CFA Global Champion PowerPoint

CFA Institute Research Challenge
Atlanta, GA - Americas Competition
Canisius College
Buffalo, NY
Matthew Coad
Carl Larsson
Stephen Miller
Kevin Monheim
Ryan Zimmer

Company Overview
Industry &
Competitive
Positioning
Financial Analysis Valuation Risk Analysis Conclusion
Executive Summary
Main Features
 4th largest Self-Storage Company in the U.S.
 92% of Revenue is derived from Rental Income
 Strong Management Platform
 Over 500 Properties in Portfolio
SSS $96.00
SSS $93.95
1
Market Profile
Closing Price (04/02/2015) $93.95
52-Week High / Low $97.76 / $72.88
Average Volume (3M) 247,279
Diluted Shares Out. 34,217,717
Market Cap $3.18B
Dividend Yield 3.20%
Beta 0.87
EV / Revenue 14.5x
EV / EBITDA 23.3x
P / FFO Share 23.5x
Institutional Holdings 96.85%
Insider Holdings 2.60%

Company Overview
Industry &
Competitive
Positioning
Competitive Advantage
Revenue
Management
Program
Web-based
Marketing
Call Center
2
Location and Convenience:
 24/7 Security System; keyboard
controlled access
Web Marketing:
 70% of sales driven by internet contact
with customers
Call Center:
 31,000 Rental Inquiries a Month
Revenue Management System:
 Uses 10-year historical information

Company Overview
Industry &
Competitive
Positioning
State
%of
2013
#Of
Prop.
%of
2014
#Of
Prop.
Texas 26.1% 117 25.1% 133
Florida 13.9% 68 14.3% 72
NewYork 6.7% 34 8.4% 35
NewJersey 7.7% 21 7.6% 29
Georgia 5.6% 30 5.5% 30
Ohio 4.4% 23 4.0% 23
Alabama 4.2% 22 3.4% 22
Virginia 3.9% 19 3.3% 19
Louisiana 3.7% 16 2.6% 17
Mississippi 2.9% 15 2.6% 15
Remaining 15 20.9% 113 23.2% 123
Total 100% 478 100% 518
Properties
3

Company Overview Financial Analysis Valuation Risk Analysis Conclusion
Industry &
Competitive
Positioning
Industry Overview
LEGEND
0 No threat to Sovran
1 Insignificant threat to Sovran
2 Low threat to Sovran
3 Moderate threat to Sovran
4 Significant threat to Sovran
5 High Threat to Sovran
Porter’s Five Forces
 Bargaining Power of Customers – MODERATE
 Intensity of Competitive Rivalry – MODERATE
 Bargaining Power of Suppliers – LOW
 Threat of Substitutes – LOW
 Barriers to Entry – MODERATE
4

Industry &
Competitive
Positioning
Competitive Postioning SSS CUBE EXR PSA
Market Cap $3.12B $3.82B $7.71B $34.03B
3rd Party Management
Store Locator on Homepage
Interactive Facility Location Map
List of Alternative Storage Locations
Van or Truck Rental Options
Climate-Controlled Units
Vehicle Storage
Packing Supplies
Promotions for New Customers
24-Hour Call Center
Industry Overview
 Economies of Scale vs Smaller Competitors
 Increasing Ancillary Revenue Segment
 Diverse Service Offerings
5

Industry &
Competitive
Positioning
Demand Drivers
14.5%
15.0%
15.5%
16.0%
16.5%
17.0%
320,000
322,000
324,000
326,000
328,000
330,000
332,000
334,000
336,000
2015 2016 2017 2018 2019 2020
Aging and Growing
U.S. Population
Population 65 Years and Above
 U.S. Economic Growth
 Improving Job Market
 Encouraging Demographic Trends
(InThousands)(InThousands)
2500
3000
3500
4000
4500
Job Openings vs Job Separations
Total Job Openings Total Job Separations
30.0%
31.0%
32.0%
33.0%
34.0%
35.0%
36.0%
37.0%
38.0%
39.0%
40.0%
U.S Rental Rates
6

Industry &
Competitive
Positioning
Acquisitions
 UPREIT Structure
 Increasing Cost per Acquired Sq. Ft.
 Increasing Acquisition Expenditures
7

Industry &
Competitive
Positioning
Revenue Analysis
Occupancy Rates
8

Industry &
Competitive
Positioning
Profitability
9
Year
Net Profit
Margin
2008 19.8%
2009 10.9%
2010 23.2%
2011 16.3%
2012 25.2%
2013 29.0%
2014 27.3%
2015E 28.8%
2016E 29.2%
2017E 29.7%
2018E 30.0%
2019E 30.2%

Industry &
Competitive
Positioning
Debt Analysis
 Increasing Capacity to
Maintain BBB- Credit Rating
 Financing through Equity-
Debt Ratio of 70%-30%
10

Industry &
Competitive
Positioning
DCF Analysis
50%
Valuation Methods
EV/EBITDA Multiple
25%
11
Discounted Cash
Flow (DCF)
 Net Operating
Income (NOI)
 Monte Carlo
Simulation
Relative Multiple
Valuation
 EV / EBITDA
 Price / FFOPrice / FFO Multiple
25%

Industry &
Competitive
Positioning
Revenue Growth Breakdown 2015E 2016E 2017E 2018E 2019E
Increase in Occupancy Rates 1.0% 0.5% 0.5% 0.3% 0.3%
Increase in Sales per Square Ft. 6.0% 5.4% 3.8% 1.5% 1.0%
Increase in Total Square Ft. 5.8% 6.0% 4.5% 3.5% 3.0%
Rental Revenue Growth 12.8% 11.9% 8.8% 5.3% 4.3%
Ancilliary Revenue Growth 20.0% 15.0% 15.0% 12.5% 12.5%
Total Revenue Growth 13.3% 12.2% 9.3% 6.0% 5.1%
DCF Assumptions - Revenue
12

Industry &
Competitive
Positioning
DCF Assumptions - WACC
13
Cost of Equity 2015-16 2017-19
Risk Free Rate
(1)
2.25% 3.00%
Adjusted Beta 0.913 0.913
Market Risk Premium 7.75% 7.00%
Cost of Equity 9.33% 9.39%
(1) Expected 10-Year U.S. Treasury
Cost of Debt 2015-16 2017-19
Risk Free Rate
(1)
2.25% 3.00%
BBB Options Spread 2.08% 2.24%
Cost of Debt 4.33% 5.24%
(1) Expected 10-Year U.S. Treasury
(2) Option-Adj Spread (OAS) of the BofA ML
US Corporate BBB Index
Cap Rate 6.00%
2015-16 2017-19
8.33% 8.77%
WACC

Industry &
Competitive
Positioning
DCF Output - Monte Carlo Simulation
Inputs to Simulation
 Occupancy Rate
 Asking Rate Per Square Foot
 Acquisition Rate
 WACC
 Cap Rate
14
4.0% 87.4% 8.6%
SimulationData
Mean 94.84$
SD 9.60$
5thPercentile 80.20$
Median 94.26$
`
SELL HOLD BUY

Industry &
Competitive
Positioning
Company
Ent. Val.
(M)
EV /
EBITDA P / FFO
EV /
Rev
SSS $3,957.4 23.3x 23.5x 14.5x
CUBE $5,077.5 25.1x 22.9x 13.7x
EXR $10,266.4 25.4x 26.3x 15.6x
PSA $38,284.7 23.9x 24.5x 16.8x
Mean 24.4x 24.3x 15.1x
Median 24.5x 24.0x 15.0x
Relative Valuation
15
Current Price Price / FFO
$93.95 $98.81
EV / EBITDA
$97.13
Valuation Metrics

