BEST-IN-CLASS PERFORMANCE 2015 Q3 SAME-STORE

Transcription

1 REITWorld 2015

2 PSA SSS PSA SSS CUBE CUBE BEST-IN-CLASS PERFORMANCE 2015 Q3 SAME-STORE 14.0% 12.0% 12.6% 10.0% 8.0% 9.9% 8.4% 8.4% 9.3% 6.0% 6.7% 6.5% 7.4% 4.0% 2.0% 3.0% 1.9% 2.6% 3.2% 0.0% REVENUE EXPENSES NOI *Data as of September 30, 2015 as reported in public filings

3 PSA SSS PSA SSS CUBE CUBE 39 QUARTERS OF AVERAGE SAME-STORE OUTPERFORMANCE 7.0% 6.0% 6.4% 5.0% 4.0% 4.6% 3.9% 4.4% 4.9% 3.8% 3.0% 3.2% 3.3% 2.0% 2.0% 2.5% 1.0% 1.1% 0.0% REVENUE 0.6% EXPENSES NOI *Data as of September 30, 2015 as reported in public filings

4 PSA SSS CUBE CUBE BEST-IN-CLASS PERFORMANCE 2015 YTD AFFO GROWTH 18.0% 16.0% 14.0% 17.1% 16.5% 12.0% 13.3% 10.0% 8.0% 9.5% 6.0% 4.0% 2.0% 0.0% FFO as adjusted *Data as of September 30, 2015 as reported in public filings

5 EXR BEST-IN-CLASS REIT PERFORMANCE 10-Year Total Return All Public REITS Storage Sector 1. Extra Space Storage (EXR) 760.7% 2. GEO Group (GEO) 565.6% 3. Digital Realty Trust (DLR) 452.7% 4. Omega Healthcare (OHI) 431.6% 1. Extra Space Storage (EXR) 760.7% 2. Public Storage (PSA) 369.7% 3. Sovran Self Storage (SSS) 234.8% 4. CubeSmart (CUBE) 90.1% 5. Sun Communities (SUI) 379.1% *Results from KeyBanc Leaderboard as of November 6, 2015

6 CONTINUED GROWTH 1,335 PROPERTIES 738 WHOLLY-OWNED 55% JOINT 252 VENTURE JOINT VENTURE 19% MANAGED 345 MANAGED 26% *As of October 1, 2015

7 DIVERSIFIED PORTFOLIO Northwest 14 1% Northeast % California % Mtn West 122 9% Midwest % Southeast % Mid-Atlantic % Core Market Secondary Market Hawaii 11 1% Texas 119 9% Florida & P.R % No Presence *As of October 1, 2015

8 SUCCESSFUL ACQUISITION OF SMARTSTOP Before 10/1 Trained 325 store employees Trained six District Managers Involved 300+ EXR employees in training/transition Processed payroll and benefits for SmartStop employees Implemented pricing systems Notified all SmartStop customers of merger via 10/1 10/3 Smartstop.com pages redirected to extraspace.com Able to accept online payments and reservations for SmartStop customers Calls rolling to stores and call center Temporary or permanent EXR signage installed EXR District Managers and Store Managers in SmartStop stores for first 2 weeks Data converted to EXR platform Point-of-sale system live Firewalls installed Stores look, feel and operate like EXR stores Now Business as usual Constant training Capex projects underway Constant Communication Central Command System + Cross-functional Team Coordination with SmartStop

9 SMARTSTOP REVENUE UPSIDE ~$ % ~$ % OCCUPANCY NET RENT PER SF *Occupancy for the same-store pool as of September 30, Net rent per SF for stores in common markets, excluding parking.

10 OPPORTUNITY FOR CONSOLIDATION 5.6% 3.8% 1.6% 1.4% 0.8% U.S. Market Share by Square Footage 0.6% Non-REIT Properties 86.2% *Data from public filings as of September 30, Total U.S. storage square footage per the 2015 Self-Storage Almanac.

