CubeSmart (CUBE) 27 Apr 182018 Q1 Earnings call transcript

Company Profile

Participants

Charles Place	Director of IR
Christopher Marr	CEO, President & Trustee
Timothy Martin	CFO, Treasurer & Principal Accounting Officer
Todd Thomas	KeyBanc Capital Markets
Jeremy Metz	BMO Capital Markets
Nick Yulico	UBS
Smedes Rose	Citi
Ki Bin Kim	SunTrust
George Hoglund	Jefferies
Eric Frankel	Green Street Advisors
Todd Stender	Wells Fargo
Rob Simone	Evercore ISI
Juan Sanabria	Bank of America Merrill Lynch

Call transcript

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Operator

Good morning, and welcome to the CubeSmart First Quarter 2018 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Charles Place. Please go ahead.

Charles Place

Thank you, Steven. everyone. Hello, sunny from Pennsylvania. Malvern, morning Good first Welcome earnings XXXX to CubeSmart's call. quarter Marr, today's Chief Chief call on President Financial include Martin, Participants Tim Chris and and Executive Officer. Officer;

by prepared Q&A Our be followed will session. remarks a

operating furnishes that and of regarding our the section forward-looking will morning, earnings with uncertainties the to include The company's involve factors factors could with risks under was evening, is In specifically from addition earnings our website may Securities and that cause differ and Relations statements XX-K. annual at risks, Exchange release, from data actual and section Form to financial Investor Form remarks and of this Risk statements in the these Form and results filed company's that X-K release Commission, issued X-K strategy provided certain which on we earnings filed actual materially company statements. or to are materially other yesterday forward-looking Factors supplemental, the to report results the the from together the The available files www.cubesmart.com. cause -- the forward-looking company's those the our differ with documents

call company's the the between website remarks measures. supplement at the to in addition, I measures over to can found Chris. to A reference www.cubesmart.com. GAAP now non-GAAP In company's include reconciliation be non-GAAP financial the turn and first posted will quarter

Christopher Marr

our to average, from were the X% quarter to XX up customer much points line last to March we into average our at headed March XX you, pushed during this same-stores, In of Charlie. XX, new A of as the physical expectations XXXX. compared basis Thank with year. the our about On quarter, occupancy morning. solid up in Good QX very quarter. compared very rates we year

very changes Drilling City our Chicago Florida, average West Carolina, rebound rates no experienced to X% the X.X% continues at primarily rent points. weakest year-over-year Naples, and area; markets. a basis markets, in the Again, same-store to about beginning supply of more down range to year-over-year, New X% and of the Empire, impacted Drilling year-over-year the of expectations were into our from York the of supply, some the Denver. impact Inland growth experienced days time comparisons land Sarasota. last California, flat nicely new supply area; elongated areas; Sacramento, and Southern impacted in followed X% Discounts followed rates and specifically at and We Fran Fort Northern Diego in-place Myers, our in The the specific up in XXX were in we Our chatted supply. Brooklyn average less the in of San Charlotte; the the the were impact North X% California, stay about Tampa, rental Bronx on as length L.A. We down year-over-year that feeling basically strongest up occupancy XX flat, X range same-store the by Colorado, is mildly growth percentage MSAs. Rental from San by ago. and boroughs. days.

the Our on, rate all customer of focus receivable, of solid. we first The auctions, consistent accounts metrics health write-offs, very remains are XXXX. with various quarter

in the rate both Our existing timing amount. remains increases policy and consistent regarding customers to

disciplined remain in capital. On allocating the investment front, we

from XPM platform. acquire program and third add We assets our to continue property to store both party-managed

our third in joint added quarter, platform and XX During venture asset program. acquired and our X on sheet the balance party-managed the to stores we new X

in financial listening. facility. available I over additional for you improved Our results balance to the for our Thank on turn around our metrics. in and guidance sheet now Tim our detail Tim? maturities roughly XXXX of million remains will no call certain some and with great credit our shape $XXX

