PSA - Earnings call transcript Q3 2017

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Operator

Ladies and gentlemen thank you for standing by and welcome to the Public Storage Third Quarter 2017 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. [Operator Instructions]. Thank you. to conference like to now would turn over the Mr. I Teng. Clem

begin You conference. may your

Clem Teng

and for Thank our you thank you all earnings third joining call. quarter for us

Havner Here John are me Ron with Reyes. today and

earnings all conference only no I earnings update or of want press the speak risks a historical those call statements as with of Before filed we a forward-looking revise any statements this in statements to as today, GAAP to than this begin, other included obligation are to number to are other the forward-looking on remind XXXX the differ whether in release statements. that assume and that call events future materially our facts to of statements those of October is reports actual we information, uncertainties statements that call A our these SEC. included release. and All could providing projected results forward-looking result or XX, in measures reconciliation affect otherwise. and and These adversely results risks our future are factors non-GAAP cause press could in we on and today's financial from for business new described in subject

press can call replay of on and You this our release; an find conference publicstorage.com. our reports SEC audio webcast website at

Ron. Now turn over call I'll to the

Ron Havner

solid let's had quarter, Operator challenges Hurricanes, and a We overall with solid Clem. another few, you, up quarter. for Thank but open questions. the

Operator

from with Fitzgerald. Cantor question Instructions] [Operator Mehta And first the line Gaurav comes of your

Gaurav Mehta

pushing and in are versus would rent the occupancy? occupancy point comment this was on rents you about your growth Thanks. you I cycle, thinking how on wondering at if views

John Reyes

this is Hi, John.

down soft the volume let the for the to X%. remains rates that very growth demand about really room moment, because quarter country start was push But throughout and the are during us. with rent take is our little there was still rate down, very moving about X.X% rental me for So at

have of a don't into occupancy as that negative quarter, the continue the through really spread rates year. end on to because least the that next the also months quarter at to through grow over through I we of of We And street three so fourth see my pushing forward the we're quarter, probably. see a end to traction to best the lot that's move the guess. And four going

Ron Havner

markets, just that I add again down revenue the of this to of growth year-over-year. rate across XX our quarter that, all was revenue top growth,

revenue All So I we're row. not of growth. seen done, or quarter XX fourth think rates that's were the any accelerating third a markets with in

Gaurav Mehta

Okay. was And on does A really [indiscernible] television. John like been expense less expense that as that, down add-in on spend We the did side discounts, promotional for Reyes and less the a your on but mean - it's looks side, than promotion the quarter, expense discounting? follow-up it's

recall, QX, not our in accelerated you effective we very TV think that the did commented so spend and, was I that and QX. we If think we did TV didn't any we TV spend

our increased question Rose and in line the from spend, the decrease comes internet Operator numbers spend So that's Smedes increase television. internet Citi. net-net next a your we an really in big with And of swing that in so and

Smedes Rose

Hi, thanks.

advertising bit number you rate a across significant on follow-up you of think on Just experimenting the I a were about back your your and markets. guys with kind that. some pulling having call, quarter little On talked second of a cuts

forward would [indiscernible] pleased a guess So competitive in more environment continue that - you the going are third the that do and would you with results is in the you you saw I quarter given now? to something

John Reyes

disappointed corresponding that last there not earlier, in one market, lot versus year terms that's touched not true price not change to as of on were a but in of change a volume did John Overall reduction the aggressive the pretty in was platform. Well, QX reduction. offset we price pricing in rate moving in power across little get reduction we in particular a and ran we

Smedes Rose

Okay. [indiscernible] would you on to the Hurricane of terms in ability increased Hurricane sensitive there, I or Florida bit prices just in what of little terms in in and the properties came the could on a you if And then some customers saw increasing more around in color your the price Houston strategy touch in up the parts guess markets, you because your maybe be have just of there. that occupancy impacted of

