PSA - Earnings call transcript Q4 2017

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Public Storage Q4 2017 Earnings Call. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions] It is now my pleasure to turn the floor over to Clem Teng to begin.

Clem Teng

Good afternoon and thank you all for joining us for our fourth quarter earnings call.

are and today Reyes. me with Ron John Havner Here

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

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

Ron. Now to turn I'll the call over

Ron Havner

Thank you, quarter, a had good good QX Clem. XXXX. We and a good

questions. let's operator, So it up for open

Operator

question the of JPMorgan. line first Michael from Your comes of Instructions] [Operator Mueller

Michael Mueller

rate to we're to rate up into clients. few heading time on Yes period questions where the increases, heading months start hi, couple increases going just of the existing next over the you're of

of and that? any are what in color versus other commentary last us thinking year give of just you can year wondering off terms in this I'm you increases around So, terms

John Reyes

John. Yes Mike, this is

past term the, to of think send the continue I is XX% we've we'll of target going will probably the increases what longer we're that be tenants tenant sticky. accept right range years. been the that X% to still to far so And here in are now similar a the be done have increases done to out similar longer the we've noticed generally to over past. at very increases couple how than The so very they what the to and is continues we've our plan in doing far game will what long-term year that's rate what

year We stickiness of past as haven't the any continue push, the in to increases. seen their over determent we X% to terms XX%

rapidly. some to continue such that yet. by to seen in do But, we soon, we means time going we're vacating them So, pushback still haven't more that of

Michael Mueller

you us Got follow-up, it. spot you've terms wondering, mean for into can was XX, in rate. what you of And January to far tell September, I so gave occupancy February? seen us the I

John Reyes

I year-to-date down basis points. X.X%. Well which we rate year-end will at XX.X% our occupancy gave was spread spot occupancy down tell is about you average that the you about XX

So, of the we better, year. inside the right it's at reported the it's of at, end X.X% that

Michael Mueller

it. Got

Okay, thank you.

John Reyes

You're welcome.

Operator

Your of Evercore comes the next Robert of from Simone ISI. question line

Robert Simone

Hey question. taking the guys, thanks for a lot

basis drop XXX Just little have more anything guys a just than a years. into recent you question a in QX its to on dig bit, trying quick that way experienced

could So, on that drop managing? little maybe a you of could is more I if be much revenue how pure just aggressively wondering was how and you occupancy to much comment guys attributed

John Reyes

has What know been more we've month. our again is dropping of the what rapidly towards and You John. been the occupancy seeing we've, that end this is

gave occupancy. the points him misleading asked number, end the that So XXX at the reported we why somewhat year-end that, question, is Tuesday and average the that's drop Mueller the basis when month periods on Mike I

in supposed we forward the to a month. as to that more single average that to provide try think we probably as occupancy day metric as change move I of, So, will reporting disclosure a

the spread it's So, out we more our I month. the have kind of through than vacate the misleading a more oppose seen past little towards to now the seen of of it's tenants and and little you've think end what in month different as

to they seeing at just when the And occupancy as now, again little oppose growth of then XXX gave basis think being I I for about the the and at down that misleading next that points basis to for so why points. folks look that's quarter. think Hence revenue XX average kind we're you year-to-date

Robert Simone

helpful. internal And the promote portion that big third-party the That's last Okay, and really obviously great. the that by follow-up release managed surprise announcement of night, quick of promotion a people just to one Yes. caught was a lot business.

it's, So, that just a a plan of around you broadly while, I kind talk of so follow for new for could strategic lot would investors just the guess PSA there?

Ron Havner

been properties. Not I We've actually management for doing what we XX XX, XX it promoting Yes. got to third-party years. think and

doing a to actually is that think So, but while, think guys didn't off it off. we business, been do but established taken we it's to business, ever other they've know have it, really, seems it it really would a the a take how as I

going wait so, kind of we're And to in here.

to to Our the the don't to operators be we'll going different, through to those a be think little it's for profit most a for going service. of because the we be I us, which at business generator pass big benefits providing plan to approach

we're a of the platform and it's our where strategy, provide the to of benefits and the from which we service. going owners tenant kind - benefits of the like in, insurance to on an operating the Amazon pass the for I most So,

Robert Simone

Okay.

just the long-term or thinking there? what that last benefit Okay, an great. like me to been you the one acquisition pipeline just that to what's kind the And from ideal last create guys, intended of question is or - the on point,

