Macquarie Self Storage Pricing Survey

Please refer to the important disclosures and analyst certification on inside back cover of this document, or on our

website www.macquarie.com.au/disclosures.

UNITED STATES

Analyst(s) Shahzeb Zakaria +1 212 231 0647 [email protected] Venkat Kommineni +1212 231 8065 [email protected]

10 April 2014 Macquarie Capital (USA) Inc.

The Self Storage Spiderman 1Q14: EXR Leads on Pricing & Occupancy

QoQ Change: Net rents: During 1Q14, EXR led the REITs with a +0.7% QoQ change in its avg.

net rent index, followed by CUBE (-0.3%), SSS (-1.0%) & PSA (-1.8%).

Occupancy: During 1Q14, EXR led the REITs with a +1.2% QoQ change in its

avg. occupancy index, followed by SSS (+0.9%), CUBE (+0.7%) and PSA (-0.9%)

(please read note regarding CUBE’s occupancy index).

QoQ Δ in Occupancy and Net Rent

Note: PSA sends out rent increase letters to existing customers between Feb and August Source: Company data, Macquarie Capital (USA), April 2014

MoM Change: Net rent: During Mar-14, EXR led the REITs with a +5.9% MoM change in its avg.

net rent index, followed by PSA (+3.7%), SSS (+3.3%) & CUBE (-0.0%).

Occupancy: During Mar-14, SSS led the REITs with a +2.3% MoM change in its

avg. occupancy, followed by PSA (+2.2%), EXR (+2.1%) and CUBE (+1.6%)

(please read note on page 3 regarding CUBE’s occupancy index).

Current construction levels have minimal impact: Given the strong MoM occupancy gains (across the board) in March, it appears

that the spring selling season is off to a solid start (post weather impacted months

of Dec/Jan that might have impacted MoM comparisons).

Over the last few months, the value of mini-storage construction (as reported by

U.S. Census Bureau) has invariably been revised downwards, following the

preliminary estimate.

Moreover, construction spending (on TTM basis) has been relatively flat over the

last 10 months.

We estimate that in the 1-yr ended Feb-14, self storage sqf stock grew by ~0.5%,

well below the ~1.6% avg. from July-97 to July-09 (our current estimate of 0.5% is

biased upwards; please read our construction monitor for details).

We think the level of new demand (driven by population growth in the age cohort 18+

along with general economic activity) is outpacing the current level of new supply.

Consequently, storage REIT fundamentals, as exhibited in pricing and occupancy

trends in Fig 8, remain robust. Our estimate and TP revisions (see Fig 16) are

primarily driven by more optimistic internal growth assumptions.

Fun fact: Most exp. storage unit in our survey is PSA’s 60x60 uncovered parking

spot in Aurora, CO that rents (online) for $6,889/mo. (Promo: 1st mo. rent $1).

Tracked

Datapoints

Datapoints

Rented Out

% change in

Occupancy Net Rent Index

% change in

Net Rent

4Q13 1Q14 4Q13 1Q14

CUBE 7,119 4,628 4,677 0.7% 100.8 100.4 (0.3%)

EXR 22,967 12,445 12,721 1.2% 97.6 98.3 0.7%

PSA 28,569 12,480 12,223 (0.9%) 86.2 84.6 (1.8%)

SSS 12,224 6,731 6,842 0.9% 102.9 101.8 (1.0%)

https://www.macquarieresearch.com/rp/d/r/publication.do?pub_id=7228953&file_name=SelfStorageConstruction010414e176358.pdf&uid=MTgwMTM&

http://www.publicstorage.com/colorado/self-storage-aurora-co/80015-self-storage/905/

http://www.publicstorage.com/colorado/self-storage-aurora-co/80015-self-storage/905/

Macquarie (USA) Research The Self Storage Spiderman

10 April 2014 2

Our survey over-estimated the sequential decline in occupancy for 4Q13 (vs 3Q13).

Fig 1 Our survey over-estimated the decline in occupancy

Source: Company data, Macquarie Capital (USA), April 2014

Our survey estimates the net rent change for new customers whereas the REITs report a combined

net rent figure for both new & existing customers. PSA discloses move-in rates for new customers but

the company reported the annual figure in the latest 10-K (vs the quarterly fig in the 10-Qs). Since the

customer turnover for PSA in 4Q is difficult to est., we refrain from using an implied 4Q13 move-in fig.