Industry &
Competitive
Positioning
DCF Analysis
50%
Price Target
EV/EBITDA Multiple
25%
16
Price / FFO Multiple
25%
$94.84
$96.00
$98.81 $97.13

Industry &
Competitive
Positioning
Main Risks
RR1 = Regulatory Risk – REIT
Classification
OR2 = Operational Risks – Loss Credit
Rating
MR1 = Market Risk – Rise in Interest
Rates
ER1 = Economic Risks – Easing of Loan
Requirements
17

Industry &
Competitive
Positioning
18
Concentration Risk (MR3)
Time Oil Price / Barrel
# Oil Rigs in
Texas
Sep-14 $94.51 905
Apr-15 $51.91 455
% Change -45.1% -49.7%
46
20-30
10-19
< 10
Number of Facilities

Industry &
Competitive
Positioning
18
Corporate Governance (OR1)
0
1
2
3
4
5
Disclosure
and
Transparency
Executive
Management
Board of
Directors
Rights and
Obligations
of
Shareholders
Takeover
Defense
KEY
1 Insignificant threat to Shareholders
2 Low threat to Shareholders
3 Moderate threat to Shareholders
4 Significant threat to Shareholders
5 High Threat to ShareholdersRating Methodology
 Disclosure and Transparency – INSIGNIFICANT
 Executive Management – INSIGNIFICANT
 Board of Directors – SIGNIFICANT
 Takeover Defense – LOW
 Rights and Obligations of Shareholders – LOW

Industry &
Competitive
Positioning
Potential Loss of BBB- Credit Rating (OR2)
 Increase in Cost of Debt due to downgrade to Junk Bond Status is
roughly 175 basis points
Mitigations:
 Maintain 70E – 30D Financing Structure
 Management Guidance
Description
Principal Due
(thousands)
Coupon
Rate
Increase in Coupon Rate if
Credit Rate Downgraded
2016 Term Note $150,000 6.38% 8.13%
2020 Term Note $100,000 5.54% 7.29%
2024 Term Note $175,000 4.53% 6.27%
19

Industry &
Competitive
Positioning
1 Year Correlation
RMZ andSSS 0.97
RMZ and10 Yr -0.93
SSS and 10 Yr -0.94
Interest Rates and Cap Rates Spread (MR1)
20
3.6%
`

Industry &
Competitive
Positioning
Conclusion
Current Price Upside
SSS $93.95 SSS $96.00
Target Price
2.2%
Merits
• Experienced
Management
• Technology
Platforms
• Macroeconomic
Tailwinds
• Improving
Financial Position
• Limited Supply
HOLD
Concerns
• Maturing
Occupancy Rates
• Increasing Price
of Acquisitions
• Concentration
Risk
• Interest Rate
Uncertainty
21

Conclusion
Presentation
Executive
Summary
Industry
Overview
Properties
Competitive
Advantage
Porter’s 5
Forces
Demand
Drivers
NPM and
Payout
Ratio
Revenue &
Occupancy
Rates
Debt
Analysis
Acquisitions
Valuation
Methods
WACC
Monte
Carlo
Relative
Multiples
Price
Target
Revenue
Assumptions
Concentration
Risk
Loss of
Credit
Rating
Interest
Rates
Main
Risks

Conclusion
Appendix
Competitive
Positioning
UPREIT
Structure
Ownership
Structure
SWOT
Interest
Rates
Cap Rate -
Bond
Spread
Dot Plot
Debt
Schedule
Revenue
Growth
LT Risk-
Free Rate
Assumed
Cap Rate
Monte
Carlo
Buy
Scenario
Buy
Scenario
Statistics
Cap Rate
Assumptions
Relative
Valuation
Multiples
FFO Calcs
Premium
Business
Description
Balance
Sheet
Income
Statement
Financial
Condition
Lack of
Independen
ce
Insider
Holdings
Manageme
nt
State
Saturation
Levels
Self-
Storage
Growth
Beta
Analysis
Treasury
Stock
Method
EVA
Properties
Marriage
Stats

Conclusion
Historical Balance Sheet Appendix
($ in Millions) Historical Balance Sheet
As of December 31, 2009 2010 2011 2012 2013 2014
ASSETS
Gross Property, Plant & Equipment $1,364.5 $1,420.0 $1,538.6 $1,742.4 $1,864.6 $2,178.0
Accumulated Depreciation (239.00) (271.80) (292.70) (325.00) (366.50) (411.70)
Total Real Estate Assets 1,125.48 1,148.16 1,245.87 1,417.39 1,498.17 1,766.30
% Growth 2.0% 8.5% 13.8% 5.7% 16.2%
Cash And Equivalents 10.71 5.77 7.32 7.26 9.52 8.50
Accounts Receivable 2.35 2.38 2.94 3.44 5.12 5.80
Other Receivables 0.17 0.25 0.59 0.86 0.88 0.60
Other Intangibles - 0.55 2.52 2.89 1.09 2.20
Loans Receivable Current - 2.80 - - - -
Other Current Assets 21.13 4.41 47.64 14.44 5.98 6.50
Trading Asset Securities - - - - 0.79 -
Deferred Charges, LT 2.50 1.50 4.40 3.60 4.30 6.30
Other Long-Term Assets 22.76 19.73 32.39 34.44 36.02 58.60
Investments in Joint Ventures - - - - - -
Total Assets 1,185.1 1,185.5 1,343.7 1,484.3 1,561.9 1,854.8
% Growth 0.0% 13.3% 10.5% 5.2% 15.9%
LIABILITIES
Curr. Port. of LT Debt - 36.69 - 100.00 5.59 5.60
Long-Term Debt 492.74 462.79 636.17 599.96 628.18 799.00
Accounts Payable 21.82 23.39 30.61 35.06 36.34 41.80
Curr. Income Taxes Payable - - 0.20 - - -
Def. Tax Liability, Curr. - - 0.10 1.00 0.90 1.30
Other Current Liabilities 0.50 0.60 0.50 0.50 0.50 0.50
Unearned Revenue, Non-Current 4.98 4.93 6.08 6.39 6.71 7.30
Other Non-Current Liabilities - - - - - -
Total Liabilities 520.04 528.40 673.67 742.91 678.23 855.50
% Growth 1.6% 27.5% 10.3% -8.7% 22.5%
Common Stock 0.29 0.29 0.30 0.32 0.34 0.40
Additional Paid In Capital 814.99 816.99 862.47 943.60 1,066.40 1,183.40
Retained Earnings - - - - - -
Distributions In Excess Of Earnings (139.90) (148.30) (169.80) (172.80) (162.50) (167.70)
Treasury Stock (27.20) (27.20) (27.20) (27.20) (27.20) (27.20)
Comprehensive Inc. and Other (11.30) (10.30) (10.30) (15.20) (6.40) (13.00)
Total Common Equity 636.97 631.58 655.54 728.73 870.71 975.90
% Growth -0.8% 3.8% 11.2% 19.5% 11.9%
Minority Interest 28.09 25.56 14.47 12.67 12.94 13.60
Total Equity 665.06 657.14 670.01 741.40 883.65 989.50
% Growth -1.2% 2.0% 10.7% 19.2% 11.8%
Total Liabilities And Equity 1,185.1 1,185.5 1,343.7 1,484.3 1,561.9 1,845.0
% Growth 0.0% 13.3% 10.5% 5.2% 15.9%

