Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SmartStop Self Storage, Inc. | d303639d8k.htm |
 Update From the
CEO February 23, 2012
Hosted By
H. MICHAEL SCHWARTZ
Chairman and CEO
Exhibit 99.1 |
 2
Disclaimer
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
prospectus and supplements. |
 3
Strategic Storage Trust, Inc.
First and only publicly registered non-traded REIT focused on
self storage
Sponsor was ranked 8
th
in Mini-Storage Messenger’s Top Operators
List in 2011
As of 12/31/11 SSTI wholly owns 91 properties in 17 states and
Ontario, Canada with 60,000 units and approximately 7.5 million
rentable square feet
Closed approximately $245 Million in acquisitions in 2011
About Us |
 4
Agenda
Financial Update
Portfolio Update
Where MFFO Comes From
Self Storage -
It’s Just Different |
 5
Total Assets by Quarter
Financial Update |
 6
Total Revenues by Quarter
Financial Update |
 7
G&A Per Property by Quarter
G&A Per Property
Q3
2009
$16,313
Q3
2010
$14,527
(11% decrease)
Q3
2011
$6,466
(55% decrease)
(1)
For the three month periods ended June 30, 2011 and September 30, 2011, the Advisor
permanently waived certain reimbursable indirect costs. Financial Update
|
 8
Agenda
Financial Update
Portfolio Update
Where MFFO Comes From
Self Storage -
It’s Just Different |
 9
Wholly Owned Properties by Quarter
Portfolio Update
Through December 31, 2011 |
 10
Square Footage by State (as of 12/31/11)
Portfolio Update
91 properties
17 states, 1 province
60,140 units
7.5 million SF
7.6%
4.3%
5.0%
3.3%
11.1%
12.5%
1.9%
0.9%
19.8%
0.9%
1.3%
5.4%
3.5%
5.3%
3.6%
10.1%
2.4%
1.1% |
 11
Homeland Portfolio
•
Homeland Portfolio Summary
Purchase Price: $80 Million
Net Rentable Sq. Ft.: 1 Million
Total Properties: 12
Total Units: 8,000
Off Market Transaction
Year Built: 2006 -
2009
Purchase Per Sq. Ft: $80
46% Occupancy –
Lease Up
Acquisition Dec. 46.2% SF
Jan. 47.3% SF
Feb. 14
th
48.0% SF
Seasonality
in
Storage
Industry
–
February
is
one
of
the
worst
months |
 12
Homeland Portfolio
Homeland Portfolio Summary
New –
built between 2006 –
2009
Retail
locations
–
Good
visibility
and
access
Climate
Controlled
Units
–
79%
of
area
Management
platform
integration
–
Website
payment
system, customer care call center, inventory tracking
Now 19 Properties in Atlanta
Management Efficiencies (economies of scale)
Product Leader in Market |
 13
Homeland Portfolio
Atlanta District Map |
 14
Homeland Portfolio
Kennesaw, GA
Sharpsburg, GA
Berkeley, GA
Peachtree, GA
Breckenridge, GA
West Oak Pkwy, GA |
 15
Homeland Portfolio
Austell, GA
Sandy Springs, GA
Smyrna, GA
Lawrenceville, GA
Monument, FL
Timuquana, FL |
 16
Agenda
Financial Update
Portfolio Update
Where MFFO Comes From
Self Storage -
It’s Just Different |
 17
Where MFFO Comes From
Understanding Modified Funds From Operations
Net Income
+
depreciation
+
amortization
Funds From Operations (FFO)
non cash items
Not all MFFO is created equal
+
acquisition fees and expenses
+
impairments
+
marketable securities losses
+
hedging strategy losses
=
Modified FFO |
 18
Where MFFO Comes From
•
Relative Risk
•
Smoothing of Results
•
Mezzanine Loans
•
Point in Time vs. Trending
•
Cash Drag
•
Other Intangibles |
 19
Agenda
Financial Update
Portfolio Update
Where MFFO Comes From
Self Storage -
It’s Just Different |
 20
Self Storage –
It’s Just Different
Seasonality of Occupancy
•
Self storage occupancy rates show seasonal variability
•
Household moves account for approximately half of self
storage rentals
•
The spring and summer months are the typical moving
seasons with 11% -
13% of moves occurring each month
compared to 8% or less for other months
•
Spring and Summer occupancy rates are higher than
late Fall and Winter
•
Seasonal variability in occupancy is typically between
2% and 5% driven largely by seasonal moving
•
Difficult to Compare Quarter by Quarter Results
The seasonal nature of moving activity drives
variability in self storage occupancy.
*Sources:
Self Storage Association 2010 Almanac; American Moving and Storage Association Winter
2009 “Industry Trends” Percentage of Total Yearly Moves by Month
|
 21
Self Storage –
It’s Just Different
Adding Value Tenant vs. Owner |
 22
Increasing Revenues
Tenant Insurance
Rental Increases
Truck Rentals
Ancillary Revenues
Web Based Sales
Self Storage –
It’s Just Different
Adding Value |
 23
•
Reaching Critical Mass
•
Decreasing Expenses
•
Property Insurance
•
Utility Management and Energy Conservation
•
Fixed vs. Variable Expenses
•
National Contracts
•
Property Management
•
Cross Marketing Efficiencies
Self Storage –
It’s Just Different
Economies of Scale |
 24
Recap
Financial Update
Continuing to Grow
Portfolio Update
$80 Million Homeland Portfolio
Where MFFO Comes From
MFFO is Not Just a Yes or No Answer
Self Storage –
It’s Just Different
Added Value |
 Financial
Professionals 877-327-3485
Investment Information
strategicstoragetrust.com
Self Storage Rentals
smartstopselfstorage.com
Select Capital Corporation
(Member FINRA and SIPC)
Dealer Manager for SSTI
866.699.5338 |