Public Storage (PSA) 2 Aug 182018 Q2 Earnings call transcript

Company Profile

Participants

Ryan Burke	Vice President of Investor Relations
Joe Russell	Chief Executive Officer
Tom Boyle	Chief Financial Officer
Juan Sanabria	Bank of America
Todd Thomas	KeyBanc Capital Markets
Steve Sakwa	Evercore ISI
George Hoglund	Jefferies
Eric Frankel	Green Street Advisors
Ian Gaule	SunTrust Robinson Humphrey
Jeremy Metz	BMO Capital Markets
Ronald Kamdem	Morgan Stanley
Hong Zhang	JP Morgan
Smedes Rose	Citi

Call transcript

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 Second 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 presentation [Operator Instructions]. It is now my pleasure to turn the floor over to Mr. Ryan Burke, Vice President of Investor Relations. begin. may you Sir,

Ryan Burke

Good for afternoon, earnings the Joe Boyle. here Krystal. for call. Thank joining with Tom and us second Russell morning, you, everyone. good you I’m Thank quarter XXXX

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

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

Joe Russell

for all thank us. and joining Ryan you Thanks,

face of pressure continued we our supply see in the the quarter to the the of This industry. self resiliency impacting storage business

feel requested in and that question, of We that will hands. earnings in a disclosure of we data lined timing package have the full call this call. our XX-Q questions is Before you everyone's that some of addresses we XX-Q up our open I have ensure points want our for highlight and to number the release the this

that of look Our the continue Q, the the document we evaluate status detailed MD&A at section so how the to business. particularly to as is please guide

open the up to would I call questions. like Now for

Operator

And Sanabria first the comes of of question our Instructions] from line Juan [Operator America. with Bank

Juan Sanabria

deliveries for three-year think about at lease time ‘XX, a in of your start look amount way an the on rolling in given fundamental and increase from to particularly as the we window it the perspective, up deliveries, Difficulty] expectations mind. and right versus new is ‘XX assets [Technical to

Joe Russell

and know basis. missed question. Juan, and take deliveries unfortunately, first outlook talking timing you place minus -- if business. what color view plus year as or a our but so I give me on of of of it was, three would -- supply very context given the per With the part your delivery property little take we about both was the And bit that it there's But see. question let a typically up on the we that’s in of lease our you’re any

So XXXX expect last. we over if elevated, very deliveries and year not XXXX, similar, this levels of

still tied happen also market-to-market deliveries into with extreme not X% There cost or the in market still dollars the and from taper say that’s it of lot out capital there five XX% pushback they our cycle. again can But ultimately delay potentially more this in there degree, properties. steel that some continues developers returns either see. with some or return markets development entitlement are still tied X% down the development a that margins or And there than and of yield into it's but good expectations that continues half, are either view produce include for elevated, flip headwinds from ’XX, amount putting way just healthy of some development approvals. things that look hard is and lenders is, to property-by-property data to slow still amount elevated will seeing and and cycle capital to that six. the to property supply tied when But approvals on prolong to the pro the hitting slowdown whether some a to in the of even timing the or the down environment in of of conditions, return particularly may be and being want all to or self-storage build again, often anything we those labor to case very the any overall some where And maybe more business deliveries. sector to the a in as points out basis, potential at people positive materials, development still an realistically be of we’re The is too would business said, there to returns properties, Going is or potentially frankly, commentary that, forma to just a works, some there can on permit could is certainly be that the us. some view thing developers’ the placed that to particular could is based of that changed, a delays

our I have a lot track markets going really don't more to continue that, specific see we and than what we'll with into see color So other throughout XXXX.

