EXR - Earnings call transcript Q2 2018 | Extra Space Storage Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Second Quarter 2018 Extra Space Storage Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference may be recorded. I would now like to turn the call over to your host, Mr. Norman. Jeff begin. may you Sir,

Jeff Norman

you, Valerie. XXXX Storage’s quarter Extra Welcome call. to earnings Space second Thank

forward-looking In press remember materially could to due may Private information filings remarks the the addition Securities our stated those answers contain or on supplemental furnished and Act. defined our These are financial from forward-looking company’s risks with encourage uncertainties associated company’s SEC, unaudited Litigation our the statement statements implied website. by review. we and in your to forward-looking Reform differ Please in to business. that as prepared listeners cautionary release, management’s questions with we statements qualified the contained to our have which by results statements the latest Actual

Wednesday, conditions management’s XXXX. Chief this date circumstances or the Margolis, update of Executive Forward-looking estimates X, like to Joe assumes obligation of today, Officer. call because or I conference market statements turn over call. of as the to to August no represent changing other any revise would company now The the statements after forward-looking

Joseph Margolis

Thanks, Storage. and quarter Extra for interest joining everyone. Space you for call our your Thank Jeff. us Hello, second for

XX.X%. with the with occupancy We continues year with and is year’s and budget some strong Revenue to on exception midpoint in uncontrollable line to have the of crossed guidance and our the is this date, at quarter expectations right our expense ending items.

during the revenue single X.X%. pricing summer growth power mid same-store digits. achieved have We to up season led maintained busy leasing with This rates of

as are and the certainly most we investors and to well. continues at be operators supply of New focused on it minds, forefront

the be Our view continues to same.

location. an varies new and its seeing submarkets by certain supply are in from impact impact We

portfolio We volatility. individual are reduces benefiting impact the our markets. of This market diversified across primary secondary highly and from

rentals. In convert our to price traffic promotion to revenue to best-in-class and to and platform drive that are proprietary stores our systems continues traffic our high-quality management optimizing addition,

last our become periods on technology As call, in I our elevated more advantages mentioned apparent and of scale supply.

in invest management platform third-party significant advantage. We JV XXX growth which continues advantages We and These continue our second to the third-party our added reflect programs, XX maintain in year-to-date. we the this stores our are approaching to Between platform. business. we on and now manage to and a stores in the quarter focus be in largest XXX,stores

in report Inside us that to to market as company magazine management continues acquisitions capital seeking The numerous happy named to of competitive third-party be We’re the year sector. the types just a Self-Storage for exposure the best row. seventh with

yet cap interest We any see in have to expansion rates supply. elevated rates despite and

invested our buyout $XXX contract partners XXXX be closed a are we to JV primarily efforts. disciplined million first rather quarter, the portfolio $XXX continue acquisition auction of than opportunities in a market. acquisition and a annual we existing venture call. acquisitions bid combination interest in includes In we to in of which or year, our in the guidance totaled just We This million, of wholly-owned property which quarter our of million. through under our relationships, open accretive sourced in and highlighted close end the through joint selective Year-to-date, $XXX XX acquisition, for

Revenue performance I to expected. time exactly Scott, the want solid Before to turn I and we over reiterate. is as year-to-date

knew third we create and second call headwind in discounts and our on last a discussed and our elevated revenue accelerated would we would be as As guidance implies, quarters. the

our us pleased to occupancy, which our I increase has turn strong over time growth Scott. allowed We are late the will guidance. FFO now in to with

Scott Stubbs

rates share, expected quarter The exceeding reported by rental of our to $X.XX X% be primarily X% than strong. up beat approximately income. to continue quarter, FFO per core new everyone. the of the achieved Thank customers and due $X.XX. was rate Rental was our hello, Throughout stronger you, year-over-year. we Joe, high-end Last the to to night, for tenant guidance reinsurance

partially and elevated revenue Discounts on levels the our growth. expected, up, of as taper reducing We revenue growth. As the revenue the should discussed on in offsetting discounting later last a to as continue discounts anticipate quarter third year in also were call, quarter. fourth off impact percentage

Without quarter, Our XXXX expenses with due and in with XXXX. line We for guidance would the which properties stores, expense impact of taxes. our were receive in tax the been XXXX, the totaled growth have of exception the $XXX,XXX. the these XXXX up had of three negative in first three included X.X% quarter outsized X.X%. Same-store forecast that quarters and first-half of unbudgeted expense expense growth second for XXXX to property in comps increases the second was

