L ife Stor age I nvestor Pr esentation S eptember 2017 Safe - - PowerPoint PPT Presentation

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L ife Stor age I nvestor Pr esentation S eptember 2017 Safe - - PowerPoint PPT Presentation

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L ife Stor age I nvestor Pr esentation S eptember 2017 Safe H ar bo r 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

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L ife Stor age I nvestor Pr esentation

S eptember 2017

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SLIDE 2

Safe H ar bo r 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 1934. 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.

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697 Locations

566 Wholly Owned 94 Joint Venture 37 Managed

L ife Sto r age L

  • c atio ns as of 6/30/17

National platform with exposure to high growth markets. Recent acquisitions expanded footprint into Nevada and California.

11 12 22 24 25 27 46 61 45 24 14 10 8 8 7 6 18 16 7 6 6 5 6 8 9 13 19 8 9 12 9 21 43 7 5 5 26 17

49 million

net rentable sq. ft.

$5.2 billion

enterprise value

396,074

customers

697

self storage facilities

30+ years

industry experience

88 quarters

consecutive dividends

Major markets Four or fewer stores

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SLIDE 4
  • No. of Stores (wholly owned)

452 566 25% Square Footage 30.6 million 39.7 million 30% Rental Units 270,755 354,046 31%

Size & Scale:

  • Avg. Age of Stores (wholly owned)

21.3 years 20.1 years (6%) Climate Controlled Sq. Ft. 12.9 million 18.1 million 40% Rate per Sq. Ft. $12.83 $13.36 4%

  • Avg. Annual Revenue per Store

$831,202 $909,142 9% Population – 3 mile radius 78,742 88,789 13% Population – 5 mile radius 189,781 216,737 14%

Qualitative:

B igger – B etter – Str

  • nger

In 2016, Life Storage completed a transformational deal that enhanced the Company’s portfolio and balance sheet in multiple ways.

12/31/2015 6/30/17 % Inc.

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

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SLIDE 5

T he Str ength o f the B r and

Helpful

Convenient Secure

Clean

Safe Easy

Reliable

Good Rates Big Spacious

Affordable

When you think of a company called Life Storage, what comes to mind? (three adjectives – open ended)

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SLIDE 6

E mbedded Gr

  • wth Dr

iver s

  • 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
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SLIDE 7

Joint Ventur e Revenue Str eams Ac c eler ating

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.

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2010 2011 2012 2013 2014 2015 2016 2017* $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 2010 2011 2012 2013 2014 2015 2016 2017*

Joint Venture Fee Income Pro‐Rata Share of Joint Venture FFO

*expected *in thousands *in thousands

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SLIDE 8

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 2010 2011 2012 2013 2014 2015 2016 2017*

3r

d Par

ty Management Gaining T r ac tion

Since rebranding to Life Storage, our 3rd party management revenues are expected to grow by ~67%* on a year over year basis.

*Expected revenues 2017

67% 36% CAGR Since 2011

3rd Party Management Fee Income

*in thousands

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C o f O and L ease-up Pr

  • per

ties

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C o f O and L ease-up Pr

  • per

ties

*

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 51,928 96.1% $534,000 9.71% Chattanooga, TN Sep‐2014 6.55 MM 57,260 92.7% 563,000 8.60% Chicago, IL Nov‐2014 5.75 MM 106,225 89.1% 557,000 9.69% Chicago, IL Mar‐2015 8.69 MM 64,775 87.1% 735,000 8.46% Phoenix, AZ June‐2015 7.90 MM 64,068 94.5% 638,000 8.08% Boston, MA June‐2015 10.29 MM 63,475 86.1% 800,000 7.77% Phoenix, AZ Feb‐2016 9.28 MM 67,795 94.2% 713,000 7.68% Miami, FL Feb‐2016 11.27 MM 69,801 84.4% 851,000 7.55% Los Angeles, CA Mar‐2016 18.60 MM 79,375 80.4% 1,253,000 6.74% Charleston, SC July‐2016 8.62 MM 70,165 22.2% 858,000 9.95% Chicago, IL Nov‐2016 8.88 MM 68,235 42.5% 750,000 8.45% Chicago, IL Feb‐2017 10.09 MM 78,098 9.1% 822,800 8.15% Austin, TX Apr‐2017 Lease** 58,611 44.2% 1,030,000 7.30% $111.42 MM 899,811 $10,104,800 8.05%

*Does not include Legacy Life locations **Option to purchase for $14.1 Million in 2020

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E xpansio ns & E nhanc ements

  • Convert existing units to premium space

including climate/humidity control

  • Construct new buildings with

added amenities

  • Significantly upgrade property

appearance, visibility and relevancy

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120 No n Same-Sto r e Assets

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3.0 4.0 5.0 6.0 2010 2011 2012 2013 2014 2015 2016 2017*

* As of 6/30/17

Co nser vative F inanc ial Ratio s

Investment grade ratings and conservative financial ratios provide for financial flexibility.

Debt to EBITDA

2.0 3.0 4.0 5.0 6.0 2010 2011 2012 2013 2014 2015 2016 2017*

Debt Service Coverage

20.0% 30.0% 40.0% 2010 2011 2012 2013 2014 2015 2016 2017*

Debt to Gross Assets Debt / EBITDA 5.6x Debt Service Coverage 5.2x Debt to Gross Assets 39.0% Moody’s: Baa2 S&P: BBB Conservative Metrics Investment Grade Ratings

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Well Po sitio ned B alanc e Sheet

Life Storage has a solid, unsecured balance sheet with no debt maturities until December, 2019.

$325 $331 $100 $175 $200

$0 $100 $200 $300 $400 $500 $600

Bank Term Notes Line Institutions Public Bond Mortgage

In millions

Weighted Average Maturity

6.4 Years

Weighted Average Maturity

6.4 Years

*As of 6/30/17

Investment Grade Credit Ratings

Moody’s: Baa2 S&P: BBB

Investment Grade Credit Ratings

Moody’s: Baa2 S&P: BBB

$600

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SLIDE 15

$2.00 $3.00 $4.00 $5.00 $6.00 2010 2011 2012 2013 2014 2015 2016 2017**

* As adjusted **Midpoint of guidance ***Expected

Gr

  • wing Shar

eho lder 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.

2010 2011 2012 2013 2014 2015 2016 2017* $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50

Robust FFO* Per Share Strong & Growing Dividend

*Expected

2010 2011 2012 2013 2014 2015 2016 2017*** Payout Ratio 73.5% 65.5% 54.9% 52.7% 62.2% 64.8% 71.3% 74.9%

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L ife Stor age I nvestor Pr esentation

S eptember 2017