eKourier Jan 2021

Kennards Kourierer EDITION: JAN 2021

ACHIEVEEMBER, A MONTH TO REMEMBER

STATE OF THE INDUSTRY

BLUE LEADERSHIP

KSS TAKES GOLD TIER SUPPORT... I ...

WEBSITE REIMAGINED

David Thompson, CEO Hockey NSW with Sam Kennard,CEO Kennards Self Storage

1 Kennards Kourier Jan 2021

IN THIS ISSUE

Message From Sam 10 Questions With... 4 Team Member Profiles 5/6 Website Reimagined 7 KSS Takes Gold Tier Sponsorship 8 Southport, A Great Place To Invest 9 Achieveember... 15 Napier Flood 16 Payments To KSS... 17 Spotlight On... 18 Property Download 19 Blue Leadership 20 Never Underestimate The Value... 21 Nevs Notes 22 Kennards Community 23 3 State Of The Industry Christmas Celebrations

10/11/12

13/14

NEXT ISSUE

Deadline: March 12, 2021 Editor: Sharon Munro Email: sharon@kss.com.au Distribution: April 16, 2021

Kennards Self Storage Southport QLD

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MESSAGE FROM SAM

to take Taiwan. Virtual cultural genocide of the minority Uyghurs in the north is happening in our lifetime. These are some of the issues that have troubled me and even been dinner table conversations in our home but we have just felt helpless. It’s obvious the Chinese administration has little congruence with our values and ethics. When the Chinese government lashed out like a spoilt toddler and just childishly sought to hurt us, it dawned on me and the Leadership Team to question why we trade with them. How is it ethical for us to trade with China? Why should KSS buy our products from such a hostile supplier? Why not look around? For any business it is an inherent risk to be dependent on any one supplier or customer - that issue would hold a strong place in any SWOT analysis. A country should be equally cautious and work towards lessened dependence. Though Australia has gained a great deal from China’s attraction to us - minerals, food, education, tourism, wine, property - not to mention their strength in manufacturing low cost goods has benefited Australian (and NZ) consumers, we should not rely on them. One of the rules of friendship I once heard is that genuine friends are those people that only want the best for you. They are people who genuinely want to see you prosper, succeed and thrive. On that measure, it is clear now we could never consider China to be a real friend of Australia. So the decision to seek non-Chinese products is not mindless retaliation. It is an ethical decision to disengage with a country that demonstrates the antithesis of our values and also to secure a more robust and trustworthy trading relationship. So, we have made the decision to look for alternatives. Our Chinese made product suppliers know of our intentions and, pleasingly, are looking to help.

T he recent media I earned with my modest announcement about now preferring non-Chinese made products earned me some surprising media attention and public support. It found me on 2GB, 3AW, news.com.au, The Courier Mail, The Australian, The Daily Mail and other overseas publications plus a couple of Sky News segments. Quite unusually, particularly for Twitter, the feedback from my comments were almost exclusively supportive and positive. My remarks seemingly made Twitter light up. The Chinese Communist Party government has been escalating trade disputes with Australia and inflicting significant harm on various industry sectors through 2020. This is hurting

businesses, employees and their families. For some years they have also demonstrated a frightening and hostile approach to civil liberties, oppressing their citizens and belligerence towards their neighbours. I received a range of public and private social media replies, text messages and emails of support from here and all over the world. It is clear that China is a triggering issue for many people. In China, the incarceration of citizens without trial is quite common. There is excessive control and surveillance of Chinese citizens. We experience Chinese state driven cyber attacks on our government and private organisa- tions. In Hong Kong, the freedom of these people is being stolen before our eyes, while China also hold ambitions

Sam Kennard Chief Executive Officer

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WHO’S WHO

10 QUESTIONS... With Boris Hoth - Team Support Manager S.A.

a combination of Victorian and NSW destinations. One day, when our girls are out of home, Kylie and I plan to move somewhere away from the city where back country snow is accessible in the winter months. Your favourite holiday destination or place on your bucket list to visit? Winter trips to Europe are always fun. Recently (pre Covid) Kylie and I drove from Amsterdam down to Slovenia. We visited many mountains in Austria and Slovenia and really fell in love with this neck of the woods. Once the world re opens we plan to take our girls with us and spend a Christmas over there. Here in Oz I love visiting Tasmania. Hiking, Bodyboarding and sometimes even a Snow Hike. Tassie is a strong front runner as a retirement destina- tion also. Do you have a Favourite Food? Savoury - good quality Indian food is pretty rad, and for sweet - can't go past Kylie’s Key Lime Pie. Name a person that has inspired you? Mike Stewart, Professional Bodyboarder. When I was 10 (1991) I discovered Bodyboarding. Mike Stewart was already World Champ seven times by then. Today in his mid 50's he is keeping up with the new blood and still inspires me to hit the water just like in my teen years. To sum up Kennards in one word would be? Evolving.

