CUBE - Earnings call transcript Q4 2021

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Operator

Good morning and thank you for attending today’s CubeSmart Fourth Quarter Earnings Call. My name is Jason, and I’ll be your moderator for today’s call. [Operator Instructions] I would now like to pass the conference over to Josh Schutzer, Vice President of Finance with CubeSmart.

Josh Schutzer

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

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

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

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

Chris Marr

very been Thank the and for has of a geopolitical unusual all week you joining at our us turbulent what in world. end

a year. our quarter our last It extraordinary evening. to memorable for proud results announce up wrapping was are quarter fourth year-end and We company, an truly

same-store from XX.X% top growth, results. grew rent fundamentals gaining quarter basis were alone growth. continued from XXX sector sequential in basis points XX revenue the Sequentially, the quarter, third we posting third operating realized our generating at Our our We all in points, of the fourth strong quarter.

corridor. in normalized All trends Pandemic-induced seem of have Acela to continue markets the to our first perform well.

a remarkable industry, assumes across markets. the XXXX traditional our Our gradual one our outlook return stands my of, not most XXXX as seasonality in for we most of in Many our served personalized have more In inform out of wish years to a XX manner if be from of aspects all historically. us periods more business. that to than our I have they customers experienced

Overall, events, positive about It deliver customers great be an segments. desire our teammates they do be to surpassed where in to all for consolidation be introduced equity metrics fundamentals the work. to is previous all life even us external be opportunities has the The industry. surpassing flexibility Our recognized that stress to we results able the as record growth. debt were seemingly very exciting business, XXXX-XXXX new customer Investment rewarding highs. today. to more are plentiful the how and Attractive and in most see they to able fund of here pandemic world. period and a in teammates across to to their the serve help relieve it post-RTC can speak our readily time that feel CubeSmart was our the to in rapid was their available and recall, capital I Operating industry

core over to a to will perception a respected niche this the member period shift Thank institutional of both. in historically point our customers, real investors matured I the are competitors time new sector. and viewed estate the industry. have through turn the resulted of turning a a these our I call of business as Tim. will sometimes living many has space. are We believe you, self-storage, as in from entrepreneurs we This and shareholders, be Many and our entering and

Tim Martin

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

what up was As year Chris wrapped touched the any sector. of by fourth measure self-storage the in the best almost on, history the quarter

and yielding team, our the at incredibly of XX.X%. included ended at very country fourth and strong was presented. XX.X% portfolio robust across Same-store the performance X.X% operating the occupancy platform of fundamentals of leading in growth, for to results be XX.X%, that to quarter XX.X% the continued CubeSmart Southwest with team quarter for aspects the revenue revenue business, all and with in markets occupancy busy the the quarter. our NOI growth Our put was headline of growth and quarter in Average on of opportunities the position we way. Southeast parts XX.X% us Same-store capitalize expense strong the a growth,

per and disciplined quarter to as We performance continue FFO year. solid growth third-party and reported adjusted also of across quarter, remain our the We growth. opportunities, the during a front. the Combining and portfolio our quarter. Strong that external active our busy share business with growth our external pursuit achieve to see our on management the quarter we portfolio in the fundamentals team of growth, of internal over ability last very led representing non-same-store $X.XX fourth all to that across to growth, was push rates rental along for XX.X% for operating

the for incredibly acquired store is acquired in. in one fit smoothly. and During $X.X This strategic XX-store been Arizona, it quarter, a enabled of underweight our $XX.X in as Texas owner us for Texas our million we that Also us concentrated joint portfolio Integration to ventures, we diversify for went in in all closed high-quality, we’ve in to store and quarter, for sold of a million. million, Nevada complete the for X $X.X was Storage York California, great additional several acquisition we New historically West during of these $XX.X the self-storage markets well-positioned and a stores LAACO and fourth opened into acquired Limited, the a million, portfolio acquire billion on Massachusetts of the store of stores development platform. $XX.X stores

not raising front. growth quarter with our capital balance sheet the consistent our the very funded a very active manner We quarter surprisingly, then, a active to in So, strategy. investment investment-grade on front a conservative on leads

at equity net proceeds of million XX.X $XX million. an common raising shares offering During the share, we quarter, of $XXX a completed

over unsecured $XXX a We of a to used $X of our notes XXXX. activity in million of also and coupon $XXX bonds to investment billion were two also X.X% issue $XXX coupon; Proceeds of in bonds with that redeem with tranches: due were senior X-year XX-year million X.XX%. issued million notes of a fund and

a attractive growth are pieces. a the that sheet us the XXXX. prepared of meaningful us at be perspective to forward in entering we of to We that’s opportunistic end balance lot funded position experienced continue from to tail a execute obviously can allow we our identify all it of ‘XX that if evening. importantly, in supplemental So, to on up disciplined But strategy. package detailed this will opportunities and We last growth our we adds released all moving great being going