John Reyes

respect biggest very we're with we did where the not to we saw careful about that. prices, no impact, Sure Houston, increase

volume we the no moving did a XXX% performing. in Houston given is which across increase over welcome, not. So, We way has Houston, see been did

we revenue West one of uptick volume. in of markets our - worst of and the X.X% Florida a but the down was quarter, in X% rate So down had of some markets terms X.X%. Florida, up, growth growth revenue some of down moving Palm the for growth nice all in Miami markets flat, down terms Tampa in

much in out markets as Florida benefit Houston. not the in So, go as we

Operator

question from Street Burke, Ryan next with comes Advisor. Green your And

Ryan Burke

Thanks Ron.

in that XX Just that from that Houston a long out do Hurricane becomes continue how XX out, these occupancy I customers impact. stay? is months in months guess drag, of with some the given temporary the Hurricane there, point related typically benefit time at particularly fill

John Reyes

see months it so Ryan, then to in becomes for XX This XX an up normalizes and and you're activity uptick your against comps. to generally we point, then activity headwind. tough a about

that XXXX than will they give give so a Hurricane, going will is a it a call lift. slight assuming what Houston lift. months, Houston Hurricane, XX was but these to will certainly be it, not there assuming there a the seen, we into in that have historically norm, obviously So for normal customers stay were camps this XX easier Harvey The I'll normal XXXX certainly will the in but for there up in us be if

Ryan Burke

on, when benefit. you XXXX didn't in but bit about going were I'm And Florida thanks. you time talking earnings two or on Yeah, one back back in Hurricanes, foresee a here calls much

that might something that like those to properties starting of fill backed during was it higher ended time year, a being benefit. pretty this as I than, besides was doing up already real it a there was the X%, you what was high that's XXXX thought? now sort and much as Your that [indiscernible] is when fact was Hurricanes that toward think end occupancy that growth NOI of so than for not properties was of that high view in occupancy occupancy of time up same-store your the point end the and after like different and remained Florida the to about have at But something as XX%,

John Reyes

had through Florida. we three Well if recall you in Hurricanes XXXX,

So have had one. far, only we would, not really come

Ryan Burke

Yes.

Okay.

John Reyes

Last time till I allotted for that our impacted, it Orlando really and recall area. Miami Northern markets, of kind

the biggest properties this time, but difference that in was think versus in more XXXX. three have fact we Florida there So, versus severity one I the the is

Operator

next the UBS. line your comes with Yulico of from Nick And question

Nick Yulico

new there the Thanks. year? increasing your this And the visible Ron landscape, get most pipeline the thoughts operate supplying sort which of or been pressure to the you hoping latest impact? markets markets, meaning, is in on is supply sub-markets in seen that is the

Ron Havner

supply, would stats supply. and us. about what is say Huston, focus we've pre-Hurricane, has is not talked Dallas properties on Again good that, really supply, we there got I on near

down markets versus meaningful is X.X%, that X.X%, down that's X.X%, and Atlanta at QX down is X.X%, is look is X.X%. sure If you Miami down X.X%, had down XXXX, occupancy Chicago down the Dallas X.X%, down degradation QX is XXXX Portland is Denver

in supply All been markets to quarter-after-quarter we a increase take markets. we there big still XX Denver, uptick we in you into of been XX properties, that in developed have those told more a market. have in is properties which saying see we've XX those and under in market uptick consideration that meaningful coming or Portland, supply, is Did big seen supply, be

So, in given that people tone kind abandoned in of or will for is X%, in of the and renovates, in power, properties doing and all that increases revenue, developments X% quick on changed create them. pricing and to headwind put I'm simply kind rate respect and to fill-up the some Certainly, occupancy getting reduction with hoping renovates, stuff. slowdown developing hold

we'll think uptick don't have year. year, if pretty even is know but we a to properties be as going to meaningful be I and about have years it's couple extra reduction, supply this each next up. going I meaningful a fill

