CUBE - Earnings call transcript Q4 2020

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Operator

Good day, and welcome to the CubeSmart Fourth Quarter 2020 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Josh Schutzer, Senior Director of Finance. ahead. go Please

Josh Schutzer

Chief Good XXXX Grant. Chris Welcome CubeSmart’s Tim to President Thank call. morning, Participants quarter Martin, and Officer; earnings Chief include Officer. on fourth and you, Executive everyone. Financial today’s Marr, call

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

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

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

Chris Marr

XX the so and thanking has the over who and and ways. country many business passionately the Josh. tirelessly I’ll Thanks, in recognizing months pandemic difficult lives CubeSmart X,XXX have Good morning. as across teammates challenging our by past our altered our begin worked and during

our delivering customer innovated often has means Throughout, on with we Our and operating as maintained service outstanding genuine team focus our care. of adapted changed overnight. traditional

then revenue and by the assets, from with same-store half NOI headwinds sheet the and first began Our investment spite of new from price second continued proved as in third results our the XXXX evidenced in a occupancy, a our our and focus balanced In pay volatile our in rapidly supply dividends systems and The environment. a balance in platform quality and of the highest that strong momentum solid continued in a quarter our to out year, our very difficult growth. fourth performance state-of-the-art operating and quarter and environment very quarter. flexibility changing year

of at suburban our our inclusive similar portfolio. demand Looking corridor bit and entire rest more board. stores. and across bit properties a pricing Arizona the our outer diversified performers. and Texas had muted performance Positive were across as overhang, boroughs, a strong urban were New across but broad-based We overall, and there and The York our supply California experienced of Nevada both we the had remains results in and a in Southeast growth strong markets, our the our the performance particularly MSA we Acela strengthened solid the of

markets. the team leveraged and on in as closed transactions successfully investment busy core relationships our extremely attractive during our was Our quarter, we

were XX portfolio. diversified the high headlined an by five on Deluxe stores closed also transaction, additional results a quality our Our furthering Storage we maintaining of states, strategy across but

stores to continue over a fourth of be adding for We manager to choice, the year. third-party XXX platform consecutive the

whose year. expected the managed XXXX we And of monetize their are entering stores portfolio many and XXXX to particularly cycle of stage churn ready development owners the are We where this in in open, of degree our the asset.

capacity as ventures and evidenced will earnings trends The look full provide fourth our provide our year we positive utilizing and quarter performance XXXX, the to guidance. over into continued Tim, our now to year turn enhancing I’ll platform far in future. on thus and raising by our us a fourth details XXXX, call as and who to continue Tim? environment we our this quality more addition balance our sheet, outlook. expect and attractively operating to constructive quarter XXXX quality portfolio, enhance to quality from joint we During our the capital

Tim Martin

Chris. And the and you your Thanks on thank call to for support. everyone interest continued

strong basis XXX which revenue quarter As few XX.X%, and quarter, expense Average X.X% Same-store be years. constant Chris fourth in focus that the perform last to well. certainly was on on, up self-storage growth quarter. X.X% news we growth, seen expense And very expectations store estate NOI fourth a up a fourth quarter touched included appealing quarter growth the year-over-year appeals the successful ways. came quarter quarter in for fourth basis points of drive growth better XX.X%. continued us a than ending portfolio and at Consumer year-over-year, for continued and platform our to yielding was over in recent real our productive XXX that tax in for many points in our the line estate occupancy in challenging X.X% and for also growth item headline demand the was a performance real benefited little exceptionally Same-store welcome unseasonably is results a of from year has taxes. we of plenty down assessed X.X% values quarter occupancy negative have the and into

a our quarter, last And quarter remain We pursuit on the quarter team performance our of non-same-store an disciplined We was as growth. growth share, and during strong fourth for for business our FFO opportunities. reported and growth across with year. that over portfolio internal growth external busy management experienced in front. that also external representing active adjusted, very $X.XX third-party combining per XX.X% We quarter, along the our the all of

$XXX.X York, transactional we Storage includes quarter, five During across the XX announced total stores December. This invested in as closed we fourth million, our in New which Deluxe previously acquired states.

