CUBE - Earnings call transcript Q2 2021

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Operator

Good day, and welcome to the CubeSmart Second Quarter 2021 Earnings Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please now Josh Schutzer, would like to to over conference the Vice turn I President Finance. of ahead. go Please

Joshua Schutzer

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

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

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

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

Christopher Marr

my technology for with for extremely trends in Broad-based combined of pricing to the behavior, fellow to positive quarter, to innovative during in contributing morning, strong our for growth growth award-winning occupancy were when the pricing power outstanding second an continued revenue and XX% second our customer record combined is history. demand trends everyone. year. and contributed Rates our quarter, customers the service significantly I aggressive quarter. teammates when across levels over our These levels new customers. existing raised their in up such Thanks, highest to our and of resulted physical the were same-store portfolio. into with has and rate XX% in positive customer we back has our space, third performance to the each our in wish half of all good quarter expectations more power Josh, of the in recognize and contributions the consumer to increases This CubeSmart XXXX

manner. assets disciplined added during to We the managed platform are a externally XX third-party growing the We quarter. in

consistent selling years. full, a rate market experienced certainly remains churn high managed of pipeline the owners few over and Our to with has have our interest continue in this in compressing have up our level portfolio. levels in expect ramped we experiencing cap we The last

Our acquisition busy as underwriting as team opportunities. is ever

I'll sophisticated the more we additional balance we and opportunities rental detailed Tim results over for we structure, Positive However, bit guidance the to performance feel conclude and we quarter now we and lease-up anticipate on balance Tim? does assets, for external structure. the for our as deals believe increased positioned venture on within joint within evidenced and stabilized by it strong season, sourcing focusing well as quarterly joint drive for outlook. fundamentals, have a the opportunities that active venture teammates systems talented a turn to our improved believe were operating well us pricey. our our for and on summer of positioned commentary year. great are during the growth, market sheet both non-stabilized We

Timothy Martin

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

the were on, fundamentals back are second into quarter continuing during As the and the incredibly strong touched operating half year. Chris of

occupancy partially evening increases to included strong in a XX% our in to the last effective results release Same-store effective earnings line customers, rates raise performance with strong Same-store existing power, taxes XX.X% quarter and our customer growth year. expense yielding for XXX offset and the guidance in was second in points X.X% last opportunistic the is X.X% on the expectations second beat also in full the reflected from marketing Average not was but growth which was that headline evidenced ending expectations and in costs. staying meaningful growth expense utility the year-over-year insurance strength physical year, our up new is net was revenues. personnel Expense XX% quarter by growth costs reported of continued higher at in this same-store only in rate and -- pressure efficiencies property quarter. Strong due growth, was longer comps XX.X%, NOI of basis tough a of growth, all occupancy and All for customers to lower quarter for estate quarter pricing revenue demand year-over-year. real spend, contributed occupancy, XX.X%.

of last portfolio our All same-store quarter, reported performance same management cap represents we of per of are disciplined on year. potential and as share pursuit for comments, FFO extremely lot our clearly and Adding of aggressive Pricing combining that the we been looked of of busy the of Chris' rates that to third-party which underwriting growth business. showed $X.XX a have in non-same-store our external at growth, adjusted and in growth compressed. up And very those the have drivers some opportunities. XX% we've and remain growth all over opportunities of active

$XX.X Pennsylvania. one attractive disciplined York, one developments million. And opportunities and active ventures Florida. Minnesota, select in one Maryland We were up in We in on on Connecticut, acquisition quarter, for new X stores in X our wholly-owned We in co-investment continue fit the we that to acquired that store front, New find strategy. investment the closed opened find separate we in that Illinois

closed is owned of $XXX.X and be this will co-investment or through total million at have contract transactions. entities. million investment of Looking million year under wholly that far $XXX.X volume $XX so

So we've while active been remaining disciplined. quite

the third-party added stores XXX second the the On management. quarter XX we with front, management stores under quarter third-party ended in and

position sheet remains as conservative credit BBB/BaaX growth we our focus in on continue balance ratings. with funding to manner, our Our consistent a strong very