Juan Sanabria

us think sense at of in third any quarter maybe were second same-store may. and revenue Street rates, could And do had that numbers quarters leading a Any around the you back year-over-year eventually for where least. should indicator you've if color you and quarter migrate what couple step we think And they The declining then give to-date. a And or to? I as if for

Tom Boyle

quarter X%. rates roughly were the Street down in The

take and in moving we talked rates or more in as as meaningful. disclose past rates the the we've XX-Q As about review,

was And then we rates all holistic rent so the year-over-year for the in were in of down so rates a sale performance. per looking flipside quarter, you for during our saw and contract X.X% amount Though, the prior that down quarter we response in the ramp and as X% that by leased On were during April And rate down second well drive month, as again, move-in the both So quarter basis reduction a that lower on we're in second basis X% quarter. response. so our first by the we the move-out as customer quarter rate was contract from move-ins in filed space roughly was the revenue, did volumes clearly to last night, at decided quarter. first the XX-Q square But X% foot the driven move-in that Between move-outs, the down pleased the high the to lower and rates by to that versus during and aggregate we base was demand kick-off breaking down to volume years. May, similar activity. customer summer sale sale.

quarter that gone point here So second through continued to tenant the third that's we as increases. base, into continues existing quarter customer stickiness existing rate and just And our as send we've about. the that stability talked and we've out

So speaking volume and basis, difference trends of move-outs of move-out volumes. a the because occupancy improved between and on move-ins move-in volumes

in on XX points trend. down down basis down to So XXX that's basis and good The ended on the which XX the average, compares average points points occupancy basis quarter quarter. first a

quarter a through the some basis. improvement second we sequential So did on occupancy see

Operator

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

Todd Thomas

hypothetical from pro about push positives formas is you that forma market seeing starting changes Are And back formas made pro comment tighten to pro just to or in to not up are your you either that lending in nature, development or evidence side, any cycle or are there back comments changing the all? potential I'm the pushed then lenders. being changed you around talking that on funding? lenders. the Was to guessing the at development or is you're Joe, lenders

Joe Russell

definitely we that anecdotal groups with variety of get there. is a some lot there impressions Todd, a out we have of through conversation

the to dialog planning basis the reverse taking land of development on seeing actually were parcels property us we we’re that to a cycle now things not where through a that through enquiry have owners decided One entitles do. on to having a add more is and are coming that

there see yet XXXX. have there intentional I flip market-to-market occupy again and/or formas pro is alluded some couldn’t going there like achieving out to with which other their again in from increase. there mix. labor could or again a sudden is tapering full down think down that to that’s some you away coming market-to-market. that more movement as They There tell mentioned. steam is industry of around how to And for very not likely and be overall think haven’t these XX%, to can’t likely a move I it developers years there’s I with dialogue they’ve is on, with full tell I include at And anecdotal, there’s but holistically shifted play circumstances you or elements level everything so think some I very a standpoint of the that statistically those about really bit more that of delays ahead. again to little it’s them and just opinion ago, three they be predicted rethinking XX% materially would either is could rental I forward. two, from the there certainly, be property, were worry the rates, our pressure just now is that good, a good something either nap review one, So become pool and that deliveries that’s going time from they’re we’ll were could cost. hand to the but where at expectations all looking or But rate being of the and/or from relative I rate completely costs, down construction Again, interest interest quickly, build properties,

Todd Thomas

wondering pertains as through at the or summer on as comment occupancy around winds then could promotions? And can was you into if to down, rent your all head have discount talk season here strategy conditions the I about not and how July, And thoughts trends? off-peak it trended and you or any you whether

Tom Boyle

second nothing of saw consistent in to really So trends highlight rate, terms would call quarter, July I there. and very in so occupancy what both with we the

accepting the I of how clearly, moving through increases. we’ll think rate base our continue and summer, rental in the terms monitor existing they’re tenant to

and promotion, continue sprinkling they to continued And period offer we’ve the relates to-date, observed special summer that’s obviously something But and in to dynamically as through it stickiness pricing then far So historically second we’ve discounts the quarter. in sales we dollar demonstrate the adjust. well. as that to

So we’d that years. several expect it over the past how to similar do to done we’ve

Operator

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

Steve Sakwa

to seem what their to markets around operations. full speak trailing you it’s But some compare, don��t peers. the your I'm realized thoughts can’t are that. revenue wondering growth peers where to do does of And if understanding of have just you or any there I you’ve be large maybe maybe and maybe couple behind your of hard got

I don’t pulling else particular said noticeably think trailed or growth Chicago And your revenue if there those that’s is in where new down? in know two DC, are behind. something supply your I specifically markets performance markets in

Joe Russell

we past, with you that can same-store. begin we properties into the not we is in obviously, something or So way which that talked in the to hold

basis. could and take likely There a on market-to-market been And market-to-market a has And square you levels that. goal at there also GAAP need property some of So again, of on maximize clearly, assets. location to revenue based foot there. is our occupancy going per per then to always would distinctions, of on tied to what’s performance be look