Conclusion
Historical Balance Sheet – Common Size Appendix
($ in Millions) Historical Balance Sheet Common Size Analysis
As of December 31, 2009 2010 2011 2012 2013 2014
ASSETS 191 192 201 234 274 326
Gross Property, Plant & Equipment 714.2% 739.3% 766.0% 744.3% 681.8% 668.0%
Accumulated Depreciation -17.5% -19.1% -19.0% -18.7% -19.7% -18.9%
Total Real Estate Assets 589.1% 597.8% 620.3% 605.5% 547.8% 541.7%
Cash And Equivalents 5.6% 3.0% 3.6% 3.1% 3.5% 2.6%
Accounts Receivable 1.2% 1.2% 1.5% 1.5% 1.9% 1.8%
Other Receivables 0.1% 0.1% 0.3% 0.4% 0.3% 0.2%
Other Intangibles - 0.3% 1.3% 1.2% 0.4% 0.7%
Loans Receivable Current - 1.5% - - - -
Other Current Assets 11.1% 2.3% 23.7% 6.2% 2.2% 2.0%
Trading Asset Securities - - - - 0.3% -
Deferred Charges, LT 1.3% 0.8% 2.2% 1.5% 1.6% 1.9%
Other Long-Term Assets 11.9% 10.3% 16.1% 14.7% 13.2% 18.0%
Investments in Joint Ventures - - - - - -
Total Assets 620.3% 617.2% 669.0% 634.1% 571.1% 568.8%
LIABILITIES
Curr. Port. of LT Debt - 19.1% 42.7% 2.0% 1.7%
Long-Term Debt 257.9% 240.9% 316.7% 256.3% 229.7% 245.0%
Accounts Payable 11.4% 12.2% 15.2% 15.0% 13.3% 12.8%
Curr. Income Taxes Payable - - 0.1% - - -
Def. Tax Liability, Curr. - - 0.0% 0.4% 0.3% 0.4%
Other Current Liabilities 0.3% 0.3% 0.2% 0.2% 0.2% 0.2%
Unearned Revenue, Non-Current 2.6% 2.6% 3.0% 2.7% 2.5% 2.2%
Other Non-Current Liabilities - - - - - -
Total Liabilities 272.2% 275.1% 335.4% 317.4% 248.0% 262.4%
Common Stock 0.2% 0.1% 0.1% 0.1% 0.1% 0.1%
Additional Paid In Capital 426.6% 425.4% 429.4% 403.1% 389.9% 362.9%
Retained Earnings - - - - - -
Distributions In Excess Of Earnings -73.2% -77.2% -84.5% -73.8% -59.4% -51.4%
Treasury Stock -14.2% -14.2% -13.5% -11.6% -9.9% -8.3%
Comprehensive Inc. and Other -5.9% -5.4% -5.1% -6.5% -2.3% -4.0%
Total Common Equity 333.4% 328.8% 326.4% 311.3% 318.3% 299.3%
Minority Interest 14.7% 13.3% 7.2% 5.4% 4.7% 4.2%
Total Equity 348.1% 342.1% 333.6% 316.7% 323.1% 303.5%
Total Liabilities And Equity 620.3% 617.2% 669.0% 634.1% 571.1% 565.8%

Conclusion
Projected Balance Sheet Appendix
Projected Balance Sheet
2015E 2016E 2017E 2018E 2019E
$2,460.5 $2,779.9 $3,041.0 $3,259.8 $3,457.9
(465.09) (525.48) (574.84) (616.20) (653.63)
1,995.38 2,254.44 2,466.21 2,643.65 2,804.26
13.0% 13.0% 9.4% 7.2% 6.1%
11.32 12.70 13.87 14.70 15.44
6.31 7.07 7.73 8.19 8.60
1.07 1.21 1.32 1.40 1.47
2.84 2.23 3.27 3.14 3.41
- - - - -
12.75 14.30 15.62 16.55 17.39
- - - - -
6.21 6.97 7.61 8.07 8.47
56.49 63.36 69.23 73.35 77.05
- - - - -
2,092.4 2,362.3 2,584.9 2,769.0 2,936.1
12.8% 12.9% 9.4% 7.1% 6.0%
- 150.00 - - -
824.24 759.57 977.41 1,032.55 1,081.47
50.62 56.77 62.03 65.72 69.04
- - - - -
1.42 1.60 1.74 1.85 1.94
0.68 0.76 0.83 0.88 0.92
9.14 10.25 11.20 11.87 12.47
- - - - -
886.10 978.96 1,053.22 1,112.87 1,165.84
3.6% 10.5% 7.6% 5.7% 4.8%
0.47 0.53 0.58 0.61 0.64
1,394.98 1,568.64 1,714.31 1,838.58 1,954.93
- - - - -
(163.82) (158.57) (151.42) (143.76) (135.47)
(27.20) (27.20) (27.20) (27.20) (27.20)
(15.79) (17.72) (19.36) (20.51) (21.54)
1,188.64 1,365.68 1,516.92 1,647.73 1,771.36
21.8% 14.9% 11.1% 8.6% 7.5%
17.64 19.78 21.61 22.90 24.05
1,206.27 1,385.46 1,538.53 1,670.63 1,795.41
21.9% 14.9% 11.0% 8.6% 7.5%
2,092.4 2,364.4 2,591.8 2,783.5 2,961.3
13.4% 13.0% 9.6% 7.4% 6.4%
($ in Millions)
As of December 31,
ASSETS
Gross Property, Plant & Equipment
Accumulated Depreciation
Total Real Estate Assets
% Growth
Cash And Equivalents
Accounts Receivable
Other Receivables
Other Intangibles
Loans Receivable Current
Other Current Assets
Trading Asset Securities
Deferred Charges, LT
Other Long-Term Assets
Investments in Joint Ventures
Total Assets
% Growth
LIABILITIES
Curr. Port. of LT Debt
Long-Term Debt
Accounts Payable
Curr. Income Taxes Payable
Def. Tax Liability, Curr.
Other Current Liabilities
Unearned Revenue, Non-Current
Other Non-Current Liabilities
Total Liabilities
% Growth
Common Stock
Additional Paid In Capital
Retained Earnings
Distributions In Excess Of Earnings
Treasury Stock
Comprehensive Inc. and Other
Total Common Equity
% Growth
Minority Interest
Total Equity
% Growth
Total Liabilities And Equity
% Growth

