CUBE - Earnings call transcript Q1 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the CubeSmart First Quarter 2024 Earnings Call. [Operator Instructions] This call is being recorded on Friday, April 26, 2024. I would now like to turn the conference over to Mr. Josh Schutzer, Vice President of Finance. Please go ahead, sir.

Joshua Schutzer

Lara. you, Thank everyone. Good morning, CubeSmart's First Call. to XXXX Quarter Welcome Earnings Chris and Chief Chief Participants Officer. on Officer; President include call Martin, today's Executive Marr, and Financial Tim

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

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

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

Christopher Marr

would follow all low historic rates in up before line call first their for in pattern, the Josh. and gradual March. thoughts to when performance the as reaching our metrics new it our our with you you, our well seasonal and of were guidance first joining expectations. end first on thank into quarter beginning move mid-February their Rental into quarter their customers quarter shared Thank one we Good morning, was as the expect XXXX

rates, against and historic in metrics health, at related the those during consumer timing remained write-offs, with increases varied market. receivables, magnitude. Demand first all rate a consistent quarter were quarter and existing healthy quarter during key the activity line consumer backdrop and auction, customer norms, typical units our asking Our by both the in of to being seasonality

York markets, and major suburbs, Atlanta in Connecticut such Boston Storage year-over-year year-over-year as to experienced in Our its Florida experienced rental doubt all the Sun Diego rentals. such County New benefit markets as more volumes, the MSA decline continuing growth and markets, Belt of urban-oriented from Chicago positive year-over-year rentals. a our West transaction. no also and experienced San

as out with such seem rates Northern rental signs supply and Virginia be XXXX of and turning positive in of markets, at impacted and growth Phoenix year-over-year the occupancy, beginning corner to signs albeit supply rentals also bottoming below levels. show impact Nashville, is Some are stabilization. well showing from to that

While Tucson to struggle footing being find new continues while to its supply. impacted by

which smaller to top-performing Overall, performance constructive stores tend and market a our for improving positive to across performance supply Island and New continues living trends the boroughs North York be our in positive solving metrics and Staten Jersey. customer space. more in are impacted attract with their urban consistent

move year we last first narrowing to from far April, occupancy and have levels. gaps quarter As our negative trends rate through their thus

the recently last out. and self-storage. cautionary seems on our growth. Other that Obviously, been life One It are volatile. on demand resilient of views retailers factor our create certainly over countless many car industries slowdown industry as year, months the events impactful As sales. home such data makes demand. we entire most the highly used that is GDP quarter first the driver the be data single-family expected there week, few is we how for The entering the home transportation, receive intermodal has dealers, macroeconomic warehouse unexpected so for months in expressed over next plays business X will conflicting leasing that environment one every year consumer demand very have

also of data XX sale few in been that I sellers. combination last According inconsistent. optimal actively note last the the sale homes listed has XX% month week factors is for housing the also the for number time than to the of Over list third the best for of as year. your February of April realtor.com, to the higher market same home months, brings week housing April was the

and yesterday's sales On Residential XX.X%, the quarter and since the possible disappointing home climbed XXXX. largest of Then Department market. its positive mortgage report a sign other hand, for surged increase have the Commerce have were March housing X%. you fourth rates above investments

stats activity certainly historical housing modestly consensus So XXXX. lows are remains increased in experienced for the over volatile, while

Another Austin, Sun of movement Belt are new from supply are down Nashville, Orlando drivers which our industry. multifamily rents move markets. According in may slightly Atlanta, demand is vendors product for rents our existing In from the multifamily demand are that housing. good many or Dallas, Lauderdale, renters. flat for are headwinds RealPage, sector, first-time declining within the to Fort in Both to increase spur year-over-year to apartment contributing and or

for performance. Tim? Financial of solid will continuing now full into growth. fundamental drivers year our over of July for in between to On store his their our of XXXX it I illuminating the and and our short, both now their listening, quarter. turn be impactful Martin long-term insights In on to first the expectations side We XXXX will the period new and declining generate the end in of every Tim the confident year business for top you Chief supply markets Thank peak. Officer, our openings equation, our pattern continue remain since ,