Ron Havner

platform. to I'm sure be there would benefits benefits in scale associated acquisition some our it, terms of some

again similar Some to going owners. to pass than benefits, what of on other are guys other profits achieving the marketing the benefits to most the we're

Robert Simone

appreciate Okay. it. Great. Thanks guys. I

Operator

Lynch of line the Merrill from comes Sanabria America of Juan question of Bank next Your

Juan Sanabria

thanks Hi, for the time.

that per you how are approaching are about of delta same-store are kind last trough occupied actually foot forward, compare we regards levels, of square year quarter kind of revenues. moves times rent from you with Just a looks stabilization it if current any going with improved. of and to guys numbers I thinking XXXX the actually quarter How that this versus third our like

So, could we if you to sense just you in and cycle think a are approximately maybe? give of kind where us the the trough of

John Reyes

XXXX above slowed XXXX, the certainly in line pick-up trend, we we're had average in is later above cycle, down Well to supply. rates trend growth that new the XXXX with

growth have that in indicated have our The have other are positive that in guidance XXXX. that's anticipation companies revenue their reported they two going public to

results better the were QX people most street think I for expected. than

be we're comparable at overall $X.X know the last So, expect bottom, year $X at don't if the to billion bottom, billion. this to year delivery to we're I I to

So, incredibly we of really still $XXX there resilient, best XXXX headwinds in and business is billion. got deliveries about million the is you of $X.X think guess in were XXXX here back terms supply. But, when new the about in

you've positive X new and yet a supply fold in reporting increase public of from growth. reporting a had in all at companies the same-store So, period least four years

product. the as the resilience I the well of the up as business pent for demand So, testament the think to

Juan Sanabria

latest sound getting kind we point, in supply concessions to second year that wasn't and a you going are or that follow-up throughout result that kind thoughts, just bit XXXX, more into your expect on later XXXX continue this guys to using little the should and some do a of from you I And split at you about what me, results new of forward? half think the needed skeptical last as occupancy a it you the how guess

John Reyes

we'd see Certainly, the occupancy like and as goal. towards gap closed possible working as that we're to much

going we more and to or with time mentioned expect also to line paid marketing best and can. forward. we and as on started I do more to spend that our that money television to We and this happy with hold rates, discounts we We're continue search we trying do move weren't the that as and efforts to we're time

revenue certainly not occupancy there off. growth, although about that decreases, what factors to So, it's I increases balance play that know continued us get gap so come is working we other on or of just part big don't that obviously, trying the but into a with think we're occupancy, but

on the revenue growth growth revenue the trying and maintain focused positive year. to really throughout we're So,

Juan Sanabria

Thank you.

Operator

from comes of George question the next line of Your Hoglund Jefferies.

George Hoglund

the Hi early? if product guys, I and environment give from on what just and developed acquisition exit developers you wonder seeing are outlook looking your if to recently you have they who are

Ron Havner

basis, enquires We've, on in to both from people indications an of terms up that me calling which thinking local terms take sites that are, little reverse that that market There developers on developed we of the a properties wanted their a is develop, forma us wondering at are a have skittishness the selling are about outlook. market pro actually entitlements. over indicates their of bit least of couple in if purchase sites in or George them, we've recently to portfolios seen tick

of more kind properties So, to-date, we're of seeing a early first product, quarter. in stabilized its not terms that lot of

private private is market marketplace the the gap capital could of and There Couple the values the the properties year, a of of that's a was public chasing stuff and ahead markets, markets are a and at of public for. guys lot So, private stock lot but between is what public of an arbitrage the normally not ago, time and properties. there sell of pricing was there product buy trading private of lot a ahead are not the years this there in flipped stabilized companies market. it's more

George Hoglund

earlier little translates bit development that those start exit do new then and that give are Okay, getting think kind looking slowing? more and to of to nervous, developers and you

Ron Havner

understand developments economics. to in of the got you under terms Well,

X deals. and we to earlier selling not of And anticipated are if in X% as but that if somewhere in them, to cap our And you it exceeded that. trade them earlier probably business market portfolio X% us I So, to X%, the code. building zip we're able for building that the indicated stabilized market rate on were developments, portfolio, we've an we're

we're margin a So, development in terms doing. of that that's on to XX% XX% what

X local if in or a to that's have really only two you or keep are development no going you've and made and X $X up for for spread. guy meaning, you're monetization tick you $X.XX lot and to achieve a XX% things goes But, or economics sense or so one why And rate, big either X the a the developing, of you're to it you of sell A), XX% happens, supply. the basically so, the a can margin seen build getting new even is there a and yield it