million. we New the $XX.X total completed of quarter, a also the store price of in sale for During one York sales

management to and XXX to we total enhance XXXX market added bringing year, stores the brand. our year the program. XX fourth ended CubeSmart managed stores expand We third-party to allowing new finished XXX productive adding us position quarter another in our off our the with the front, On stores

the a Proceeds maturing sheet, the to with were partially October growth X.X%. the as refinancing yield continue seventh funding BBB/BaaX our grade of market with busy consistent during This from we’re a a to long opportunistic growth On we external deal, commitment bond our million issue ratings. I and quarter quite closed $XXX a to our our maturity you’d the On investment demonstrates represents expect external front. bond and on a XXXX balance walked partially And we with levels this X, focus manner, of conservative on credit term we through, just reason the to capital ongoing perspective in on with XX-year unsecured from growth. bond fund offering. in offering

of million On October coupon the had bond balance in back the about. deal debut talked completed million charge. X.X%. the of XX an of opportunistic for of a $XXX portion $XX fundings and proceeds to side, we’ve growth from XXXX That the we redemption external our support on included The use proceeds that a was redemption provided

were active was acquisition, debt, of repaid the we of secured We also equity the assumed $XX.X that capital. million during quarter post-closing of rather. part of fourth which at million portfolio Storage closing raising or $XXX.X As Deluxe

As valued $XX.XX of units an for part at average per $XXX.X issued price million of that Storage partnership Deluxe unit. transaction, operating we

equity net we our at program, X.X average $XX.XX were raising per Additionally, at-the-market we utilizing as million busy of $XXX.X saw price an million. shares of common share proceeds

portfolio. being opportunistic on that end the In based this package included us an ratio asset in XXXX on years, guidance same-store release midpoint we continue opportunities Consistent and XXXX, released on increase be we will in and approximately compete XXXX per identify with an And And sheet can basis. new the in we to entering that’s competitive supply is with XXXX XXXX. dividend included bringing property And assumptions supply our and our a share but that the at our of are expectations X% a details all strategy. in a deliveries in tail evening, guidance, with a any from suggests that our impact Obviously, attractive XX same-store pool perspective, to our compete approach our supplemental increased our prior all to guidance, our FFO our the were we of same-store prepared new of of will stores. our announced funded XXXX position So XX.X%. related annualized based the growth us payout our the execute well night, lot a earnings the delivered details dividend XXXX of XXXX. last Embedded consider dividend, by pieces. of importantly, XX% stores. of disciplined We XXXX, that as to asset of on impact speaking $X.XX to in as XXXX great forecasts for detailed with December, of store ground it of meaningful increased quarterly by at the impact if level to up moving of last experienced balance adds a up our allow growth we’re

that XX% grew again back that down fell perspective, XXXX decline XX% We further So to come impacted then in we XXXX, by in XXXX, to grew of again the then impact from XXXX, started to as down recall stores XXXX. now line impacted same-store back see to XX%. in trend see XX% and a supply had in to you’ll in XX% we number

we of continuing new impact from a as see move we’re So supply to lessening signs forward.

believe a pipeline developed acquisitions But our and progress make meaningful stores NAV create Our and up create We the drag continue in and non-stabilized standpoint. solid course investments really stabilization. development lease at accretion acquired stores to our store per to FFO those short-term, of from occupancy share. will an newly

Our negatively dilution. result by to XXXX as impacted is share for $X.XX per $X.XX of a FFO guidance that

to continuing You’ll lease compared is in about as it’s unless added that stores down up, pipeline. per $X.XX dilution XXXX the though are to XXXX our note development been to the share

FFO include to activity acquisition Our impact not time does disposition levels difficult activity speculative and are any of of the as or guidance predict.

XXXX. to and we’re close So glad results a to report certainly XXXX bring

our to year We’re and in ability portfolio the reinstate quite be increased accomplishments guidance, year out new nimble during a quality, said, many gave our promising and our us nice earnings team’s platform, XXXX. nice ability have it’s That our team, provided challenges. demonstrate that so visibility, changing these and our on systems, and proud again, believe challenges to our strength to to quickly the I move XXXX of efficiently and to and in close a react environment. a of

thanks the morning. us At joining some on this that, up So operator, for time, again for call call let’s questions. with the open this

Operator

We’ll now of Alua go Askarbek with Our first from begin the comes ahead. question Instructions] Please question-and-answer session. Bank [Operator America.