Above: Kylie, Boris, Lucy and Lilyan.

to work with a wide variety of personali- ties and learn to adapt to each other. On the other hand, it also offers the opportu- nity to work independently, being put in situations where we make decisions, and take calculated risks. It is satisfying when the decision was the right one. Some changes I have seen in my time are; going from three to seven centres here in S.A. (Not to mention many new centres nationwide), system changes like Digital Agreements/ATLAS and a refreshing new approach to Skillbuilder courses. Tell us about your family? My family life consists of my beautiful partner Kylie and our gorgeous girls, Lilyan 16 and Lucy 8. Together we have a great laugh, usually at my expense… Also, we have three cats that I inherited upon moving in with Kylie, I am not usually a cat person but Jemima, Spooky and Charlie are starting (it has been five years) to grow on me. What do you like to do in your down time? Time away from work consists of Skateboarding, Gardening and Bodyboarding trips over to Yorke Peninsula. In the winter months I aim to spend at least two to three weeks in the Aussie ski fields Snowboarding at

How long ago did you join the Kennards Team and what is your role? I joined KSS five years ago and I am currently in the TSM role here in S.A. What did you do before joining the Kennards Team? Previously I was a Store Manager for the Romeo Retail Group managing stores here in the Adelaide Hills and Inner Southern Suburbs. Prior to this I was a Long-life Manager for Woolworths. All up about 19 years in the retail game. Tell us what you enjoy about working at Kennards Self Storage? Coming to KSS improved my work and home life. My previous job came with many challenges, some of which were difficult to control. I feel that KSS is about realistic outcomes and as a Team, we strive to increase productivity while maintaining a work life balance. It is great to be a part of a Team where attainable goal setting combined with hard work and perseverance lead to a sense of achievement and job satisfaction. What has inspired you the most about Kennards and what major changes have you seen during your time here? KSS allows us to work autonomously and collaboratively. We get the opportunity

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WHO’S WHO

Above L to R: Augustus Jayasena (AJ), Sean Bradley, Jeff Xanthos, Jesse Dux, Juan Moran, Conor Kennedy

Sean Bradley ICT Manager Jeff Xanthos Chief Information Officer TEAM MEMBER PROFILES - INFORMATION TECHNOLOGY

Career background: I have over 25 years experience in I.T, in a wide variety of industries, with over 10 years in management. I enjoy the challenges of working with technology and enjoy being able to help people.

Career background: Discovered the relationship between 'information' and 'systems' and what could be done with it through storage. With a general passion for understanding how things work that led to a career in Technology. Formerly of Millers Storage, I made the cut in 2004 and the rest is history.

Marital status? Single.

Marital status? I am married.

Any children? I have two boys, Nicholas and Alex. Nicholas recently qualified as a Scuba Diver and Alex loves dogs!

Any children? Two girls, Kayla (14) and Georgia (12). Both very artistic and look a lot like their dad.

Hobbies/interests: I have many interests and not enough time for them all. At the moment I’ve been enjoying tinkering with the Virtual Pinball Machine that a friend and I built.

Hobbies/interests: Spending time with family, cooking anything on charcoal and following the mighty Bulldogs.

Do you play any sport or have any special talents? I enjoy Snowboarding, Scuba Diving, Motorcycling and other pursuits.

Do you play any sport or have any special talents? Not so much these days, I'm pretty good with my hands and somewhat of a weekend warrior.

Favourite book: The Evergence Trilogy, by Australian Authors Sean Williams and Shane Dix.

Favourite book: Start With Why by Simon Sinek.

Favourite movie: Crouching Tiger, Hidden Dragon.

Favourite movie: Gran Torino.

Favourite restaurant/food: Thai food. Yum!

Favourite restaurant/food: Anything on charcoal.

Where did you grow up? Terrigal on the Central Coast. Awesome place to grow up. I spent entire summers on the beach or Spearfishing around the Skillion.

Where did you grow up? Belmore. Multicultural and fun.

Any pets? Yep, a cat Ricky.

Any pets? I have a pet Woma python named Sammy.

Favourite holiday destinations: Greece in 84, holds fond memories as a young boy. Since then definitely a couple of days in Tassie with the family.

Favourite holiday destinations: Japan. Such a fascinating place. If you can, go during Hanami. Sakura wa kirei desu ne.

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WHO’S WHO

Juan Moran ICT Support Analyst

Conor Kennedy Desktop Support Engineer

Career background: I have worked in the I.T. industry for roughly 10 years, having worked in a Law Firm, Bank and now Storage.

Career background: Apple as Genius Admin before joining the KSS Technology Team.

Marital status? Single.

Marital status? I am married, my wife Yvonne is a super star!

Any children? No.

Any children? My daughter Valentina, she has a superpower. She makes us smile all the time.

Hobbies/interests: Playing and watching sport, exercise, watching TV series, movies, travel.

Hobbies/interests: I’m enjoying good times with Vale and Yvonne, that makes me happy.

Do you play any sport or have any special talents? Soccer, Basketball, building Gaming Computers.

Do you play any sport or have any special talents? Football for North Bridge FC, last year we won the competition, and we are now promoted to the second division.

Favourite book: Michael Jordan – The Life.

Favourite movie: Scarface, Heat.

Favourite book: A Discreet Hero by Mario Vargas Llosa.

Favourite restaurant/food: Italian, Mexican.

Favourite movie: Casino Royale 007.

Where did you grow up? West Pymble, great peaceful place to grow up.

Favourite restaurant/food: Classic BBQ with beers and friends.

Where did you grow up? Pasto (South West - Colombia) it is a small but great City in the middle of the Andes.

Any pets? Looking for a new one.

Favourite holiday destinations: Europe, Italy.

Any pets? I have a cat called Mia and a dog called Mateo.

Jesse Dux Technician

Favourite holiday destinations: Buenos Aires in Argentina.

Career background: Health Care, Health Insurance, Financial Services and Aviation mainly in I.T. and Cyber Security space. Augustus Jayasena (AJ) Infrastructure Engineer

Career background: Successfully completed a Diploma in Website Development. My role with Kennards is my first permanent full time position since finishing school and having completed various courses and my Traineeship.

