EXR - Earnings call transcript Q4 2019 | Extra Space Storage Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Fourth Quarter 2019 Extra Space Storage Inc. Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your host today, Vice President of Investor Relations, Jeff Norman. Sir, please go ahead.

Jeff Norman

Thank you, Latiff. Storage’s and Space earnings end Extra call. to fourth year quarter XXXX Welcome

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

of other management’s because February date after assumes update represent The company revise as or obligation statements of any conference forward-looking statements conditions XXXX. circumstances estimates no market XX, to or call. the this changing today, of Forward-looking

now like I over Margolis, Officer. to Joe call would Executive Chief turn the to

Joe Margolis

XXXX new Thank joining external Storage. year for significant us and XXXX quarter thank fourth and results call from for end interest for everyone. solid in delivered in competition Extra your you We supply for Space and our Hello, despite growth. you

occupancy since same-store highest XXXX. the the ended mark Our year end year XX.X%, at

we new XXX days platform progress every our into X.X% of share The to Our durability additional X.X same-store property of average. revenue business growth, platform increased to platform. meaning team. the majority of a and X.X%, acquiring and impressive new stores core third-party demonstrating stores external stores our added the increased the diversified NOI brought system with growth were per We X.X%, FFO XX management on the these increased our an had portfolio and

bridge other launch P. innovative loan our external found new enhance and of investment a ways transaction the W. preferred Carey, including with redevelopment with net SmartStop, a and to lease program. We equity growth, also

All adjusted million Extra invest Space $XXX of helped approximately attractive at these risk efforts returns.

end our the our another optimize Over an highest sheet count peers. our S&P shareholders de-levered and achieved highest proprietary XX-year that decade rating The Storage XXX REIT balance the importantly, BBB S&P. of of incredible fourth we an sector. We Extra in grew a us companies Most by of consistently of stable more and year, all the that outperform traded stores, the but technology of We developed regardless solid any helped provided XXth store XXX%. to and only performance quarter return publicly marks performance. than X,XXX increase not time, from Space of

growth of the the our proud value past we success the to are for and support our of partners the We lenders past who and experienced years contributed We XX decade. shareholders. over appreciate investors, created it growth our over the and

million companies. We also us to and XXX made vital who hard over such and led performance be Top the team culture out over Work work X employees The of Best Glassdoor of acknowledge this contributions, X,XXX in values by Place dedication possible. named to of

be to is the while find to of celebrate proud we and a an headwinds operators cycle the all and The customer high the flows of accomplishments to occupancies, advantage to incredible The business depths will successes, is average but the cash Self stable we real mom-and-pops. ourselves it and focused supply increasing marked increasing will our performance, are stay, be it continue over continue we even While all we future. have faced of in by in even of believe demographics, are hallmark XXXX by horizon reverse. our cycle, in But moderating this while Most we are we in no XXXX. dampen used large past lengths present of on longer increasing on demand, more of Storage. in an age important will and enjoyed the the continue disruptor

are diversified to in solid XXXX us. provide sophistication the to our leveraging decade ahead portfolio We experience, returns in our and continue our committed technological of and to

I would turn over to to now like the Scott. time

Scott Stubbs

Joe and hello Thanks, everyone.

lower Our year taxes. share, for and beat the FFO per primarily of was the attributable income of The was our core $X.XX high-end ahead guidance. expense to interest

by During achieved insurance occupancy due to lower expense also tax, with and revenue property a providing and were line higher increases primarily was the growth quarter, in rental Revenue with discount rate were Same-store and in tenant usage fourth expectations. payroll. marketing elevated growth benefit. expenses driven

with sheet we balance to that After to continue credit now capital. we on access obtaining our will our improved S&P, facility XXXX. types from BBB expense our night, provided pleased We our for be and the all credit Last rating for quality interest qualify assumptions and pricing going of annual forward. lower of guidance

XX for of total by stores same-store XXX new will Our a increase pool stores.

same-store pool benefit revenue by only over in or basis change the the to expect We XX year. our less points growth the

