EXR - Earnings call 3 2023 | Extra Space Storage Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Q3 2023 Extra Space Storage and Earnings Conference Call. [Operator Instructions] Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jeff Norman. Please go ahead.

Jeff Norman

Kevin. you, Thank Space Extra Quarter Earnings XXXX Welcome Storage's Call. to Third

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

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

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

Joseph Margolis

Thanks, members you, adding July, going had new In joining innovation busy am X,XXX Extra over for transition are team demonstrating is employees our our and portfolio of the a The merger. thank very Space. to I and everyone, and today's quarter. We successfully stores our smoothly, with to proud X,XXX call. Life third teamwork over through completed merger the Storage we and Jeff,

Existing Revenue pool performance Space for level diversification, external growth and standpoint, muted solid third a be meaningfully XX.X%. rate provides moderation was driven will X,XXX continued greater of Extra revenue our the was behavior our opportunities, believe to of improve increases. portfolio quarter combined by Revenue the with expectations. increase same-store stay, continued in Our years line vacates was quarter third length flattened come. growth I and revenue efficiencies property of expectations. quarter strong generally same-store average and of high with modestly customer in to stores growth stability, ahead the of occupancy the operational X.X% for our acceptance during and From that

same-store was revenue higher-than-expected Rental new in the NOI, with the core expenses This from was beat lower steady in customer was G&A, internal FFO line our which offset was driven outperformance. offsetting higher year-over-year, for was LSI with modest by rates. a our tax came This quarter. with our of resulted third $X.XX. than at resulting increases. Short-term The estimates, miss by volume in our consistent Expenses forecast. the a property estimates in in in higher-than-projected dilution merger also albeit

We team, the target to million run have our platform as continue gain $XX we'll synergies rate we achieved additional and and of further portfolio. synergy G&A integrate

LSI we new existing customers these We is synergies rental up property rates started Space to the level consistent incremental properties partially revenue realize also as by auctions demand. move customer initially with have to catch to LSI occupancy due at contribution Extra improvements from lower rates the offset The and more lower drive portfolio. to FFO

customer we rates first the rate the FFO of up benefit we ramp will new remain quarter and stronger achieve build XXXX. run in and our we reach once However, synergy expected will occupancy, total confident to

the the LSI pace managed stores. LSI XX adding merger, very with continue the stores including managed gross management, quarter, to our have departures. of XX We new outside merger, LSI have the added slowed acquisition the third XXX active be third-party platform only Year-to-date, given in in but to stores not we we gross

We interest have to bridge also difficult have despite continued volume steady environment. the loan rate

Storage properties track, to capital-light in integration the line be Life with in growth and we The of channels. external active is performance level property short, on our continue is In expectations.

midpoint. same core annual our maintaining the tightened have we result, a guidance XXXX, As FFO for

performance We quarter. stores executing focused all our the in will our fourth on at integration remain maximizing plan and of

throughout have sector concerns. we the demand serious stock to been price. We and has share wars, our it concerns miss health, interacted people absolutely interest hard shareholders the the quarter, with those consumer economy, our rates, As have about

said, and I step and very diverse today. healthy. of it industry. not That the Occupancy Storage XX% to durable has the stand think proven back is be over Storage and and Extra we a Space averaged remarkably the in portfolio it where has important remains most in sight lose quarter, consistently class to largest asset

while customer XX% strong. remained higher rates, remains and than health pre-pandemic strong year, not last New customer as XXXX as levels

and to the future headwinds New substantial supply moderate to are development new increasing. continues and

fire drivers I storage, Our finally, and our believe team I ability believe Extra of bright. and to in the It strongest the we industry. to a Space in future platform be our remains in confident external operating am scale still great growth platform. have is I And and continue time on cylinders, all very to the further

call the to Scott. turn now will I over

P. Stubbs

hello, Joe, everyone. and Thanks,

October were was XX.X% third beats characterize year-over-year and the G&A. we a an quarter, Achieved average line, by rates in our third income of internal in As negative modest interest August in to and XX.X%. further projections, down to tightening new due September Joe the noncontrollable as gapping in would in to higher customers modestly in quarter and widest mentioned, expenses offset FFO NOI in miss the meeting property