Nick Yulico

Q impact was is playing guess just perhaps and been to is an out It's that K. for last then, issue impact, How which where, the move-in, also when get the helpful. usually that hoping out delta Thanks. rate the changing. I at this move-out, that's you move And a some delta some And in of impact year provide negative feel versus get that to year, and timing eases? I in move how in point,

John Reyes

a look average rates now at were bit This is in if QX. a moving people versus of to with John. ease It little $XXX and you moving out they at about in this monthly Where were QX, quarter, for about QX $XXX. starting

negative $XX $X. it Last move-in, was a move-out, there. year, about it about $XXX the quarter, same delta it's So, was $XXX for a

$X. So, it differential. $X call for about quarter, the about about were In down we're second down we

least When positive but negative. say. So, difficult at it's it's turn narrowing, it's to neutralize, that or a still will

Operator

Goldman, of And from the Andrew Sachs. your line next question comes with Rosivach

Andrew Rosivach

my taking Hey guys. call. for Thanks

may others you the You a same-store need trend have stores be if have under But been at in report of years. for potentially revenues similar through really competitors so to look excited are the now least same-store. XQ your first to couple

ever I'm spirit, there from So, between you ever competitors? through thought the best if large and you don't know been it, why or into looked the you gap other wondering if about has just I practices competitive

Ron Havner

is two, way versus way one reasons, mix. in big same-store they market report the two same-store report the and is there Well difference we

Andrew Rosivach

versus Do you dragging market? particular the are think that down broader you their you, markets

Ron Havner

Florida, which can cube know you to I market you queue, concentrated North East if I markets in headwinds, particular Charlotte, mix EXR New can for this are all have have Well us. they just in headwinds the in those and I on greater Houston, much in see pretty markets the York. the greater touched significant exact Denver us you Dallas, and markets. those relative don't know see is

the basis anticipate our York and of York, our was revenue is in supply was only new lot growth in of New year-over-year. points a there rate down growth XX year-over-year occupancy While only basis XX revenue down points New

York in QX So, our top change revenue terms best to of the of markets. all growth, in way New of was

Operator

question next And Metz line with your of from comes Market. Jeremy Capital the BMO

Jeremy Metz

Hey guys.

want some quickly Hurricane of the and impact just there. to go the think picture to about Just supply back Houston,

further think some of down out the likely giving squash or there it to stuff, seeing Ron, it just experience actually the that's your here? that do Just what's more road you through to on supply down possibly going lay is

Ron Havner

Jeremy, know QX think four what occupied. and in it properties know of You properties, in Houston delivered are in an delivered certainly XX% I going and in demand guys do and uptick to is mid-July it's already terms I don't because we them been of one the we

new in to those water for damage ground, our they better and where been they depending their build development, get and all way build. decision July. in half So, so timing their that, impact terms couldn't or flooded, that get are they have of have not But on, they to may deliveries property

Jeremy Metz

Okay. sheet, in anything pipeline offering about redeployment thinking your shake can with in kind you bond of think from on we for as the here. be should balance we the there routine opportunistic there to pipeline, cash, cash cash Thanks, just of free? the one so fund and Is of buildup current just does the than John something how more about we saw, you terms so

John Reyes

everything yet. here that. acquisition for don't decision made development think set disclosed pipeline have else of There some what in that redeem specifically of to call them anything our commitments I are. than terms press have is that preferred or but are in in our whether of Well callable, Other we haven't release, the we pipeline we mark them

the for that cash opportunistic sitting of look we currently on. probably uses we're So some

Operator

next your the David FBR. from of line And Corak comes question with

David Corak

on harp I quick. that real but do to you overall want you is to got on you excluding Not quantify Hurricane, Hurricane a your I too what benefit even just much there. much, to to been numbers the exactly how touch out might if be budget? the morning have would maybe can say during XQ, but sense good Hey, just difficult it actual versus from a have same-store realized Hurricane

Ron Havner

Well and late in net rate fact I of was Houston wrote held a fair amount a both customers we think it Florida. in off charges rent, increases don't to in benefit, back we fees, rental

the excluding about revenue was together you done basically $X.X properties we all put September, million. if So our that seven shutdown, or that eight QX properties in

