Extra Space Storage (EXR) 26 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Jared Conley	executive
Joseph Margolis	executive
P. Stubbs	executive
Ki Bin Kim	analyst
Jeffrey Spector	analyst
Michael Goldsmith	analyst
Brendan Lynch	analyst
Ronald Kamdem	analyst
Todd Thomas	analyst
Juan Sanabria	analyst
Eric Wolfe	analyst
Keegan Carl	analyst
Nicholas Yulico	analyst
Michael Mueller	analyst
Salil Mehta	analyst
Omotayo Okusanya	analyst
Jonathan Petersen	analyst

Call transcript

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Extra Space Storage Inc. Q4 and 2024 Earnings Conference Call.

[Operator Instructions]

This call is being recorded on Wednesday, February 26, 2025.

to you. conference Please like Jared to now Thank Conley. go would turn over the Mr. I ahead.

Jared Conley

Thank Space you, Storage's Extra Fourth Quarter Ina. XXXX Earnings Welcome to Call.

supplemental press have to website. release, addition on our our furnished In unaudited financial information we

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

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

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

Joseph Margolis

Thank joining that I teammates the none today's people impact safe, had properties. you, our fires. recent like to first happy our California of call. everyone, our suffered address the to on for you, I from would properties begin wildfires these call, and To all have that thank of damage am report Jared, and are the and physical

by our the some that families Space of in personally their peers everyone fires them and the directly at impacted best. recognize the I and were wishes industry and Extra

negative gap from near-record FFO quarter allowing and our in year-over-year X% us at to new fourth share. slightly to of the to negative expectations. customers internal Core full was was demand to Results Operationally, per per the and were third the $X.XX the to occupancy quarter in $X.XX share was quarter. year-end. year steady maintain core Turning compress X% FFO ahead rate

an new are same-store net of from improvement of a basis, X.X% our effect decrease from line into which the rates, trend still occupancy in on we quarter, continued the customer a expectations. was that The headwind seeing year-over-year left are experiencing quarter. a in has revenue headwind we resulted growth lower with While a first in rates lower the

rates. than our occupancy expectations, of resulting the guidance. property driven taxes Space exceeded the Expenses same-store same-store benefited by year negative lower our higher by slightly midpoint same-store the pool estimated Revenues growth, NOI above in And from finished partially LSI for of strong the like pool, Extra X.X%. offset

our our have As brand announced, the we Extra all and concluded dual moved test of brand. have previously stores to Space

to including starting savings benefits positive are and increased developing activity. move, and this We of rental still marketing in the see

Storage former in stores We Life Space outperform legacy to the Extra XXXX. properties continue expect the to

growth. external Turning to

XXXX, strategies through firing in and growth investments and structured Our market investments off these yields In diverse generated occurring cylinders. fourth all on million at relationships. invested channels wholly owned $XXX all were existing various we with million in than are our Nearly $XXX venture, industry more quarter. the attractive joint

$XXX bridge in the origination quarter, loans million $XXX in originated total fourth loan bridge million also We to the bringing year. for

Life to managed Our store total growth bringing industry-leading stores from net Storage quarter, new third-party grew new XXX third-party in the for ever, excluding the stores program merger. year management net by year managed our fourth gains XXX, the best

insurance, expenses, to same-store generate headwind, particularly were would Yet taxes for an price in another industry-leading able NOI. estate and were Extra our our third-party sensitivity. ancillary revenue modestly bridge other offset environment generate diverse Space revenue our cycles to through management, marked I we real growing us market. this positive new of as were summarize all and and same-store year-over-year we Outsized streams of allowing as in investors' XXXX well modest was supplement in returns allocation to it reinforces occupancy the growth. tenant growth during lending leading strategy by a FFO focused and despite This lines growth year solid customer as strong able prudent to storage Storage capital to control Overall, maintain performance business negative follows: noncontrollable expense

expect We returns future these supplement market to streams the the recovers. to additional revenue property continue in as

and capitalize that confident to core looking forward well occupancy the to as in higher the are XXXX. We that progress we on us fundamentals improving portfolio business market positions is we demand through our are

business efficiencies the sector. We to will in drive find continue to growth scale areas FFO to other leverage outsized of our relative to our

the I to will over time Scott. turn now

P. Stubbs

Joe, everyone. hello, and Thanks,

insurance exception. Our the quarter. These taxes and results increases uncontrollable fourth quarter one X.X% Indiana property Illinois, increases causing of Space to outsized at same-store We with our in ahead higher income. come partially expenses for G&A, tenant expectations in Extra by Georgia interest had in lower were offset and slightly were