Looking XXXX in forward, earnings night. included our assumptions last details of our related release guidance and were

XX% pool expectations will store compete in competitive our as impact new the the well Our our that same-store same-store prior a detailed for forecasts by increased of years, Consistent will deliveries with the with consider our ‘XX of portfolio. XXXX any, new as XXXX Embedded supply stores. our approach if with is of XXXX, impact XX XX are that at impact approximately asset-by-asset, supply in compete of and the stores. level, delivered same-store property ground-up based on

‘XX, to So, we in grew XX% again coming down supply. recall metric grew to started year XX% stores from when see decline in and XX% ‘XX, XXXX. a stores XXXX, in then last XX% impact the to to XXXX, XX% now see in that impacted We trend we then being fell XX%. our we this to by line first XX% back as that perspective, That you’ll introduced of in had impacted

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

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

our up time, sector questions. let’s an up ready XXXX. call in the Thanks execution we’re extraordinary and objectives the lead to some year and hard-working all our energized the for fronts call and wrapping for us again many, Thanks company, our prepared us of teammates Jason, many So the XXXX. successful on helped It remarks. this open across to for this At business for joining was indeed for who talented and of morning.

Operator

with Thank you. [Operator is Sanabria Instructions] BMO. Our Juan from first question

Juan Sanabria

what you guys post-COVID. trends regards are curious seeing to Just the geographic with

You mentioned the first. Acela corridor kind of normalizing

could get further So, maybe you’re regions you elaborate into just and curious if ‘XX. expecting we that as on the bit in what along just other a

Chris Marr

Sure. This Chris. is

and obviously, started last more market. and experienced As Belt I quarter Washington, D.C., Philadelphia, than Boston, normalized we in the markets, seasonality. typical what all second we mentioned, about the those And about Connecticut, year in New when see returned to there, more Coast the trends they consumer West York, to of seemingly have think sooner you Sun

our embedded also to So, as is we those we Belt join expect and we in Sun demonstrate club, an that expectation markets range those respect. Coast -- see in I expect XXXX, that typical we to think more West the will patterns. begin And of about going seasonal into guidance guess,

think that we So, sort of how about underlies things.

already than markets that that we at a does expect the a and market, return their see those that rate of also corridor Acela seasonal by when ‘XX comps, slower of have normal typical potentially to slow about had belt. those the have more a growth their under couple rate think would experience again, you have market in little the of mean quarters more been to toughest So, bit what that pattern to in faster

Juan Sanabria

update And changed just visibility you point, you and turn and becoming then, how years. to a an picture ‘XX And the strength that when one couple last over at on have in again, soon? you give supply hoping York that’s of do us hopefully of into think the kind could New could any market whether

Chris Marr

the Yes. Thanks for question.

to I that helpful is, it again, think, most by So, submarket. at look

Jersey overwhelm the and couple by So, MSA. points. is Island consider different data again, Westchester, with of Not it borough but numbers, to then as Long folks of part and you when Northern and unique a

boroughs. rapidly Bronx supply the saw the So, more the than other

openings, had to decline new Going all began there. XXXX. open from XXXX, the six in didn’t back it We way to anything then and have we

XXXX. there maybe two, ‘XX of I was in think one new and store in expectation one,

the So out docket. you at the really nothing moment, ‘XX to go on

really that’s more Brooklyn moment. So, at Queens, then you I impacted the end at about of When and think analysis. the think one

XXXX, now, so we’ve into if introduced pace at expected. modest, seen So, right? a there out very year of are in Brooklyn, for again Queens, new ‘XX, Brooklyn, I new Queens. as being years, look three in see get Right much, we And ‘XX, quite expected the XX XX five again consistently don’t openings number one ‘XX stores about opening finished. stores, that of again, openings in last a total, Hardly over X in the assuming anything, are and running of then ‘XX a store a or these in the anything in believe, docket, two on XXXX. -- stores