Timothy Martin

as our interest range, remain year. competitive result of us our Absolute continued our pressures a very reported over joining supply Chris the as which support. and of for on Thanks, despite the in quarter, increased share as remained our per Overall positive, your submarkets. first certain of in call, We thanks everyone results of for Chris. $X.XX at FFO and for including provided And the last for guidance evening, headline growth and adjusted, had were of represents mentioned. X.X% much as everyone with line to steady high quarter demand levels was -- always, last from expectations, performance end XXXX results

of properties we and capital, our market, has cost disciplined to for muted current elevated coupled strategy. on remain committed growth, the valuations with Our external investment

to platform our X.X% increase basis on operating expenses, XX operating a as continue and and all effective our driven revenue in X.X% of at increase X a metrics program. Revenue grow X.X% JV and very driven line in much point the third-party primarily leverage rate growth by X.X% by Same-store in and our expectations. we through NOI a partners our was We a increase occupancy ended in was growth management quarter with XX.X%. brand increase

removal by expense growth to estate last in expenses same-store this tax impacted a Our real weather-related as in utilities well expense X.X% both was and year. year costs higher as growth snow compared

program. managed market balance quarter-end. our the bringing HVP added quarter, A property our stores to first third at quarter $XX million. did We up purchased acquisition we any for our quiet venture, count X program, stores joint X XX not closed our through XXX on million owned store and under as to at we sell the shares sheet for IV wholly on During the $XX.X management we equity party --

XXXX really guidance. initial since hasn't much provided our for changed landscape we Our

us making growth FFO same-store Our and April as results share as upward our revisions NOI guidance performance as lead our to-date to per to quarter well revenue first slight for adjusted. growth, same-store ranges

in that for in and that feel for financially very us comparisons we see our we guidance back joining some assumptions busiest on assumptions for as call allows format up February. head part this to the You the At Thanks earnings open easy well of don't the operationally call We questions? Page tabular of calendar are point, all business. our the on can seasonally current our positioned underlying we provided X why we the this again for of Steven, into morning. release our

Operator

[Operator our Markets Thomas Instructions] And first from comes with Capital KeyBanc Todd question

Todd Thomas

Just first question on investments.

I ATM have the the low stock think $XX in you under in issued earlier 'XX range.

And bit X% you've little quarters. over so the a you're around so your balance several from slowed investment level own that And today. last program or

here the market? So I'm just curious, appetite at light green to issuing and get all? your do like you increasing in have the start feel Is you back

Christopher Marr

remains Our same. the appetite

out what is equity cost our to think at of we look that of consistently stock opportunities relative I our we valuation see the capital, investment there. the the

muted equity of as a of the last being seeing where well combination growth so really our quarters. from investment And opportunities. quite on been sheet us of as would is couple balance -- has compelling to It's external valuation you're over the a twofold lack we really not be it like

at in it's be we're not combination. always for to earlier. combination equity X us. things in to going going issue So a But We look those later of always X did XXXX, the

Todd Thomas

Okay.

seeing a the materialize of terms are could fair venture amount in that this joint acquisitions, you venture format In think the you of product year? joint

Christopher Marr

Todd, its Chris.

venture with more clearly combined assets, stabilized of attractively which difficult valued, that are find more So targeting is opportunities, today. really to a lease-up blend

or a has interested good way assets, it in been on capitalize the exiting where stabilization. So to owner party-managed pipeline third before is

a of of another X that venture stage deal exact was that So that then lease-up. there the in in was transactions fit description. And

However, we weren't the manager.

take third-party So those transact, the I we in owners where and do be decide that it I newly of sense advantage an pool able think we developed, And to think assets. that the and of makes cycle the the given have that. platform, to of up size is are that then set attractive vehicle extent I to leased-up think given to

Todd Thomas

just then I guess, on question, And it. construction got costs. Okay, last

You guys seeing are a having and about Is you're activity. you you obviously just million an total of pipeline, mitigating construction big impact? talk development costs? what terms it rising Can in how about And CFO between those in $XXX have costs?