Marital status? Married.

Marital status? Single.

Any children? I have two daughters, Yovelle who is a talented Basketball Player and Nayolie, she is a good singer and dancer.

Hobbies/interests: Working on my Ford Fiesta ST, Online Gaming with friends, War Hammer painting, listening to various genres of music and attending live Music Concerts.

Hobbies/interests: I like to travel with the family whenever I get free time. I love cooking especially cuisine from different cultures.

Do you play any sport or have any special talents? I have a Black Belt in JuJitsu, although I no longer train.

Do you play any sport or have any special talents? I play Badminton and Cricket when time permits.

Favourite book: Contest by Matthew Reilly.

Favourite book: Love to read books on Buddhism.

Favourite movie: The Dark Knight (2008).

Favourite movie: Ratatouille.

Favourite restaurant/food: Guzman y Gomez.

Favourite restaurant/food: Love Vietnamese Pho.

Where did you grow up? I grew up in Sydney.

Where did you grow up? I grew up in Sri Lanka in Colombo

Any pets? Not technically mine but we hang out at home; two Boarder Collies named Zayne and Toretto.

Any pets? Yes, I have a dog.

Favourite holiday destinations: I would like to visit Japan to experience their car culture.

Favourite holiday destinations: Lucerne In Switzerland and Disneyland in Tokyo.

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FEATURE

Leveraging lessons learned during our CBA usability engagement (a controlled environ- ment like a Mystery Shop but moulded for a digital experience) at the end of 2018, 2019 would see us reimagine and conceptualise a modern-day website, bringing it all together in an RFP with the intention of going to market. Armed with the goal of selecting a digital partner that understood us, valued our Brand, market position and has a proven track record in developing and delivering next generation online platforms, we set about formulating key evaluation criteria. This involved looking at many aspects of online performance, across the hospitality industry, peers overseas and bricks and clicks retailers (think Officeworks...). WEBSITE REIMAGINED, THE JOURNEY AND GO LIVE

A t the pointy end of the RFP process we arrived at a stalemate between Website Developers. We could not split them. A head to head comparison and with client interviews done, we were still deadlocked until one of them helped us make the decision (another story). First Digital were successful. Starting off as a Digital Marketing Agency (a foundation that resonated with us), First were able to demonstrate success across Digital Marketing, customer experience and technology through a single partnership - this really appealed to us. Our goals were simple and based around what the modern-day consumer has come to expect. Customers want information that is easy to find and fast. An intuitive online shopping experi- ence (both on mobile and desktop),

rich in function and simplistic in flow. Reserving, renting a space or buying a box needed to be faster and easier, underpinned by a platform that allows us to scale quickly, incorporates eCommerce best practise and an analytics engine behind it to learn and incrementally improve. Like any good business, we recognise that ‘new’ also presents a ‘change window’. The new website initia- tive allowed us to step back and think strategically about our product and the operational execution across agreements and customer experi- ence. With that thinking came innova- tion, evolving a new website project into a completely new platform initiative, threading three key applications at the core and the introduction of the; a) one size fits all Modern Agreement; b) One

month free insurance; and c) the post “move in” customer centric check Care Call all baked in. Fast forward to now, 12 months in the making our new website(s) will have gone live by the time you read this with Teams introduced to the features and benefits during Skillbuilder 2020. You will find the new website has a fresh contemporary look and feel that visitors will find easy to interact with, akin to accommodation/booking sites, that is easy to navigate and discover what they need. This is very exciting for our business, a lot of work has gone into a successful launch. Changes and improvements to the platform will be ongoing. Jeff Xanthos Chief Information Officer

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FEATURE

KSS TAKE GOLD TIER SPONSORSHIP OF NSW PRIDE In the reorganising that we have all witnessed from the Covid shake out, I was contacted by the CEO of Hockey NSW (David Thompson) about their storage requirements and the possibility of partnering with Hockey NSW in the new National Hockey Tournament.

T he National Hockey One competi- tion started in 2019 with a team from each state bringing the best of their talent in to a new elite competi- tion. Unfortunately, in 2020 Hockey One could not hold the tournament after the inaugural year. Like many organisations, Covid challenged the working environment for Hockey NSW and this triggered a strategic rethink of their commer- cial accommodation. KSS became part of an answer for Hockey NSW to be more efficient and more profitable. Hockey NSW will adopt a more distrib- uted arrangement in the development programs of the sport. In return for our position as the Gold Tier Major Partner of the NSW Pride and all the NSW Junior Teams, we provide support with our storage space and cash. Kennards Self Storage logo features on the playing tops and there are signs at the stadium. The games, when they resume in October 2021, will be telecast on Foxtel and Kayo. Hockey is an amazing sport that we all get interested in every four years when

our national teams hold our hopes at the Olympic Games. The Hockeyroos, Kookaburras and also the Black Sticks, are consistent high performers at the international level. They punch above their weight. For me though, I have enjoyed and watched a lot of Hockey for many years as my three girls all play. In our sport rich country, Hockey has been an amateur niche sport contesting for the talent, support and interest of the public, let alone commercial interest. So, when David made the approach he was probably a little surprised to receive my warm interest. Not only was I attracted to the sport with personal interest, I liked that the sport is profes- sionalising and picking up its game on the content it was offering. It is encour- aging to know we are supporting the cultivation of talent into elite levels and the national teams. Giving players an elite tournament to showcase and develop their skills is invaluable. Hockey Australia and NSW Hockey are proving they have ambition, initiative and enterprise. It is a delight to support the NSW Pride and Hockey NSW as they embark on this endeavour.