Alua Askarbek

on a Congratulations active quarter. morning. Good and great

a little guys opportunistic guidance little commentary on are more the is talk in of currently So is going your like Is kind there? just bit about guys thinking strong how you what I given the that what seems low. wanted balance to your thinking about acquisition for pipeline? Just in a you just XXXX, mainly your It sheet. is bit are guidance

Tim Martin

believe a we’re going lot participate to great activity. compliment We Yes, market, that bidding difficult much are market. are of to stuff the we it’s come rates a the quarter, thank that you of to where strong a There year that but that on are will be assets a It’s or a some question. think predict Cap is ultimately in aggressive. And people it’s certainly competitive. appreciated. for lot we come see on to there’s of that

past appear So little to it bit we that be low. at at and experience, the a looking provided range would

pretty we I be able that our to think by confident about level at comfortable managed our and thinking platform that attractive Certainly, we relationships, looking existing opportunities transact that. beyond we’ll that in feel we third-party feel find we’ll here that into find broker us, are when certainly a on if to bit visibility be where and into will fit but we today. cloudy transactions we is as opportunistic attractive opportunities ultimately sit little

Alua Askarbek

Got it.

opportunity any then, new development on been do bit you starts start down, that this development. I I more the know has guess, trending And little just to think a something year? Okay. there’s but

Chris Marr

Hey, there. It’s Chris.

specifically pipeline put the Vienna, in we more Virginia few a So now.

for looking, opportunities So focus Boston we are we be in we to the in on D.C. will corridor selectively markets the adding. again that and that that Washington,

we’re to able that advantage I unique own find think we portfolio take per where square for pockets a enhance we or are and capita. pockets we can in are Those low stores to sits, think of for today becoming that at more stage in the of our operate general increasingly challenging demand this cycle. foot to those and opportunities markets be the underserved where looking

off activity isn’t we table, beginning the that but area we’ll on at it see have the would of I cycle. the little in we less all So seen then likelihood, a would bit say,

Alua Askarbek

it. Got Thank Okay. you.

Chris Marr

Thanks.

Operator

Please Our next come ahead. Sanabria BMO go from Juan with question Capital Markets. will

Juan Sanabria

hoping where I spot be to Hi. the half last assumptions versus a I’m guess, to rates guidance to on second Good any know, if first little morning. don’t speak could provide through I you and half. guys bit earlier trended, occupancy And could year? first fourth is have would relative color the you the helpful. how

Tim Martin

Sure. Happy to.

So with thinking doing as the Certainly see that high. we are out XXXX. I’ll enter start so levels how playing occupancy things about are seasonably year, we we in

quarter. continue first be in certainly And pretty so performance, we to saw is the half we fourth half that relative to first as would going expect robust performance to XXXX in

comp is in impact from height and the quarter, the quarter that for easiest pandemic. sector Second the being the us was given the going the to broadly have more of obviously that

then into start levels think of back to returned the get of you seasonality what in as when to of get demand is back half half normal, a we of to year. expect the the we return I and normal the normal year, levels a

particular the a today. to we than demand that on we the part had was once came does. very back just had the going that occupancy we’re more occupancy Again, so difficult half at XXXX, quarter it as of – levels, certainly into on an a to typically and have different the reporting fourth quarter that pretty of and from us comp saw very, in strong year to And standpoint, a get we’re

I how anything or if supplement to broadly out. here know any rates how plays sit or on today, that’s about as color we you demand through. think add – think that walked how about I we So on XXXX – anything we don’t had just Chris,

Chris Marr

Tim. Yes. Thanks,

to same pool opportunity Juan, physical the across great rate we points side XXX we the on and occupancy, is than as see So the today, broad sit basis deep higher continue country. today In store year. here last widespread wide a and

to We’re effective for growth into range push XX% rents for up new the starting on country year-over-year net customers. average the type across