Christopher Marr

Yes. It's impact. have an clearly beginning to

think pressure. I are as upward seeing, steel, relates you to materials, raw it

sort think stage. that we majority I our past the in are for of pipeline, what's of

So in feeling it. really we're significant a not impact, terms of

lined we quarters. to On got any it pressure you're few have some issues a install theme. not the labor the It in both when side, the the to has new terms extent be certain also, you've up to you are in To feeling portions and of and that for delays. labor continues be creates then been there. schedule, project, your ready the you're that unable labor, and This of to accessibility past

just you're impact the that because when delays. pushed I of at projects you think getting seeing today, look what So are I increasingly think those is back underway for deliveries really

Todd Thomas

from point what you All At terms right. from of bought in costs material, are labor? out Great. and

Timothy Martin

Yes.

part, the most not fairly usually the in are that the that and that not For complicated. numerous components process, early given

Operator

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

Jeremy Metz

like in counter how a to indicating. it peer mobile, if was to call you're seeing web, last what continuing on some system, demand, bit demand I various yesterday seems see your was wondering maybe your can Because you channels, you're is and what expand to across year. little that which solid center, a compares

out leasing just how also makes to as you begin peak confident the figure So this trying we season.

Christopher Marr

Jeremy, it's Chris.

coming the the through through channels, the certainly or and And seeing without to comfort then increasing to we're is reservation the a more the more seeing increasingly, we're why shift, various store that mobile. coming down phone. that So Hard fewer but familiarity pin particularly with and customers process. exactly gradual coming offset online directly into customers customers on

first more in we people nature. at And about it's a comfortable, wanted second airport, airlines. in counter and talk or now they become you analogy that difficult. kiosk people still the got uncomfortable a to to to gravitate tried the to more terminal checking as increasingly an made steer they were Sometimes, the When

just I that getting of extent, some some think more with our are up showing reservation going process customers that through and reservation. comfortable online to

do again, we is demand and I particularly, price with that there, see continue mentioned in that it to through getting I the while and, reality by to demand, supply. think, as is be continues the markets channels, those challenging impacted I those think so

Jeremy Metz

it. Got

sticking supply with there. Just

that that cost we flows the else here more than or less seeing these earlier, latest noted get get we in Just from pressures optimistic as you other after you through are today deliveries? supplies you the the through market makes -- on anything

Christopher Marr

XX you York at top when we the I our most the we New detail, through down where look at look Chicago, all really and -- think Miami, Dallas our MSAs, which way so is Boston. when in concentrate

been costs has rate think underwriting, who's doing combine hard you rising returns. and that that interest combine honest anybody I for are got combine pressure -- beginning with the supply honest to, I think that I impediments that there you're that an being think you that you've introduced, rental penciling to which and rates, out about, with talked when more increasing I labor and yourself, really if some and you be

as to be develop. than going I it think to the is available, But I XXXX. XX our continues feeling our impact to X-year flip capital XXXX, top not certainly are in here is, markets, long in certainly will the that feel we're significantly in worse developers like rolling as basis, think

Jeremy Metz

a well? in challenges have of contract the pricing Got relative of grow know that's Texas some and in closed coming driven ton absolute was what to markets, one on have talk acquisition. markets, an it. to about activity. some level, market quick fair it there? the the are last just really I in amount product market, under could like of or of maybe I And opportunity you side creating A those one Texas. it's then that increased those looks not as But that you've And

Christopher Marr

Yes.

like I price a like Antonio good Austin make the that's simply at you a that in Texas think are there or business a a can the stakeholders. pockets you and again, submarket Dallas-Fort when for Worth, disconnect can take you right is where deal think, I micro-market our San state deal Houston, comfortable storage, get

store, the significant supply. a we an managing and hold when A few be to Class balance plus in to found That were find solid It's on venture hard amount you balance hard to it's opportunities. actual can that I to a think a this getting I asset market the is or of for Austin. and state to already on submarket the which your So boil it is and take that lease-up certainly take. And instance, going excellent fit for us sheet, returns. down sheet, you in long-term found But think going are deals we've produce we