George Hoglund

for color. thanks the Okay,

Operator

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

Todd Thomas

Hi thanks, good afternoon.

that comments just your the big management question third-party a up about stalling profit be first Ron, Just won't platform generator. it

the or to Can to describe the more revenue So, you're be you will it you revenue of sort insurance owner. to along management going a pass of something percent some bit fixed fees the cost tenant charging, or price going else? structure, just a as be is

Ron Havner

Yes will the And and not pass know what tenant passing revenue, in participation a Todd, and it pass of fact the much of to amount of going be we're be it's going very fair competitive are from to I others to be through very the it most is going a The through expense competitive. through. is going insurance be of to insurance tenant is competitive. percentage

Todd Thomas

think an Okay, and place you've of sort management already on is opportunity started there pipeline working do contracts have third-party of today how that it in and something you a is? big is do that you of,

Ron Havner

he Well changes out see charge out months program today, some a of Pete putting Pete we business. rolling the our veteran I soliciting recently in here the and Panos, is the third-party you'll time in management and coming think long actually program made here

well thought Cube ever big than the is that it's as it and opportunity bigger earlier, a the, the Space how think said quite business have I so would So, significant. and Extra size opportunity, the much I demonstrated certainly probably is I

Todd Thomas

consumer seeing where, call your and I just lack late lastly, this power about helpful. and Okay metrics, you and are pricing couple was right I'm conditions and last business for different, across the a your comments summer a market whether if change of to weather it that's the about you're up or whether some Ron an sort in the actually tone there the outlook, on improvement trying the or consumer bit up of of pent And the demand resiliency demand the think credit ago, product, to of talked then has that firming portfolio just understand just the a teams, weaker, read? quarters a been

Ron Havner

about less. XX% at X.X% tax big ago, the little the animal have were market a stock a spreads Well was unemployment not I think but lower, year we a still law didn't and right X.X%, was change, good,

in So, I know. the long economy, has bit market is in Houston tone been year there change it I were in last I a there the terms suffering pretty a Houston decline and an year-over-year occupancy. tone, overall of has oil, change with the certainly in almost think doubled think of don't oils how we actually mildly But been the year-over-year last up of

So, have changed. a things number of

Todd Thomas

you. thank Okay,

Ron Havner

Thank you.

Operator

comes the next of Stanley. Malhotra from line Your Vikram Morgan of question

Vikram Malhotra

Thanks for taking the questions.

of Francisco One they've seeing some are between into commented sort that LA San if compare just be you to acceleration? whether accelerating San Francisco Coast your their are Wondering seeing the West guidance. what on and you that could of and you peers baked and seems

Ron Havner

year occupancy will XX.X% XX% versus it last and this I'll foot the LA XX% start for basically John XX.X%. the year-end flat you went can the Francisco be XX-K. XX%, is in was LA full Well and San are at XX% San versus up was XX. square for and year versus XX% which XX.X% versus was Francisco and add. year

both was year the for revenue was Francisco growth Francisco X.X% LA in and San QX X.X%, X.X%. Our San X.X%, LA

they neck and are So neck. somewhat

Vikram Malhotra

see to of expect into XXXX? you do acceleration sort And

Ron Havner

accelerate your we area demand do Francisco markets bay have with that? years. aggressive pricing a been couple more much on discounts. when But of promotional the last depending to LA occupied John XX% you rental how anything and street to Well robust is add San not and see may rate we for on be in and increases both reduced possibly little flow

John Reyes

are No, been great whole cost markets us. they both us. great it's for are lot good for markets; The very

Vikram Malhotra

pickup seem more the just to relative spend last Okay and to then year one may, if CapEx I or three this two your years.

this market? are specific of Just there specific good if, are a any envisioning rate any sort to projects run that you wondering is in redevelopment you,

Ron Havner

the does Yes, to adds annual. redevelopment not numbers in chased development a, we've that an process redevelopment on of Well couple and square versus moved into into and one, arena; CapEx maintenance budget CapEx properties. go quarterly we've things footage a the it goes well we're a

that age getting may year spend upgrades bucks. they this we projects last which, LED terms faster. What million changed we've of upgrades, going lighting out, accelerated some the would to that's had so just to prior got haven't terms meaning, had a done as but the and guess million $XX a it be some run at this had of on, it's CapEx back features upgrading years. I'm in written will $XXX we more Two, in Three, that time. So somewhere we're caused equipment works, we've big rate change. of hurricanes are you cost lighting our of because we the be few year, is the some going in not my million properties sure maintenance, But,

Vikram Malhotra

Okay, thank you.

