Life Storage Investor Presentation September 2017

Transcription

1 Life Storage Investor Presentation September 2017

2 Safe Harbor Statement This presentation may contain forward looking statements as defined in Section 27A of the Securities Act of 1933, and in Section 21E of the Securities Exchange Act of Forward looking statements address matters that are subject to a number of risks and uncertainties. Such factors include, but are not limited to, the effect of competition from new self storage facilities; the Company s ability to evaluate, finance and integrate acquired businesses into the Company s existing operations; the Company s ability to enter new markets where it has little or no operational experience; and other such factors as set forth in the Company s 10 K for the year ended December 31, 2016 as filed with the Securities and Exchange Commission. We are under no obligation to update any such forward looking statements. 1

3 Life Storage Locations as of 6/30/17 National platform with exposure to high growth markets. Recent acquisitions expanded footprint into Nevada and California. 697 self storage facilities 49 million 26 net rentable sq. ft ,074 customers $5.2 billion enterprise value 30+ years industry experience 697 Locations quarters consecutive dividends 566 Wholly Owned 94 Joint Venture 37 Managed Major markets Four or fewer stores

4 Bigger Better Stronger In 2016, Life Storage completed a transformational deal that enhanced the Company s portfolio and balance sheet in multiple ways. Size & Scale: No. of Stores (wholly owned) % Square Footage 30.6 million 39.7 million 30% Rental Units 270, ,046 31% Qualitative: 12/31/2015 6/30/17 % Inc. Avg. Age of Stores (wholly owned) 21.3 years 20.1 years (6%) Climate Controlled Sq. Ft million 18.1 million 40% Rate per Sq. Ft. $12.83 $ % Avg. Annual Revenue per Store $831,202 $909,142 9% Population 3 mile radius 78,742 88,789 13% Population 5 mile radius 189, ,737 14% Financial: Credit Rating BBB /Baa3* BBB/Baa2 +1 grade Credit Line Capacity $300 mil. $500 mil. 67% Wgtd. Avg. Debt Maturity Tenure 4.7 years 6.4 years 36% Increased scale by 30% Upgraded age, size & quality of portfolio Greater geographic diversification Strengthened demographic profile Improved credit rating to BBB/Baa2 *Prior to 12/1/15

5 The Strength of the Brand When you think of a company called Life Storage, what comes to mind? (three adjectives open ended) Helpful Convenient Secure Clean Safe Reliable Good Rates Easy Big Spacious Affordable

6 Embedded Growth Drivers Joint Venture Agreements 3rd Party Management Program Certificate of Occupancy & Lease up Stores Expansions & Enhancements $30+ million planned in 2017 (50% already funded) 120+ Non Same Store Properties

7 Joint Venture Revenue Streams Accelerating Relationships with joint venture partners allows Life Storage to grow its national footprint, leverage existing resources, and generate additional fee income with limited capital commitment. Pro Rata Share of Joint Venture FFO Joint Venture Fee Income *in thousands $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 *in thousands $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $1,000 $ * $ * *expected

8 3 rd Party Management Gaining Traction Since rebranding to Life Storage, our 3 rd party management revenues are expected to grow by ~67%* on a year over year basis. $1,800 3 rd Party Management Fee Income $1,600 $1,400 $1,200 36% CAGR Since % *in thousands $1,000 $800 $600 $400 $200 $ * *Expected revenues 2017

9 C of O and Lease-up Properties

10 C of O and Lease-up Properties * Market Acquired Cost Sq. Ft. Occupancy at June 30, 2017 Estimated Annualized NOI at stabilization Estimated Cap Rate Chicago, IL May 2014 $5.50 MM 51, % $534, % Chattanooga, TN Sep MM 57, % 563, % Chicago, IL Nov MM 106, % 557, % Chicago, IL Mar MM 64, % 735, % Phoenix, AZ June MM 64, % 638, % Boston, MA June MM 63, % 800, % Phoenix, AZ Feb MM 67, % 713, % Miami, FL Feb MM 69, % 851, % Los Angeles, CA Mar MM 79, % 1,253, % Charleston, SC July MM 70, % 858, % Chicago, IL Nov MM 68, % 750, % Chicago, IL Feb MM 78, % 822, % Austin, TX Apr 2017 Lease** 58, % 1,030, % $ MM 899,811 $10,104, % *Does not include Legacy Life locations **Option to purchase for $14.1 Million in 2020

11 Expansions & Enhancements Convert existing units to premium space including climate/humidity control Construct new buildings with added amenities Significantly upgrade property appearance, visibility and relevancy

12 120 Non Same-Store Assets

13 Conservative Financial Ratios Investment grade ratings and conservative financial ratios provide for financial flexibility Debt to EBITDA Conservative Metrics Debt / EBITDA 5.6x Debt Service Coverage 5.2x Debt to Gross Assets 39.0% * Investment Grade Ratings Moody s: Baa2 S&P: BBB 6.0 Debt Service Coverage 40.0% Debt to Gross Assets % * 20.0% * * As of 6/30/17

14 Well Positioned Balance Sheet Life Storage has a solid, unsecured balance sheet with no debt maturities until December, $600 $600 $500 Investment Grade Credit Ratings In millions $400 $300 $331 $325 Moody s: Baa2 S&P: BBB $200 $175 $200 Weighted Average Maturity 6.4 Years $100 $100 $0 Bank Term Notes Line Institutions Public Bond Mortgage *As of 6/30/17

15 Growing Shareholder Value Life Storage is well positioned to continue cash flow and dividend growth, supported by multiple revenue drivers, a favorable payout ratio and a solid balance sheet. $6.00 Robust FFO* Per Share $4.50 Strong & Growing Dividend $4.00 $5.00 $3.50 $3.00 $4.00 $2.50 $3.00 $2.00 $1.50 $ ** $ * *Expected *** Payout Ratio 73.5% 65.5% 54.9% 52.7% 62.2% 64.8% 71.3% 74.9% * As adjusted **Midpoint of guidance ***Expected

16 Life Storage Investor Presentation September 2017