Public Storage (PSA) 27 Apr 182018 Q1 Earnings call transcript

Company Profile

Participants

Ryan Burke	IR, Green Street Advisor
Joe Russell	President & CEO
Tom Boyle	CFO
Juan Sanabria	Bank of America Merrill Lynch
Todd Thomas	KeyBanc Capital Markets
Smedes Rose	Citi
Ki Bin Kim	SunTrust
Vikram Malhotra	Morgan Stanley
Jeremy Metz	BMO Capital Markets
George Hoglund	Jefferies
Steve Sakwa	Evercore ISI
Trent Trujillo	UBS
Jason Belcher	Wells Fargo
Eric Frankel	Green Street Advisor
Mike Mueller	JPMorgan
Michael Bilerman	Citi

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Public Storage First Quarter 2018 Earnings Call. At this time, all participants have been placed in a listen-only mode and the floor will be opened for your questions following the speaker's remarks. [Operator Instructions] It is now my pleasure to turn the floor over to Ryan Burke, the Vice President of Investor Relations. Please go ahead Sir.

Ryan Burke

Laurie. you, Thank afternoon, good Good everyone. morning, Thank you XXXX the quarter us call. joining for earnings first for I Joe here am with Boyle. Russell and Tom

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

press of find I'll our release, and can webcast call reports over replay the turn our You at www.publicstorage.com. audio this an on call that, conference SEC website With to Joe.

Joe Russell

to for Ryan Great. like everybody call We the us. joining you a questions. good had Thank quarter thank and I'd open you, and for good and morning,

Operator

America [Operator Lynch. line Juan Your of Sanabria of Instructions] question Merrill Bank of comes first the from

Juan Sanabria

for the Thanks Hi. time.

still spring in to latest you heavy early, growth? concessionary you speed forward seeing know it's are it What of still a environment? kind or price same-store leasing any how of I the revenue Just on changes is tenants ability see season? curious is new your on the but the trajectory

Tom Boyle

street rates were This question move-ins for in I'm were saw as the that rates, Juan. rates, get quarter on challenging. down quarter, in move sure the also we'll and In meaningful the quarter. remains on with of looking performance view in Tom move at what which those we street is the environment Take Boyle. that Thanks first more we down us actually ramp in,

deceleration of as have while tougher move more in existing ins. time where growth and for we're the period continue the So flipside increases existing and remained component now send to nice slowed that can revenue we we're you has report, will tenant stable rate see a The be revenue is a year. our entering to going base on tenant out a

continue a base. So move-in see but we to challenges, stable tenant existing

Joe Russell

And the on top through well in in of first came quarter. reduction a that as move-outs that

Tom Boyle

That's right.

Juan Sanabria

Could bumps numbers from kind rates around going or in you pay existing you’ve sort quicker can of just and-or done. any into provide some you to effective take details you're rates length incremental up on that and or previously the rent of it's lease what of if put and often the more

Tom Boyle

take in were The down quarter. X% Sure. about the rates

about were As X%. Joe about Move-ins down move-outs X%. down were mentioned,

that differential we in is saw net occupancy the quarter. there in the So gain

In terms through promotion pretty of quarter. strategy promotions, consistent the a

of our terms prior In changed there plan, years. rate from existing tenant nothing

continue those So send plan to we'll out. to

stable. of of the mentioned our I May, and that into tenant rate for some months and existing entering we're base increases June As larger July are tenant our been months has

systems all from that standpoint. go So are

Joe Russell

really note which mentioned as Juan, little again behavior, we're to us. in seeing Tom and on tenant very that encouraging Yeah is change

several continues last revenue. and quarters been now it of manage able be to vibrant for the a to way that consistent part the So that's we're

Juan Sanabria

the color the read the the end expected will through quarter to weren’t can any sense expectations trends, apply the different the quarter trends you are what necessarily give or is to viewpoint? you us last those fourth my numbers end for you can on you good if second can numbers period do. last this And then I you and was spot that indicative quarter Any spot of if period give of of hoping, provide a question

Joe Russell

point what in period would guess say held I you've not has is maybe sure indicator I ever to if quarters spot certainly you Using rent, really X.X%. obviously and the X.X%, that rent end end Yeah you there they're period do relationship it indicator you down occupancy and are average not some occupancy X.X% gets and X.X%, period of end numbers the past that up am occupancy contract look at the to in I closely. if want that quarter, historical what period either, but over was prior contract seen math. close a of there to that X.X% would one indicators the that is negative

move-in what trends. and So for see a obviously quarter we'll there obviously is out. range plays meaningful quarter a there The and is move-in spring

quarter. need as the go we we'll that to monitor through So

Juan Sanabria

Okay.

read average end shouldn’t lower than versus period So data or… as as kind we point quarter a the first historical the negative into of down being numbers

Joe Russell

walked Those clearly I through. indicators

Juan Sanabria

you. Thank Okay.