Fig 2 Survey’s rent est. for NEW customers vs REIT reported fig for new & existing cust.

Note: CUBE’s rent/occup. sqf figs are from 4Q13 supplemental; 3Q13 supp lists a diff figure (same store pool changed) Source: Company data, Macquarie Capital (USA), April 2014

Using the Δ between our survey & REIT reported figs, we have estimated the QoQ changes for 1Q14.

Fig 3 1Q14 versus 4Q13


Please note, these are sequential (QoQ) projections (using daily averages for rents and

occupancy) and will likely be much different from the YoY comparisons reported by the REITs.

Fig 4 Sequential change in rents & occupancy (adding the est. diff. from 4Q13 data)

Note: PSA sends out rent increase letters to existing customers between Feb and August. As a result, PSA’s sequential increase in net rents is likely higher than the fig in the left exhibit.

CUBE/EXR/SSS send out rent increase letters to existing customers throughout the year (impacts turnover of existing customers).

Please read note regarding CUBE’s occupancy index (on pg 3).


Tracked

Datapoints

Datapoints

Rented Out % Δ

SS Avg Occupancy

(%) % Δ Diff

Q3 Q4 Q3 Q4

CUBE 7,119 4,813 4,628 (2.6%) 90.0 88.9 (1.2%) 1.4%

EXR 22,967 13,281 12,445 (3.6%) 91.1 89.7 (1.5%) 2.1%

PSA 28,569 13,182 12,480 (2.5%) 94.4 93.0 (1.5%) 1.0%

SSS 12,224 7,203 6,731 (3.9%) 90.9 89.5 (1.5%) 2.3%

Macq. Net

Rent Index % Δ

Rent / Occup. Sqf

(co. reported) % Δ Diff

Turnover

in 4Q

Rent Increase to

Existing Customers

Q3 Q4 Q3 Q4 Period Increase

CUBE 102.5 100.8 (1.7%) 12.63 12.74 0.9% 2.6% ~23% 5-12-12 +8% to +9%

EXR 100.0 97.6 (2.5%) 14.33 14.39 0.4% 2.9% ~23% 5-9-9 +8% to +9%

PSA 91.3 86.2 (5.6%) 14.46 14.41 (0.3%) 5.3% < 23% Feb-Aug avg ~8.5%

SSS 104.6 102.9 (1.6%) 11.07 11.02 (0.5%) 1.2% ~23% ~8-12-12 avg ~9%

Tracked

Datapoints

Datapoints

Rented Out % Δ

Diff from

4Q

Est.

Occup. Δ

Q4 Q1

CUBE 7,119 4,628 4,677 0.7% 1.4% 2.1%

EXR 22,967 12,445 12,721 1.2% 2.1% 3.3%

PSA 28,569 12,480 12,223 (0.9%) 1.0% 0.1%

SSS 12,224 6,731 6,842 0.9% 2.3% 3.2%

Macq. Net Rent Index % Δ

Diff from

4Q

Est. Net

Rent Δ

4Q13 1Q14

CUBE 100.8 100.4 (0.3%) 2.6% 2.3%

EXR 97.6 98.3 0.7% 2.9% 3.6%

PSA 86.2 84.6 (1.8%) 5.3% 3.5%

SSS 102.9 101.8 (1.0%) 1.2% 0.2%

Est. Net

Rent Δ

Est.

Occupancy Δ

Total

Change

1Q14

CUBE 2.3% 2.1% 4.4%

EXR 3.6% 3.3% 7.0%

PSA 3.5% 0.1% 3.5%

SSS 0.2% 3.2% 3.4%


10 April 2014 3

4Q13 Scorecard

While we do not think our survey can predict same store revenue and occupancy figures, we

do expect our survey to be indicative of trends.

Fig 5 Macq Street Rate Index versus REIT reported rent / occupied sqf


The above table summarizes the changes in street rates (which only impact new customers) as

measured by our net rent index, along with the company reported rent / occupied sqf figures (for the

same store portfolios).

We also provide details around portfolio turnover (Macq. estimates) and rent increases to existing

customers (5-12-12 means the customer is eligible for a rent increase after 5 months of lease

commencement, followed by re-eligibility after every 12 months of the previous increase).