In remarks to the media, Hockey NSW CEO David Thompson said: “Kennards Self Storage is a well-recognised and proud family-owned Australian business, so we’re delighted to have them join the NSW Pride as our Gold Tier Major Partner. This is a significant partner - ship for both the NSW Pride and Hockey NSW that will benefit not only our athletes and support staff, but our wider hockey membership base as well. We look forward to welcoming Kennards Self Storage to our NSW Pride family and working with them in the years to come.” It is particularly pleasing that the support from KSS provides a significant financial multiplier for the sport. They become more efficient and are making tangible savings well in excess of the amount of the sponsorship. We will keep you all informed about the Hockey One tournament and the perfor- mance of the NSW Pride. There will be opportunity to get to games and to expand the exposure of the Pride.

Sam Kennard Chief Executive Officer

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FEATURE

SOUTHPORT QLD, A GREAT PLACE TO INVEST

Southport is a suburb in the Gold Coast Region of Queensland, with many locals referring to Southport as the CBD of the Gold Coast. Southport has a population of 31,907 people and 46.12% of its occupants live in rental accommodation. The median listing price for houses is $620,000 and this has changed 0.16% over the past year and 3.50% over two years.

N ew construction and redevel- opment is good for investment purposes, and Southport has plenty. Public transport is exceptional, you can get a bus just about anywhere on the coast from Southport. Education facilities are also great with a good mix and choice of public and private schools for children. There are currently 69 new property developments underway in Southport. Three of the major apartment blocks Allegra, Regatta and Sundale have all sold out. Savvy investors have taken to the market to purchase a piece of paradise in the sunny state. With above average rental yield returns, investors from abroad, local or interstate are snapping up apartments, homes and townhouses to add to their portfolios. The growth in the area is

to locals in the suburbs of Ashmore, Labrador, Molendinar, Gaven, Arundel and as far as Helensvale. I would like to take this time to thank Centre Manager Bol Kon (pictured above), Assistant Manager Catherine Bradley and TSM Wayne Bolye, you all worked so hard to get your new centre ready for opening and it looks amazing. Since opening on September 29th the Team have been busy wowing the people of the Gold Coast with their great customer interactions, seriously worth checking out their Google Reviews! Congratulations Team on a great centre opening and thanks to the Baudinet family for the great location. Happy Renting!

also a result of empty nesters choosing to sell their family homes and downsize into new modern apartments at the fraction of the cost, utilising the equity in their current homes. With all this said, it was little wonder the Precinct Group owned by the Baudinet family chose this great location for Queensland’s 17th centre, making it our 95th Orange Beacon of Freedom for Kennards. With our famous orange and blue, we cannot be missed in Southport. We are the new centre piece of the CBD! As you would expect of any new Kennards centre we have all the locals covered when it comes to storage. Offering 6,700 square metres of rentable space over five levels including undercover loading and unloading for all our customers. The state-of-the- art purpose-built storage facility caters

Nicky Goodwin QLD Operations Manager

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FEATURE

What a Year! Nothing was going to stop us from celebrating our Team’s achievements for 2019/2020. ACHIEVEEMBER, A MONTH TO REMEMBER

15 Years of Service: (T to B) Joanne Woodhouse - THQ, Fiona Harding -THQ, Darryl Hodgson - THQ, Johny Vaman - Rozelle NSW, Darryl Lewisson - Fyshwick ACT, Michael Macheledt - THQ. Also recognising: Nigel Spragg - Ivanhoe VIC.

Sam Kennard Congratulating Steve Jansen on 20 Years of Service

O ur traditional locked into Achievement Dinner was cancelled due to Covid. The much anticipated yearly tradition is always a fantastic opportunity to celebrate our Teams achievements, recognising their efforts over the year and also a lovely way for our Teams to come together in the one place to catch up and mingle. We were challenged with the very fluid changes in travel restrictions and social gathering limitations this year. Not giving up, we decided to use the power of the technology we have and continue with the celebrations in a slightly different format. The birth of #Achieveember made it possible for all our Team to join in the celebrations through the virtual platform, Yammer was the obvious choice to keep everyone connected. The month of November was dedicated to celebrating and recognising our Team’s achievements. What a lovely display of comradery from our Teams, the endless messages of recognition and acknowledgement were wonderful

to read and watch. And the live streaming for the Service Awards was a great way to share the moment with everyone. Kicking off the Service Awards, we had Sam surprise the recipients with a visit to their centre and an impromptu video interview, it was a lovely surprise for the team, but don’t give up your day job SK… #CLM. Steve Jansen joined the 20 year club, with a further 7 Team Members added to the 15 year club and 5 Team Members to the 10 year club. The Operations Team were busy out and about presenting awards, taking plenty of photos and videos, sharing the moments for everyone to enjoy. It was like we had our own Academy Awards played out on Yammer. Huge thank you to everyone involved especially the Operations Team for presenting the Awards to the Teams.

Looking forward to what the next Awards ceremony will bring us…

Tony Vuong General Manager Operations

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FEATURE

ACHIEVEEMBER, A MONTH TO REMEMBER

10 Years of Service: (L to R) Neil Pardoe -Penrith NSW, Frank DeVlam - Campbelltown NSW, Mark Burgess - Artarmon2 NSW, Gary Stephenson - Macquarie Park NSW.

