8-K
CubeSmart (CUBE)
8-K
2024-01-09
For: 2024-01-09
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April 04, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 9, 2024 ****
CUBESMART
CUBESMART, L.P.
(Exact Name of Registrant as Specified in Its Charter)
| Maryland (CubeSmart) | 001-32324 | 20-1024732 |
|---|---|---|
| Delaware (CubeSmart, L.P.) | 000-54462 | 34-1837021 |
| (State or Other Jurisdiction of Incorporation)<br><br> | (Commission File Number) | (IRS Employer Identification No.) |
| |
|---|
| 5 Old Lancaster Road |
| Malvern , |
| Pennsylvania |
| 19355 |
| (Address of Principal |
| Executive Offices) |
( 610 ) 535-5000
(Registrant’s telephone number, including area code)
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | **** | Trading Symbol(s) | **** | Name of Each Exchange on Which Registered |
|---|---|---|---|---|
| Common Shares, $0.01 par value per share, of CubeSmart | | CUBE | | New York Stock Exchange |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|---|
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|---|
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
|---|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2). ****
Emerging Growth Company (CubeSmart) ☐
Emerging Growth Company (CubeSmart, L.P.) ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
CubeSmart ☐
CubeSmart, L.P. ☐
Item 2.02 Results of Operations and Financial Condition.
We are furnishing with this report a slide presentation (attached as Exhibit 99.1) that may be used in presentations to investors from time to time.
Item 7.01 Regulation FD Disclosure.
The **** information disclosed in Item 2.02 above is incorporated into this Item 7.01.
The information included in this Current Report on Form 8-K (including the exhibit hereto) is being furnished under Item 2.02, “Results of Operations and Financial Condition,” Item 7.01, “Regulation FD Disclosure” and Item 9.01 “Financial Statements and Exhibits” of Form 8-K. As such, the information (including the exhibit) herein shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such a filing. This Current Report (including the exhibit hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.
Item 9.01 Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Exhibits.
| Exhibit No. | **** | Description |
|---|---|---|
| 99.1 | | Slide Presentation Dated January 2024 |
| 104 | | Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | CUBESMART | |
|---|---|---|
| | | |
| | By: | /s/ Jeffrey P. Foster |
| | Name: | Jeffrey P. Foster |
| | Title: | Chief Legal Officer and Secretary |
| Date: January 9, 2024 | | |
| | | |
| | CUBESMART, L.P. | |
| | | |
| | By CUBESMART, its general partner | |
| | | |
| | By: | /s/ Jeffrey P. Foster |
| | Name: | Jeffrey P. Foster |
| | Title: | Chief Legal Officer and Secretary |
| | | |
| Date: January 9, 2024 | | |
3
4
Exhibit 99.1
| January 2024<br>Investor<br>Presentation | |||
|---|---|---|---|
| Safe Harbor Statement<br>The forward-looking statements contained in this presentation are subject to various risks and known and<br>unknown uncertainties. Although the Company believes the expectations reflected in such forward-looking<br>statements are based on reasonable assumptions, there can be no assurance that the Company’s expectations<br>will be achieved. Factors which could cause the Company’s actual results, performance, or achievements to<br>differ significantly from the results, performance, or achievements expressed or implied by such statements are<br>set forth under the captions “Item 1A. Risk Factors” and “Forward-Looking Statements” in our annual report on<br>Form 10-K and in our quarterly reports on Form 10-Q and described from time to time in the Company’s filings<br>with the SEC. Forward-looking statements are not guarantees of performance. For forward-looking statements<br>herein, the Company claims the protection of the safe harbor for forward-looking statements contained in the<br>Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement<br>forward-looking statements that become untrue because of subsequent events.<br>This presentation contains certain non-GAAP financial measures, including Net Operating Income<br>(NOI), Funds From Operations (FFO), and Funds From Operations, as adjusted (FFO, as adjusted).<br>The definitions of these terms, the reasons for their use, and reconciliations to the most directly<br>comparable GAAP measures are included in our Earnings Release as well as the Non-GAAP<br>Financial Measures section under the caption “Management’s Discussion and Analysis of<br>Financial Condition and Results of Operations” (or similar captions) in our annual report on Form<br>10-K and quarterly reports on Form 10-Q, and described from time to time in the Company’s<br>filings with the SEC.<br>Use of Non-GAAP Financial Measures | |||
