CUBE - Earnings call transcript Q1 2020

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Operator

Good day. And welcome to the CubeSmart First Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, today's event is being recorded.

I would now like to turn the conference over to Mr. of Director Senior Schutzer, Financial. Josh Please proceed sir.

Josh Schutzer

Tim Eric, quarter XXXX you, Chris President Officer; Hello, Officer. today's everyone first CubeSmart's Marr, and Executive Chief to welcome and Chief earnings include Financial and call Thank Martin, call. on Participants

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

statements In addition www.cubesmart.com. of section forward-looking was results uncertainties that include the website these at release, from earnings company's strategy issued operating remarks supplemental certain forward-looking Relations evening, differ to to that the earnings data financial Investor our The involve will other and statements. materially and actual is may which and yesterday regarding available under company's the cause risks, factors

provided factors our Form company's furnishes could Form cause company on together X-K and and the differ to, of filed actual or risks Risk earnings report files materially section filed the and we that with the documents XX-K. statements the specifically Form in our Exchange annual Commission, release Factors with, the to The morning are this Securities X-K results from the forward-looking with

remarks company's company's be fourth include found financial the to on A reconciliation non-GAAP the www.cubesmart.com. between measures GAAP in addition, In quarter posted supplement can website measures. at and the non-GAAP reference

to turn now the will I call Chris. over

Christopher Marr

morning. Good call. Thank to and listening everyone participating you this to

thinking are of We you during these times. difficult

teammates, and friends, families their our prayers CubeSmart our Our and and and communities. you thoughts with are customers

over compassion ones innovative XXXX and our customers. our up impacted loved While difficult have courage, lives has are many XXX,XXX we and witnessed spirit forms and this lifted and pandemic in by teammates the that in challenging we

simplifying genuine solutions, other created creating We're and challenges to are and this world unparalleled make by time event together. and together happening delivering us through care. around values changes. each up the by Personally, with innovative the coming and I'm our this our confident our endure changing already; life with incredible It's us stronger teammates service those we're is that adapting going holding mission,

XX solid it last start. of Well, store quarter physical volume first extremely plan. rental year and encouraging ago end of to were was rate an running customer the the demand end our at and higher XXXX lifetime year. during a store Same Same compared points ahead the seems last on occupancy and our into Net busy had bias February February was was off through effective ahead of on of a of beginning rental season. slightly basis January the February. We rentals positive heading to

changed this of All in March.

last quarter store points average basis up last As stated XX was release was XX.X% first basis year. same the over the occupancy occupancy points quarter earnings in ending XX same for down our store over year at while

store with the XX% use year. down delinquency later our existing March customers to of closings well to we and months significant we student during procedures last as and rentals benefited paused In relative school rail of both same increases as planned of mid-March in customer rate suspended as month While to trucks. year rentals decline a the ending weeks expect weeks occupancy March, last two the two first result the during both last of

down has on effective trends. recent encouraged more same occupancy year. XX% must down vacates a below XX% XXXX the store store average say reflect XX unique full and were basis adapted Same below results March were April of year. April consistent working is within store XXXX. and manner significantly with altered as April below that net procedures policies of rentals Themes a while each to rate April we new last month orders. of to operating for The points XX.X% rental of was rentals of April last same I and XX% municipalities at ended April compared also what

home orders in levels our at stay seen volume. of rental but activity uplift have last early brought the a stores two steady The in very weeks the low days

specifically same the with trends. have only same. compared best performing Philadelphia our activity last are and examining year Dallas, MSAs seven the by Over store down Fort Florida When the consistent rentals trends performing a days recent Phoenix, been the the balance improvement significant region, XX% Myers, to remaining Houston, and from relatively April last of all

we has be had We defining it viewed been also This as moment. moment. unprecedented the time a matters will defining most. crisis smart called How believes generation respond keep to company a

rolled been We in investments made have our of few April that delivery days weeks. our people the technology, our to since The foundation introduce over capability pivot point-of-sale transformed we systems out nationwide rapidly a matter on laid and quietly us last completely years and for contactless have our and X. our of rentals the in service XXX% SmartRental. we

online our Our contact list completely process for customers.