QX, very challenging going a Obviously everyone as QX, although And are it to was part really comparisons. you Tim move optimistic as and the their described, year year. last relatively So impacted normal, most was QX then have QX unique last for supply. year-over-year for into obviously by very, quarter

through be So to And return unusual. underpinning for slow there is then, the end thesis that of comp a going today to sort back our is process. more the December the year of normal gradual July

helpful. that’s hopefully So

Juan Sanabria

That is. don’t Thank Chris, you. you And one mind. more if for

of expect to Any the helpful. some maybe that quantum, of color more be are would in managed third-party to management stores the of flat? maybe number business business. attrition XXXX, still alluded potential in there kind You terms grow or goddess more in Any do you the

Chris Marr

Sure.

a question on the I we lot the to additions going this little of fourth So we’ve got the very to The remains and do is optimistic XXXX, we a as be of just platform. and pipeline that to expect alluded bit to, the grow business quarter. healthy saw in in outlook

assets think to bought We and the we had group the nine, where, market nine – took were not the that additional. I in that program one by buyer self-manages. bought in or owners eight that by had Deluxe was assets CUBE the eight deal out CUBE were another of and buyer well,

think that fact stabilization. on out were those that entering for all not of that I XXXX particularly is to see lease of physical up starting benefited from Again, monetization get high XXXX, us are tailwind going stable certainly coming So those some the of the also you’re levels just think to to demand. of assets the I closer assets,

stores against occupancies pretty to but going So of market. is to bring help. have impedes and that to provide new moved owners side think The up to nicely, it’s competing stores the that’s I are the stores, some that other those going

Tim what and as our underwriting said, in our diligent fits into portfolios. not, pretty in We’re we’re

come not the are, of those numbers. if they buyer will we out still we third-party we stores. always aren’t, So be for the But

think see be I XXXX being we’ll pipeline, So long-winded net really good think brought positive just in continue summarize, to of the some market. but again, I to be assets developed to continues to we’ll answer,

Juan Sanabria

a Thanks lot, Chris.

Operator

go come Capital Thomas question from Please Our next will Markets. Todd ahead. KeyBanc with

Todd Thomas

are the Do being reasons able morning. you Good little there with CUBE you’re what seasonally rates the picks points other as effective few Street demand next Chris, the XX% higher weeks. raising rents renters normally net from pressure raise or that to the that do here think might season and/or bit, experiencing potentially you would some the peak rents up hold you the back to portfolio leasing do industry across started further a as that in and further? similar anticipate or gets

Chris Marr

the we the occupancies rate. a that we’re the industry good for season morning. do as to busy will there’s anticipation, believe create occupancy Todd, the balance and opportunity focused The XX at on keenly We we’re between on sit traditional trying here that we’re that within movement. that – at, typical of of more demand an February

the housing a in I self-storage going on industry. what’s is think positive the for market industry,

industry where here very is opportunity There are home unique positive the for labor. you’ve the the their because have that. are with folks in challenges market materials selling home got building and who We

their they again, new you need the So where have is and use use ready to home, home our typical not summer products. someone that in sell yet, the

factor to that’s think for going positive I a be So us.

have to an gain So we’re likely renting a filling at answer late we’re over on do because again, rate customers and long-winded today summer too rate. and the opportunity spring focused a of at up higher and low going additional not the but is, think today, we to

Todd Thomas

up XXXX? to I of question, contemplate guess, and anticipating does half in Juan’s net effective back quarters rates then following on the of what the lower terms in in of occupancy and And Okay. are the third you guidance the year-over-year year? circling guidance fourth back the And

Tim Martin

Yes. specifically. Great the guide we to don’t question that question and

more is the our time occupancy as this into provide year, the levels line, the quarter, we of probably XXXX color that So point on half Certainly, likely at guidance and back trend specific the so. in than if don’t in of they expect little in imply to think we we guidance. normal the by return year, a our rate expectations we that back the would of half XXXX the to as bit would you to seasonality. and be mentioned, in range get are or seasonal directionally, lower the normal the levels more things return the were occupancy get would occupancy in that that within fourth to more fourth of a be they We XXXX. we But components, embedded quarter as it

Todd Thomas

overall underlying What about are relative comment York you store are Can on you guidance. New underwriting portfolio? to that? that How York? the assumptions Same New

