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| 8-K - FORM 8-K - SmartStop Self Storage, Inc. | d400618d8k.htm |
 August 21, 2012
H. MICHAEL SCHWARTZ
President, CEO
Strategic Storage Trust, Inc.
KEN MORRISON
President
Strategic Storage Property Management
Presented by
Exhibit 99.1 |
 2
Disclaimers and Risk Factors
Disclaimers
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,”
“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.
Risk Factors
•
See our Form 10-K and recent Form 10-Q for specific risks associated with an investment in
Strategic Storage Trust, Inc.. •
As of December 31, 2011, our accumulated deficit was approximately $43 million, and we anticipate that
our operations will not be profitable in 2012. •
No
public
market
currently
exists
for
shares
of
our
common
stock
and
we
may
not
list
our
shares
on
a
national
securities
exchange
before
three
to
five
years
after
completion of this
offering,
if
at
all.
It
may
be
difficult
sell
your
shares. If
sell
your
shares,
it
will
likely
be
at
a
substantial
discount.
•
We have paid distributions from sources other than our cash flows from operations, including from the
net proceeds from our initial public offering. We are not prohibited from undertaking such
activities by our charter, bylaws or investment policies, and we may use an unlimited amount from any source to pay our
distributions. Until
we generate
operating
cash
flows
sufficient
to
pay
distributions
to
you,
we
may
pay
distributions
from
the
net
proceeds
of
this
offering
or
from
borrowings in anticipation of
future
cash flows.
We also may be required to sell assets or issue new securities for cash in order to pay
distributions. Any such actions could reduce the amount of capital we ultimately invest in
assets and negatively impact the amount of income available for future distributions.
•
We have no employees and must depend on our advisor to select investments and conduct our operations,
and there is no guarantee that our advisor will devote adequate time or resources to us.
•
Our board of directors may change any of our investment objectives, including our focus on self
storage facilities. •
We will pay substantial fees and expenses to our advisor, its affiliates and participating
broker-dealers, which will reduce cash available for investment and distribution.
•
There are substantial conflicts of interest among us and our sponsor, advisor, property manager and
dealer manager. •
We
may
fail
to
remain
qualified
as
a
REIT,
which
could
adversely
affect
our
operations
and
our
ability
to
make
distributions.
•
We
may
incur
substantial
debt,
which
could
hinder
our
ability
to
pay
distributions
to
our
stockholders
or
could
decrease
the
value
of
your
investment.
•
Future distribution declarations are at the sole discretion of our board of directors and are not
guaranteed. Since our inception, our cumulative distributions have exceeded cumulative GAAP
earnings. We cannot assure you that we will achieve any of our investment objectives.
•
We
encourage
you
to
review
our
SEC
filings
at
www.sec.gov.
to
you
“will,” |
 Strategic Storage Trust,
Inc. About Us
•
First and only publicly registered non-traded REIT focused
on self storage
•
Sponsor was ranked
8 in Mini-Storage Messenger’s Top
Operators List in 2011
•
As of 8/20/12, SSTI wholly owns 100 properties in 17 states
and Ontario, Canada with approximately 64,780 units and
approximately 8.1 million rentable square feet
th |
 4
Agenda
•
Financial Snapshot
•
Running a Self Storage Company |
 Financial Update
Total Assets by Quarter