pleased York SmartRental New through In introduced April access to customer has nationwide. with smartphones. been we have over keypad on and rate. days X-XX SmartRental City, the customers we now the extremely adoption option contactless awareness XX, doors the their access increasing the and are last our gates rapidly

will working the few over are other next rolled several innovative We months. on be technological solutions that out

extraordinarily award-winning confident leader are and through our an array position under compressed amazingly technological our customer further cutting-edge challenging solutions service an to hindsight, that is this an ability solidify circumstances We lens combine with used when of culture the pandemic will and preferred brand. as of timeline in our with industry

turn share Chief the to I'd Financial Tim for the to moving Officer over now quarter Martin, him call Tim? thoughts our on and forward. his to like

Timothy Martin

We're environments. interest colleagues call safe and families, all friends healthy, and Picking in your for and new Chris continued and everyone stir not your crazy going to on Thanks work Chris's are on thank at to home odd you and comments quarter behaviors impact months first state at the support. hoping times you one start really up while the feel to until emergency, months also mid-March. like started and was this it's new stay pretty it our and didn't of ago, certainly does environment lockdown, and your an

financial are impact our lean a have in first results of come customers increases several didn't stopping but by impact rent our quarter to beyond. have adjusting actions those other clearly existing going second started of and practices operating on sales things; will pausing our third We among much from and results. timing possibly on and an quarter perspective the The the they impact a to

and the added acquisitions our store results for quarter and stores expectation XX in external line same of from Overall we growth share for NOI $XX.X same Year-to-date we growth growth per to on quarter, platform. million of third-party FFO management an store reported with $X.XX, closed store perspective growth X.X%, as we of three revenue same the X.X%. expense X.X% during our

to of All clearly less and first more happen results on focus provide the the sheet through to second quarter all that rest first, year investor our next quarter how of and those start things; for navigate said and uncertainty. the is in what in and two to through on what's flexibility on going happened the let's order company's capacity Taking guidance. second balance this strong with

a that estimates uncertainties that into major too The to we other many-many our of had and and is challenge provide factor companies this unknowns simply there range many are per quarter lean fully to including impacting rate questions to along customers. we're include sales conducting existing increases normal how back and able forward practice. get normal to passing guidance until long Major operations

of increases begin pass the be to the economy; the that overall some has other municipalities as market this one as questions rents for reinstitute adjust demand answers customer will we and U.S. customers necessary. how existing to like what to come the of happens a starting basis from collecting when are in lift monitor this, and out self-storage on with at and are we it to and rate all side the will market what And regulations no processes successful we our through these allow situation to customers continue time we course orders, stay-at-home will by look delinquency

of results All of in be our quarters. drivers factors these coming financial meaningful will

a result this to time. earnings all as uncertainty with provide forward guidance not others So this at many elected we along of

the bit second and more that area provide And main on certainty area can strength. confidence. sheet focus quite then is we a That's in an balance

are extremely to storm. positioned well We this weather

of the through debt We have with credit $XX is of only or end X% debt the have $XXX unsecured quarter of next very an through XXXX, our the end the at due coming of capacity we of little maturing end million facility million and year.

at addition, conservative quarter our remain XX% gross In to assets. leverage debt levels at and

Our times times. debt was X.X and ratio to X.X EBITDA our charge was fixed coverage

we're So out as in paying the our maturities, opportunistic many to grow our ahead. strong company of major position how as to it using addressing quarters come nimble and sheet issues on running companies focused operations and are upcoming ourselves we and be their dividends, to their taking balance this dealing and with

team that a CubeSmart We times the benefit at been also here of tough having have through has before.

up continued this service differentiate At why ourselves our again innovate team up our the point to customer to we our sets culture, collaborative a will to a focus Eric years us ability and that experience As way call. for our do Thanks for line well us taking position our to questions? us compassion, today's so the join success. some the for for and time don't of open in industry in

Operator

you. Thank

begin question. now of from Bank come question-and-answer Instructions] Please your will the Spector question proceed today will Jeff [Operator with We session. with first America. Our

Unidentified Analyst

us can bit you taking the something just going expenses you about guys this Spector, marketing you forward? wondering that This and and for how you're about coming look little then for [Alexa] guys. in we was situation or at the Hi on maybe taxes Jeff is months? today. a Thank if I payroll on can tell should thinking Anything talk in how questions.