Tim Martin

– very it. the of for similar Yes. rest Very similar

Chris Marr

the with in Manhattan. stores markets Manhattan closer kind stores the from to store a are little are of consistent Manhattan boroughs performing our bit very further that The away and that are in the

the also We New amount a Philadelphia, only Washington but Boston, significant exposure obviously in in in York, D.C., not have, lying suburbs. outer of

well benefiting there we’re from as movement. So

with We’ll So to of quarter the consistently Washington continue pretty New perform perform I portfolio D.C., will in think the again, XXXX. rest there. Philadelphia tire overall all Boston, York, to continue

Todd Thomas

just physical the any other you higher is, the a units. one at last difference on And regulation was locations in the relative there and today. talk you today economic there physical still that York today. to all was you could Okay. by Is some or auctioning occupancy year-over-year non-paying is basis of portfolio about if sort place where, meaningful one occupancy points between maybe there’s I difference and curious some yet XXX I New in and around that normally off mentioned occupancy just understand and have

Chris Marr

like I been meaningful has where there real line say in it is no will much difference Yes. historically. with right

has is of often about One extremely things that cycles. of solid is right the our industry done one as in again, customer bearing now. base it the the – shining

historically, We receivables. low have

historically We have low write-offs.

folks, it we’re unfortunately a us So, time. which paying have a downside – they is and have aren’t can that income to lower past. on like The are our you much to And paying a and care, than seeing us need-based that, the experienced again, in the result, for have less seeing we what any the and fact to would largely placed is positive fees product I recession. actually transition as folks did see due other change, who have they are flattish, we goes for we think they late in less disclosure, as been in the during we the And is value in we late.

Todd Thomas

Right.

Okay. great. Thank All right, you.

Chris Marr

Todd. Thanks,

Operator

Please Bin Next question will ahead. come from with Kim Please. Truist. Ki go

Ki Bin Kim

Good Thanks. morning.

our in than look the demand view, in different the when nature has of portfolio your you York other that cities? you’ve influx So New at in across demand seen City that

Chris Marr

one – bit likely; No. the is at at we Manhattan different XXth that at store really, really a units. smaller to We it is is mix unit there towards our however, in try the one continue skewed Street look that, on little

a of apartment. customer likely of storing So, not the you’re contents your there, you’re than entire ours more if

to a example, Long look trends that are Island stores portfolios. we from significant the some for the anything than question and Long in Park in closer we and City, in for So, into different Island see Coney difference we Slope, York don’t and out the see Queens, do of really those do Westchester Jersey the nor dig story that we stores Island when North or New Manhattan,

Ki Bin Kim

your that’s your on and part a thoughts issues you I normalcy net back are City people of on already Okay. the look curious normalcy, to to migration I’m about, that is this And country question. answered return how there. think because that overall as concerned But return of York continues about might New thoughts to the just curious maybe, different,

Chris Marr

Yes.

We’re bullish return. the on

create to us. I good demand for think going it’s some

the first want either into return for the to or who time. folks, move workplace have You

all last physical about got workforce the the able graduated entertainment or You have reopens. and and and were folks, MBAs return to who thought enter from of to spring they they shopping, their as yet to location, going college be or dining think in the

of change to positive. going All be think net is that a I

is going I changing. think that work to again, we’re not phenomenon also find the home from

perhaps a back going into assumes office you five. the And a four nine or everybody week days go week I think in week, a back day so five you’re but one from to don’t days

you space have the work home from is be customer create to the needed And to going sticky in So, to is our continue continue to used. to be to going opinion.

within are first well. of urban all is the the think XX stores I and we second near-end before, also us a quite only we I as MSA our So, portfolios, that well in – around situated the we serve to in think I suburbs concentrated core, have not our fairly and rings urban have top in position but noted because balance going

Ki Bin Kim

you. Thank Okay.