Joe Russell

Thank you.

Operator

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

Todd Thomas

morning. Good Hi.

has first average the Just the the the the ending quarter. average, higher began in the end publishing of in first the at quarter's occupancy the occupancy been quarter since than when historically occupancy during always first XXXX at the occupancy same-store question versus quarter looking the company data,

basis seasonal ever maybe can comment share and this point curious if a it lower can that occupancy was absolute an Just you where was the April? first is this time you on from I'm think on just through standpoint, in I

Joe Russell

Sure.

in occupancy of the what call. described John a last on that move-out trends So impacting are I bit seeing we're think little

we've than month, differential the doing move-outs prior that's every rest seen numbers at in the and so and end are what seeing modestly month period driving years more period occupancy between are what weighted what than end. through of end of are that's We is the the they average what lower

Todd Thomas

Okay.

month and describe on little a end that I out about what's end about in move doing to and bit yes what encourage you're that decrease month type you've you happening of comment terms can activity? of So experiencing, guess that maybe that comments, sort there been of just those

Joe Russell

release guess I I move-in inventory say see getting of actually when inventory that our at the and back we're view trends the move seeing the well get then positive. as you We we is we at out end customer back positive to month month a the a more look before our Yeah, at month. end just end beginning of of as would month activity

Todd Thomas

occupancy same store you the Okay. share to on year-over-year Are a today able basis? is where is what that for and

Joe Russell

No.

Todd Thomas

guys in the have just then market fairly obviously a maintaining had you’ve lastly question -- cost, or sizable million you for to And with just just Can talk $XXX impact expected I Okay. on per you you know so, so and a seeing few if and year processing, about on pipeline how what materials rising construction years. are you're next costs?? construction is increases in for you're you cost committed and labor those the mitigating you returns an are having that and

Tom Boyle

we're like not might to time any about Todd, meaningful whether steel seeing to you to specifically anything moment labor material or at costs point where from cost. I certain certain time, meaningful to talked Yeah relative can construction have not etcetera. but change any acceleration the in markets it's quarter-to-quarter tied it in inflation. from We

So pipeline. again we've got an active development

meaningful in not seeing markets inflation at really developing and product As you multiple moment. the we're any mentioned we're

Todd Thomas

you. Thank Okay.

Operator

of from next Smedes Your Rose comes question Citi.

Smedes Rose

just and to well, between maybe the property payroll or Is wanted you were a I quarter could on-site thanks. those over different kind course there directions. going why the specifically the manager year cost Hi on supervisory opposite trends of the ask the were directions? talk side costs of versus in in as they anything about

Joe Russell

Yes the continue optimize to Smedes, field we've to leadership opportunity had across the system. our

increases our to run from We're to their pay pleased look all levels we've economies level. or the there's acquisitions, tied out structure impact strong the on and to to efficiency. continue development their magnify multitude pressure relative got market as of at put scale we're we've property even in opportunities that to oversight, continuing we ranks again overall scale. we city does to to and look to cases basically front. districts, some create the through opportunity only continue to to ways again even continue by city react D additional not see for that, but in we markets, actually leadership market continue with good wage of properties own it's that team find there in the cost pressure headwinds whether and any within certain property at to ability properties for But of to growing economies minimum that's level again So had At we a that optimizing

whole a we to a there can, talent. we're Unemployment competing out it's going as and is environment. use we're as tough but very frequently for So out job overall low as

ranks the by then again of some So turnover. level now turnover employee pleased our levels commitment to property definitely lower particularly degree management then level and and on seeing pressure and again more wage we're in

Smedes Rose

and at Okay. just of entrance into where of been initial about far you And are announced launching kind maybe know talk you but you then publicly platform, I the only third-party since some initiative. a months your thus it's the couple reaction management that on of could

