Form 8-K CubeSmart For: Feb 24 Filed by: CubeSmart, L.P.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant To
Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 24, 2016
CUBESMART
CUBESMART, L.P.
(Exact Name of Registrant as Specified in Charter)
Maryland |
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001-32324 |
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20-1024732 |
Delaware |
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000-54462 |
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34-1837021 |
(State or Other Jurisdiction |
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(Commission File Number) |
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(IRS Employer Identification |
5 Old Lancaster Road
Malvern, PA 19355
(Address of Principal Executive Offices)
(610) 535-5700
(Registrants telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
We are furnishing with this report a slide presentation (attached as Exhibit 99.1) that may be used in presentations to investors from time to time.
Item 7.01 Regulation FD Disclosure.
The information disclosed in Item 2.02 above is incorporated into this Item 7.01.
The information included in this Current Report on Form 8-K (including the exhibit hereto) is being furnished under Item 2.02, Results of Operations and Financial Condition, Item 7.01, Regulation FD Disclosure and Item 9.01 Financial Statements and Exhibits of Form 8-K. As such, the information (including the exhibit) herein shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such a filing. This Current Report (including the exhibit hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
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Description |
99.1 |
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Slide Presentation dated February 2016 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CUBESMART | |
Date: February 24, 2016 |
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By: |
/s/ Jeffrey P. Foster |
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Name: |
Jeffrey P. Foster |
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Title: |
Senior Vice President, Chief Legal |
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CUBESMART, L.P. | ||
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By: CubeSmart, its general partner | ||
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Date: February 24, 2016 |
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By: |
/s/ Jeffrey P. Foster | |
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Name: |
Jeffrey P. Foster | |
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Title: |
Senior Vice President, Chief Legal | |
Exhibit 99.1
1 FEBRUARY 2016
[LOGO]
INTRODUCTION TO CUBESMART Self-Storage REIT with Expansive National Platform by Market Owned Portfolio CUBE ll,.jlijJ $6.75 billion Malvern, PA NVSE. 1) Property count as of December 31,2015. 2) Market value of common and book value of preferred equity and debt as of December 31, 2015. ® Cu
4 120.0% 100.0% 9 2 .1% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% S& P 500 RMZ Self-S torage REITs CUBE 1 1 0.2% 3 8 .7% 1 Y ear 2 Y ear 3 Y ear
LONG-TERM VISION FOR VALUE CREATION EXTERNAL GROWTH Continue to prudently build a portfolio of high-quality assetsJ with a focus on targeted markets. ®Cu-------------------------------------------------------------------------------------------------------------------------------------FINANCIAL STRENGTH Finance growth by strategically accessing the full array of capital sources available through a BBB/Baa2 investment grade balance sheet. INTERNAL GROWTH Maximize portfolio value through continued focus on customer service and operational enhancements.
[LOGO]