Noteworthy points:

CUBE Occupancy Index: CUBE removes (and adds back) units from its website, even though those

units are not rented out, as the company charges a higher rent to walk-in customers. As a result, in the

short term, CUBE’s occupancy index is impacted by removal or addition of these units from the

website. However, over the long term, the occupancy index will be directionally correct.

Our occupancy index is based on unit changes at all facilities in our database (includes facilities

that are not part of the same store pool).

The occupancy index is based on changes in the number of unique datapoints available for rent.

Currently, the index does not represent a weighted average change in the # of available datapoints

(where a datapoint for a 10 x 10 unit has more weight than one for a 7 x 7 unit – or a datapoint that is

likely to represent a smaller number of units (and revenue) at the facility).

Impact of Lease Structure on Vacate Pattern

Our occupancy indices for PSA and SSS, as presented in Fig 8, exhibit a cyclical pattern as those

companies structure their leases such that the anniversary date falls on the 1st calendar day of the

month. As a result, these companies experience a disproportionately large number of vacates towards

month end (relative to other times of the month). And since our web-spiders download pricing data at

around 6 am EST each morning, we end up reflecting occupancy and pricing changes for the last day

of the month on the 1st of the following month (explains the immediate dip in occupancy at the

beginning of the month).

EXR and CUBE structure their leases such that the anniversary date is 1 month from the lease start

date. Consequently, these companies do not experience the same vacate pattern towards month end

as experienced by PSA and SSS (visible in Fig 8 for EXR).

Macq. Net

Rent Index % Δ

Rent / Occup. Sqf

(co. reported) % Δ Diff

Turnover

in 4Q

Rent Increase to

Existing Customers

Q3 Q4 Q3 Q4 Period Increase

CUBE 102.5 100.8 (1.7%) 12.63 12.74 0.9% 2.6% ~23% 5-12-12 +8% to +9%

EXR 100.0 97.6 (2.5%) 14.33 14.39 0.4% 2.9% ~23% 5-9-9 +8% to +9%

PSA 91.3 86.2 (5.6%) 14.46 14.41 (0.3%) 5.3% < 23% Feb-Aug avg ~8.5%

SSS 104.6 102.9 (1.6%) 11.07 11.02 (0.5%) 1.2% ~23% ~8-12-12 avg ~9%


10 April 2014 4

Fig 6 Net Rent Index – MoM Change Fig 7 Occupancy Index – MoM Change

Please read note on pg3 regarding CUBE’s occupancy index


Fig 8 Net Rent and Occupancy Indices - By Company

Please read note regarding CUBE’s occupancy index


5.9%

3.7%3.3%

(0.0%)(1.0%)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

EXR PSA SSS CUBE

Avg. Net Rent Index MoM (% change)

2.3% 2.2%2.1%

1.6%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

SSS PSA EXR CUBE

Avg. Occupancy Index MoM (% change)