Timothy Martin

everyone. day taking Thanks it for few minutes Thanks, Chris. morning, with your of Good spend out us. a to

same-store XXX on down revenues with negative about basis FFO for down on range the XX.X%. middle growth last as bit expecting to we Offsetting we've a with a return well relative that lower flat as to expenses as will bounce on Same-store our X% of continued more quarter. property quarters, quarter. efficient around marketing growth spend. the for X.X% to what for good our opportunities same-store to discussed driven depending and of share expense grew First snow and points combined our insurance quarter Flat reported at that operating per were little average bit you that a at for year. seeing past the were the when compared item we in X% revenue year last But midpoint what results $X.XX be to that's cost expenses those the portfolio this over line Same-store maximize last to market right by growth, removal last we're pressure the year, in were were year, occupancy yielded quarter, compare year. NOI

On million. the Connecticut growth in portfolio for front, external closed a of on we $XX.X X-store previously the announced acquisition

growth our finding external that for on continued to disciplined sense approach We us sheet. opportunities balance make

On to management the the third-party adding ago. quarter platform. XX in most stores a business That's quarter, stores in a third-party management front, record we XX since added our had third-party the years debut first our

in several for in quarter to years. Details the assumptions look stores capacity platform provided for this grew release nothing our us and leverage do than in were At end. other growth the night, guidance some for to opportunities result, there short with XXXX we shape, sheet again call the management and questions. included our at utilize earnings we've under don't excellent created call the medium last XXX year morning. our joining the to our open of time, the third-party February. the late guidance continue this over remains a to Balance on related Thanks last remains consistent forward to guidance in term why we to liquidity Lara, As for up

Operator

first the Street. comes Allaway from line Our question Instructions] from [Operator Spenser of Green

Spenser Allaway

I second move-in trending color was if color just on geographically. color provide you can just are rents great. But share any quarter? any just just rents would into move-in be if thus you yes, how wondering And the there's trends any far some on could

Christopher Marr

Sure, Spenser.

end improvement were QX, April in XX% XX% XX% last new of customer in they an and So rates QX. April, the at down at are from the from negative

So new negative of in little we're seeing of a combination year bit obviously, on this that occurred a rates. last and year customer gap what improvement

Spenser Allaway

you And on or provide that cap in Okay. required the the were then able to rate X quarter? share the initial assets are Great.

Timothy Martin

Xs. Yes, they're the stabilized assets low that in we know and well it's

Operator

from question comes Goldsmith Our line of the from next UBS. Michael

Michael Goldsmith

is on the My first over trended question just demand how to and that quarter.

you trends. How think I seen good during demand have rest on fourth into of out? seem And do when and you solid what visibility like the April? March provided quarter what play you side reported guidance, the had

Christopher Marr

strong more quarter. demand by said, as market urban-oriented it Yes. market. I saw Michael, as We market those in consistently went through the it's

Phoenix San bit challenge you're then positive side the suburb, continuing growth markets Sunbelt York then Atlanta and into and that all the of markets, markets. Boston, Florida more the the So some on primarily County, Connecticut little a the Chicago, and MSA April side, the quarter-over-quarter major in demand New smaller Diego on having

that the were again, chart that largest uplift are about COVID markets beta that COVID chart. that markets more those it, top So and during ones bottom or lower the to of had at the think you that closer if now through are the are the of

Michael Goldsmith

And my follow-up is guidance. the just on

came quarter with expectations. First line in

move kind you the for out? provide anything just has you've need what of the update still kind guided, the your I has level it, given of of change since you what you really year the changed insight week-to-week the the you've that you to of of didn't rest expectations? recently too and it is you is seen the about it, on of your early but given the which think like moving as how given seen how doesn't Or Just outlook nature last mean year? expect you now environment business play pieces to

Timothy Martin

latter of cause the X Yes. with nothing is view. We question and guidance of has in a that happened where X are. weeks us range would ago part to that Michael, weeks provided last the we exactly that your change expectations

summer us, ahead as we and As have we still of to. in you sit Chris mentioned here, rental season the whole April, alluded

weeks have expectations still introduced that we of we X so And range ago. that

Operator

Our the Khanal Samir comes from ISI. of from Evercore next line question

Samir Khanal

And Chris, I do know what market. of last you some I of in today? spoke guess housing done, improvement the end call, the up given on the you high -- make does difference? maybe ECRI question assumed there's again, enough in high I sort have guidance market in that my push you do the I how feel mean, rates think mean the end, that is improve, assuming for about housing that not about to if sort