September we we customer new that and seen liked rates. have have October headwind would to have easier continue Given from to more, the narrow a gap comps, but

been forecast offset end the as from range, strong customer and year-over-year cautious enough than but our enough high new revenue existing us these customer as guide. lower steady existing hold health performance improvement remove the whole quarter, performance headwind compelling been more same-store to hasn't customer our has revenue of revenue Fortunately, continues to our and raise a fourth factors to vacates revenue most to for year Weighing for guidance full continues the we rate scenarios up.

full X.XX% XX by our revenue year. of basis As bottom same-store points a the a end the to range increased for result, X.X% we of to

felt Illinois, from primarily in pressure front, taxes, property the and we greater-than-expected On Florida. Georgia expense

as X% actual guidance the NOI for We in in of year. the of results maintaining as range midpoint full X% both insurance expense revised QX of same-store range expenses XX our property run a a end resulting same-store recognize X.XX%. significant the tightening same-store low points basis also had for at We of increases the end to a taxes a well rate updated This in high premiums. higher and property the to annual range, expense of

that the assume. billion costs Storage's closing to We Turning did line of of sheet. $X term on and we our loan not to and pay retire Life balance debt undrawn drew an credit to

we Storage's and the traded $X.X maturities. Life in assume merger, bonds the billion With at publicly same coupons

broken With of to out the we market, we has to the and debt noncash which added the expense, interest core FFO. back bonds, these have been assumption mark

upgraded Upon S&P interest expense stack in to credit updated on future completion of assumption will Extra spreads our for credit on savings interest which of BBB+, the Global Space our and rate the its revised supplemental. to our merger rating included Details debt, debt and facility the drive company. are

updated pool. the applied provided not we ranges dilution provided In Storage The night's performance -- pool have to stores properties merger. disclosures and same-store the Storage referenced added then to with Life supplemental financials. portfolio. the combined pool the the separate associated stores quarter, Life the in related the are Life guidance previously to we to to Extra Storage related release, Storage included Extra for details last our I of for the performance same-store we Separate Space earnings anticipated as freestanding Last FFO Space ranges XXXX the our guidance

share, the of FFO the as midpoint. well range, dilutive per an expenses merger core to Our which to the previous impact $X.XX for and LSI was $X.XX transaction short-term add-back includes tightened transition maintaining as

key provided also to combined assumptions have the updates for We company.

our Life quarter line the coming was As our with performance mentioned, track. into expectations Storage Joe of remains and integration in the on

among believe is in to through storage most has resilient class believe our highly merger asset and an even it continue Life outsized as Storage become diversified and is for space. future the stronger growth. We portfolio REIT operating the positioned platform We the

it open questions. up for And Kevin, with that, let's

Operator

first Our from [Operator comes Goldsmith Michael with Instructions] question UBS.

Michael Goldsmith

the year up of Your low revenue same-store quarter same-store X.X% implies range outlook the fourth slightly. And full took end revenue at midpoint. of updated the guidance growth positive you

So November and in confidence what will seen you that this meet you range? increase and hit to October the interpret have And range? is expect we in December in guidance from should this street rates

P. Stubbs

what that October Yes, assumptions was. midpoint Michael, obviously know your are October, the does correct. we at it's have positive imply quarter. we largely, And entire the It for

should And hit confident we that so those we're numbers.

Michael Goldsmith

growth algorithm. ability Got my next strategy synergies based it. on responding revenue is Life the to to part the the Storage out portfolio about of from is the is rental Space question Extra Space, roll Extra the deal in how And

rates So how the Life responding lower can to and you how to walk customer ECRIs? responding Life customer through is Storage Storage also the the is elevated street

Joseph Margolis

question. Great

everything answer planned. So as is the is short going

We the same Life have than are even Space customers. Extra begun customers, at ECRI or sending notices to better the out and rate slightly Storage rate them accepting they maybe the

of ECRI LSI notices, on auctions elevated the We the the have catch-up from headwinds slightly the and occupancy portfolio. vacates

very slight the uptick So do occupancy that's we seen while in have And we've that a been that. discounted rates we in particular, successful, portfolio. in on the to web, and LSI protect actually occupancy

the make strategy continue really and playing and we're it the how bumps no happy out, road. in we is monitor So with to there's sure