We ladder continue our strategy sheet percentage debt and unsecured balance unencumbered to maturities. and prudently our of execute to size pool of the our our increase

During the funded private quarter, we July $XXX on XX. was a announced XX-year placement, million which

few in guidance our We’ve our top-end basis X.XX% basis changes of a the ATM guidance O dilution the ATM NOI on share. extended lower for guidance The for in of XXXX. unchanged terms secured due rates, than In the average price quarter-end, results maturity better quarter’s million guidance The loans, $X.XX increased raised We’ve in XXXX, same-store the bottom-end an same-store from X.XX% to be points revenue was growth to per our to be date based anticipate $X.XX X.XX%. expected of from $X.XX X.XX% last additional reduced points of at an $XX.XX negotiated acquisitions a dilution as the share. C increased to of dilution lowered and which for $X.XX. maturity same-store to core our OP in X.X%. expense XX guidance. to increase Subsequent first by revenue as uncontrollable of and our acquisitions well in stores access We annual of X% guidance sold $XX to We’ve unit XXXX. FFO XX on by we concentrations of existing to also number issuance, total expense bottom-end of decision we updated and $X.XX value-add We per quarters. the to to to expenses assumptions

C in investment and the over that, value-add stores portfolio for it Jeff long-term generate start of our shareholders. continue let’s and growth Our turn to improve quality to With of our our acquisitions to Q&A. O

Jeff Norman

Thank everyone you, address I initial have Scott. questions ask to In keep to brief. ensure adequate we would your time order everyone’s questions, to

to will questions ask As and Valerie, everyone let’s address time follow-on allows, Q&A. initial our And ahead has their with the question. had we opportunity go that, once start

Operator

first Sanabria Thank Juan comes you. question of Bank from of Instructions] America. Our [Operator

line Your is open.

Juan Sanabria

Hi, good morning.

compared for supply XXXX? thinking and latest a your how a versus expectation basis, talk things XXXX hoping to maybe about XXXX, XXXX Just deliveries and we your thoughts could bit about on least, rolling little at now three-year

Joseph Margolis

Sure.

delayed supply things course, XXXX – hasn’t We getting much lot to that last things down just to subject, changed to into being which be Our a moderating pushed quarter. expect time. would outlook slightly don’t on from deliver of from in XXXX, similar this from really business, and XXXX to happen seems

delivered. slightly much concentrating, looking So and like overall, are more expect secondary haven’t less new at to which where looking to Dallas people at is, would where a shift the impacted when number. by more folks is to you markets people supply. yet market-to-markets, in product less any markets as if see look the looking, people important national we down do And being I a what’s But numbers, similar been

Juan Sanabria

terms then in revenue, we of trajectory be? sort And would growth Great. fourth run XXXX of the good you expect the of a on just to block starting a about growth? same-store should as quarter And second-half characterize how rate thinking

Scott Stubbs

Yes.

Scott. Juan, So, it’s

a at of think, here. and So if you for how line our kind kind year, look ignoring look at of our at the revenue discounts looking we’re you guidance growth top second I

throughout line growth deceleration implies year. the revenue Our top

that So fourth implied The that. impact be and are guidance, about third in second our discounts quarter that in we’ve moderating larger the into of the impact quarter. going talked to we’ve with

could see the third than be potentially the year-over-year higher quarter. you fourth quarter So slightly

So year. year. the our to current that’s XXXX outlook but ready that’s sure kind of we’re guidance, I’m give for not current the

Juan Sanabria

second from Could you drag for – quarter the quantify the in the discounting?

Scott Stubbs

quarter about basis second was the in XX drag discount points. The Yes.

Juan Sanabria

you. Thank

Operator

Thank you.

next question… Our

Scott Stubbs

Thank Juan. you,

Operator

next Our of Markets. Jeremy BMO Metz question Capital from comes

Your line is open.

Jeremy Metz

Hey, point confidence seeing I’m wondering what XXXX the it supply return now that back out doesn’t that you’re could given ramp even holding Thanks. feel it to just like there wanted fundamentals just and just that there? to actually your Joe, this in line just expectations about go down. slightly of up quite guys. to you obviously, in in I at kind that good that, be market comments on are still gives today are

Joseph Margolis

steel is to is certainly labor confidence high-level hard or up. what characterize going see up, is have you XXXX it’s interest do So up, it. perfect as going is materials, to going But our costs are transparency we up, going of

and you are not solid we have know cost cost. an fundamentals. increased although projects canceled moderating pursued of and because you And that So basis do have being

So discipline way the developers I say the to and and a there’s some while business business discipline understand the for between think, not across from going been all some who’ve and in lending that of of I’m lenders, discipline the this Board.

find sense saturated, will you’ll It’s market to have to you – that the site some makes it that think punching in Dallas But Dallas as a Certainly, in markets hard bag. that is hard using I right? that keep North find see where it’s forces development. moderate now.