Joe Russell

Sure.

not the reaction Lots no but higher different We're into been properties and/or only that have marketing our just a different looking of of than those of materials, type a that been very expected variety whether management. to delivering we plans, months we've contracts, obviously business, rolling a our into we're definitely for stages yeah of inquiries. than early but gotten. product more website out of market the level operators the new by initially we've reverse third-party those entrance of from in formal that So are couple are actually level seeing pleased etcetera, a discussions type that existing we've

tell brand the you you have that pleased there's been take we that to level, a question another the brand that in commanding industry. even overall the So could no only I'd fact by we've if

draw. strong a operating We've scale it's history good market. to and market So got market knowledge,

is offering the a whole good getting very reception. So as

early come transition the to to it our management into good some indications to but and going to likely it's are owners Now start. time into again of program, early take very third-party again to were are rough see that amount actual

Smedes Rose

Thank you. right. All

Operator

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

Ki Bin Kim

more dynamics take just Thanks. supply as Is of where any Is seen play? rates? or in there relationships it simple are at kind there other decreases properties visible have

Tom Boyle

environment They're property operate customers the around are individual certainly driven the radius of individual mile five and of three business property. where local market the a the We properties. around each by very that

So pretty distinct. it is

and question In well move-ins those certainly is new trends, some new the terms our opening others there are years of performing market or for competing stabilized. drivers lease is their and performing as before the better take supply up one of of less so new than three properties of that of no are market market product that with that's we're they're

Ki Bin Kim

of Okay. did the And you quickly, just for mentioned April? rate month take

Tom Boyle

I did not.

Ki Bin Kim

you mind right. providing Do All that?

Tom Boyle

No.

Ki Bin Kim

Okay.

your couple of guess of things. my existing can have sticking X.X%. is I only I the revenue know second take question said move is customer like you around a with increases. really, same-store bottomed same It one and program you're seems out. So quarter it rate sounds about still terms and it's rate interesting The to in

Your it's same store looks revenues bottomed. like

this shouldn’t if put take X% this store than this but together, a revenue though same lower does are mean mean of to try I that much still little So X% does range? to even kind everything bit, be down

Tom Boyle

go same-store impact Obviously through will as lots we forward, revenue we the growth year. things look as of

As I'll roll quarter at down a around down, more in roll versus rent we was information what look the quarters. bit give prior you little rent

first $XXX. quarter rate to out XXXX. per $XXX compared for That rates of of $XXX unit. in the XXXX quarter in a take move first unit was the out in little in $XXX the XXXX the over and quarter the first Move rate So were per was quarter

fourth fourth you deteriorated we've a the that move $XX. quarter, actually rate gap the out for XXXX, of between rate last quarter but seen around and first $XX a of quarter modest was around to the move-in compare that improvement, context XXXX quarter if of in sequential it's from So has first year's

Ki Bin Kim

you. Thank Okay.

Operator

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

Vikram Malhotra

five Thanks for give markets quarter? top you your maybe the taking across same-store Could for revenue us the the questions. growth maybe

Joe Russell

Sure.

and X.X%, Los looking our New revenue five top X.X%. negative had Chicago of at X.X%, had X.X% X.X% Francisco same-store negative growth, growth So markets, revenue DC York San Washington Angeles

Vikram Malhotra

to well. and Okay maybe be Thanks XXXX today of of as of has big What was last obviously deliveries just starts? continued do topic, back sort visibility and you stepping sort supply have in potentially year a terms into

Tom Boyle

level the say which $X somewhere deliveries around through of a would talked this We've is I cloudy. to XXXX Vikram. billion. Yeah bit still that about likely we year, hover anticipated

unusual might $X.X XXXX. that billion get some business to basically has time of and might their What's to a property a have compared that actually actually changed in and intent reverse from was period relative seeing a delivered with our entitled, getting for that's not sites we're to then own time development own developer and piece or so time this the Now inquiries of is property. we're in to a direction build

the with are the that we of take you we're place with one of of deliveries So have to impact again our not only would volume you likely at number a a to there's I in amount look seeing back thing and our that seeing take own there's an we're to business XXXX. see portfolio, The relative we've that us that come little and no but think bit see in coming step markets. that into to surprised unknown you a question continued pleasantly what of we've amount resiliency that been and the