Operator

Smedes ahead. Rose Please from Citi. go question Our come with will next

Smedes Rose

you. thank Hi,

drop little you New given you a happened last ask with tax on the see changes for moment, of actually a the keeping Just York wanted the to just to start have I laws bit of started that pipeline anything in some year? out side, the to supply

Chris Marr

is new Yes. of a this a combination and we’ve Chris. few seen Smedes. Hey, drops. nothing

zero in example, this was for the supply So new Bronx. there year,

XXXX, in on out Queens supply and we’re nothing. open November to in XXXX, Brooklyn. – at But that boroughs the store move new December one year, that of what drops either more the get seeing were and expectation XXXX come docket next supposed next to or expect a and there in we’ll again, overall, think to we stores in is new into see as few our stores few most. we’re a that through that We we

Smedes Rose

just then I number a coming like of little properties outlook you, Thanks. wanted to ask talked but there’s sort acquisitions pronounced it a your to of more does about Okay. market. And you seem bit,

maybe, lease-up but stabilized remaining still tax seeing spread the a are you, along cited would willing of group have that versus for I you’re changes wondering, uptime? have that are to been properties between is becoming or wider just guess, it than those present potential I’m that anything Some through, kind in might a the maybe, law, lines but opportunities of folks, in breakdown push if the you lease

Chris Marr

comes mixture we’ve I of the versus XX months to the how there’s a would think or changes underwriting it view seen different we’ve on non-stable think lease-up. over XX relates of going that part fundamentals months to what over We the and lot with because any we think past over do in these of seen same-store in lot between what up calls a I the recently we’ve that that six meetings what stable is we’re experience and seen as the don’t the strong as months really market on next in here particular. end about past performance. to about risk talking

are gaining the fiscal that seen which have owned managed things accelerated pace, in they’re lease-up and both across occupancy. certainly is we’ve our think what portfolio, I at

demand the now, – an think if years And owner of last so physical stores the constructive here to here, pretty rates, from from a standpoint a they them for with market. occupancy store do their the I’ve push a bring standpoint, along ago, where I not environment of are is because nice development seen those you the occupancy from peak this over three that to might supply have cycle be be fully that last stabilized, pretty see those seen They you’ll these stable. those being near stabilization. close a but not again, opportunities. owner, about we’ve about the a they from a long-term of a quarters standpoint, if that when to couple where point gotten of are to probably things but to are going are getting lot combining, think they’re of

of think cost to how So, and be of bidding look it’s of a and other at people their on how look in think about all transaction. people just at those really variables side capital about year they underwriting the their how to going interesting that

Smedes Rose

Okay, great. Thank you. Appreciate it.

Chris Marr

Thank you.

Operator

Our next Todd Wells ahead. Please from Stender question Fargo. come go will with

Todd Stender

Hi, York comments New on your thanks and thanks city. for

far, by and rents. that city them in guess York theme, you color boroughs? there, the portfolio highest the you in about stay you’re any are on your $XX friction are your raising Have towards revenue can any rents to I now systems management experienced getting rents Just New side? share rate what saying in the now,

Chris Marr

where It’s Hey, property the we on than in Todd. little in all. they not of the they friction the in boroughs, pre-supply Queens are change near given are overall a and every different specific, we cost rates but bit obviously are assets. are few in been our at asset in Bronx. Brooklyn, anywhere Again, – have rates no structure a had

the an accustomed cost rate of customers to So, in-place customer basis. annual of is used storage. the process to the base on increases The are

so perspective. a bit before we no of grow. few a in have Coney away from story we a getting to great Coney where a from still of opened original are, where Island us, with we have were too. markets influx and Neptune is believe still of rents had from Cropsey where example to Island so, to continue supply. that, comfortable its that is we And room concerns that our Most significant our quite

Todd Stender

What keeping growth you’ve Right. that X.X%, as pretty range? towards can guidance, the end it the expenses I That’s could had helpful. especially And then good looks, but experience high same-store high in in QX. check, expense of get drive as

Chris Marr

of real number comp, I pandemic, a you in create about in comps tax as quarter it Well, in forward, quarter, estate refunds XXXX at to lower I talked hard to some the because taxes then that height news as the recurring I largely XXXX, you had creates opening tough you fourth is have it’s real are my expenditures driven here for event remarks great tough things the periods relates a think where you news of tough be good have a estate a the comp think times. into that that that had of by this XXXX. roll in

certainly, So areas some are good news. there of

very a We the ways we basis to good continue think to are dollars line. top spend to to that find very attractive marketing drive return us on

continue on daily we’ll marketing and expense good find continue will in opportunities So, basis those that at to we opportunities. then find expect XXXX. look to some of a to

little a it it’s those year. bit lot first in the of things, combination a the in here it’s last part snowed So of of year did obviously and

the drive so, the be release. our of that in that range things lot expectations to we And put small within

Todd Stender

Okay. Thanks Tim.