$XXX of We in and a existing reopening balance million the the XXXX. quarter million quarter to completed bond first $XXX an fourth in Turning sheet. reopening the another of

the these to growth. repay loans offerings maturing used and proceeds have We recent from to fuel

basis a We paper lines quarter of the points program less which also billion in fourth interest borrow that XX to enables commercial are initiated to credit. than rates at us $X XX our

includes now from XXXX pool earnings properties that now outlook Space pool. same-store same-store for properties last Storage plus Life is In meet XXXX The our our release, the same-store definition. additional we night's the and X,XXX provided Extra properties

from guidance same-store basis benefit assumes change in XX revenue Our point pool. a the

and XX emergency of Our a improvement headwind state Los leasing point a during guidance to market due in Angeles assume housing County. restrictions not does in material basis season the summer the includes

by of levels benefits moderating supply. encouraged our the occupancy potential new strong are and We

can hold but to power reacceleration occupancy, with we difficult new until We regain it believe a that growth customers. confident we be revenue of are will we meaningful drive pricing

not seen positive have in will feel a impact pricing getting our power a enough have inflection some still Therefore, seeing closer, XXXX progress in rates to leasing meaningful have customer we that that forthcoming on but we not included to -- are new significant still date acceleration indicate are point with guidance. we the We a season. we signs confident are

pool, same-store the X.XX%. negative guidance our to is For positive X.XX% a revenue

Our expected expense insurance driven to is property negative growth the property range X.XX%, and latter half an in in of increases positive X.XX% taxes the to resulting and expected by -- NOI negative is range X% in increases positive X.XX%. of year,

rate is midpoint. and $X.XX Our FFO at top range implies share, for end per to core growth a the X% X.X% XXXX the a growth which at $X

continue business record occupancy to very FFO With power our returns. are per that to to grow share. of we we when are positioned our lines rates other quickly confident We at and near push well find ways highs, expand pricing levels

let's With that, open questions. up for it

Operator

line Bin [Operator Kim of Instructions] from comes first the Truist. Your question Ki from

Ki Bin Kim

Just a out guidance and more. to little comments bit much for back can your not pricing flesh assuming that Maybe us going power around acceleration. just you

the were year-to-date what and what like the are the example, for For rates far you seeing of so year? rest

Joseph Margolis

Yes.

just give color to little So that. a more on you maybe

rates to our And second third X% rates average last quarter -- are flat. the closer in we about as were -- down the the in of year X%. of for ended and being today, Our year the essentially down about

sequential a seen we So improvement. have

would rates a In to assume the terms occupancy recovery improvement year, we assume assume through market slight moderately year. of don't housing that But as of would through the improve from for there. assumptions a continue remainder the we and again, or the move we benefit the big big we year, from

of So kind just we as the more of growth through move the slow year.

Ki Bin Kim

details some L.A. Okay. can more on provide you XX guidance, to that headwind? just the Great. impact around basis And wildfire you guide on how point

Joseph Margolis

Bin. Ki Sure,

in our X% stores and revenue. pool of new we to accounts same-store XX County L.A. pool So have in our same-store about

basis in state a same-store emergencies, in revenue the than less modeling old decrease from of that's believe the we're we point And which So place assuming for we the entire pool. the are pool are about year. XX

Ki Bin Kim

know what to I people's -- at like it's not curious differences it's conference market different the besides other other that your its is look exposure? -- peer And other to just but your job calls, companies' than Okay.

Joseph Margolis

to Yes, it's calculations. hard other for me on comment

that. sure So I I'm an you answer can give for not

Operator

line Jeff question from Spector next Wolfe. your from the comes And of

Jeffrey Spector

Joe, I interesting. was thought it

your if weaker again, expect see XXXX. to I the are think say, you I starting about than think I talked weakness, still think in and LSI the EXR in to you me demographics. when some and demographics And EXR about maybe lower let's of wrong, remarks, said portfolio, -- tell we I'm LSI you continued opening the outperform portfolio, on

your what lessons interesting, comment. to that learning are it's there? you you are So seeing? the Maybe gives will What LSI confidence outperform? What continue you

Joseph Margolis

to improve We're a to a So stores relative, right? is the weaker, to market, get say market. we're LSI $XX. primary, that tertiary to secondary, stronger $XX saying demographics, a going market are going going the are So they improvement just in not store in in