We the continued proceeds capital quarter, raising equity to aftermarket program our equity $XX.X net raise during million. of through

midpoint. on full of conservative our our Our fundamentals capacity in leverage share FFO well to opportunities. of positioned for to strong levels we've increase guidance last on based and revolver business. revised growth be to of growth XXXX which self-storage by in Much were discussed, that night. per related have same-store external time revised for revenue we've to assumptions levels. guidance per over year, an outlook is the doubled growth pursue improved year guidance XXXX to the range $X.XX the for essentially XX.XX% XX% operating our it's XX.XX% great and Safe us or included nearly say at that certainly of Details a range our share a Based increased the release earnings the

call. again continues of for to to time, parts portfolio Sarah, brand for this of strength strength growth our morning's some questions? of platform. the on Thanks work team continue open believe position CubeSmart the and the validate to best hard call the we the At joining us why we CubeSmart this Our results and for the cycle, don't our in all up

Operator

[Operator Instructions].

Bank with comes Jeff Our of Spector from America. question first

Jeff Spector

particular, Congratulations question just just Chris, I unprecedented kind about picture. of there past could time that pricing on again, I trends to you period and the long to power of pricing the how of the is idea you first the kind guess last, or kind the demand. compare a in consumer of big may in quarter. trends talked Is us an of give consumer trends? mean, this power.

Christopher Marr

the across combination a the number of I've United -- with to States, it's No, back created go little pressure, a XXXX, through is This space inflationary need pandemic not quite Yes. been best has really. cycles. the hard movement and compare. created housing seen. environment of XXXX, market a compliment. robust Thanks I bit for absolutely certainly, we've to of very But the for

happened, don't hasn't -- it sort see don't coming as halt. it And so screeching some to ever I of I

think eventually about typical some of to to I'm I industry, yet But have We continues. level have a for future holds positive will occur. what the more continue the optimistic super to this do that momentum seasonality storage. return see belief that here

Jeff Spector

this, I I'm a question the expenses. missed marketing sorry just if then detailed And on

how I do advertising they see you up revenue were quarter. guess, about comment sorry, continuing? do optimization guess did you think about I'm I think XX% of on I here? And this your terms in trend this you that?

Christopher Marr

question. Yes. Thanks. Great

high funnel. spend. to strategy been to our do So been has it demand the through limit And demand to prices lower increase limiting through in as we to so spend essence, choose where continue efficient in opposed to then order to, has fill

system, to that pricing spend So highs growth more drive includes revenue when it, top our you time. and for to at currently with will demand which capture line dollars all-time pricing absolute a think higher spending marketing the it industry, rentals value marketing continue suggest to about would component over

opportunity up and terms to some our as looked lifetime created improved really so fact that, bit of pulled got of auctions spend at in spend a for CPAs. our We during competitors the significantly So attractive certainly, that We've QX. of are CPCs customer rates more at significantly value a an significantly. our that data suggested pretty on it in that search back us paid

our the free, look to revenue the compare if so were quarter from term, growth long I'll In But really would you growth. long perspective, off it's you're any first it shut certainly, over the to of potentially And given game. harming that in the trajectory attractive. quarter, your super discounting. month

that, do we results spend see this and quarter, we will the expect as for can our with it pleased positive growth expectation outperformance very levels end continue we're what and last to believe year, second over for So our longer-term course year, to of comfortable portfolio. of the with that the a the revenue our in you in able of would were

Operator

question next Evercore. Samir with from Our comes Khanal

Samir Khanal

think sort the revenue guess do the of broad-based rate growth sort well. I occupancy of you good I achieve Hi, you're tailwinds saw you're levels as in year? these into I even mean you next top can industry line looking sort mean will mean, can think Chris. do hit is high I if a at of clearly what those normalize, little growth still of but growth? just from kind bit having XXXX, single-digit question of my you you maybe pretty