City, that's year largest our leased. ago, in that just just property. So little got it We now case development units where Jersey a X,XXX milestone we take over our units about times, over little a of we X,XXX talked another a hit number and but opened we've your

got equivalent take traction XX% into the the to very four up a built four going beyond vibrancy. Now and it. where of stabilize that's good was thought when year it to we've property We're properties and only we years We're it. we us to

So and quarter dollars good in investment. three in We of a started traction other XXXX we've seen our delivered our We've development. development of we've see also absorption of X.X about that, and again absorption. program million very square number with feet good million

look talked Ron in going and eight you're to development monetize continue the return about when many on and to monetize for here, continue opportunities to the an like five, it to to able for again developers opportunities. are too it a our that's margin. market for call development nine where XXX% and out sense think to build there last it I or something us our cycles So makes of source that

the continue So to to development something wouldn't is business our for that's going to where opportunity product that's necessarily that, time we've back fuel the I continue resiliency going this business. that anything change to seen type development and benefits see can say well-placed. it's to of create, amazing the see the things it we doing that our and an us but to

Vikram Malhotra

very Great. Thank much. you

Tom Boyle

You bet.

Operator

Metz Your next Jeremy question of comes line BMO Capital from the Markets. of

Jeremy Metz

Hey guys.

of fair? down to could you're really it financing occupancy, slow see levels. available. grow no given out just Joe margins So the that now with supply, still you kind just that high There's stick still Is would good, revenue saying has there from the are these that right fundamentals reason

Joe Russell

Well again Jeremy by a as market you dynamic. market know it's

don't part don't to entitlements markets. talk fair most It's the frankly again, that level find certain for new Coast markets or Charlotte get little to we tough like and land of its any. several product see Atlanta, quarters the our sites. be to very that York's anticipate Coast going very last coming more to or West prone of and Miami over West Raleigh, share. we and New got to the dynamic development outside very little tough we to It's we're Portland, On seeing It's

with see source Houston, that what So barometer own these development amount relative from then amount going to going back to that return and it's governor right other peg is developers goes tough kind through of of the funding think are their obviously continues of it again be to development. again banks comes to the play to but to Dallas and and I discipline and the But see and the of here capital.

our So it got out, actually to particular we own plays good to counterbalance again seeing traction. portfolio see but how all we're that

continue good developing relative right exceeding reasons rental finding So sites lease returns. to we're assumptions see the to we finding or and up meeting economic good traction the to right our we're continue and when land and

Jeremy Metz

you the even out I ones, that of any supply to push on a out you the of smaller I there? Appreciate lot and Certificate of at focus markets but in point? the pullback you seen have know have markets seen as activity smaller into or tend any this Occupancy bigger that's spread though those on been

Joe Russell

this really at shift Jeremy I point know You been say can't a there's yet. there

So there's we'll continue it, I you track but to tell material shift couldn’t yet. no now any been right

Jeremy Metz

cap revised just just you point? me it the for cost one last are on then even at seeing or transactions, move of market this higher revenue due And Okay. terms whether to expectations rates capital in

Joe Russell

would not. think make in again view impact now At that the that in private cases a fair of can't again valuations where trading the markets you activity seeing would we're of kind sense. of tertiary no and unfortunately some again our the an markets, in it some make cap of in we're many there we but point rates Well activity right is in again have sense particular amount seeing

there the So we're any again not at seeing shift moment.

Jeremy Metz

Okay. Thanks the for time.

Joe Russell

You bet.

Operator

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

George Hoglund

are along actually there and or Hi, of market lines for and in of out still like are those to seeing portfolios of just lease are you of stuff recently acquisition the it's sale product then stuff market how out that's seeing you continuing up. flow in much deal what is also seeing is coming product there kind stuff terms you developed

Joe Russell

busy first not George Yeah a quarter. quarter is typically

really three at but very little market the eyes on this pending seeing not out we product quarter and focused We've then been we the three, is coming two we're on type or moment. there. more one portfolio going got opportunities So and there our into bought assets and two anything another

see been however then what have think additional to we that we the Jeremy few ranges not in two. market We'll that beyond it's see to quarters the is was product has coupled over into last the coming through and particular or been been lower theme like unusual relative with has play quarter typically that just next quarter first level reasonable. the slow. of than The fact asking, over just again that are valuations the quality the Now

of nothing moment. volume to at So coming talk to product amount to relatively again the in the new really and/or