LSI have some markets stores still we performance that when look Space at those we the the and So Extra the in stores and can look at we those of feel close. markets, we gap

Jeffrey Spector

Okay. peak that year. into laser-focused as very it just incorrect add demand? and say Scott's leasing That's housing to summarize, is that? key fair. the comments, a setup of to listening both Anything you to Is summary? driver then, like I you to is would it right And 'XX sounds still now, similar Or last guess, fair to on

Joseph Margolis

laser-focused So an things. I certainly lot on we're important component. say Housing is a of would

at moves, not which who that XX% around process they're housing peaked quarter at of in customers tell is moving, us apartment move XX% Our moves, in the home moves, 'XX. the of is third back all out just

in So some demand. housing decline there is certainly

very are similar and We're it able rates. the system. very demand that our demand by undercutting doing than occupancy by capturing systems We're high our our to as our acquisition of share evidenced customer through occupancy, industry-leading competitors. more But at pricing our not rates to capture

we're is deliveries, Supply on continuing continuing see year-over-year an to So certainly in a consumer. is not on. we're We're laser-focused to reduction reduction also new housing something and keeping X, the important. eye but

the very somewhat, very see we increasing in improving stay, our see length existing price But Scott that rate as of strong, remains to customer trend be mentioned customer. increases, acceptance in of rates low too. the of seems we default sensitivity and rates, that new year-over-year And

the answer. long for Sorry

Operator

comes line And your Michael from UBS. question Goldsmith of next the from

Michael Goldsmith

with is into on season? the your a the for in Is is expected that kind brand a you're leasing to line as from peak bit that single converted? of have head about like the expectations? the that talk uplift tracking sort results Can track that of on dual And strategy strategy. question little First you brand stores been seeing you

Joseph Margolis

Yes.

quarter leading We're a in is throughout to SEO but rankings, seeing X.X% those had So that stores paid rental an also not better LSI reduction continue better And was should rankings, Extra fourth in result the increase search of saw the markets We spending. first somewhat in stores, a SEO of the the are $X local stores, in search the in conversions XXXX. LSI stores. the in reduction we that in million paid for as increase the improving. spending Space that in same good as all as a

So we're by we've seen. encouraged what

have hopefully, not improvement date. some to We in experienced we've guidance what we'll can any included trends our upside. continue, other have forecast, additional in our than And these

Michael Goldsmith

as book. continue I'd bridge It's talk you're little gotten to a follow-up, that guiding loan the And a like and to about to increase. larger for bit

you talk are your future? and maybe envision growth envision a and and bridge earnings and can that big between to how you algorithm the -- little bit this can in So loans you the year support that just interplay how how acquisitions getting about going

Joseph Margolis

recognizing management Yes. business, on. Thank and make manage program that bridge that stores of question all interplay and has these We loans the the we you right? the acquisitions both for with that loan

of business. $XXX the bought increase So almost deals that bridge We out worth million loans. it helps of

successful the a is The parties relationships, get. with we you've this little more business done industry new people helps but us more with the frankly, more business, you future And just these relationships do benefit, softer form right? business

our saw frankly, So of loan business said, what thought bridge And quarter, market, the given was that cost until capital play. capital in we the a in good loan program. being put a the allocation to bridge into and our capital we place up is XXXX, the fourth

sold We've also our A to notes. that may to being increase get prepayment that's balances guidance sell balances. we to penalty. increase to we the or somewhat -- and have But given going a did properties It's them flexibility continue subject our in subject buy we XXXX. And we're to

have So other of capital to program. uses amount of certainly have shift we And allocated we we directions. the better can we can if control this or capital,

Operator

And comes Brendan your next the of question Barclays. Lynch from line from

Brendan Lynch

that about you looks were It to little X.X% like retention? doing talk bit improve a differently about year-over-year. vacates what down Maybe you're could

Joseph Margolis

So likely not customer who door. those attract them be customer, a it's customer, to the and make and customers trying get mainly about to to identify more individual, efforts long-term type the the of is in the

on have even So our higher upfront do pricing focused revenue are to customer so customer those to value, customers the a revenue. will and over long-term produce sacrifice that higher acquisition because attracting strategies little if long we term,

Brendan Lynch

related look brought quarters. in fertile the year, that ground Maybe the the for at the about new that, you to customers opportunity over in have when coming that of perhaps some couple there? couple months of you increase opportunity ECRI a talk we you've see just because past of or Can you the