Christopher Marr

bullish next of that normal And what you're return? what start that a do positive if overall for trends up to the year, difficult seasonality all nature to think does that's set should do, we then we growth beginning of beginning then question way going be rental and robust August business of the to seasonality? pricing is they top does XXXX, just I'm conclusion reasonable and levels typical question see and next to summer given the to line some into year. the that certainly And a are is real September a these type season answer great our the assuming at continue a environment? minimum of expect? into we the I when of Well, the But challenge to more that what pretty back happens to When the that of in of next then year, return is draw appear again, of very a

Samir Khanal

think some then view And into would front? see I you'd mean, with fundamentals but of around a that maybe guess, Got I on supply. strong, little your maybe it. start not 'XX, kind to updated what's supply, being bit indications on clearly, talk -- you and

Christopher Marr

fundamentals, attention difficulties a construct expensive certainly, again raw given is in very more and the is 'XX An And I have deliveries line supply 'XX's in I been. to to 'XX, offset materials labor. to and cost. from with what trend of 'XX perspective lower you than industry. well. that XXXX as operating difficulties extraordinarily hiring a see would and going nowadays It's we positive From to with perspective, that our to draw continued sourcing constructive again, will be expectations agree think have 'XX in new

a think a of to of think you're trend. seeing from and seeing bit primary So I had be in of And to bit terms serve that a supply. markets would shift that will also would also secondary a that continuing a interest been I as markets buffer

to But going watch. this if a 'XX again, expectation be, all, at continue So be occurrence. would would my we're to

Operator

next with from Thomas comes Markets. Our question Capital Todd KeyBanc

Todd Thomas

about of at quarter the talked month, where the the here we're is rates provide you Chris, just guess, occupancy I that what How questions. of about that also spread couple end how today end like? in occupancy A year-over-year you during of quarter. July? an looks is the can growth quarter that into And update, you share -- did trend the and can then the throughout and

Christopher Marr

Yes.

So to, trend referred relative I quarter. as the through to accelerated XXXX, the

then high April, was in XX% in high XXs it in high So May XXs June. and

today about the same-store yesterday, If as we you occupancy end grown point I XX have so have XX.X% relative where think to but of we to are we physical from yesterday, -- of [indiscernible] growth about in June. are basis

Todd Thomas

on asking I'm pretty you Okay. than customers kind And another be And of of where many would will, at aggressive moving in rates sort much to through so way. are asking more that held rents up curious, on rents? rates if you're sort there ECRIs. adjusted little mark-to-market, big a looking question catch how basis, moving the steady, out. stay are that of customers to clearly, in-place they churn if higher today, you it they're seasonally guess, take I paying to the of seems out a years If where being rents sort just a said portfolio with bit

Christopher Marr

That's with year XX-month a until an I length not the you of right I exact would I that think question, way. -- about mean take guess, I but answer lap guess interesting it might that, simple thinking X the be I is stay, the Todd.

mid-double-digits customers not have find focused depending Typically higher something while here that manage to to when that asked to about by single-digits I of new than on the ranges flip. bit, You we are than you probably that guess anywhere in-place the lap are take don't length we bit quite and our asking it it's you that of that year ourselves in that average to has going our little that the though, time certainly we looking rates other that it's correct sit we a something at low correct, we're from and to as churn, direction. about but the a get we customers, it, are flipped seen in and the the think environment longer Trying stay, on. business

Todd Thomas

solid question, then guess last the it And about Okay. York. just New portfolio. York for in curious result New I was A

of the expand and peers, happening you a and I the challenging your more relative characterized Clearly, them. return York of one still movements sort But of MSA think can I with just was one population slightly speak office double-digits. it markets think, a it the as there to New statement what's reopening for to bit growing on and and everything.

Timothy Martin

line Chris, on mute. might I think be your

I think you're...

