Owners Network Meeting

Transcription

1 Owners Network Meeting 9:00 to Noon Facilitator Joe Garvey Introductions / Question of the Day Collier Valuation Update Jeff Shouse Google, Craiglist, Aggregator Mark Tidbits Mark Next Meeting Topics Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 1

2 1 Owners Network Meeting March Theme 1. Make the phone ring 2. Answer the phone 3. Complete the sale o Please Check In o Verify Contact Info o Materials Tables3 3 Yes. I will need a 10 by 30 and a parking space

3 April 16 th April 17 th April 18 th 5:00 Registration Wine Tasting with Flora Springs Meet the wine maker, 2012 wine grower of the year Hosted by SSBC / SSMC 8:00 Registration 9:00 to 3:30 Conference 4:30 to 6:00 Reception Breakfast and Networking

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5 CSSA membership $ 250 up to 5 sites

6 Napa Registration $ 200 for Owner Member If you join CSSA, fee will be waived

7 Introduction & Opening Discussion Facility / Location Any keys issues you are facing you would like the group to discuss? Questions of the day Questions of the day Last time you reviewed google places? Do you use a web aggregator? If so who, fee structure, results? Are you aware of any pending storage development? Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 7

8 Site Level - Occupancy Survey Overall Site Occupancy Storage Containers Parking Less 70% 71-80% 81-90% 91-95% Over 95% Last increase in standard rate more than 12 months? Yes No Do you look at standard rates on a monthly basis as part of your standard process? Does your management software have automated rate management capability? Last increase in a tenant rate less than 6 months? Yes Results will be ed to signin sheet No Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 8

9 Unit Size 5 * 5 5 * * * * 30 Parking - Uncovered Parking - Covered Parking - Enclosed Unit Size Occupancy Less 70% 71-80% 81-90% 91-95% Over 95% = Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 9

10 Unit Size Rental Survey Unit Size Under $25 $ 26 - $ 40 $41 - $ 60 $61 - $ 80 $81 - $ 100 $101 - $120 $121 - $140 $141 - $160 Over $ * 5 5 * * * * 30 Parking - Uncovered Parking - Covered Parking - Enclosed How far are your customers coming from? Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 10

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12 7.75% 7.40% 7.65% 7.65% 7.75% 7.55% 8.00% 7.75% 7.50% 7.30% 7.00% 6.75% 6.55% 6.25% 8.55% 8.75% 8.45% National Cap Rates Self-Storage 4Q % 2Q % 4Q % 2Q % 4Q % 2Q % 4Q % 2Q % 4Q % 2Q % 4Q % 2Q % 4Q % 2Q % 4Q % 2Q % 4Q % 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% National Capitalization Rate Averages 4Q-05 4Q-06 4Q-07 4Q-08 4Q-09 4Q-10 4Q-11 4Q-12 4Q-13 Self-Storage Source: PriceWaterhouse Coopers Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 12

13 Recent Closings Actual Location Class Age Sq Foot Units % Occ Price Cap Time Turlock B 15 37, ,800M 6.5% Q1-14 Chowchilla C 20 32, ,450M 8.0% Q1-14 Chico C 25 29, K 8.0% Q1-14 Storage Owners Networking Meeting Sponsored and Facilitated by: Self Storage Brokers of California Page 13

14 Online Marketing Google Places Craigslist

15 Getting Started Google Maps Look for storage

16 Log into Google

17 Claimed Business

18 Enter name of business Select Add a Listing

19 Select Business and Verify Wrong phone numbers are not uncommon Multiple numbers for a site Marketing phone number YP.com phone numbers etc

20 Describe the business Note required verification Edit

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22 Before Edit Hours Add photos remember a map Describe your site why you?

23 Before After

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26 Benefits of Login Account Previous ads saved Ads can be reposted Ads get published directly (rather than ed for consent) Saves Time

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28 Review the ads that are posted (content, frequency, message) Different message, multiple listings, branded site info Site name is okay, site name with special is better Market to the languages spoken in the area Have 5-10 ads with different message to change Post on an ongoing basis - - with branding

29 Pictures, location map, specifics, phone number

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31 Online Presence when can an aggregator help?

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36 Online Presence when can an aggregator help?

37 Summary - Aggregator Can be useful in a crowded market (ie. Sacramento yes) Can be used in conjunction with, or instead of other web techniques such as Google ad words or Search Engine Optimization (SEO) In a major market, the REITs will dominate internet presence There are different payment alternatives and methods By rental (size, dollar) Percentage Need to understand average length of stay Track results and net benefits An important question to ask can you win the business cost effectively on your own initiative

38 Tidbits A small and particularly interesting item of gossip or information ADA Handle REIT Performance Yes. I will need a 10 by 30 and a parking space Mark Yandow

39 General Trends from Observation and Phone Call Upward trend in occupancy in Central Valley and Northern California Development has started nationwide New construction started Projects going through planning process Land deals coming back onto market Building is, and will occur in over saturated markets Why? Prime locations 3 new sites into Bakersfield in excellent locations. They will control pricing and new demand, and secondary locations in the vicinity will get hammered. Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 42

