Public Storage (PSA) 31 Jul 192019 Q2 Earnings call transcript

Company Profile

Participants

Ryan Burke	VP, IR
Joe Russell	CEO
Tom Boyle	CFO
Shirley Wu	Bank of America Merrill Lynch
Jeremy Metz	BMO Capital Markets
Todd Thomas	KeyBanc Capital Markets
Ronald Kamdem	Morgan Stanley
Smedes Rose	Citigroup
Steve Sakwa	Evercore
Eric Frankel	Green Street Advisors
Todd Stender	Wells Fargo
Michael Mueller	JPMorgan
Ki Bin Kim	SunTrust Robinson Humphrey

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Public Storage Second Quarter 2019 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 Ryan Burke, Vice President of Investor Relations. Ryan, you may begin.

Ryan Burke

Brandy. you, Thank everyone. Good day, for earnings joining second you for us XXXX call. quarter Thank the with Tom I'm Russell Joe here and Boyle.

this historical Before we statements, included that of all that to and a cause you remind forward-looking number on are fact of subject begin, we other actual want than to call statements that are uncertainties risks yesterday's affect that could results and other risks release to statement. our and our with the business These reports differ in materially the by from are future in and SEC. results could earnings those adversely described projected filed factors statements

All future to forward-looking this only update events our reconciliation to or today, result the statements, of obligation any XXXX. in earnings revise release. a July these otherwise. financial on of A XX, statements provide speak of measures we or whether call GAAP no information, We non-GAAP included new assume is as as of

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

ask you follow-up. back of jump to feel yourself for course that limit two to but the additional questions, questions free queue any or in do We

turn to Joe. With call that, the I'll over

Joe Russell

you quarter. us. questions. to for And had a We good Thank Ryan. the call you, And thank like I'd your now, joining open for

Operator

you. Instructions] of question Your comes first America. from Thank [Operator Bank Shirley Wu of

Shirley Wu

good morning, guys. Hi,

to How well, XQ did rates. trend relates far street your and also as first in move-in so question July So, rates? my and

Joe Russell

will once a are the in Sure. rates those on past, that more the But customers we move-in Yes, quarter. as we've street rates the customer. ultimately talked they about roughly were in us flat as become pay rates focus

we move-in the were lever down this to X% volume. drive move-in use and the quarter, rates Our for was that

quarters on we've Our move-in better trends which the past of volumes one move-in couple seen over flat year-over-year, the is years. were

rate. less utilized of that in drive And a in of order being bit one that little and terms But street down flat them. advertising on performance, we on clearly other rates to promotional move-in levers discounts. In move-in X%

Shirley Wu

so Got well that's July? as it. trended in And far

Joe Russell

just taking into we've gotten we're Yes, we in trends July.

Shirley Wu

Okay.

and little think [indiscernible] remains So, a the How lever so follow-up elevated, should bit pushing that comment, versus and the a guys more. rest marketing you run are rate the we your a concession? it's 'XX about of site for if to

Joe Russell

up drive platform Storage the with the going And quarter follows first move-ins in there. see online. push power Yes, well quarter. local returns the move-in channel which on XX% there. seeing into has that real Public our lever pushing XXXX we've local those through advantages XX% drive And advertising quarter into of we and clearly to overall that we has Advertising is in the continue volume. been scale a inventory. environment, in lever Storage we're we can as name what XXXX what I've markets good and been move-ins to as online the we're said up tougher incremental calls, on was in with like and that that It's from Public support our prior to brand

So continue as second-half lever utilize expect I'd well. the that that to in we of 'XX

terms discounts. promotional talked and move-in other we using In of about rates levers,

through use, the the down we'll well. quarter, primarily is While as that a 'XX second-half continue month that continue we and $X in to the were rent, method promotional discounts to first for that of special our use

Shirley Wu

the Thanks color. Great. for

Operator

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

Jeremy Metz

here and on you trajectory, trend we about. just here, in base Joe, the the from on the wondering that off Would look spoken X.X%, revenue here, to guys if And to expectations? can softness as into growth supply Hi guys. you expected we your demand fared XXXX? the how be wondering relative comment then coming back just have lower at