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| Introduction to CubeSmart<br>A high-quality portfolio in an attractive industry with proven returns<br>1,374<br>Properties1<br>$11.5 Billion<br>Market Cap3<br>70%<br>5-year total<br>shareholder return2<br>55%<br>5-year Dividend<br>Growth4<br>59%<br>5-year Growth in FFO<br>per Share, as<br>Adjusted2<br>Baa2/BBB<br>Rating<br>$3.0 Billion<br>5-year acquisition<br>volume2<br>1. As of September 30, 2023<br>2. Period ended December 31, 2022<br>3 3. Market value of common equity and book value of debt as of September 30, 2023 4. Annual dividends declared for period ended December 31, 2022 | |||
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| Why CubeSmart?<br>A company built to perform throughout all phases of the cycle<br>Attractive Industry<br>Well-diversified<br>demand characteristics<br>create strong industry<br>fundamentals<br>Cash Flow Stability<br>Industry-leading portfolio<br>demographics and a<br>conservative balance<br>sheet produce stable<br>cash flows throughout<br>the entire cycle<br>Focus on Quality<br>Continuing to grow the<br>platform through high-quality investments and<br>further operational<br>evolution to generate<br>long-term value<br>Experience<br>A well-seasoned<br>management team with<br>experience operating<br>throughout many<br>macroeconomic<br>environments<br>4 | |||
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| CubeSmart’s History<br>A history of executing on strategic objectives<br>2004<br>2006<br>2010<br>2011<br>2011<br>U-Store-It initial public<br>offering<br>Arrival of current<br>management team<br>Acquired United Stor-All to<br>establish the third-party<br>management platform<br>Rebranded the company<br>as CubeSmart<br>Won 1st ISS industry<br>award for Best Customer<br>Service<br>Issued debut investment<br>grade unsecured senior<br>notes<br>Opened 1,000th<br>CubeSmart location<br>Launched fully online<br>rental platform,<br>SmartRental<br>Acquired 59 property<br>Storage West portfolio<br>for $1.7 billion<br>Acquired 22 property Storage<br>Deluxe portfolio located<br>primarily in NYC for $560<br>million<br>2012<br>2012<br>2018<br>2020<br>2021<br>5 | |||
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| Attractive Industry<br>Strong sector fundamentals generate outsized long-term returns<br>Dynamic Demand<br>Wide range of needs drives<br>demand for the product<br>throughout all economic<br>cycles<br>High Margins<br>Low expense load & cap-ex<br>requirements drive more<br>cash flow to the bottom line<br>Short-Term Leases<br>Month-to-month leases<br>allow for rapid repricing in<br>response to changing<br>economic conditions<br>Increasing Utilization<br>Newly identified sources of<br>demand have created<br>increases in utilization and<br>product awareness<br>6 1. For the periods ending December 31, 2022<br>2. Source: S&P Global Capital IQ, storage REITs straight average total return for CUBE, PSA, EXR, and LSI<br>0%<br>50%<br>100%<br>150%<br>200%<br>250%<br>300%<br>350%<br>400%<br>5-Year 10-Year 15-Year<br>Self-Storage REIT Average Return vs RMZ<br>Storage REITs RMZ Index<br>1 1 1<br>2 | |||
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| Cash Flow Stability<br>National scale with a focused concentration in key markets<br>National Scale<br>CubeSmart operates in 177<br>markets across 41 states<br>and the District of Columbia1,<br>providing diversification<br>throughout the country<br>Key Market Depth<br>A portfolio focused on<br>coverage across all attractive<br>submarkets within our core<br>MSAs<br>Customer Diversification<br>With ~748k customers1 across<br>the portfolio, our customer<br>base is representative of each<br>store’s local community while<br>no single tenant or cohort<br>represents a material segment<br>of the rent roll<br>7 1. As of September 30, 2023 | |||
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| Diversified Portfolio in Quality Markets<br>National platform with a focus in core markets to drive long-term value<br>States with Managed Stores Only<br>States with Owned Stores<br>Focus on Top Markets<br>90% of owned store NOI<br>comes from top-40 MSAs1<br>Portfolio Exposure<br>Exposure to secondary and<br>tertiary markets through our<br>third-party management<br>program and joint ventures<br>further diversifies the<br>portfolio and leverages our<br>operating platform<br>8 1. For the nine months ended September 30, 2023 | |||