David Corak

helpful. Okay. That's

John Reyes

get don't really the see assuming until the to really benefit We moving, we QX, think those of stay. customers I

David Corak

Alright, sense. make

turning then trend or X.X% quarter. good this we for next kind property and should normal levels will in is expenses, how expect rate kind and think Okay, taxes expense of do then growth had versus run you we to of pretty a level overall the year year,

John Reyes

property You it's expecting we're and or so. still experiencing X% still walked I we is tax, know, XXXX over to I been have increase, three before what just this think we past and which talking our X.X% early are still years expecting the to room for kind of but into

be probably think we going XXXX. will consistent So, that fairly into

David Corak

thanks. Okay,

Operator

the from line Todd And Capital question Thomas of your KeyBank next with Market. comes

Todd Thomas

rate just you increasing of attribute can that decrease the pricing lack point down Hi, have there and you discounting Ron software to what demand. the anything promotions, thanks. is you taking a comments and and to on your power, been about curious movements

Ronald Havner

I I kind look ways, Well, the in be everyone factors, two would of and what moving power. thought here not rate headwinds as in most Markets new has change quarters and we and then level are material where there of as all in accelerated rate some slowed, XXXX, total slowed, it activity while things Charlotte, are not saying San we development. the the we peaking, fact lower have the both be headwind level to XXXX developments LA, of creating their and pricing much seen hasn't employee has and add to is know the move headwinds and on modest and power are of we low in both X, I just once create things people of we other have pricing are the kind an me jobs, that I Francisco, pricing is for power the we couple more do employment headwind employment macro-economic for you once big will is in start developments markets ago employment, I probably Denver, where growth of named. of the on materially the is such supply. Seattle, touched that of needle you and at but Huston a Dallas in new employment of would markets rate more ones really have activity, get and very really know that development amount have don't they might indicator for

Todd Thomas

you could little Okay about and guess John know bit then, continue in a if with acquisitions balance comments you here on to chip terms the cash on comment your sheet of that just away the you opportunistic but curious further? I being

John Reyes

million months development to acquisition, have would a of is more be XX taking and current comment few $XX we There I had next to end no quarter. the mean probably or $XX XXX our much about line quarter at spend development with on, in million over on and the pipeline we'll

almost just you it's if that right cash $X.X a take So, billion. there,

Todd Thomas

your there you exposure something opportunity? what's city expand - New in that you market would the to, your your exposure to, had you interest to is and York to increase Manhattan to like Is that is like today a that that like if increase level

John Reyes

per demographics, any price to really the New right are the New the pound it York, ratio, it what's we opportunity if other into depends to market the market, grow We open property, on every the was where competition the like opportunity. where of happy York

Todd Thomas

you. Thank Okay.

Operator

America. next your with of Juan question comes line of the Sanabria And from Bank

Juan Sanabria

were indicator you by end of thanks was the next that Hurricanes, data out that pointed to performances, points am being of if the kind from affected positively quarters previously just sure negatively the if same-store period were of numbers taken that in not properties the have or time, Hi, for anyway an curious, I the pool. the script those

John Reyes

XX down QX, of up the if rents look occupancy at place in Yeah, X.X%. end points, you was were basis

would growth expected revenue same-store of X.X%. So, have X.X%, you

the I rents to of closer renovate delays at attributable X.X% the to properties. Hurricane of impacted right-off to of X.X% and and think most difference is we in increases X.X%, came that for fee

Juan Sanabria

Okay.

John Reyes

occupancy QX, basis points. and XXX place is into down up going XXX basis points, So, are rents

at in looking X.X% heading you're a So, QX. place into increase

Juan Sanabria

it being delays or That Hurricane is the rent not, by impacted necessarily increases X.X and sorry?