Jeremy Metz

factors sounds But you’re lending like at sense. maybe that little one at get it No, those seeing tougher that this makes is – a of and point? least

Joseph Margolis

that’s there’s have Situationally, a – local factor but can their it’s banks getting it folks I who who lot local tougher. a think, loans, a of is get

Jeremy Metz

about I technology points Okay. on we’re larger players talked front, supply me. mean, rising. where And the just the second at then especially for cycle in like is one advantages revenue in you management have the

capital at at look And continue you see that or for most with what you to results or as really your system where are the do Joe, today biggest generating, today, are it? happy put the improvement, front into going is on forward? about So, systems more you opportunities the will where excited you you’re you

Joseph Margolis

systems happy and we’re system. always with our never So with happy our

particularly the hoarding duck. anytime you’re seeking So improve, we’re always standstill, to with technology, in world just you

improve a we and different better and well. customer, many, deliver do spend to maximize effort trying tests how to of can it’s well we revenue, systems, and hope we our to just models, a I our improve that product we to find continue think many do I something So lot our do time out

Jeremy Metz

for time. Thanks the

Scott Stubbs

Thank you, Jeremy.

Operator

Thank you.

next of comes Thomas Capital. Our KeyBanc question Todd from

is line open. Your

Todd Thomas

Hi, thanks. afternoon. Good

the you about or drag the question basis the the drag back to just discount same quarter? quarter First in talked the the than in points same-store more the third it was that revenue that second be second Will quarter. XX in

Scott Stubbs

Comparable higher. to slightly

July in typically July last and and as August. had have quarter, really months but You months, typically discount more don’t much as rentals May August, have you we you summer and this in where and quarter June,

Todd Thomas

so trough Okay. And comments, in revenue third just same-store improve based sequentially quarter the the quarter your and right then, Scott, Is growth your to might sounds it comments. on that read? fourth the into begin like then

Scott Stubbs

the it, That we’re way looking correct. at

Todd Thomas

Okay. of is this net And third-party you to And then – management platform in for question the just last of it anticipating additions to business, are anticipate XXXX? how year-end? many at the on sort pace additions continue

Joseph Margolis

to and our I our we we’re development. additions And pace development it third-party to management through quarter, this for to that we our about expect are as two-thirds continue in slowdown XX see surprised to net platform would not third-party rest management of year. I moderate, be would that feel starts So the platform. additions in the of XXXX expect, second would as

Todd Thomas

Okay. you. Thank

Operator

Thank you.

from Our comes next of Citi. question Rose Smedes

moment Your One I’m moment sorry, please. moment. one line one is please. open.

Okay.

Our of Hoglund comes Jefferies. George next from question

Your line is open.

George Hoglund

Good guys. Yes. afternoon,

kind in thing recently just have to management, the or Just in following internalizing contracts are exiting another looking manager trends to What customers customers you terms own of that third-party management? their whether one line. it’s who seen question of go on canceled at

Joseph Margolis

own sell the some last and of have with of its management we that their will portfolio was lose the experience occasionally one transition year or business when talked that. that, large had only about people properties lost We internalizing you property. a and will Part type we is customer

owners. and quarter I business. think the the first and increase part the a lost of second two in behavior in in that’s or different just six seen any we lost we’ve of So quarter, terms trends we’ve don’t

George Hoglund

six reason? or then management, new sold is those first for the second switch quarter, two to and people property looking were quarter, due these just those those of basically And the in other to the any switching any getting in owners all

Joseph Margolis

that’s very So we it part willing To of switching the occasionally, And to lost manager. very, one were to when happens, contract but retain for that concessions another make fee not to date, that happened someone necessary business. that We has contract. happens.