Christopher Marr

mentioned driver. everyday that is demand beauty life I earlier one business perhaps my a the in I our are so housing events for market is of mean creates resilient we're the and storage. as As remarks why what

multifamily within movement And so events, certainly, those to life everyday exist. continue And

on So them is a our capturing CubeSmart which focus we and become customer. sure have customers is attacking a we're need efficient in for identified making the control, converting can what who self-storage to

one again, the those housing is So of market factors.

range our of as the very early bookends certainly facts, the expectations at spectrum them, we home Our be. year outcome as week varying mentioned, third of will of of the sit for likely expectations Again, those where at existing think here, peak April listing very, the we we I is the for busy degrees demand ends. your again, still understand as of as sales. And across I see implies the both stages season, the

If house that about think sells quickly. you

we out. into see market busy very on for July. May, May. going June. well on sits that's as expect the June, a late to would closing couple we And see It impactful how when the Tim said, whole season you're the of play for And us, be obviously, that's year You're to weeks,

Samir Khanal

my it. expense. little is remains on challenging. question, guess a bit demand I maybe And to down given XX%, that around me advertising roughly that was strategy. second mean Tim, talk Got I Okay. about I guess the that surprising that was still is

Christopher Marr

Yes.

we When of forward for continuing I'll refining Sorry, that efficiency the go last into paid that customer and -- of for our to there. as new jump we're platform and beginning of customer about evolution the that. in increasing is technology see data investments the and CDP think couple have you years Tim now we acquisition, the the fruits over of

on avoid of through in We're targeted of to set on segment target within to obvious we're more marketing. Again, and whom. be we're segments, time using try customer exclude to those wasted conversion customers using the AI, on can the and suppression machine personalization, that that able the has that achieving ROI a we're they're the sure So those we the to learning that and make end rental. response automated amount inquiry their seeing highest of identify that rate, advertising front benefits potential able and for

we Now all year does over imply will from the last all of not not but spend -- the of absolutely it XXXX, our levels being to to is reflective grow over we've other would years fruit. had not mean said, made that the things in starting our marketing CDP that bear the in that it couple of that I investment and course of the

Operator

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

Todd Thomas

follow Chris, I just rents. detail that I the up wanted early on on you to first in the appreciate here move-in provided. call

quarter the what to is April. the April looks through change move-in into quantify Can that throughout move-out sort you I narrowed just today, and that think you where spread that mentioned and of today? like the that stands where

Christopher Marr

about just talked had I new what rate. clear, be to just customer was the Todd, Yes.

on QX move-in was in April. XX% XX% a basis QX, then customer new XX% that and quarter-over-quarter down in about in So

between of and just moved out around much quarter. has be the moving delta since the terms we really that and in, not customer continues that reported moving XX%, that last In all what to customer XX%, that

into gap busy to time new to rates As are and do as we the we where that obviously customers the our up, narrow more frame we move expect get here moving through season. seasonal

Todd Thomas

Okay. any activity to Got it average to end. year-over-year. the as a though below change little you the appears all how can and vacate activity, when was bit you talk of bit the quarter far moving higher a Are into speak also little April? occupancy prior from terms in the seeing that build quarter you it. And just And during the And today? compared to years, at it then quarter Can where average about vacate move-outs? trended is occupancy throughout thus was period,

Christopher Marr

Yes.

through contracting, gap and seen, moved in rate I same we've occupancy the as side. occupancy, thing on year-over-year both in we've the just mentioned, talk about As April, gap we year-over-year the

bps market are that to flat So in move-out And the of last year to end about saw we're stay, the today, April to a are on we has side, from points. we And obviously and see rentals sit at to well, back XX.X%, then Month-to-day -- move-outs contracted last coming by up to but March, where basis line around they we XX XXX in to when continue start gap time closer in saw little period back bit. lengths of bounce that's that year. The fairly certainly really contract longer what last of out COVID, of seeing started trend we cohorts, with to stabilization. increasingly some year.