So place even various all take we the want see portfolios. a per though cash across at you some you trending think at a look highlighted, I difference. may distinct there to Again, what's like takes those markets, would flow it’s in we reported. peer-to-peer, our also market that you look and And distinctions would

reasons Chicago, much talked particular into as our market. mentioned toughest more overall migrations and be that but tough area has it's many And not for either out economic or one Chicago you Metro about Now of to flowing a markets. not supply we continued

you as us of there's there. to DC, case, supply definitely we’ve now several bit Chicago talked that more has it’s factor little the more a market. into But in coming weakest. mentioned a market, again, our for quarters, a been of for So one

Steve Sakwa

the of town So might just some and parts different there in submarket think, between you you it's a perhaps differential maybe? peers

Joe Russell

a could That be component.

Steve Sakwa

if of technology a of doing, some some on guys us you of things you are side, What anything share leasing. there be automated programs different And and some then bit the those with almost to the maybe that is about here you and some tenants gears any effectiveness might can having? some and lease attract were to peers flipping just doing your or space little

Joe Russell

invest to customer continue and we we to do and attract optimize all So about the that things behavior. learn

attract continue many about. we to to we clearly being talk things proprietary are and or customers, are number enhance per transparently that that have and So things find we of us to again feel do continue our a that thoroughly that do quality a our that don't to committed customers lead property to many basis. good are and on well we there But locations initiatives we able what think that ability to

of now a company We that have across implemented years took was to at fully system develop XXXX. point-of-sale integrated integrated fully the us that new end several the and

not the and is relative things do customer knowledge. we that that us a but much experience customer vibrant more clarity to giving system, enhance So it's only can to more

from of things. comes and traction both we So that. from from technology standpoint, techniques that to and good continue we investment variety a a our see And continue do focus to

Steve Sakwa

you management couple marketplace some business the you out speak And may a for of and you owners me, lastly rolled third-party that traction could existing guess quarters be of to ago the just in today? the having that with I maybe

Joe Russell

Steve, Panos management we're been that the earlier the it's we've has pleased to announcement year. going better obviously Pete into and hired say you reaction frankly, business his very expected. now team. third-party and overall, said, in than I'd as launched been just the made with the in we go

with like we've we've on outbound backlog with So Up program legacy continues The enquiries, point and is tied that efforts focuses primarily which the if a that major now yet XX grow. healthy. of relations our properties started at in we're What And you cash we we on have team we've and and our through are strong we're development, had again, on to fixated and were is Pete XX to tied that. years, even value seeing that's strong several asking. integration. to has XX And because have that and brand. scale initiatives our you technology, this amount I dealing the tell -- haven't really have properties customer can reverse been The our now point, around have the also reaction lot owners that knowledge we ongoing but been a down flow that consistent for coming. combine right produce again, basis, that capabilities market-to-market. our very drive They market per a do And properties until property like got the we and the of the program. we continue the just brand you run we revenue business of to signed

going the start what overall to see off to by to going program’s be forward. we're great and So a we're encouraged able

Operator

Our next George Jefferies. the from question of comes Hoglund line with

George Hoglund

them those to just and are up question, that deals. off many XX for of how newly managed piggybacking on management a many signed projects? third-party of you Just Are able those party new managers were how other color provide by previously maybe

Joe Russell

dealing to George, pool the entire we're talk maybe that with. holistically I'll

different encouragingly, surprisingly seeing a to us. come variety are we of of types but not situations So

intentionally are way. out by without So operators I public properties operators, includes it just this that properties been combination. running seeing includes us going good in in to has properties And development. that it other flagged the actually that an includes yet as both And really themselves, are and mentioned, a we're markets so private. It outbound currently are

had out So good types of strong again situations. reaction a we've of very different from of collection the gates, good

the that's advantage the out pool. look seeing owners easily. are them put the we're can based now, Public pleased another are think, the And of many assets coming that once again, quality operational fold of And of on again these we that Storage platform right to the We we pretty right on into gate the with we into what again property. brand

George Hoglund

to? seeing then development, And more seeing into to going the you markets? areas flow so are development secondary if are back which migrate And also more you