George Hoglund

the Okay, looking in that terms are of for thanks. assets kind inflows any players in at have And then also sort to acquisitions competition going put seeing of just recent to of new trends in forward of they’re looking you new what capital work? market

Joseph Margolis

see to the of interest and strong investment. the XX% with economy. the to a It in type positive are continue I We extent, property it downturn economy. self-storage mean, performs a This occupancy, concerned asset the of class. basic in people lot are well growth an downturn revenue very still in is about fundamentals

there’s lot people asset this a that in in So reasons interested are of class. that

is seen of classes. pools in reason, there’s equity the For regional and for of why expansion money it’s And funds that put asset demand money in local a to there’s people rates private types from to that opinion our we class. a big cap of haven’t together lot different invest that’s the asset such looking who more

George Hoglund

Thanks Okay. for color. the

Scott Stubbs

George. you, Thank

Operator

Thank you.

comes Our of Citi. from Smedes Rose next lines

Your line open. is

Smedes Rose

hear Hi, you me? can

Joseph Margolis

Yes.

Smedes Rose

Thanks.

Sorry, to The still I costs three apparently. just you phones you so power ask stores increase tax we’re here on learning $X wanted million. three.

about So the XXX XXX And tax and kind your risk like what’s for XXX going risk and you how I assets, of think owned maybe across increases? with the stores guess? what unbudgeted managed, other in JVs – do forward another

Scott Stubbs

Yes, municipality a This is us. of school actually and the put the board this that a That obviously local XXXX XXXX. challenged unique impact a was situation, Smedes, kind where XXXX, valuation negative affected on was Scott. on by and had

greater to this one win of we has other been types are I these terms the constantly than it any tell was years, reassessment. running happens and today us, not is against looking we happening occasionally. situation this the We appeals wouldn’t In This risk issue, went statutes But on of not, the you in More it properties often an is of in the it’s past. risk that. prior at surprises. have that than

Smedes Rose

Okay, that’s helpful. Thank you.

Scott Stubbs

Thanks, Smedes.

Operator

you. Thank

Eric from comes question of Frankel Advisors. Green Street next Our

open. is line Your

Eric Frankel

Thank you. challenge – perceive in growth rising Joe, you just do How based moderate of decrease a as what you have attributable that’s a construction do think the supply to – costs? you any a more on XXXX? sense moderating much

Joseph Margolis

don’t I going I to top of causes think extent the the down. have in we kind have construction lending don’t moderation allocate – between XXXX. or I tighter line or costs to rising the anyway just

causes. up I’m I not can development are yields suppressed. So getting sure divide those different

Eric Frankel

differently. partners ask land? a seeing overall How can I Maybe say a cost versus that increases question year development are a to your today little much ago construct excluding self-storage facility,

Joseph Margolis

to tell I XX% before would you steel XX% in the So announced. hearing that were increases were tariffs we about

So we rates. there, know interest we have some labor increases

if XX% XX% So ex I land. cost, in you put all that you have to overall together, increases think, probably

Eric Frankel

it future forward question. Okay, appreciate follow-up budgeting that’s helpful. Thank foreseeable in same you. Do you a going weeks And perceive your the next wage just rates this pace year? the has

Scott Stubbs

fact tell would year to growth so it’s the from this our our year. pressure, that you, not rate I more is wage attributable increase, saw to outside much current So attributable benefits

the through we than is increased tough past. thing a the Our they And in were on very it quarters, health then payroll. attribute have two would I to second faster and negative Last comp. insurance year X% benefits

So it kind inflationary. it’s on rolling two-year of if you at pretty look much a number,

several Our healthcare up for years. has not gone

So able We inflationary we than be year. hope this to to more control number. experience an outsize

Eric Frankel

explanation. Thank you the for

Scott Stubbs

Thanks.

Joseph Margolis

Thanks.

Operator

Thank you.

Kamdem Morgan of Ronald from Our comes question Stanley.

Your line is open.

Ronald Kamdem

just I had San question quick a on Yes, Hey. Francisco.

deceleration some at the of Just looking this quarter.

guys general? you market about maybe color maybe any and and curious Thanks. the can how the in Just West if Coast there, provide you thinking

Joseph Margolis

in San by Jose. numbers San are really driven So Francisco our

doing Francisco So San Oakland, San and Jose which is better. weaker are than

Ronald Kamdem

can success of lot lot quick to of able Clearly, acquisitions. a just this deals. I if one source a about then ask being year And it. off-market another Got

a you kind can is this a attractive maybe source of where that So is one, what looks if comment just kind of continue two-year can there you Thanks. on pipeline to these runway – So of deals? like? kind

Joseph Margolis

many, side seeking because some finite can that no is business these year-after-year-after-year We in guide, future. But management tell you of with to done don’t but successful pretty and from that And hard when you at funds really ventures relationships been of continue have I with years. or to you predict for up. I to assets, off-market opportunities to we funds in many or we’ve some joint we any our know come life venture on our acquire have in see back, guarantee. that point our there’s be on reason are know are opportunity we’ve an that just we’ll those any exit Our is, a the is if or opportunities the either hope if what either history relationships pipeline significant why right, portion side shouldn’t acquisition going of never people pipeline look the generating our joint

Ronald Kamdem

so Thanks much. Helpful.