Operator

question FBR. line Riley next Corak Your B. from comes of of the David

David Corak

think you ending occupancy seeing the just on Good are at vacating of commentary, morning more than quarter quarter why are end there, kind John customers out historically? do you

John Reyes

one pipe is, the the end quicker of the of month. end and things they some done at we've of that's of things activity helps internally encouraged done I factor them vacate if that of accelerated, are we've that going month, so what the to, kind month internally the some mid-summer vacate the think and started us to of which And space so somewhat at beginning I the we think we've at to encourage previous that the timeframe.

David Corak

year-to-date? what missed are I if it, take apologize rates I your and but Okay

John Reyes

Year-to-date quarter? the fourth XXXX or

David Corak

Both together.

John Reyes

let's monthly The rate the take the average a last at you fourth versus quarter. was year $XXX.XX. $XXX.XX on quarter Okay, fourth the same monthly rate basis, I'll with to a take a start quarter so give it

down XX rates So basis it's $XXX.XX down XXXX, about are take about versus basis Year-to-date of the points. average the XX points. sort $XXX.XX again

David Corak

All right. Thanks guys.

Operator

Instructions] Your line Jeremy the comes next Capital question BMO from Markets. [Operator of of Metz

Jeremy Metz

trend discounts so this talk you year? year that, John, far to sticking about with relative similarly quarter Hey and can the just how last in

John Reyes

last can, so was this I year. Yes discounting

the $XX $XX.X about So, million quarter They the we a quarter discounting. close are gave down XXXX last X% about million away of to on fourth same versus roughly year this year.

Jeremy Metz

new on as to effective well? then an customers And discount down it is

John Reyes

of were tenants, up actually, about our a X.X%, was are discount versus Well so of discounts the of number was about getting about XX% the percentage tenants at year getting tenants XX%. last XX%,

Jeremy Metz

search, Okay, I John quarter. overall year, in in terms the had you cost, fourth that. TV paid earlier on mentioned were And spend of increasing advertising testing down was this appreciate your you the guys but you again

in leverage them starting just difference traffic? rates much ramp So, down you driving the a it you're cutting that and that just to coming up down make when really most these as of finding or is the

John Reyes

money the plenty in we is quarter spent as spend this No talked that we fourth still about it year for last television didn't it's last on television, any we once not was. effective in quarter as television year, the the effective that,

as paid were consumer that on more important our of effective going find they you or preference we will desktop, that as to more search, in internet device only advertising on dollars into our we do to did paid and has that search consumers know folks dollars quarter. due we are spend by little search most on, not everyone expect paid the just for which on using become TV more no and dollars their mobile the we fourth move our devices spend I much and using. we of to we, the continue probably during and And which as XXXX to not So,

focused we're and in energy money more lot on time, So, definitely venues. those

Ron Havner

was internet on million going we're the on first to going last go been XXXX on to million on about some of the put This spend any our around that, quarter nearly $X is television, to $X in not but QX year. internet spend year and up to $X.X so television Jeremy numbers million million.

depends on markets keywords, on bunch spending on, of a bidding our estimate. current whole of Now that's kind variety that whole internet things, but of

in be swapping So, as level spent we're guess comparable John XXXX. absolute my this swapping will the what for the internet, television just XXXX, we to in

Jeremy Metz

appreciate the time. I

Operator

comes line SunTrust. next from of Ki Kim Your Bin question the of

Ki Bin Kim

good Thanks and morning.

for we've seemed is increased and PSA. already from then been things initiatives, third-party management guys than what your property little different to few about, One, unusual level your guys payroll; talked So, used bit CapEx your about the you increase. you which

curious course things the behind add and if changes of management can on those and just more you then color So, congrats that.

reasons is these and some people any more to have So, invest to your achieve properties changes results? behind all that maybe better acknowledgment at there or all more you in

Ron Havner

of very of is, there invest Francisco the achieve in to results, I been of we no we mature think significant properties. I there locations have and is a and minimum increases just Ki, LA and our has markets older results have haven't wages more course Well where are if good. don't properties phenomenal in they to mean operate more to are number the changes. occupancies year But property I some seen brand. the through our they where are there statutory to in XX% our went mature, for respect payroll, With those San you better due quite

markets. to increase, in though adjacent market going may increases you're spillover are, mandated properties in if of that terms market, in if you not because not, been there imagine the in we've mandated is the made, some you have that in effects can those employees that market, you an even spill an adjacent wages. may have that's effect, And so so on have of as retaining that to And wages increase city

third, there that's So and increase. a wage is where that medical it's And also is explicitly, then just line in minimum increased. not insurance the markets