Timothy Martin

Sure. is of really happened things all expenses consistency question. have this much that the all. since at Tim. aren't is Of the your started Happy Thanks all to. impacted that here This for

about be of we when thinking the expenses. area expected nothing taxes would estate biggest previously there's our talked continue and the for are They term the from change thoughts largest pressure standpoint expense our that item expect had they will about of us there. near in about are that and XXXX line guidance trajectory and an to provided real those So we

ramp perspective to spend. continued our up From marketing we've a marketing

still great of our Our marketing job adapting marketing attractive continuing on investments. and team ways returns does we're find continue to spend evolving good and seeing and to attract to to customers a dollars

open don't a we much to the keep impact work them so stores an to we a From have a and our been of that continue crisis. and staff our hard an first payroll our quarter in would serve in pre-COVID-XX looking customers worked very impact payroll to we from back again perspective expectations way hard see perspective, can teammates expect what much of didn't our versus and very

Unidentified Analyst

Thank the Great. and SmartRental. you Okay. question then on next

rentals you from few have the in of were many platform? past days coming that how So been

Christopher Marr

is this Yes. Chris.

ago, of days able went eight So was the about introduced customers the I mentioned permitting April in contactless terms SmartRental to platform their of to be process the Earlier a as and entire the XXX% in complete as were only we through rentals coming that. said product online. process to I

of days platform. in that through So eight SmartRental last zero, we've grow our the rentals came from yesterday seen XX%

has the growth that been days option to or we awareness of continue awareness and the customer in base. as the So permeates exponential that expect eight last and nine brand our throughout

Unidentified Analyst

you. Thank Great. Okay.

Timothy Martin

Thanks.

Operator

next Our Smedes with of question. come proceed Rose your will question Citi. from Please

Smedes Rose

Hi, you I any program program? that it ask contactless Are margin cost to Does run as it assumptions on of there? to you grows. kind thank just the you. wanted less there

Timothy Martin

So, hey Smedes.

customer concepts the in think such certainly paradigm about parking think a delivery us bottle with for I model of the water lot. the new we have we as greeting as a

them success one is shake. we of Our

revamp So we've significantly. fairly that had to model

I teammates to service quality different in continue customer but and require a way. continue forward part deliver that just experience will perhaps store move as of to a our to to is we think be integral an as high our intention likely that

have So or something time to health to to traditional this continues no a to frankly offerings, permit. we're change out continue to if over back touch business again out how if I and think new low experience go normal offer to conditions we going prepared look we're more or figure touch

again think able be I the to spectrum serve too well to to that as move think we ends of we the but have between us very tell both optionality So I early pivot forward. certainly will

Smedes Rose

think when similar of in I you be I have pipeline what Okay imagine to been and something the last ask terms forward of, that the rates? was that of fallout And recession look then to there, back elevated you -- just I or the attrition guess is wanted now? going kind must sort do you could

A Christopher - Marr

the I'm elevated just pipeline attrition sorry to clarify to rates question, and relative customers?

Smedes Rose

last just recession. No, in the

of been what would and to of on and period or declined now deliveries a a I I'm that think it kind of time lot able contracted wondering it's track lot we kind whether situation the the pipeline of a to just deliveries deck was you expect ultimately as similar well at and

Christopher - Marr A

you. got I

terms In of supply?

Smedes Rose

Yes. Potentially supply.