Joseph Margolis

within the have rate rate see reasonable fair years time. opportunity same and that not the a a we we customers market in where to the I'm -- we I the program, of is to want think sustainable street prior to period where get

Operator

comes the Ronald line question of from next your Kamdem from Stanley. And Morgan

Ronald Kamdem

just for year. But One, this I you say not in X start ones on Clearly, comments of the little happened. baked what being you guidance surprise. for Just opening a more know the the that's like -- sort expenses. into a to quick can me. mentioned bit

a love well as and there insurance Just some on color for this thoughts more little year. would bit

P. Stubbs

Yes.

partly So was higher We consistently more state level, one were the taxes was across the in reassessments board higher, property fourth quarter Georgia. a there. at state that aggressive the saw

states variance. where New increases on properties We also of very you that a caused Illinois, properties saw large saw in specific individual Indiana, large the Jersey,

increased still It's XXXX in for tax taxes. there that some for the between budgeted increase Our property assumption of X% is and We XXXX. pressure. X% XXXX into going property

these. win than of and hopefully, We're not to lower to We successful we're of lot And keep be going that. that's hopefully, a budgeted have but appeals, that appeal we able seen. to many

based thing at that think X%. environment, it on do the to X% proper to I think to we current But the budget it's

this property terms of in In and natural you've past a seen terms of insurance, disasters casualty year heavy pretty year.

in the hurricanes saw You Florida.

saw And the wildfires item I to-be-determined here. think in type You California. really it's a

prudent And re-up -- so increase in budget we close June. our it XX% higher to when to was number like we felt a our budgeted We insurance there. in

Ronald Kamdem

you it's second obviously, early Great. then front. about have guys been on And That's sort my always talk helpful. one, front-footed the but technology to of AI,

guys it's opportunity near attacking lease Just opportunities, mining, or curious if any as there's sort whatever that fruit you see of low-hanging an whether are term?

Joseph Margolis

pioneer. be cautious and to applications not in respect So that pretty to not walking With necessarily and are around we AI those fact, data There and and want a certainly we operations. hurt the straightforward they some to overall sure customer-facing and applications are are be with with make did testing office easy. applications, are beneficial our analytics into that

Operator

KeyBanc next your Capital question the And Thomas of from from Markets. line comes Todd

Todd Thomas

to go of topic First, to increases. tax wanted just I back the property

in for of you experienced? more the markets? widespread budget other Illinois, You trend property Indiana. else mentioned becoming and at cited what quarters. a is least there to X% this anything Is in recurring tax that X% Georgia, like in outside first you've that already It see sounds that's X And

P. Stubbs

We've the seen over years. several states aggressive past be

compare When years You've growth, gone back go seen values of Florida, the reassess. the last revenue growth to property X Texas, we tax the over properties up. have and

So terms in they states reassess. lag of typically how

as a in it's board the years. across back result X seeing somewhat we're revenue we what growth And this these is the for so half But and of saw still we're the that that. hoping last the of states

Todd Thomas

properties. sounded to Okay. commented individual it that But like was you it specific

certain to was So that basis. on It Is just it wasn't property specific right? or counties individual municipalities. necessarily an

P. Stubbs

has property reassessment. then with to of And do some LSI it the also is. It

pools, going the talk in growth out the to X won't So in year. if about you at we're longer no upcoming break which them We look separately.

were seen increases have the as stores We reassessed. in larger some pool property LSI tax of those

Todd Thomas

Okay. at comment forecast during basis a low year XXX segment similar should growth bit about gains ended you the that the to the of Scott, flesh year. revenue the occupancy of slight be XXX season, the what mentioned averages? And is just maybe of high terms growth LSI, year-over-year. you LSI occupancy the higher the think seasonality during out to the do Or expect Can to was little the points contribution then, historical about sort portfolio that revenue and Year-over-year you in occupancy rental end a you longer XXXX? we year bit basis and you from whether higher. including a in the height how more range build expect of a to EXR it The over terms points of similar little expect throughout

P. Stubbs

Yes.

little maybe assumptions and come bit variables Let one and different back one occupancy. -- Maybe a exact we because me assumptions rates we're the a in moves. on partly that talk not and little those then on you occupancy, how to on a model giving bit little other we're really push

And do. I think difficult so it's to

So month-over-month conditions we current at model property economic we're and on revenue basis. the the based then what on increase a typically and seeing level.