Texas. I look happens to in that's it anything because wouldn't into form as So be duress some it under of

think very I micro market-specific. it’s

Operator

Merrill from with Our of Bank Sanabria Juan next question America comes Lynch.

comes Our Nick next UBS. from Yulico question with

Nick Yulico

topic supply. just On of the

your of impact increase you I this you decrease that the supply. think would change of supply previously stores XX% that guidance, new same-store activity that of you've competitive York has XX% since and said facing stores or that the seen new imply lessened? are in Have New revenue any number? your raised does And that

Timothy Martin

Tim. It's

refers impacted the to ago months So expectation. assumptions within has are the your XXXX, in expect of XXXX. same here we defined our And we supply XX% short already in because stores face sit we of XX% XX% question same-stores answer of or to our same those today. the opened we of open any competition that by as stores. triggering changed 'XX X XX% competition those new the the that as is, something are A will that being indicated haven't to

second our end initially year, for we We change X/X we're the better And been year. midpoint that given there's the have to end of bring have So modestly to of fact that any significant we've past the did and that the through range had in of would our no here visibility -- way nothing bit the really there. low we question, sit little the the up expectations a the your the months expectations, lower the X provided. on impact eliminate seen part and we of

Nick Yulico

look any at then I this wrestle kind for Yes, data the And this of sector. we XXXX? you into And going do how XXXX point? I think on to supply that's mean, versus all visibility thoughts can helpful. any with 'XX have is

Timothy Martin

Yes. take markets, too can many our from In it It's still approval quarters. little X a early to to bit construction, of to X tell.

some midpoint the So half markets. XXXX don't we until of year, great there's of -- the past we still have in visibility back of the get into our

is the like from better have markets line York time boroughs lot much longer. a of completion because to New Now the visibility start

and that best Our about rolling and period seeing to it in going markets, -- deliveries sit to 'XX alluded deliveries if materially about impact 'XX, from that's 'XX on is guess think the X-year his And of about us compare supply you supply Chris materially basis, deliveries in and as different, as the X-year and 'XX that think what a supply how suggest think when 'XX, our look be XX top same-stores, we -- big you we're little to comments, operating are existing, we would 'XX, that going we here, don't is think to impact our if 'XX, and that's in at then which the open here over versus 'XX. in it different. of earlier looks that the suggest think to impact to currently, don't that would true, we

Nick Yulico

helpful. that's Okay,

In can versus you X.X% about And trend asking information why removed supplemental, that a that? you in how give question. reported you for last feel scheduled maybe you the Can talk did rents. fourth and your that you about had the Just quarter. the in the quarter us positive removed

Timothy Martin

It's Tim. the part Sure. color chime some question, on on answer I'll your -- I'll Chris then and with trends. can of first

as trying rate units ago. nor decade at to And rate for, as disclosure mathematical time, be it a of revenue it what as that to sense how disclosing give trend rates rate is we're scheduled and our And over it to see asking that time. or barometer many provided that helpful not to try portfolio or use rent used of things renting rack is what we is, began or can rate a input were predictive that's street our across for. a actually be indicative reality we The a to street to So asking that believe, over growth. use future to investors people

was And We to we likely many to more decade, insight confusion that ago. years the much who provide only that continuing over to investors we the than discloses that that envisioned that concluded metric. so for we're to you provide one the fact it when that combine provide disclosure create all that with decided

elected on some we've it provide So follow to but we're written happy from color and eliminate others, to disclosure. it, our

