RE I T we e k 2018 - NE W YORK , NY 2 L IFE ST O RAG E A - PowerPoint PPT Presentation

1 L IFE ST O RAG E INVEST O R PRESENT AT IO N RE I T we e k 2018 - NE W YORK , NY

2 L IFE ST O RAG E A VAL UE PROPOSI T I ON Por tfolio Multiple Mode r n Pr ogr e ssive F inanc ial Attr ac tive T r ansfor me d Gr owth Dr ive r s Br anding Platfor ms Str e ngth Valuation Sinc e c ha ng ing to the L ife Sto ra g e b ra nd, the Co mpa ny's tra nsfo rma tio n ha s e nha nc e d its ma rke t po sitio ning , sc a le d the o pe ra ting pla tfo rm a nd stre ng the ne d the b a la nc e she e t. L ife Sto ra g e is we ll po sitio ne d fo r g ro wth a nd is a ttra c tive ly-va lue d.

3 C O MPANY PO RT FO L IO L I F E ST ORAGE HAS A COAST T O COAST PRE SE NCE L ife Sto ra g e o wns a nd ma na g e s pro pe rtie s in 28 sta te s a c ro ss the U.S. a nd it ha s a pre se nc e in 18 o f the to p 25 fa ste st g ro wing ma rke ts in the c o untry*. I ts 2016 e xpa nsio n into the We st Co a st ha s b o lste re d b o th its de mo g ra phic s a nd g e o g ra phic dive rsity. Major Market Four or few locations 711 L oc ations 566 Who lly Owne d 98 Jo int Ve nture 47 Ma na g e d 706 37.0M 49.6M 711 50.1 MM 390K + Se lf Sto ra g e F a c ilitie s Ne t Re nta b le Sq . F t. Custo me rs *F o rb e s 2018 F a ste st Gro wing U.S. Citie s

4 PO RT FO L IO UPG RADES ST RONG CORE ME T RI CS Ac q uisitio ns fro m 2016 (inc luding the L ife Sto ra g e po rtfo lio ), e xpa nsio ns a nd e nha nc e me nts o f e xisting pro pe rtie s, the inte g ra tio n o f “c e rtific a te o f o c c upa nc y” fa c ilitie s, a nd the Co mpa ny’ s e xpa nde d pre se nc e in ma jo r me tro s ha s sig nific a ntly e le va te d its c o re me tric s. Quic k F a c ts 2016 vs. 2018: • Upg ra de d a g e , size & q ua lity o f po rtfo lio • Stre ng the ne d de mo g ra phic pro file • I mpro ve d sc a le a nd pe ne tra tio n in ma ny c o re ma rke ts • Sig nific a nt pre se nc e in the to p te n la rg e st U.S. Me tro Are a s*, inc luding : • Ne w Yo rk – Ne wa rk – Ne w Je rse y, NY-NJ • L o s Ang e le s – L o ng Be a c h – Ana he im, CA • Chic a g o – Na pe rville – E lg in, I L • Da lla s – F o rt Wo rth – Arling to n, T X • Ho usto n – T he Wo o dla nds – Sug a r L a nd, T X *US Ce nsus Bure a u

5 L IFE ST O RAG E GROWT H DRI VE RS Adde d 105 Stabilize d Pr ope r tie s to the 2018 Same Stor e Pool E xpansion Pr ope r tie s L e ase - up Pr ope r tie s Manage me nt F e e Inc ome Joint Ve ntur e Re ve nue s