‘XX, X that in to that you the continue there areas in little pretty open Queens Westchester, Long Northern way existing pockets the all ‘XX. that zoning in we over That and see I much that XX Expect a entirety in supply. does XX the couple delivery the perspective they Queens to either bit of CubeSmart stores much don’t in the think stores as sharp into from you in stores, in year is out. opening in drop-off increase a a Jersey, last just running Assuming self-storage of that unique currently years those pace. new in borough have have Queens those or laid have an X supply impact, a again sharp per of running -- on see and a some ‘XX. Island, that are given not there however,

The I impact So, into to impact felt is is in we be in acute Queens Island and and the will year. Bronx North think us, Jersey degree. Brooklyn perspective, behind impact borough likely likely in And from Westchester, declining most then that the think ‘XX. some the this Long

pandemic. our the think team opportunity MSA acutely optimistic. of We is in more in think the maximizing is New team spite the the held of in class. best it’s we’re that, New our spite was the by York So, most quite impacted in well, And York New up arguably, fact York. We City supply, in broadly, in

impact, So, benefits the we’re are do as performance been supply, in look that will to and and there start pretty this the decline and us supply. behind optimistic into we very we’ll we’ve able of out of that ‘XX of proud to ‘XX particularly see be

Operator

Elvis Our next Rodriguez. question is with

Elvis Rodriguez

tenants said speak Belt those I comps sort that that the is back that Sun you in it tougher it’s know demand happen the to perhaps New a Juan’s New up, or shifts York? relative Can to starting now markets, Sun -- to you you’re of driving some things City Just in it question. these what the is a population in return and some York New some the given demand are follow-up seeing York picture? of of result on Sun Belt the are opening things stabilizing, other to as but Thanks. to Belt demand of

Chris Marr

Yes. Thanks, Thanks for Elvis. the question.

here demand trends two rentals first markets year have the in in performance we well New in of When think couple were been months, So, up over XXXX. about pretty here versus months. first certainly, positive terms York of in very the last the of those

there. So from that been perspective, demand has

COVID. has late with We when variant we the just and New in movement behavior was overall most in frankly, year quite last saw little a boroughs. flowed, general the the think acute, certainly where very saw York period, I ebbed

vacate was So, rental lower effectively. volume was lower, volume

Our here variant put. quite as come in new trends that mirror, were and more be we’re little in starting back to is return in-place seeing customers to We seemingly normal. some normalized York, started bit at to a not and have the are the were look rearview churn. the New housing anywhere but to Things more We typical positive. staying near

rental You’re multifamily on seeing in pretty movement side. good rates the

there movement walking on while the to some of typical returning in are street to in-person more you’ve of in the You’ve boroughs, in there country limited the more or home like particularly -- normal in patterns. Things population seen good is return in seen And is rest if moving. office, outer Manhattan a the values. you’re the around, terms are seemingly the

a in the And So, as remarks, the saw down QX country we that in Boston to again, more of then I we expect normalized think Washington, pattern course saw well. more the we summer I opening to to of of over of D.C. said in behavior. as the bit and that return last it year, gradually the of rest my

Elvis Rodriguez

follow Thanks. And if could just I up.

mentioned think here, at you the region. and the going year perhaps as well share you York maybe to New date occupancy New that time I York City this Can to in things portfolio? in a relative and are then in for last whole

Chris Marr

in pool. the again, we have occupancy, obviously, a The Yes. change same-store

XX overall this of to same-store terms last a on yesterday of So, over physical points in relative have in it -- basis last year pool point as basis-point changes, occupancy up would is the where at been year.

from at the year, little over time up we physical year. a improvement last of close at, to we are points yesterday York, end where So, XX this versus of basis New flat we the in bit occupancy year. the were were last In

Operator

with is Todd from Our KeyBanc. next question Thomas

Todd Thomas

deal the lifting guidance. struck there was around portfolio is My for price Has the expected portfolio first question the appreciate of the Storage anything West. of underwrote initial the that given restrictions? regarding guidance just since in outlook accretion you the the for breakout I changed the and

Tim Martin

the would the what’s our talked is in now our the systems. embedded the when integrated of that magnitude has announced unchanged. the into that that we fact given have only guidance in deal our about say that increased guidance, is thing we changed and first I The stores confidence we accretion

months of our of in We a place, belt. have performance teams we have couple our all and of under

is range is unchanged, So, level confidence higher.

