Fourth Quarter 2018 Investor Presentation 2 SAFE HARBOR STATEMENT - PowerPoint PPT Presentation

Life Storage Fourth Quarter 2018 Investor Presentation

2 SAFE HARBOR STATEMENT FORWARD LOOKING STATEMENTS 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, 2018 as filed with the Securities and Exchange Commission. The Company is under no obligation to update any such forward looking statements.

3 AT A GLANCE 1 LIFE STORAGE 90.4% 213 properties Over 750 More than 30+ years in same store managed for third stores in 400,000 self-storage average quarterly party entities 28 states and customers business occupancy Ontario, Canada Investment Grade 89% quarterly Rated 5.3x $6.1 Billion 304% 10 year dividend increase Moody’s: Baa2 Debt to EBITDA enterprise value total return over past 5 years S&P: BBB Notes: (1) Data as of December 31, 2018

4 INVESTMENT HIGHLIGHTS LIFE STORAGE Diversified Portfolio with Increasing Focus on Primary Markets Growth Strategy Driven by Disciplined Capital Allocation Innovative Technology Solutions to Drive Customer Acquisition and Revenue Management Differentiated Corporate Customer Value Proposition Strong Financial Performance, Conservative Balance Sheet and Attractive Valuation

5 DIVERSIFIED PORTFOLIO LIFE STORAGE HAS A COAST TO COAST PRESENCE Life Storage owns and manages properties in 28 states, including in 16 of the top 20 fastest growing markets in the United States 1 , as well as Ontario, Canada. Its 2016 expansion into the West Coast has enhanced both its demographics and geographic diversity. 3 774 Locations 2 Major Market Four or few locations 561 Wholly Owned 113 Joint Venture 100 Managed 49.6M 774 55.3 MM 400K + Self Storage Facilities Net Rentable Sq. Ft. Customers Notes: (1) Forbes 2018 Fastest Growing U.S. Cities (2) As of December 31, 2018 (3) Subsequent to quarter end, the Company began management of four self storage facilities located in Ontario, CA

6 DIVERSIFIED PORTFOLIO BIGGER-BETTER-STRONGER Life Storage has grown substantially in recent years, with a particular focus on accessing and building scale in both primary markets as well as secondary markets where the company can leverage scale to drive margin expansion and revenue growth. Dec 2015 Dec 2018 % Inc ($ in '000s, except FFO/Share, Rent/Sq Ft, Median Income) Increased scale by >40%  Stores Owned 452 561 24.1% Added three primary markets  Joint Venture 69 113 (Los Angeles, Sacramento and 63.8% Managed (non-Joint Venture) Las Vegas) 21 100 376.2% Total 542 774 42.8% Enhanced store quality  Top-35 Markets Sq Ft (owned) 55% 63% 14.9% Improved demographic profile Climate Controlled Sq Ft (owned)  43% 47% 9.4% Increased store operating  Demographics performance 3-Mile Pop Density 78,742 91,286 15.9% Strengthened corporate  3-Mile Med HH Income $ 69,517 $ 71,860 3.4% financial performance Financial (1) (2) Avg SS Rent per Square Foot $ 12.64 $ 14.09 11.5% (1) (2) Avg SS Rev per Store (Annualized) $ 808 $ 950 17.5% (3) (4) Store Revenue $ 360,766 $ 540,279 49.8% (3) (4) Management Fees $ 5,836 $ 10,571 81.1% (3) (4) Adj. FFO per Share $ 4.94 $ 5.51 11.5% BBB-/Baa3 (5) Credit Rating BBB/Baa2 +1 grade Notes: (1) Data for 4Q15 (4) Data for last twelve months as of Dec 31, 2018 (2) Data for 4Q18 (5) Prior to Dec 1, 2015 (3) Data for last twelve months as of Dec 31, 2015

7 GROWTH STRATEGY EMBEDDED GROWTH DRIVERS Improved Portfolio NOI and NAV Acquisitions Expansions Third Party Management Joint Ventures Lease-Up Stores CofO and other lease-up Significant operating Adding 10-20K sq ft of Brand Strength; greater Increases market share      margin gains from properties will provide premium space to presence = greater and scales cost sharing platform and scale out-sized NOI growth as opportunities successful stores interest efficiencies they move to stabilization Adds property and Increases market share   Reduces effective age  and scales cost sharing management fee Competitively  opportunities income repositions properties Enhances acquisition Adds property and   management fee pipeline income Preferred alternative to  recapitalize non-strategic Enhances acquisition  pipeline assets