Christopher Marr

what Chris. the at And to the X% premium Nick, to year. of about were then last in the we renting we it's Okay. first quarter were so were metrics quarter actual we mentioned in themselves, comments, renting for I a in the units opening that renting the

in metric fourth and be rate year. would basically in between that specific terms metric metric supplemental, And look the were you you up the we're that X% quarter we referred have flat. that asking first the last somewhere X% In where at our over if been of then quarter, would where today, to

So that the average Tim -- it's at X used our who I view, to think sure ago, that storage I'm And put flat. least or years be, time, hasn't months I've X% confusing. of And package all, at and, And that supplemental had days again, the X%. are, blame not later, any now as help think likely again, is it some at folks I to we it in mind. in up my more It same, meaning Tim's there. the to to fact created said, if it XX XX here the and really point, the less we had something. at has one those the in proved end me would have I'm because just just

Operator

question comes with Citi. Rose Smedes from next Our

Smedes Rose

I back go wanted to to you.

developers I lenders? capital to that develop. would or it's can as you are you access about that And EBIT more overall from mentioned suggest just wondering, talk anything access long maybe difficult was capital, as seeing You -- they'll

Christopher Marr

Chris. It's

and say would margin, I institution because financial very developments and its at the at the seeing perhaps, for therefore that that and these become allocation many have its combination local say the existing borrower. a are the new of you relationship, that if institution, it little relationship I estate real projects, in And tighter with ongoing So an being would appetite. specific of a the loans you're for have institutions X general, commercial modestly. modestly by the level But made to

advance there So relationships. pre-existing they're recourse, for rates as at XX% full those capital who project. the borrower folks the underwriting out with have as again, there much And is

may pattern from projects you start then to at of guess interested last think as some I in are would XX lower that when And markets come shared There X the have pressure seeing and underwrote think decent the see the I there's is that in to of are certainly bank but covenants, we're with But storage. perhaps rental rates an that lenders' amount months, money is what of capital folks on in starts leasing the fine, up where continues, if than X to pursuing the months, are of no deal. developing. them supply they alter in I equity amounts development reasonable most views. there new out a still shortage perspective, who that on that they

honest -- if the with significantly I work. I remains whether more be to think, it's slows seen. to think down yourself things you're And that numbers make not again, or today, difficult

Smedes Rose

in that good mentioned party days it's that then management early significant of I a their That's color. seeing PSA know right. third platform. interest lot they're All And

such management is big really wondering, that you third each a are to not party folks -- to market Or coming you're your out from at you other? seeing Just it add across go all that system? as

Christopher Marr

I this think right Yes. early probably stage, is the At description.

impact. identifiable So no clearly

business, So are sympathetic provider think it's vanilla as right? one process, we and that to the characteristics go not each have are appealing and a owner certain I each through another.

with sure believe have been perspective, to living in about there, a in that keenly think important. are a on-site, focused that's And to making That to flexibility revenue in interested be -- And owner that, so and secondary. service. marketing in purely and CubeSmart we're from the owners, a we've benefits that's focused their on very on some it's we line as metric think third that not way them. doing wage, only we We your believe it relates our top reason, information to that for right Well, of a our customer them. we sharing, very and matters who always something we team cost. is Certainly, growth And point how our we management. party appeals the for is manager may owners whatever are

Public may sort delivery, like have somebody appealing. low-cost Storage be And model, more low-service of who they this does

just back it enough I I other So that it's to will and say to to do today think each in other. X already way wouldn't going surprise pool But swimming more think able with be me a It major a customers big it if happens we're with forth? the competitors. concise move fine

Operator

Ki from SunTrust. with comes question Bin next Kim Our

Ki Bin Kim

Just couple a of clean-up questions here.

how rates So take April far? trend so the did in

Timothy Martin

difference first we quarter. first saw Yes. what in to in No the part significant -- the

Ki Bin Kim

leasing the Okay. now more land a looking lay obviously, summer inputs of into of season? and of And for take to pursue important the summer for how time, we are many and strategy. as that when levers, they some variables But considered head those right pricing are there how kind out there's you

Christopher Marr

They're all available.