Joseph Margolis

Thanks, Ron.

Operator

Thank you.

comes Our Steve Evercore. Sakwa from of next question

is line Your open.

Steve Sakwa

Thanks. there I still. guess, out good morning

and Just rate wanted the seeing the ability customer any the of rent of just bit are curve or about of of at customers? in the trends kind absorb of staying on stay state sort to to you’re longer increases length two maybe short-end talk the a then kind different customers, increases. little customers. you And in of buckets folks And new looking how

Joseph Margolis

Yes.

Our stay, increase or length here. mildly Steve, continues of moderately to

are very they have past. in way similar behaving the to So customers

customer existing high increases rate still Our single are digits.

a monthly We basis. continue to on do those

past. We they very have year the increases on to the the and similar general. And rate been of are to in very, rates down customers have a it’s of roll what to the rates way to between time in similar reacting depending past X% in XX% in

Steve Sakwa

ways. been of nervous of next asked year of look then, being just I do you at Okay. on is as of a operating it’s could here year, a circling expense sort of growth, you wages expenses the had real bunch the back just taxes? because rate there of I sort mean, would in kind outside potential, next guess, and pressure look of second or that kind at anything you on overall things get I you of maybe into that kind different think accelerate at one-time upward kind do hit you you of And still quarter? But know question. similar look estate expense

Scott Stubbs

with on two some areas point – One to. that think, to reassessing they Yes, kind taxes property where we just or you of are, continue municipalities pressure things. the I is, I three you’ll would have valuations

always are risk. taxes property So

is up also. property – Our insurance going our insurance

an hurricane see back-half of it with of the to fact year we’ve with then up. probably actually think, for year. June, risk property current keep the the in year had kept it being very inflationary You’ll the things to low Xst the increase this due a renewed that and We that the overall, several and went bump and at hope biggest year I that that’s we years been last But we taxes insurance. in

Steve Sakwa

Okay, thanks. me. That’s it for

Scott Stubbs

Steve. Thanks,

Joseph Margolis

you. Thank

Operator

moment Instructions] Thank you. [Operator One please.

question of a Todd Stender have We from Wells Fargo.

open. is line Your

Todd Stender

thanks. Hi,

I through Just looking to investments, the seven guess, what JV the consider. the can to you alongside you how you compare maybe at they investments go to that JV wholly-owned silo those your the compare five you alongside made wanted partner, stores your for would partner? I properties and made operating

Scott Stubbs

actually combined. was It

lease open up, two between a have been stores as So were Certificate it was stores that in years. Occupancy one were the and as lease stores some up in made So of that well

venture So investment. all joint it’s one

Todd Stender

around maybe it, expected property? growth just rates see now first rates that call you whether economics up? years, if some yields silo of property the then it’s around of two in growth opening lease The go kind to the a – and What economics growth or that can in into

Scott Stubbs

our of assumptions? terms underwriting In

Todd Stender

we the in Yes, see where are cycle?

Joseph Margolis

yes. – we’ll So

portion lease the occupied, O stores typically underwrite we’ll of still – all C XXX%, so these up. had lease significant of up. stores lightly others were significantly had The obviously a of So had

will us to it’s up to what’s to rates look in to yield X, can O and stores of We’ll venture The achieving at attach of believe economic development we grown the achieve an When is. because is we underwrite to what We of a digits get discounting C much we coming stabilization. want stores, economic certain joint determine in we’ll underwrite markets. our higher, what effect way to to stabilization. X.X we’re of we typically the the We’ll on the in rates. rates those So at X in maybe X%, an situation based the the local double around the joint we those lease on venture. achieve

Todd Stender

would And be that leverage and management fees? third-party

Joseph Margolis

unleveraged all are management numbers, those – fees. That’s including but No.

Todd Stender

Okay. they properties, And third-party are all management included your in XX additions? these

Joseph Margolis

management the No. owner just whereas we manage stores about When talk stores, owns we about talk third-party XXX%. we

Todd Stender

Okay.