Todd Thomas

in the or you company's of existing terms give around the rethink the activity. vacate that Does the have there Does a all pause bit all strategy in stay of Okay. of at for ECRI length little or rate customers in maybe you the terms sensitivity pricing uptick there, normalization increases? at of an

Christopher Marr

remain But just bit highs, the ahead they X well continue we down year, that in all-time attention something over of they're historical to. levels. over a while Customers stay, our close XX%, a for obviously, very, So years, overall XX%. portfolio to from pay very length of

little down seasonally above to bit basis XXX a historical points averages. XXX still So but

the we're alter So customer recent for not, does the as it customer any that strategy cause moment, give our sort to behavior existing witnessing of relates us cohort. to that increases at

Operator

Spector Our the next line Bank of from of America. comes Jeff from question

Jeffrey Spector

of I as peak length like conversations first feels given it of experience this my season, lot far Chris, think question, there's your Great. the of so a uncertainty. just the still and about start leasing

economic that would still spring season, say leasing changes you your you based historically is to data is line in 'XX the Or leasing? normally the back on on what go high. with entering spring fair still the it uncertainty in see week-to-week is comments pre-COVID, you If this would

Christopher Marr

elevated, in the to high. trying interest the I obviously, such mobility. have terms surge all the is that ad And Jeff, the quite have market XXXX, say able one the dysfunctional and going to and fill the concern life of we at demand was segment rates early in I'm fact here the we had quite a late supply we've housing 'XX saw fact remained be while that elevated 'XX we I think demand had and Yes, that about to to all of of normal, chop normal, little which online. that we had are 'XX. you the spoken moment it's The Certainly, have COVID, everyday what's that's beginning that parts demand was the about then We development that right? fair was, think through challenged enough that that uncertainty of nauseam. events in in come would the because up is sat to XXXX to bit

look So one would say normal we're had if yet I not back years this, trend segment. at to obviously doing over sit missing my or a in I and quite that XX seeing

more uncertainty So bit it than across the would so are environment. have kind in whatever of is more as -- in as next little muted we couple does months the a would feel we said, normal a country that's again, define going very that I we we're where But seen informative. here be, to of what

Jeffrey Spector

that that a Is leasing to then stronger just improving And season of price that I that? and clarify the higher guidance reflects end reflects spring helpful. That's again, still have the want end the the that higher correct? I case Is sensitivity.

Timothy Martin

recollection is, It is correct. that your Jeff,

Jeffrey Spector

I in movement. the particular, third, from Okay. ask, the and I'm pandemic And then benefited Florida, on that just for could if markets curious

you are think population still definitely in guess, Just these on It's is some you still what I happening cite growth. given boom there's during still the such supply, but -- you big population markets. that pandemic. strong that they're saw can because you is -- the of slowed growth these challenged but there in you them insights healthy these as provide didn't specifically said Chris, more markets some necessarily markets

Christopher Marr

Yes.

Florida, you're what I inbound reduced a couple movement a we from seeing think is saw obviously what of of things in have the COVID years. combination you in

You markets was now it's benefited from all terms West of had bit the the 'XX, disasters introduced significant, supply of inbound Coral had of side had pretty other that and huge from natural benefit it hurricane the there. Florida, of like COVID on a in Miami, area, in on XXXX, weighing you're that. on those that And still Coast but Cape that the customers, you

You have over not of couple the quarters. constructive competitors, our super pricing in last from of Florida larger has been that some

So variety as it I that think are just of off what tremendous to there's just factors impacting was down a Florida come of X performance years. for starts

Operator

Our comes from Canada. line question Citi Wolfe from the of Eric next

Eric Wolfe

As driving up year in like of the versus second the about could first core step you the what's guidance, year. quarterly of of it in half back part expecting the $X.XX just that the talk looks I increase the FFO if to half. your you're of half $X.XX wondering was

Timothy Martin

sector trend historically It's revenue summer rental pretty us the increases that tends season. of from natural to the the front naturally for up half, line throughout step the weighting back with in half just overall our

So not a surprise and has the than front half more pretty consistent half. with past trends the back that earnings