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| Industry-Leading Demographics Generate Long-Term Value<br>Quality market focus creates a strong demand backdrop and cash flow stability<br>1. Source: Evercore ISI Research Report dated August 20, 2023<br>2. Total owned portfolio NOI for the three months ended September 30, 2023, market ranking by population per US Census Bureau 9<br>0<br>50<br>100<br>150<br>200<br>CUBE EXR PSA NSA<br>Avg 3-Mile Population Density (000’s)1<br>65<br>75<br>85<br>95<br>CUBE PSA EXR NSA<br>Avg 3-Mile Median Household Income (000’s)1<br>37%<br>78% 89%<br>0%<br>50%<br>100%<br>Top 5 Markets Top 25 Markets Top 40 Markets<br>% of Same-Store NOI2<br>Strong Demographics<br>A strategic focus on submarkets with attractive demographics for<br>stable, long-term demand trends<br>Mature Markets<br>Larger, stable markets should experience less volatility than<br>secondary and tertiary markets while strong demographics support<br>demand trends throughout the economic cycle | |||
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| Market Leader in New York City<br>Lowest Supplied Market<br>Supply across the three key outer<br>boroughs is 2.7 SF per capita1, the<br>lowest nationally and less than half the<br>national average of 7.6 SF per capita2.<br>Supply pipeline is waning due to recent<br>legislative changes removing self-storage eligibility for the ICAP tax<br>incentive program<br>Best-In Class Portfolio<br>Our NYC stores make up the largest<br>portfolio of purpose-built, Class-A<br>properties in the outer boroughs that<br>create vibrant billboards for our brand<br>Unique Submarkets<br>Each borough features a robust local<br>economy with its own unique, stable<br>demand drivers<br>Portfolio Composition<br>3<br>NYC competitive advantage is a key component of our long-term strategy<br>1. Source: CubeSmart internal market research<br>2. Source: 2023 Self-Storage Almanac<br>10<br>All Other<br>Markets<br>3. Total portfolio NOI for the three months ended September 30, 2023 | |||
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| Quality Platform<br>Sophisticated, fully integrated platform focused on providing flexible and<br>efficient service delivery to maximize property cash flows over the long term<br>Quality Company<br>Continued focus on corporate responsibility and risk management to ensure<br>sustainable long-term growth<br>Quality Balance Sheet<br>Investment-grade balance sheet provides flexibility to access a full array of<br>capital sources to finance growth opportunities<br>Value Creation Strategy<br>Focus on quality drives long-term shareholder value<br>11<br>Quality Portfolio<br>Disciplined investment strategy to grow our nationwide portfolio of best-in-class assets in core markets with strong demographics and demand profiles | |||
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| Operating Platform<br>Foundation of proprietary solutions creates flexibility for the future<br>Technological Platform<br>Invest in foundational systems to provide scalability<br>Customer Capture<br>Attract the greatest share of demand across all channels through sophisticated<br>strategies<br>Dynamic Pricing<br>Maximize revenue through real-time pricing decisions that leverage historical<br>customer data<br>Service Oriented Model<br>Provide award-winning customer service to meet the many needs of our<br>customers<br>Ongoing Optimization<br>Continually test new strategies to capture further efficiencies<br>12<br>Platform | Portfolio | Balance Sheet | Company |
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| The Customer Journey<br>Reservation Rental Existing Customer<br>Optimizing the Platform<br>Paid Search<br>Bid on ~2+ million<br>keywords<br>Brand Marketing<br>Further build brand<br>awareness, making CUBE<br>an operator of choice<br>Social Media<br>Innovative tactics to reach<br>prospective customers<br>Website<br>Interact with 13.5 million<br>visitors annually1<br>Sales Center<br>Receive 800k calls<br>annually1<br>RateSmart<br>Leverage demand trends to<br>generate optimal pricing<br>SmartRental<br>~30% of customers rent<br>through SmartRental<br>In-Store Teammates<br>Reduce friction throughout<br>the rental process<br>HIVE Point of Sale<br>Flexible platform to build<br>further enhancements<br>CubeSmart Mobile App<br>Enhanced customer<br>interaction<br>Lazarus Data Warehouse<br>Utilize customer data to<br>further optimize operations<br>Rate Increases<br>Maximize revenue through<br>individually optimized<br>customer rate increases<br>Research<br>Efficient interactions across the customer journey<br>13<br>Platform | Portfolio | Balance Sheet | Company<br>1. Data for full year ended December 31, 2022 |