Ki Bin Kim

talk succession timing and your and timing And maybe you making John's plans? a of retirement the and, of the can about you know the, change

Ron Havner

Timing of what? terms in

Ki Bin Kim

Timing, it, to not those timing the on the the time is things? why this date, exact announce is but, why

Ron Havner

XXXX. been this identified working Joe since on hand and Joe Well We Ki, XXXX. in some time actually raised we've his

the in had has is to parts and Joe and she with there. our first great of pierce been of for succession PS up business So, She we a that years. Parks Maria us CEO and resulted Hawthorne a job the Business plan is free to great CEO promotion plus be affect XX she and to doing

great start Maria I've XX he So, she But, to business. once in freed place for Joe leader. the worked with culture up keep Joe self-storage mind, here the got the learning and And we here, knows years, was in he business. a come knows and then is

up by ready. So, are and really or been giving on we get that Tom speed the him to ready end they doing just of and business will he year we've the than think the and time to more be

Ki Bin Kim

Thank and wishes. Okay. you best

Ron Havner

you. Thank

Operator

from comes the Rose question Citi. next line Smedes of of Your

Smedes Rose

business, it's to is to indicated I'm from the to in it wanted I things you. getting right PSA fair even for that's there basis more just brand you've a your could pretty neutral given in of given why relative certainly a as and have industry? a go like a to as that, space, decision profitable premium thank into the it sort what on third-party position sounds you active versus the its Hello, like and the earnings circle wondering business dominant charge peers this, is back amount a more the management demand such of

Ron Havner

and very I when once strategy, competitive we of to modest maybe want fine. want I said, first our we'll we years want we we're be to very, then very But, and and be Amazon pricing. that's the change it take for to make competitive dominated Smedes the Well share we if liking started we getting profit like to couple

Smedes Rose

Okay, thank you.

Ron Havner

we brand, dominant I your a do comment that but Yet, because have have dominant do do yes we brand. the appreciate

the We way. have by brand only the

Operator

line Stender of the from of Wells next Todd Fargo. Your question comes

Todd Stender

from And We the going you both for the a cleaner hear to to time. John. making maybe Thanks. same It more back at is move guys wanted level. management you little at leave the of even just just are color a Hi.

John Reyes

believe And that about Public is, we here. the lives at way in trustees it still know cleaner that I Is are You a guess lot. I wedded that our I be it company. I Storage. active basically and to and most this is Ron we for invested Ron I both look of talked us? And

So the not although se and actively and anywhere we're And team are Tom retiring, going Joe retiring just per not the as still consulting here. being really I we're rest coming day. the even office involved we view this and still somewhat with of into every though

So changing. see lot a I don't whole

In fact, and it's an upgrade an actually thing. it's Joe from Ron be John will but good Tom a and upgrade

Ron Havner

I said the we're net XX. committed veterans of will in our we're vested add the John CEO success. worth lives so we to well, chunk a and own stock strong lot Tom's active we -- XX John -- CFO company been tied still have been our on our going both trustees John's a of very and be just Todd. company Joe most in up here I'm big the said XX years; going John's and both interest of I've year we're as working and nearly, XX been And here we've

Todd Stender

of maybe just your back the do now And Great. also the to you debt balance the appetite of term. and It's an a credit thoughts Thanks fellows. maybe for always end you preferred the near are color at market. you lastly sourcing Did what's capital guys line but QX over have unsecured sticking John. for

John Reyes

as like preferred as the months, may market. we've like unsecured not although ability We've raise we tap market current can We we'll certainly end the still nice coupons are a we probably capital they into they We're ago. sitting demonstrated were the of Storage's year; to retain done But that Public were the million million and in that years in $XXX on we continue we're $XXX sitting already of within retain couple a -- to cash. not manner. We'll million retain the interested $XXX nonetheless, to -- year. company, preferred cash the we'll about at still of market. Well, the

plenty So have of we liquidity.

so not liquidity about position. we're And not our -- I'm worried too

coverage We so have ability to if have the continue need strong raise to be. capital ratios we

pipeline, do the retained hand and which cash that. now needs for funding flow development on our are have most pipeline our redevelopment are really that part Our we the right can cash existing

So nine real within no company months. to at we capital to to raise stress on next least the have six have the

Todd Stender

you. Thank

John Reyes

You're welcome.