85.0

90.0

95.0

100.0

105.0

110.0

6/3

0

7/3

1

8/3

1

9/3

0

10

/31

11

/30

12

/31

1/3

1

2/2

8

3/3

1

Ind

ex

CUBE - Net Rent Index CUBE - Occupancy Index

90.0

92.0

94.0

96.0

98.0

100.0

102.0

104.0

106.0

108.0

110.0

6/3

0

7/3

1

8/3

1

9/3

0

10

/31

11

/30

12

/31

1/3

1

2/2

8

3/3

1

Ind

ex

EXR - Net Rent Index EXR - Occupancy Index

70.0

75.0

80.0

85.0

90.0

95.0

100.0

105.0

110.0

6/3

0

7/3

1

8/3

1

9/3

0

10

/31

11

/30

12

/31

1/3

1

2/2

8

3/3

1

Ind

ex

PSA - Net Rent Index PSA - Occupancy Index

80.0

85.0

90.0

95.0

100.0

105.0

110.0

6/3

0

7/3

1

8/3

1

9/3

0

10

/31

11

/30

12

/31

1/3

1

2/2

8

3/3

1

Ind

ex

SSS - Net Rent Index SSS - Occupancy Index


10 April 2014 5

Fig 9 Net Rent Index Fig 10 Occupancy Index



Fig 11 Promotions offered on data points available for rent on website


75.0

80.0

85.0

90.0

95.0

100.0

105.0

110.0

115.0

6/3

0

7/1

4

7/2

8

8/1

1

8/2

5

9/8

9/2

2

10

/6

10

/20

11

/3

11

/17

12

/1

12

/15

12

/29

1/1

2

1/2

6

2/9

2/2

3

3/9

3/2

3

Net R

en

t In

dex

CUBE EXR PSA SSS85.0

90.0

95.0

100.0

105.0

110.0

6/3

0

7/1

4

7/2

8

8/1

1

8/2

5

9/8

9/2

2

10

/6

10

/20

11

/3

11

/17

12

/1

12

/15

12

/29

1/1

2

1/2

6

2/9

2/2

3

3/9

3/2

3

Occu

pan

cy In

dex

CUBE EXR PSA SSS

First Month Half Off

First Month Free

-

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

7/1

7/1

5

7/2

9

8/1

2

8/2

6

9/9

9/2

3

10

/7

10

/21

11

/4

11

/18

12

/2

12

/16

12

/30

1/1

3

1/2

7

2/1

0

2/2

4

3/1

0

3/2

4

CUBE

None First Month Half Off First Month Free

2 Months Half Off 3 Months Half Off 2 Months Free

First Month Half Off

First Month Free

-

10%

20%

30%

40%

50%

60%

70%

7/1

7/1

5

7/2

9

8/1

2

8/2

6

9/9

9/2

3

10

/7

10

/21

11

/4

11

/18

12

/2

12

/16

12

/30

1/1

3

1/2

7

2/1

0

2/2

4

3/1

0

3/2

4

EXR

Act fast: 1 unit left! Act fast: Limited units First Month Half Off

First Month Free 50% Off 1st 3 Months Two Months Free

None

-

10%

20%

30%

40%

50%

60%

70%

80%

90%

7/1

7/1

5

7/2

9

8/1

2

8/2

6

9/9

9/2

3

10

/7

10

/21

11

/4

11

/18

12

/2

12

/16

12

/30

1/1

3

1/2

7

2/1

0

2/2

4

3/1

0

3/2

4

PSA

$1 first month rent 50% off first month rent No Special

-

5%

10%

15%

20%

25%

30%

35%

40%

45%

7/1

7/1

5

7/2

9

8/1

2

8/2

6

9/9

9/2

3

10

/7

10

/21

11

/4

11

/18

12

/2

12

/16

12

/30

1/1

3

1/2

7

2/1

0

2/2

4

3/1

0

3/2

4SSS

One Left

Next Month 50% Off

Next Month Free

None


10 April 2014 6

Initial revenue assumed to be 100 at 6/30/2013

Daily change in revenue:

If Occupancy index increases, the change is multiplied by the Net Rent Index from the previous

day.

If Occupancy decreases, the change is multiplied by 100 (in future, this will be switched to the net

rent index from 13 months ago – avg length of customer stay).

Weighted daily change in revenue:

Daily change in revenue is multiplied by 0.25% (= 12 / (365*13) or the avg daily turnover). This is

done to normalize changes.

Current day revenue = Weighted daily change in revenue + Previous day revenue.

Total revenue for July indexed at 100 for all companies.

This methodology does not fully account for rent increases to existing customers.

Fig 12 Total Revenue Index



95.0

96.0

97.0

98.0

99.0

100.0

101.0

Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14

CUBE

95.0

96.0

97.0

98.0

99.0

100.0

101.0


EXR

95.0

96.0

97.0

98.0

99.0

100.0

101.0


PSA

95.0

96.0

97.0

98.0

99.0

100.0

101.0


SSS


10 April 2014 7

Fig 13 Distribution of Daily Net Rent Changes

Note: Stats for time period from 1/1/2014 to 3/31/2014


0%

0%

2%

37%

10%

10%

38%

2%

0%

0%

0% 5% 10% 15% 20% 25% 30% 35% 40%

> 35%

35%-to-25%

25%-to-15%

15%-to-5%

5%-to-0%

0%-to-(5%)

(5%)-to-(15%)

(15%)-to-(25%)

(25%)-to-(35%)

< (35%) CUBE

Distribution of Daily Pricing Changes

0%

0%

8%

6%

41%

31%

8%

5%

0%

0%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

> 35%

35%-to-25%

25%-to-15%

15%-to-5%

5%-to-0%

0%-to-(5%)

(5%)-to-(15%)