Eric Wolfe

normally rent if step-up yes, think per in foot then a nice second I third quarter. your the realized I mean, you mean, I to of, see And Okay. point, of versus quarter sort in occupied sort like about

guess trying sort of street far what step-up do the of increase normal you seeing you just to get in in sort to to third in need see to third you'll So that from thus see that you're of based just perspective think rates ECRI I and street a terms see on rates, I'm normal quarter? that the understand curious quarter effectively what I was you

Timothy Martin

able is that on on the going to customers which it. an in the on we revenue extent get be one that of about we're certainly And on is see dependent the to what saw I season. new talking able push we last going end range closer to end side which that to of in far, guidance, would the other increase repeat more range the our the you to think guidance. we've to if guide be as a overall are what been rates ability thus other normal is call of kind all into we defines the on summer the underpinning seasonality rental get to the of expect same-store The have year, we of things our do to a to to

on So answer our really couple we the just all is depend overall the next over of same-store guide. that revenue things It's months. see here consistent with going the to

Eric Wolfe

just other All then one. right. maybe And one

look street And sort the there I data, term or thinking isn't having public versus REITs in bit a pricing evaluate but bottom I approach? at How bit the will evaluate looks have you to you're lower scraping of whether any the guess the working accurate, you'll a long the not? race maybe creating and non-REITs. it this you is that beginning a maybe at of which strategy rates? like lower how traditional is concern street strategy ECRIs the about guess, If more rates aggressive terms than of sort little of of more

Christopher Marr

I have several think and that of our been we from and over are the the past accessing at all looking years. data perspective

We're competition ring improvement that mentioned, we stores. of in in have you're that the the seeing rates. As year-over-year gap from our seeing the rates trade I sequential within

expect, customer is revenue seasonally objective. the again, more that's seeing from as that you to continue would maximization constructive the continue that, but us, strategies, our we're models highest pricing. ultimately different we to regards objective look individual can and In produce each Moving fine-tune their to to system up the at lifetime to the ways with to individual over we'll and and revenue achieve

operators. The have smaller going customers terms as for look-alike comment the you're that in big ones about and and and are number REITs therefore, the capacity the in is gap in the operational It's channels. that described deliver to larger companies execute able just on difficult I being omni across the that the automated between of and to to and other sheet of balance I the can to in relevant targeting things always more experience think reality your very do non-REIT ability marketplace. competitors things gap personal replicate the a

Operator

Our comes line Kim the from of Bin from Truist next question Ki Securities.

Ki Bin Kim

rent I difficult the the look -- the say you compare normal it's to at when but that of know from a Chris, trends normal pattern? to until how move-in year what now, is, beginning does seasonal

Christopher Marr

Again, goes Yes. call bit little macroeconomic volatility than to the expect volatility the is however you we to everything data, which as and just the comments at define think I more my the customer, normal, a what muted want would to the in the the in around beginning volatility the backdrop. of

Ki Bin Kim

some typically, in your some can sense. realized would versus And you rents increase? realized XQ think But makes the and in XQ in do given of volatility sequential pricing, increase -- weakness rents

Christopher Marr

end instructive plays that as said, going will months possible. I think over be, Again, the that a to of we of sit couple got at of year April, next I lot is the the to out. very as as Yes. we've here information we're how get

Ki Bin Kim

If I one third a could squeeze here.

You're but ago. it obviously decel doing from guys, well last and did slightly X quarters for quarter you

you how any about provide and should color Just going wondering this if think forward? can we

Christopher Marr

Ki the little bit. of sort connection sorry, the beginning a there, Bin, at very I'm zapped

I part didn't first of question. the So hear your

Ki Bin Kim

some but you has New it obviously City I the doing shown market York quarters. said for over guys, of past couple your well deceleration is

about think was New you we on if York wondering how this I forward any in can moving So provide City. should color just

Christopher Marr

months seeing are there, look and seeing I positive specifically, York continue couple market to and to our what they to boroughs of think a those but like. Jersey expect mean we'll City going leader supply. impactful growth, of the the Island the to is relates to we be in some also in next New continue trends we're highly York bit total very pressures progress be portfolio it Long have you're I of Westchester how North by But Yes. terms supply. Those same around York little of of the metrics us, New be New that the in in as

will So feel continue impact as the overall bit in do the with here leading the and the Jersey well little North boroughs bounce Island quite to supply. we a Westchester, are and suburbs Long around of MSA,