Conclusion
Projected Balance Sheet – Common Size Appendix
2015E 2016E 2017E 2018E 2019E
370 415 453 480 504
665.7% 670.6% 671.4% 679.3% 685.9%
-18.9% -18.9% -18.9% -18.9% -18.9%
539.9% 543.8% 544.5% 550.9% 556.3%
3.1% 3.1% 3.1% 3.1% 3.1%
1.7% 1.7% 1.7% 1.7% 1.7%
0.3% 0.3% 0.3% 0.3% 0.3%
0.8% 0.5% 0.7% 0.7% 0.7%
- - - - -
3.4% 3.4% 3.4% 3.4% 3.4%
- - - - -
1.7% 1.7% 1.7% 1.7% 1.7%
15.3% 15.3% 15.3% 15.3% 15.3%
- - - - -
566.1% 569.8% 570.7% 577.0% 582.4%
243.7% 228.7% 213.7% 198.7% 183.7%
13.7% 13.7% 13.7% 13.7% 13.7%
- - - - -
0.4% 0.4% 0.4% 0.4% 0.4%
0.2% 0.2% 0.2% 0.2% 0.2%
2.5% 2.5% 2.5% 2.5% 2.5%
- - - - -
239.8% 236.1% 232.5% 231.9% 231.3%
0.1% 0.1% 0.1% 0.1% 0.1%
400.3% 415.3% 430.3% 445.3% 460.3%
- - - - -
-61.6% -61.6% -61.6% -61.6% -61.6%
-7.4% -6.6% -6.0% -5.7% -5.4%
-4.3% -4.3% -4.3% -4.3% -4.3%
321.6% 329.4% 334.9% 343.4% 351.4%
4.8% 4.8% 4.8% 4.8% 4.8%
326.4% 334.2% 339.7% 348.1% 356.2%
566.1% 570.4% 572.2% 580.0% 587.4%
($ in Millions)
As of December 31,
ASSETS
Gross Property, Plant & Equipment
Accumulated Depreciation
Total Real Estate Assets
Cash And Equivalents
Accounts Receivable
Other Receivables
Other Intangibles
Loans Receivable Current
Other Current Assets
Trading Asset Securities
Deferred Charges, LT
Other Long-Term Assets
Investments in Joint Ventures
Total Assets
LIABILITIES
Curr. Port. of LT Debt
Long-Term Debt
Accounts Payable
Curr. Income Taxes Payable
Def. Tax Liability, Curr.
Other Current Liabilities
Unearned Revenue, Non-Current
Other Non-Current Liabilities
Total Liabilities
Common Stock
Additional Paid In Capital
Retained Earnings
Distributions In Excess Of Earnings
Treasury Stock
Comprehensive Inc. and Other
Total Common Equity
Minority Interest
Total Equity
Total Liabilities And Equity

Conclusion
Historical Income Statement Appendix
Historical Income Statement
($ in Millions) 2009 2010 2011 2012 2013 2014
Revenue
Rental Income $183.1 $182.9 $188.4 $217.9 $253.4 $302.0
Ancilliary Income $8.0 $9.2 $12.5 $16.2 $20.1 $24.0
Total Revenue $191.0 $192.1 $200.9 $234.1 $273.5 $326.1
% Growth 0.5% 4.6% 16.5% 16.8% 13.1%
Expenses
Property Expenses $70.1 $70.9 $75.3 $81.6 $92.3 $117.3
SGA $18.6 $21.9 $26.0 $32.3 $34.9 $40.8
Depr & Amort $32.7 $32.9 $34.8 $40.5 $45.2 $51.7
Operating Expenses $121.5 $125.7 $136.1 $154.4 $172.4 $209.8
% Growth 3.5% 8.3% 13.4% 11.7% 15.5%
Operating Income $69.6 $66.4 $64.7 $79.7 $101.1 $116.3
% Growth -4.6% -2.5% 23.1% 26.9% 9.0%
% Margin 36.4% 34.6% 32.2% 34.0% 37.0% 35.7%
Interest Income (Expense) ($50.0) ($31.6) ($38.5) ($33.2) ($32.0) ($34.5)
Income from JV $0.2 $0.2 ($0.3) $0.9 $1.9 $2.0
Income from Continuing Ops $19.8 $35.0 $25.8 $47.4 $71.0 $83.8
Income from Disc Ops $1.1 $7.6 $5.7 $8.2 $3.1 $5.2
NI $20.9 $42.5 $31.6 $55.6 $74.1 $89.0
% Growth 103.4% -25.8% 76.3% 33.2% 9.3%
% Margin 10.9% 22.1% 15.7% 23.8% 27.1% 27.3%
Noncontrolling Interest ($1.7) ($1.9) ($0.9) ($0.5) ($0.5) ($0.5)
NI to common shareholders $19.2 $40.6 $30.6 $55.1 $73.7 $88.4
% Growth 111.9% -24.6% 80.0% 33.6% 9.4%
% Margin 10.0% 21.2% 15.2% 23.5% 26.9% 27.1%
NOI $102.3 $99.3 $99.6 $120.2 $146.3 $168.0
% Growth -2.9% 0.3% 20.7% 21.7% 12.3%
% Margin 53.6% 51.7% 49.6% 51.4% 53.5% 51.5%
FFO $54.5 $67.3 $67.4 $92.5 $117.2 $135.5
% Growth 23.6% 0.1% 37.2% 26.7% 12.3%
% Margin 28.5% 35.0% 33.6% 39.5% 42.9% 41.5%

Conclusion
Projected Income Statement Appendix
Projected Income Statement
2015E 2016E 2017E 2018E 2019E
$340.7 $381.4 $414.8 $437.0 $455.8
$28.8 $33.2 $38.1 $42.9 $48.3
$369.6 $414.6 $452.9 $479.9 $504.1
13.3% 12.2% 9.3% 5.9% 5.0%
$132.96 $147.96 $160.39 $168.57 $175.66
$46.2 $51.5 $55.8 $58.6 $61.1
$58.4 $66.0 $72.2 $77.4 $82.1
$237.6 $265.4 $288.3 $304.6 $318.8
13.3% 11.7% 8.6% 5.6% 4.7%
$132.0 $149.1 $164.6 $175.3 $185.3
13.5% 13.0% 10.4% 6.5% 5.7%
35.7% 36.0% 36.3% 36.5% 36.8%
($35.3) ($39.0) ($41.9) ($44.3) ($46.4)
$2.1 $2.4 $2.6 $2.8 $2.9
$98.8 $112.5 $125.3 $133.8 $141.8
$7.7 $8.6 $9.4 $10.0 $10.5
$106.5 $121.2 $134.7 $143.8 $152.3
19.7% 13.8% 11.2% 6.7% 5.9%
28.8% 29.2% 29.7% 30.0% 30.2%
($0.68) ($0.76) ($0.83) ($0.88) ($0.93)
$105.8 $120.4 $133.9 $142.9 $151.4
19.6% 13.8% 11.2% 6.7% 5.9%
28.6% 29.0% 29.6% 29.8% 30.0%
$190.4 $215.1 $236.8 $252.7 $267.4
13.3% 13.0% 10.1% 6.7% 5.8%
51.5% 51.9% 52.3% 52.7% 53.0%
$157.2 $178.5 $197.5 $211.2 $223.9
16.0% 13.6% 10.6% 6.9% 6.0%
42.5% 43.1% 43.6% 44.0% 44.4%
Historical Income Statement
($ in Millions)
Revenue
Rental Income
Ancilliary Income
Total Revenue
% Growth
Expenses
Property Expenses
SGA
Depr & Amort
Operating Expenses
% Growth
Operating Income
% Growth
% Margin
Interest Income (Expense)
Income from JV
Income from Continuing Ops
Income from Disc Ops
NI
% Growth
% Margin
Noncontrolling Interest
NI to common shareholders
% Growth
% Margin
NOI
% Growth
% Margin
FFO
% Growth
% Margin