Timothy Martin

Yes.

if first your how of pretty length But to early as longer-term kind will, rental this to we're plays that out, that quarter, potential, to I higher into sets summer a attract of it is able are about physical are observation occupancy April customers will are we season stay. then XX, we there those which And to the be think well we're out seeing want, perspective believe those from we up what us where on that too think market-by-market, going tell. we optimistic go. that

Ki Bin Kim

what quarter? the rental property this other income And drove higher Okay.

Timothy Martin

the low of in or comp 'XX. first sequentially, sales We looking quarter, it at tenant the -- merchandise if the quarter quarter a you're the and little had given was fourth to slightly better the relative fourth fourth growth insurance tough in quarter

little in that a line off. item line trend looks bit the So

due growth the is line a items quarter than in to those normal was first fourth comp. The the tough more quarter

Ki Bin Kim

about and And winter side? and Okay. you help fourth a revenues? revenue does just quarter. have quarter, really When general does fourth question divert Or the on quarter first first in the it tougher that the a

Christopher Marr

from from perspective tale a tough is The of a your have help weather reasons. part too. it weekend to So the for tend flip revenue side? had a country, the or X be your Does certainly in modeled cities, of you that a side certain than It's right? of lower you planned obvious when movement move-outs are lower,

sales website click or reservation, perhaps to mind their delay extended of your store, need you make on to because changed their customer's was period what over time. of out, So is a where worried series try about you XX worry and following that will our you're weekend of a move there that shifted or the -- it the trend they of not they them call side week that needs need following you would gotten to come the might product, weather, that out into worry over that low the or somebody's move days a but for right? you some weeks a couple out they'll is if if you period bad, one. really weather the have your see whatever on about the What that weekend to of worry otherwise next They was, time, that move move has or center, a that demand to that the the they was weekend that for and

where see sure low up convert catch reservations of term, short to to time move-outs low. you'll convert make with the to calls keep those focus weather, have will and Move-ins, getting and phone the move-ins -- and in your you'll you spend and eyeballs those to website bad So rentals. all you quickly pretty reservations, Move-outs to see to

Ki Bin Kim

a I net-net, bit the Well, in maybe guess, term? on-site, short negative little that's

Christopher Marr

the that but... that I It or negative. margin be it I'm positive say sure, sure uncertainty. would would ends being for negative. the shifts on -- creates it come I that don't always You know up timing, not it

Operator

Our question from with next Hoglund George comes Jefferies.

George Hoglund

show from party continue strong business. management to really You growth third

them like And of what were so added quarter, kind properties existing properties the developed versus of properties? this operating percent recently

Christopher Marr

those added of that we existing, XX as of open and stores XX we the XX classify as So this and newly-developed. would operating quarter,

George Hoglund

Okay. forward the any then of change program? outlook kind just in the kind of of of pace adding And to

Christopher Marr

No.

not to or that whether to raises pretty continue change owner asset. intended a of and developed, have open around drop it forward. going actually and good be developed. capital doesn't that the is stores The intended that operating that only Typically, mean a be on uncertainty the to to we the We those are pipeline existing, proceed necessarily and but elects rate, had with won't modest both

George Hoglund

Okay. And one then thing. just

back to handful of percent -- tenants, last materially changed tenant usage? has And the insurance, has the Going overall that of kind insurance, the quarters? over tenant utilizing of what's of current percent

Timothy Martin

And to tenant or insurance tend our quarters, changed customers the but insurance past of We it's couple And overall is -- minus couple for insurance. connect XX%. provide past plus door to not the customers coming of tenant a bit little or couple north the materially the years. of to of XX% now, to years. penetration hasn't take then to elect up last XX% here Yes. to really It through for been over really of our

Operator

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

Eric Frankel

to coming expand online? business your given said, Just would with what deliveries of in expect increased third the the rise party to you management supply, increase level on George