11 CONSISTENT GROWTH 1,400 Extra Space Storage Branded Stores 1,300 1,335 1,200 1,100 1,000 1,029 1, * *As of October 1, 2015

12 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 ROBUST ACQUISITION ACTIVITY Annual Acquisition Volume ($ in millions) $1, Stores $800 $600 $400 $200 $701 $ Stores 78 Stores $ Stores $ * *Includes YTD closings and 2015 scheduled closings under contract as of October 28, 2015

13 *Data as of October 28, One 2015 closing and two stores under contract was/will be purchased by a joint venture. CERTIFICATE OF OCCUPANCY ACTIVITY Stores Price 2013 Closed 1 $13.5M 2014 Closed 2 $29.3M 2015 Closed 4 $36.5M 2015 Projected Close 3 $26.1M 2016 Projected Close 10 $98.3M 2017 Projected Close 2 $34.1M 2018 Projected Close 2 $18.1M

14 SSS PSA SSS CUBE THIRD-PARTY MANAGEMENT GROWTH Total Stores Managed for Third-Party Owners YTD SSS CUBE ESS *Data as of September 30, 2015 as reported in public filings. EXR 2015 YTD includes 43 SmartStop stores managed as of October 1, 2015.

15 INDUSTRY TRENDS All-time high occupancy Pricing power and rent rate growth Lower year-over-year discounting (per rental) Constrained new supply Growing per capita usage of storage Low interest rates Ownership and management consolidation Growing technology advantage of REITs

16 YOY STREET RATE GROWTH RECORD OCCUPANCY LEADS TO PRICING POWER 18.0% % 14.0% 274 Stores 282 Stores % 220 Stores % 8.0% 6.0% 153 Stores % 2.0% 66 Stores % <90% 90% to 93% 93% to 95% 95% to 97% >97% OCCUPANCY *Data for mature pool of 995 stores as of September 30,

17 OCCUPANCY TRENDS 95.0% 94.0% 94.3% 93.0% 92.0% 91.0% 90.0% 89.0% 3.2% Max Delta 91.5% 1.0% - 2.0% Proj. YE Delta 88.0% 87.0% 86.0% 85.0% 84.0% *Data for mature pool of 995 stores Proj.

18 Source: Key industry suppliers, developers and management survey NEW SUPPLY ESTIMATES ~400 new stores ~500 new stores

19 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 stores. Average:

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

21 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 995 stores

22 INCREASING LENGTH OF STAY 65.0% 60.0% 57.9% 58.8% 59.7% 55.0% 50.0% % of customers >= 12mos 45.0% 40.0% 38.6% 40.5% 41.7% 35.0% % of customers >= 24mos 30.0% *Data measured mid-month to reduce volatility. Same store pool.

23 Cerritos, CA - before PROACTIVE SITE REDEVELOPMENT 23

24 Cerritos, CA - after PROACTIVE SITE REDEVELOPMENT 24

25 Hazlet, NJ - before PROACTIVE SITE REDEVELOPMENT 25

26 Hazlet, NJ - after PROACTIVE SITE REDEVELOPMENT

27 New York, NY- before PROACTIVE SITE REDEVELOPMENT

28 PROACTIVE SITE REDEVELOPMENT New York, NY- under construction

29 Dedham, MA CERTIFICATE OF OCCUPANCY STORES 29

30 San Antonio, TX CERTIFICATE OF OCCUPANCY STORES 30

31 San Diego, CA CERTIFICATE OF OCCUPANCY STORES 31

32 INTERACTIVE MARKETING 79 CONSULTANTS + 30 EMPLOYEES = 109+ TOTAL RESOURCES 7 OPTIMIZATION CONSULTANTS 30 FULL TIME EMPLOYEES 10 ANALYTICS CONSULTANTS 19 SEARCH ENGINE CONSULTANTS 6 SOCIAL CONSULTANTS 4 CONSULTANTS 33 PAY-PER-CLICK CONSULTANTS

33 1,335 stores * 37,700 unit types 640,000 calls YTD 800,000+ customers 5,600,000 unique visitors = MASSIVE DATA *As of October 1, 2015

34 Population Density Low High DEMOGRAPHIC STRATEGY Household Income High Low X

35 HAVE YOU USED SELF-STORAGE BEFORE? YES, WITH ANOTHER STORAGE COMPANY 19% NO, I HAVE NOT USED STORAGE BEFORE 53% YES, WITH EXTRA SPACE STORAGE 28%