Christopher Marr

I'm I sorry. Yes. let try again. pot I'm sorry, owe the mute me $X.

borough. you as quite us, the from for supplemental varies see York, perspective. by revenue strong The New same-store growth a MSA in the situation can performing strike,

no So there, about if to think new you supply. start the Bronx

market revenue we and So that a the I because is a across more borough for on all submarket as that for becomes the us supply, it us indicative experiencing I'm of or what -- think of the isn't XX I indicative why or the produced York of boroughs so think think supply borough is bullish are sorry, in growth can I second yes, in that New the absent drive impact City forward, supply. quarter going that, muted you XX% same-store

then If you you our growth year, knew of a we spread which at supply. a impacting the where Queens, and experiencing quarter of there then the go all at XX.X%. into we've the And impact not but supply, revenue bit Brooklyn, of of little as look sort in more to had new stores, is out going it's

in of in same-store competes In had Staten revenue then revenue Island are same-store XX.X% stores. of our I occupancy there think growth growth one portfolio. of stores spite and well, them quite And and Brooklyn open XX% existing it new X store every performing with growth. one think our I one that

the owners year. not impact would I'm into than So country. is been seeing have have anticipated, good impact experiencing than faster the Brooklyn, behavior it's frankly, the expected than in up in trends, muted rest therefore, supply we that thought any little York we is we bit of different, and more going is the and a it consumer the in and leasing would sure we're reality have the New actual would the see had

Operator

comes Our with next Smedes Rose question from Citi.

Smedes Rose

any sort on there? a you of Are Are and new been in Or market? seeing impact Just the New while bit the of any question. terms that the behind. of in actually ICAP on out a there tax is laws the to little supply follow that's might been changes York -- up deck the in have that that falling of color maybe look

Timothy Martin

are on all weren't is before all Certainly, approved having few that to Yes. projects that new any happened that an impact none. already activity of

think the up. into 'XX, get that we 'XX of all leased and I so and get of be ahead delivered were that get And projects as felt when existing will cutoff, impact into the

to X, going I once X real and complete the that X, landscape no see looking think X absorbed then years benefit next the the existing from is at you're stabilizes in competing. that going to being has basically be a supply supply and you're years is new out

that's think to of the of all activity. feel start that when I really you'll tailwind

Smedes Rose

Okay.

slightly And lease-up you expect looks environment? more focus the maybe more Okay. do you would of then on would the how gearing on acquisitions like year, you towards rates cap what joint Are you difficult how more -- raised properties you compressing. kind Or target to ventures? a in or meet mentioned for your front, given

Timothy Martin

awful There that sides actually lot it. There hands. environment to it's actually a will things kind It's there's a X exciting because of transactions. be of pretty lot -- lot trade opportunity. an are will Yes. It's there's a -- of of

to and underwrite. at awful So lot look there's an to

the that's positive So side.

of I a attractive recent for part of awful strong lot another of very think flows of how interest you cycle in pretty I is, is think sector. in that the Because deep sub that the sector. buyers. the the performance, storage the including an reasons, sector very, the of pool for a There's have is inflation. potential cash demonstrates lot Yet challenge are

it's and still you're an environment So of from somewhat it attracted where can of where interesting of that's And supply. be lot challenging gets the standpoint new impact buyers. given underwriting a tricky

had And folks it view. about physical that assumptions in extraordinarily times would the being we're and are in thinking aggressive our there occupancies push underwriting their that are given an rates. some appear incredible You've in, in environment where

risk-adjusted to of returns looking more in in All of of form opportunities. basis. complement come very that attractive opportunities portfolio We're investment lease-up development particular They said stabilized pursuing opportunity. in directly in strategy a the type complement our at have view. the that focused that come could our any could opportunities. Those that on not form question, They of could your the form we're that of selective on come our

I term, little all seeing up. than we some I have that lease-up opportunities probably think on here more be more short than because stabilized that bid in are said, level lease opportunities where think coming at to have of stabilized towards seems -- weighted moment very the the the we're where opportunities a bit aggressive

Smedes Rose

Okay.