Operator

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

Keegan Carl

I range, year-to-date change curious first, on you maintained your just rate if in performance. assumptions revenue I'm there's know any occupancy street but outlook in Maybe the your same-store ECRIs your underlying given

Timothy Martin

all. No, change really no at

right what on reiterate The came from rest of again, the first the to is the expected. And highly we next fairway months. of the middle it of quarter, in to year down as dependent just expectation again, couple we then the going mentioned, the for be

seen haven't yet. it We

guidance really overall the any assumptions has range or, changed it. on in So the of nothing frankly, underlying support that

Keegan Carl

Got it. has And focus big supply investors. discussion then been our a shifting in pretty gears, with

an or in there you're And outsized what the in year to balance curious plans manner? impacted your your Just this any particular be are for of seeing out 'XX. assets there markets in that think you

Timothy Martin

Yes.

on and impact pretty constructive its Overall, terms decline continues of I mentioned on supply opening in remarks. the remains As to us.

some one am you in in I is healthy -- it Philadelphia supply, the I shouldn't in think impact markets, Philadelphia see there we again, when economy. expect continue think you suburbs it. that as it's Jersey. is and a as not be would when to North X individual about to seeing But

out I the think in when extremely deliveries, and as you of rest will stands terms new we here development Again, that cost capital changed nothing there where have the on of materials. cost just in given have raw how happen that much some impactful. terms not across look the those but of out markets may docket be of and of there pockets country, actually are things may or deliveries

Operator

Wells Eric of comes Fargo. the from Luebchow next The question from line

Eric Luebchow

for Great. question. Thanks the

the bit bid-ask just to Are you pretty I in given tough it's and seeing acquisitions, for volatility. interest So attractive in quarter, market M&A finding opportunities last recent were versus backup know wondering, narrow But market? the still last you you potential the said rates year. a find spread

Timothy Martin

Certainly, there brokers saw of coming signaling were and of was couple that as more a at we that A point, were back months probably Yes. rates there down bit a a bit head that fake. perspective fake. lot market. a of be head was out guess, that to from going I coming And turned stuff to of then their little to be wishful a thinking,

that I gauge hard moment. challenge little spread at just pretty think right the the bid-ask now is transaction the is to there's volume because so

I to need speaking, of some and said, whether a trying where held they're where folks or here that things some closed-end held couple clearly, trade, group in are see a land. All need that liquidity. structure in think transactions that they're generally take there are funds to months

And point. that some to at those every sheet what awful to we we the fund lot when on. our to capacity created hands do we've external because deal work opportunities. give work hard to find got Something's we And growth can we an underwrite put of balance to ultimately, get to continue want is

or if brokers, say had got out to that spread guess, trading suggest bid-ask things same hasn't normal to deals We have of brokers things had say that I a today the to back that if take it's to their at of that the market. expectation an across trade. some I that's difficult list moment. back would there's XX% so would XX% came the Those really they to that but So trade. desk year, actually pre-COVID would that the type about XX% those XX% they go would you would many also spoken of just little of that them see They to

not trade all. than being somebody doesn't you, you up on, end that the of successful that successful even So a stuff just at you're it you underwrite more is it's that lot bidding not and

difficult evaluate to So that from perspective.

Eric Luebchow

supply. I whole you not guess harp recall like believe But impacted been basis, correctly. about stores I color. too said your X-year of at the portfolio, helpful have trailing by That's supply to question much. last looking a XX% I that I you. if is And think quarter, on Got across

on deliveries 'XX So previous if in you versus the look or even you based then what's at and actual under X think the shovels 'XX year that just this years of starts, in what and see do construction construction on goes ground new you new today. XX% lower kind

Christopher Marr

to in XX% expect point. what 'XX, XX% 'XX this XXXX markets, in trend today get in in as that and to and would XX% down into generate top XX in revenues, Yes. Based of we XXXX on see we continue XXXX, which would XX% our 'XX, our from decline we that, certainly to XX% about at

Operator

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

Juan Sanabria

kind wanted still would about back "normal" year-to-date, were pace say to through comfortable that talked of a of you being but to to it, more of was kind you But And predictability the end off of normal last the said, of customer of stronger, of last the and which see February the whether Just April customer January that? behavior privates the seems year, you at case or experienced end ask as kind you the curious about demand about what some if March just is bit and fall year. behavior.