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| Redefining the Customer Experience<br>Meeting the changing needs of our customers<br>Leveraging Digital Platforms<br>Replicate the in-person experience across all customer touch points<br>Omni-Channel Experience<br>A fully-integrated experience where customers can seamlessly transition<br>between various channels & platforms<br>Customer Preference<br>Provide optionality to meet the customer in the way they wish to interact<br>Award Winning Customer Service<br>Continue to provide industry-leading service both in-store and across all of<br>our digital platforms<br>14<br>Platform | Portfolio | Balance Sheet | Company |
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| External Growth Strategy<br>Enhancing our portfolio through strategic external growth opportunities<br>High-Quality Acquisitions<br>Target acquisitions of well<br>positioned, quality assets in<br>markets with strong<br>demographics and demand<br>trends<br>Development & Lease-Up<br>Build and acquire purpose-built properties in top markets<br>to generate elevated growth<br>over the long term<br>Value-Add Joint Ventures<br>Generate outsized returns,<br>reduce risk and enhance<br>further diversification through<br>acquisitions with partners<br>Third-Party Management<br>Mutually beneficial value<br>creation by generating<br>additional scale and value<br>from our platform<br>Platform | Portfolio | Balance Sheet | Company<br>15 |
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| 0<br>200<br>400<br>600<br>800<br>1000<br>1200<br>1400<br>1600<br>2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023<br>Wholly-Owned Joint Venture Managed<br>Robust Portfolio Growth<br>Strategically increase the scale of the platform<br>Multi-Faceted Growth<br>Strategy<br>Continue to utilize wide<br>variety of avenues to grow<br>the portfolio<br>Brand Awareness<br>Since 2010, increased stores<br>on the platform by 199%<br>Customer Data Points<br>The consistent growth in<br>CubeSmart stores has<br>substantially increased our<br>customer base by ~557k<br>since 2010<br>1,374<br>460<br>Platform | Portfolio | Balance Sheet | Company<br>16<br>1<br>1. As of September 30, 2023 |
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| Acquisitions<br>Disciplined investment strategy to prudently build our portfolio<br>83%<br>of acquisitions in top 25<br>MSAs1<br>$1.5B<br>of acquisitions from third-party management1<br>Strong Demographics<br>Focus on submarkets with attractive demographics for strong long-term demand characteristics<br>Complement Existing Portfolio<br>Continue to identify opportunities to improve coverage across core markets<br>Platform Value-Add<br>Placing new properties on the CubeSmart platform generates multi-year yield expansion<br>Strategic Lease-up Opportunities<br>Acquire properties in lease-up to generate elevated returns<br>$3.0B<br>of wholly-owned<br>acquisitions since 2018<br>1. Since 2010<br>Platform | Portfolio | Balance Sheet | Company<br>17 |
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| Development<br>Strategic partnerships drive additional long-term value to our shareholders<br>Partner with Local Developers<br>Partner with developers that have local market expertise and can source high-quality sites<br>Focus on Top Markets<br>Targeted projects in high-quality markets that generate attractive long-term risk-adjusted returns<br>Operational Expertise<br>Leverage CubeSmart’s operating platform to optimally design and efficiently lease-up new stores<br>Portfolio Refresh<br>Enhance the quality of our existing portfolio through purpose-built, flagship properties that showcase our brand<br>$683M<br>of new projects<br>delivered1<br>100%<br>of new development in<br>top 10 markets<br>$75M<br>of new projects in the<br>pipeline2<br>Platform | Portfolio | Balance Sheet | Company<br>1. Development deliveries as of September 30, 2023 (does not include C/O acquisitions)<br>2. As of September 30, 2023<br>18 |
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| Joint Venture Advantages<br>Strategic investment with joint venture partners adds value to our portfolio<br>4<br>different ventures1<br>75<br>total properties1<br>Strong Returns<br>Fee revenue and promoted interests increase our return profile for transactions<br>Diversification<br>Further diversifying cash flow and exposure to markets outside of core acquisition strategy<br>Opportunistic Unstabilized Acquisitions<br>Spread investment capital across additional transactions through a minority interest while mitigating dilution through fees<br>Acquisition Opportunities<br>Opportunity to purchase assets that are a strategic fit at the end of the hold period<br>Platform | Portfolio | Balance Sheet | Company<br>19<br>$900M<br>of properties acquired<br>in joint ventures1<br>1. As of September 30, 2023. Excludes two unconsolidated joint ventures acquired as a part of the Storage West transaction |