Now going that this of recognize to an have year that said, being the do half front occupancy is delta. we

you're So points XXX starting year the ahead. basis

are of the We as on same-store of ahead the new end points basis February. pool XXX

occupancy to less become as back half throughout that important year in we year. off move the would the So burn the of and you somewhat expect delta

Operator

the line Sanabria And of BMO Capital Markets. your next from question comes Juan from

Juan Sanabria

bit you little hoping the pricing Just a dynamic. about could talk

hasn't move-out anything, way. you the rates gone at moved. of the hoping decline think spread, move-in you of sustained the same other that uptick, necessarily look of necessarily the year-over-year that signs versus move-in the move-in move-out early compressed as year-over-year compressed quite slightly nothing at But could some but although if time, noted why You versus I an yet. out hasn't that it's that case flesh is that's If

P. Stubbs

Yes.

is the Juan. the seasonality that business, in of Some

fourth to the you are than you're quarter the third in worse typically quarter, third the fourth in quarter. So quarter

seen some think our you've with of I that peers.

to in expect So the summer that's right months than is We down would now. roll less not be unexpected. that it

we -- up time, should would better. as So over get some that rates tighten

Juan Sanabria

like pricing incremental -- said on the signs improving could that you power, just any flesh of tidbits bit. little And you early a hoping

P. Stubbs

based now from negative year-over-year. at X% our is -- you end year in third from on the the quarter went to That flat to the comment being negative of X%

that as you up we just You're to see seeing July, leasing when position time period. getting -- during rate season. up go your as again. rates from the our -- ramping to And based year is occupancy we January to see today would start that When it increases, into a on incremental is to rates as move expect you move this always to expect time in those be you would increases it and month-over-month, of better. is where And

Juan Sanabria

XXX, maybe of Okay. point second this question, And of dissimilar kind a you XXX to it's Or you it a would as pool? year, just Life flattish a noted the a any product in inclusion to be assumptions from of can thoughts yet give some just versus the portfolio. from a incremental a the just comments that XX market too inclusion year historically normal Life Is basis of appreciated? and made the around you've context curious that if that's causing I'm same-store benefit, benefit? not at best benefit that the

P. Stubbs

at way in stores, basis XX to all the This terms if dissimilar same-store point. the we've have fourth that compared Space Storage you of of not Extra performance pool. in improvement the not the Life Typically, we up quarter it's the the they're as at performance stores that points. seen historically, to changed look So year,

strong in, a terms portion there increase. increase, mentioned, you're to modeled in just necessarily large then upside growth. that However, a also that but really, we properties bit fact we properties weighted the moving as do group the it incremental of really we Joe And rate see haven't some expect do of is of

Operator

Wolfe from from next Citi. And your of line comes Eric question the

Eric Wolfe

that determine rate existing XX% within does rate of already that paying? model understand rate are XX%? what that initial what's that on the your can move grow the guess a what how you to? rent a which pertain I'm the cap in? Is trying only of I and you LA just that that? you Is offer that customers the discounted For from Like is dynamic cap to rate sort pricing at

Joseph Margolis

Yes, are clear the it's not in are sure rates increasing is that but state the and paid I'm an rates we of XXX% by customers. over it excellent -- question, emergency, not not existing it's

are So using. the rate, web we're whether base that's street rate whatever, those rates or

Eric Wolfe

Okay.

think. I

your is So now, the is are look can't It's a and rate, it's that different more and is right not process it customers just web -- customer the average of the street that. average and be things, at than paying in paying sup XX% it's will a just other what never bit the this rate what's say, of okay, I looking at what dynamic right taking now. what above

Joseph Margolis

also will get I think that's that you I true, think but pretty close.

Eric Wolfe

Got it.

Okay. don't gets on. year you goes question, guide And I flattish was you rent goes that goes occupancy as movement expected I turn better growth say and that little inversely to of One up. and bit that said, The sort positive correlated and year-over-year. heard thought rate down. appreciate to you I the a It's the then second But dynamic. and

up is positive and contributor. And a year-over-year then point, your should be probably to occupancy,

be was revenue contributor. positive offset you're like to I I'm that Is and little within the it's more missing, it's get rents just curious I what if growth So guess is of and why better flattish higher positive how that? occupancy a already wouldn't there on you're whether Like moving then flat it ECRIs? kind churn, -- an your getting going

P. Stubbs

range. obviously, it in you on So depends where are the

on So there. you're making those midpoint assumptions the

in more get the you front of the half through the benefit As than you move half. year back the year,

So you stores The Life were the also -- X%. in Storage fourth the quarter, we down down. ended were

moving better year. lower obviously then and you're forward, gets on a it starting So the as you number through move

that range. assumptions based your where you of somewhat So are a in are lot on

Operator

Keegan the And Wolfe Carl your question line of Research. from from next comes

Keegan Carl

for When the just into that I individual you before year-over-year, questions, both and LSI would guess pulls for I my hold true pools? rate street clarification. Space say that Or commentary together? Extra a delta both get

P. Stubbs

I'm you're I'm to it's following rate our rates giving here average saying When where we're the not sure Street new delta. giving customer. So assumptions, rate

move-in the it's So rate.....