Todd Thomas

to portfolio price-restricted? little markets understand. that help could that if a break much maybe how the the in of portfolio and Okay. discuss out us And curious is you Just were operating bit

Tim Martin

West portfolio? or broader the Storage On

Todd Thomas

Storage West.

Tim Martin

the that There impacting not been had we a the in component underwriting. of our little acquired earlier it. the meaningful some California owner was But perhaps On may in XXXX, specific was bit a restriction Storage that very under little it prior time markets. have at West. Yes, of certainly

I XX% well-run those it where we of same was this board, the the a -- we XX% transaction couple talked a the across think markets platform. rates what ago pushed in and in saw an had about what that or prior markets. saw they some months by was But we is announcement, opportunity portfolio with

For our had similar XX%. XX% stores, rates to pushed we

was embedded And the to our opportunity for what governmental as not is that bit bit a push had saw there throughout the of much, been platform, even little rate to was so, there little pushed more a specifically about perhaps than that under so on that Todd, But underwriting, and XXXX, we we our then so on in we think restrictions. what more and fact year certainly XXXX. think first

Todd Thomas

about of And can for to impacting what wanted ask ‘XX I then, and growing just and goals to activity of lot outs platform there’s That’s and visibility be that. platform. wanted quarter-to-quarter, activity some realize stabilizing helpful. chunky around Okay. I there. you the that’s are ins have management the third-party and I the see transaction if But a your in

Tim Martin

Yes.

Our goal the -- for thanks question.

good are obviously to as that market been bring their especially in about to job stabilizing to at a many stores Our of backdrop acquire some up great has for only market hired job that make as can, assets, but we’ll prices our love our those really for sense do would them we to and done of leasing We criteria. underwriting fit transact. owners helping the stores third-party lease-up the good do. been three, our that create and of our have And four value at and to so we that a continue to do to we’ve teams over cases, stores, were or stores past very to platform development two, on the some the services our providing some And supportive onboarded a platform. goals have years the

obviously. to that talking of to XX% development think and how think, or been had to two that to to are see that we When many going as the you’ll for to to XXX talked couple platform, add the about we years. about think we adding those a year we that experienced started platform, going churn, do that road. stores provide recall are down stores you to leave given we as and stores to platform we’re that what consecutive is are translate the we great the pretty XX% going this want do ‘XX, we a continue also going into to difficult what many deep opportunity into ago, to to service. churn do predict started to a we stores about, continue lead do how know a we’ve certainly the expect So, to cycle year how and that And in awfully But probably were that’s to lead newly of we to developed that that experience stores And we’re was we’ll and in we try confident ‘XX.

new a stores referral boarding that to control a to a So, had potential and we to add demonstrating our new from can customers standpoint. our stores to existing good expand on standpoint, new business to customers a job do more we And to development year continues and from great team platform.

XXX visibility year platform, off continues don’t of a between onto We I ton XXX of we can add the continue can a we to add are over the that platform -- stores control, have can and to to. think and we coming to to seem lot XXX their awful achievable. be platform. It’s the of value choice that stores platform well an That a

Todd Thomas

it. Got Right.

year? third-party throughout the $XX.X the from there Is was year-end, reported? that’s to total of million $XX.X million the what so income guidance, property assume for management change the And that fee contracts any what management does in

Tim Martin

some stores some and stores is change off. Our guidance on, is churn that some assumes there coming that coming some in there

of in flattish there what range from count growth. be change slight to a a there’s so, would And store year for type

Operator

is question Kim next with Our Bin Ki from Truist.

Ki Bin Kim

If go to want I yet. corridor. what’s to back look office of normalization about I everyone’s happening, the more your back comments just to quite the in kind not at Acela

office, around along, you’re of what and more go moves to that that seeing color be might more the pricing corridor. the further provide that in what just as back as like look trends you some So, might if for could eventually some that people

Chris Marr

interesting small businesses Yes. question, customers in in as it of big office, -- positive of because having our an a their folks The their terms it’d Bin, result for It’s be some a I’m being folks a Ki in them. some not business businesses, of reopening the the living into who help margin instance. better would visibility make at

around to that folks seem boroughs. be meatpacking and I shop. square think Google these this there living think, because nature assessment again, or about and from and in but feet is of the right? on are the people than Most Manhattan more was and that of X probably the very certainly work wandering coffee talking I our there, area, the to area, are in and outs our the ins the the million Chelsea folks of customers, leases outer sort not out of the building, all in there street true the it market is they that the you many in the in on ground

which there, a is think they’re So positive. I

opportunity bargain an I apartment looks the on a behind think seemingly get to us.