And labor wages in just lot general? a seeing then issues or seen side, Okay. shortages around the final we've question. headlines given on Are staffing you any side of

Christopher Marr

and our stores, an corporate at in hiring office. absolute challenge, So is the folks in sales our both center

we're workforce. good good other the that to And looking aren't dissimilar probably a payments get member back sale for is and unemployment to an post us, We referrals, school industries somebody much opportunity other very the working We and a opportunity as hopeful push the or existing the what an Day are August into folks well. to somewhat hard teammate ways businesses that we're we return Labor additional family in seeing attract for met the that know families we're children And having for like somewhat refer with in-person we friend getting that children at fit similar ours. that or for as to be they've create teammate post very for attacking are someone of other source folks frame talent. to or many to an time back also in situation the cultural you're is a elimination and that

it's teammates in are to most and group So digging is of have us through. as to a great challenge today, it who trying a we industries help continue but in

Operator

from Allaway comes Our Green next question with Street. Spenser

Spenser Allaway

third-party Just looking platform. management at your

quarter, speak continued So well. this it as but stores attrition private guys that? selling pricing? just there function to appears some you sourced was of there just XX can Or in a Is market into the strong you

Timothy Martin

It's value that and hired of for what job creating Spenser, that. exactly our that's we're good a were do customers, it part third-party of to third-party being we businesses management -- the doing just is.

other done in our of is And we've change so is color our color to we doors But great that. the third-party And think which value sign that were in owners. some or front what doing to property don't do, to it a like changes. we I hired create just a we're when the sign think job for I

have And losses we or stores there. sold. In else we opportunity acquiring Oftentimes, the changed party. aggressive to be have attrition as better the off that some someone or so and an that almost that's as out cases, the platform the hands are entirely third-party had not we've are

Spenser Allaway

numbers us to increases you how here, but relative this second. just give And going years? magnitude a to can specific back guys year the just can't a provide I prior Okay. as fares know to you for ECRIs of sense

Christopher Marr

combine of pricing their the that customer and asking play when lack is all and what about going long new take what past rate been in, factors including in think customer cube it's system, increases how history So existing has been inventory, here, you the their of has together. that rate to coming their the and in all rate for the the

market up higher. high the in given just the nature, its high rate, raises occupancy and by it with we're So ECRI

few we climate. percentage if terms up. is the from double in high digits given So up the a digits, about single low there in And points talked current past, the of increases. momentum moved They've

Operator

Truist. Bin Our next comes Kim with Ki question from

Ki Bin Kim

acquisitions you to type demand moment even of buying back that's of or this inflated because if do -- you been obviously, a question, Do you're something underwriting go cycle in the seeing. you the about of underwriting how we're with rent Going XX, in it back do how you the are growth and how normalization Do the underwrite on a Like like on even do go that? market I kind opposite? it down? you but Or about underwriting? you of to -- what the know depends asset, is all try

Timothy Martin

for the thanks Kevin, question.

is on is have -- is many, our tax from over our perform are estate as where underwriting And the it we're and the talked to in which bill reset would to many where the customers And underwrite So occupancy the are that approach in going as trying how years, unchanged to it the X in past what biggest been based future is on under about management our expectations we've new stabilize does when, rates platform. does where real to. the ultimately? past, the underwriting to variables property

impact variability those and approach party's of can one which lot underwriting of same. another underwriting. awful there's a some challenge the party's meaningful in the volatility is So an areas, The on have is versus

So specific question at to answer opportunity. there's them no rates percent? It by looking growing on we to and are say, the depends the x

bit against any do supply that compete where pretty would a for today. from path we may have can opportunities are to bullish clear clear supply on we new new not are where little they more a they really that competing work see the be subject. rates If all and Some we that path grow a that in look potential there,

demand that you its the -- positioned competition. concern opposite have could come other going it's from the there's within opportunity the where the particular is versus where On about market micro where some to

get on incredibly look that strategies a low subject can have at to been aggressive rate. try may to somebody very pricing properties at You occupancy

You can opposite. stores, have that to you're the have looking at

a you assumptions. So variability big those in that is an awful fact of it different have lot challenge you strategies the given have

So lot candidly, you price of and a start as brokers the physical and to And I in that We've same, that as week you people I used is opportunities be using have and that was of overall, that and it. a then probably spit. were take this switch tough on in take occupancy typical the challenge supply rates broker But it to have almost impact a did the to pricing a the find NOI. growth spit you're executing been, change, in it's especially mean, XX-month consideration. NOI, use things meeting ever all would pretty growth ourselves just environment because that's approach that trying they X-month into given -- so to trailing a this all which then a the that in world started I X-month in in suggested trailing trailing changing going NOI. to rapidly. when last because is, I of we type are is

a helpful that's hopefully, So answer.