Joe Russell

as tell are there a to product. fee couldn’t really the either change there of or would type I frankly [Technical to that this more you now is whole. fragmented countries are markets -- have secondary into industry say out Difficulty] because there a looking of lead And George very that developers we you that build

built think are the can to highly are currents a no more there hit site storage typically I difficult more be again entitlement you of as question overall fee some that’s urbanized So because I community because the there, already that be is in those on any continues tell be not whether and available. facility be expensive. in to is of you’re to overall happening, be pronounced. pressure change is out in headwinds market land particular that is there relative might the and it again, be going more wouldn’t to properties situations, the development going to of Again, caps more going going storage amount to place, that But products where

George Hoglund

last just me. one And from

On going an in you you more there. projects? or to increase And out development opportunities see are there front, be from seeing the acquisition are do opportunities

Joe Russell

disconnect this and high on healthy a out or on of pro expectations buyer seeing still trading wrong, buyer expectations so are level that’s that between there. So going seller we’re or not what formas based

change. really there much been of So hasn’t a

X volume seeing a same part So or handle. relatively most the again, in for so market. around they rates are the into not hover type lot we’re the say coming And cap zone, of a really

year, with the where we’re Louisville, this communities of do recently number really continue last like and at presence. Columbia, part Minneapolis. have of scale. out group seeing seen South this of it round again, release Carolina, to under where one properties as to properties we’d of we’ve of a got not we off a saw of some our in acquisitions Omaha, you’ve properties getting markets you part environment, portfolio More in a more that And XXX,XXX or contract. right like values, what us feet. at properties Now our year, healthy look new and good both opportunities level to same buy square Again does we a year able good done in Those whole [$XX or is this portfolio about little include But XX million] we’re that traded thing press XX now. small does totaled a range we’ve volume over can portfolio

Operator

with from Frankel comes the Green Advisors. of Eric question next Our line Street

Eric Frankel

I touch you your properties understand presumably took four Thank What development you long-term? over the redevelopment was given I are upon you of into out of the hoping opportunity can enter little your pool same upon bit less utilized. projects. and sites are touch that some in to opportunities portfolio. just Maybe can your store older expansion available maybe you.

Joe Russell

And been in look XXXX more one little into of color expansion. at that able we shift since on we've even more page redevelopment opportunities starting activity to a portfolio, of have XX, on things in dollars development the our our to we you program and and have started some as Q the we have bit expansion the efforts. our that If do own evolved we’re

so square on that what touched the square A, And next the year, this again another of highlighted months, XXX total So XX XXX,XXX feet demolished footnote which thousand. footage. we’ve properties see relative can to XX, we it’s got or we’ve actually page and over rentable about you some

a speak today feet. is square So as XXX,XXX little we pool over that

view NOI. how a economically, million at about look of to square that annual So give in little we feet, generates that put so an basis and that you you look a if $X.X XXX,XXX about color on on

taking X.X and property to over expanding Now, almost X, set by it million square little times XXX,XXX we’re feet. X that pool

in Eric, the properties mainline yield, or A level we’ve look to the X% is continue very and $XXX on conservatively XX% $XX we expansion. to you good generate we we to yield, going see and properties we've markets, got generate pool say just term stabilized investing get a program strong at our We’re assume see can those an with begun think performance this if level, that into if healthy of long compare again that NOI, and these X% we’ve development it ultimately many you or And if of will continued NOI pool. instead you amount to million where that into yields that so assume million you’re with $X.X higher And opportunities properties alone million opportunity. once got going to an throughout

Eric Frankel

Geographically, redevelopment thus where opportunities have these found far? you

Joe Russell

the So inventory it’s areas existing a or just sense say but most make without existing we can a were easily we facility again everywhere, little encouraged bit, a property of building. add wouldn’t to where touching is I because some that

land property the many if one we extra convert. something Silicon areas available that's say but trade we infill we again it never area assets, location. expand to an and same it's So land markets that could parking become up us there again, then in with it in some extreme. you market. our Valley in would were in Milpitas Literally, because and/or have again, that finished of to in thing, pretty that buy simple is And no up legacy take just might And other available,