think storage? made something that’s so, we I an forward, rent a create, folks a does having smaller? that move for opportunity or to positive. take Has And potentially about room think as again,

and not that’s sector. is like a positive create always of offices seminal that’s commutes I’m change. of the the So which going the reopening for creates ultimately sort some event movement, to sudden sure our

Ki Bin Kim

assets or happening And D.C. think market? issue the with can X% up, some markets. wondering being is what’s else. as because, provide I if something other was as Got some great so was you not Obviously, or other it’s details peers supply I of kind around fantastic some or a stabilized it. it

Chris Marr

the for question. Thanks Yes.

a So issue. it’s submarket again,

the well. then think Virginia is you us Maryland, is and pretty Washington, and which Northern primarily itself, suburbs MSA then George’s D.C. County for about that being performing if So, Prince Maryland

stores. new same-store has double-digit Over of we Every seeing one the at last fourth single least still competitor. Washington, them into quarter revenue D.C., low five one growth. have they’re this quarter,

to drag impact same-store Those five that experienced embedded that is of in that no certainly XXXX. for is And MSA. little stores guidance the QX. growth in the our we revenue So, for competition

PG that of then, County, areas somewhere the the suburbs in D.C. And is We’ve of the other impacting in And in new Virginia at middle. us one end, at pocket, and County the Northern Virginia, depending upon sort supply the got So Fairfax of is Maryland your in other. County. don’t Arlington five doing proper. at the Northern are is supply But, answer have question overwhelming well, some to -- that really the stores impact. your

Operator

Our Samir next Khanal Evercore. question with with is

Samir Khanal

that the are occupancy for the it you can the quantify I in summer on of much as Chris, New when return you’ll of what’s you the peak of your -- office. just a kind of of portfolio? about normalization overall half, to mean, that moderation that year, sort thinking a have baked think second to guidance and into especially I mean, how of kind end the from to decline in seasonal Maybe you relates York. that

Chris Marr

the that for about overwhelming revenues you think of going be our from in derived is to our question. is Thanks majority Yes. underpinning rate. the guidance same-store When what’s growth

versus points normalized, about and basis what seasonal XX be pattern the the year is West the materially market. across are in within have predicated could I expect down be at point given that Obviously, occupied, again, any -- going see on think itself basis And we for could presents points, in that time expect. occupancy really to XX is, up, portfolio markets But when we to that occupancy But it’s that but market trend that XX%, decline. up we would the cycle. to Coast opportunity we different some last XX So, moving the points, markets think, are to think be always what’s typical not by range. going again, of upon occupancy XX% it’s

more then, basically So, the of direction, And Monday a we some a moving half some that through pattern end in occupancy would rate positive coming see direction, seasonal pullback rates we would positive the year, back from that of the see this occupancies of expect you moving typical in pullback. and July.

property, So, East the not different But the market a said, market. I think, overall, to in been Coast, the ground-up has we obviously, of It’s the -- budget. and by we as do property gradually rest return normalization, country. I there expect it by

Samir Khanal

guess sort just I while year. of my around sort this the expenses And marketing were guys back on marketing is do some to think still question I spend know of last it. spending And for Got second about year. are did you others ‘XX? you of cutting see benefits last will year? year through you for you How from the come start the this marketing

Chris Marr

Yes.

again, depending how So, is -- is certainly those one the it variable costs that see of that’s variable upon certainly we returns.

the think you year. be If would quarter in we for about for where it first this good in given year, of what’s were expectation our pretty embedded some growth last

we get and the current much more modest So as year. really, expectation into And it’s a our is third of second, comp in the first quarter. fourth the growth then seeing quarters normalize that to

have expect on a on we experienced as really relates increases to basis to So, in overall, basis one XXXX. with year, the sort see where for it make are of that overall we on -- a it don’t percentage we there I same decisions that to the weekly caveat opportunities. Again,

consumer that behavior. of depend will Some upon

the of society, again to our competitors out shift a last of is starting I where could think are going bid And see same-store when market, been had rent of realized were revenue We again, thought well from we us. bit think we XXXX, second of desktop you mobile, and to more side a year that, advantage off gradual for reopening play. of get look I back competitors decisions this for away those and also higher little of some spend take opportunity just rate. on which good I We indicative where to quarter return some again, year choose paid but what the think and a and quarter-by-quarter, our our at the to to saw back our growth marketing

