STATE OF THE COMPANY REITWeek 2016

Transcription

1 STATE OF THE COMPANY REITWeek 2016

2 PSA SSS CUBE PSA SSS CUBE 2016 Q1 SAME-STORE PERFORMANCE 14.0% 12.0% 12.3% 12.9% 10.0% 8.0% 9.1% 8.4% 10.4% 9.9% 6.0% 6.5% 6.7% 4.0% 2.0% 0.0% 1.9% 0.8% -1.0% -2.0% -2.6% -4.0% REVENUE EXPENSES NOI *Data as of March 31, 2016 as reported in public filings

3 PSA SSS PSA SSS CUBE CUBE 41 QUARTERS OF AVERAGE SAME-STORE OUTPERFORMANCE 8.0% 7.0% 6.0% 6.7% 5.0% 4.0% 3.0% 4.9% 3.4% 4.1% 3.6% 4.6% 5.1% 4.2% 2.0% 2.1% 2.4% 1.0% 1.2% 0.0% REVENUE 0.5% EXPENSES NOI *Data as of March 31, 2016 as reported in public filings

4 PSA SSS CUBE CUBE Q1 DOUBLE-DIGIT AFFO PER SHARE GROWTH 24.0% 24.6% 20.0% 16.0% 12.0% 13.9% 11.9% 14.3% 8.0% 4.0% 0.0% *Data as of March 31, 2016 as reported in public filings FFO as adjusted growth per share

5 SIGNIFICANT DIVIDEND GROWTH Quarterly Dividend Per Share $0.90 $ % $0.70 $0.60 $0.50 $0.40 $0.30 $ % 25.0% 60.0% 17.5% 25.5% 5-year total increase of 680.0% $0.10 $0.00 *As reported in public filings

6 EXR BEST-IN-CLASS REIT PERFORMANCE Total Returns of Public REITs Three-Year Return Five-Year Return Ten-Year Return 1. CyrusOne Inc. (CONE) 152.9% 1. CoreSite Realty (COR) 437.1% 1. Extra Space Storage (EXR) 841.5% 2. CoreSite Realty (COR) 152.9% 2. Extra Space Storage (EXR) 407.2% 2. Digital Realty Trust (DLR) 490.4% 3. Extra Space Storage (EXR) 136.5% 3. Equinix REIT (EQN2) 308.4% 3. National Health Invrs (NHI) 438.7% 4. CubeSmart (CUBE) 106.8% 4. CubeSmart (CUBE) 231.5% 4. Omega Healthcare (OHI) 410.9% 5. Equity LifeStyle (ELS) 96.5% 5. Sovran Self Storage (SSS) 209.2% 5. Sun Communities (SUI) 381.6% *Results from KeyBanc Leaderboard as of May 27, 2016

7 A HIGH-GROWTH SECTOR Median Projected FFO Growth 14.0% 12.0% 10.0% 8.0% 12.5% 10.4% 11.4% 6.0% 4.0% 2.0% 0.0% 6.5% 6.6% 6.8% 5.5% 6.0% 6.2% 4.6% 4.0% 2.3% Office Multi-family Storage Industrial Triple Net Malls/Shopping Centers *Data from KeyBanc Leaderboard as of May 27, 2016.

8 NATIONAL FOOTPRINT 1,371 PROPERTIES 769 WHOLLY-OWNED 56% JOINT 249 VENTURE JOINT VENTURE 18% MANAGED 353 MANAGED 26% *As of March 31, 2016

9 DIVERSIFIED PORTFOLIO Northwest 15 1% Northeast % California % Mtn West 127 9% Midwest % Southeast % Mid-Atlantic % Core Market Secondary Market Hawaii 11 1% Texas % Florida & P.R % No Presence *As of March 31, 2016

10 Atlanta, GA SMARTSTOP INTEGRATION

11 Hawthorne, CA SMARTSTOP INTEGRATION

12 SMARTSTOP INTEGRATION Before After

13 SMARTSTOP OCCUPANCY UPDATE 96.0% 94.0% 93.6% 93.7% 92.0% 90.0% 88.0% 630 bps Starting Delta 87.3% 360 bps Current Delta 90.1% 86.0% 84.0% 82.0% EXR SmartStop *Occupancy for the common markets same-store pool as of May 31, 2016.

14 OPPORTUNITY FOR CONSOLIDATION 6.9% 4.8% 2.2% ~35.0% 2.1% U.S. Market Share by Square Footage Non-REIT Non-Institutional Quality Properties Non-REIT Institutional Quality Properties 0.8% 1.8% 46.4% *REIT data from public filings as of March 31, U-Haul and total U.S. storage square footage per the 2016 Self-Storage Almanac.

15 INSTITUTIONAL PURPOSE-BUILT STORES San Antonio, TX

16 Houston, TX NON-INSTITUTIONAL QUALITY STORES

17 CONSISTENT GROWTH 1,500 Extra Space Storage Branded Stores 1,400 1,300 1,200 1,347 1,371 1,100 1,000 1,029 1, *Data as of March 31, 2016 as reported in public filings

18 ROBUST ACQUISITION ACTIVITY $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 Annual Acquisition Volume ($ in millions) $1,769 2 $21 - JV 171 Stores $800 $600 $400 $200 $0 $701 $ Stores 78 Stores $531 $ YTD Wholly Owned 51 Stores Joint Venture 9 49 Stores $191 - JV *As of May 2, Acquisitions in 2016 include closings YTD and stores under contract to close in JV s considered at purchase price.