Conclusion
Income Statement – Common Size Appendix
Historical Income Statement Forecasted Income Statement Common Size Analysis
($ in Millions) 2009 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
Revenue
Rental Income 95.8% 95.2% 93.8% 93.1% 92.6% 92.6% 92.2% 92.0% 91.6% 91.1% 90.4%
Ancilliary Income 4.1% 4.8% 6.2% 6.9% 7.4% 7.4% 7.8% 8.0% 8.4% 8.9% 9.6%
Total Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Expenses
Property Expenses 36.7% 36.9% 37.5% 34.8% 33.7% 36.0% 36.0% 35.7% 35.4% 35.1% 34.8%
SGA 9.8% 11.4% 12.9% 13.8% 12.8% 12.5% 12.5% 12.4% 12.3% 12.2% 12.1%
Depr & Amort 17.1% 17.1% 17.3% 17.3% 16.5% 15.9% 15.8% 15.9% 15.9% 16.1% 16.3%
Operating Expenses 63.6% 65.4% 67.8% 66.0% 63.0% 64.3% 64.3% 64.0% 63.7% 63.5% 63.2%
Operating Income 36.4% 34.6% 32.2% 34.0% 37.0% 35.7% 35.7% 36.0% 36.3% 36.5% 36.8%
Interest Income (Expense) -26.2% -16.5% -19.2% -14.2% -11.7% -10.6% -9.6% -9.4% -9.3% -9.2% -9.2%
Income from JV 0.1% 0.1% -0.2% 0.4% 0.7% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6%
Income from Continuing Ops 10.4% 18.2% 12.9% 20.3% 26.0% 25.7%
Income from Disc Ops 0.6% 3.9% 2.8% 3.5% 1.1% 1.6% 2.1% 2.1% 2.1% 2.1% 2.1%
NI 10.9% 22.1% 15.7% 23.8% 27.1% 27.3% 28.8% 29.2% 29.7% 30.0% 30.2%
Noncontrolling Interest -0.9% -1.0% -0.5% -0.2% -0.2% -0.2% -0.2% -0.2% -0.2% -0.2% -0.2%
NI to common shareholders 10.0% 21.2% 15.2% 23.5% 26.9% 27.1% 28.6% 29.0% 29.6% 29.8% 30.0%
NOI 53.6% 51.7% 49.6% 51.4% 53.5% 51.5% 51.5% 51.9% 52.3% 52.7% 53.0%
FFO 28.5% 35.0% 33.6% 39.5% 42.9% 41.5% 42.5% 43.1% 43.6% 44.0% 44.4%

Conclusion
Financial Condition Appendix
Key Financials and Ratios 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
Total Revenue (1)
$234.1 $273.5 $326.1 $369.6 $414.6 $452.9 $479.9 $504.1
Net Operating Income
(1)
120.2 146.3 168.0 190.4 215.1 236.8 252.7 267.4
Net Profit Margin 23.8% 27.1% 27.3% 28.8% 29.2% 29.7% 30.0% 30.2%
Operating Margin 34.0% 37.0% 35.7% 35.7% 36.0% 36.3% 36.5% 36.8%
NOI Margin 51.4% 53.5% 51.5% 51.5% 51.9% 52.3% 52.7% 53.0%
Interest Coverage 2.40x 3.16x 3.37x 3.73x 3.82x 3.93x 3.96x 4.00x
LT Debt to Assets 0.49x 0.42x 0.45x 0.41x 0.40x 0.39x 0.38x 0.38x
FFO / Share $3.14 $3.72 $3.96 $4.36 $4.67 $4.95 $5.12 $5.27
Return on Equity 7.6% 8.5% 9.1% 9.0% 8.9% 8.9% 8.7% 8.6%
(1) In USD 000,000s

Conclusion
Financial Condition Cont. Appendix
Financial Condition 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
Profitability
NOI Margin 51.4% 53.5% 51.5% 51.5% 51.9% 52.3% 52.7% 53.0%
Operating Profit Margin 34.0% 37.0% 35.7% 35.7% 36.0% 36.3% 36.5% 36.8%
Net Profit Margin 23.8% 27.1% 27.3% 28.8% 29.2% 29.7% 30.0% 30.2%
Return on Assets 3.7% 4.7% 4.8% 5.1% 5.1% 5.2% 5.2% 5.2%
Return on Equity 7.6% 8.5% 9.1% 9.0% 8.9% 8.9% 8.7% 8.6%
Liquidity
Current Ratio 0.73x 0.58x 0.51x 0.61x 0.61x 0.61x 0.61x 0.61x
Cash Ratio 0.05x 0.22x 0.18x 0.22x 0.06x 0.22x 0.22x 0.22x
Activity
Accounts Receivable Turnover
(2)
68.11 53.43 56.22 58.61 58.61 58.61 58.61 58.61
Total Asset Turnover 0.16x 0.18x 0.18x 0.18x 0.18x 0.18x 0.17x 0.17x
Fixed Asset Turnover 0.17x 0.18x 0.18x 0.19x 0.18x 0.18x 0.18x 0.18x
Financial Leverage
Long-term Debt to Assets 0.49x 0.42x 0.45x 0.41x 0.40x 0.39x 0.38x 0.38x
Long-term Debt to Equity 0.96x 0.73x 0.82x 0.69x 0.67x 0.64x 0.63x 0.61x
Financial Leverage 2.04x 1.79x 1.90x 1.76x 1.73x 1.70x 1.68x 1.66x
Interest Coverage 2.40x 3.16x 3.37x 3.73x 3.82x 3.93x 3.96x 4.00x
Debt Service Coverage
(3)
3.62x 4.57x 4.87x 5.39x 5.52x 5.65x 5.71x 5.77x
Shareholder Ratios
FFO per Share $3.14 $3.72 $3.96 $4.36 $4.67 $4.95 $5.12 $5.27
Dividend Payout Ratio (1)
57.3% 54.0% 67.1% 64.8% 64.5% 64.2% 64.0% 63.9%
(1) Payout Ratio against Funds from Operations
(2) Total Revenue / Accounts Receivable
(3) NOI / Interest Expense

Company Overview
Industry &
Competitive
Positioning
Business Description
1982
Founded
1985
Establishment of Uncle
Bob’s Self Storage
1995
IPO on NYSE as a REIT
2014
Sovran Acquires
500th Property
1999
Flex-a-Space System
Introduced
2011
Introduced Solar Panel
to Self-Storage Units
Appendix

Industry &
Competitive
Positioning
Lack of Independence on Board
Board Member Career Background
Principal of Stampeed Capital LLC. Provides Real Estate
Consulting Support
Arthur L. Havener
Mark G. Barberio Principal of Markapital, LLC, an M&A Consulting Firm
Independent Directors Appointed on January 21, 2015
Board Member Independent Tenure (Yrs)
Robert J. Atta No 20
Kenneth F Myszka No 20
Anthony P. Gammie (1)
Yes 20
Charles E. Lannon (1)
Yes 20
Stephen R. Rusmisel Yes 3
(1) Limited Independence
Appendix

Industry &
Competitive
Positioning
Competitive Positioning Appendix
Competiting Positioning SSS EXR CUBE PSA
Market Capitalization $3.12B $7.71B $3.82B $34.03B
Number of Properties 521 1088 595 2,250
Number of Square Feet 35,500,000 80,400,000 40,420,000 146,000,000
Occupancy Rates 88.50% 90.50% 89.10% 93.50%
Number of Acquisitions 33 51 52 44
Third Party Management Parnerships 23 260 140 42
Number of Joint Ventures 55 271 34 187
Revenue $326.1M $657.1M $370.7M $2283.7M
NOI $168.0M $404.1M $202.1M $1601.0M
As of December 31, 2014