Joe Russell

continue have just yes, I in performance our first acceleration you saw range, we growth, certainly level encouraged continues unique the operationally another so what that of say to quarters. leveraging puts the capabilities we've few we were seeing Jeremy, in revenue into more the to revenue we important one for last got you tools quarter-to-quarter of that band, step that the us at reviewed that can X% the fact give us been our of navigate up time. heavy that to this metrics clearly sequentially relative some the and with or got customer of we've be So, been think, at ingredients search Tom that cases, with same of us in is less. the brand, now some look X% all, our by predicted be going around and We've if in of us do kind look things market-to-market, to efforts, competition to the and over could QX a period initiatives range power

to to and drive can't think to again deliveries. going competitive $X we the to going however can do billion to so we in We it's that market. of are fact taper unlocking still XXXX things The quarter-to-quarter XX%, some XX% acquisition, level a because, very tools I different and tracking things heavy. use year in different customer relative continue a the and Supply, again, with ignore drive that levers continue as about you our the another mentioned, encouraging using to we're but again, down bit, that's to us be points, capabilities cases year to and of operate, maybe of worth is activity, this

talked up we've markets and a the focus now we've impacted hit got more Oregon. new shifting, to, cycle, it's Boston, efforts to markets from heavily is even that that like more have quarters got Miami, the to early about some few of going knowing that Portland, supply, in on compete to whether with last in we're market again, our ramp the that for It

close over the the dealing a been is we've resiliency quarters there again, few that strong. the have overall these to we're markets is hard. But business other very news the last keep hit we're up good of effective eye, sure with geared as getting been that and So make

customer encourages develop we're sticky. the behavior. fact resiliency, because no again, talks our the tools quite that capabilities And the of continuing technological continue different coupled Our it with own well. really base the overall and that seeing be to to to us brand, scale, working we're are Customers

Jeremy Metz

a of you of fair? mean forecasting. and sounds you've on sort what change is so internal, Is real of heard it that no fair, correct. Yes, been lot line if view supply, I with in pretty it I

Joe Russell

to we've they've been seeing flipside it is There that exit acquisition again what points on taking on the kind relative And sensible the a fair. owners growing That's more there's expectations values. product of without -- got market; to there question are to out of front. pool

So the we're product at seeing oversupplied. very this same own at they markets good look many be flip spectrum. or just some cases in to an long-term returns attractive to But in many on good can some because we're seeing and/or developers short-term opportunities environment product where it's built, still evolve end of time that the even as whether make

we competitive with industry, factor it's with. all we three, And deal years these So, get stabilized. an in levels as got seen as cases deliveries, And or two, before. haven't these again, until from take they a of you've deliveries many four are anywhere for know, to we're it can to dealing

Jeremy Metz

do talked And to on and where little, at at the second you're I All of per the the a and look buying it even it in you but yields like about I right. here. pretty past, me, look you've able you're terms a good seems and tradeoff developments, for just and price where the if in touched pound expansions

you it? doing issue. as development just So Is site given expansion that expansions capital wondering at isn't of capital; it and just it the back if obviously is or what, anything potential an human you just look availability more is from holding

Joe Russell

Well, things a in the there, few mix Jeremy. I there's mean

So, for that one fact potential for of got that that pool things in decades about some or the the a we've four we've continually that we've become cases expansions. three assets owned good candidates of talked is

you have could others say, processes. work a go make processes months, take can't any once you variety have at it at some it In entitlement negotiations time, in different go to at that of that do one cases. you okay, some and to changes, and Now, or tackle cases through but you years city-to-city or look can just all property-to-property, into

an So a existing all the you've revenue got got of that to on thing then any to the other factor And at around cognizant that stream hand. so creates factors. impact calibrate those expansion you've asset, particular that very we're is

that leverage The we've our do the in been identify we've got to development is skills things and into able effort. that team that

our of proportionate So as you've on is overall pipeline to a today, XX% redevelopment. tying basis, stand development we about seen

last trending seen some to attractive, many few acquisitions. with down are the Meaning we but quarters, been with has relates what that have thing the similarity there take or coming of not going thought it pool entitlement that that us develop." full going owners maybe broader property, we're a "Hey, to piece I'm got step take next through and I've it just Now opportunities land level seeing was been out haven't to we're on what's already but there I to entitled, of pure going it's as they're seeing, on as saying, that over a to there's land of

more team development of working in as hard opportunities by near-term in one, encouraged if long-term one but pull that. we're is the particularly those only So, they to even the by out make sense not And well.

that think, that I we're cycle in into got, the opportunities good we've too. of realm some seeing ahead So us going

Jeremy. thanks So,

next going the question. we're to think I take

Jeremy Metz

Thanks.