Operator

America. comes Next Jeffrey Bank of with from question Spector

Jeffrey Spector

And you're as using and rate markets? drag, over on creating portfolio, integrating that will the think with that say, should you're that months? the How street let's about now mentioned operating take long EXR place? we occupancy. assets to existing street in you of rate coming How Joe, up overlap is build LSI some that that the the given the

Joseph Margolis

to occupancy through So the auctions. using I expect gains rates We and we're to I little the differently. more. until protect rate, it getting make occupancy significant We're in a think, really don't done describe might correcting

effect we but significant. think and expect that very So I season. With until on we don't specific, not gained don't occupancy, rental next to spiking, Space probably market and it's that's respect very stores, certainly Extra some

Jeffrey Spector

existing can let's today say, the quantify length you there. vacates? mentioned stay And And pricing then customer, X on characterize again you you of the strength the versus then the ago? power months Can versus,

Joseph Margolis

is I ago. question? pricing It not I'd say was right? what vacates. second also of So power the the guess part very new months And And than seeing strong. induced the don't which significantly the customers, We're to thing ECRI amount customers I a think is I'm same, existing of X different is power to same pricing sorry, greater about

Jeffrey Spector

If the you to the vacates versus were able stay? of quantify length

Joseph Margolis

not I sure understand question. I'm the

Jeffrey Spector

You remains Where strong stay that the and length mentioned of are down. vacates today? had is of length stay

Sorry.

Joseph Margolis

you No, understood saying. were I what should've

different to of So stay. measure ways lots length of

is XX.X in-place month which customer about year-over-year. up months, is Our a average

bit Is little but existing we Our as at higher normalize been a customers highs in is We've of XX% our for store a XX That's the XX%. who metric. That's that still COVID about than XX-month bit those pre-COVID. that also have continue months now, helpful? lost to little down customers. from

Operator

Our comes Truist Kassandra next question with Securities. from Fieber

Kassandra Fieber

NOI showed is sustainable? comps? easier So of because to you if Or current in we understand pace XXXX? should the at Or do expect deceleration somewhat I'm rates revenue an better of steeper if a deceleration. have quarter, this just stabilized Is that same-store levels? think trying deceleration and improved in same-store you improves

P. Stubbs

Yes.

easier So this gotten have as comps throughout through. we've year moved

what we out was how similar were to were of terms In expecting. it expecting, pretty what versus came it we

be for earlier, what in the and quarter go good negative As we we a don't expect up to sets we that things fourth hope mentioned us to XXXX.

up our going not a think think, holding thing. and is positive is I negative, I occupancy well

Kassandra Fieber

on rate portion then your shifting now, you you Can approximately Do Right thoughts bit. talk is have plans any XX% debt. balance is? your sheet can or your your And around the little it. exposure debt you Or debt of it planning variable are and gears give to us your where decrease variable your a there? variable. you Got of about keeping

P. Stubbs

quarter So our in up we debt as picked actually variable completed slightly rate merger. the the

merger, rate some we fixed debt. had the off to pay With

that's a will loan, that Storage Life to we to To be allowed private be billion years. had on bridge, X-year that we've terming prepaid. over loan, and X a that, the used a placement do $X bonds out bridge next You X weren't

So will be down. we bringing that

of net But If borrowings, debt down, receivables. about it's those we'll bringing variable variable be XX%. you look rate rate at our variable again, the

Operator

Todd Thomas Capital KeyBanc Markets. question comes from Next with

Unknown Analyst

just This update on that like October you for and quick, provide could Todd. Real looks an is A.J. what occupancy year-over-year? for

P. Stubbs

actually Space, the slightly. Extra to gap we is narrowed XX.X%. For the at has portfolios, a The gap X the Life October year, last portfolio X% were where ended last from Storage that same-store year. XX.X% It's and occupancy compared

than different made don't calculation excluded basis. occupancy or that going as ongoing adjustments slightly on make way Our forward Storage our occupancy calculation the is an we with Life calculated. they We're going

Unknown Analyst

is that what year-over-year? And

P. Stubbs

last now. actually I and narrowing year's It's don't right of me in have front

Joseph Margolis

to We haven't occupancy last Storage adjusted methodology. our year's reflect Life

Unknown Analyst

And know. to Good question. then my second

provided a around of million the you So $XXX color little synergies.