Conclusion
Management
Executive Title Career with Sovran
Robert J. Atta, 72 Director, Chairman and Co-Founder 33 yrs.
David L. Rogers, 58 CEO and Co-Founder 33 yrs.
Kenneth F. Myszka, 65 President, COO and Co-Founder 33 yrs.
Andrew J. Gregoire, 46 CFO and Secretary 17 yrs.
Edward F. Killeen, 50 Executive VP: Real Estate Mgmt. 18 yrs.
Paul T. Powell, 58 Executive VP: Real Estate Inv. 18 yrs.
Appendix
 Experienced Management Team averaging more than 25
years experience
 Successful navigation through multiple economic cycles

Conclusion
Insider Holdings
Appendix
Name Position
Market Value
(02/10/2015)
% of
Shares
Robert J. Attea 231,029 21,788,345$ 0.68%
Kenneth F. Myszka 223,476 21,076,022$ 0.66%
David L. Rogers 149,676 14,115,944$ 0.46%
Charles E. Lannon 114,239 10,773,880$ 0.34%
Andrew J. Gregoire 42,061 3,966,773$ 0.12%
Paul T. Powell 40,984 3,865,201$ 0.12%
Edward F. Killeen 34,632 3,266,144$ 0.10%
Anthony P. Gammie 18,953 1,787,457$ 0.06%
Stephen R. Rusmisel 2,027 191,166$ 0.01%
Total 857,077 80,830,932$ 2.55%

Conclusion
UPREIT Structure Appendix
 Transaction can be completed on a tax differed basis – receives units
in the operating partnership
 Enables the property owner to convert an interest in one or more
specific properties into an interest in a larger and more balanced
portfolio of properties held by the UPREIT

Conclusion
Sovran Ownership Structure
Appendix

Conclusion
SWOT
Appendix
Strengths:
 Brand Awareness
 Management
 Economies of Scale
Weaknesses:
 40% of earnings driven from 2 states
Threats:
 Threat to pricing power through easier
information aggregation
Opportunities:
 Fragmented Markets
 Ancillary Revenue Expansion

Conclusion
Interest Rates
Appendix

Conclusion
Cap Rates and BBB Corp. Bond Yield Spread History
Appendix

Conclusion
FED Dot Plot – March 2015 Appendix

Conclusion
Saturation Levels by State Appendix
State
Number of
Facilities
Area in Square
Feet
2012
Population
Rentable Square
Footage Per Person
Alabama 1,042 49,807,600 4,842,196 10.29
Alaska 135 6,453,000 732,814 8.81
Arizona 883 42,207,400 6,523,478 6.47
Arkansas 821 39,243,800 2,960,196 13.26
California 4,013 191,821,400 37,707,477 5.09
Colorado 986 47,130,800 5,160,251 9.13
Connecticut 333 15,917,400 3,583,388 4.44
Delaware 128 6,118,400 910,061 6.72
District of Columbia 18 860,400 617,405 1.39
Florida 2,721 130,063,800 19,016,069 6.84
Georgia 1,633 78,057,400 9,858,142 7.92
Hawaii 101 4,827,800 1,376,600 3.51
Idaho 454 21,701,200 1,605,314 13.52
Illinois 1,592 76,097,600 12,931,174 5.88
Indiana 1,178 56,308,400 6,539,197 8.61
Iowa 548 26,194,400 3,085,316 8.49
Kansas 653 31,213,400 2,889,867 10.8
Kentucky 632 30,209,600 4,390,111 6.88
Louisiana 954 45,601,200 4,628,363 9.85
Maine 309 14,770,200 1,339,870 11.02
Maryland 528 25,238,400 5,838,730 4.32
Massachusetts 554 26,481,200 6,606,895 4.01
Michigan 1611 77,005,800 9,887,588 7.79
Minnesota 861 41,155,800 5,371,280 7.66
Mississippi 648 30,974,400 3,002,948 10.31
Missouri 1,311 62,665,800 6,054,543 10.35
Montana 443 21,175,400 1,009,397 20.98
Nebraska 368 17,590,400 1,856,412 9.48
State
Number of
Facilities
Area in Square
Feet
2012
Population
Rentable Square
Footage Per Person
Nevada 450 21,510,000 2,757,217 7.8
New Hampshire 257 12,284,600 1,326,680 9.26
NewJersey 714 34,129,200 8,830,455 3.86
New Mexico 509 24,330,200 2,104,755 11.56
NewYork 1403 67,063,400 19,532,811 3.43
North Carolina 1890 90,342,000 9,759,332 9.26
North Dakota 138 6,596,400 692,887 9.52
Ohio 1853 88,573,400 11,590,198 7.64
Oklahoma 971 46,413,800 3,811,191 12.18
Oregon 777 37,140,600 3,899,159 9.53
Pennsylvania 1,629 77,866,200 12,807,296 6.08
Rhode Island 102 4,875,600 1,049,634 4.65
South Carolina 852 40,725,600 4,739,840 8.59
South Dakota 204 9,751,200 834,517 11.68
Tennessee 1,295 61,901,000 6,451,693 9.59
Texas 4735 226,333,000 25,906,038 8.74
Utah 560 26,768,000 2,855,070 9.38
Vermont 165 7,887,000 632,877 12.46
Virginia 1086 51,910,800 8,142,122 6.38
Washington 1339 64,004,200 6,878,781 9.3
West Virginia 335 16,013,000 1,875,033 8.54
Wisconsin 1220 58,316,000 5,745,625 10.15
Wyoming 209 9,990,200 580,724 17.2
Total: 48151 2,301,617,800 313,129,017 7.35

Conclusion
Self Storage Facility Growth Appendix
Year Facilities
Annual
Growth Annual %
2015E 52,754 678 1.30%
2014E 52,076 668 1.30%
2013E 51,408 684 1.35%
2012 50,724 676 1.35%
2011 50,048 692 1.40%
2010 49,356 635 1.30%
2009 48,721 1,207 2.54%
2008 47,514 2,540 5.65%
2007 44,974 2,007 4.67%
2006 42,967 1,845 4.49%
2005 41,122 2,305 5.94%

Conclusion
Beta Analysis
Beta Analysis SSS CUBE EXR PSA
5Y Monthly Beta S&P 0.84 1.07 0.95 0.77
R-Squared 0.24 0.31 0.32 0.32
Standard Error 0.194 0.211 0.182 0.148
5Y Monthly Beta RMZ 0.98 1.19 1.03 0.92
R-Squared 0.57 0.64 0.63 0.77
Standard Error 0.113 0.117 0.104 0.067
3Y Weekly Beta S&P 0.90 0.87 0.88 0.75
R-Squared 0.25 0.25 0.27 0.27
Standard Error 0.125 0.124 0.117 0.099
3Y Weekly Beta RMZ 1.00 0.89 1.00 0.89
R-Squared 0.53 0.43 0.59 0.65
Standard Error 0.076 0.082 0.067 0.053
Average of S&P 500
5Y & 3Y Betas 0.87 0.97 0.92 0.76
Average of RMZ
5Y & 3Y Betas 0.99 1.04 1.01 0.91
Appendix