6 G RO WT H DRIVERS E MBE DDE D GROWT H DRI VE RS I mpro ve d Po rtfo lio NOIa nd NAV Ac quisitions Re -De ve lopme nt T hir d Pa r ty Ma na g e me nt Joint Ve ntur e s L e a se -Up Stor e s • 120 pro pe rtie s fro m the • Ong o ing suc c e ss with • T he L ife Sto ra g e Bra nd ha s • 20+ ye a r tra c k re c o rd o f • T hre e sta b ilize d L ife Sto ra g e a c q uisitio n a nd a c c e le ra te d the Co mpa ny’ s “c e rtific a te o f e xpa nding a nd e nha nc ing spo nso ring a nd o pe ra ting o the rs ha ve g a ine d a n sto re s in e xisting po rtfo lio mo me ntum in its 3rd Pa rty jo intly o wne d pa rtne rships o c c upa nc y” (C o f O) o n-b o a rding b e ne fit fro m the Ma na g e me nt b usine ss pro pe rtie s we re a dde d to Co mpa ny’ s pla tfo rms the Co mpa ny’ s sa me • Adds 10-20k sq . ft. o f • Pro vide s a dditio na l pre se nc e sto re po o l in 2018. • Re ve nue s fro m ma na g e me nt fe e s pre mium spa c e to a nd sc a le in e xisting ma rke ts; • T hre e ne w, de nse ma rke ts suc c e ssful sto re s g re w 75% in 2017 vs. 2016, a nd • T he re ma ining 22 "C o f O" (L o s Ang e le s, L a s Ve g a s, c o ntinue d stro ng g ro wth is • Adds pro pe rty a nd a nd le a se -up pro pe rtie s Sa c ra me nto ) a re e xpe c te d to e xpe c te d in 2018 • Upg ra de s o ve ra ll ma na g e me nt fe e inc o me will pro vide o ut-size d NOI o utpe rfo rm c o re po rtfo lio “pre se nc e ” o f the g ro wth a s the y mo ve to pro pe rtie s • Pro vide s a dditio na l pre se nc e a nd • E nha nc e s a c q uisitio n sta b iliza tio n • Sig nific a nt o pe ra ting ma rg in sc a le in e xisting ma rke ts; pipe line g a ins fro m pla tfo rms a nd sig nific a nt c o st sha ring • Re duc e s e ffe c tive a g e sc a le e ffic ie nc ie s • E nha nc e s a c q uisitio n pipe line

7 G RO WT H DRIVERS E XPANSI ON PROPE RT I E S I nve stme nt Pre mium Sq F t. Adde d* I nc re me nta l NOIa t Sta b iliza tio n ( I n $millio ns ) (in tho usands) (in $millio ns) $50.0 $5.5 350 $45.0 $5.0 $40.0 $4.5 300 $35.0 $4.0 $30.0 $3.5 250 $25.0 $3.0 $20.0 $2.5 200 2016 2017 2018** 2016** 2017** 2018** 2016 2017 2018** * NRSF = to ta l NRSF a fte r e xpa nsio n le ss NRSF re mo ve d ** Pro je c te d We ig hing de ma nd indic a to rs & re ve nue po te ntia l, the Co mpa ny re de ve lo ps pro pe rtie s to a dd pre mium spa c e type s. F ifte e n suc h pro je c ts we re c o mple te d in 2017, a nd the Co mpa ny a ntic ipa te s a ppro xima te ly10-20 pro je c ts pe r ye a r in 2018 & 2019. With a n 8%+ yie ld, the se lo w risk inve stme nts in e xisting pro pe rtie s a lso upg ra de the a ppe a ra nc e a nd c usto me r e xpe rie nc e a t the se sto re s.

8 G RO WT H DRIVERS L E ASE -UP PROPE RT I E S T he Co mpa ny do e s no t de ve lo p ne w pro pe rtie s, b ut o c c a sio na lly purc ha se s ne wly b uilt +0.19 $19.1M pro pe rtie s o r pro pe rtie s in the e a rly sta g e s o f le a se -up. T we nty-two o f the se le a se -up fa c ilitie s ha ve no t ye t ma de the ir full impa c t o n NOI . I n 2018 a nd o ve r the ne xt fe w I nc re me nta l NOI E stima te d Sta b ilize d NOI * ye a rs, the se pro pe rtie s will ha ve a n o utsize d c o ntrib utio n to NOI . I mpa c t pe r Sha re ** Ma rke t Numb e r o f Sto re s Co st Ne t Re nta b le Sq . F t. Oc c upa nc y 12/ 31/ 18 NOI *** Chic a g o , I L 9 $ 123,166 708,305 85.5% $ 5,044 Austin, T X 2 12,477 146,969 89.6% 876 Da lla s, T X 2 21,690 127,207 84.3% 764 Pho e nix, AZ 2 17,179 131,858 93.5% 1,328 Bo sto n, MA 1 10,291 63,283 86.3% 400 Bo ulde r, CO 1 8,373 45,986 75.8% 216 Cha rle sto n, SC 1 8,620 70,165 40.4% 104 L o s Ang e le s, CA 1 18,600 79,345 89.1% 740 Mia mi, F L 1 11,274 69,801 88.9% 732 Sa n Ma rc o s, T X 1 8,353 59,066 87.8% 224 Cha rlo tte , NC 1 12,549 70,118 17.0% (224) 10,204 22 $ 252,572 1,572,103 81.6% * NOI a t 85% o c c upie d a t sta b le ma rke t ra te s ** Ba se d o n the diffe re nc e b e twe e n e stima te d NOI a nd c urre nt NOI , a nd a ssuming 46,536,672 dilute d sha re s. *** Q1 2018 NOI a nnua lize d