Marr A - Christopher

think immediately wasn't before it XX into is comparison in quite majority the so I that of supply you delivered makes Recession of volume challenging that the sort the and deep. pipeline a had kind the coming was of the as difference the got been Great

the our and I ICAP think yield New York are those a in cross permit the you a party grind to hurdle the we're a it suspect will in in in and going obviously a through to eliminating before any I a to halt. City self-storage was or sense New to impossible that that get a for able finished will already have seeing and underwriting makes [CO] think building couple on. passed ability It legislation to New almost York. I and we have third a that July to X basically see COVID-XX One, development that rational platform, will use York deals City just makes have halt bring things unrelated the but opinion self-storage

allowed rest ability they're through seeing projects doing In Those unfortunately reevaluate it's of we're third platform bag. absolutely the either for in Those and underway they're party or them the country pause have construction. horrible a feel continue municipalities mixed deals the many who that. are we that what the to not to

can continues. progress sitting continue in where construction areas you they're other So

point. think I as to difficult what this is reducing Again this will supply of doubt have impact an new we degree? think move the of forward. no So To pipeline I tell really at

Smedes Rose

Okay. Thank you.

Operator

Metz come Markets. will Jeremy BMO Please question with with Capital next Our your proceed from question.

Jeremy Metz

and Chris, terms rental you opening Hey activity. in second mentioned the of Hey any as versus on XX% of you of Can to happen move out, the context encouraged side pent-up your then any that a by well about being moves the color trends April there on guys. in other same talk noticed recent terms you also had started in rent fall? here what those in

Christopher Marr

Sure.

has seven in over as even to In trend last incredibly I days. of terms that has rentals changed. relative said the XX April encouraging vacates not been really The

mentioned which year. seen been quite So not level has increase of we have as below significant any significantly vacates in that last I

have points rates rentals, from In on terms of rates, in additional net out call effective I basis that it quoted say I percentage XXX would gapped April.

Jeremy Metz

just comments wondering helpful. that's given That's of on light here Are very on more trends company? rates those I and supply going am market in occupancy April the getting what this of pipeline? on where and across the latest and New the maybe rates discounting than aggressive what's trended have you is the probably thinking in broader York still or in some across on

Christopher Marr

teammates No. the say of to shout the to a our out customers I would again population and to boroughs. our and

be should are proud. have been extraordinarily proud great. The customers -- been and extraordinarily has they York extraordinarily teammates New our

less albeit but Metropolitan year Chicago, to or relative some look about York DC same. than have about same, see about the performance degree a you at Miami We been been has last to traction if has Washington New behavior collections say even customer Orlando same, much the the been continue to

positive as is of the we real to a this. be again So resiliency through the population York of going think New I come

Jeremy Metz

always up thinking right. Last etc. me. for All you've the math, Great. brought one deceleration, Tim about I'm is math

for starting here got wrap suggest you're rent got here, a an saw bit with still meaningful mean just together here, lower that heavy you and some you've quite dealing supply, you in down caused would Chris we point [NCRI] math, point fall you off mentioned what it do So you a of program, the fall-off occupancy, the question can effective all and simple something than and We I amount GSE. pretty expenses. to worse the a

side that? how sort What and should a goal terms potentially can sharper be would So of of about just that? What about we on thinking Thanks. wondering puts how posts, provide either in some be of you think takes we the do reset? of

Timothy Martin

what of time, dependent upon increases the ones the of within see, of spend demand of good continue how pass to to mentioned; back a level of pricing, a Okay all and reasonable factors Jeremy. Thanks the and results including color those big long reporting what guidance. of biggest customers, for one what that we The course things that is is even you are does level to this of providing rate big getting continue. math any I'm fan challenge all discounts range is goal but for existing to big along fan question. on I'm incredibly do trying so posts

to And compounding those builds and don't to something to builds customers existing remarks to it's There's like address all the impact do builds biggest until a and is no due procedures. normal when the mathematically every input a in increases else things. as to reinstitute range so surprise such this same go and trying as how for the able more rate based it's such the providing it's operating just of does wide so to of last potential seeing you and opening increases outcomes time guidance start long always we revert that and can course it, back and month and rate to you're is everybody then primarily

at had time. but pulled our to providing inherent So this some all it's you we why I provide and guidance I wish not math on

Jeremy Metz

Yes.

that is again opinion feel actually just a today? can to is it's feel is and little better there hard can is how acute worse better uncertainty or see that's then get happening? I you about then Chris here mean I you I everything about just would think all much worse that's you it potential so feel, feel fair -- ask then back just an you