you have million How insurance. in synergies. the tenant million next that the in noted or think met You $XX the about gains several G&A opportunity to We meet the should some see over exceed guidance months? we $XXX

Joseph Margolis

significant G&A So of I exceed a the million. have to opportunity we think $XX synergy

Our guidance million. original that for was $XXX

Our original Extra of beginning guidance at the merger this contemplated. before the Space year was

guidance midpoint current is Our for $XXX million. G&A

to smooth. in we $XX $XX rate. But quarter. going every G&A some is fill G&A some still July out ahead XX. -- not of run additional closed spread to of through because in to million the quite X spots. And first X It's is the months the quarters. we're do not merger have be X clearly, it's So not our million hiring perfectly we on G&A years the higher

Unknown Analyst

and the synergies, do on much EXR's the customer to more then transition tenant upside policy to pricing? LSI you insurance how continue there? as can -- And you you And see

Joseph Margolis

space of and very to not that January policy only Life that Storage Existing customers. selling the are to insurance Extra now policies achieved little we're Space policy insurance we've insurance new because will starting the on the XXXX, premium. tenant So customers synergy from extra both space until X regulatory coverage of of the convert in but people and switch, a them which will the reasons. of was right? send We'll be they'll get higher be contractual robust also is out for policy, more somewhat light that But a has terms and notice, extra

Operator

BMO Our Capital with next question Markets. comes from Sanabria Juan

Juan Sanabria

even in is know as piggyback today asking wanted given the as Just expected But and a into comps on kind guidance. questions on based wondering moderated Should sequential give the I couple you we the is you it's passed have quarter, to of the what XXXX here that have it we deceleration on third market I 'XX. where particularly stand look 'XX that of think you further. moderate we that I'm asked. guess worst continues guess already to what to that, been are really not into

Just thoughts on there. curious could on what share you your

P. Stubbs

Okay.

we've clearly you I moderated If at our look deceleration that deceleration. year, through the mean

XXXX new implies today. where in obviously, guidance that guidance fairly the But Our think are continues well. -- we're customers in full flat be rates ready, a good give up fourth quarter we're spot. from existing to I We'd February. year year. are like it but easier get to we to up very we'll this we be set had XXXX has to customer compared what holding see also stronger, comps

Juan Sanabria

are portfolios you running at And portfolio? Or gap? occupancy the to synergies doing and that ask And I that guys keeping on able part the guess LSI between happy levels. LSI front you EXR that assuming different are that so, just if then occupancy the make the of entail you're to up I what close is in can occupancy does -- difference the

that Just how curious should on evolve.

Joseph Margolis

So and we revenue, get how dollars. we how transaction to we I'll you of don't get to really occupancy really synergies care much underwrote and we the the as there, as mix long get as tell underwritten

underwrote get to on of rate So, in improvement and XX% about we rate. a X synergies, X% X% at in we gap property average occupancy to occupancy and about and gap million $XX observed a in a improvement underwriting, in our we

to those So is assumptions. achieve to our do better better opportunity than

obvious. the stating for Sorry

Juan Sanabria

quick. I guess this a is

are LSI want different that at of you running you different close kind across X portfolios. would to Or happy the discount to occupancies So further gap?

Unknown Executive

you still are there? Jeff,

Jeff Norman

not you patience. lost of response. your the I'm in middle One, you before Thank us you, everybody, Could a sure reprompting it give question? where we Joe's the for answer

Juan Sanabria

gap? Sure. occupancy My Or goal the happy, the close you different was is I levels portfolios? to occupancy of guess, addendum that running are X across eventually

Joseph Margolis

it's the sales brands, pricing despite So algorithms, be the systems, process. the the same platform, portfolios same to customer the on the right, same will be run acquisition X same going

Extra a should Everything occupancy, on of store be run lower have higher Storage X So to run occupancy We Life strategy and maximize is two a don't eventually, running going to the revenue. Space portfolios store. similarly. very platform a

Operator

from comes Street. question Spenser from next Our Allaway Green

Spenser Allaway

I through your focused now? that now. remarks opening know walk you initiatives you where terms you're you're But capital on in best of right specifically of commented your use your just the asset-light can seeing right returns in

Joseph Margolis

low-double-digit So returns of Those redevelopment are to high-single, returns. the on capital a best stores. be returns continues existing