Tim Martin

Thanks.

Operator

go will Michael with from Please ahead. Evercore Our question Lehman ISI. come next

Michael Lehman

on quarter. Hey guys, congrats the

bit stabilized buckets? Just a maybe of about rates you’re one lease the opportunities looking cap guidance, types kind that on Can of of at acquisitions. a within it’s whether more more around quick maybe those and the you are speak for that up it’s me more or

Tim Martin

balance we Yes, have we as have a look strategy we are it open on try to stated pretty we assets have that have – – pretty the non-stabilized, want we we represent that grow of own stabilized where what where a particular a portfolio. sheet the view sheet long want view versus to and have is open we at a of quality to relates don’t balance to to we’ll on our

opportunities are that stabilized So whether comfortable or for stabilized we’re that we’ll that based from it down the transacting underwriting whether it opportunities be and all into not our it’s looking under also of platform, where fit comes return. then when there risk to performance on or goes And adjusted a standpoint. down for those expanded comes to

for ground So looking We would up we’re still development. the a consider still opportunities gamut. across

acquisition relates the stable of way down, least across in as not the that embedded that But that it opportunities spectrum. range focused but stabilized. on where we something at we’ll provided is slowing that guidance certainly the in price again, to there We’re comfortably close at differently think we to can versus one type that all nothing looking And we’ve non-stable. that’s to of those we’re transact, fully we’re particular

Chris Marr

Hey, this Chris. is

– one that’s op. me, now guide to old thing just to the think be fascinating going from and I’m I

look and but your well, sophisticated say, to The was with you operator do buyer more going platform efficiently, your that of part that. all expectation or pay for to this sale that bit a all as with can the used the is not assets it along an is there is asset very an of putting at was to that. stable those upside, comes the shifted on for marketing marketing You sophistication or that it savings, on and has opportunity

embedded think we’re entitled we’re So get perhaps is that into bit what earn a to, going of differing the is growth about we underwriting, this to because where it. ways

to on a get stabilized isn’t hard operator movement so challenge to that’s this all bit ought work that achieving. the deals a as to of little pay where And you the today upside to current

Michael Lehman

Got the it. color. That makes sense. Thanks for

Operator

with will question Mike next from Miller come Our ahead. JPMorgan. Please go

Mike Miller

Yes, fourth XX% year-over-year the hi. quarter? but this, curious, in missed up moving I May comp just what was And have were think you said today. that rates

Tim Martin

teens. High

country. up to it the push So across continues

Mike Miller

it’s at I for you underwriting pandemic? pre front, what about now the then, if And the timeframe can from you’re project, development it. on guess talk changed to stabilize all and a Got

Tim Martin

you look seasons, smaller Yes, changed, I to to physical feet, you closer smaller in it at something could think hasn’t fully was four. if a stabilize occupancy in still XX,XXX and and I getting level, rental that really stabilized a square had footage, think three then opportunity,

least you look you larger, get not that’s XXX,XXX or add larger I that if if can two. store, think I a think feet a if at at you something year to

part on So But numbers haven’t way I a year and I where two you same of it ago. the is. on those part how depends or would’ve it that ago gave years question is depends of answered it that big just changed. it

Mike Miller

it. Got

was Thank it. That Okay. you.

Tim Martin

you. Thank Okay.

Operator

Christopher session. question-and-answer our I like would for turn any over conclude remarks. to conference closing to will the back Marr This

Chris Marr

it’s for here. everybody and in to end Thanks Okay. long I the earning call. getting participating season know been we’re a the

you high the call XXXX. very quarter. of we’ll recognition you posted safe, again upcoming first So you for a the of speaking And remain look the look we and quarter. your forward the then Thank conferences. in CubeSmart. we on forward at are the constructive quality talk We who to on focus results those participating appreciate to in the to to you end of we Hope all

it’ll So there you talk be it, here soon. Bye-bye. before and know hang you in to

Operator

now The attending presentation. for today’s Thank you conference concluded. has

You now disconnect. may

CubeSmart (CUBE) 26 Feb 212020 Q4 Earnings call transcript