George Hoglund

for just an Shurgard's provide on Thanks me, Okay. next update just one could performance? and you

Joe Russell

Sure.

had for So Shurgard X.X% an Revenue flat; they of quarter. up had a was overall NOI good expenses quarter. X%, the

So unlike in put store acquisitions they XX minor, again their non-same been to quarter little They’ve good was of overall and us. but Not At had slippage they Sweden very the the good seeing pool. XX U.K., relative France, overall continuing but lease again the In to got moment and traction markets of overall up bit and trend to properties occupancy development very relative quarter. three the they’ve an good other and the standpoint, had stabilization a quarter. properties. a from in very it activity

George Hoglund

Thanks. Okay.

Joe Russell

bet. You

Operator

of the comes Sakwa Your Evercore next question from line of Steve ISI.

Steve Sakwa

out Hi. there. Good morning

Joe Russell

Good morning.

Steve Sakwa

a know just you company, not about questions, get couple a XX% it's to only I level? Just the share Could component huge pool overall thoughts stabilized a that maybe the leased. it's still maybe but timing more on the store of quick to non-same some

Joe Russell

properties our point store number think we've through we've and So we've acquired. to non-same very growing in got again what of developed Steve we both a your pool, and what and opportunities opportunistic

returns to in properties range XX those 'XX the on XXXX of X, We're seeing back are this and in relatively we side, at that develop year-by-year plus. the say good development X point. stable cycle So

then plus currently three just million again it through a those the is X% and delivered take to north now we product and quarters are generating generation going All about to dollars those needs cycle which opportunities completely we lease-up go the of confident more see in and that to is square billion So X.X are of level. to that a relatively that told, we to to a time enough return had well, time continue mature. pool X, trending when of assets, 'XX that they've of X 'XX feet again are

the opportunity out are the but and level to the it's part not there out vibrant for as and have great again we obvious, of well. is of has relative So we discipline and properties and go acquire team front, forward out pipeline revenue that talented a we definitely can growth that but not you find only on that we've our to of something a and development state in a full only development had cycles good good looking to product company

to very this the So confident of portfolio. earnings we're about the view relative power forward

Steve Sakwa

too to that's XX to be you timeframe of specific able but months sort of XX think timeframe, And reasonable to? to not a get on sort do

Joe Russell

kind level. think minus again me, talked it taken and it would Well if and 'XX the I years plus to if work up three or pool pool that to about, point of just to about cyclically or XXXX to the you again how you about XXXX typically it get that 'XX has excuse

So unusual. wouldn’t be that

Tom Boyle

is this you find XXXX I we rental well. added getting 'XX breaking there Tim. and as release groups the that highlighted as rate occupancies certainly And that growth the in seeing stabilized you in see press would that the to hope the group just development vintage Joe to of but into some vintages we performance strong out can helpful add disclosure in

Steve Sakwa

third-party externally you terms little guess flavor into either Thank a business could to business, either of switching I the that quickly I or curious internally Yes more that's what us I guys just unfolding? did. or transition how new you just give for staffing, back done people bring am kind in to just people you. have and

Joe Russell

knows the point Pete Steve, in years I'd us just plus of XX stages, cold. side operational been So the for Panos again with has business who early the yeah to, we're

of individuals on are their his number relative leading management. He outsourcing So who third-party he focus is group is team. to the enjoying a

built. right The that lot well process is the can he's a the got is working actively through as great we well. company sized he that speak key as news off he in resources So that to of as get here team

can in questions to about specific the system out our going have things got or rents that particular that they're there owner more we've into any interim want operational a have So on market another. other clarity to great might coming answer team versus

get that front we completely it as well-rounded we're but well. good build has take staffed, activity time a as just as bit team get to will So it's got business, he that that of confident to going on the

Steve Sakwa

just guess Europe Okay. there on the there? And kind comments last capital and just and any for question I of deploying performance expectations your

Joe Russell

Well yeah I how the did first just Shurgard through went for quarter.

So know able if to hear I don't you that not. or were

Steve Sakwa

circle back. I'll Okay.