600
575
550
525
500
475
450
425
400
375
350
325
300
275
250
225
200
175
150
125
100
75
50
25
0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
$0.2
$2.8
$13.2
$19.8
$34.1
$50.6
$185.2
$203.7
$220.3
$242.6
$289.0
$307.4
$385.9
$423.3
$467.0
$550.4
$543.9
$585.6
2008
2008
2008
2008
2009
2009
2009
2009
2010
2010
2010
2010
2011
2011
2011
2011
2012
2012 |
 6
Total Revenues by Quarter
Financial Update
16
15
14
13
12
10
11
9
8
7
6
5
4
3
2
1
0
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
$0.02
$0.3
$0.6
$0.8
$1.8
$4.7
$5.2
$6.3
$6.9
$7.8
$9.8
$11.4
$13.9
$14.3
$15.4
$15.7 |
 Financial Update
G&A Per Property by Quarter
G&A Per Property
Q2
2009
$58,095
Q2
2010
$21,177
(63.5%
decrease)
Q2
2011
$7,600
(64.1% decrease)
Q2
2012
$6,737
(11.3% decrease) |
 8
Portfolio Update
Wholly Owned Properties by Quarter
100
90
80
70
60
50
40
20
30
34
10
6
0
3
8
29
26
24
35
45
78
72
61
91
91
92
Q1
Q4
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2012
2012
2011
2011
2011
2011
2010
2010
2010
2010
2009
2009
2009
2009
2008
New Acquisitions/Quarter
Existing
1
3
2
16
2
3
5
1
10
16
11
6
13
1
91
91
78
72
61
45
35
34
29
26
24
8
6
3
2 |
 Rentable Square Feet by
State (as of 6/30/12)
Portfolio Update
7.5%
4.2%
5.0%
3.2%
11.0%
12.4%
1.9%
0.9%
19.6%
0.9%
1.3%
5.3%
4.5%
NJ
5.2%
3.6%
FL
10.0%
2.4%
1.1%
92 properties
17 states, 1 province
61,010 units
7.5 million SF
National Training Office
Regional Office
District Office
Home Office/Regional Office |
 10
Portfolio Update
1990 NW Federal Hwy. 1
Stuart, Florida
Units:
370
Year:
2004
Net Rentable:
51,500 SF
Acres:
2.51
6195 South Kanner Hwy.
Stuart, Florida
Units:
380
Year:
2008
Net Rentable:
54,700 SF
Acres:
7.74
782 King George Blvd.
Savannah, Georgia
Units:
450
Year:
2001
Net Rentable:
67,100 SF
Acres:
4.71
Stockade Portfolio |
 Portfolio Update
1060 King George Blvd.
Savannah, Georgia
Units:
590
Year:
2002
Net Rentable:
68,700 SF
Acres:
4.53
298 Red Cedar St.
Bluffton, South Carolina
Units:
660
Year:
2008
Net Rentable:
78,900 SF
Acres:
4.37
Stockade Portfolio
512 Percival Rd.
Columbia, South Carolina
Units:
490
Year:
2003
Net Rentable:
65,400 SF
Acres:
3.76 |
 12
Portfolio Update
120 Northpoint Dr.
Lexington, South Carolina
Units:
Year:
Net Rentable:
Acres:
890 St Peters Church Rd.
Lexington, South Carolina
Units:
250
Year:
2010
Net Rentable:
35,400 SF
Acres:
4.37
Stockade Portfolio
86,500 SF
5.00
580
1998/2003 |
 13
Running a Self Storage Operation
•
Branding Initiatives
•
People
•
Technology
•
Increasing Net Operating Income
•
Results |
 14
Branding Initiatives
Technology To Compete In Today’s Marketplace
Branding is Important
Competitive Edge in a Unique Industry
Market Leader Has Less Than 5% Market Share
85% of Operators Own 1-2 Stores
Small Operators Cannot Afford the Marketing and
•
•
• |
 15
SmartStop
Jingle
SmartStop
Intro
SmartStop®Commercial
Branding Initiatives
®
®
® |
 16
Branding Initiatives
Advertising
•
Radio
•
Movie Theatres
•
Internet Yellow Pages and Mobile Ads
•
Print Ads and Directories
•
Direct Mail |
 17
Social Media and More
•
Twitter
–
Increasing followers
•
Facebook
–
1,726 “Likes”
= exposure to over 1 million friends
of friends
•
YouTube
–
Maintains all our jingles for viewing
•
Blog
–
84 human interest stories published since May
•
Google+
-
New platform brings pictorial brand awareness
•
Mobile
Friendly
–
easy
access
to
web
•
SmartStop App
–
500+
downloads
®
Branding Initiatives |
 Branding
Initiatives Before
After
SmartStop
–
Hollywood
-
Memphis,Tennessee |
 Branding
Initiatives Before
After
SmartStop
–
State
Rd.