So pockets of throughout we've got the portfolio. opportunities those

long-term what again, do markets. encouraged we’re of to continue So in many we can our by

Operator

the Gaule next comes Ian from question with Our SunTrust. of line

Ian Gaule

Ki with here Bin. I’m

fell is flat bit negative your typically then and QX and to last on rolls XQ and to this a positive year slightly year question First little rent was off.

is that curious the just guys become something was a that I’m tailwind increase rent that and headwind? could worries program So a you once

Joe Russell

difference that our several rates the And years move-in seasonality between go our back There is play out. and seasonality if rates. some see move-out you and you’ll

and move-outs. think of a highlighted. you rolled the see I I longer difference there part, for between do roll rent back most down for think you looking term, But quarter the you go in where back XXXX was some if back up the reasons in move-ins we -- some

May, the roll as year year-over-year. last did move-ins our As the rent rate roll But I as you on we and the saw to point that reduced certainly down June of out, traction end good contributed of down in well. rent earlier, we see mentioned increase with month and

which the tenant our and do balanced base revenue, a our it's we of component So of that tenant revenue with the increase benefit out. stickiness existing rate is send from the existing

Ian Gaule

I the your was about contract would quarter. revenue in trend then X.X fair of occupancy, That look bps going is it? that If XXX imply right think be about same-store I'm period which X% at end down Are way a to and half? in I'm you around to of the Is XQ. back below something. curious or missing in just if there sub-X%

Tom Boyle

rent So pointed time, end the and points is, the the that patterns. given seen the that we've our a end sign of of same at quarter to like next the contract the to occupancy the XXX we've data at you that of At is metric point basis talked move-out occupancy between And the we've period revenue X.X% over where in in most past and period something average contract calls -- are occupancy of customer if as where quarter. about day of so look rents would the difference and some changes a last points. recent

quarter that X% little at looking at last the metrics would to and income point. so came average We pointed another those using occupancy to at number over and rental point quarter to And quarter X.X% X.X%. talked in X.X% about of X.X% same a the is data north an we growth of

it's that but been disclosed. data points correlation not It's Difficulty] and a a So there occupancy quarter, rent the we've on -- [Technical perfect is most between number, historically that. doing because some

Operator

Metz BMO of Capital. comes from Jeremy with line question next Our

Jeremy Metz

and a customer being you increases touched talked much But just rate the customers the X.X%, terms changes by at can number increase bit the rate of or looking importance how those? any revenue of the Tom, being about driven this on of customer amount growth, about and in point talk looking rate. increases frequency you of in take you existing is existing at your getting at then

Tom Boyle

increase the to a quarter. rental roll growth The down negative rate rent in certainly through the was

no So a And the standpoint, to been strategy the portion we increases send a growth. there out. was rate has tenant how of from those revenue meaningful change, existing

a vacates summer those receptivity revenue seen time And period, lot to those those it send I’ve that As in of time out at this in about no past, to backfilling tenant sense through high existing increases this our so there this of good but we around months, year. do are changes any talked the rate of out the send of activity growth is as we’ve during so good point. driving rates terms makes more is

Jeremy Metz

to then predecessor of development activity. deals certificate we’re having lot on switching And talked supply, your impact a occupancy about the

any being that As insight on trends still today, front. you’re ad do guys rate you there look activity obviously any of are in still at the just terms seeing? to just on can know there are how the what you of fair seeing relative amount out is pricing a cap those, don’t you of I give but you market wondering aggressive folks

Tom Boyle

flip of I deals, a properties. six, full or I good off bought level it they’re they’re would can which out develop mean can of necessarily is keep or there. we some or tell a but full are here occupancy that rent I set nine them yield or there out unoccupied -- stressed, have And think we close or doing before, at five going those becoming talked to that you and continues there and they to and do thematically, the wouldn’t have able healthy when more development it. that that engage to I about actually returns eight same an again, they’re is, they issues it’s these community see Jeremy, into there build if to But

that tell soon I is think some the coming are properties going to continue to come market. there with again any those if yet overall into it’s coming too into stress to the market, but that’s are