Joe Russell

Okay. Perfect.

Operator

comes the Instructions] next line [Operator Your question from of Nick Yulico of UBS.

Trent Trujillo

is are Thanks you the call Trent move-in with appreciate ability could Trujillo the new this to attract since seeing you new perceive that time. absorption on the Hi on earlier and supply. commentary Nick. if markets I'm correlate it the for simply in difficult time but to I taking environment, had about curious the doesn't customers with just classify how most always which you that

Joe Russell

by move-in to were by Sure snapshot in, etcetera. both rate adjusting differential is and dynamically and market, and market bit clearly property, you rental by move to size just rates, there advertising type give of a little promotions unit

So certainly a fall seen for continued sense have where last tools in weaker the market there from good. trends, the rather have of trends been are seeing markets a or trends you Houston that. benefits where is properties move-in give To toolkit we've better versus hurricanes that

be bottom growth. the other smaller are on there As revenue on like performers tend even some to well of performers market Boston. markets an The thinking as example, move-in bottom markets

and market So Denver, some highlighted. of markets there, that's Chicago, Dallas the of some weaker the

Trent Trujillo

as expense I And down year-over-year. guess quick your was you. selling a Thank advertising follow-up Okay. and

anticipate effective So you. do any more customer has been acquisition cost, spending you to at thank and attract in your how customers point terms marketing of

Joe Russell

Sure.

the aggregate down spend So quarter. the was marketing for in

To on did we talked Internet quarter. the and was was increase in a spending. comparable the quarter in about we that you Internet XX% up sense we our that more the and did was not in give spending was expense counterbalancing that we prior meaningful television As spend a about advertising did in such down, Internet last so last on prior this quarter, advertise quarters, quarter television

our advantages using So are we is channel on we that that brand that have a given and name. channel

a the So in of that second into quarter. for we well it's channel working get traction first us on lot quarter and the

Trent Trujillo

very Great. much time. Thank you for the

Operator

Your comes the Jason Belcher next line Fargo. Wells from of question of

Jason Belcher

Yeah hi.

us business Just I with with past couple business over and on customer that's trending? mix know Can you your for of all customer question competitors you is how mix. where mix, mix some that business customer years. been a the your growing has the share

Joe Russell

any pharmaceutical needs But kind track Yeah that or businesses Jason, we and or different purport, don't extra variety construction question types nor businesses. different a you again of of rep whole have track just a specifically of be support of property There is storage firm whole it's who business businesses really range number put proportion. don't that it. that frankly are to property sizable that with that a we that we can somebody types is share there a define have data whether we customers might of no would of have could

So there's you to there. guide really nothing I can

Jason Belcher

sorry the on Then TV this, you're question problem, of spending? one and No what Sure. doing just but you can if marketing back us I missed remind ad on

Joe Russell

television advertise haven't We not quarter in the we in quarters either. and did the on several past

Tom Boyle

the this third quarter in row TV spend. Yeah, zero is a I we've think had

Joe Russell

There is quarter. that advertise we're not that's obviously in on transition television way the TV did so on going watch we in television closely but people monitoring in something the

Jason Belcher

All right. a Thanks lot.

Joe Russell

you. Thank

Operator

from comes of Advisor. question of line Street next Eric Green Your Frankel the

Eric Frankel

get ahead all the few lower with stabilize occupancy I understand portfolio and a whether now the full on and five-year you occupancy I to take for definition fairly low. moving strong years fundamentals last occupancies Can fuller quarter's the is what think occupancy. more of think the would you. sector, down willing more little comment Thank a is you of you rate be to a to

Joe Russell

revenue growth we're of maximize to Yeah so revenue growth. constantly clearly occupancy component a and is seeking

So think dynamics as as that as We markets Different as we're markets both about revenue. used looking case below nature of maximize behaviors. drive and and same-store about generally optimizing stabilized at generally XX% north different stabilized some rental well constantly There demand are rental different that have occupancies occupancy a rate. XX%. of etcetera from of today, to of customer occupancy XX% are ways think a and both circa rate occupancy nature but