The growth them moderation much expenses do XXXX. experienced end be expected moderation expect continue not new due from X% growth Illinois, in expect taxes and expense to revenue heavily growth increase Same-store to New are supply is increases to X.XX% property to to pressure marketing in property continue our of same-store do into XXXX, increase and weighted XXXX the We to to same-store X%. is outsized. through taxes projected gradual XXXX expected revenue X.XX%. to expect but Florida, York to in Texas. We we and as that

difficult expense payroll we due addition, a In anticipate comp. to XXXX higher

results guidance range expense the the positive a and high end. X.X% of revenue to end negative low X% in on of the on expectations growth same-store NOI Our

million closed XXXX, we contract. in invest acquisitions, which to $XXX $XX million expect For is under approximately of or

million expect We bridge in also $XX invest to additional loans. an

be Our assumes net financed will and income guidance operating with debt. growth external

externally. ways we to will be disciplined, grow As seeking innovative opportunistic to committed are in always, being we but and additional

accretive and plenty liquidity become and have growth pursue available. of as We will they proactively capacity opportunities

from estimated for to share. XXXX, $X.XX, $X.XX O core of C an of anticipate dilution from year down In of per total value-add XXXX $X.XX be of and additional full we levels. from stores dilution acquisitions $X.XX $X.XX to dilution FFO $X.XX Our was

With let’s Latiff start to turn that, over session. now question-and-answer our to it

Operator

Instructions] of Our comes Bank of question [Operator line Jeff the of America. first Spector from

is open. line Your

Jeff Spector

Great, supply, Joe that thank you tie and talk pressures If – we but you. can ‘XX the a can same-store more about bit your comments can ‘XX for little think and guidance moderation, continued a bit more? you talk revenue again from but little about I discuss please over talked

Joe Margolis

Jeff. Thanks, Sure.

And growth revenue was but growth we moderation initial to been in It somewhat guidance. it decline delayed in in delivery and moderation a that from have new as was we several in landing was delays soft discussing due XXXX, the a supply. of now for and revenue later likely the So experienced our somewhat year. years

the end a Our XXXX pace by but we declines, over the revenue year. guidance And be the at moderating believe indicates year, it will of continued growth flat.

Jeff Spector

weren’t in provide supply pressure ‘XX. Okay. But And for then markets? to you think peak guidance obviously, am about supply supply ‘XX comments say I willing to trying were you into pressure your know more guess you about then peak forecast in previous so guess I I I can and ‘XX, continues in estimating just think be on and versus to your color that again that your the markets, I

Joe Margolis

Sure.

in see in we So, XXXX and believe in about we experienced We deliveries XXXX. moderated a more in in significant deliveries that peak do our deliveries XXXX somewhat third. a markets by still decline

you we XXXX, in rate Now still but XXXX years. fighting significantly although that’s ‘XX. the from the or we rate that through hinted we But seeing light do the some deliveries are see tunnel. decline market than the in impact accumulation is greater the XXXX delay as as supply assumes end – this the that development at in X in why are to the said, assumptions in being greater same a past plus of at And push our of cycle

Jeff Spector

Okay. to much to nothing? spend you ‘XX pressure higher the or initially If you revenue again less guess the follow-up – we marketing Does expect company decision marketing anything do in with forecast ask mentioned spend I from than can or those have spend less to I stabilize, a to marketing one on lower which was comments on tying thought. then,

Joe Margolis

No.

thank First for of you that question. all,

important marketing spend dollars, for spend clear spend about Marketing be akin ROI is. marketing choose we we than us. so and of are we that marketing revenue think is X% that spend doing to what When we because on I to is less a it’s dollars an positive track investment. can

budgets giant increase can rentals generate it that impact our in and business spend. being said, a have spend. a you do a doesn’t when margin have high have That So by moderate marketing XXXX you

quarter end year. first quarter we a than to if we because a over we have And due good up and have more in of moderate see that comp it’s it’s we impact say we will me, going and we going have feel with We to XXXX, excuse the increase, life greater the a bad know believe a and that spend but of frankly, the do impact it’s money first chose return. do, our spending to budgets to

Jeff Spector

you. Okay, thank

Scott Stubbs

Thanks, Jeff.