Ki Bin Kim

are doing but plus years And Obviously, started. all markets, than markets right. XX%. same-store be well, market to better look that you All since when some are revenue, one Is there might are your any at revenue been about X.X the push some XX% denominator performance plus across I same-store mean, COVID common it's others?

Christopher Marr

it's be other unique just stickiness In maybe instances, and to lack than Vegas to would a but movement in instances. supply, bit instances, It's In Nashville. Antonio, that. No. San supply, some we it's just nothing the more of beyond have some seen or It's the going market. past,

Ki Bin Kim

no or customer beyond So noticeable of this? that's profile driving just supply the any of kind demographic

Christopher Marr

are we talk pre-pandemic. than have store bit I as it's again, again, the from mean -- all were a customers they to needs getting we the stickier And belonging. been their about, obvious customers It's broad-based. No. we're

Operator

question with next Financial. Jonathan from Hughes comes Raymond Our James

Jonathan Hughes

your are if across but don't this, I know move-in can missed rents the in-place today portfolio? I you rates versus maybe where share

Timothy Martin

were of rates in rates consistent rate then place Yes. same typically versus move-in churn that where talked, trending negative, pretty apply where are We the Certainly, customers they new which there. answer across would are had board, where Jonathan, know. you where the as about to move-out versus would rates, be positive answer

Jonathan Hughes

Sorry, was what could Maybe know single-digits? up, you it it mean it's give low like the I Is like but I asking. actual is like double-digit? percentage that's I

Sorry.

Christopher Marr

Yes.

positive. that about. don't But about control that trend, right, you So positive. a our it summer I have what lot the positive in up this negative business of metric and about because asked in negative. and of a here that vacates. would up we're for It's year. typically It we you would if flip is the typically who the Today, all think know you slightly if actual a to points run be again, think we can't We the mean, X,XXX seen again, I from the mid-teens, -- weeks then last go majority basis like way back couple for will year. percentage, We're

Jonathan Hughes

bad Okay. was And going That's I basically discussion personnel might in that looking that Timothy's for. more not on finding is others helpful year-over-year. staff personnel succeeding a properties growth are the trend flat being was appropriately means It having line expense to quarter. that flat the then item to labor, Maybe while how dropped growth have expense back trouble. individuals I thought in you're thing. through year-end? But should

Christopher Marr

pointed think biggest a out the getting last reasonable. is the up that comp we of the year The challenge as to would I Yes. flat you from to June end about little filling is the from vacancies. bit and think as just XX year

Jonathan Hughes

the year, embedded the turns. Why using low more one allocation. closer quarter? did to just EBITDA X.X today to later is I capital this then And choose it's on equity in for guidance, Xs. that's from in think ATM raise via Okay. the you probably Leverage under me, And

levels. well think I that's below target

why prepping raise better future? that So balance quarter? sheet to are question you acquisition be trying I could for chose understanding debt Have financed the my this leverage, of the opportunities just in you a you to get equity target lowered guess is,

Timothy Martin

an awful lot ourselves to we of to optionality look forward. It's position have as certainly

just XXXX expected robust that for be really opportunities, peak We XXXX. a acquisition from pretty to starting fact environment the cycle of a development the deliveries simple for was

real And as of developers of are naturally those so stores that forever start many owners and to those estate. stabilize, holders not

a market. to now because opportunities that ourselves probably lot to would supply acquisition that And then sudden would stabilized. so a you natural of environment been chunk find of in, add have becoming it expectation elevated XXXX that to come have we are of 'XX a When new going the operating opportunities that, all of development been