10,15 and 20 Years of Service recipients with Darren Marshall (far left) and Sam Kennard (far right).

5 Years of Service: (L to R) Nerissa Phipps - Virginia QLD, Tony Vuong (left) presenting to Carolyn Coates - THQ, Sam Kennard (left) presenting to Craig Henery - THQ, Andrew Kirkham (left) presenting to Kelly Lang - Hastings NZ, Fiona Harding (left) presenting to Ophelia Keshishian - CCC, Nicky Goodwin (left) presenting to Shaun Young - West End QLD, Mina Shehata - Wentworthville NSW. Also recognising Andrew Partin - Prospect NSW, Leng Tang - Prospect NSW, Diana Moore - Cardiff NSW, Colin Fuller - Mittagong NSW, Scott Findlay - Campbelltown1 NSW, David Collins - Port Melbourne VIC, Boris Hoth - TSM SA.

Freedom Awards and Certificates : (L to R) Sean Bradley (left) presenting to Conor Kennedy - THQ, Nicky Goodwin (left) presenting to Zac Singleton - West End QLD, Grace Bagajluk - Fortitude Valley QLD, Fiona Harding (left) presenting to Deepa Chirayath - CCC. Also recognising Freedom Awards: Daryl Whittaker - Chermside QLD, Melissa Forrester - Mayfield NSW, Charles Shepherd - TSM VIC, Freedom Certificate: Kaio Tang - Guildford NSW, Rookie of the Year: Brooke Cochrane - Mayfield NSW.

SCOTY Commitment to Occupancy Growth: Darryl Hodgson (middle) presenting to Debbie Jones and Matt O'brien - Parramatta NSW

Raving Fans Special Mention: Darryl Hodgson (left) presenting to Craig Kemp (Natalie Wynd absent) - Klemzig SA. Also recognising The Raving Fan Award: Anthony Heng and Anton Robertson - Gladesville NSW

SCOTY Sustainable Business Performance: Darryl Hodgson (left) presenting to Russ Hanley (Adam Scott absent) - Seaford Meadows SA

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FEATURE

SCOTY Sustainable Income Growth: Melissa Hiri and Simon Spring - Wellington NZ

SCOTY Most Improved: Amy Fergusen and John Colman - Warana QLD. Also recognising Neil Pardoe and Kim Simpson - Penrith NSW

SCOTY Commitment to Occupancy Growth: Mark Montgomery and Katie Jones - Three Kings NZ

SCOTY Gold: Leanne Nassif and Rhys Thomas - Chullora NSW, Kellie Robley and Gordon Iyere (TSM) - Coorparoo QLD, Darryl Lewisson and Colin Haden - Fyshwick ACT, Amy Fergusen and John Colman - Warana QLD.

SCOTY Gold: Anthony Heng and Anton Robertson - Gladesville NSW, Darryl Hodgson (right) presenting to Josh Bendall and Kristy White - Adelaide Airport SA, Tom Moxey and Col Fuller - Mittagong NSW, Janice Nichols and Nerissa Phipps - Virginia QLD. Also recognising: Matthew Jones and Belinda Duncan - Wollongong NSW, Mike Howard and David Courtney - Kirrawee NSW, Maria Katselas and Maya Maharjan - Petersham NSW, Mick Baron, Medhat George and Jim Gavin - Castle Hill NSW, Michael Bradshaw and Gary Stephenson - Macquarie Park NSW, Neil Pardoe and Kim Simpson - Penrith NSW, Cole Heaton and Lesley Fitzpatrick - Thornleigh NSW, Steve Jansen and Varsha Samji - Pymble NSW, Lenci Taylor, Carol Dunne, Shri Adigopula and Aaron Petty - Belmont NSW, Dane Talbot and Simon Faulkner - Hawthorn VIC, Cameron Rickie and Adam Snowdon - Miranda NSW, Leng Tang, Alex Nelson Andrew Partin and Monti Sehrawat - Prospect NSW, Jared Mobbs, Luke Vandenbosch, Martin Drake and Rebeca Correa - Brookvale NSW, Phillip Gallop and Flex Dasquerzine - Rydalmere NSW, Johnny Tov, Duncan Robey, Brianna Burns and Zaine Trethewey - Moore Park NSW, Owen Erglis and Jason Fort - North Lakes QLD, Clint Thompson and Kylie Mercer - Erina NSW, Christian Archer and John Duong - Marrickville NSW, Rachel Guglielmino and Rebecca Hammon - Preston VIC, Diana Moore, and Michelle Leonard - Cardiff NSW, Najwa Ryan and Upjeet Singh - Bankstown NSW.