Joe Margolis

Jeff. Thanks,

Operator

you. Thank

the SunTrust. from Kim Our next of of Ki Bin question line comes

line is Your open.

Ki Bin Kim

trends Thanks. to rates up talk in February? about Can you you and saw promotion those quarter Street January, the

Scott Stubbs

Bin, Yes. is Ki Scott. this

because year. we to The we when it’s year. it’s attract the customers, we lapped looked current throughout policy what different, continue to have we promotions discounting use but So with similar last little things to did entire a how quarter our pretty done

year. in of the less of the first the fourth had three had it than benefit quarters discounting for a So, quarter

did discounting to Our to similar very what in XXXX we assumed trend in XXXX. is be

growth mid XXXX, first low year, the If start need our the first the of you rate and to in occupancy year. to look had of single-digit we at the rates probably at fell. you At

So basis more to not bit in our only made points also little year-over-year were our and spend, XX – about occupancy we in be our rate. below a we by but on aggressive a marketing midyear, decision

spend The rates where jump. is worked. with we lower related the occupancy then X, when of the We we and it a year you the July finished remainder rates dropped ran special year starting to primarily in caused with And rates special pushed tell to started close and that throughout during July X% July the doing So flat. X% the we of additional up and marketing or month we would that.

to of occupancy rates little that lower grow bit. end continued grew combination expanded occupancy marketing the achieved the from increased we our year, the by year, rates spend and so pushed our of but about we to to So, we closer as a occupancy maintain rates, slightly it caused negative end and up points basis the end XXX towards flat, to of the actually June were of through on and back that

Ki Bin Kim

is what implicitly I And because – your tougher lever, promotion I your in know and in everything usage, rates guidance usage one will Okay. is for in Street implicitly but for become just promotional the not of kind XXXX XXXX? a guessing guidance, it’s in comp because am related,

Scott Stubbs

is rate Yes. and we to detriment and the usage benefit all are not combination X.XX% assuming a comes of there any in growth from or XXXX Promotional in X.XX% the of occupancy. any

Ki Bin Kim

you. thank Okay,

Scott Stubbs

Ki Thanks, Bin.

Operator

Thank you.

Your Citi. next Smedes from question of ahead. Please go comes Rose

Smedes Rose

about to you are a seeing it’s you quite some flat comments At attractive expect about thanks. just your relative think you I you little JV sort outlook. year-over-year? reward just that come what And where about to and wanted of least Hi, on talk I you then it if situation. ask was a the just forecast, in looks side And I – down acquisitions before that risk bit talked to was last your maybe more and relative why year. guess how maybe and lower a it bit could our

little more So just if bit on a well? as the your expectations JV wondering maybe could about side talk you

Joe Margolis

happy Sure, Smedes. to,

into with over year it’s into worth the think I So $XX $XX in entering went of we recall XXXX deals pipeline we that million and million, important million of $XXX deals are to in with pipeline. the this

developments the to of several have So, years due we our of less kind ago. slowed to deals come CO that lot – we commitments significantly A to that we going in bag less and down is about. know is

much is to turned am now market. out of So a product we don’t good delivered be that more being new I fewer into happy have those there and delivering decision. today’s

deals we being and them, in those of XXXX of our stores XXXX the we we are an those. but we lease-up side, on is the the market. purchaser weren’t few few brokered just and not stable active market There view market. the properties, very prior rely we Most less stage on future of bid returns good of don’t in in markets see And than just competitive those on in some good of and are years. are and frankly, acquisition very like the is price On least lease-up we what that of very see the and

just Carey So going to to we be have were that to didn’t are their market in we successful or at to are to lot people what I means deal. have time, preferred we get try that program in can’t needs equity to bridge are talk like shareholders. create we produce so the our of to loan see we going tell and you know we see W. to and to are going value talking do can and to ultimately P. what that that creative get going was tell for we that voids of but is a and to to XXXX find use the accretive I guess try our how And I a going the capital long-term couldn’t you our that investment deals a beginning or advantages that and were