(15%)-to-(25%)

(25%)-to-(35%)

< (35%) EXR


0%

0%

3%

17%

30%

29%

18%

2%

0%

0%

0% 5% 10% 15% 20% 25% 30% 35%

> 35%

35%-to-25%

25%-to-15%

15%-to-5%

5%-to-0%

0%-to-(5%)

(5%)-to-(15%)

(15%)-to-(25%)

(25%)-to-(35%)

< (35%) PSA

Distribution of Daily Pricing Changes0%

0%

1%

8%

41%

39%

10%

0%

0%

0%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

> 35%

35%-to-25%

25%-to-15%

15%-to-5%

5%-to-0%

0%-to-(5%)

(5%)-to-(15%)

(15%)-to-(25%)

(25%)-to-(35%)

< (35%) SSS



10 April 2014 8

Pricing by Geography

Fig 14 PSA’s Net Rent Index – by MSA (Top 10 MSAs)


Fig 15 PSA’s Net Rent / sqf


Net Rent / sqf % Change

2014-2 2014-3

DENVER-AURORA-BROOMFIELD, CO 14.09 15.38 9.2%

SEATTLE-BELLEVUE-EVERETT, WA 14.40 15.22 5.7%

WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV 16.88 17.74 5.1%

ATLANTA-SANDY SPRINGS-MARIETTA, GA 10.24 10.70 4.4%

CHICAGO-JOLIET-NAPERVILLE, IL 11.87 12.32 3.8%

LOS ANGELES-LONG BEACH-GLENDALE, CA 17.79 18.35 3.2%

ORLANDO-KISSIMMEE-SANFORD, FL 10.39 10.63 2.3%

HOUSTON-SUGAR LAND-BAYTOWN, TX 11.80 11.91 0.9%

DALLAS-PLANO-IRVING, TX 11.79 11.87 0.7%

OAKLAND-FREMONT-HAYWARD, CA 17.68 17.68 0.0%

15.00

16.00

17.00

18.00

19.00

20.00

21.00

1/1 1/8 1/15 1/22 1/29 2/5 2/12 2/19 2/26 3/5 3/12 3/19 3/26

OAKLAND-FREMONT-HAYWARD, CA MIAMI-MIAMI BEACH-KENDALL, FL LOS ANGELES-LONG BEACH-GLENDALE, CA SAN JOSE-SUNNYVALE-SANTA CLARA, CA

12.50

13.50

14.50

15.50

16.50

17.50

18.50

19.50

1/1 1/8 1/15 1/22 1/29 2/5 2/12 2/19 2/26 3/5 3/12 3/19 3/26

PORTLAND-VANCOUVER-HILLSBORO, OR-WA SEATTLE-BELLEVUE-EVERETT, WA SANTA ANA-ANAHEIM-IRVINE, CA WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV

9.00

10.00

11.00

12.00

13.00

14.00

15.00

16.00

17.00

1/1 1/8 1/15 1/22 1/29 2/5 2/12 2/19 2/26 3/5 3/12 3/19 3/26

DALLAS-PLANO-IRVING, TX CHICAGO-JOLIET-NAPERVILLE, IL MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI DENVER-AURORA-BROOMFIELD, CO

9.00

9.50

10.00

10.50

11.00

11.50

12.00

12.50

1/1 1/8 1/15 1/22 1/29 2/5 2/12 2/19 2/26 3/5 3/12 3/19 3/26

ORLANDO-KISSIMMEE-SANFORD, FL ATLANTA-SANDY SPRINGS-MARIETTA, GA TAMPA-ST. PETERSBURG-CLEARWATER, FL HOUSTON-SUGAR LAND-BAYTOWN, TX


10 April 2014 9

Our estimate revisions are primarily driven by more optimistic internal growth assumptions.