84
–
Weston, Florida |
 Running a Self Storage
Operation •
Branding Initiatives
•
People
•
Technology
•
Increasing Net Operating Income
•
Results |
 People
•
Regional Directors
•
District Managers
•
Property Managers
•
Director of Training
•
Revenue Manager
*270+ Employees and Growing
"Hire good, smart people and train them well"
* Members of our Property Management team are employees of Strategic Storage Property Management, LLC.
and/or Strategic Storage Holdings, LLC. |
 22
People
•
This is a retail establishment
-
Closed just 3 days out of the year
•
Standardized sales training
-
Lead conversion
-
Making the sale
-
Upselling |
 23
Running a Self Storage Operation
•
Branding Initiatives
•
People
•
Technology
•
Increasing Net Operating Income
•
Results |
 24
Technology
•
Real time Analytics Dashboard
•
Logic-based operating system for dynamic unit pricing
-
Over 10,000 price changes this year
•
Lead management
-
Improved lead conversion |
 25
Running a Self Storage Operation
•
Branding Initiatives
•
People
•
Technology
•
Increasing Net Operating Income
•
Results |
 Increasing NOI
Increasing Revenues
•
Increase Occupancy
•
Increasing Rates Based on Dynamic Unit Pricing
-
Existing Tenants
-
Face Rates
•
Tenant Insurance
•
Lead Conversion
•
Convenience Fees
•
Auxiliary Sales
-
Locks and Boxes
-
Truck Rents |
 27
Increasing NOI
Reducing Expenses
•
Fixed vs. Variable Costs
•
Economies of Scale
•
National Pricing Power |
 28
Running a Self Storage Operation
•
Branding Initiatives
•
People
•
Technology
•
Increasing Net Operating Income
•
Results |
 29
Results
3,000
2,500
2,000
1,500
1,000
500
-
(500)
Same
Store
Occupancy
-
Jan
-
Jun
2012
84.0%
82.0%
80.0%
78.0%
76.0%
74.0%
72.0%
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Move Ins
Move Outs
Net
*2011 Occ Sq Ft (%)
2012 Occ Sq Ft (%)
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
1,135
1,270
(135)
76.1%
76.5%
1,379
1,427
(48)
76.4%
77.0%
1,818
1,626
192
76.6%
77.5%
2,099
1,572
527
77.2%
78.8%
2,492
1,707
785
77.4%
80.7%
2,634
1,821
813
77.7%
82.5%
* Note: Highest occupancy achieved in 2011 was 79.1% on 7/31/11 |
 30
Results
Same Store Revenue -
Year Over Year
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
Feb
Mar
Apr
May
June
2012 Revenue
2011 Revenue
$3,096,000
$3,031,000
$3,521,000
$3,382,000
$3,508,000
$3,372,000
$3,766,000
$3,614,000
$3,813,000
$3,659,000
$3,901,000
$3,708,000
2.14%
4.11%
4.03%
4.21%
4.21%
5.20%
Revenue Variance (%)
Jan |
 Results
600
550
500
450
400
350
300
250
200
150
100
50
0
Dec-11*
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Move Ins
Move Outs
Net
Occ Sq Ft (%)
1
0
1
46.30%
269
225
44
47.30%
273
170
103
48.80%
359
199
160
51.00%
425
225
200
53.10%
567
224
343
57.60%
587
322
265
61.00%
70.00%
65.00%
60.00%
55.00%
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
-5.00%
* Dec-11 data is upon acquisition (12/27/11)
Former Homeland Stores -
Jan -
Jun 2012 |
 32
Questions? |
 Recap
•
Branding Initiatives
–
This is a Branded Retail Operation
•
People
•
Technology
•
Increasing NOI
•
Results
Yes, Technology can make you
money
Because we
can
It's working
Hire good people and train them
well |
 August 21,
2012 Presented by
H. MICHAEL SCHWARTZ
President, CEO
Strategic Storage Trust, Inc.
KEN MORRISON
President
Strategic Storage Property Management |