Keegan Carl

true like Yes. the But how flat Was pools Like pool? it I'm like Space for out year-over-year, combined that you're for Storage hold only the that saying was trying same-store that.. guess right? that Extra fit pool? does to in Space the just I Life and Was Extra all figure

P. Stubbs

That is the new same-store pool.

Keegan Carl

No, that's super helpful.

So I guess getting the questions.

First, we just XXXX to think are like the Like versus you experienced seasonality? expecting -- different about should typical you have or move-in how what anything would year? rates last relative normally curve of expected in what you

P. Stubbs

I of the to determined like you move through looks think of here. kind that's the as demand season be what strength

It slowing summer. move down rentals does them -- start Those time are frame back summer frame, moving kind you you it is then expect would to that the the and always as time of up. through start our during as June peak You months. really move rate

expect this those out and summer So your that going depend how increases to occupancy turn degree vacates of rentals we and stands? how on would again is then the

Keegan Carl

And then for Joe. one Got it. maybe

becomes we just your given eligible. XXXX capital LSI Just about year this how recycling should think portfolio

Joseph Margolis

So of them properties we properties. of last The handful sold a majority LSI year. were

through we bring the market be constantly want to we're we of overall We some to looking different. properties market, and have improve that some would market portfolio a eligible, diversification be dispositions the partners. and joint to of XXXX to list But exposure, may no quality venture this will year which the modest offer

Operator

Scotiabank. comes And next the from line your of Nick Yulico question from

Nicholas Yulico

G&A year? question, Scott. I guess, is talk guidance why up just First this XX% you for Can and the about about

P. Stubbs

of very strong this fourth forecasting lot third-party had a growth terms We a well as the couple over past So acquisitions we've experienced in We're as We the quarter. growth management. of properties. added years. year of

field the really required both as the properties, that's well increase office. back to those manage biggest as comes our So from in headcount

of If when linear. you have as to one we that's it's supporting regional regional one properties, of steps up managed completely support This stair they're the add is about we managers. take managers, years those not by additional those the think level

So that's one. the largest

also we few a on and and put increased last hold. integrating on years have as focused to gone things degree, we've then, And properties the the technology back lesser spend we've a couple our LSI of

So we move to really tried items those up. back

really support properties the support to the and it's spend. So technology

Nicholas Yulico

you then strategy, which the now on second the for Street question as and think Okay. up of pricing has about a get to in for you front you place testing benefit on the Can while -- kind regions bit in remove seeing in front of discounting pricing maybe you're end? some to on a talk about the you some any whether of getting is just differences or get strategies, been where And little the feel customer a have ability to about rate. discounting then ECRI end that

does there untrained on discounted heavily this consumer of -- be front-end is second risk becomes entire to maybe here I question from moving type it that is, point that to And the a what get hard is at guess, to industry pricing, that pricing? the the

Joseph Margolis

Yes. Good question.

by look or answer market. So one, the it don't we first really to region at

every or reprice that a will store in systems whatever, dictate unit night. very our to And in conditions very, every happen market, algorithms, granular another the on change, a extent vacates, basis. automatically rentals, every Our that type one the will way

or different basis. nightly different addressed behavior markets in demographics, or a buildings different necessarily different behavior in not So regions on is buildings,

very alternatives is others of for or car. One very, storage. they're customers So reasons. I'm for It's overly a not couple not house not about that shop a few important concerned market a a buying when looking of the in do They're what purchase.

they rent zero almost before or two, our XX% So alternatives of us. customers one shop with

on when page, is look So those to page. most what's look be first of and search top on being the search them positions most the online visible to the they that of of one page customer important to

what are that that us. we're So to to much others visible customers threat not a doing, is not of

and adapt to customer strategies and But to and will. going our the we change innovate, to and lead the we're industry pricing we extent acquisition to again, in try need