So in trying specifics the bunch going market us. how everyday people are good of create I we can’t smart to are out got working who grow we I give for tell deals externally, to a you of do you but

Smedes Rose

Okay.

just sounds characterization pretty kind maybe are of the already Is that and product like front, they And much in fair are of assets, quality looking change seeing? sort a market. pricing you stabilized what less so just acquisitions on it the of on aggressive at not

Joe Margolis

didn’t venture is apologize, That answer And joint fair. Smedes. I your I question.

the sense to money to for will insurance, ventures other will are a we partner of it’s debt of than or are joint way then the tenant, because And once go risk then make of find more and returns correct that when – try attractive best hopefully, or through this joint and we venture in whether promotes we venture fees, reduction And environment cycle stages. the we market find the out will we fees in enhancement of us. today’s you deals deals, of those some find So, determine someday form with other capitalization. management with and stage and are in that joint capitalize

Smedes Rose

for Okay, the color. great. Thanks

Joe Margolis

Thank you.

Operator

you. Thank

of Your Michael next from comes Mueller question JPMorgan.

please. question, Your

Michael Mueller

Thanks.

clarify you year-over-year X% growth by fourth when year to something, a talking want revenue flat to were that and be would subside Just year XXXX you by end moderation moderating throughout was end, that being or expect comment about quarter the growth?

Joe Margolis

the I wasn’t No, X%. I we do quarter am on fourth sorry expect to be if that. not clear

expect decline have in We the revenue to growth stopped.

Michael Mueller

mentioned it. say about length got can talk it, longer Got a ago And then another and question, today versus is? different it X ago you of years how that you years stay, X

Joe Margolis

single-digits, it’s of consistent very Yes, length but increase low slow it’s a stay. in

Scott Stubbs

in months, over of has just that’s everyone that moved is today average XX Your and out length moved average stay. your everyone in of terms of

Michael Mueller

Got it.

Okay, Thank helpful. that was you.

Scott Stubbs

Thanks, Michael.

Operator

you. Thank

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

Your line open. is

Jeremy Metz

those you think which go? slowing Joe the of I of just And to trying light flat? the and on finishing comments are if was ones do XXXX your conversely, so of here ones for Hey, you year still revenues of to and or do kind of at you how XX wondering think tunnel which the of top markets, just that inflect it am XXXX I some kind you the some in gives at have versus call guys. I confident, look think end the here and guess

Scott Stubbs

starting are continue growth this the and maybe on downside to saw with that it hurt could you year our three New that York market. to we New of somewhere year. and top one slow assuming will potentially next Jeremy, slow starting Yes. Jersey, throughout are It’s revenue we the us markets

us. a that’s market very So, big for

out hoping upside Dallas we markets big continued us quarter market Orange to County that lot Not potential are this for Angeles, seen make have Los markets both Dallas we on big you Miami other upside, is supply another one has are have for and the us. and slow but potentially are a bottom. tick assumption are Atlanta optimistic bottoming maybe And a doesn’t that up saw Another and quarter. seen of that necessarily are trend, and

Jeremy Metz

on far? am was anything has a maybe a wondering And on wrong maybe was market? seem did it last that book, and loan yields just and you gears, getting Switching in the the Alright. year, little late if how like going sort what I those reception are the just so just received of then read, but pipeline the that’s larger, been how

Joe Margolis

No, pipeline pretty Yes. robust. is our

term $XX about signed We in $XX have million, sheets. I think million

term of $XXX and outstanding back loan. with another are another and have million million We forth sheets the on $XXX

those loans hit, a the take we don’t partner will The to is the the So involve yields or lot will. of very activity. how keep on There but of active. our if we whether loan you are whole know many value depend piece debt on

loan, keep whole we our So our piece placed fee and XX%. yields, are insurance our management to the tenant if X%. XX% partner, not we including with if X% to is yields loan the A And