Christopher Marr

Yes is Jeremy Chris. this

where the to think relative an able our other business. almost every different frankly a offer basis better opportunity are I to again I it's but customer contactless feel we use on think we're we about is to unique pretty which because products

to able an the opportunity there. to be manner, us customer self to opportunity an for So that provide is demand in creates use to meet with the storage think that I

in four now is all patterns half a we're is walls I coming due my that I in, our Fundamentally, next in, the and tired change, virtual was to in if are that of same thought give at for apartment, etc. we play ordinarily via they looking may methods moving, glass behavior just lease you going full eat hadn't which the approach want of of and and move scenery. socialize a could change sick couple months work I in. about to

may free my need longer for organizing secure a on store finding in be place going customer. I've now been that we to I've weeks and and If or that safe possessions some homework for a a to house for home able use XX my I I period, in and room be need think time maybe deliver that contact the is to different can

that municipality. again to timing option but upon could by see demand So here upon an nice over weeks you months what depending going happens and largely there's in depend the a bounce-back next the relatively it's

that process, those to are customers working arrears are some next our on operating months. states in so, those of beginning rate point at And over I about and to states existing who customers start with focusing normal are go in the reopening terms increases couple back those of in we to the to think and in

manner ebb tell this think normal think reopen to in the something and the again but just continue how this going we back in summer country I we is impossible to So get to can a flow. I it's to new over then safe ,if

Jeremy Metz

guys. Thanks for time the

Timothy Martin

Thanks Jeremy.

Operator

KeyBanc Markets. will Our your come Please question. next Thomas from question with Todd proceed with Capital

Todd Thomas

the York New Hi, seen the the trends sound thanks you the preferences York good of comments hey you've allocating for Any Chris change New changes a some the this you encouraged outside in how and made morning. you consumer capital exposure think those in longer or employment and not that it's term? that sticking just company. thinking way relatively thoughts by how may large about with where about pandemic may preliminary and near-term but and impact specifically might on

Christopher Marr

question. thanks. Great Yes.

first Back connection think do virus from and destiny impact. I confuse city Marty big to between Future and So statistics I not McFly was to the Corona density consisting one and say show will the a

virus you So formidable Hong while Singapore Louisiana most places in towns about and suffer. Kong, world's at be the think they they've settled the to if proved provided, heavily Georgia small containing

but not. I thing York and it's is So I land. can-do done people to same much in is York as live day the we at any Crowding our It's an how New have everyone New people planning work think many one society as and place. urban City it's think this issue another literally to and work and much and on Density incredibly about we the isn't for country how use given one, since people and ultimately live to opportunity land, an innovative are close how many is think time crowding. how density. City and how Many

So of Staten of New has most of unfortunately York the terms Island capita. better you portions per New sense York COVID and dense in least of impact than City the fared think

supports existence cities attractive. walkable the etc. services, And I responses, done well again density quick emergency of what So makes think that's

something cities I going in a ultimately around of this don't very no that the make been we as small to of who able that as no forward. I to a less point view, – going paints view can plan viewed attractive. is rosy Again number have world cities don't picture way number

planners that that have in as the all will So attractive and to still find and always our make they we're crowding and all create of and I'm nature urban less ultimately help continue New portfolio on way York a to been. will on reasons still for City believe the city

Timothy Martin

George fact-checking McFly from standpoint then a who was destiny. wasn't from his confused with a Marty just And it father McFly density it

Todd Thomas

move have net effective during recently tell and rents in you the or during spread appreciate is and you what that trends the Okay. in information? quarter the that on us outs move if but the April how rental first between detail That's and trended rates can average helpful. And more

Timothy Martin

Yes.

know the the years of several nature quarter first of always the the this last about relative largest just and quarter more to by our the that widened than you and usual. spread between business move-out As move-in has out first seasonality spread X% in year

So I a little bit had look on the but you wider net last seen relative pretty again we of than think the to themselves year were when what rentals effect at rents tight.