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FEATURE

STATE OF THE INDUSTRY 2020

S tudy commissioned by the Self Storage Association was formerly known as the Demand Study. A document designed to provide insight into self storage demand and consumer behaviour, last produced back in 2013. Previous editions were produced back 2006, 2008 and 2010, all providing valuable data for the industry during that time. The latest iteration has been renamed “State of the Industry” supporting previous publications. The latest edition continues to explore the current state of the Self Storage Industry across Australia and New Zealand. The latest report surveyed 150 members of the Self Storage Industry and just under 3,000 consumers, research was conducted by Urbis consulting services long time associate of the Storage Industry and EY Sweeney a leader in Consumer Research, with a strong history of delivering insights and perspectives across many industries.

due to the perceived high cost. This may reflect an incorrect price point or an inability to communicate value. THE MARKET Members indicated they had a positive outlook for the future, showing confidence in the durability and resilience of the storage product. For a long time self storage was consid- ered a fragmented industry. The trend now has been consolidation as top tier operators like National Storage pursue substantial acquisition programs. This demand has led to higher asset values particularly in the major cities. Along with acquisitions, new develop- ments have increased adding new storage supply to the market, placing downward pressure on storage rates and occupancy. Demand for storage is generally driven by disruption in people lives. We are

The report concentrates on four key areas: The Market The Industry The Consumer The Future Awareness of self storage among the population is higher at 92% in Australia and 88% in New Zealand. However only one in five people (20%) understand the self storage offering. The survey indicates that 8.5% of the total population of adults have used self storage. This is up from 5% in 2013. Take outs from the survey: customers who have used storage in the past five years indicate they would need storage again in the next five years, emphasising the importance of a good customer experience for future repeat business. One in two people who needed storage in the last five years chose not to store

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FEATURE

Customer profiles indicate three in four customers are residential, and store for approximately a year and half while business customers store for longer, just over two years. Our records indicate residential storers store for around 13 months. THE CONSUMER Awareness has increased over the years, with 92% of Australian and 82% of New Zealand people who had never used self storage, becoming aware of the product. Although awareness is higher, only one in two people surveyed understood the product. Brand awareness unprompted showed Kennards was the Brand most recalled at 25% in Australia and Storage King 23% in New Zealand while Kennards is second in New Zealand. Kennards ranked in the top three for all states and first in three states. Path to choosing storage: people research and consider using storage 3.5 weeks before storing. 43% consider multiple storage providers with the main reasons for choosing a particular facility being: convenient location, 24/7 access, cleanliness and security. Price does factor in with 18% of users looking for the lowest price. The perceived benefits of using storage rank safety, security and flexibility the highest, with cost-effectiveness ranking number one for business storage customers. THE FUTURE Operators are optimistic about the future of self storage. The survey indicated that one in three people would have a need for storage in the next five years. The SSAA has indicated the “State of the Industry” insights is just the beginning. The intention is to update the data on a regular basis to discover trends and have a record of change. Congratulations to the Team at the SSAA for such comprehensive insight into the industry! Darren Marshall Chief Operating Officer

seeing this currently play out because of the COVID pandemic. The four D’s remain relevant as drivers for storage: Density (apartment living), Divorce, Death and Displacement (or Dislocation). Other factors that influence demand include, population growth, average household income, new apartments, unemployment, and residential turnover of homes.

‘

DEMAND FOR STORAGE IS GENERALLY DRIVEN BY DISRUPTION IN

“In the reorganising that we have all witnessed Kennards Tauranga and Jiang were very helpful in reserving a large storage unit for me at very short notice. Paid for six months. Buyers of my house failed to complete one week before vacant possession was arranged. Incred- ibly disruptive for all involved. Jiang was most helpful throughout this bad experience and provided me with a full refund. I shall certainly recommend this professional organisation and use them again in the future." "From day one my experience with the staff at Kennard Auburn was amazing. Kaz who I dealt with was so friendly and so professional. Nicky was very professional in her follow up calls. I could speak to them about anything. I felt so comfortable and respected. The staff were amazing. The service provided was greatly appreciated. It met my needs 100%." "Kennards Frenchs Forest has exceeded my expectations in every way! Wayne from HQ recommended we check out the centre, and let us know to speak to Joel, the Manager. Wayne gave us great tips and answered all our queries about insurance and security. Joel made excellent recommendations to us, gave a full tour, and helped us to receive a large shipment. It is very clear the company culture is embedded throughout, the service is impeccable and consistent. The centre is new and spotless, with great facilities. I would definitely recommend to anyone."

PEOPLE LIVES. WE ARE SEEING THIS CURRENTLY PLAY

OUT BECAUSE OF THE COVID PANDEMIC.

THE INDUSTRY

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It was highlighted the relationship between past users of storage that 53% are highly likely to need storage in the future. While only one in six who have never used storage felt they would have a need for storage in the future. Need for storage seems highest amongst younger people and declines with age. REASONS FOR NO LONGER NEEDING STORAGE (pictured left) The study indicates an obvious shift to web for customer enquiries for large operators while smaller operators rely on phone enquiries. Walks ins remain high. Use of incentives has increased and divided operators on the value of offering a discount and its potential to devalue the product.

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FEATURE

Despite the hurdles throughout 2020, KSS Teams still managed to put a smile on their dial and enjoy some Christmas cheer. CHRISTMAS CELEBRATIONS

SYDNEY NSW

WOLLONGONG NSW

THQ NSW

BRISBANE QLD

SUNSHINE COAST QLD

GOLD COAST QLD

VICTORIA

SOUTH AUSTRALIA

AUCKLAND NZ

NEWCASTLE NSW

WELLINGTON NZ

PALMERSTON NORTH NZ

HAWKES BAY NZ

TAURANGA NZ

THQ NSW

VICTORIA

SYDNEY NSW

SYDNEY NSW

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FEATURE

NAPIER FLOODED... BUGGER!