Operator

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

Todd Thomas

morning. good Hi,

the have seasonal that cause of foot to seasonally or indicative seasonal First a increase to $X.XX basis change bit. back system, Is you made you a season. XQ muted is seasonal of so the about across patterns wondering rents seeing the I greater the balance quarter could question, foot. the pricing or some and square more the higher just the year little throughout a adjusted square the throughout from rent, if the bit same Historically to move-in hold that. this the XQ, trends in a changes then pressure and would off-peak the by tend decline you to to speak on you're quarter, to expect little Tom, uptick otherwise might was to $XX.XX

Tom Boyle

which go earlier of comment rates around X% through. our did rental some into rates I as sure. the seasonality year-over-year, being takes of moving down certainly Yes, consideration we

our I to fall traffic it get as is as move-in we the summer the and speaking into the to and our see winter in that going continue months months. is generally think seasonality you're occupancy higher

we to So lower did the as one quarter second not the levers use seasonality in volume. going the change. rates is of drive But move-in to

where we're operations highlighted, an new So Joe you successful move-in were there. driving example, supply We to market give in impact seeing traffic is a which tougher Miami, that there.

Move-ins the were up we year-over-year did and despite supply, but utilize incremental advertising. rate new

it, Miami were X%-X% in quarter. rates second call in the So move-ins down, on

that there rate So, there's those And is rate markets. no to some there's pressure utilizing question in drive volume also new where of we're supply.

Todd Thomas

stores markets And at in of push customers the usually those increases rate are rates, Okay. to season pressure bigger and have maybe to peak in? sort moving for in is Miami, and and you change June, to rate And rate like throughout at where difference in then as of come results in customers through is then Any any portfolio? existing there program customers the July the some or quarter, a started May, pushback program those the the there change and market, rent that. balance increase the as during initial increase from in or relative months lower you

Tom Boyle

Sure.

and that's remain to So quarter. the as around we've willingness the to rate to a rental very component through existing consistent, fact increase customers continue the trending just and gone so the in tenants performance first rates, post positively and

move-out volumes quarter. the and is So the up occupancy were XX actually drove what average finished in quarter, basis XX-Q which XX basis we points throughout disclosed in down, in increase points the the up

are tenants down, and quite that's that of were great performing were base dynamics. kind while is well. move-outs The So, existing exhibiting move-ins existing because flat,

they're supported labor growth, numbers; delinquency great market. at by look You the wage

happening good and tenants, lots for things there that of throughout the continue portfolio. So we to existing see

the there, with market In terms rate dynamics those are I'm existing not going of and a to impact within strategies local of factors increases. in detail strategies markets, move-out into certainly considered. go tenant for going on rate different the but some certainly what's will our move-in

things so how have move-outs are of again July, July, down In consistent terms trended in very trends. into again

Todd Thomas

Okay, thank you.

Operator

question next Morgan Ronald Your of from Stanley. comes Kamdem

Ronald Kamdem

there spend, you on increased think a the of volumes that more Hey, change question that's can touched the be the are another it would is profile year moving discernible ago? on, that elevated getting So, on there just just back today from these any is in in of me. millennial it just the customer where move-in that given two the maybe of remains is quick you see versus that even or the One, marketing going to to is sort levels? trend really is -- ones way, sort the no follow-up is about it that? when from even Thanks. a returns also And compelling you marketing that something we spend, that is,

Joe Russell

first your yes, part it question. So, take to over part to of the Tom of second hand Ron, and talk that I'll about

that that's other self into of becoming materially any news statistically than whether we customer. are says drive with it and/or is of point customer unit. generations that you a age millennials link that good take there storage to what trend and things they becoming type standpoint, that good of customers no The to both a are point from So I wouldn't different seen them as at the to they that period, kinds we down is to a anything you different buy have shifted could

of are the and similar very same that now millennial. generations have affecting prior drivers many So affected too

keeping well even trade of there maybe speak fewer we the in They end They apartments. stuff owning sensitized of there storage could are alternatives the off of a as smaller argue at cost are making home. day quite and with lower their today home the out that at more fits owners cost much looking are to that. You is