So I out. would say overall with satisfied with played given what here we're pretty working how that's

Todd Thomas

Okay. generates to I last you've appropriate to insurance one the one And consider successful thinking party captive if I'm solution? could that efforts tenants sort in growing with thinking of platform it the the, What's transitioning income the current a third insurance overall your been just program wondering about management of and and to is tenant terms regard there?

Timothy Martin

the found transition something and a again and compelling have see to we year a and at to To-date a approach approach brings? opportunity continue It's think to very or something trade-off that it's basis the to economics what the future we captive that current trade-off at It's something approach. for and facts captive. approach our Todd, for risk-adjusted about on between balance a our that the we to compared good and a we'll and current continue be we the a every the or on it'll on at. risk-adjusted Hey knowledgeable and that look we're basis that question. is captive time It look not economics a look

Todd Thomas

you. Thank right. All Okay.

Timothy Martin

Thanks Todd.

Operator

next Ki Our come Kim with your proceed SunTrust. will from with Bin question question. Please

Ki Bin Kim

there. out morning Good Thanks.

us your base if a aspect Going customer quarters? more back the to in And happen versus given so could seasonality it it; any just year rent program, to summer of gets increase? percent increase existing rate tenant in does there's remind what you other the

Timothy Martin

Yes.

simple then to about practices our that along think So Ki pass normal times. a Bin to it in is way

a increase, length layer two a customers rate of XX% Our us every months to get a more so with along that been rate on little roughly thereafter median you going us customers top more hovers that practice will that us years. that means for for with X.X then more rate has and that XX year, of to of months been and customers a with have stay of increase get with bit for are new and been right customer half has XX% our who around passed than then than of half months six our XX% been have us increase

you about think that how are folks So of to who all it. as getting math many and

six mark more the means From move seasonality up come towards people move-ins more summer in that perspective than are the on there trends that given and are time. weighted that month in fall winter

So in given rate a the little winter fall increases. the we lumpier little way the of bit see in our more practice. in a It's

Ki Bin Kim

it you same And math a Okay. because is basic you'll growth if but stop the to bigger add that the doing impact. year that you're rates we every know store NOI ECRI program notice doesn't obviously really

it basically same if half is getting risk? the math be math XX% is it and NOI if much would that at basic the that's rent So customers increase how are your of store

Timothy Martin

customers receiving month. particular the will versus be that Yes, who

don't biggest X% or this population earlier of the X% depend on to response is how little what be would you and in a then the card long it's do set it if all be, would mentioned some I wild impacts which that's bit. one and that because it of it So in month is, materially an to going

continues gets complicated of to is when from you it If this more our volume it then a for then and six out month try movement really you second little don't because build it's now continues and lower. it there model the it all bit to do months from

six to less folks in months will moving people less be So it there because are would exposed there in. that be

probably in it's our thing probably of variable all in It's here. to it term. the impact short not it near the Needless say So biggest is to would easiest of the is out. here model variables that the term results the

Ki Bin Kim

Okay that. this to question and last

would open and are ECRI cause maybe things the basically municipalities steps are volatility? or about that lock re-implementing up, are there you As program more thinking to some other

Timothy Martin

from continue want consistent with businesses you've those to to know. state orders, to actively We as as to all others. we we appropriate monitor rate stay-at-home to do course per the have will can. increase normal practice we all as we're get sending and normal within ultimately heard our orders we monitoring it's of could back letters time markets because monitoring want We're emergency revert Again behaviors get soon find it and what and customers things to then back to out things to of and to

carefully since top will of all stay have this been we on so started. it we And as

to difficult So forecast.

Our get business normal goal we be back as to can. would as quickly as to

Ki Bin Kim

Okay. Thanks guys.

Timothy Martin

Thanks.

Operator

next Meng question. will with from your Please quest proceed Zhang with Our come JPMorgan. Han

Han Meng Zhang

much by you’re Yes. delinquency Walker for actions? Hey guys. April-end I of was occupancy not was Hello? auctions doing wondering how your affected

Christopher Marr

Chris. is I to occupancy basis the it's say auction. XX a would it's points about probably that conservative lack relative of Yes. of number

Unidentified Analyst

it. you. Got Thank

Operator

Our question Please come Belcher next will proceed Fargo. with with your Wells Jason from question.