40 ADA Handles 5% of 1 st 200 units 2% over 200 Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 43

41 The Big Guys Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 44

42 Operators over 1 million square feet Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 45

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44 Public Storage Public Storage, a member of the S&P 500 and FT Global 500, is a fully integrated, self-administered and self-managed real estate investment trust that primarily acquires, develops, owns and operates self-storage facilities. The Company s headquarters are located in Glendale, California. At March 31, 2013, the Company had interests in 2,080 self-storage facilities located in 38 states with approximately 133 million net rentable square feet in the United States and 188 storage facilities located in seven Western European nations with approximately ten million net rentable square feet operated under the Shurgard brand. The Company also owns a 41% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28.3 million rentable square feet of commercial space, primarily flex, multi-tenant office and industrial space, at March 31, Operating Results for the Three Months Ended December 31, 2013 Our self-storage net operating income increased $38.1 million in the three months ended December 31, 2013 as compared to the same period in 2012, including $24.7 million for our Same Store Facilities and $13.4 million for our non-same Store Facilities. Revenues for the Same Store Facilities increased 5.4% or $22.0 million in the quarter ended December 31, 2013 as compared to the same period in 2012, due to higher realized annual rent per occupied square foot and higher average occupancy. Cost of operations for the Same Store Facilities decreased by 2.6% or $2.7 million in the quarter ended December 31, 2013 as compared to the same period in 2012, due primarily to lower advertising and selling costs offset partially by higher snow removal and property tax expense. The increase in net operating income for the non-same Store Facilities is due primarily to the impact of the acquisition of 145 self-storage facilities from third parties since January Our self-storage net operating income increased $124.6 million in the year ended December 31, 2013 as compared to the same period in 2012, including $93.0 million for our Same Store Facilities and $31.6 million for our non-same Store Facilities. Revenues for the Same Store Facilities increased 5.3% or $86.5 million in the year ended December 31, 2013 as compared to the same period in 2012, due to higher realized annual rent per occupied square foot and higher average occupancy. Cost of operations for the Same Store Facilities decreased by 1.3% or $6.5 million in the year ended December 31, 2013 as compared to the same period in 2012, due primarily to lower repairs and maintenance and advertising and selling costs, offset partially by higher snow removal and property tax expense. The increase in net operating income for the non-same Store Facilities is due primarily to the impact of the acquisition of 145 self-storage facilities from third parties since January 2012 Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 47

45 Extra Space About Extra Space Storage Inc. Extra Space Storage Inc., headquartered in Salt Lake City, is a fully integrated, self-administered and self-managed real estate investment trust. As of June 30, 2013, the Company owned and/or operated 974 self-storage properties in 35 states, Washington, D.C. and Puerto Rico. The Company's properties comprise approximately 649,000 units and approximately 71.0 million square feet of rentable storage space offering customers conveniently located and secure storage solutions, including business storage. Extra Space Storage is the second-largest owner and/or operator of self-storage properties. Highlights for the three months ended December 31, 2013: Achieved funds from operations ("FFO") of $0.52 per diluted share, including a $0.04 expense related to costs associated with acquisitions and a $0.01 expense related to the Company's exchangeable senior notes. Excluding these items, FFO as adjusted was $0.57 per diluted share representing a 26.7% increase compared to the same period in Increased same-store revenue and net operating income ("NOI") by 6.6% and 8.9%, respectively, compared to the same period in Increased same-store occupancy by 130 basis points to 89.2% at December 31, 2013, compared to 87.9% as of December 31, Acquired 50 properties for approximately $310.4 million. Spencer F. Kirk, CEO of Extra Space Storage Inc., commented: "2013 was an exceptional year for the selfstorage industry and for Extra Space Storage. We saw record high occupancies and strong operational performance. The inflow of new supply continues to be minimal. Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 48

46 Uncle Bobs CubeSmart Reports Annual 2013 Key Highlights for the Quarter Increased same-store (298 facilities) net operating income ("NOI") 7.3% year over year, driven by 6.7% revenue growth and a 5.3% increase in property operating expenses. Same-store occupancy averaged 89.3% during the quarter, up 420 basis points year over year; ended the quarter with same-store occupancy of 88.9%. Closed on six facility acquisitions totaling $56.7 million, including locations in Florida, Maryland, and Texas. Acquired 35 facilities located in Texas (34) and North Carolina (1) through a newly formed joint venture for an aggregate purchase price of $315.7 million. Disposed of 22 facilities in California, Tennessee, and Texas for combined proceeds of $90.0 million. CubeSmart is a self-administered and self-managed real estate investment trust. CubeSmart owns or manages 532 self-storage facilities across the United States. According to the 2014 Self Storage Almanac, CubeSmart is one of the top four owners and operators of self-storage facilities in the U.S. Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 49

47 Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 50

48 7,000 units 400 parking spaces 1,100,000 square feet Web based management software Financials maintained in the cloud Continuous management training Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 51

49 Manger in - check New customers find us on Google? Check Rents and leases 24 by 7? check Owner Vision Phones being answered 100% of the time? Money going in the bank? Check Lets order another round

50 Next Meeting Manager Training & Role Playing Aggregated Web Marketing Unmanned operation Broadcast Security Cameras to the web Facility Transformation case study walkthru, complete with online review & access, costs & results Types of Promotions - - Effectiveness Banners / Marketing (15 minutes cost) Portable Storage - Stacked How to manipulate Google. Client reviews Google ad words how to position your presence Impact of ADA Tenant Insurance Storage Lien Auctions Sponsored and Facilitated by: Self Storage Brokers of California Storage Owners Networking Meeting Page 53