Christopher Marr

Chris. It's

So the we've for been few a quite here adding last years. at obviously pace stores

as long not just entrant ago we the done, into getting obviously, to to of the acquisition this a United so certainly, and in with If we're continue, now we're business got the space the imagine something into are hard new. expect it's long up development I just Stor-All, as is another would and to Sometimes, pace shy projects competitor cycle XXX. of of

that, plays would industry you But how a the idea sense, look to of that brands. still it the we're have seem management the under of would that our much or years, that in there think management I So 'XXs, lodging out brands. like XX you going I of see coming out see particularly if to a a handful out. to think make top was consolidation MSAs under similar consolidation in of XX XX

Eric Frankel

My that my other actually, brand Yes, only related question. the question, somewhat last makes the it's hotel -- sense. industry to and

venture capital particularly some buying pretty your of and -- shares You the back sell attractive. more assets thought given and that proceeds? ever and partners are now, said of have venture not right with to to -- is aren't cost your also your any partners, management Have those given asset joint you high with given of and you relationships acquisitions keeping

Christopher Marr

the disposition a retain over that and on piece, implemented we've that's So management time. model

quite specifically and did in retaining a would It for sense in think the some with their be that are we back, really market I continue where going the asset. assets the be transactions submarket W.P. us why markets the exiting make of to to number management. involved, they're There it particularly into exiting selling and doesn't and where altogether. were interested that if asset program just particular at depends we're Carey, we on assets friends our we

we've sort obvious such to those be my became to of you hesitant past I So use it's least, clear stock. terms And then you're capital, back that in it repurchase, still, compelling we would theory, continue we buy up in back the perspective think to shares. and if of buy something And leveraging I lever the up fairly forward. been unless and to a would that, in about we've guess, think from done evaluate of at going

Eric Frankel

basis? be necessary your shares on premises just a understand point. to By on But basis. It'd do selling isn't leveraging buying it assets leverage more and a neutral Okay. back I up

Operator

Our Wells Fargo. Stender next from Todd question comes with

Todd Stender

Texas earlier to and annual maybe Can Maybe assumptions maybe JVs this going-in that regarding just yield have under through growth stuff could versus assumptions? are you Chris, some go comments X. your goes contract. wholly-owned growth acquisitions your on and the and And rate back compare slower that those

Christopher Marr

but call, caller, frankly, where -- don't or Yes. I the on in for And as It of in the that yields the point the based X.X. but going-in the if hate from can each I range asset really assets they quite individual cycle know. to -- to imitate from another are maturity is X you another range,

Texas owned ones, for asset acquired we're about we wholly I specific lease-up. talking think the the in was in

Xs, Our of XXX low was north points expectation stabilized in the going-in was our about that. and basis

ones a in of JV, and down over in under in the X% Maryland ones were high-Xs, we bit in the to path that and the to to they range. be of of terms in then are their little but Arizona and Texas, were we there sort in further not are going-ins sort those to that acquired the earlier the expecting stabilized And the For then only process, time. those are mid- their Xs low in growing X% contract And the expectations from maturity.

Todd Stender

get from helpful. number that's the of X% CFO to a takes a or And to about Okay, your general duration stabilize. how months expectations it of there just just X% then to

Christopher Marr

Yes. It asset is we depends where upon it. the when acquired

and -- this But I then ones need that the we sheet to blend quarter again market. that leasing by balance more get from looking opening at the would brand-new occupancy think, in having one summer depending need season. store the season, another our average, leasing require of either on think today, stabilized I a to the on venture X under be or

get get then time considered occupancy your that frames full, to have until a April and to X level rates stabilization. up fourth to basically call August rental would level, season first what be we So mid-XXs, of to it, to to effective

in, about years. all So X

Todd Stender

to new at you you're shifting a emphasis and to in, have going few out, you're Okay. where And which boroughs put strong you're to you're think New the looking you you presence your just do years think exposure back last there. after a your very XXXX, to one, York, now? into maybe new comfort boroughs deliver do to If going do better work? right have properties fine what a dollars But

Christopher Marr

Yes.