Jeremy Metz

it. last the platform, adding Got which third-party me is are adding the on you from them. you just with and stores one just or And frequency mentioned

more So grow scale markets, about take further you in business. how got any to are the discerning growing you’ve point? But the today now past third-party turning many are the more here. know that used thinking platform you down scale in at you from and to contract almost this and I being

Joe Margolis

like hope didn’t I guys take – that. didn’t our any we I contracts hope

you absolutely think right. are I

they where because too of away not big in It’s cases, to some – are think still don’t at build being on tell it because good if we believe pace. we we it’s should If more saturation we’re in the too platform the that today discerning but manage a more are don’t we and do. project. and growing going We lot it’s that development, a in is, market it’s they small properties and either frequently turning we property people, it

to and have pricing We be our without it the case. it out not would of was our compromising to this that’s structure. concern our similar and structure lot to expect growth I to of are properties have – to as attract pricing peers turned last year new there the continue doing when that of attract, we that business, a some entered year number change we that know the

structure at. to We able we’ve been the and rate our maintain pricing grow are that at growing

Jeremy Metz

those of development to bulk And right are think on the the kind of upfront, way the still that’s about? lease

Joe Margolis

XX XX:XX, like XX and development probably existing. It’s

Jeremy Metz

thanks, Joe and Scott. Thanks, Great.

Joe Margolis

Sure.

Operator

Thank you.

question next Hughes of ahead. Jonathan James. from Your comes Raymond go Please

Jonathan Hughes

Hey, revenue continued good you last afternoon. to growth year, Joe, of guidance mentioned earlier but deceleration. last basis year’s similar only implied point deceleration growth year revenue XXX this initial

Your greater basis implies this guidance than for decel. XXX year a point

night just of low So conservative. incredibly the in then I I realize better year. level maybe am just seems, and embedded that’s throughout the trying the I’d given But or it’s conservatism last to lower concerningly either to set outlook bar understand say, And guidance. raise the

Joe Margolis

you it in guess on where the up also than I ended with. full So lower fourth depends December And the we quarter. end range

our XXXX. in project than XXXX So flatter – de-acceleration in actually budgets

Jonathan Hughes

than average because for was entire December the the Okay, lower fourth quarter.

Okay.

Scott Stubbs

Yes.

XXXX. You closer the X%, you quarter is which if that X.X%, starting And for ended started average our to at for you X%. can the quarter, to then closer point you guess

Jonathan Hughes

Got it.

given what guidance in and adjustment from is that’s a, the take XX do Lake level obviously are you they budgets the strictly and team as Okay, that that’s point the your when helpful. get basis rolled then Salt City? up initial with come then portfolio. say, or into issued no apply in property ranges from Do overall the And and haircut in budgets, you guidance

Joe Margolis

as the out, process from involves from Planning a up also and you coming department. approach field So and Analysis our Financial our point budget both, top-down budgets

set – of We been a the deduction. it’s both kind both into put don’t So budgets. have have

believe that. we For whatever to reason don’t do We produce in that believe we and try we guidance can that achieve. we

Jonathan Hughes

through did a is you reconcile top-down pick obviously, and do that the bottoms-up, big or I if So and the go there divergence between you, one other? over mean,

Joe Margolis

that. to is reconcile Their job No.

Jonathan Hughes

than rate alright. Okay, or frequency are offset some since you rates? at existing as me, a tenants then increases last to magnitude And ever looked of move-in have way one weaker renewal the for stickier seemingly increasing

Joe Margolis

and So you I increases. Space and would to is different we test across business, including tell innovative, of things Extra always new trying thing about rate all one aspects the be that are

Jonathan Hughes

give details a you that Can any is or proprietary that Extra on to Space?

Joe Margolis

going give to details I any don’t that. think on I’m

Jonathan Hughes

time. Alright. Fair Thanks for enough. the

Joe Margolis

Thank you.