O n the night of Monday 9th of rain fell within a 24 hour period including a massive 54mm in the first hour. To put this into context, it was four times the total for the average monthly rainfall and was the second heaviest day on record for the Napier area. A seven day State Of Emergency was declared by Civil Defence. Unfortunately, our Napier site was affected with some 216 units and our office area being flooded by water coming into our property from the surrounding roads, which was also preventing our own drainage system from allowing any driveway surface water to drain away. Thankfully, our Teams own homes and the Onekawa site in the neighbouring suburb were not affected so we were able to immediately activate our Emergency Response Plan to minimise any more damage and look after the affected customers as soon as possible. Having a plan ensures an organised approach, quickly assisting the affected customers. Removal- ists were used to assist customers October, the worst rainfall in 57 years occurred, when 242mm

to almost 98% as new customers enquire about needing to empty out their homes to allow drying and repairs. This event again proved the benefit of insurance where a natural disaster like this can occur at any time without warning. With the advent of the new website and the complimentary first months insurance, you can see how a reminder of this event in the 20 Day Care Call to confirm ongoing insurance will become somewhat easier. I would like to thank all the Napier and Hastings Team who worked long days for two weeks to ensure all customers units were resolved along with the super support of the Customer Care Team and THQ. The customer feedback has been extremely positive, both on Facebook and Google Reviews. This reminds us all that regardless of the event, it's how we help our customers experience post event that goes a long way towards our reputation and reinforces ultimately our “Store with People who Care" Branding. Andrew Kirkham NZ Operations Manager

checking their units and separating the affected items that had ground contact, providing complimetary boxes for repacking and also some rubbish bin skips.

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THIS EVENT AGAIN PROVED THE BENEFIT OF INSURANCE

‘ WHERE A NATURAL DISASTER LIKE THIS CAN OCCUR AT ANY TIME WITHOUT WARNING While some customers downsized and the odd person decided this was time to end storing, the majority of customers have remained. Ironically, due to the severity of the event in the greater region, the site occupancy has increased

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FINANCE

The world is rapidly changing in many ways. One area is how our customers transact and pay their invoices. PAYMENTS TO KSS AND THE RISKS INVOLVED

significantly.

10 years ago we would have seen:

• Direct debits and credit card payments are completed electroni cally through online sign ups. • Use of paper is becoming less and less. These are exciting times and processes are a lot more automated. Moving to the new website we hope to see all customers signing up electroni- cally and a significant shift to recurring payments. However, new systems bring new risks and there are criminals out there trying to exploit our systems and processes often. WE ARE WORKING WITH OUR BANKS TO IDENTIFY WHERE WE CAN REDUCE RISKS AND EXPLORE ANY FUTURE SYSTEM CHANGES THAT WILL REDUCE FRAUD ATTEMPTS • If a customer pays with a credit card in store and does not have the correct pin and wants payments made in smaller batches, please do not accept these payments. • If a credit card is signed up online and something appears odd or not quite right, please investigate further. We have recently seen a person sign up and use a bank account for Going forward be aware of:

• Most payments by cash.

• Many cheque payments.

• Few recurring credit card payments.

• Mailplus collections or cash deposits by centres on a daily basis. • Administration high as Team Members had to manually match cash payments to the correct customer.

• Risk of missing cash.

• Risk of cheque frauds or cheques being cancelled. Many cheques post-dated into the future and Teams had to wait to bank them.

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a direct debit however the bank account was not their account. After 12 months the account holder has disputed the deductions from their account. No alarm bells were raised in this situation. However, should anything appear a little unusual, a great control is to ask the customer to bring in a bank statement to verify the bank account details. As technology changes so will the controls to prevent fraud. The New Payments Platform (NPP) is rolling out with improved changes for direct debits in 18 months time which Kennards will embrace. Before these automated changes come through it is critical we are vigilant to fraud and if anything does not seem right dig a little deeper, ask THQ to contact CBA for support. We are working with our Banks to identify where we can reduce risks and explore any future system changes that will reduce fraud attempts.

• Refunds were often cheques.

A lot has changed since then.

The summary chart provided here is of Payment Types for Australia and how they have changed between January and October 2020: • Cash and cheques are around 3% of the total and declining. • In Australia 51% of our customers are set up on recurring payments through credit cards or direct debits from a bank account. In New Zealand the number is lower at 28% however both Australia and New Zealand are increasing. • 25% in Australia and 54% in New Zealand still prefer to manually transfer funds to pay their accounts each month. • In summary all the data shows us customers are moving away from using cash and cheques. • Mailplus or cash collections at centres are often only once a week and the risk of cash on premises has dropped

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Thanks everyone for your support during 2020 and look forward to a better 2021, working with and supporting everyone.

Anthony Rous Chief Financial Officer

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PROPERTY

SPOTLIGHT ON WATERLOO

Shona Kitchen, Centre Manager and Paul Buckby, Assistant Manager

Above L to R: Chloe Gillam, Zaine Trethewey, Brianna Burns, Eddy Singh, Natalie Pisarev,Sylvia Gouvas, David Summers

K SS Waterloo is the largest storage units and on track to crack ten million dollars in revenue for the first time this year. The centre occupies its own block in Waterloo, Sydney and consists of four multi-storey buildings with the oldest dating back over one hundred years to the formation of Zetland Glass Works. The site remained a Crown Crystal then Crown Corning Glass Factory until production ceased in 1988. In 2000 the site became a Millers Storage facility and transitioned to Kennards in 2004. Our unit mix consists of business and 24hr access, drive ups, lockers, a large wine cellar in the basement and mini warehouses up to 170 square metres in size. Our centre is popular with local businesses due to proximity to the Sydney CBD and the airport. centre in the Kennards portfolio on many measures, with 3,054