9 G RO WT H DRIVERS T HI RD PART Y MANAGE ME NT Sinc e re b ra nding to L ife Sto ra g e , the Co mpa ny's 3rd nc o me +36% CAGR (sinc e 2011) Ma na g e me nt F e e I pa rty ma na g e me nt re ve nue s ha ve g ro wn sub sta ntia lly o n a ye a r o ve r ye a r b a sis – a 75% $2.0 inc re a se in 2017 ve rsus 2016. Do ub le dig it g ro wth is e xpe c te d to c o ntinue in 2018. $1.5 n millio ns $1.0 I $0.5 $0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018* *E stima te b a se d o n Q1 fe e s a nnua lize d / $0.04 pe r sha re

10 G RO WT H DRIVERS JOI NT VE NT URE RE VE NUE S Re la tio nships with JV pa rtne rs a llo w L ife Sto ra g e to g ro w its na tio na l fo o tprint, le ve ra g e e xisting re so urc e s, a nd g e ne ra te a dditio na l fe e inc o me with limite d c a pita l c o mmitme nt. Jo int Ve nture F F O pe r Sha re c o ntrib utio n ha s g ro wn fro m ro ug hly $0.04 pe r sha re in 2010 to a n e stima te d $0.19 pe r sha re in 2018. Pro -Ra ta Sha re o f Jo int Ve nture F F O Jo int Ve nture F e e I nc o me (in $millio ns) (in $millio ns) $9.0 $8.0 $8.0 $7.0 $7.0 $6.0 $6.0 $5.0 $5.0 $4.0 $4.0 $3.0 $3.0 $2.0 $2.0 $1.0 $1.0 $0.0 $0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018* 2010 2011 2012 2013 2014 2015 2016 2017 2018* *E stima te b a se d o n Q1 a nnua lize d

11 L IFE ST O RAG E F I NANCI AL ST RE NGT H Q1 2018 Highlights Gr owing Value We ll Positione d Balanc e She e t Conse r vative F inanc ial Ratios Str ong Capital Str uc tur e

12 FINANC IAL ST RENG T H Q1 2018 HI GHL I GHT S E xc e e de d Q1 a djuste d F F O pe r sha re e xpe c ta tio ns: $1.30 pe r sha re ; a 3.2% inc re a se o ve r Q1 2017 • (ve rsus g uidanc e : $1.24 - $1.28) E xc e e de d Q1 sa me sto re NOI g ro wth e xpe c ta tio ns: 2.50% • (ve rsus g uidanc e : 1.00% - 2.00%) Ac hie ve d re c o rd-hig h sa me sto re o c c upa nc y a t q ua rte r-e nd: 91.2% • Re duc e d sa me sto re inte rne t ma rke ting e xpe nse b y 18% b y le ve ra g ing impro ve d se a rc h e ng ine visib ility • Adde d 10 sto re s to the Co mpa ny’ s third pa rty ma na g e me nt pla tfo rm, L ife Sto ra g e So lutio ns • I nc re a se d ma na g e me nt fe e inc o me b y 31.7% o ve r Q1 2017 • Ra ise d a nnua l sa me sto re NOI g uida nc e to 1.25% - 2.25% • ( ve rsus pre vio us: 0.75% - 1.75%) Ra ise d a nnua l a djuste d F F O g uida nc e ra ng e : $5.36 - $5.43 • (ve rsus pre vio us: $5.33 – $5.43)