Christopher Marr

quarter. first as I think our the of versus an across expectations, expected nor alter trends down Tim in identifiable first portfolio terms during the catalyst right quarter There the of wasn't played demand middle out, the the said, demand fairway. to

right down out our versus again, expectations, played the things middle. So

are you to As I rentals year. the occupancy info gave I and mentioned, month-to-date, April last flat

XX of So giving any in going happen us nothing April trends. next X from that what's first the There's the to months are particular insight days the months. X plus over trends into the

next think and record, be the months but be the very to enlightening a not impactful going broken on highly how So are about to X we year.

Juan Sanabria

out new rules. just overtime government put the And pay then

efficient a I or ban as Just has been whole labor know in storage hours. of use -- the very

the we on and impact those should regards Just OpEx be curious costs thinking new if about going to rules storage there's with anything overtime forward?

Christopher Marr

specific rules the to as it our Nothing new business. to related relates

competing are other with of and value in we a district environment. perspective, and our teammates, to But pretty our talent Now has as retailers of types that we have that our competitive be skill and that the in stores continues obviously, store businesses environment. same changed terms sets for really nothing in from

Juan Sanabria

last me. one just one And for

On very first strong management, the third-party quarter.

visibility And continue growth for that foreseeable future? balance So to what's the of the of kind we year? expect the for above should the trend

Timothy Martin

Yes.

the letting for time. opportunity it stores say years in quarter we me thanks single to in quarter. the -- have have XX onboarded in the have did most XX a first But second was a that we So

was that So fantastic.

able surely the add a of at have will pipeline. year being XXX stores platform. new very healthy us This to #X least to be We

the we management is I the think other the is think is leave transaction on slow, market side, because normal third-party platform, that fewer on healthy you churn will stores transaction thing, do the portfolio have because expectation market a about when which an and the muted.

So challenging, isn't we reality it platform like environment very owners to and and normal the year need expect becomes times more a value operating ours have recognize productive to is that the you the have this like existing operating another management more provides. are on that the third-party sophisticated The when likely where front.

the around folks for becomes challenging. lot our the services a a of bit math little when so And value times easier get those

'XX. great in as staffed from this, it news data show a times powerful at have fundamentals Good to a aren't everybody really as of who of platform well. those is bad tools robust news and value and that So times were and well like apart allows doing is really they XXXX us lot that and where

Operator

Lynch comes from of Brendan the line question next from Our Barclays.

Brendan Lynch

to to And I forward? far changes the magnitude quantify rates you the being have seen about of just capital is wanted and you kind circle advertising potential conversion return maybe on down. improved Can spend improving. so talking in of order you're what those going that back opportunity the and the invested

Christopher Marr

Sure.

qualified make are made placements the early and by Performance beginning which users the we going when things well to So think Google use possible. backwards, there on as we I multiple focus the both an AI-powered taking to as and refine is when search that that help CDP under our to can and that as paid to are countless through hood like work like on available continue efficient are across marketing exposing think Max, us, those spend And those continues you as see couple our of years. those of things continue to think CubeSmart a we'll investments ads through I to the to how about that it historically next make our campaign, over of forward, potential the it the stages about we've that benefits campaigns be in opportunity Google's here traditional tools supplement we that

In than about they XXX were X%. it where so last year. or when -- is year. of by web clicks terms think We're about numbers, you rate over reducing up was are just in per better of basis The cost our visits points last around conversion the magnitude

a removal been will some of data cooking that, for that somewhat are the but on that has is the Obviously, digital next change but of year, those deferred we now those rely landscape who into points So impact rapidly environment. it also of us marketing have capture. the changing against for heavily customer

our it here the and stuff in exciting in highly digital for So think on Cube general, at reduce focused and revenue capture and help customer improve finding and we're I on world to going ways maximization. costs