The Team consists of Sylvia and Brianna, both with many years’ experi- ence with Kennards and both having worked in a number of centres prior to Waterloo. Natalie and David have both recently passed their three year marks, all at Waterloo and with David the Centre Manager for the last 18 months. Zaine, Eddy and Chloe have all been with the company for between 6-14 months, with Chloe and Zaine having previously worked at Homebush and Moore Park Centres respectively. Some of the main issues we face are maintenance related to the age, size and heavy use of the property (for example we have six elevators to maintain), and a tight supply of on site parking spaces. We recently passed 85% occupancy after strong growth over the last three years. The centre always keeps us on our toes and it is rare to have a dull day. Waterloo Team - Brianna, Chloe, David, Eddy, Natalie, Sylvia and Zaine

Originally located in an industrial neighbourhood, over the past ten years residential apartments, shops and restaurants have replaced the neighbouring factories and warehouses, and the local area is on track to become the most densely populated part of Australia by 2030. Three hundred metres down the road is a Rent A Space facility, and only 900 metres away is our sister centre KSS Moore Park with whom we work closely. We have fantastic street exposure leading to a high proportion of walk-in customers, merchandise sales often exceeding 30K a month, and heavy use of the ParcelPoint service and the GoGet van. The Waterloo centre has seven full time Team Members who also take turns looking after a dedicated Concierge Office for deliveries.

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PROPERTY

PROPERTY DOWNLOAD WETHERILL PARK NSW

C onstruction has commenced on 27 mini warehouse high bay units at Wetherill Park in Sydney’s west. KSS have contracted this project to Apex Building Services. The centre enjoys a strong mix of commercial and personal storage customers. The existing self storage

site has a variety of older single storey units and more recently two and three storey buildings. The new mini warehouses will be a mix of 60 square metres in size through to 140 square metres, with the five units facing the street constructed with a commercial façade, including individual

shop front style features.

The new development will be constructed on an area of adjoining vacant land and includes additional entry and exit points, landscaping and new carpark areas. Construction has a completion date of July 2021.

GUILDFORD NSW

C onstruction is nearly complete on the new three storey 4,800 square metre KSS Guildford building in Sydney’s west. KSS Guildford is one of the oldest properties in the portfolio, originally developed by Neville Kennard back in the early 1980’s and included a Kennards Hire facility fronting Guildford Road.

Hill, Wetherill Park and Rydalmere, we now present a much improved retail presence to the main road. The site retains some older style single storey units and with this new first building will have over 900 storage units to manage. The expansion by Patterson Building Group, includes the new wave multi- level building type, equipped with customer lifts, a new office, meeting

room and services, open forecourt and loading bay areas. This building is the first of three Develop - ment Approved buildings for this site. The original section of the Guildford centre will also undergo a facelift to bring it to life. This first stage of the expansion is due for completion in February 2021.

Similar to previous expansions of Castle

Michael Macheledt & Craig Henery Development & Construction Team

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PROFESSIONAL DEVELOPMENT

BLUE LEADERSHIP CONSTRUCTIVE BEHAVIOURS

"Kennards is Definitely a 5 star self storage site, nice and tidy, and the staff, well what can I say, you cant beat them with service and courtesy. I will definitely use Hastings again when I need them. "

Each and every member of the business has the capacity to influence the performance, behaviour and even thinking of those around him or her. A Constructive Leader regardless of title or position encourages and motivates. They promote approaches to work that help others to meet their higher- order needs for growth and satisfaction. ‘ The link between Constructive

"Wonderful staff and facility at Miranda. Would definitely

recommend in the future. Left my belongings for over six months came back, exactly how I left it no damages or water leaks, highly recommended place to store. Keep it up Kennards, best in the business." "This is by far the best and most convenient storage facility I've ever seen. The staff were incred- ibly helpful and moved mountains to assist with all of my needs and questions. The whole place was impeccably clean, user friendly and well laid out. I will definitely be recommending Kennards Self Storage at Klemzig to my family and friends and anyone looking for a great storage solution. Thank you so much." "The process of hiring storage couldn’t have been any easier thanks to Anthony’s guidance at Gladesville. Everything was explained perfectly and nothing was too much trouble. He had so much patience showing me a couple of storage areas so I could decide how much space I needed. Value for money. Highly recommend."

O ne driver of the culture at KSS is that every Team Member strives to be constructive (or blue) in their interactions with each other and customers alike. These blue styles are (Achievement, Self-Actual- ising, Humanistic-Encouraging and Affiliative) closely aligned and underpinned by the KSS FREEDOM values. Five ways you can be a Constructive Leader: 1. Motivate people to support others in their career development and growth, as well as encourage people to set their own priorities and allocate time in accordance with a long-term plan. 2. Encourage people to build good personal relationships with others (within the organisation) and promote mutual respect of people's diverse backgrounds and viewpoints. 3. Inspire people to take on challenging tasks with a sense of confidence and to encourage people to pursue interesting projects and opportunities. 4. Motivate people to approach work with creativity, inspiring people to experiment with innovative solutions to problems.

‘ Leadership and Organisational Culture is a crucial one. As Leaders the challenge for us all is to display the behaviours we wish to see in others 5. Emphasise the importance of the Team, to encourage people to discuss things in a friendly and open manner while stimulating people to think in unique and independent ways. Does being a Constructive Leader really matter? The link between Constructive Leadership and Organi- sational Culture is a crucial one. As Leaders the challenge for us all is to display the behaviours we wish to see in others. Wayne Brown Training and Development Manager

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