Jason Belcher

year-to-date on square what Yes. size tell three detail us you they acquired little mature are in, facilities what back hi, just they of more they're those in feet? provide if terms you've how just the and a acquisition could front, on markets are, wondering

Christopher Marr

happy Yes. do to it.

Jersey that quarter closed That and as end store on One then long-standing our and really the in assets. quarter our in acquisition store with two very Hoboken Antonio. It to was fill are those So existing the to and release. Maryland New on one relationships. one portfolio. lease-up are great stores in we about under in had nicely you was we during subsequent San saw with They existing we Jessup contract additions in excited both

stores over are, two that each they with are - that incredibly with are with of and have done in also familiar it those XX% XX% we're but relationships cases separate taking those we've excited folks call stores those that we long-standing each deals Again occupied in range. and were parties

not So still but lease-up early-stage lease-up.

Myers. joint Tampa venture And joint so then in three involved fit that our all are consistent also six That saw venture And closed Atlanta, joint a a one Fort XX probably in we strategy. for in that one assets with invested and and you Charleston great then that assets in three venture. us and in investment

nice that's allows stake assets, another that a return co-investment these significant some create perspective platform. we made fee some are from get there for platform there some management our value in our we've from some work to those to our opportunities have there. a so believe us us a leveraged do to And standpoint I add management pretty stores of that and expand for and

Jason Belcher

a Thank then JV you and structure just and partners you new remind many is partner altogether a have the could now? on total new new in that then that or us an JV JV JV, partner how you with existing JV

Christopher Marr

a a multiple and specific we is venture. separate partner have with a all ventures non-consolidated four venture five debt with on that has and lot put so see are that we of of to done handful have development a partners that of they joint separate ventures driven ventures we've with. of have so an many then consultant by such joint venture a joint you standpoint joint times done partner ventures we those was on folks in that overall have we joint on they're the have stores largely stores into that they venture one that new that development was a Yes. with and but so development it From portfolio projects that our joint pipeline of

Jason Belcher

lot. a Thanks Great.

Christopher Marr

you. Thank

Operator

Our proceed next ISI. Please with Evercore from your Steve question with question. come will Sakwa

Steve Sakwa

Thanks.

a you auto cash question pays the in a a you currently first percentage is or that seeing between and the the the what couple, auto and pay? have meaningful pay quick difference of are pay Just

Timothy Martin

Hey Steve.

we're on So auto auto for mean auto and via that's and I pay of we our the in hence not difference customers around not we're obviously customers but the a seeing, material card pay pay customers seeing a those pay but pay pay on our who customers right XX% gone auto not balance have cash have are pretty credit well. Collections of collections. actually

companies pretty collection we start approach we be been start to where little bit numbers think so we especially who have I that we at feel as month point and because getting and we date anniversary by pretty are to up actively others some resume impacted things been Xst but have back here not efforts shared procedures. are companies some the operating and this who ease to, stand good pursuing a are about to we're as are normal as with where of of pleased meaningfully going the by

Steve Sakwa

that sort owe for bigger what by run don't I just can does, know far get what day like XX have that gets days, or you reckoning? you what's the where you historically, days, before a mean sort back when delinquent person How to keep XX feel of Rright, problem? point don't worth return no look when out to of a of what's they goods I days start I into you. the you XXX kind collection collect you of do mean, or aren't of

Timothy Martin

probably to to but Yes. answer it question simple is today today because that care mark many be been been, to our for how about difficult with stay-at-home we been historical necessarily like that understanding would in answer to and trying think to as are really XX-day genuine have unemployment and of what's we've lean the haven't to The be and we that performing trying customers the the and sales. exercise situation apply orders

haven't delinquency the We through been normal going process.

if been that things the because before. the is doing not sure we same I'm that going doing ago days, answer behavior happen So same six haven't been months we to XX was have the

your some what I that's question. So we collect hopefully answer doing helpful over been things have we've of wouldn't we'll to XX days expect that previously because that but

