Business Context and Reporting Period
This Form 8-K is filed by U-Store-It Trust (doing business as CubeSmart) on March 7, 2006. The report provides supplemental details regarding the 2006 executive bonus structure previously disclosed in a December 23, 2005 filing.
Key Financial Metrics and Bonus Targets
The filing outlines specific performance metrics tied to executive compensation rather than reporting actual financial results for a period. The 2006 bonus structure is weighted 70% on Funds From Operations (FFO) goals and 30% on acquisitions growth.
| Measure | Threshold | Target | Maximum | Superior |
|---|---|---|---|---|
| FFO Per Share | $1.16 | $1.25 | $1.35 | $1.40 |
| Acquisitions Growth | $300 Million | $400 Million | $500 Million | $550 Million |
Acquisitions of $67 million completed in 2005 are included in the 2006 acquisition growth numbers. FFO targets will be adjusted to eliminate the effects of dilutive acquisitions, share offerings, and accounting rule changes.
Material Changes and Executive Compensation
The filing details the allocation of bonuses between corporate and individual performance for key executives:
- Robert J. Amsdell (Chairman & CEO): 80% Corporate / 20% Individual. Bonus range: 50% to 250% of annual salary.
- Steven G. Osgood (President & CFO): 80% Corporate / 20% Individual. Bonus range: 40% to 150% of annual salary.
- Todd C. Amsdell (COO): 80% Corporate / 20% Individual. Bonus range: 40% to 150% of annual salary.
- Tedd D. Towsley (VP & Treasurer): 50% Corporate / 50% Individual. Bonus range: 40% to 80% of annual salary.
Kathleen A. Weigand (Executive VP, General Counsel, and Secretary), hired after the structure was implemented, is guaranteed a minimum bonus of 40% of her annual salary for 2006.
Guidance, Outlook, and Risks
The filing does not provide general business guidance, liquidity updates, or risk factors beyond the specific compensation metrics. The primary focus is the formalization of the 2006 bonus plan.
Investor Verification Checklist
- Verify the actual 2006 FFO per share and acquisition volume against the targets of $1.25 and $400 million respectively.
- Confirm the impact of the $67 million 2005 acquisitions on the 2006 growth calculations.
- Review the final 2006 compensation paid to executives to ensure alignment with the disclosed thresholds and maximums.
- Check for any subsequent adjustments to FFO targets due to dilutive acquisitions or accounting changes as noted in the filing.