Manhattan's I similar think, Staten be to by Island. is to exposure the We Island, only Queens, followed the store. that just X Obviously, by citizens Staten Brooklyn, only where the where the of we own obviously, by followed would Bronx. have store, from one fine weighted followed

increasingly So challenging. is to I going New think in development get York

when And pleased that that meet own. managed go of if out would be stores at slows. And surprising the to -- then stores and be so our of our are we number our if criteria, new it not decent do a there pace would past that existing there purpose-built you would product look we you have XXXX, are

in owners over to So portfolio. buying I those could envision back us, managed time, as decide the sell from

Operator

with from next Simone comes Our Rob question Evercore ISI.

Rob Simone

Just a quick one for me.

You the I'm guys causing to Or was that trying just some understand guys you Waltham? earlier delivery. that in Is back mentioned delays why some rationale cases, what there. costs rising construction pushed be might in

Christopher Marr

the sorry No, It's costs, the construction then rising was confusing. if the Yes. I'm not labor, and it's process. I

getting complicated in been some then which delays quarter. had little first slower which we most Waltham caused way, much throughout than is approvals along project, the so like much hope. municipalities, issues Massachusetts, the our weather has pretty And a initial And the bit a

on the some then cetera, on nothing delays. there, et more the inspections, So side on cost the weather approvals, and

Operator

from Sanabria Juan of Lynch. Our next Bank question with America Merrill comes

Juan Sanabria

Second a time's hopefully. charm,

Christopher Marr

There you are, mute button.

Juan Sanabria

Exactly.

line the you the pool, on points of balance to Just to that Any of the expectation for for kind about a the contribution, on the new the XX what is top color first same-store new added additions question like additions growth that it your quarter. year? in basis seems

Christopher Marr

adds, throughout Chris. the expect Juan, we mutes as on would think go year. full XX Yes. points to that our XX the that, to I year least I contribution for the at modeling, And based growth. it's basis

Juan Sanabria

range end, about at balance it the risk the the growth the revise upside revenues think for a high the pace guidance of downside for should be Some what's just guidance, midpoint, we Kind the kind kind of to of implies and year? decent the on then How the at risk And deceleration. pretty same-store of revenue seem stabilizing. for of numbers the 'XX? to of same-store

Timothy Martin

the Tim. think it's I --

upside I growth basis, quarterly our by that will XX% our in Certainly, that new linked risks impacted are deceleration you further really and primarily we changed. supply. rate of a think downside an of see the the expectation aren't have stores revenue the to guidance that on implies

really has of it to some don't expect of slow it be nothing that be go that so If And And to would changed -- there in steady we're there year. deceleration, kind lumpy. I telling as will I our expectation we guiding and I wouldn't pace you think the will expect and be through the for be. deceleration.

Juan Sanabria

just then supply the and of question. kind And Okay. development on

where sense guys projects can looking you're a for the are party, at, kind it's versus guys spread spot you For a cap the you of or give joint of on general of the development just developers whether third to deal coming ventures, as targeted managers stabilized just get a the are that's sense transaction kind that if all? of basis, targeting, at rates yields compressed us

Christopher Marr

Yes. positive I mean, good minus plus XXX, the I extent acquisition spread to that a rates have cap think that, or XXX over mark. it, in you you're spot still call

really, are XXX, getting those themselves. think, today sure, I I'm honest the think they're with not are who question being

Operator

session. concludes this over closing question-and-answer our like And conference remarks. to I'd back any Chris the Marr to for turn

Christopher Marr

Thank much call. for participating quarter Great. so in first our you

here We are very XXXX. bullish on the for prospects

business execute to We in plan everything to are that do presented the on here us, continuing our to to in continue on XXXX. opportunities outperforming in are we'll and focus

We on day. June to of next a to quarter's forward else you. forward NAREIT, speaking Have many everyone and to our look look So thank call. great at you seeing

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