John Reyes

QX the the quarter million. I in It $X.X having increases, a delay impact from is, rental of rate think about

Juan Sanabria

urban benefit not? Okay. And to from on whether of it kind some are relates then more offsetting you of just or particularly the pick-up the a question e-commerce business in any demand seeing a side, areas in demand,

John Reyes

We haven't looked fashion. in it, that really at

say. really couldn't we So,

Juan Sanabria

you. Thank

Operator

from [ph] comes Cart instructions] And ISI. EverCore your next question line Van the [Operator of with

Unidentified Analyst

I on, revenue talk about us gave on but Hi, market? the top NOI can and growth you earlier afternoon. sets your know, occupancy good delta within you

John Reyes

is again. This John

the start with revenue growth me let first. So,

was our at, So, up Those was San down market, up it's with Francisco top Washington was was X.X%, down X.X%. a X%, Miami was Los was quarter markets X%, a largest that far only Angeles X.X%, Huston are about X.X%, up which and a ten but X.X%, by in was respect is was for Seattle the X.X%, revenue growth. to Dallas New down up Atlanta X.X% DC Chicago York positive X.X%, was

X.X%, growth, Francisco down San was and X.X%, X.X%, up X.X%, Seattle was Chicago Huston Miami up the Washington down X.X%, down X.X%, X.X%, X.X%, Dallas On X.X% York was New Angeles NOI X.X%. Atlanta down Los up down DC

Unidentified Analyst

power? what talk of there, to supply, think LA you they're go trends might going into you Okay. to new helpful. and decelerating facing the in be can That's on say what some seems terms just about that I was [indiscernible] hoping of there like,

John Reyes

lot is comp the a it's that Los year-over-year issue, not market a for the us new a supply. really more deceleration, of we're Angeles seeing comp of think, I really is

are our we've represents flat slightly our rates markets, it's of probably good Angeles that Los good XX% size volume, performing moving for its So - a about moving us. up, to got I of market think, given good pretty pretty best and one revenue, our occupancy,

Unidentified Analyst

just street the markets and you within rent taxes And really coast about Okay. talk quickly, trends can west the then one.

John Reyes

Well, west down of just slightly the year-over-year, year-over-year. know I are intuitively don't numbers up rates the I street Texas coast can hand,

Unidentified Analyst

if know the because Do you rate in growth it has of Texas all, the Hurricane? improved negative

John Reyes

rents in test Well, kind dealing, a were but so wacky of through ranch there of you during rents they I in the running running up were the we really that we're, know market and kind had, hit, when account the test you be monkey we Hurricane Japan as up mentioned, a the jack but the they people are - markets that to into of not then Ron year-over-year, uplift happen the when for were things even none little down We less, the if Houston, Houston. and it. the think our can't really lot

Ron Havner

The time, such kept disaster as check. we natural rents bad so the in

Unidentified Analyst

Thank very That's Okay. helpful. you.

Operator

question from of SunTrust. next Bin your comes And Ki with line Kim

Ki Bin Kim

good morning Thanks, guys.

to back it's think for is in current deals is unrealistic. portfolio spread fundamental, given bit seen what what larger appetite the you the the Going time to some a like your do we have course slowdown think you and to close buy of acquisitions is of topic, right

John Reyes

in Or like what acquisition Is what is your question environment? really doing? we are the invested

Ki Bin Kim

Both.

John Reyes

buyers think has continuous activity, velocity from come pricing. to reasons, acquisition as wind widen down environment hope continued Couple forward for the the demand the to and sellers I growth bid last desperate low it I think year. transactions, Well, and by XXXX strictly of projections

evaluate on what things we XXX what assets, price competition invested property New do So I are where be in same rents do, we of depends we on to it all will terms simply one one the that's the willing answer or in York, properties, property properties. per the on gave the XXX foot, one. that on Two, quality ratios, those are of we

Ki Bin Kim

Okay. guys tested quarter. obviously markets, And debt unsecured time, you this this

how your debt including do growth expansion of you given curious just capital can do capital, external much more and any response today at think favorable the raise Given or it you moment, to preferred? appetite