Operator

next Balaguer David with with Green Street. Our is question

David Balaguer

any average there revert changed with within on to you to share touch with wanted normal on that seasonality how Are us that’s duration that would and levels. patterns? numbers the And duration? Just back portfolio expect since to lease lease you can pre-COVID normalized

Chris Marr

Yes. question. Great

one the customers come an trying the perhaps and so been disaster, draw with to is natural able think, and best come to one I speak, up So, to able team with between up to been this a to I’ve think way analogy, be about pandemic. the has or might

approaching. when hurricane think oriented So, sort customer a in surge storm we when demand see about is you South the big in a of Florida,

when Some go of take storing. them simply the goods their back out back bring to their those they customers passes, storm are storage and house. furniture And bringing to they of outdoor and

short-term customer. very they’re So,

have of customers and some maybe who to tend it of obviously, We to longer takes to as short stay to damage very et the customers, than get -- then, buy all and items unfortunately their experience bring settled get very them. stay the some them us they dry damage than long store very, insurance longer, expected new they possessions claims fixed, or cetera. that short-term other And tend and sort

bit think, the we analogy little an have to I customers. pandemic of a that to

residential expected to us product period either beginning were Some needs to think than time. of shorter-term the a longer and perhaps have lot pandemic. came they have with be have of Others would helpful them them, their found of changed some with have to at and we the very how us about short the a us, had for stayed for options

basis just it about than which basis us customers been about have greater a customers points for us that’s up two up year, XX% XXX with think years, about XX% our XXX one points perspective, of you from prior is with if numbers. and And from from levels. prior about have of over about numbers So, been our

been starting period longer a starting we’re see customer definitely us bit time, to the it to for more some So, is has back with -- trend of a behavior. but to normal little

We some of are in customers. those seeing pickup a XX-day-type

David Balaguer

data data with you. supply. the here wanted seems touch out how you of Got helpful. opportunity but just it. That’s for closely know out Thank like I don’t providers on development there’s delays, I and national that’s to the national follow sort supply double-counting And there, there. it

on ground, seen accurate? is the you’ve what Just that with

Chris Marr

Meaning over ‘XX -- expected deliveries ‘XX? into that or the in in bleeding quarter were fourth of

David Balaguer

around a with delays, track just deliveries national some seems Yes. perhaps It what With like supply seems it are sort double-counted. hearing we’re of being deliveries. as just data development

‘XX So revised. ‘XX delayed some aren’t that that perhaps in that were the figures were expected into ‘XX

wondering Just any you on perspective. that had color your from if

Chris Marr

spend three in yes, obviously we to the mean impact of looking And I and tend would XX on was quite delivered don’t We agree. I But in about more surrounding in conceptually, more pushing look a it half gets December because whether agree. things our the January, lot to Yes. of or There ‘XX time as we of in at open markets. would bit time of gets delay at ‘XX a top national. We why ton the a the spend back years, or February ‘XX, we those of ‘XX. it rolling delivered November is to properties think March it the same.

slippage. always no that doubt, So, -- there’s there was yes,

suspect, you pronounced as I was think in likely, ‘XX. it

Operator

with Our Smedes Citi. Rose next question is with

Smedes Rose

you was could talk taxes or others? wondering for will -- little you how property those if particular worse maybe increase, I just what about think bit a than XXXX and and in there’s seeing any you’re if

Tim Martin

It’s you which across see fact many gosh, to growth about. typical many, always is of talk markets we’ve the continue feels primarily straight No. you’ve had markets, and answer pressure we characters like NOI. cast same by provided that significant that in now And that five driven really it the the for, years,

have you compressed. And rates at You’ve of or evidence assessors values. had lot cap assessed to look held tax that either a increasing for have just

seeing anywhere. we’re we’re any certainly relief not And so, seeing --

for we’ve for for range is where our been towards now -- increases heads range. has have XXXX we our been -- several range end expectation our that been that have in to that You expectation X% an X% and of in here of the for higher the that in years, the years portfolio several sector talking past and

to So, assessments. we continue look those to challenge

is County We it’s have but typical -- the the on cast some a successful high fairly of pressure. seeing certainly you’re standout results here where there, broad-based Cook but and end, characters

Smedes Rose

Great.

just would or incremental in there, acquisitions you where is not build in I’m platform that as at wondering, be critical out the sort place mass Okay. building potentially the of case? Storage the to would look And focus then, you West around XXXX, on

