A Wise Investment “It’s the results”

1. A Wise Investment“It’s the results”

2. Who We Are • Portfolio headquartered in Grayson, KY. • Parent company portfolio size - 17 stores (YE2009) • Major markets served • Columbus, OH • Cincinnati, OH • Lexington, KY • Louisville, KY • 26 years experience • Development & Management

3. What We’ve Discovered • Management tools • SiteLink Web Edition • Contact Center • Web hosting and Internet Search Optimization <to improve position on the web> • People Systems • Objective performance measurement • Incentive based pay • Measure results, make adjustments and re-measure • Audit, call management, data management

4. Management Tools • Site management system • No longer on premise to determine site performance • Dynamic ability to manage rates • Reporting • Length of stay • Economic vs. Physical Occupancy • Payment processing • Contact call center • Captured >20,000 ‘missed’ calls • 17.1% prospective tenants – 26% move-in • Payment processing • Web hosting and Search Engine Optimization • 1,900 / month unique visits • SASTORAGE.COM – top 3 positions

5. People Systems • Average length of employment – 5 years • 2 person management teams with a relief manager • 40 / 30 hour employee combination. • Key personnel on Saturday • Structured hiring process • Locating good candidates • Multi-stage interview • Background checks • Orientation and training • Performance Measurement • Weighted objective measurement looked at monthly, conducted quarterly

6. Markets and Marketing Markets Marketing & Advertising • Market Trends • Demographics • Appearance • Competitive Features • Market Pricing • Distribution of Units • Occupancy Rates • Specials and Incentives • Employee Evaluation • Competitive Analysis • New Construction • Price Setting • Customer Specials and Incentives • Internet (G5, eMove, Sparefoot) • Yellow Pages • Monthly Newsletters • Direct Mail • Referral Programs (50/50) • Target Marketing • Office Presentation • Store Visibility • Curb Appeal • Telemarketing (?) • Direct Sales • Business Networks • Cold calling

7. People Systems - Benefits • Starting Salary - $ per month • Bonus (see next slide) • Paid time off • Vacation – 1 week, 2 weeks each additional year thereafter • Sick days – 3 • Gas Allowance - $50.00 per team per month • Health Insurance • Company pays 50% for full-time employees • On site housing where applicable • Utilities, washer dryer, • Sam’s Club • 1 complimentary unit (10 x 15 NCC) Rev. 1a - Aug. 18, 2010

8. People Systems - Compensation • Base pay • Incentives • Income (base bonus) • 10% OVER prior year same quarter • Move-in • $25.00 for every lease written OVER the 3-year average • Occupancy • 5% sq ft increase of net rentable - quarterly $1,000 bonus • Economic • Rent collected each month current quarter vs. actual occupied potential rates – quarterly • Shelved units • $25.00 for each shelved unit (15% premium!) Rev. 1a - Aug. 18, 2010

9. People Systems - Growth • Incentive base pay • Increase economic and physical occupancy, lower delinquency, higher community involvement, greater conversion rate. • Existing self storage experience not necessary to grow business • On-going coaching and retraining • Objective 3rd party involvement Rev. 1a - Aug. 18, 2010

10. Results Rev. 1a - Aug. 18, 2010

11. Results Performance Based Incentives Enacted

12. Measure Results, Make Adjustments and Re-measure • Invest in that which is measurable • Contact call center • Recorded calls • Payment processing • Yellow page • Cost of lease by city • Web hosting / SEO • Web leads • Top positions with Google, Yahoo in organic search • Newsletters • No. of opens, no. of click-thrus • Phone calls <captured by store> • Tracking numbers • Pay-per-click • Web campaigns Rev. 1a - Aug. 18, 2010

13. Marketing Trends – Tracking Internet vs. Yellow Pages Rev. 1a - Aug. 18, 2010

14. Tenant Sources: How They Found Us Rev. 1a - Aug. 18, 2010

15. Average Length of Stay

16. Call Management

17. Marketing Analytics • Electronic Newsletters • 14% open rate • Unique visits to website – 1,900 hits per month • Reduced Yellow Page cost by x% • 2 to 1 inquiries over the web vs. Y.P. • Trend is web leads increasing by x% per month

18. Collections (We Care) • Proactive to mitigate legal risks • Gen 2 ‘We Care’ Proprietary Collection Process • 86% collected (pre-auction/our system) VS. 19% collected (if they actually go to auction) • Stage 1 : Pre Lock Cut - Payment plan, reduced amount to pay (take off late fees and other charges) and vacate (up to a 75% Reduction) • Stage 2 : Post Lock – payment plan which includes payment plan, 75% one time fee to get caught up, 50% reduction in bill if vacate in 24 hours • Stage 3 – Contingency bid on day of auction

19. Expectations of Gen 2 • Yearly • We will conduct and report on 3rd party Audit • Complete breakdown of expenses • 12-month occupancy ranges • Full analysis of rates to determine rate increase • Full analysis of competition and market rates • Management teams performance evaluations along with any compensations recommendations • Forecasted upcoming year budget by Nov. 1 • Quarterly • Audits with executive summaries. • One meeting between to discuss store progress • Reports that show occupancy standings, move in/move out reports, management summaries and store level activity • Breakdown of any additional expenses

20. Unlike other management companies… You keep (*) The accounting Your own mortgage payments Your own web site BUT linked to ours to improve SEO (*) You can assign certain functions under a separate Asset Management Agreement Lastly, we analyze all business data points so that it’s tuned into the changing demographics and the needs of the owners

21. Investment • By Gen 2 • Branding option • Policies and procedures - $3,000 • Full 3rd party audit - $1,500 • Manager’s training manual - $1,500 • By Owner • 6% or $2,500 per month • Management software conversion - $2,000 / one time • SiteLink web edition - $2,160 / annually • Contact center - $300 / month (488 additional hours @.62 cents!) • Web hosting / SEO - $360 / month

22. 10 Reasons Why You Want Us... You no longer have to worry about; • People – Hiring, theft, firing, covering, training, coaching • Site reviews / audits – Boring, repetitious, needed • Meetings, meetings, meetings, travel, travel, travel • Internet Presence---having to deal with all the nuances in today’s market • We have the vendors and service providers • Lock cuts / sales • Facility Maintenance - roof leaks, cleaning gutters, driveway repairs, arranging for blacktop, doors, HVAC, power outages, etc. • Revenue management - remixing units, prices, competitive market analysis • Reports and watching the details • Payment processing, payroll, check writing, taxes (withholding, payroll, city, state, federal, sales, workers comp., FICA, etc.)

23. Conversion Process Agreements > Property Management - Asset Management - Final Budget - 3 Months working capital Full site audit > Facility Inspection – Unit Status Inventory and Reconciliation – Rate Variations – Review Bank Deposits Tenant data conversion > From existing site management system to SiteLink web edition Orientation & training > Policy and Procedures - 60 hours Operational changes > Lease conversion – Market analysis – Rate Adjustment – Site performance measures Marketing strategies > Website enhancement - Search Optimization - Call Center - Other Branding ?