8 GROWTH STRATEGY ACQUISITION PROPERTIES The merits of Life Storage’s acquisition strategy and implementation of its business model (e.g., revenue management; marketing; customer care center; store platforms) on acquired properties are evident in the performance of the 101 stores acquired in 2016 and added to the Same Store pool in 2018. Both revenue and NOI growth of the acquired properties has significantly outpaced the legacy stores on a year-over-year basis in each of the past five quarters. Strength exists in both new markets (e.g., Los Angeles; Sacramento; Las Vegas) and markets where Life Storage expanded its presence to leverage existing scale (e.g., Boston-Cambridge; Orlando). Y/Y Revenue Growth Y/Y NOI Growth 8.0% 10.0% 8.0% 6.0% 6.0% 4.0% 4.0% 2.0% 2.0% 0.0% 0.0% 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 Acquired Stores Other Stores Acquired Stores Other Stores Progressive In-Place Increases Data Rates Specials Platforms

9 GROWTH STRATEGY ASSET MANAGEMENT Asset rotation strategy is generating newer properties with higher revenue and greater growth prospects. Recap Average Age Asking Rate per Sq Ft Property: 30 $20.00 Raleigh, NC 25 $16.00 20 $12.00 15 $8.00 10 $4.00 5 Acquired: Atlanta, GA 0 $0.00 1 1 Recapitalized Properties Acquired Properties Recapitalized Properties Acquired Properties 2 Average Revenue per Store Average Occupancy $1,400,000 100% 90% $1,200,000 80% $1,000,000 70% Acquired: 60% $800,000 Queens, NY 50% $600,000 40% 30% $400,000 20% $200,000 10% $0 0% 1 1 Recapitalized Properties Acquired Properties Recapitalized Properties Acquired Properties Notes: (1) All properties acquired since January 1, 2018 to date. (2) Revenue per Store for Recapitalized Properties is 2018 actual; Acquired Properties is last-twelve-month for stabilized properties or stabilized projections for lease-up stores.

10 GROWTH STRATEGY EXPANSION PROPERTIES Investment Premium Sq Ft. Added 1 Incremental NOI at Stabilization 2 ( In $millions ) (in thousands) (in $millions) $60.0 $6.0 400 $50.0 $5.0 300 $40.0 $4.0 $30.0 $3.0 200 $20.0 $2.0 100 $10.0 $1.0 $0.0 $0.0 0 2 2 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 Notes: (1) NRSF = total NRSF after expansion less NRSF removed (2) Projected Weighing demand indicators and revenue potential, the Company redevelops properties to add premium space types. Fifteen such projects were completed in 2018, and the Company anticipates approximately10-20 projects per year in 2019 and 2020. With an 8%+ yield, these low risk investments in existing properties also upgrade the appearance and customer experience at these stores.

11 GROWTH STRATEGY THIRD-PARTY MANAGEMENT Since rebranding to Life Storage, the Company’s Management Fee Income +22% CAGR 250 $12.0 third-party management revenues have grown substantially. At year-end, roughly 50% of its $10.0 200 managed portfolio were properties in which the Fee Income ($ in MM) Company held no ownership interest – a100% $8.0 150 average increase for two consecutive years. # of Stores $6.0 100 $4.0 50 $2.0 0 $0.0 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 3rd Party (no ownership) Joint Ventures $ Fees

12 GROWTH STRATEGY JOINT VENTURES Relationships with joint venture partners allow Life Storage to grow its national footprint, leverage existing resources, and generate additional fee income with limited capital commitment. Joint venture FFO per Share contribution has grown from roughly $0.04 per share in 2010 to $0.20 per share in 2018. Pro-Rata Share of Joint Venture FFO Joint Venture Management Fee Income (in $millions) (in $millions) $11.0 $9.0 $10.0 $8.0 $9.0 $7.0 $8.0 $6.0 $7.0 $5.0 $6.0 $5.0 $4.0 $4.0 $3.0 $3.0 $2.0 $2.0 $1.0 $1.0 $0.0 $0.0 1 1 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Notes: (1) Estimated