L ife Stor age I nvestor Pr esentation S eptember 2017
Safe H ar bo r Statement 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, 2016 as filed with the Securities and Exchange Commission. We are under no obligation to update any such forward looking statements. 1
L ife Sto r age L o c atio ns as of 6/30/17 National platform with exposure to high growth markets. Recent acquisitions expanded footprint into Nevada and California. 697 self storage facilities 49 million net rentable sq. ft. 26 17 27 11 396,074 43 9 45 7 5 customers 6 5 6 14 13 $5.2 billion 22 enterprise value 9 12 8 6 24 6 30+ years 24 5 industry experience 46 7 7 10 8 88 quarters 16 25 697 Locations 61 8 12 9 18 consecutive dividends 21 566 Wholly Owned 19 8 94 Joint Venture Major markets 37 Managed Four or fewer stores
B igger – B etter – Str o nger In 2016, Life Storage completed a transformational deal that enhanced the Company’s portfolio and balance sheet in multiple ways. Size & Scale: 12/31/2015 6/30/17 % Inc. No. of Stores (wholly owned) 452 566 25% Increased scale by 30% Square Footage 30.6 million 39.7 million 30% Upgraded age, size & Rental Units 270,755 354,046 31% quality of portfolio Qualitative: Greater geographic Avg. Age of Stores (wholly owned) 21.3 years 20.1 years (6%) diversification Climate Controlled Sq. Ft. 12.9 million 18.1 million 40% Rate per Sq. Ft. $12.83 $13.36 4% Strengthened Avg. Annual Revenue per Store $831,202 $909,142 9% demographic profile Population – 3 mile radius 78,742 88,789 13% Improved credit rating Population – 5 mile radius 189,781 216,737 14% to BBB/Baa2 Financial: Credit Rating BBB ‐ /Baa3* BBB/Baa2 +1 grade Credit Line Capacity $300 mil. $500 mil. 67% Wgtd. Avg. Debt Maturity Tenure 4.7 years 6.4 years 36% *Prior to 12/1/15
T he Str ength o f the B r and Helpful Convenient Secure When you think of a company Clean called Life Storage, Safe Easy what comes to mind? (three adjectives – open ended) Reliable Big Spacious Good Rates Affordable
E mbedded Gr o wth Dr iver s Joint Venture Agreements 3rd Party Management Program Certificate of Occupancy & Lease up Stores Expansions & Enhancements • $30+ million planned in 2017 (50% already funded) 120+ Non Same Store Properties
Joint Ventur e Revenue Str eams Ac c eler ating Relationships with joint venture partners allows Life Storage to grow its national footprint, leverage existing resources, and generate additional fee income with limited capital commitment. Pro ‐ Rata Share of Joint Venture FFO Joint Venture Fee Income $8,000 $7,000 $7,000 $6,000 $6,000 $5,000 $5,000 *in thousands *in thousands $4,000 $4,000 $3,000 $3,000 $2,000 $2,000 $1,000 $1,000 $0 $0 2010 2011 2012 2013 2014 2015 2016 2017* 2010 2011 2012 2013 2014 2015 2016 2017* *expected
d Par 3 r ty Management Gaining T r ac tion Since rebranding to Life Storage, our 3 rd party management revenues are expected to grow by ~67%* on a year over year basis. 3 rd Party Management Fee Income $1,800 $1,600 36% CAGR Since 2011 67% $1,400 $1,200 *in thousands $1,000 $800 $600 $400 $200 $0 2010 2011 2012 2013 2014 2015 2016 2017* *Expected revenues 2017
ties o per ease-up Pr C o f O and L
C o f O and L ease-up Pr o per ties * Estimated Annualized Estimated NOI Occupancy Market Acquired Cost Sq. Ft. Cap Rate at stabilization at June 30, 2017 Chicago, IL May ‐ 2014 $5.50 MM 51,928 96.1% $534,000 9.71% Chattanooga, TN Sep ‐ 2014 6.55 MM 57,260 92.7% 563,000 8.60% Chicago, IL Nov ‐ 2014 5.75 MM 106,225 89.1% 557,000 9.69% Chicago, IL Mar ‐ 2015 8.69 MM 64,775 87.1% 735,000 8.46% Phoenix, AZ June ‐ 2015 7.90 MM 64,068 94.5% 638,000 8.08% Boston, MA June ‐ 2015 10.29 MM 63,475 86.1% 800,000 7.77% Phoenix, AZ Feb ‐ 2016 9.28 MM 67,795 94.2% 713,000 7.68% Miami, FL Feb ‐ 2016 11.27 MM 69,801 84.4% 851,000 7.55% Los Angeles, CA Mar ‐ 2016 18.60 MM 79,375 80.4% 1,253,000 6.74% Charleston, SC July ‐ 2016 8.62 MM 70,165 22.2% 858,000 9.95% Chicago, IL Nov ‐ 2016 8.88 MM 68,235 42.5% 750,000 8.45% Chicago, IL Feb ‐ 2017 10.09 MM 78,098 9.1% 822,800 8.15% Austin, TX Apr ‐ 2017 Lease** 58,611 44.2% 1,030,000 7.30% $111.42 MM 899,811 $10,104,800 8.05% *Does not include Legacy Life locations **Option to purchase for $14.1 Million in 2020
E xpansio ns & E nhanc ements Convert existing units to premium space including climate/humidity control Construct new buildings with added amenities Significantly upgrade property appearance, visibility and relevancy
e Assets 120 No n Same-Sto r
Co nser vative F inanc ial Ratio s Investment grade ratings and conservative financial ratios provide for financial flexibility. Debt to EBITDA Conservative Metrics 6.0 Debt / EBITDA 5.6x Debt Service Coverage 5.2x 5.0 Debt to Gross Assets 39.0% 4.0 Investment Grade Ratings Moody’s: Baa2 S&P: BBB 3.0 2010 2011 2012 2013 2014 2015 2016 2017* Debt Service Coverage Debt to Gross Assets 6.0 40.0% 5.0 4.0 30.0% 3.0 2.0 20.0% 2010 2011 2012 2013 2014 2015 2016 2017* 2010 2011 2012 2013 2014 2015 2016 2017* * As of 6/30/17
Well Po sitio ned B alanc e Sheet Life Storage has a solid, unsecured balance sheet with no debt maturities until December, 2019. $600 $600 $500 Investment Grade Investment Grade Credit Ratings Credit Ratings Moody’s: Baa2 Moody’s: Baa2 $400 S&P: BBB S&P: BBB In millions $331 $325 $300 Weighted Average Weighted Average $200 Maturity Maturity $175 $200 6.4 Years 6.4 Years $100 $100 $0 Bank Term Notes Line Institutions Public Bond Mortgage *As of 6/30/17
Gr o wing Shar eho lder Value Life Storage is well positioned to continue cash flow and dividend growth, supported by multiple revenue drivers, a favorable payout ratio and a solid balance sheet. Robust FFO* Per Share Strong & Growing Dividend $4.50 $6.00 $4.00 $5.00 $3.50 $3.00 $4.00 $2.50 $2.00 $3.00 $1.50 $1.00 $2.00 2010 2011 2012 2013 2014 2015 2016 2017* 2010 2011 2012 2013 2014 2015 2016 2017** * Expected 2010 2011 2012 2013 2014 2015 2016 2017*** Payout Ratio 73.5% 65.5% 54.9% 52.7% 62.2% 64.8% 71.3% 74.9% * As adjusted **Midpoint of guidance ***Expected
L ife Stor age I nvestor Pr esentation S eptember 2017
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