Joseph Margolis

stores, We venture as also manage stores. our but we those joint refer don’t to managed

Todd Stender

you. Thank it. Got

Joseph Margolis

you. Thank

Scott Stubbs

Todd. Thanks,

Operator

Thank you.

Rose of next comes Citi. Smedes Our question from

line Your open. is

Michael Bilerman

Joe, growth get with views of Hey, around the just Bilerman just you with sort furthering issuance, acquisitions Smedes. here it’s your about. through Michael talked especially wanted the the to equity of that external

You of as a raising to give trading tapped how doing ATM, the got over equity, the low-XXs growth of goalposts sort still cap rate. and $XXX, desire down the low you I to be how million. X% us – you $XX continues which just external as stock to pipeline, do especially implied guess, the almost about at to expand? using Stocks there back you the ATM think some

Joseph Margolis

Yes.

to maintain neutrality our leverage goal our to to is strategy be maintain as So and neutral, we leverage – grow. we

find acquisitions, we our And for capitalize pipeline find we as need you as So – to grows, need we ways those. as point out, grows. our need to capital

seek as a did We equity or it, also tap will some is and we sources when proceeds. capital, certainly used sales, and example, sales We’ll – other it for for our use have when ATM use we need of capital. those we we have

use for a it. we’ll option equity we and So it, is certainly, us when an for consider have

Michael Bilerman

guess, $XXX $XXX quarter, you even pricing during the do between had, commitment to Right. developments. capital? million But and that seems think of second forward about the It acquisition it, call that though you million how the I the

equity your the to you $XXX. various sort around wasn’t assets? how I’m prices It only You stock didn’t ratcheted trying the close at of to get common selling until view up just to it. relative really views do

Scott Stubbs

Yes.

as appropriately our want from in was So perspective, OP coming light. we we’re guidance a we feel issue It issuance. equity bit looked unit like this gave year, to we Clearly, third we and is going at when cap market the little will an sell a to priced. for one It’s quarter rate. used This year, in higher better situation. asset below a that’s we that go here very

our balance So we’re today with equity trying issue, hand we’re needs. against to up cash on is, the

And the do so at point, we this this neutral. best remain way leverage like and to it felt was

Michael Bilerman

And how big is that asset sale just dollar-wise?

Scott Stubbs

It’s about $XX million.

Michael Bilerman

And sales is occurring of? the back-half aware we be there in other should year any that of the

Scott Stubbs

That’s the one only under contract.

Michael Bilerman

market will And said that you be rate. below cap

in talking to we X%, are So somewhere to to the X% X% X% X%, X%?

Scott Stubbs

low sold being will user it’s and cap it rate. a substantially storage to So be non-self

Michael Bilerman

And when appropriately as is the would $XX million appropriately you $XXX should when you we I valued, guess, price valued, current valued or appropriately you to say where – Scott, view at execute?

Scott Stubbs

to I on where place put we is it. have if the today think, a it’s the it time range table in

Michael Bilerman

you. Thank Okay.

Operator

you. Thank

Steve Sakwa Our from next Evercore. comes of question

Your open. line is

Steve Sakwa

Yes, Sorry, guys.

of maybe the expect talk Just there just that one been that follow-up. And quick Can change demand has do any kind business in change in real about to you you that And line? XXXX? seeing? you’re

Joseph Margolis

not business very steady think We many, for customers. have change demand been many from seen any in many, We years. it’s

to don’t we change expect in So XXXX.

maintaining to the XX% retail customers, our and raise rents customers to business our high stores on. very if peers. We us better different and we We the and maybe The with. can business our And happy They’re current bar between also customers. like to difficult customers can we’re gains. fill percentage business of than this is drive

Steve Sakwa

Joe. Thanks, appreciate Okay. I it.

Joseph Margolis

Sure.

Operator

at closing you. over Margolis, showing Chief Thank no to questions conference this I’d for to remarks. Joe Executive time. back Officer turn I’m further any like the

Joseph Margolis

us today. Thank you. for Thanks to joining everyone

to rates our and performing new rental well. XXXX We in expectations. investment platform heightened competition. our the occupancy ability are are pleased of with drive diversified portfolio, face class our following is In

to consistent this strategy property per external and FFO summer. remainder enjoys our combine to of share. you, steady to the I everyone hope performance level growth continue We growth with execute produce Thank strong NOI

Operator

and you. and you for Thank Ladies Thank today’s your conclude this wonderful does gentlemen, have conference. day. a participation,

disconnect. all You may

Extra Space Storage (EXR) 1 Aug 182018 Q2 Earnings call transcript