Fig 16 FFO/sh estimate and TP changes


FY2014 FY2015 FY2016 Target Price

New Old New Old New Old New Old

CUBE 1.04 1.03 1.15 1.14 1.27 1.26 18.50 18.25

EXR 2.50 2.45 2.85 2.76 3.12 3.03 52.50 51.00

PSA 8.21 8.17 8.83 8.73 9.51 9.36 183.00 179.00

SSS 4.20 4.19 4.67 4.67 5.07 5.06 78.00 77.00


10 April 2014 10

Important disclosures:

Recommendation definitions

Macquarie - Australia/New Zealand Outperform – return >3% in excess of benchmark return Neutral – return within 3% of benchmark return Underperform – return >3% below benchmark return Benchmark return is determined by long term nominal GDP growth plus 12 month forward market dividend yield

Macquarie – Asia/Europe Outperform – expected return >+10% Neutral – expected return from -10% to +10% Underperform – expected return <-10%

Macquarie First South - South Africa Outperform – expected return >+10% Neutral – expected return from -10% to +10% Underperform – expected return <-10%

Macquarie - Canada Outperform – return >5% in excess of benchmark return Neutral – return within 5% of benchmark return Underperform – return >5% below benchmark return

Macquarie - USA Outperform (Buy) – return >5% in excess of Russell 3000 index return Neutral (Hold) – return within 5% of Russell 3000 index return Underperform (Sell)– return >5% below Russell 3000 index return

Volatility index definition*

This is calculated from the volatility of historical price movements. Very high–highest risk – Stock should be expected to move up or down 60–100% in a year – investors should be aware this stock is highly speculative. High – stock should be expected to move up or down at least 40–60% in a year – investors should be aware this stock could be speculative. Medium – stock should be expected to move up or down at least 30–40% in a year. Low–medium – stock should be expected to move up or down at least 25–30% in a year. Low – stock should be expected to move up or

down at least 15–25% in a year. * Applicable to Asia/Australian/NZ/Canada stocks only

Recommendations – 12 months Note: Quant recommendations may differ from Fundamental Analyst recommendations

Financial definitions

All "Adjusted" data items have had the following adjustments made: Added back: goodwill amortisation, provision for catastrophe reserves, IFRS derivatives & hedging, IFRS impairments & IFRS interest expense Excluded: non recurring items, asset revals, property revals, appraisal value uplift, preference dividends & minority interests EPS = adjusted net profit / efpowa* ROA = adjusted ebit / average total assets ROA Banks/Insurance = adjusted net profit /average total assets ROE = adjusted net profit / average shareholders funds Gross cashflow = adjusted net profit + depreciation *equivalent fully paid ordinary weighted average number of shares All Reported numbers for Australian/NZ listed stocks are modelled under IFRS (International Financial Reporting Standards).

Recommendation proportions – For quarter ending 31 March 2014

AU/NZ Asia RSA USA CA EUR Outperform 51.32% 60.23% 41.25% 40.21% 58.52% 48.74% (for US coverage by MCUSA, 8.21% of stocks followed are investment banking clients)

Neutral 34.54% 24.97% 40.00% 53.19% 35.56% 32.77% (for US coverage by MCUSA, 6.67% of stocks followed are investment banking clients)

Underperform 14.14% 14.80% 18.75% 6.60% 5.92% 18.49% (for US coverage by MCUSA, 0.00% of stocks followed are investment banking clients)

CUBE US vs MSCI US REIT Index, & rec history

(all figures in USD currency unless noted)

EXR US vs MSCI US REIT Index, & rec history


SSS US vs MSCI US REIT Index, & rec history


PSA US vs MSCI US REIT Index, & rec history


Note: Recommendation timeline – if not a continuous line, then there was no Macquarie coverage at the time or there was an embargo period.

Source: FactSet, Macquarie Capital (USA), April 2014

12-month target price methodology

CUBE US: US$18.50 based on a DCF methodology

EXR US: US$52.50 based on a DCF methodology

SSS US: US$78.00 based on a DCF methodology

PSA US: US$183.00 based on a DCF methodology


10 April 2014 11

Company-specific disclosures: Important disclosure information regarding the subject companies covered in this report is available at www.macquarie.com/disclosures.

Target price risk disclosures: CUBE US (US$17.79, Neutral): Risks include development focused in the NYC metro EXR US: (US$48.24, OP): Risks include Google entering the storage space as an aggregator. SSS US: (US$74.43, N): Risks include slower growth due to relatively weaker locational quality of assets and under-performance on Google's organic search. PSA US (US$170.13, OP): Risks include a Google algorithm change that would reduce PSA's advantage for the search term "Public Self Storage"

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Macquarie Self Storage Pricing Survey

Documents

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net rent change

occupancy source

mom change

pricing occupancy qoq

occupancy trends

cubes occupancy index

net rent note