Jeremy Metz

know I you’ve the me, I just just And would demand supply demand they and talked was comment I you of wondering ramp try just that quarter. were more to pressure funnel. into you think spend, that and create maybe the here again but with TV and and down from this about on if advertising we’d some to see the -- maybe selling costs, that last one could

that So you provide line? on color any can

Tom Boyle

So driven the down as but quarter, by X% that the out point was in advertising TV you in spend year. was prior

very quarter, Google, of landscape well and Our we And and per XX% down higher, the remaining a the the to spend it can that’s that trackable on channel advertising of up level. was Internet like, that combination property and as that’s to pushing volume. that’s click as our that in up be primarily moving and drive competitive cost targeted

of on there our use and is drive a to demand systems a technology So lot very ability basis. to granular

more and been And more. that so we’ve doing

have online do which an we advantage addition, is brand. In our

so remains significant the amount maps. from the drive on coming away strong very we local page of like so there a focus even search, channels through And volume Internet

a so you’ll hear this the in about prior is driving on there And that certainly the us focus talking year. TV volume quarter last and customer

won’t media we have going but that TV there. through plans we traffic of we’re potentials -- monitoring to no that reduction well, our immediate is in as television continue a and monitor. advertising transition, is television drive as stores but So something like TV to to

Operator

from Ronald our question next And comes the Kamdem with line of Instructions] Stanley. [Operator Morgan

Ronald Kamdem

question. quick couple on following that Just ones, up just a stimulating demand

reducing dollar Internet understand can rates you're when that just you versus between deciding discounts. bit spend us incremental a increasing help for versus little If

you little bit a that how would provide can and dollars allocate to into decide what color each goes more helpful? bucket on how you If be those

Joe Russell

local depends our that different both and characteristics basis, traffic, pretty those to and market we that’s current in judgment on its that that's dynamic made a tools of the toolkit. that and both past very in a on So the in the local have response,

that's technology So all integrated, are about and a I'll is certainly I toolkit. high advertising, they discounting, i.e. systems. our levers rates, made level, And a high but asking that in moving don’t the just say lower tools judgments our at pricing that channel between that through different we have and talk property-by-property are our

Ronald Kamdem

rest And go I you back for on then think growth if the revenue to I mentioned the already the expectations, of could revenue year. growth the

where on risks of Just upside try Is downside could to more is rents through year. upside either be end the downside? or occupancy or or the through what surprise the on understand it it there's to leverage the the for

Tom Boyle

market-by-market is Angeles the where view judgment, really and New plays of York, to there other actually there's with a we But certainly markets see occupancy that Francisco we want are is good. is is really really that think I improve San rest to the occupancy Again year potential where Los there out. where occupancy, look quite is quite markets those you at have occupancy XX% places same or healthy; how where

so not at the you well. once there's are so basis rate get markets occupancies. as XX% probably is those a all occupancy more types And of But our potential into opportunity

Ronald Kamdem

could terms in markets the on one me, issues new are dealing future. I the wondering just from potential supply of there's saw markets the And in all any last it you're there if supply. supply is have I was sign that that with on queue seeing early the

Joe Russell

That Ronald? those markets, supply into could come

Ronald Kamdem

right… That’s

Joe Russell

of lot on; MSA talked market. a in a that to of about two. is is overall close a another that instance, Nashville keeping that or development again, we’ve couple for last There but we’re from quarter Portland, number has And too. deliveries vibrancy standpoint in eye Oregon market an coming

we’re lot seen So but hasn’t in number to two on a of of the is several we’re particularly Portland definitely they’re in the Portland are of some are there though lot same properties predicted that know back a in talked call, outset even keeping close them. to tracked, they goes of going are clearly do. a being and start. I start the which thing on. -- don't until particular, markets close Again, eye reasons keeping to eye But years a beginning one began that of those really that deliveries, for tracking these is that you about a properties at when development

Operator

Zhang JP comes Morgan. with next Hong question from Our

Hong Zhang

seen just change behavior the from in in you’ve peers if a your third-party space. management I was curious

you've like positive operators? Now decent that sounds various reception a got amount of just from

Joe Russell

No, I early Hong. this, mean, we're into

at So something looking definitely of again business vibrancy. are got lot a that's we as the

I have we'll far strategies that in know couldn't we're done entire we’ve either well. anything running But hear changing. directly you in directly The involved other so what well changes business if to the or business how and seen the tell they're change and relative platforms we what it and now see or as that programs

you tell yet. couldn't that So

Hong Zhang

for follow-up you you, were to And hypothetically just it management like your third from operator come a me, to I is so peers one rebrand guess to question them? to and of -- from just party onboard