Operator

of question And your Mueller JPMorgan. from line comes next the from Michael

Michael Mueller

can about lot talk I activity? need see to you returns and where little pricing you a to sheet guess, a activity be on JV bit balance more compared think acquisition first, to

Joseph Margolis

Sure.

is trading So capital and we than And too faithful try what we market different as see we our the interest a of not between price, are to have be given cost in are to And are where balance on therefore, and opportunities of things that sheet. far market. analysis. put are on what cost few stock to very capital and rates our for

The promote did fourth it $XX in quarter was heavy opportunities. deal transaction one in a load We off-market made that of that took advantage the embedded million accretive. structured we

So until you'll we of fees management see the into a capital benefit sheet joint can the and very lot put the do in the accretive minority of in of market a I tenant and the because and structure fashion venture insurance. changes, a think heavily of not lean us on-balance the where acquisitions. the structure

Michael Mueller

Got it.

mean in question, one to pickup Okay. activity guess And then What's driving LSI the banner? LSI something the about rate to I comment in drag the Or are driving what side from think? I do what's different that portfolio post going rental moving brand. back operating the the mean, seeing was a pickup? again? I under you second back on doing that, you

Joseph Margolis

Good question. Sure.

entries an get having was section, easy section section to when the search those in We X theory search more get the were the double have we in to map X on because we could digital rate, could entries. the that or X went in run $XX we X we section. to organic the in and entries get, hopefully, real entries brands, paid entries in the X X local SEO And bought estate. So annual X or paid -- paid brands it million spending was

And and had entries. X, in up improvement maps, we from we or as of where as anticipated. clicks an X. them first we or had the of the spot SEO closer to in had XX% LSI we the X the But we significant in X maybe improvement And are average X some not went much to but moved

organic the section. on the to be You of page have first

move the were improving enough for although, to pay right, theoretically, second were position. it we the brand So of cost needle. improving our We we weren't the and

to digitally, in ranks in everything Space And now the almost top Extra categories. come those is all we branded are Extra Space seeing X of the brand Space Extra So customers spots least. the always at and

conversion So getting clicks, extra views, higher have that more because we're don't saving we're more rentals, spend. more seeing page money to rate, search we leading and

Operator

And of next line Green question the Salil comes from your Street. Mehta from

Salil Mehta

color on the trended a you on and the where you on one going the Congratulations future? them provide got can ECRI risk, front. As sensitivity kind rent I've you see been than said, expect quarter. how some increased any quick there here into can as look guys to do you've we But what guys of improve has saw maybe we to aggressive in fourth as slightly increases as the that 'XX? less well see of 'XX, in quarter? And seen moving

Joseph Margolis

So I'll take in those reverse order.

customer We any behavior. change haven't seen in

customers manager want some have high. or are call extraordinarily customers NPS information. the center do for scores about We call increase store complain Our the a know more to will rent or and that departing

customer authority give to a to customer. a a those don't relief who we hasn't all. getting address think to It's within that range addressed that want have concern. experience and The are all. number those away. concerns teammates We of changed the -- it's We good increased it number, And customer small who not very right at going customers are has at that lose

we ECRI getting compare hasn't an steady. at of That increased is on an to control get are customers their ECRI very who who did move-out do group supposed to number a notice rates were who and all. notice get who those don't The folks stores keep based ECRI of vacating notice,

monitor see and this we in closely would there's very in program. the a need So a nothing we that what suggest change for

Salil Mehta

could maybe expect just improve see if in you because be 'XX. ECRIs on Do we slightly see in pretty And ECRIs to look -- aggressive you see touch 'XX, aggressive of rents less that? to

Joseph Margolis

rates, market discount if because to more a what the what And going strategy will an ECRI amount it's thing. the is the at or and what street us the whether and know So that our not offer customer the is give customer just what larger is. ECRI aggressive is or sure unit the what is they the rate rates aggressive I whatever. spike introductory in it's be same if you aggression even is rate came is. opportunity to by driven But means, to the of ECRIs of incrementally it's send that put I'm out to on discounts as rate to it, market greater get The current

Operator

from of comes question line your Burrows Goldman And from Caitlin next the Sachs.

