Cubesmart 2016q1 Analysis

REIT Analysis Memo

March 2, 2016

March 7, 2016

Authored by: Austin Decell

Table of Contents

I. Executive Summary.............................................................................................

2

II. Company Description……………………………………………………………...........

3

III. Property Markets………………………………………………………………………….

6

IV. Net Asset Value and Balance Sheet Analysis………………………………….

8

V. Earnings Outlook……………………………………………………………………………

9

VI. Dividend Yield………………………………………………………………………………. 10

VII. Resources…………………………………………………………………………………….. 12

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I. Executive Summary

To: Matthew Krueger, Aruna Sellathurai and Brandt Bakke

From: Austin Decell

CC: Cydney Donnell

2015 Key Notes

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Continued Portfolio Growth – CubeSmart added a net of 24

facilities to its owned and managed portfolios in 2015, bringing

the total number of properties to 672 (445 owned, 227

managed).

Strong Same Store Performance – 2015 was another strong year

for the company, as it reported same-store revenue, expenses

and NOI growths of 7.3%, 2.3% and 9.6%, respectively. This

marks the third consecutive year of NOI growth of greater than

9% for CubeSmart.

CubeSmart, L.P. - Highlights

Company Info

Headquarters

Chairman

President & CEO

Malvern, PA

William M. Diefenderfer III

Christopher P. Marr

Full-Time Employees

1837

Exchange

NYSE

Ticker Symbol

CUBE

Market Cap

Optimistic Outlook for 2016 – Demand is expected to continue

to outpace supply for self-storage, resulting in low vacancies and

compressed cap rates. CubeSmart’s 2016 Same-Store Guidance

is confident next year will provide further increases in revenues,

expenses and NOI.

$5.35B

Stock Price (Mar. 3, 2016)

$31.17

Target Price

$32.00

Recommendation

BUY

Ratings

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Stock Price Continues Rapid Climb – CubeSmart (NYSE:CUBE)

continued to beat the S&P500 and the RMZ in 2015. The

company’s average return...