Ron Havner

we what We used preferred raise money we the other or process of it opportunity and today, whether happening really what's amount much in debt capacity either or not, use depends how need, on have capital to and tremendous capital markets. debt

proceeds. rates that you to to pretty market preferred you up to have go to we market. versus tapping September XXX you to market probably need go need the So, XXX of side when the been $XXX in $XXX market will market, to raise are the debt the the When user preferred million, million until so debt meaningful

have anything You ad John. to

Ki Bin Kim

think where with that guess the how raise you for ratio comfortable leverage can question, do company? the I you or without feel much you

Ron Havner

lot. A

Ki Bin Kim

thanks Alright, guys.

Operator

question comes from next the the Malhotra Vikram then line Morgan And with of Stanley.

Vikram Malhotra

rate then comments revenue the, of for assuming property just comments a of on just the questions, Do trending for Thanks math X%? taking that the stabilizing these or estimated of is X% you you expense taxes, to, X% down refer normalized sort adding using X.X% range. therefore to of somewhere some the John, follow taking up same-store one sort sort be I your am envision potentially in more may sort NOI same-store your

John Reyes

were the power is need in in and express comps really that and here the will easier the Houston kind of your - tie had the down exceptional in that as X% I to of X% is earlier comps to late, X% as X.X% people here But don't haven't certainly of keep you of certainly much that expenses X.X% touched but much much the to thing at or one certainly in easier than comps is math X.X%, XXXX. at coming have mind in to to we will occupancies on growth. all XXXX. need get the XXXX, and pricing roll for that Well rent if Houston One X% you are indicative, they doing and things would math XXXX's be NOI have you we've to revenues XXXX have some

Vikram Malhotra

Houston you strategies share test just are specific just you on are like prior question, any the planning prior to with of up then you and us? maybe Okay, any can XQ run did considering a going QX color with that into to or and sort steps quarter follow you tactically any in

Ron Havner

to so, the wise more in right continue I we will now we'll look just nothing continue spend the on think There's internet. works probably our marketing

I deferred think nothing that, moment. than other will those into to probably forgo this in of us be funds did there a the the that new quarter last the nothing, really deliver that without that is year, we're at television we fourth we year-end internet going testing

Vikram Malhotra

Okay. Great thanks.

Operator

And your Mueller question of J.P. Morgan. the next from comes Michael line with

Michael Mueller

Hi.

your had in when First at going about this through comments for XXX have point. process your about you pipeline you look years development some at probably to million couple XXX plus for time

As at so, year you you to think you the look any going next or same you expect forward be guess do over or are do I pipeline level? meaningful that that to shrinkage

Ron Havner

Yes at XX up and XX from XXXX, was next right, ended see XXX for XXX the that that being million last I I are XXX but months beginning of we Mike. year at to continuing million, about million have least. you probably XXX We think the million, running

Michael Mueller

but almost Got you feel the And know little summed-up lines, here more NOI bit normally looks go it, bit touched year-over-year meaningfully down like the to okay. at it little does growth board, looking more forward quarters going prior was expense expense a level? I look compared to across growth you like at or when on like normalize you it quarter the add spending

Ron Havner

that my prices The for advertising get line will on in were little weather. year we utilities the won't move big is on this are television swings depends they down the year and is always be tougher down QX. did will X% oil QX we year-to-date we comps but obviously QX a it's as advertising internet do lower be to from really that television now although John probably the the year-to-date just touched Well been last is up next we're are spend in X.X% down up, so guess down year benefitting

other item of historically there, to there The here expect in growth? would but I X% is the items an X% what is item expense and terms

Michael Mueller

it. That you. Thank Okay. was

John Reyes

you. Thank

Operator

of question Jefferies. George comes with [indiscernible] with from question Hoglund from line And next your next And Jefferies. your the comes

George Hoglund

guys. Hi

like York, how give Just feel little of New you want terms market any expected a question a going and can on going of kind you in the to bit have expectations might trends New been in is than sounds how relative better that's and it comments forward? New York York

Ron Havner

Well but meaningfully bouncing strong, couple percent around it New been York of revenue growth has been has hasn't been weak.

changes New Texas so is as more there half, in markets in from it's well an York so, is but don't New understand is York. stronger on the market. supply, will year for some anticipation got done I York what and way, they Not market have been in okay really last a my new the executing. challenging a supply West New York, over year, the New be we not of increasingly the York strong going Coast but the I problems as I think is and There team management think in operation We new doing have New team are

George Hoglund

you. Thank Okay.