The X,XXX have add and have are you own to a look terms are we put have try can storage, multistory where to stores a them, relatively office, lot units of dollar of parking additional storage you You investment, or excited to to the the a single more those already in expect opportunities already program and now lots so at process more small and you we challenge very in future. and storage. find already land, have entitlements do with to story of make those in do you to a a and they're the lot we but team have

our bridge rate we program property, lend The sell now, include -- note into B on notes provides the And benefit is the is which of the return does capital. the not XX% is Another on. A whole loan on also and when rate the the high note, we teens XX% average now. very economic that managing

is can note. selling control very not because use capital A also the good of or we that selling a the So capital, by particularly

Spenser Allaway

be for legacy are assets the of in a the LSI And versus a delta radius the EXR the of assets? LSI for would have in-place you then do rents you have assets, competing a sense EXR sense newly now acquired for average that what

Joseph Margolis

we we or is we XXX sense or was that had identified drive-up is, a best tight one was similar more a those truly stores. for XX% XXX geographical time the of with in or Extra and LSI single-story about of was competitive type our store that felt this a underwrote one underwriting, of think store. Space store stores I delta multistory transaction radius in the the at very rate in terms And ways So

Operator

Our Rose from question from Citi. comes next Smedes

Bennett Rose

I I putting difference, you are, a I catch-up that. who on a just nonpaying wondering, Will customers little number options. a LSI guess, . part as familiar with less mentioned the customers? ask new just in portfolio? I'm a is just guess, and portfolio, it that And significant that to are the cleared wanted you of those significant make out guess, I of

Joseph Margolis

I mean a it's we not on in rely the a don't caught process a auction standard we store buy up practice noncompliant auction. when because prior to owner's

So lag. the to month that over again, process we auction leads start and several a

significant, So nonpaying re-let and units, them. out, think things, units, we of in have some not it recover and those scheme auction It's short run. the to does I months of temporary the several although have we occupancy pressure overall provide in we units,

Bennett Rose

[indiscernible] go picking Yes, over. sorry ahead.

P. Stubbs

bad debt IT you've either reserve. doesn't the really impact your bad already debt because accrued

it no impact occupancy. but impact does there, there's So

Bennett Rose

all? for mentioned slowing thinking are sort property quarter. could And I Is pace you be is we just -- -- about property for about just thoughts -- of of increases? your And then tax and of maybe there of Any wages taxes kind you -- the into you tax at it pace what there share? you of I thinking similar for just the benefits growth looking year as in sense might -- expense higher broad how larger next lines

P. Stubbs

Yes.

So thought the in it X-month we had decreased numbers. actually some

our made municipalities. Illinois looking property tax came on little hope think us, the actuals We Georgia property won We new and are were Florida behind year and consultants. pretty every appeals. worst we've We the reassessments tax were using that with is for of a the we local estimates some bit in how versus year but a surprised I good. the

Bennett Rose

And on is how wages and that pacing? benefits,

P. Stubbs

Today, of We hours more to Wages wage and it's last years we earlier benefits, to We slightly when easier as hire. saw much we've don't slow it higher in saw was pressure had the had years. couple prior actually we some. difficult it compared the year that the to hire. see

better significantly of Our applicant we've pressure and over flow not seeing the couple wage the seen last we're years. is

Operator

Morgan comes question Next Ronald Stanley. from with Kamdem

Ronald Kamdem

Just X quick ones for me.

going that in expect number of same-store Just of out a is sort messaging just essentially, that the the Or to X% downside, into wait but XQ going see? of number I asked for is to looking here without asking -- sort forward worse a figure things of to the is guidance. sort back turn year? XQ, to messaging it run and get unless still next rate earlier, I'm you sort think to take wouldn't good of got close is from trying this revenue see the if

P. Stubbs

Yes.

tell next for a it's So estimate It's we the for October given good run the early we've is Obviously, rate, think year. done. quarter. too to

Ronald Kamdem

marketing And sort X.X% Great. LSI you items. line at EXR. mindful just that took or the timing doubling these as insurance. decent I be rates? on the of up should it's then anything the Obviously, for sort we there of down same-store Is of can either are you expenses expense talk this in see Or back nature doubling of? about on whether sort well. Maybe run one year

P. Stubbs

the year-over-year Storage, big personnel Life more from line and the payroll came item. So increase

how rates have that our make we stores, we get. and we premium to managers, average, hours allocated that's on the Our more, get more and

So our stores. we are we operating them operate more like

is that's stores allocated same-store thing G&A. to different center call in technology we historically numbers the from they other their that The have and a charge historical their had

and in, those numbers we historical back went added to So their too.