So occupancy point. I'm not purely at this clearly on focused

Tom Boyle

higher that, you at the say And over before, able add and you never we property have seen if for occupancy in we to before Eric just levels to could generate operate properties even as ranges. the we four history seasonally were markets seen XX and again look hadn't markets last or and XX, ourselves meeting take this continue occupancy or again sector five cycle to to to those both we years, specifically have to our and/or that certain we speak that again prior

it possible. we're part into because of to a drive to lease general, on that attraction until So again thought basis in occupancies to month and I month level business to still mean the back this were goes recently weren’t able capture

to we've frankly duration keep opportunities to So work again properties of stay many on the but know relative not of full. only role you or way have of the own the our capabilities in don't customers talks attracting the the you additional got we business great competition markets and where our some customers very vibrancy benefits vibrancy of and

Eric Frankel

Joe question. general from Storage the Public the the Appreciate the operating think has have chops, in found PS last industrial especially context, in parks you business obviously storage but you platform? founders office career anyway real past you a fairly sectors, and Okay. just probably with in the of experience that one have and is value self to more could enhance the good you your industry obviously pretty obviously industry is long commercial one

Joe Russell

case family Europe Public got to in and been of lot I've know you XX Storage great customer each Parks. there then day-to-day to we X.X other of goes of every my in similarities a approach you that does that business in led the Storage we prior and processes we're talking have years I thought Business rigor even and Eric again as have the you in and drive the frankly each to business was not we Public and that intensity I strong in But weren’t and day A of lot into Well culturally relative many is our role and level possible. and lot and that great team focus and metrics PS way level crafted involvement John in about a keeping run commanding to industry business got a our the here techniques put is a the customers. of a portfolios Ron million optimize the is levels just got the necessary

or in to in Tom to It's at the defined ways So enhance business. continue to and reset to now I re-craft it's with coming continue not really that again to all. and come optimize all

So lot we frankly don't change. of things want that to

industry. best markets. our brand the public only in Great the its got entering We've the program sheet only the We're third-party have got in entity the now that's in balance development We management. and out scale industry, thriving. a We're

the here. we're future be to are focused excited creative and about to continue So going and I Tom and

Eric Frankel

color. the Great. Thanks for Okay.

Operator

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

Mike Mueller

bit wondering business. some can a for was basics of third-party management on-boarding little new the I of you Hi. the talk about

property on reflag basic to you do those extent board, stuff and you bring a what costs Specifically who that? it, like when bears

Joe Russell

Mike, many questions to but talk the the we those structuring speak basically premature business around. yeah a of elements we actually are that to us little specifics are are those So the yet, as for good

look part at come taking either as you not our and different basis. the how done industry a offer new of can one properties look has that in the at portfolio but portfolio will out elements onboarding what only process into this, be we So

those we're give go the into those and future. details now all things to We'll working time. a little through be bit So are in us more able right that

Mike Mueller

Great.

Thank you. Okay.

Joe Russell

bet. You

Operator

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

Michael Bilerman

I just Hey retirement Bilerman of of Smedes. Michael out the it's a at through quarterly public terms it involvement I point? questions, conference take the follow-up had the with year. and end John's Ron at couple in is of calls Joe this

Joe Russell

Storage been has over evolving the yes, the what's again Michael transition almost Tom today, on literally Public couple now happening last time. based into Well but years, that same and almost I came a at the

the XXXX. basically So of midpoint

clearly and retirement have and that we knowledge for and advice input Ron highly their get to the They also here. where trustees. and that and it's I great engaged relative be being things in Tom will all is I their excited So are both resources able are institutional no to and John kinds to to one be but exposure for them are we're active They Tom going to to losing And because of rely continue they're on tackle. and company. go

Michael Bilerman

on the don’t but the bunch you're to I about and comments, are in I well peer clearly press is lot the development Do perspectives. up breaking this wasn't this of there well but how a to going and/or quarter that really different PSA its and opening different change disclosure you forward as appreciate communications the no Ryan take view release, set XXK and have a and view I behind And disclosure give no peers street? a a of Ryan between your plus if thinking with from includes what do the about it information, added has like you going a disclosure investor

Joe Russell

Yeah and feedback press and into think helpful are Michael even additional additional information mentioned as continue put to the earlier, and Tom solicit did we release. disclosures when where we we

we would to So open any dialogue be others. like with and to from your we're you and fluid hear going that

we'll see So things let us know play how but for.

