Positioning for the Future Michael T. Scanlon, Jr. President & CEO

1. Positioning for the Future Michael T. Scanlon, Jr. President & CEO

2. SSA Polling Survey: • SSA does owner-operator polling twice each year • We survey SSA members and non-members alike • We use these surveys to keep current with trends in the marketplace • We use these data to develop educational programs and convention session topics • We targeted this particular survey toward the future, in line with our Fall Convention theme of “Positioning for the Future” • This particular survey was conducted August 4, 2011 • Surveyed 400 self storage owner-operators • Margin of error is less than 5%

3. SSA Industry Survey • In what region of the country to you own / operate self storage facilities? • Northeast 17.3% • Mid-Atlantic 5.3% • South 25.3% • Midwest 31.8% • West 17.5%

4. How Long Has Your CompanyBeen in Operation? • Years in service: • Less than 5 years 7.8% • 6–10 years 24.5% • 11-15 years 20.8% • 16 or more years 43.3%

5. How Many Facilities Do YouOwn, Operate and/or Manage? • Number of facilities: • One facility 63.5% • 2-9 facilities 23.8% • 10-24 facilities 2.5% • 25 or more 9.3%

6. Physical Occupancy TrendOver Trailing 12 Months? • Occupancy: • Occupancy INCREASED 29.5% • Occupancy DECREASED 18.5% • Stayed the same 49.3% • Not Sure/Refused/Other 2.8% • NOTES: 41.1% of those with 2-9 facilities showed an increase; 40% of those with 10-24 facilities also showed an increase.

7. Have You Raised Rents on ExistingTenants in Previous 6 Months? • Raised Rents? • NO 83.5% • Yes, less than 2% 3.8% • Yes, 2% to 5% 7.5% • Yes, greater than 5% 2.8% • Not sure/Refused/Other 2.6% • NOTES: 85.8% of those with 1 facility did not increase rents; 20% of those with 10-24 facilities DID increase rents by 2-5%

8. Growth via Acquisition, Development or 3rd Party Management? • In the next 10 years, how many facilities do you think you will add to your current total (via 3rd party management, acquisition or development)? • Will not add any more 68.0% • Will own/operate FEWER 1.0% • Will add 1-4 more facilities 11.5% • Will add 5-10 more facilities 0.5% • Will add more than 10 facilities 2.3% • NOTES: 22.1% of those with 2-9 facilities will add 1-4 facilities; 8.7% of those with 1 facility will add 1-4 facilities in the next 10 years

9. Development • Do you plan to develop a new ground-up facility in the next 24 months? • YES 5.5% • NO 85.3% • Unsure/Other 9.3% • NOTE: 6.3% of those with 2-9 facilities plan a ground-up development in the next two years.

10. Expansion • Do you plan to expand a current facility in the next 24 months? • YES 15.3% • NO 73.5% • Unsure/Other 11.3% • NOTE: 24.2% of those with 2-9 facilities plan to expand a facility in the next two years.

11. Acquisition • Do you plan to acquire an additional facility in the next 24 months? • YES 7.3% • NO 80.5% • Unsure/Other 12.3% • NOTES: 16.2% of those firms with 25 or more facilities plan to acquire in the next 24 months; 10.5% of those with 2-9 facilities will do the same.

12. Third Party Management • Is/are your facility(ies) currently managed by a third party? • YES 5.0% • NO 87.3% • Unsure/Other 5.3% • NOTES: Only 3.1% of 1 facility owners use a 3rd party management firm; 7.4% of 2-9 facilities owners do.

13. Future 3rd Party Management • In the next 10 years do you think you might have another company (3rd party) manage one or more of your current facilities? • YES 3.3% • NO 78.3% • Unsure/Other 13.5%

14. Yellow Pages vs. Internet/Web site • What percentage of your new customers come to you via the Yellow Pages vs. the Internet / Web site? • Yellow Pages Internet/Web • Less than 10% 35.8% 41.8% • 10-20% 10.3% 12.8% • 21-40% 10.0% 12.0% • 41-60% 12.5% 7.3% • 61-80% 4.0% 3.5% • More than 80% 3.8% 2.3% • Unsure/Other 23.8% 20.5%

15. Social Networking • Which of the following social networks do you use to promote your business? • Google 51.1% • Facebook 25.3% • YouTube 3.8% • Linked-In 7.1% • Twitter 8.2% • MySpace 4.4% • NOTE: Smaller firms tend to use Google more than larger firms.

16. Social Networking Budgets • How much of your total marketing budget do you spend/expect to spend on social networking today vs. 10 years from now? • Today In 10 years • Less than 10% 71.3% 53.0% • 10-25% 3.8% 6.8% • 26-50% 1.3% 2.5% • 51-75% 0.5% 2.0% • 76-100% 0.3% 0.5%

17. Size of the Entire Industry • In the future do you expect that the self storage industry will: • Contract in size/be smaller 7.3% • Be about the same size 29.8% • Will grow by 10% in 10 years 38.0% • Will grow 20% or more in 10 years 10.3% • Unsure/other 14.8%

18. Debt • Are you currently re-financing debt? • YES 5.8% • NO 80.0% • Unsure/Other 14.3% • NOTES: 5.1% of 1 facility firms are in a re-fi; 9.5% of 2-9 facility firms are in a re-fi.

19. Extended / Modified a Loan? • Have you extended or modified an existing loan in the past 12 months? • NO 73.0% • YES, modified 8.8% • YES, extended 1.8% • Unsure/Other 16.6% • NOTE: Roughly 18% of firms with 2-9 facilities are modifying or extending a loan.

20. Raising Capital/Equity? • Are you actively raising third-party capital or equity for new acquisition? • YES 4.3% • NO 77.0% • Unsure/Other 18.8% • NOTES: 2.8% of one facility firms are raising funds; 9.5% of 2-9 facility firm are too.

21. Business Attitude • Which of the following statements best describes your business attitude? • Very positive about the future of my business 54.0% • Somewhat positive 28.5% • Not sure about the future of my business 10.8% • Somewhat negative 2.0% • Very negative about the future 1.0% • Unsure/Other 3.8% NOTE: The above percentages are consistent no matter the size of the company.

22. Thank You. • You can download these slides from the SSA Web site upon your return home. Go to: www.selfstorage.org Right hand column under “Public Information”