Steve Sakwa

do take get third-party of of self management Chris to lastly, can trends? very curious you lot there's sort then I transactions into deals the and fluid venture, guys occupancy curious just Thanks joint I'm the advantage just good I'm uncertainty the that’s been evaluate today? and not rates new Okay. do capital have you about this wanting new of realize a but how go markets platform, you storage, today over probably that underwriting new given how that. a

Christopher Marr

and pretty there, were and mid-March, a of challenging, prospects Yes. market there's at kind gone transact. brought to the prices, seen shortage is remain sharp contract under term out just no pretty would activity. bullish are of private very at so capital or say you've in capital around It's which I a slowdown that deals have willing to particularly who long sort on why The of robust extraordinarily couple them of

across on operating see on what our and peers, before sellers, at we folks much a into a taking start and are handle think like restart. they most very translate handle this frankly of and cautious I to We a buyers get are approach point, think I a better may going see what looks better we it to wait fundamentals can how that reopening and until

I think -- even as difficult. think more the a on development question the I previous I to that's on mentioned side,

waiting started definitely think construction of and if most our committed not you haven't more is you're are institutions the getting see lending those Obviously happens. what I sense pausing that cautious. folks or are to also

Q Steve - - Q Sakwa

to And the of kind that back and what the time Okay. road? necessity. last and levels of on-site does costs just of moving then question the do sort on that industry on of changing over out staffing and just down do kind you more here online SmartRental needs How personnel see

Christopher Marr

Yes.

a I broken it think think record depends. to but I like not again sound

wear is went how experiencing a sales upon operate. to men of sudden the and didn't people to paradigm down a we're and I much and of depend hat what hat a today JFK like toilet. how shift American it's going think all

going definition the here. So past, a it's handshake of customer change to a service the is thing radically in

gives service optionality customer blend able So us pivot with the think to to this battling more I a free depends, it in to are and and the depending approach direct the store two upon self-service between the pandemic. be we market, contact where it certainly

would that to we if said to to it, the technology many sense couple time. short months industry in thought us I allow period there and had be but period introduced for of made a unsure about we of and thought always weeks us answer pretty we do optionality the at we say peers in would and a certainly long our that do compared moment it it we So the basically time. but stack pulled of pivot is don't We that online something weeks. together team believe would rentals unique to it the a in very be of think

we to different I I proven do platform between back have to we have we models, shift think think go the we've that. as forth forward if and service

Steve Sakwa

That's it for Okay. Thanks. me.

Operator

Green Spenser question question. come next Please Advisors. Our Allaway Street proceed from with will your with

Spenser Allaway

maybe a can this your your impact would little guys longer you I ability pass just to it you you. opening in one remarks briefly more how think the specifically thank rates? know this on impact push mention how and Hi, your your changes but some just recent elaborate you term could views fundamentals to ICAP

Timothy Martin

July meaningful medium any way to term in in development for a effectively some deals already up of I picking earlier, on the have boroughs makes doesn't ICAP the X. of in economics shutting hard permitted legislation the impact It think any changes come. permitted the imagine new or down effectively comments time that it's to that such years that don't aren't the Chris's get by it

And a of built down has that gets an valuable existing assets in us supply be we've the so that's have boroughs -- in a won't of should New growth portfolio no it's of our that largest demand York be side the as valuable from share the and that environment effectively of an other in would New steady to be and in and would assets presence not the ability they're an expect New a that shut positive leased obviously that growth, then think in so from more as that lot continue really come developer up the position it's then news incredibly gets been market come a good leading one to company our will from incredibly who the result. underway up market should perspective have has years once great of we years York development once participated stuff a from operator compelling existing in would company supply and in that this in and in York new to to standpoint, leased

Spenser Allaway

Okay. Thank you.

Timothy Martin

Thanks. Appreciate it.

Operator

back remarks. like Chris any Marr for to question-and-answer now session. to closing I turn This concludes the our over would conference

Christopher Marr

safe stay we forward speaking our Please call. on the in again earnings and with participating call. care. for much look Take quarter to you second very you Thank

Operator

very for you The is attending much Thank conference today's now presentation. concluded.

now may disconnect. You

CubeSmart (CUBE) 8 May 202020 Q1 Earnings call transcript