And anticipating as best can so when opportunistic to as are be be that lot to were just of we we things attractive a making that find sure we us. positioned was that

change any period done to we flexibility the time, growth conservative be find to opportunities. over try our external operate very the have at to credit we've from long really and is not the that nimble So we so a of when which ability metrics, what of end

Jonathan Hughes

just X.X? is? Okay. what mind Is And it to target like you can us the X leverage

Timothy Martin

consistent with It's BaaX all which that metrics Yes. strong BBB be of rating, that in a will to range. is the

Operator

Michael ahead. Our Mueller next Chase. question from with JPMorgan comes Please go

Michael Mueller

or sum? moderate are the market basically where imply you with? of Just ended guess, is, you You're half wondering, having terms ending rates a growth assuming moving occupancy are more what I same-store kind as in year? of Do QX how you the you of revenue to year implied static, the the guidance, for the at second level think you in end or back have part And market to growth, it there well rent what's want do at looking then rate when of about comes you do it?

Timothy Martin

because revenue my be individual Thanks question. answer, we growth. you'll of don't for to disappointed with components Unfortunately, those guide the

consideration occupancies of of Our earlier. of touched could that growth of potential assumptions could revenue a potential lot you a marry upon go, range Chris a range things, with where where all how take marketing as up into range different go, rates a spend potential

expect there to power. in be pricing strength we overall, So continued

We from seasonality return. standpoint expect occupancy some physical to a

would year would implicit of higher of year, we than they guess as later XX% in and getting were closer last get because best be still of you increases. we do, But comp the our when back and auctions are the passing a our stopped take we tracking having rate a had of vacating the all lot doing the of back occupancy for about levels year in last from closer the to be the to that on actually assumptions. easiest last half an off year, of physical grows balance XX% step growth is like that and think a that last year. of things had was that Although, in as revenue result customers year guidance fact stopped the those combination you year would of we the that we -- and as second -- know typically quarter it's And expectation a

back more comp a And on gets basis, outperformed us of for fact so the back reasons of the relative year. last that year in the difficult in half half the the for and we, those

despite the components back strength XX% that in that, different gets just type XX% them dive across comp revenue those specifically. all each the which difficult, more of into still to fact and growth don't we're a although of to we there's growth, of the speaks to the year, guiding half of So

Michael Mueller

back idea tossed general, Sure. comp I to the moving guide of and lines your kind of rates individual moderates I it are But okay, that and growth year? rates that think or the specifically flat have you're is about, the moving market here, accelerating the to of half degree? just that been rates, if sense not you we to still mean think the appreciate in do a in metrics. Or aside going kind

Christopher Marr

from the as I Yes, rate that absolute form because or of -- we either we in winter some and rate slowdown embedded into expectations, will asking some our get growth the asking we degree think half perspective in expect consumer range back an do year. in fall typical asking of see rate, modest a the of the more seasonality would of is

Operator

with ahead. Kevin Stifel. Please next Stein question Our go comes from

Kevin Stein

question, low demand? surge vacates wondering in pricing My from is I'm about a just versus of power much how the coming

Christopher Marr

interest of our We're levels up down. really seeing our are as absolute Yes, it's, customer rentals and vacates both. are

-- customer on getting We've it increases a seeing again, rate got to sides. some and the we're in We've cases, a ready the gets on So customer. got vacated, list existing waiting question in. customers, win to -- both of they come this we're to another because existing

it's that it's equation. strong of sides helpful and on both So

Operator

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

Christopher Marr

industry all Okay. to And are well. solid back of of with very and very and is forward recognition appreciative doing shared. of the the you, appreciate The quite comments the a all year It's look half Thank XXXX. we quarter. We positive do the a pleased everyone. strong you

positive. I'll continued third quarter wishes results. care. very best And talking with after for health forward you all and to to leave safety. look our So all you our Take of

Operator

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

disconnect. now may You

CubeSmart 30 Jul 212021 Q2 Earnings call transcript