Operator

a with [Operator from Instructions] Citi. have of the And do question Rose line we Smedes

Michael Bilerman

fourth throughout the year of to quarter speed as about Michael you last the the back it's effectively so just I the John for the quarter Bilerman Smedes. from Hey, here started you quarter the most you year. or being think in and thinking occupancy occupancy the where a at Ron fourth with last quarter, XX.X% the of and but average started, XX.X%

XX.X% last know today there. whether expands? You How that at it to is to XXX year and end the I is basis should going spread you down points rounding assume or certainly line as said on expect there are whether relative trend it that compresses how we coming at some

Ron Havner

that the currently occupancy the points, think so that spread the as we of narrowed I so the end few I looked negative basis of as I have days a there quite and occupancy ago bit, XX at - days few spread, about spread ago that negative at spread to the has had quarter X.X% have.

Michael Bilerman

math when which XX plus XXX growth your same-store, a XX taking in so year throughout from X.X% be down to is will basis also account, XX better XXX respect? look occupancy access have place getting at a the could Ron to you XXXX and is revenue that the in And there [indiscernible] comments points for tops from as the that deceleration certainly side certainly record possibility

John Reyes

working can to Yes, growth. you that are know we narrow be day the and every revenue and assure Michael you occupancy drive try spread to

Michael Bilerman

Well you how on discounts in aggressive would I and gain offset be occupancy? which going the guess the are question; rate

Ron Havner

with Yeah, driven as best revenue we've mean growth occupancy one leg trying not, rates this we're can to not said occupancy balance I, so before, we're of Michael just just occupancy we we're again and I the discounting.

and increases sticky to looking our not than significant growth those tenants very Looking car I to the during year want we're still that rate and at lengthen make revenue stay, that the more of have going important past forward. here a been remains, how and because Apple a part disrupting for existing tenants at sure

So get. it's to we there occupancy maintain of that growth of revenue that not in the the it's mean is or wanted there to the the I I not components can say a easy kind but lot thing to may thing best I is do do narrow be best,

Michael Bilerman

with your volumes But earlier it what same Right. significantly rate drop to that market the said gets moving you and out? talk the one didn't drive

Ron Havner

for that there market special a worry XX% if occupied. a but like about Angeles almost would Francisco, something that's I I while about all I talking been San say Houston be would now, did mean I be Los in will we've

Michael Bilerman

of those more just versus those what's are of bit rate acceptance of Line door. a in terms the going Can revenue out up levels up little tenants are negotiations existing the you color to increases on aspect the on around the what the elaborate bit takeaway stream? sort little at

John Reyes

as as to I'll the markets the Houston increases we all at out market the well of tenant upon increases. the market send Florida base, deferred to be touched where continue We two existing

year. markets out move to are that them monthly given say markets would just I like percentage the of two increased being very we're those we're our not back been rest increases, those Ron have [indiscernible] in so about hit will We until be going a a us million quarter. them drag December benefit X.X it up pick mentions of with probably irrespective that activity. fourth out consistent work send to forgo for will that continuing the negative normal the last The

Michael Bilerman

Last those of sort you're to an evolving Europe. terms and question today direction stand just update want you holding We there? as where how performance of just on of in overall - give see