Operator

you. Thank

comes KeyBanc question Thomas of Markets. next Todd Capital Our from

Your line open. is

Todd Thomas

Hi, thanks.

might will to the back or XXXX growth of relative in the peak Joe, begin flatten to question, growth What flattens leasing the late flatten will point deceleration that the in out gives that that your first recover growth out late year Just in season you in comments this revenue at ahead confidence out year? ‘XX. fact to suggests in ‘XX

Joe Margolis

So of we’ve for at year producing been many years. annual – many, time performance estimates of performance this

great our We deal how times different experience the during have of season. in perform of stores a

what have, confidence record therefore, deal is, I We track have at great a put we and in least achieving the of a numbers think out. good of really our guidance

Todd Thomas

and And does move-in in a thought that nationwide? rates recovery process, that does the include across of asking rates sort system in also –

Joe Margolis

rates one can into that but And we performance many be course, cases, rates other of So are, driver of will use. revenue. well have tools project, we the as we in the input

Todd Thomas

SmartStop that the that P&L, or the – in being guidance Is preferred through just income is else? Scott, accounted somewhere then treated for? income Okay. flow is how curious is that the where interest in And or dividend the I where I’m guess that does or

Scott Stubbs

management we really in in income. management other now, that roll other I – mean, into fees and it up It’s it’s fees, in right but is but bucket. It income

Todd Thomas

Okay.

$XX million for million to in line, So assumption that’s it. that got $XX included the

Scott Stubbs

Yes.

Todd Thomas

Okay. Alright, thank you.

Scott Stubbs

Todd. Thanks,

Joe Margolis

Todd. Thanks,

Operator

Thank you.

from Our next question Morgan of comes Stanley. Kamdem Ronald

is line open. Your

Ronald Kamdem

me. from Hey. two Yes, ones quick

is so back the taxes, do. about the forth? back sense sort room in taxes us of property what expense guidance on to counties total going much a the you fighting are of Can on how going and going give – based thinking and to expense to taxes various the on side, Just to there property outperform

Scott Stubbs

Yes.

rates part low they appeal as our hard as major with cap increases, to are. continue your is being we So

there Sometimes used process seen today longer in of defense a But appeals of a lot much we values. terms be. don’t we the to being have have than it

actually go those and like to Some have of court that. to things

So we have things. appealed

Our does winning appeals and of amount of upside have a not those. in current guidance significant terms

Ronald Kamdem

seeing then the well marketing online about some talked on what the spend as there any sort trying And – of as last environment alleviate in side? Can pricing operators Is a of marketing as the Helpful. more think any – the there? quarter, color public private terms is to making year, to spend, you’re is or you previous it it more on Thanks. going any provide advertising. you I competitive, room is back a for as pricing competitive of more lot just just same getting sense that get

Joe Margolis

seen, in again, in you auction the had real flattening and increases to test season. we – hope if use that a We continues. come the But market, during will word leasing will

Ronald Kamdem

Thanks. from Thank it. all you. That’s me. Got

Joe Margolis

Ron. you, Thank

Operator

Thank you.

Green of comes Allaway Advisors. Street Spenser Our next from question

please. question Your

Spenser Allaway

you. Thank

key But lot about will new the supply You a guys see most you the new color little levers. when regarding ‘XX guidance talked peak? you bit supply? your And just for negative your impacts from ultimately underlying assumptions around more a could have and of think we provide

Scott Stubbs

that is XXXX for supply assumption is our down. So,

is in We in XXXX. rate supply We probably less saw we deceleration impact of than We are it We’ve think and our peaked coming XXXX. peak XXXX. in be in ‘XX. steeper last still seeing than saw year ‘XX that

your is is. in impact all of that it peak definition when kind of So

Spenser Allaway

you. thank Okay,

Scott Stubbs

you. Thank

Operator

of comes The Sakwa Steve next from Evercore. question

open. is line Your

Steve Sakwa

has industry. to now footprint, its made way this competitors of the guess you’re small kind I have I’m Clutter and these not of seeing wanted I’m right different back reasonably appreciate an I a small in companies the hat and in thrown also about I about markets? you go UPS how Thanks. but relatively MakeSpace ring. in earlier sort And like some in to curious your of Joe, are disruptors just thinking of much thinking different comment can