Operator

comes question Goldman Caitlin Sachs. next Our with Burrows from

Caitlin Burrows

I was yet. I anybody's don't asked think -- wondering maybe about supply

it seen sectors, off fall in other new we've starts. So

any new on Have -- side. what So on was seeing seeing pushed the new kind what out just getting could comment you I ones started, supply you you're you're longer, either now? projects if noticed of any getting taking or getting wondering

Joseph Margolis

Sure, great question.

The then, was moderation to So every moderated. new year maybe we and since supply. XXXX in peak see it's continue

to that be period, and availability, costs, can of moderation. reports capital, revenue and in these underwriting interest drop that, be in We high are entitlement projects rates out debt in built. up kind expect yard other and to to significant capital, all see terms really pretty after rates to equity supply growth not forward we headwinds getting on XXXX construction for likely of more end see of deliveries similar are new projects But The those and reports you a XXXX. lot

Caitlin Burrows

dropout you And you would more the significant that has in maybe today is the than say just those to past? it that mentioned? rate last point, of been like factors Because

Joseph Margolis

of leading us one a someone an rate at industry. the Many statistics of York brokers where the said, very, but were for New to that's couple ago of in the from to industry have conference in a dropout I is weeks very observation don't XX% he XX%. thinks the that, who's close the

Caitlin Burrows

transaction maybe it. the Got then side. on quick just a And X

EXR transaction close? is in guess, storage still You recently, sense. market? of I bid-ask our broadly pretty could LSI quiet mentioned merger, on the makes to the it more cap you properties focus also? that pulled Or trading, spread rates Kind especially out which the Has on stabilized? comment has have

Joseph Margolis

market end very side. very side, Yes, rates cap would of indication just on a some as there's them be for market are quiet either you a buyer special see what the and don't it few enough making. seller our bring end transacting. circumstantial. think we do and that the story bid-ask transactions we transactions, are. there's why where the very That's I quiet. see that I could it don't It's transactions to or I spread. they on buy people characterize Many tell But was a an portfolios seems of There happen, up And it up

Operator

question Our next from comes with Evercore. Khanal Samir

Samir Khanal

markets guess holding a this growth from you perspective. those about they look at some last Sunbelt How and the boost into Joe, thinking give are your back well mean, Texas quite 'XX? Florida, year, you the when of markets, next the I revenue up that? in thinking got a top I in which year And years? are they're about I markets, markets few how do

Joseph Margolis

maybe There's that's growth. of One I is those factor. an growth, And think, performance. is job is things, have -- growth things. Sunbelt maybe One about. to important indicator X the job #X still and markets Job X storage think

of really XX% On has it's difficult the to of market up. a flip when years keep revenue a XX%, side, growth, couple plus

So a it's it's not it may because coming giving fast, healthy against just look market, as it's tough and comp. it's still a back but growing like up

the got the houses then housing a of It's which lastly, housing two And market. to is firmly is performance stay quickly going inform is come market forever, that people their and back. happen, when can't a events the wildcard believe life our how year. little next factor will will in bit I just be

Samir Khanal

prior And follow-up from then questions. as just a

think, mentioned for and underwriting. did the You to And about want I I X% rents the XX% is clarify, gap between LSI EXR the the today? portfolio say just on you gap

Joseph Margolis

we to underwrote said I No, synergies. our achieve X% underwritten

X things, will our gap if we can So we those and only that underwrote not closing rate the us synergies the give the occupancy gap at all do from $XX and closing properties. of million about half that

Samir Khanal

to finally, as it of that mean mean, similar you 'XX. maybe mean, at are on I pace that I I then trying this I'm of, thinking that that? about point? ECRIs. if further just And have you conditions moderated stay think has I you macro moderates guess, much sort if increases How think is, how in just

Joseph Margolis

the as much for gap might between comes that is Maybe customer as -- not rate be the the of and assume web discounted of in ECRI rate market might actual the because drivers unit. big we one the

rate gives the true customers opportunity come to through a market we're is. that significant So web the get ECRI where catch us of while now and to we're what for offering in into up time discounts the them period them to