Joe Russell

question… not really follow sure the I I'm

Hong Zhang

for signed I into [Multiple of to now. party to board And on to if How Public guess Speakers]? right and the Storage. I Public to with competitors put one Storage up me want for I were long I your go management your would get it third switch to system take will

Joe Russell

are number what the that both party to. or depend, some been over within the to going operators time From interplay, private private Well that's we There understand operators. a has of operators even and public situation-by-situation.

how are anywhere several. that want So tied depends properties; would lot the desire, to months timing there change; of quickly couple they to to on of again, it again, from depends things. the implications personality take a changing on the owners’ It make could a of

Operator

Sanabria America. next Our of comes Bank one from of question Juan of

Juan Sanabria

just going occupancy of indicator. data end leading same-store to Could us as Just year today a the last give where you to sense basis? relative period back points spot is on a a

Joe Russell

Spot today standpoint a of at the prior the highlighted occupancy from to similar I occupancy quarter. it through was improved the year as is end as quarter, trend

XX So average basis similar to and points basis the quarter, May, down through XX and looking seeing finishing on basis XX at in average an April had June, you we're the points occupancies July. roughly in down

through continued So XXXX. more favorable occupancy as trends to going have be we’re

Juan Sanabria

same tough you a how year? second pressures that last from from offset there Is those be then comps have side. limit Or the last expense basis? tougher on growth should half that from expense look just the comps and on any half from the second of store we about what the of think And to ’XX year

Joe Russell

and most in looking line pressure saw going this that you think I item the as is at the And year quarter in go likely time expense taxes. property the through back we as governments increases year we here. expect and continue as that quarter that’s both property where X.X% we’d through go and area the taxes driving local are assessments in to state an up the

So that continue. to we disclosed in our queue that expect we’d

I management other I focused think and puts -- takes think beyond clearly expense areas. and that the on

we’ll we were a the were so bit first fair or we little second general look that’s little in we that, plus minus a as that, but at clearly number. quarter below And in -- quarter, expense got above X%

Operator

line the Our final of question from Rose with Smedes comes Citi.

Smedes Rose

Does taxable you to a want change payment perspective? ask distributions from that you, or or a count of received large that different income, your does Shurgard. redistribution just from that’s anything I cash part as around acquired dividend

Joe Russell

cash needed was that the and in end that income grade, an taxable at of there, associated receive for our that XXXX operations passed a that and of like recognition dividend is required terms the dividend so income to advantage an with drivers other international XXXX. recognize advantage the did we we standpoint, is year So from in That a recognize multinational reform us there rationale to companies. last to at in but

So cash effect this we cash with the and took dividend that took in share income our XX% the is associated partner our and remainder.

Smedes Rose

supply mean it guess you’re development in whole? to have piece I are across ask market that total a it if the I as when activities market? coming look you, But relatively your I significant this. the of is just I percent know do at or portfolio. increases is your wanted that the small in, have of of into a own or I you don’t mean sense supply expansion percent what you you

Joe Russell

Difficulty], nationally billion. so around Smedes, $X.X XXXX to market-to-market that’s in say vary going but again [Technical

likely $XXX about $XXX development going to million. be million. billion, own around development our Our to This $X about platform be was development program is year activities

get we’ve So one these thing piece we not going good property been make sites, a lot continually we we of way whether infill a property. significant to But the development got that’s expanding all in of intentional that of a things. those again the particular that’s development an population activity the competition the able will property. look percentage it’s into submarket, or hold again, literally redevelopment a or we competitive of advantage continue a And is at the percentage those decisions higher launch, analysis own activity, it’s may to we’re we’ve more to but a if that though, be in certain markets and great take whether not that’s dynamics, often thing. we Meaning, of of a ratio, on put new

Operator

At will questions. to this no Mr. over time, conference the Burke. are I turn now there further

Ryan Burke

again again today. forward this Thanks, next venue for quarter. Krystal. to Have a day. And We to look all good connecting joining us you with of thanks in you

Operator

conference This call. concludes today’s

You may now disconnect.

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.