Conclusion
Treasury Stock Method Diluted Shares Out.
Appendix
Diluted Shares Outstanding - Treasury Stock Method
Assumptions
Current Share Price (04/02/2015) $93.95
Basic Shares Outstanding (As of 10/31/2014 via Q3 2014 10-Q) 34,105,955
In-the-Money Options (As of 12/31/2014)
2005 Award and Option Plan 82,606
2009 Outside Directors' Stock Option and Award Plan 29,000
1995 Outside Directors' Stock Option Plan 4,000
Stock Based Compensation Stock Options Oustanding 115,606
Weighted Average Exercise Price
2005 Award and Option Plan $45.75
2009 Outside Directors' Stock Option and Award Plan $56.31
1995 Outside Directors' Stock Option Plan $49.65
Stock Based Compensation Stock Options Oustanding $48.54
Options Proceeds
2005 Award and Option Plan $3,779,225
2009 Outside Directors' Stock Option and Award Plan $1,632,990
1995 Outside Directors' Stock Option Plan $198,600
Stock Based Compensation Stock Options Oustanding $5,611,515
Total Options Proceeds $11,222,330
Shares Repurchased from Options Proceeds 119,450
Shares from In-the-Money Options 231,212
Less: Shares Repurchased from Options Proceeds (119,450)
Net New shares from Options 111,762
Plus: Basic Shares Outstanding 34,105,955
Fully Diluted Shares Outstanding 34,217,717

Conclusion
Economic Value Added
Economic Value Added
EVA=NOI-Opportunity Cost; Opportunity Cost=WACC*Capital; ROI=NOI/Capital
FYE 2009 2010 2011 2012 2013
NOI $121.20 $115.77 $126.28 $153.48 $183.16
WACC (1)
8.42% 8.42% 8.42% 8.42% 8.42%
Total Capital 1,129.70 1,131.06 1,291.71 1,428.69 1,504.49
Opportunity Cost $95.12 $95.24 $108.76 $120.30 $126.68
EVA $26.08 $20.53 $17.51 $33.18 $56.48
ROI 10.73% 10.24% 9.78% 10.74% 12.17%
Total Capital
Total IBD 492.70 499.48 636.17 699.96 633.78
Total SE 637.00 631.58 655.54 728.73 870.71
Total $1,129.7 $1,131.1 $1,291.7 $1,428.7 $1,504.5
(1) Derived from first two years of SSS's two-tired WACC calculation
Appendix

Conclusion
State 2011 2012 2013 2014
Texas 112 114 117 133
Florida 59 67 68 72
New York 28 28 34 35
Georgia 24 29 30 30
New Jersey 22 22 21 29
Ohio 23 24 23 23
Alabama 25 24 22 22
North Carolina 18 20 25 20
Virginia 19 20 19 19
Louisiana 14 15 16 17
Mississippi 14 15 15 15
Missouri 8 8 8 15
Illinois 0 10 10 13
Massachusetts 12 12 13 13
Arizona 9 10 10 10
Pennsylvania 7 7 7 9
Connecticut 5 5 8 8
South Carolina 8 8 8 8
Colorado 4 4 5 5
Tennessee 4 4 4 5
Maine 2 2 2 4
New Hampshire 4 4 4 4
Rhode Island 4 4 4 4
Maryland 4 3 3 3
Kentucky 2 2 2 2
Michigan 4 0 0 0
Totals 435 461 478 518
Properties Appendix
State 2014
Texas 16
New Jersey 8
Missouri 7
Florida 4
Illinois 3
Pennsylvania 2
Maine 2
Louisiana 1
Tennessee 1
New York 1
Totals
(1)
45
(1) Divested 5 North Carolina
Poperties in 2014

Conclusion
Industry Overview
Appendix
23.0
24.0
25.0
26.0
27.0
28.0
29.0
30.0
First Marriage by Age
Men
Women

Conclusion
Debt Schedule and SWAPS
2020 Term Note Fixed by Following SWAP Agreements
Amount Effective Date Expiration Date Fixed Rate
125,000,000$ Sept. - 1 - 2011 Aug. - 1 -2018 2.3700%
100,000,000$ Dec - 30 - 2011 Dec. 29 - 2017 1.6125%
100,000,000$ Sept. - 4 - 2013 Sept. - 4 - 2018 1.3710%
125,000,000$ Dec. 29 - 2017 Nov. - 29 - 2019 3.9680%
100,000,000$ Aug. - 1 -2018 Jun. - 1 - 2020 4.1930%
Appendix
Description Principal Due (USD)
Coupon/
Base
Rate Floating Rate Maturity Secured Other
2016 Term Note 150,000,000$ 6.38% - Apr -13-2016 No
Interest Rate Increases to 8.13%
if Credit Rating Downgraded.
*2020 Term Note 325,000,000$ - LIBOR + 1.4 Jun - 4 - 2020 No Facility Fee of 0.20
2021 Term Note 100,000,000$ 5.54% - Aug - 5- 2021 No
Interest Rate Increases to 7.29%
if Credit Rating Downgraded
2024 Term Note 175,000,000$ 4.53% - Apr - 8 - 2014 No
Interest Rate Increases to
6.268% if Credit Rating
Downgraded
Mortgage Notes 2,160,000$ 5.99% - May - 1 - 2026 Yes
Revolving Line of
Credit
$49,000 Outstanding as of
Q4 $251,000,000 Available
on Line - LIBOR + 1.3 Dec - 10 - 2019 No Facility Fee of 0.20
*NOTE: 2020 termnot fixed via Interst Rate SWAPS

Conclusion
Revenue Growth Breakdown
Appendix
 The majority of revenue growth will be fueled by acquisitions
 Average annual occupancy rates will peak at 91%
 Ancillary Revenue will account for 10.6% of revenue in 2019.
Revenue Growth Breakdown 2015E 2016E 2017E 2018E 2019E
Increase in Occupancy Rates 1.0% 0.5% 0.5% 0.3% 0.3%
Increase in Sales per Square Ft. 6.0% 5.4% 3.8% 1.5% 1.0%
Increase in Total Square Ft. 5.8% 6.0% 4.5% 3.5% 3.0%
Rental Revenue Growth 12.8% 11.9% 8.8% 5.3% 4.3%
Ancilliary Revenue Growth 20.0% 15.0% 15.0% 12.5% 12.5%
Total Revenue Growth 13.3% 12.2% 9.3% 6.0% 5.1%

Conclusion
Long-Term Risk Free Rate
Appendix
 The risk free rate and intrinsic value are negatively correlated
 As a main factor in both the Cost of Equity and Cost of Debt, the
model is sensitive to changes in the Long-Term Risk Free Rate
 Changes in this rate do not affect our HOLD recommendation
UST 10 Year
normalized
Percentage
change in rate
Weighted
Average Intrinsic
Precentage
change in value Recommendation
Return
from Stock
2.50% 28.57% $ 99.92 -5.36% Hold 6.35%
3.00% 14.29% $ 97.41 -2.71% Hold 3.68%
3.50% 0.00% $ 94.84 0.00% Hold 0.95%
4.00% -14.29% $ 92.57 2.39% Hold -1.47%
4.50% -28.57% $ 90.29 4.80% Hold -3.90%

Conclusion
Assumed Cap Rate
Appendix
 Although this demonstrates sensitivity, our recommendation remains
constant for the majority of possible outcomes
 A significant drop in cap rate will cause property values to rise,
changing our recommendation to a BUY
 Our cap rate of 5.25% was calculated using definitions from published
industry research, company guidance, and historical trend analysis
Terminal Cap
Rate
Percentage
change in rate
Weighted
Average Intrinsic
Precentage
change in value Recommendation
Return
from Stock
5.50% -8.33% $ 103.12 -8.73% Hold 9.76%
5.75% -4.17% $ 98.84 -4.22% Hold 5.20%
6.00% 0.00% $ 94.84 0.00% Hold 0.95%
6.25% 4.17% $ 91.22 3.82% Hold -2.91%
6.50% 8.33% $ 87.95 7.26% Hold -6.39%