GJ INTERNAL GROWTH: PERFORMANCE FUELED BY INNOVATION Enhancing the customer experience at all points of engagement through proprietary systems and processes. Constantly testing digital platforms, utilizing marketing advancements, sophisticated systems, and new programs that strengthen customer relationships before, during and after the storage rental process. Developing and implementing sophisticated processes and systems to inform pricing decisions related to attracting and retaining customers, with the ultimate objective of maximizing value from each rentaI. Raising the bar for customer expectations by making strategic investments in people, training, and technology to better meet customer needs and improve our customer's storage expenence. ®Cu------------------------------------------------------
INTERNAL GROWTH: INTERNET MARKETING Optimizing marketing efforts and efficiently attracting customers through use of industry leading analytics. Jamaica Self Storage - CubeSmart.com WNW cubesmart com/ Up to 1 Month Free Rese<Ve Today It's Fast & Easy To Reserve Onlme Find a Locatioo - Up to 1 Mooth Free - Vehci le Storage - Business Storage Jamaica, NY Storage - Find Local Storage Near You Today WNW storage-mart c om/Jamaica (866) 502-2058 4 6 ****' rat1ng f«storage-mart c«n Get 1st Mooth Free Rese<Ve Onl1ne A+ Accredited Rat1ng 2015-Better Bus1ness Bureau 1 ®q'Ydo"'" .)a ,e! ATf.,. @ .,. QutfN' VI Ai JAMAICAN LS \ lOLls a '!! A CubeSmart Self Storage 179-36 Jamaic a Ave (718)657-0562 Open until8:00 PM Webs1te Direc tions B Public Storage 22002 Jama1ca Ave (347) 815-9708 Open until6:00 PM Website Direc tions C Safeguard Self Storage 156-01 Liberty Ave ·(718) 233-3884 Open until 7.00 PM Website Direc tions : More places Self-Storage Units at 179-36 Jamaica Avenue Jamaica, NY ... https.IIWWW.cubesmart.com ...storage jamaica...storage/2444.... CubeSmart Rent a Storage Umt at our local 179-36 Jamaica Avenue storage facihty 1n Jama.Jca NY Cubesmart offers affO<dable stOfage and up to 1 Month of Free StOfaget Self-Storage Units at 98-34 Jamaica Avenue Woodhaven ... https:IIWWW.cubesmart.coml...storage/Woo<lhaven...storage/24... CubeSmart Reot a Storage Unit at our local 98-34 Jamaica Avenue storage facility in Woodhaven. NY Cubesmart offers affO<dable stOfage and up to 1 Mooth of Free ®CuBESMARr
INTERNAL GROWTH: INTERNET MARKETING i'i CUSTOM EXPERIENCE 1 f) PERSONA 1 li Q <?' Q B w q......., .1. ......... ---+ II®'1./ IC:J ---+ r.\ ·I 1=!!1 CUSTOM EXPERIENCE 2 ....,.... . PERSONA 2 .....,. oC9 VISITOR DATA AND BEHAVIOR .I ..h. 1!!1 CUSTOM EXPERIENCE 3 PERSONA 3 ' :.::;; ' VISITORS ®Cu------------------------------------------------------
10
INTERNAL GROWTH: REVENUE MANAGEMENT Revenue Management Landscape Multi-Family Residential t/ t/ t/ t/ Self Storage t/ t/ t/ t/ t/ Airlines t/ t/ t/ Hotels t/ t/ t/ Supply Constraints Competition Seasonality Low Transaction Volume Unpredictable Length of Stay Historically, advanced revenue management techniques have boosted revenue in a number of supply-constrained industries, beginning with airlines and then moving on to hotels Multi-family represents the closest analogy, but the unpredictable lengths of stay for self-storage customers adds additional complexity ®Cu------------------------------------------------------
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[LOGO]
INTERNAL GROWTH: CUSTOMER SERVICE Focus on customer service throughout all touch points (store, sales center, and website) to create a fully-integrated interaction with each customer Modern offices and operational training focused on service-oriented values facilitate an efficient rental process ®Cu------------------------------------------------------
INTERNAL GROWTH: CUSTOMER SERVICE An Award-Winning Service Culture STEVI E. WIN NER STEVI E. WIN NER STEYlE. WlNNER STEVIEWLNNER STEVIE' WINNER FOR SALES& Customer Service Training Team of the Year Customer Service Department of the Year Innovation in Customer Service Customer Service Departmen t of the Year Customer Service Department of the Year Contact Center of the Year Contact Center of the Year PEOPLE'S f WINNER 1WINNER CHOICE WINNER 1 1 ..-.'ISS2014 ISS5 [' -STORAGE 2013 STEVIE' AWARDS FOR FAfORJTE OJ TOMERSERVICE I ISSINS I D E .SELF-STORAGE 2012 INSIOEs;LF-STOP.AGE: BEST OF BUSINESS, -..1'BEST OF BUSINESS, I!FST CALL-CENTER SERV!_S::ES -BEST Df BUSINESS I ""' BEST CUSTOMERS :RVJCE BEST CUSTOMER SERVICE ®Cu-------------------------------------------------------2015 WINNER FOR SALES & CUSTOMER SERVICE FOR SALES & CUSTOMER SERVICE FOR SALES& CUSTOMER SERVICE rOR SALES & C:lJSTOMFR SFRVICF rOR SALES 8 CUSTOMFR SFRVICF rOR SALES& C:USTOMFR SFRVIC:F CUSTOMER SERVICE GOLD GOLD GOLD GOLD GOLD