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| Third-Party Management<br>Mutually beneficial relationships drive additional long-term value to our shareholders<br>763<br>properties1<br>210+<br>partnerships1<br>$34M<br>management fee<br>income2<br>Profitability<br>Create additional revenue streams for our shareholders through management and other fees<br>Scale<br>Continue expanding our national footprint and brand as we onboard additional stores, increasing operating efficiencies<br>Acquisition Pipeline<br>Opportunity for relationship-driven transactions while utilizing our knowledge of the assets to reduce underwriting risk<br>Relationships<br>Build a group of partners to share insights and industry trends<br>Platform | Portfolio | Balance Sheet | Company<br>1. As of September 30, 2023<br>2. For the year ended December 31, 2022<br>20 |
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| Financial Strength<br>Ensuring stability while funding growth<br>Continue to operate with credit metrics at the<br>conservative end of our investment grade rating,<br>ensuring access to a variety of attractively-priced capital<br>Net Debt to EBITDA1: 4.1x EBITDA Coverage1,2: 7.6x<br>Debt to Gross Assets1: 38.4%<br>1. Source: Company Filings, as of December 31 of each stated year, 2023 data for three months ended September 30, 2023 annualized<br>2. Calculated as annual EBITDA / Interest Expense<br>BBB<br>(Stable)<br>Baa2<br>(Stable) 0.0%<br>20.0%<br>40.0%<br>60.0%<br>80.0%<br>100.0%<br>2017 2018 2019 2020 2021 2022 2023<br>Unsecured Debt<br>Secured Debt<br>1.0x<br>2.0x<br>3.0x<br>4.0x<br>5.0x<br>6.0x<br>7.0x<br>2017 2018 2019 2020 2021 2022 2023<br>0.0x<br>2.0x<br>4.0x<br>6.0x<br>8.0x<br>10.0x<br>2017 2018 2019 2020 2021 2022 2023<br>Platform | Portfolio | Balance Sheet | Company<br>21 |
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| Liquidity and Access to Capital<br>Access to the full range of capital sources to fund commitments<br>Capital Needs & Liquidity<br>Ample liquidity to manage near-term capital needs<br>Capital Needs: $67.7M through 20241<br>• $36.1M of remaining development commitments<br>• $31.6M of debt maturities<br>Existing Sources of Capital<br>• $834.2M of remaining capacity on revolving credit facility1<br>• Retained free cash flow<br>Access to Capital<br>Proven ability to access a variety of sources of capital<br>Raised $6.4 billion since 2010<br>• Common Equity: Raised $2.5 billion of net proceeds<br>• Unsecured Senior Notes: Raised $3.4 billion through ten unsecured senior<br>note issuances<br>• Credit Facility: $850 million revolving line of credit<br>• Bank Debt: Raised $500 million in term loans (since repaid)<br>• Preferred Equity: Raised $77.5 million in preferred equity (since redeemed)<br>- 31,617<br>300,000 335,903<br>15,200<br>550,000<br>404,300 350,000 450,000<br>500,000<br> -<br> 200,000<br> 400,000<br> 600,000<br>2023 2024 2025 2026 2027 2028 2029 2030 2031 2032<br>Debt Maturity Schedule1<br>(000’s)<br>Secured Debt Unsecured Debt Unsecured revolving credit facility<br>Platform | Portfolio | Balance Sheet | Company<br>1. As of September 30, 2023 22 |
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| Experienced Management<br>Lengthy track record of experience through all phases of the cycle<br>Platform | Portfolio | Balance Sheet | Company<br>1. Represents averages for CubeSmart Senior Management<br>17 years<br>in self storage<br>13 years<br>with CubeSmart<br>18 years<br>at publicly-traded REITs<br>Senior Management1<br>23 |
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| $0.00<br>$0.50<br>$1.00<br>$1.50<br>$2.00<br>$2.50<br>$3.00<br>2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022<br>FFO per Share, as Adjusted<br>Funds From Operations Growth<br>Long-term growth in portfolio cash flows<br>+242%<br>Platform | Portfolio | Balance Sheet | Company<br>24 |
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| $-<br> $0.20<br> $0.40<br> $0.60<br> $0.80<br> $1.00<br> $1.20<br> $1.40<br> $1.60<br> $1.80<br> $2.00<br>2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022<br>Annual Dividend per Share<br>Sharing Cash Flow Growth<br>Consistent history of dividend increases to return capital to investors<br>+391%<br>Platform | Portfolio | Balance Sheet | Company<br>25 |