Michael Bilerman

do print is leadership of there you coming would I perhaps, has that you self don't. in I prior volumes mean you have different desire guess a to go and can that But a everyone hire up out than that assume analysts certainly out others decided got side put detail viewpoint supplemental, you

Joe Russell

it's to new continue to want strategy as have some solicit we we be tied as you to different Ryan but disclosures to we -- with again and add take wouldn't historically to not time we'll definitely point and change team to provide those and that Well to would transparent over even been again be information very continue the will just fact as we've the receptive, continue feedback. the I that and I do way

Michael Bilerman

each of the on two facilities 'XX, of much those you how in obviously release of that so think are as other how understand embarked the comp, then few can Can break which model are mentioned place and don't next give redevelopment, on You the better look guidance. can levels then much has acquisitions development yield model, that the ones capital billion that we specifically NOI capital. I three and the development spent you were years, so over you 'XX, out to your the been then we upturn for in quarters 'XX you to is the NOI the if we press in for on $X

that information would be having So helpful.

Joe Russell

give Again best Michael appropriate the and need. to look the information you think of we'll suited level that amount you is to guys we information

I we'll those we not elements, feedback what specifically and am answer So can going the see forward. do but direct to take going

Michael Bilerman

should of 'XX -- out, have K, Right, your how to million as you million, of on 'XX the have quarterly easy currently XX and annualized money million have. much those and NOI are in and that pull the be details you $X producing number do I to the $XXX spent $X.X million can $XXX XX an development

Joe Russell

that I through the in play and XXQ Yeah well. as again of informational some I'll think

to week be in the going is so. XXQ or next out So

well? look would I as to So that

Michael Bilerman

Okay.

Operator

of a Your follow-up Vikram Stanley. Malhotra from next question is Morgan

Vikram Malhotra

Thanks.

you One, to sort end wondering the of rate think was cards quarter the drop occupancy may quite had be an and rate certain of drop get like quarters questions. on sort if that of occupancy year? two towards effort tactically created quarter, you markets as dramatically. to up there seemed this and quick of and the for and like couple Anything tied Just try it progressed I'm particularly I decelerated, ago it to select a that, the

Tom Boyle

Sure.

to modestly first February. saw better we trends actually your on question, So compared in March

X% spoke rates actually being move-in take quarter I the down, down as take down positive describe X% rates and X%, in for in in aggregate February I down for were in. March was March about while So being move

we anything the trends, rental thing we're the months. the is better in a rates than rental in if season which So here quarter, next as obviously several in good March or for the earlier prep

dramatically we're whether of to specific terms recent although go no Your as obviously dramatically anything lower a lowering we basis. market day-to-day strategies market rates was to question rates, next dynamically on doing we rates on and there's rental changing are been in

Vikram Malhotra

one, view months defined on And towards it's Okay. average in one that a just here year ago, reacceleration a XX stabilization any store you see from would maybe last if you a is whether be year-end? could what there the we're -- from by I towards of that there and there wondering ago, just are was half out some maybe stabilization I'm view and revenue look now. that think a year a below certainly then trending long-run sort six is to months, and

Joe Russell

talk busy and that we we Look goes a rental have more we and as season can season here go XXXX. about through

Vikram Malhotra

you. Thank Okay.

Operator

a is question next SunTrust. Kim Bin of from Your follow-up Ki

Ki Bin Kim

Thanks.

to on means seasonally you out going out sending a Just something, or you're more letters, or did more more clarify wanted now, you that that just sending out year-over-year you're mean to did are rent guys send said increase basis…

Joe Russell

I meant seasonally.

rates vacancy. that July, we for there backfilling out June strong Obviously demand send during as and more up time and rental are we So into get period. May, any is

our months. out a and increases rate sending good rental So those time to largest be are

Ki Bin Kim

of up that worse? one percentage that you've on customers just Would receive what similar that, following to look you this or historically Okay do year. done or expect and would better

Joe Russell

consistent. Very

Ki Bin Kim

again. Thank Okay. you

Joe Russell

you. Thank

Operator

further this now time, or Burke remarks. no the I'll for there to additional any At return Ryan are closing questions. call

Ryan Burke

to joining We'll you, Thank Laurie to thanks again catching forward and of quarter us up look you the for call. all next today. on

Operator

earnings does quarter XXXX the Thank you. conclude call. That conference Storage Public first

now disconnect. may You

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