Brendan Lynch

well? expense Great. increase is it with The business just That's helpful. And do one also do property items, in as most property disruption Or you the insurance. markets Or more the you have And risk? across is insurance? pretty even insurance weather have acute board? on

Timothy Martin

our approach because first we answer have entirety difficult our -- is It's portfolio. the question the to of across

be And getting those of the recent other comes going that little So quoted then... mind. it's of market to on it's by the influenced impacted for broadly and Florida bit some entirety more of challenging Obviously, the cost just portfolio. are by to more visibility because insurance, the commercial some by a it's areas into pressures activity market, of

Brendan Lynch

Business disruption alternative.

Timothy Martin

as interruption part business of have coverage. do we our Yes, overall

Operator

question of Okusanya the Tayo next Bank. comes from Deutsche from line Our

Omotayo Okusanya

in a little on There of is experiencing. being trends happening color if kind just of of around similar quickly just in us more just low of terms to in changing generally in especially frequency, magnitude tenant and what's terms of teens kind a how high frequency up, kind was earlier of that of comment you Can and or double there is doing new the provide where bit about again, anything you've ECRI still capture? terms a it, ECRI digits sense you're been for or give

Christopher Marr

Sure.

X the may a level and program magnitude or average there's in at customer increase no last so, the that frequency continues the quarters average of on for that terms been across the it Cube, about receive that the of running really portfolio. to Over or be mid-teens to change

Omotayo Okusanya

Got anything any Any delinquencies behavior, you. customer activity kind or payments in by And That's changing credit with that that kind seeing debt? nature. on or whether terms bad helpful. the increases of of then means. increases of Anything in just of other card payments you're end, in

Christopher Marr

write-offs, customer our days business, self-storage in greater auction, at all those and for customers be in trends due the it XX credit in of as our with terms to trends line existing et relates nothing No, health of change history. our in customer than going cetera, to to units past areas looking continue

Operator

Our Mueller JPMorgan. the from next line comes of question from Mike

Michael Mueller

Just a really quick one.

timing -- I was like the For a development, quarters. guess, Port the back few looks pushed Chester it the

Just curious what happened there.

Timothy Martin

always permits, timing That's development. a there, subject frames Typical that pushed subs things particular back. certain of get including It's than normal getting factors, just nothing note time of development of of are getting of any pretty other thing in the timing to variety a change.

Operator

Our next the UBS. question comes Michael from of Goldsmith from line

Michael Goldsmith

clarifications. quick Two

to for the April? street able of what street you rates, March about rates we kind change year-over-year for First, in provide the Are talked were on sequential change. and

Christopher Marr

at move over to have fingertips, continued sorry, I'm than don't Michael, up change number. don't exact period. time have my I sequential that happen Yes, I it the that to other sequentially

Michael Goldsmith

I'll follow up. And then clarification. just another

it's improved place that Is rents? the in is that said sequentially second in you rates possible quarter. or think rates I street that

Christopher Marr

second grow Street rates through the continue to improve rents continue year. should to realized the course during should as of the quarter

Operator

closing back to Mr. This I'd to comments. further no portion concludes day. like now our There the for call this turn time. over Marr the of at Chris question-and-answer are final questions

Christopher Marr

the in you, participating Thank you. everyone, Thank for call.

to events them whole the everyday think life with come to safe to help everyday folks store possessions continues cherished life remove continues deliver resilience find with and to stress those the provide as their valuable a our to customers service us place from I a I industry back. demonstrate our events. industry a its think some need they of until secure And and

of control outside can you in months busy are us. So are and our the factors rental we to long-term in on base, control. of are industry, maximizing economic perfect opportunities presented that next other on keenly we're things what confident single to Cube our time be that focus can our over confident Obviously, assured and we But cherish focused several of season. especially are that delivering there our what growth the is every the here, customer that's

in So and thank participating, you you for we end person to Take seeing look care. the of you forward speaking again quarter. the to at all second or

Operator

please that gentlemen, concludes thank for a you and this and today. your lovely ask participating conference Ladies you you. for Have call disconnect your day. Thank We lines.

CubeSmart (CUBE) 26 Apr 242024 Q1 Earnings call transcript