Unknown Analyst

for Jeremy on Keel is This Caitlin. [ ]

while low. in on less help touched really what call incoming remains the kind that rates earlier demand of competition at. getting reduction, housing but be while for low can guess, surprising guys move-in You it is turnover the improve I'm I mean remains supply dramatically briefly call, I can

Joseph Margolis

to So also low, think would helps. in of it's maybe a Everything is that factor healthy, bit And terms I a right? a little is I is demand that compared I demand but the also of we're compared certainly in seeing it's that disagree to top demand low it's demand a periods, activity don't factor, funnel is case COVID, historical but -- steady. factor would maybe sole positive of

pool at there customers We're demand there's out And at at sensitivity that to want we customers occupancy, Extra full. the we enough our is keep XX.X%. that very in price if is our look the full. but the year stores ended leading you keeping levels at to stores price There not Space

Operator

Bank. line next your question Okusanya from Omotayo of from the And comes Deutsche

Omotayo Okusanya

But expectations interest guidance our to bit on I you relative Again, understand seemed expense. the a new did line, 'XX just your debt high. some little Quick question have refinancing. CP you

any maturities going So less if anything regards like or in curious capitalized swap other to interest. of kind there's on

-- in that else maybe how line, do interest So you might expense anything that fully that be or for. accounting not we're

P. Stubbs

of loans some coming Not terms in due. do swaps, we have

swaps the so I is so where related of swaps. indirectly of it are And -- guess some and those loans to some

that had we due you're subs, swapped detail, Those to see now should in January instance, our was a rates loan today. the those. be come in able reflected and should million rates debt For you $XXX be refinancing market in it at

interest debt to account bridge And increased to But including the then we any our loans. is curve. otherwise, for we've model have the what forward also investment modeled we done activity,

Omotayo Okusanya

to That's lot insurance the of Okay. just again, kind in helpful. given then regards program, seeing, hurricanes a of what it's And in we're whether in Florida, unfortunate wildfire L.A.

your underwriting of program? whether risk changes on on that program; some you're through kind of insurance two, how that property take appetite to your Just it

P. Stubbs

Yes.

at possible. we as much as shop continue So to

tried exchanges in we have a there So Bermuda, competition. the sure London spent make to time in in of lot

addition vendors we the With the there. actually of stores, additional LSI added some

continue we'll do that. So to

of We will potentially to require take take possible you vendors some that some It's risk. risk. the

I that's be seen. to So think

it price But multiple risk the have taking. we them incremental ways that we're price see of always that to

And is so we're open to. something it

Operator

comes Petersen next Jefferies. your And from question line from the Jon of

Jonathan Petersen

in was I'm the on on are that's about X/X because flat like through happened or what something of today. the that that's change X year-over-year the that given Has isolated cadence rates, So that. said the in out. is that last two move-in way or down X gradually we're it were the just One, year something us already of change the weeks and of portfolio able quarter. on to that the you give LSI end gap been at questions X% the curious closing And happened you

P. Stubbs

Yes.

the tell not can that combined you they're I we've We'll So one pool. continue pools. the to different. report on

took actually place of that the it comparable for is in cadence, just part last of terms January year. In and

go down last did rates January. So

easier was compared So December. an to it comp

Jonathan Petersen

That's Okay. another shifting question. maybe All helpful. then gears, And right.

So obviously market. been some the losses there's job in D.C.

COVID seeing recession about Maybe loss-driven then picture been look if you a it's job anything "normal I for the talk in more a guys portfolio. aside. because haven't like we storage recession" And a might seen what that we a had than since curious decade are bigger in maybe Just that while. since business have putting guess

Joseph Margolis

Yes.

So way D.C. anything in soon too to see

in we're or doesn't markets outs anything seen new have that's don't have downs any We one of a historically other the steady, maybe . move incredibly I and haven't know. in vacate is D.C. in significant doesn't vacates ups -- markets, been those the but increase both world, there.

of kind need not a The for out loss to have not factor to demand job And space. the right? good economic facility, cycles, success thing, people Job has housing That recession market, through a scary cycles, would move #X need not country, need a job that. an get flex being run storage is of people of businesses home, people only growth. said, class driven asset correlate manage their through is people across need is all out storage to that to economic generators the we to growth, storage move roommates,

So immune. we certainly do not better than downturns, but other property during types we're

Operator

are There hand I Joe Mr. this remarks. time. call Margolis no at will questions any the to now back further closing

Joseph Margolis

good conversations and of improving tailwinds your interest Have in we The excited and the looks day. team the Thank of that very advantage you you, some the Extra everyone future, XXXX. much. Space. team very our a market to near for in Thank forward anticipate continuing in to also take is

Operator

Thank you. And this you concludes today's Thank for participating. call.

may all disconnect. You

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