Conclusion
Monte Carlo Factors Appendix
Factor The Factor Effects Parameters Explanation
2015 x: 89.0% s: 1.63%
2016 x: 89.5% s: 1.63%
2017 x: 90.0% s: 1.63%
2018 x: 90.2% s: 1.63%
2019 x: 90.5% s: 1.63%
2015 x: $10.2 s: $0.62
2016 x: $10.7 s: $0.62
2017 x: $11.1 s: $0.62
2018 x: $11.3 s: $0.62
2019 x: $11.4 s: $0.62
2015 x: 5.7% s: 2.0%
2016 x: 6.0% s: 2.0%
2017 x: 4.5% s: 2.0%
2018 x: 3.5% s: 2.0%
2019 x: 3.0% s: 2.0%
x: 8.32%
s: 1.15%
x: 8.48%
s: 1.15%
x: 6.00%
s: 0.46%
This accounts for sensitivity of shifts
in industry characteristics, the largest
average occupancy rate considered is
93%
Occupancy Rate Total Revenue
This allows for sensitivity in changes
of industry supply and demand
characteristics affecting SSS’s pricing
power
Sales per square foot Total Revenue
Net Growth Rate in square
feet
Total Revenue
This increases the sensitivity of the
model by allowing year-over-year
expected total square foot changes
Terminal Capitalization
Rate
Terminal Value
We are 95% confident that the
terminal cap rate will be between
5.08% and 6.92%
1st Tier WACC Cost of Capital
This increases sensitivity to short term
changes in interest rates
2nd Tier WACC Cost of Capital
This increases sensitivity to the
forecasted long-term normalized value
of interest rates

Conclusion
Monte Carlo Buy Scenario
Appendix
53.4%46.5%.1%
SimulationData
Mean 110.06$
SD 10.60$

Conclusion
Monte Carlo Factors (Buy Scenario)
Appendix
Factor The Factor Effects Parameters Explanation
2015 x: 89.0% s: 1.63%
2016 x: 90.0% s: 1.63%
2017 x: 91.0% s: 1.63%
2018 x: 91.5% s: 1.63%
2019 x: 92.0% s: 1.63%
2015 x: $10.4 s: $0.62
2016 x: $10.9 s: $0.62
2017 x: $11.4 s: $0.62
2018 x: $11.9 s: $0.62
2019 x: $12.2 s: $0.62
2015 x: 7.0% s: 2.0%
2016 x: 6.5% s: 2.0%
2017 x: 5.5% s: 2.0%
2018 x: 4.5% s: 2.0%
2019 x: 3.5% s: 2.0%
x: 8.32%
s: 1.15%
x: 8.48%
s: 1.15%
x: 5.75%
s: 0.46%
This accounts for sensitivity of shifts in industry
characteristics, the largest average occupancy
rate considered is 93%
Sales per square foot Total Revenue
This allows for sensitivity in changes of
industry supply and demand characteristics
affecting SSS’s pricing power
Net Growth Rate in
square feet
Total Revenue
This increases the sensitivity of the model by
allowing year-over-year expected total square
foot changes
Occupancy Rate Total Revenue
Terminal Capitalization
Rate
Terminal Value
We are 95% confident that the terminal cap
rate will be between 5.08% and 6.92%
1st Tier WACC Cost of Capital
This increases sensitivity to short term changes
in interest rates
2nd Tier WACC Cost of Capital
This increases sensitivity to the forecasted long-
term normalized value of interest rates

Conclusion
Cap Rate Assumptions Appendix
Date Cap Rate 10 Year Spread
Oct-98 10.1% 4.75% 5.4%
Oct-99 10.0% 6.0% 4.0%
Oct-00 10.1% 5.8% 4.3%
Oct-01 9.3% 4.3% 5.0%
Oct-02 9.1% 3.7% 5.4%
Oct-03 7.8% 4.1% 3.7%
Oct-04 7.0% 4.2% 2.8%
Oct-05 6.6% 4.5% 2.1%
Oct-06 5.75% 4.8% 1.0%
Oct-07 6.1% 4.7% 1.4%
Oct-08 7.0% 4.1% 2.9%
Oct-09 7.6% 3.5% 4.1%
Oct-10 6.7% 2.6% 4.1%
Oct-11 6.9% 2.2% 4.7%
Oct-12 6.2% 1.9% 4.3%
Oct-13 6.2% 2.7% 3.5%
Oct-14 6.1% 2.6% 3.5%
Dec-14 5.7% 2.1% 3.6%
Historical Spread Less Outliers
3.7%
2.8%
2.1%
4.1%
4.1%
4.7%
4.3%
3.5%
3.5%
Avg 3.0%
Terminal 10 Yr - 3.0% 6.0%

Industry &
Competitive
Positioning
Relative Valuation
Appendix
EV to EBITDA Valuation ($ in Millions)
Mean EV / EBITDA Multiple 24.4x
LTM EBITDA $170.2
Enterprise Value $4,156.7
Less: Debt $762.6
Less: Minority Interest $12.9
Equity Value $3,381.1
Fully Diluted Shares Outstanding 34.2M
Intrinsic Value per Share $98.81
Current Trading Price (04-02-2015) $93.95
Premium (Discount) to Valuation 5.2%
Price to FFO / Share Valuation ($ in Millions)
Mean P / FFO Figure 24.3x
LTM FFO / Share $4.0
Equity Value $97.13
Current Trading Price (04-02-2015) $93.95
Premium (Discount) to Valuation 3.4%

Industry &
Competitive
Positioning
Multiples
Appendix
Company
Ent. Val.
(M)
EV /
EBITDA P / FFO
EV /
Rev
Debt /
EBITDA
Price /
NOI
P / Tang
BV
Dividend
Yield
SSS $3,957.4 23.3x 23.5x 14.5x 4.8x 22.1x 3.3x 3.3%
CUBE $5,077.5 25.1x 22.9x 13.7x 5.8x 21.6x 3.0x 2.7%
EXR $10,266.4 25.4x 26.3x 15.6x 5.9x 24.0x 4.4x 3.0%
PSA $38,284.7 23.9x 24.5x 16.8x 2.7x 25.0x 7.1x 2.8%
Mean 24.4x 24.3x 15.1x 4.8x 23.2x 4.5x 3.0%
Median 24.5x 24.0x 15.0x 5.3x 23.0x 3.9x 2.9%

Conclusion
Company FFO Calculations
SOVRAN Calculation of FFO Nine Months Ended
9/30/2014
Net Income attributable to common shareholders 62,838$
Net Income attributable to noncontrolling interest 381
Depreciation ofrealestate and amortization ofintangible assets 37,097
Depreciation ofrealestate included in discontinued operations -
Depreciation and amortization fromunconsolidated joint ventures 1,166
(Gain) on sale ofrealestate (1,777)
Funds fromOperations allocable to noncontrolling redeemable
Operating Partnership Units (601)
FFO available to common shareholders 99,104$
 SSS and EXR use NAREIT definition of FFO
 PSA does not include operating partnership units in calculation.
Prefers using their own “Core FFO” Calculation
 CUBE does not use NAREIT Definition
Appendix

Conclusion
Premium on BUY Assumption Defense Appendix
SSS CUBE EXR
Standard Deviation 2 Years Ago 19.24% 20.32% 18.35%
Standard Deviation Last Full Year 15.59% 17.07% 15.45%
PSA GSPC RMZ
Standard Deviation 2 Years Ago 15.29% 11.59% 18.50%
Standard Deviation Last Full Year 12.89% 11.60% 20.68%

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