and the adjustments used

to calculate it allow us to present our performance in a manner that reflects certain characteristics that are unique to

publicly registered, non-traded REITs, such as their limited life, limited and defined acquisition period and targeted exit

strategy, and hence that the use of such measures may be useful to investors. For example, acquisition fees and expenses

were intended to be funded from the proceeds of our offering and other financing sources and not from operations. By

excluding expensed acquisition fees and expenses, the use of MFFO provides information consistent with management’s

analysis of the operating performance of the properties. Additionally, fair value adjustments, which are based on the

impact of current market fluctuations and underlying assessments of general market conditions, but can also result from

operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating

performance. By excluding such charges that may reflect anticipated and unrealized gains or losses, we believe MFFO

provides useful supplemental information.

•

NOI and MFFO Definition –

Con’t

21

•

Presentation of this information is intended to provide useful information to investors as they compare the operating

performance of different REITs, although it should be noted that not all REITs calculate FFO and MFFO the same way, so

comparisons with other REITs may not be meaningful. Furthermore, FFO and MFFO are not necessarily indicative of cash

flow available to fund cash needs and should not be considered as an alternative to net income (loss) or income (loss)

from continuing operations as an indication of our performance, as an alternative to cash flows from operations, which is

an indication of our liquidity, or indicative of funds available to fund our cash needs including our ability to make

distributions to our stockholders. FFO and MFFO should be reviewed in conjunction with other measurements as an

indication of our performance. MFFO may be useful in assisting management and investors in assessing the sustainability

of operating performance in future operating periods, and in particular, after the offering and acquisition stages are

complete and net asset value is disclosed. FFO and MFFO are not useful measures in evaluating net asset value because

impairments are taken into account in determining net asset value but not in determining FFO and MFFO.

Agenda

22

•

Overview

•

Performance Highlights

•

Acquisitions

•

Development/Lease-up Performance

•

Toronto, Canada Solar Installations

•

Self Storage Industry Update

Acquisitions –

First Quarter 2014

23

Chandler, Arizona

•

•

•

San Francisco, California*

•

•

•

Hampton, Virginia

•

•

•

*SSTI owns 98% of the San Francisco property

Centennial, Toronto (Development)

•

•

•

Land Parcel

480 units

51,000 NRSF

93.6% Occupancy

1,100 units

76,200 NRSF

86.4% Occupancy

500 units

71,500 NRSF

90.4% Occupancy

2.5 Acres

870 units (est. upon completion)

78,000 NRSF (est. upon completion)

Agenda

24

•

Strategic Storage Trust, Inc. Overview

•

Performance Highlights

•

Acquisitions

•

Development/Lease-up Performance

•

Toronto, Canada Solar Installations

•

Self Storage Industry Update

Development/Lease-up

25

Located at 600 Granite Ct,

Pickering,

Ontario, Canada

Phase 1 and phase 2 will have

approximately

890

units

and

approximately 91,000 net

rentable Sq. Ft.

All units will be 100% climate controlled

Phase 1 estimated completion in First

quarter 2015 (60,000 Sq. Ft)

Phase 2 estimated completion

early

Fourth

quarter 2015 (31,000 Sq. Ft.)

Phase 1 construction is expected to start in

Third quarter 2014

Granite Development

Development/Lease-up

26

Occ

SqFt (%)

51.00%

61.00%

67.10%

69.00%

74.60%

80.70%

83.50%

80.80%

82.10%

Development/Lease-up

27

No. of Properties

8

16

16

16

16

16

16

Occ Sq Ft (%)

63.00%

73.80%

77.40%

83.50%

84.30%

82.09%

83.90%

Q3-2012

Q4-2012

Q1-2013

Q2-2013

Q3-2013

Q4-2013

Q1-2014

55.00%

60.00%

65.00%

70.00%

75.00%

80.00%

85.00%

90.00%

(250)

250

750

1,250

1,750

2,250

Former Stockade Portfolio Occupancy %

Q3-2012 to Q1-2014

Move Ins

Move Outs

Net

Occ Sq Ft (%)

Note:

At

acquisition,

occupancy

for

this

portfolio

was:

71.3%

for

combined

16

stores

Development/Lease-up

28

Occ Sq Ft (%)

10.90%

46.40%

48.20%

34.10%

41.30%

51.90%

58.20%

63.80%

75.10%

Q1-2012

Q2-2012

Q3-2012

Q4-2012

Q1-2013

Q2-2013

Q3-2013

Q4-2013

Q1-2014

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Mavis Rental Income & Occupancy

Q1-2012 to Q1-2014

Note:  Rental Income is rounded to the nearest thousand. Mavis Occ Sq Ft (%) includes developmental stages of construction; building conversion was  completed in Dec-11 and phases of

new construction began in Mar-12 and were completed in Dec-12. Sep-12 included the addition of 123 new units or 16,329 net rentable sq. ft. Final additions were made in Dec-12 with 

another 262 new units or 35,297 net rentable sq. ft. added.

Development/Lease-up

29

Occ Sq Ft (%)

4.7%

13.2%

17.7%

22.2%

24.4%

28.1%

33.8%

37.9%

43.6%

Brampton Rental Income & Occupancy

August 2013 to

April 2014

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

Rental Income

Occ Sq Ft %

SmartStop.com –

Enhanced Technology Based Marketing

30

Agenda

31

•

Overview

•

Performance Highlights

•

Acquisitions

•

Development/Lease-up Performance

•

Toronto, Canada Solar Installations

•

Self Storage Industry Update

Toronto Solar Installations

32

Site Name

Solar system

size in AC KW

Estimated final

cost of system

Estimated date of

power production

Mavis

250

$1.0 Million

July 2014

Brampton

250

$1.1 Million

July 2014

Dufferin

250

$1.1 Million

August 2014

Mavis

Brampton

Dufferin

33

Self Storage Industry Update

Self Storage Industry Update

34

•

The Fastest Growing Segment of the

Commercial Real Estate Industry Over

the Last 35 Years

(1)

•

Unique in its Ability to Add Value as an

Operating Business

•

Low Capital Expenditure Requirements

•

No Tenant Improvements or No Leasing

Commissions

(2)

Total Self Storage Rentable Space in the US is now 2.3 Billion Square Feet

(1) 

Self Storage Association “Industry Fact Sheet”

(11/13)

(2) 

We do not pay commissions in connection with the leasing of our self storage units; however, we pay certain fees

associated with the day-to-day management and operations of our self storage facilities.

Percentage of Self Storage Facilities

(1)

Largest Self

Storage Company

Top 50

Companies

4.4%

15%

Single Facility

Owners

60%

85%

Smaller

Owners

Self Storage Industry Update

35

Source: Cushman & Wakefield Presentation –

Self Storage: the State of the Industry –

May 2013

Market Trends

Self Storage Industry Update

36

Source:

Wells

Fargo

Securities,

LLC,

and

Intex

Solutions,

Inc. -

2013

Mortgage Default History