Joe Margolis

Yes.

they We’re and in certainly our eyes that keeping on monitoring open. on we stores the and eye markets our wide impact active our are are keeping

and that are now huge and entry at right I businesses We York turns to I be those see me indicator. if just not positive New to in I them. But it companies usually indicates something that I change that’s don’t And Clutter want. those customers see dismissing to also it don’t City. in see business look hard and barriers strategy a buying out not into a our assets

Steve Sakwa

question And this page the small our really I technical Okay. X-month – Scott. your is guidance LIBOR LIBOR just sit. lower is current for a then than X-month assumption on where slightly

So, kind of view a a kind or or are down, you are have assumption of just a sort that of the curious you kind looking was of rates that forward about suggest going do different curve curve just determined? how at

Scott Stubbs

curve, and average does for look LIBOR at It’s an forward rates down. imply we the the year which that are going

Steve Sakwa

Got it. Thanks.

Scott Stubbs

Thanks, Steve.

Operator

[Operator Instructions] We SunTrust. have of a follow-up from Kim Ki Bin

open. is line Your

Ki Bin Kim

Thanks.

plan you billion for this follow-up have is that your of did on year? a about debt refinancing guys you $X talk question, Just rolling that Steve’s

Scott Stubbs

billion has without million of really Bin, due million the The is of $XXX we convert needs Ki due to is that majority $X have part some in year October. care a so of extensions. comes year, what extensions. About that of coming that $XXX taken first Yes. this get this

some We line of a will likely out offerings most take that terming likely over of and that combination bond time. our out credit, then with and

look opportunistic approach we be the market for on So will we those. when to

Ki Bin Kim

the what average look to is rate what just refinance that simplicity for is you interest sake, would versus And that? maturing

Scott Stubbs

Yes.

years also there – And today term if So XX rates they model versus we’re to looking more million is we our coming but there are the stay at going is $XXX X.X%. are X.XX%, today, in closer potential assumption is at our piece where to And benefit. looking low X that’s years. is some

Ki Bin Kim

last you we about answer. earlier just I I January don’t asked share? Any you And I insights or can heard think February question rates, an realized Okay. that when

Scott Stubbs

where flat. we to are the to year. similar negative ended slightly are rates So They

is in occupancy – have to occupancy delta also we’ve that Our continued year-over-year.

So keep year the are slightly were of to at good we rates full continue and end as things to the keep better. as they things

Ki Bin Kim

again. Thanks Alright.

Scott Stubbs

Bin. Ki Thanks,

Operator

over back to time, Thank I’d the Executive remarks. Margolis, you. closing Sir? At Chief for like Joe Officer, this turn call to

Joe Margolis

Thank you. interest of certainly the and We over market. Thank today growth participation declining Storage. supply Space in everyone everyone’s new Extra understand in for and impact concern your you revenue

innovative important project FFO However, do development not to good we with of will support I items. and of are, high cycle, tools, an step to to the extremely back we we and acquire many is to it’s would all a bad ability is look I this say, continue big including part X% grow delivered, Even growth, risk-adjusted this which, supply growth, and we given FFO result to to result. at over returns. where are have think new core at We occupancy, Even execute in can toughest our strategies some picture this ways because direct so and smart with a we innovative deliver the explore customers.

Our works. machine

even supply revenue had new have same-store positive have We growth, delivered markets. in property two-thirds though their of our

We have have take of to flexible we presented balance acuity And of an in market. been opportunities multiple advantage us the to allow access disciplined market. sheet sources and improved in the rated and debt to capital acquisition

stretching to deals. get not We’re

buying are not things We just to grow.

without business continue very to plus compromising our and grow remaining We our disciplined we management pricing structure. are

much. but we opportunity I very know times, in to and beyond. Thank I about our excited are you in am outperform So, difficult XXXX very

Operator

Ladies and call. participating. gentlemen, this concludes Thank conference for today’s you

now disconnect. You may

Extra Space Storage (EXR) 19 Feb 202019 Q4 Earnings call transcript