19 *As of May 2, Stores are included in projected close totals once they are under contract. CERTIFICATE OF OCCUPANCY ACTIVITY Wholly-owned Joint Venture Stores Price Stores Price EXR Inv Closed 1 $13.5M Closed 2 $29.3M Closed 5 $46.1M 2 $21.5M $8.6M 2016 Closed 3 $37.7M 3 $86.5M $24.4M 2016 To Close 4 $27.5M 6 $105.0M $20.0M 2017 To Close 3 $45.2M 2 $137.0M $34.3M 2018 To Close 1 $9.3M 1 $8.8M $0.9M

20 SSS PSA SSS CUBE THIRD-PARTY MANAGEMENT GROWTH 400 Total Stores Managed for Third-Party Owners SSS CUBE EXR *Data as of March 31, 2016 as reported in public filings.

21 INDUSTRY TRENDS Constrained new supply All-time high occupancy Pricing power and rent rate growth Growing per capita usage of storage Ownership and management consolidation Growing technology advantage of REITs

22 YOY STREET RATE GROWTH RECORD OCCUPANCY LEADS TO PRICING POWER 14.0% % 10.0% 8.0% Stores 260 Stores 334 Stores 281 Stores % Stores % 2.0% 89 Stores 89 Stores % <90% 90% to 93% 93% to 95% 95% to 97% >97% OCCUPANCY *Data for mature pool of 1053 stores as of May 31,

23 OCCUPANCY TRENDS 95.0% 94.0% 93.5% 94.2% 93.0% 92.0% 91.0% 90.0% 89.0% 3.2% Max Delta 91.5% 1.7% YE Delta 88.0% 87.0% 86.0% 85.0% 84.0% *Data for Mature pool of 1,005 stores

24 CBRE Data NATIONAL NEW SUPPLY stores stores Source: CBRE, Chris Sonne - State of Affairs in Self Storage UBS 2016 Annual Self Storage Summit, January 13, 2016

25 *Only considers storage facilities with 50,000 NRSF or greater. NEW SUPPLY COMPETING WITH EXR CoStar Data Within 3 miles of an EXR store: 45 new facilities built in YTD 46 new facilities under construction 26 new facilities are proposed

26 STRONG RENTAL ACTIVITY 50 Average Monthly Rentals Per Store Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec *Data for 607 Core pool. Average:

27 STABLE VACATES 50 Average Monthly Vacates Per Store Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec *Data for 607 Core pool. Average:

28 DISCOUNT REDUCTIONS 100% Percentage of New Customers Receiving a Discount 90% 80% 70% 60% 50% 40% 30% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec *Data for Mature pool of 1,005 stores

29 INCREASING LENGTH OF STAY 65.0% 60.0% 57.7% 58.2% 60.1% 55.0% 50.0% % of customers >= 12mos 45.0% 40.0% 38.7% 40.3% 42.0% 35.0% % of customers >= 24mos 30.0% *Data measured mid-month to reduce volatility. 607 Core stores.

30 COMMITMENT TO TECHNOLOGY OPTIMIZATION Internet 29 FTE s BRANDING Call Center 88 FTE s Revenue Mgt. 11 FTE s DATA/ANALYTICS

31 COMMITMENT TO MOBILE THE AVERAGE AMERICAN LOOKS AT THEIR PHONE 120 TIMES A DAY

32 MANAGEMENT DEPTH Scott Stubbs CFO 16 years Spencer Kirk CEO 18 years Joe Margolis CIO 11 years* Gwyn McNeal CLO 11 years James Overturf CMO 18 years *Includes Mr. Margolis time as Director on Extra Space Storage s board. Samrat Sondhi COO 11 years Ken Woolley Executive Chairman 39 years

33 Interest Coverage Ratio: 4.65 Fixed Charge Ratio: 3.21 Net Debt/EBITDA: 6.33 Fixed Debt %: 77.8% SOLID BALANCE SHEET 1,400 1,200 1, Debt Maturities 384 in millions 1, Weighted Average Interest Rate: 3.2% Average Maturity: 4.8 years Total Revolving Capacity: $355 million ATM Capacity: $400 million *For the quarter ending March 31, Coverage Ratios Interest Coverage Ratio Fixed-Charge Coverage Ratio

34 PROACTIVE SITE REDEVELOPMENT Alexandria, VA - before

35 Alexandria, VA - after PROACTIVE SITE REDEVELOPMENT

36 Richmond, CA - before PROACTIVE SITE REDEVELOPMENT 36

37 Richmond, CA - after PROACTIVE SITE REDEVELOPMENT 37

38 Manhattan, NY CERTIFICATE OF OCCUPANCY STORES

39 Denver, CO CERTIFICATE OF OCCUPANCY STORES