Operator

a next of Citi. is Your question the Rose Smedes follow-up from of line

Michael Rierbrock

Good on little wondering morning Ron Board comment if the the was can I Board bit changes. you anticipated there. out a --

I your X. right think So now Board is

Joe and are John come onto like to going Board. Sounds the

of XX. those there then XX sort be more you was independents Of that comments to that and the to anticipated of size keeping nine between look the size the know don't go Board know so of you the X the for through has if three timing of I company small, and you a Board. that can insiders the Wayne and add I that's relatively Tamera would of at So going your members some in been but change. would that's release

Just give on a little bit that. color of

Ron Havner

Michael? or Smedes this Is

Michael Rierbrock

Michael. It's

Ron Havner

Yes.

release, our adding not are Joe of we'll year. going year. Yes. directors of X the and some the during by January It John join Michael. in next the press lead independent until be Board director noted Okay, this to course is

couple have fourth XX quarter. by got months to expect we board's which the place the directors a So of find to and in obviously go more

In Board being Joe directors. coming we will terms John with and on have to insider enlarge versus an of to size, size insider the and myself independent yes, Hughes, Board balance of and out the

Michael Rierbrock

so up to you're And that member Board? a like XX to going be type anticipate you going

Ron Havner

Yes.

may even going bigger it a director and retirements years because line down though. we're here couple the some have that to get road of along little Somewhere a

Michael Rierbrock

guys couple can on I the know to mid question late of from on the -- have maybe a Right. don't board. XXs still I

Ron Havner

Yes.

would be that moving So million on years. in couple next of the

Michael Rierbrock

the it's to you of it critical been is has business pops the just loan increased think development I party haven't third yourselves do mom sort or one build. do of potentially of you their stimulated mom all most as to bank to a that supply a playing of say development it business my or that? and that party trying and lot this assets of been peers your detractor of overall lot really do view you about and that of from things How a felt a able And How one recent foresee big because thought go -- you've that and that and managed this I managing in access taking have they're will of just all do existing an for got just we the during a cube reasons got supply do look you will this to hey take that get a -- of something Hey third by managing or into away I look walk deals you mean and pops? can and been sudden sort facility contribute can't space developers get wave. growing able facility. sudden I you extra my

Ron Havner

I think answered all away We're It's our Yes. share from own question. going take competitors. hopefully your three. you to Well,

facilities. want We we'll established will some developments. do do business. Yes, grow some We to the

day to building Space certain for build noted and Storage think determinative which $X.XX or end as getting than rather have went I economics going or just someone about build development it. versus the think $X.XX operational also the Cube Public whether operate going someone operate can the or property. because more you of commented the think I to of contributed for has a to are At the of through I or is Extra that I the selling whether it a but a economics and it's earlier dollar monetize takes I extent of to you to the you development away risk it

Michael Rierbrock

profitable. retailer for would down the as couple companies and road owns a then bigger that manager, part that of here? the something more brand the a in Is years maybe that of going there's you Public [ph] Corp] thinking envision of that especially think asset makes the potential at reform of much light the the Storage, two play down road [Sea that this you just storage tax And

Ron Havner

No, not this at time.

Michael Rierbrock

Not time… this at

Ron Havner

You had I properties. managing XX today [indiscernible] with Michael. we're mean

You're not we're getting way smart. ahead -- of that

Okay.

business. in blocks year to we've get of you're to management. eight to going, okay, get terms down plan got So and got under and ahead of the No. saying, out of this way a here have some We've XXXX going is the part we're road get properties

Michael Rierbrock

started existing that aside. the rolling properties just estate taking the owns your management platform about into leaving REIT that and I real and Yes. a

Ron Havner

up we leakage is a lot made in and yes, put XX% rates leakage Corp But than business our terms it tax can had business party and we at of into reform XXXX. And or third we better level. more a than level size XX% What structure tax TRS XX% call, X% that is Sea until today's XX%. a volume fits

we versus so leakage prefer no a to leakage. And XX% have

Michael Rierbrock

time. appreciate I Great. the

Ron Havner

Thanks Michael.

Michael Rierbrock

Congratulations.

Ron Havner

you. Thank

Operator

turn closing you. remarks. Teng Thank the additional or to will call now for Clem I

Clem Teng

next you conference Thank attending we'll today you now. Bye for and talk to quarter. our

Operator

Thank you. Storage conclude Conference Earnings QX Public does Call. XXXX That the

may now You disconnect.

Public Storage (PSA) 21 Feb 182017 Q4 Earnings call transcript