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| Long-Term Value Creation<br>Generating outperformance over the long term<br>Platform | Portfolio | Balance Sheet | Company<br>26 1. Market cap weighted total shareholder return for PSA, EXR, LSI as of December 31, 2022<br>0%<br>50%<br>100%<br>150%<br>200%<br>250%<br>300%<br>350%<br>400%<br>450%<br>500%<br>12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021<br>10-Year Total Shareholder Return vs. Peer Average<br>CUBE Storage Peer Avg<br>+293%<br>+211%<br>1 |
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| Environmental Highlights<br>Minimizing our environmental impact for long-term sustainability<br>Environmental Targets<br>Established targets to<br>reduce consumption and<br>greenhouse gas emissions.<br>Through 2022, we made<br>significant progress<br>against these targets with<br>a 22.6% like-for-like<br>reduction in Scope 1 & 2<br>GHG emissions.1<br>Solar Program<br>Added solar panels to 98<br>owned stores with projects<br>underway to add solar to<br>an additional 30 stores.2<br>In 2022, our stores<br>produced 9.8 million kWh<br>of renewable energy, a<br>25.6% increase from 2021.<br>HVAC Upgrades<br>In 2021, we substantially<br>completed our 3-year<br>capital project to<br>upgrade our HVAC<br>systems, which will<br>lower our CFC emissions<br>at those stores.<br>Platform | Portfolio | Balance Sheet | Company<br>27 1. Reduction against 2019 baseline. Like-for-like defined as the set of stores owned for the entirety of the period January 1, 2019 through December 31, 2022 2. As of December 31, 2022 |
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| Social Highlights<br>Investing in our team and communities<br>Engagement & Development<br>We value our teammates’<br>engagement. In 2022, our annual<br>Teammate Engagement Survey had<br>an 88% response rate. Our goal is to<br>help our teammates grow with our<br>company. Last year 446 teammates<br>were promoted into new roles. We<br>supported this goal through an<br>average of 16 hours of training per<br>teammate.<br>Diversity, Equity, and Inclusion<br>We believe our business is better because of<br>the diversity of our team. Our Philosophy<br>Regarding Respect in the Workplace defines<br>our approach to diversity, inclusion, and<br>treatment of differences and is<br>acknowledged by all teammates. Our Policy<br>on Equal Employment Opportunity prohibits<br>discrimination in all aspects of employment.<br>Community Engagement<br>We are proud to serve the<br>communities in which we operate.<br>Through our volunteering and<br>fundraising efforts, we’ve supported<br>numerous local charities and<br>community organizations.<br>Supply Chain & Human Rights<br>We established the CubeSmart Code<br>of Ethics, Conduct & Human Rights<br>for Vendors and Suppliers to hold our<br>partners to our own standards and<br>ensure that we’re doing our part to<br>protect human rights and promote<br>ethical conduct.<br>Platform | Portfolio | Balance Sheet | Company<br>28 |
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| Strong Corporate Governance<br>Supporting the long-term interest of all shareholders<br>Shareholder Rights<br> Annual election of<br>Trustees<br> Annual say-on-pay votes<br> Single voting class of<br>stock<br> Shareholder right to call<br>special meeting<br> Highest governance<br>rating among our peers<br>(per ISS)<br>Board Practices<br> Separate Board Chair & Chief Executive Officer<br> Regular executive sessions of independent Trustees<br> Annual Board & Committee self-evaluations<br> Share ownership guidelines for Executive Officers and<br>Trustees<br> Anti-hedging & anti-pledging policies<br> Code of Business Conduct & Ethics for employees<br>and Trustees<br> Risk oversight by Board and Committees<br> Wide range of relevant experience and diversity<br>among Trustees<br>44%<br>Diversity<br>89%<br>Independent<br>Platform | Portfolio | Balance Sheet | Company<br>29<br>Racial/Ethnic Diversity<br>Gender Diversity<br>Gender & Racial/Ethnic Diversity |
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| Operational Performance<br>Strong fundamentals provide strong outlook for future growth<br>88.0%<br>90.0%<br>92.0%<br>94.0%<br>96.0%<br>98.0%<br>Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec<br>Same-Store Occupancy1<br>2021 2022 2023<br>0<br>5,000<br>10,000<br>15,000<br>20,000<br>25,000<br>Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec<br>Same-Store Rentals1<br>2022 2023<br> -<br> 10,000<br> 20,000<br> 30,000<br>Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec<br>Same-Store Vacates1<br>2022 2023<br>30<br><br>1. Results for the 2023 Same-Store pool<br>2. Same-Store results for the nine months ended September 30, 2023<br>4.5%<br>Revenue growth<br>2.6%<br>Expense growth<br>5.3%<br>NOI growth<br>2023 Same-Store Results<br>2<br>90.3%<br>-100 bps YOY | |||
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