Tim Martin

to and markets. great look add opportunity think infill all us gives in to a of to I locations those that continue for look

-- is I now once intel presence we those established, think, have in of markets, better. we that our deeper a I each think

is think better. underwriting our I

I think store we adding are a increases. And opportunities. then, those more natural those markets a buyer for many of the of obviously, in efficiencies

So, always in looked we’ve markets. those

in those will We markets. to look continue

deeper more a in we we’ll now perhaps had past. than presence think our opportunities I the given find few

Operator

from question Mueller Morgan. with next Our JP is Mike

Mike Mueller

online how customers contactless I’m the the that seen made wanting, more rentals wondering I that you and personalized Chris, trends time, dynamic? more guess, does you’ve where about comment tie with services. over the

Chris Marr

question. Great Yes.

exclusive. mutually not they’re So,

digital So, it and a that who customer customer still prefers is prefers personalization, think who come into when experience the we to store. the about that both,

exploring spectrum. a year meet both of So, we we are are able desires designed of to customers’ have quite this at be number that initiatives that to the that ends

it of a generally can water the old with platform, saying, how the be pre-pandemic funnel customer it’s more can and we on a about come the how of that in that offering parking make their it that of handshake, So, teammate how into them not store the a introduced a may to similar submarket think and way, for experience bottle you walking help the lot the about them select are terms out through of experience basically It’s you digital they we the the do access do store, our thinking location cube the store. how they some we more needs well. taking website the we our personalized their differentiate size for or as delivery of how some do And our terms of costs we understand some think how and the able experience as experience the the the appropriate service I they growth as well out best, digital intuitively personal to in exciting will may if make a meets revenue in and things store And future. in more the that opportunities in how have do of both, a array an think to a incremental within seamless creates they alternatives in some platform.

been great the similar we’ve make history. do personal it a one really our comes you but very it’s down able how to question, a over what So do to digital to experience

Mike Mueller

makes Got move-out And it. the what rates as a the in quarter? move-in to That rates sense. second, were can us you give the versus sense

Chris Marr

Yes. second here. Give us one

customers the we from were into higher at perspective rate is that the a out. portfolio think move who anomaly where a from I last pattern year those we moving seeing shifted are big-picture than

We but what have the -- see of the than typical year that is churn customer we third began move-out quarter part fourth where had normally. in from quarter, customer a seen more bit down last less the to the latter of we move-in

that about So you’re than X% move move-in delta to out seen. the is and the in had which X% type on the we between points basis what XX better downside,

Operator

Our next Stein Kevin with with question is Stifel.

Kevin Stein

Thanks. to had changes has a the the if that’s Good I there, just morning. area. City store there. if New impact I know wondering performance any labor any been in was York seen you’ve challenge

Chris Marr

the Yes. Thanks for question.

the in So, terms in and attracting be stores. of recruiting it teammates new the sourcing, challenge continues to a

quite service, their give population Our existing to customers serve continues continues well. to us great teammate

marketplace or a months not it few -- overall any better So, is back. than I’m was if the is it sure worse

likely process a or our ways recruiters, have the our teammates I the et different cetera, certainly move them either an they teams, this gotten one pace just make think, offer at move we have other and have to because to adjusted on alternatives. so have to candidate being the through used to and internal many new more which new has attract And normal. found

teammates of So, higher at payer a to peers. end perspective, total reward I think our were cost the we from a again, our store

do to the move have of larger to not have perhaps other we that or some some do scale. a rate on our So, need peers things seen had

Operator

are There over time. registered time. questions now closing to are no this no There pass remarks. at conference the further I team currently questions to waiting for like management would this further the [Operator Instructions] back at

Chris Marr

you, everybody. Thank appreciate Really the Great questions. call. Okay. thoughtful

in we in months. a is couple course lie a front throughout on everything that opportunities are incredibly I I we performed, happening forward safe. as a of of team couldn’t incredibly updating XXXX. And Continue for look the As to that be has all us. of XXXX the And about excited you speaking forward to more to as excited management we Take really as industry. you we for proud couldn’t and progress company, the be our said, move how look of more our team be in to care. of excited

Operator

you CubeSmart That for call. Thank fourth concludes the participation. earnings quarter your

You your lines. now disconnect may

CubeSmart (CUBE) 25 Feb 222021 Q4 Earnings call transcript