Ron Havner

same-store in and to And both revenue uptick during in same line rents had above X.X%, in Sure Michael. at are so in that's place a were bit last up the Europe year-over-year, we the in and dealing the to on couple NOI we XX was quarter, the up next Germany did up development advertising up X.X%, Germany the be filling nicely. same-store the quarter so, over our all have was we've XX.X, XX.X. million growth continue expenses up an and mainly X.X%, They're year expenses $XX properties it for basically R&M was in occupancy up is pool, X.X%, trend pipeline, London. an Holland France. and Europe benefit months, we both from about XX in those and invested And acquisitions, development ramping been in should

Michael Bilerman

you. Thank

Ron Havner

you. Thank

Operator

the with line the from of America. Bank of comes question Sanabria, next Juan your And

Juan Sanabria

Hi, thanks for the time.

talk street fourth? about you could trended into third throughout and rates that the year-over-year the quarter how hoping and Just

John Reyes

moving I and the our more have point, what I people mentioned I it's taking additive what and mean, me, to it's because was actually Yeah. that's what - revenue was, are growth. rate and a moving data data in, to don't important that

versus take amounts. I year. probably mentioned that of down As the about quarter rate down during were last I the quarter was would rates street same earlier, our suspect about the similar X%,

Juan Sanabria

what cap of would markets? secondary basis be hoping stabilized you And to and Okay. primary acquisition comfortable the could kind on on then you of rates, underwriting a talk side, kind for

John Reyes

can general sub-markets, variety of ratio, the the on of the competition asset, the a factors. demographics, depends markets, give whole the numbers, quality it I really you

in acquisitions been is we've X% to saying what to developing general we're and yields to X% X% think, I X%.

Juan Sanabria

Thank you.

Operator

next your comes question of And Raymond Jonathan line from James. Hughes the with

Jonathan Hughes

questions. thanks Hey, taking for my

heard continuing expense XXXX I sounds increases? this Miami, I into this the was earlier, think, and Chicago that saw to and growth headwind do or an you in single-digit do low coming hikes, quarter, to guessing maybe tax you like but see I'm outsized down see right due

John Reyes

or its overall expenses? rates In tax

Jonathan Hughes

Tax.

John Reyes

right, that is some it's probably I taxes true. those growth your about think point to of in expense you're markets driving the

felt about range into be of we tax, now of been year? the probably I like embedded have to increases aggressive next in going to they to are markets that said it's continue those early X.X% will earlier Possible, I of tax be Some kind X%. when still aggressive,

the in in given The Huston we're assessments, in Florida the be Hurricane, still possibly County going as been there's by that might damage property we to in well I lowering think, but caused [indiscernible] market. about some the remains tax to positive thing increases see Chicago, as only I same. maybe see discussion is think

Jonathan Hughes

just what option? I that. cash look for usage so, one then share opportunistic you'll when an determining and mentioned buybacks you with balance, that And be if thanks your does more, mean as at that the Okay, you

Ron Havner

on million the Well, have the ended was sheet. think quarter balance cash I $XXX about of we

got million on to things. contract say few had use. think about we've and of is of a point there to potential spend can't pipeline have acquisitions couple got and than our under we quarter XX or and there million I XXX kind XX development XXX We here's That we the other not, in more that of million

As there, return be, on items or depends acquisitions, what share do capital, is debt of our, previous we going liquidity. in we menu the overall and what redevelopments, and always buybacks I've retired wanted the the developments, calls, of rates then allocating repurchases are share whether to think on financial opportunities said do terms of

items is capital. menu in new authorized So, we've program of terms repurchase that share allocating of the and one been

Jonathan Hughes

Okay. taking Thanks my questions. for

Ron Havner

you. Thank

Operator

any I like the conclude And turn does the Teng, to back gentlemen, today's and would final ladies statement. Q&A to for portion that call Clem for Mr. call. over

Clem Teng

earnings and sometime afternoon you we'll this our attendance talk for year-end your in for in you to Thank February.

Operator

participation. for conclude gentlemen, you and does call. your thank your conference Ladies please you And We disconnect lines. that ask that today's

Public Storage (PSA) 26 Oct 172017 Q3 Earnings call transcript