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@) EXTERNAL GROWTH: FOCUSED INVESTMENT STRATEGY Focus on Adding Scale in Attractive, High-Barrier-to-Entry Markets Acquisitions, 2008 - Dec. 31, 2015 Dispositions, 2008 - Dec. 31, 2015 Q Development Properties, 2014 - Dec. 31, 2015 $2.2 billion $460 million 1) Transactions closed from 2008 through December 31, 2015. 2) ncludes nvestment in 35 properties through HHF Jomt Venture. ® Cu
EXTERNAL GROWTH: FOCUSED INVESTMENT STRATEGY 18 2 2 2 1
EXTERNAL GROWTH: HIGH-QUALITY ASSETS Enhancing Our Portfolio by Adding Purpose-Built Class A Facilities Malvern,PA Bronx,NY ®Cu-------------------------------------------------------
EXTERNAL GROWTH: DEVELOPMENT Leverage Local Market Expertise of Partners to Generate Highest Returns $42.3M Total $49.3M Total $98.9M Total Total 1Q14 Bronx, NY-$17.2M 2Q15 Arlington, VA-$17.1M 1Q16 Queens, NY - $32.1M $49.8M 1Q14 Malvern, PA - $25.1M 4Q15 Queens, NY - $17.4M 2Q16 Bronx, NY-$32.0M 4Q15 Brooklyn,NY - $14.8M 3Q16 Wash, D.C. - $25.4M 4Q16 N. Palm Beach, FL-$9.4M ®Cu------------------------------------------------------$49.8M 1Q17 Brooklyn,NY -
EXTERNAL GROWTH: PURCHASE AT COMPLETION Acquire High-Quality,Purpose-Built Assets and Add to CubeSmart Platform with Sophisticated Marketing and Revenue Management Systems Total Total Total NY $48.5M $10.1M $10.8M ®Cu------------------------------------------------------------------------------------------------------------2.0M 1Q17 Miami, FL - $20.8M 1Q17 Chicago, IL-$11.2M $3 $69.4M Brooklyn,NY - Worth, TX-1Q16 Grapevine, TX - 1Q16 1Q16 Fort $15.8M To 2Q15 Dallas, TX-$15.8M tal $38.0M Long Island City, $38.0M 4Q14
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24 $500,000 $400,000 $300,000 $210,154 $200,000 $100,000 $0 $0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (in thousands) SecuredUnsecuredTotal $250,000 $252,500$250,000 $100,000 $111,627 $35,158 $50,554 $0 1) Based on EBITDA and average debt outstanding during 4Q15.
25 2010 2011 2012 2013 2014 2015 80.0% $0.60 40.0% $0.30 20.0% Dividend per Share Dividend Payout Ratio REIT Avg. Payout Ratio % of Gross Assets Dividend per Share EBITDA / Interest Expense Dividend Payout Ratio 60% 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Secured Debt Unsecured Debt 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $0.80100.0% $0.70 $0.5060.0% $0.40 $0.20 $0.10 $-0.0% 201020112012201320142015 3 3
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27 S am e - S tore Pe rf orm an c e 1 2010 2011 2012 2013 2014 2015 Ex te rn al G row th T radi n g & Val u ati on Me tri c s Market Equity Value2 $965 $1,277 $2,049 $2,335 $3,752 $5,496 Total Market Capitalization2 $1,580 $2,035 $3,073 $3,474 $4,926 $6,758 Total Gross Assets2 $1,793 $2,195 $2,504 $2,757 $3,278 $3,709 P / FFO (Trailing)3 18.7x 16.4x 19.7x 17.5x 20.4x 24.5x FFO Payout Ratio4 28.4% 44.6% 47.3% 50.5% 50.9% 55.2% Dividend Yield5 1.5% 2.7% 2.4% 2.9% 2.5% 2.7% # Acquired Properties 12 27 37 20 53 29 Acquisition Value ($MM) $85.1 $467.1 $432.3 $189.8 $568.2 $292.4 # of Disposed Properties 16 19 26 35 0 8 Disposition Value ($MM) $38.1 $45.2 $60.0 $126.4 $0.0 $37.8 Revenue Growth 0.3% 3.6% 3.8% 7.4% 7.2% 7.3% NOI Growth 1.0% 5.7% 6.0% 9.3% 9.6% 9.6% YOY Occupancy Growth (BPS) 0.6% 2.0% 3.4% 5.3% 2.6% 1.5% Annual Avg. Occupancy 76.8% 78.8% 82.6% 88.4% 90.8% 92.3%
Contact Us Contact Info Charles Place Director, Investor Relations Email: [email protected] Telephone Office Phone: 610.535.5700 ®Ou---------------------------------------------------
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