Self Storage Market Overview:

Operations and Investments

My BackgroundMy Background Licensed Real Estate Agent since 1994

Sold Residential Real Estate, 1994 to 2000

Extra Space Storage, 2000 to 2006

District Manager of a15-Property Portfolio

Marcus & Millichap Real Estate Investment Services

Self-Storage Investment Broker, 2006 to present

Self Storage Profits, Scott Meyers, 2011 to Present

Coach / Mentor

One of the fastest-growing sectors of the commercial real estate industry over the period of the last 25 years

1 in 10 households currently rent a self storage unit (10%). This is up from 6% in 1995

Source: Self Storage Association

Demand DriversDemand DriversLife Changing Events Death Divorce/Break-Ups Weddings/Consolidating Households Household Moves Small Business

5.09 million existing homes sold (2013); +9% from 2012 & highest level in 7 yrs

“Self Storage is a great property type as it just continues to ‘puke’ cash”! Ron Havner, CEO,

Public Storage

REIT Performance: 2013 vs 2012REIT Performance: 2013 vs 2012

Company REV NOI # Stores Occupancy

Extra Space Storage

7.4% 10.0% 1029 88% to 89%

Public Storage 5.3% 8.2% 2200 92% to 93%

Uncle Bob’s 7.7% 9.9% 475 87% to 90%

CubeSmart 7.4% 9.3% 526 85% to 89%

Source: Q4 2013 Earnings Call

Year End 2013 ResultsYear End 2013 Results Revenue growth ranges from 5.3% to

7.7%

NOI growth ranges from 8.2% to 10.0%

Leading private operators displaying similar strong performance, although REITs on average have about 3% occupancy advantage over non-REITS

REIT vs Non-REIT Performance: REIT vs Non-REIT Performance: 2013 versus 20122013 versus 2012

REIT’s Non-REITs / Mom & Pops

Income 6.95% 4.45%

Asking Rental Rates 1.0% 0.70%

Physical Occupancy 88% to 90% 85% to 87%

REIT Analyst Calls; Private Sources of over 46 facilities

Major Markets with Above Major Markets with Above Average Revenue Growth Average Revenue Growth

Source: REIT Earnings Calls

Chicago DenverLos Angeles San Diego

Texas FloridaNew York North Carolina

Income DriversIncome Drivers

Locks, Boxes & Moving Supplies

Admin Fees Tenant Insurance Truck Rentals

30-day Leases Reduce Discounts Revenue Mgmt Lower Cost of

Operations Increase Occupancy

Diversified cash flow, low volatility and low capital expenditures and no tenant improvement expenses = attractive income stream

Investment Market Overview

Self-storage companies were found to be the best real estate investment over the

past 10 years.- Bloomberg

Cap Rate TrendsCap Rate Trends

Cap Rate vs. 10-Year TreasuryCap Rate vs. 10-Year Treasury

Self-Storage vs. Self-Storage vs. Other Investments Other Investments

On Average: Stocks Return 10.98% per year Bonds Return 11.03% per year Storage REITs Return 17.85% per year

Source: Ibbotson Associates SBBI bonds index, NAREIT Report

Investment MarketInvestment Market

What does this all mean to me??

Raising private equity for your investment or trying to get a loan??

In Summary… In Summary…

Positive Revenue GrowthIncreased Occupancy

Returning (consumer) DemandHIGH Investor Demand

Low Interest RatesAvailable Capital

Lack of Alternative InvestmentsGo Get ‘Em

Questions?Questions?