Operator

Mueller comes Michael question from Our JPMorgan. with next

Michael Mueller

brand X X I'm versus operating observations are curious, what brands the on early far? so

Joseph Margolis

have So firm it's any very early. conclusions. We don't

that digital I we is footprint. see increased we think thing have the most important our

those near So markets you starts storage we're in saturated operating generic brands one me for when you're and or you storage use. where search of whatever X

You will and on branded Extra a Express store. also find Storage Life up Space both stores come search, Storage sometimes the

and getting real to So to have we program, the of estate. conclusions. very of ways we main but early, assumption success digital That's kind definitive draw can we the before more go a the it's quite are

Michael Mueller

huge And expenses, expense I how then know be in scheme years a insurance terms could relative outsized the few or the growth other quick things. And one should this in expense question. maybe in the isn't item overall next grand But how pool? of the of about they think to that over line we

P. Stubbs

on think claims. it will bit bend I a little

lots You had past XXX-plus of -- percent year Florida wind you if a in in Florida this in year. a really increase related anything Overall, rough saw had areas.

also on a to you've found those as money. I that they deep happen So pools rate as put think and caused in but sources it that to depend rise will places interest seen put other other events not some be

that making we have Storage used that insurers group we properties bids, competitive have So because sure will a in we the new haven't of the past. us help Life adding

bring down kind And seen to increases of this in we we've so should hopefully, be not year. able that and see the

Operator

question next from with Our comes Wolfe Research. Carl Keegan

Keegan Carl

occupancy, balance first year-over-year versus year? year do maybe I the trend guess where for to your on the last you expect occupancy of delta

P. Stubbs

gap And a I basis XXX about point through then gets XXXX, obviously, this gap that think year. assuming into We're moving easier.

Keegan Carl

the and just platforms. given kind opportunities? have the I the any seeing then feel platforms growth of guys Gold as internal you gotten provide if gears Life like And as I'm Got on curious shuffle you and Express these shifting external here, far could Storage. update X lost just are in it. storage What Bar

Joseph Margolis

Sure.

of we where there. is and full half really empty. on significantly really, side to we're growth And institutionalizing of is I integrating half and expense we've operations would half done chop the that. full is a So say, I the wood good job Bar outperforming The have think glass budget is more side, Gold, the

We we really we Gold bar and try historical rates And before it the attention grew to grow at at are at some bought growing rates that gold rate. it. Bar to want faster turn to a that

to operating Express actually, Life I Storage just platform, frankly, people business. way think days. Some mean Express is, all getting X and of software know integrate in Express we us to that, I then think, Storage. Storage to Life got XXX we a some different it just because is some harder is us stores a and understanding Stores of Storage It -- was business, attention way of It in lot the of know I progress. it operating. it was of months took on made different systems and a Storage getting X,XXX procedures. the because ways, XX the breeze a different There's Express of different doing with platform it's our on

So integration on we're doing very front. well the

more have managed markets, operate at several our markets They We stores rural not trade in. in remotely small traditional yield. X% bought the they in

learning a we good purchases. So we're feel lot. And they're

about work doesn't distance be that what We're makes store, exactly the it What it square from various foot, and per are should store attributes, a population, makes manned. an remote partially learning saturation Space Extra rent work.

XX-property run opened signed platform. just have We've up remotely. third-party We up a portfolio management to our be

We have a for large, stores of large remotely pipeline managed Management our platform. Plus

learn We that good. things, Gold, used forward, think was move similar Life the time platform I we that to expect And to which Storage accelerate. Bar to deal. our is growth to of that I I So growth as the think attention by slowed

Operator

back this call any like to not the time. any Margolis Joe turn I'm closing I'd at to over remarks. questions for showing further

Joseph Margolis

everyone, clear you, are expected. Thank time today. that I as going things Great. message was hope the for your

Our we integration proceeding of Thank many, forward week. are much. in very you realization look of Angeles very next well, you and and many to seeing synergies Los

Operator

conclude this gentlemen, does presentation. and Ladies today's

and may You wonderful day. disconnect, have now a

Extra Space Storage (EXR) 8 Nov 232023 Q3 Earnings call transcript