We are seeing good traction.

no surveys there. are a of lot relative again, of change customers coming types doing are We the to us, that into and

continually Tom, next as In take have. fact, a just business to part? driving of you that generations that we into see too consumer encouraged type is very are that we evolving our other want powerful

Tom Boyle

are with part I we is are It return comments are Yes, of seeing returns. Sur. on it. been marketing the very demand returns on managed bids based here such was are receiving response the that's question dynamically we the made that we we process earlier, that receiving. local second and keyword good at associated the we the the adjusting The are have and spend level good. our level The a and seeing returns

getting through continue. harder monitor good on are that lever will that we ensure XXXX, will are also seek. and But are we we and the we so we we ever as to move that return And pushing But like returns that continue we there and strategy.

Ronald Kamdem

you. of was quick has there existing two you there. don't of strongest some But historically tenant years increases? rent fatigue the Thank not looking can I that of seeing on of what And you last talk I the markets trends? any clearly have if rent Coast just about supply. And Great. think that Or, there? is the limited given it sort noticeable if a you any are couple been West questions, but one talked know about just the maybe performers the

Joe Russell

there. Angeles those Coast between while rates quarter. I Miami No, is of West rates difference the were noticeable been moving The moving higher lower, and some about markets talked Los in trends

different So, different on markets. going there is those trends in

Tom Boyle

really don't the Yes. Portland under the outside West And just to lack from see supply Coast. because Coast again is entitlement, the add arena you Portland, supply of has we feel I shielded that, standpoint, From right West basically of about now. competitive good correct. just inventory volume. land been complexity. stress a of from of we But very changing some the on amount mean are that standpoint

Ronald Kamdem

Thank you.

Operator

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

Smedes Rose

you. thank Hi,

acquisition was if are what I or little about some overall opportunities wondering opportunities just up a to you in acquisition are elevated. could talk on more bit color still you stabilized? outlook? opportunities that Your coming are Are the interesting, that versus you of up seeing maybe terms available still lease seem lease And in just

Joe Russell

to under have. the whether a have for decision taken are There different owners seen a are specific they have uptick and/or Yes, just acquisitions exit volumes. either whatever variety made come reasons platform a occupancy us because they duress included -- properties to it's haven't of Semedes. that directly, out levels. some It's market with in that, And their variety the they we different property level again on some seen we've may that of size they of

the -- We stabilized. continue range that Miami in area. we four-building newly acquisition to developed look properties from at you point a anywhere to either fully can I and/or did

the of or buildings the the that two to delivered and different have one or Each more of had market. other levels more occupancy, been stabilized recently two

and range hearing the are a last lot range valuations the there. lot of a it In brokerage of saw and we to in there seeing there to particularly let's we coming with there's relative owners. inquiries for there's come being of of call again And a quarter, So do community. are Brokers situations, also full activity asked us into are that. out that just different types within a

underwrite, consider, which at. of All we we take a we look

So of again, really a end these anxious are more get can to sellers and we look What way are -- analyze has we continue exit. maybe we to the levels our agreeable more analyze we decision gone clear investments. more are make evident at far haven't to that we seeing stress. On returns to from that changed. that Tom and And and

a are. just a and at conversation consider a a and years elevated to two level or it's and much we one rational point exit have engaged we an or price more that decision wouldn't ago more cycle time again, the from made was good Others and have in said, today a maybe

we contract, about million year. and good some volume [indiscernible] and more beyond playing again, we've of all did that that So We've reported we're $XX of as this are under situations transaction through. seeing last we year the than done activity got

Smedes Rose

Thanks. I year? is Do And sense dollar under you construction. and finance of mentioned and mean, just just start you I supply, probably now mean, the do out off looking a are the down amount on coming availability capital quickly? start have guess pretty most I of seeing numbers further the do the I that, to that? next follow-up supply you that of can mean, of rethink, really lenders industry, drop think? starting to to than to think those you we deliveries

Joe Russell

Yes, that's number that different in conflicting are tough the still to drivers predict. mix. There's a of

of coming still been there sector otherwise lot the and in investors, private a So are equity, that that haven't are self-storage into before.

So there's comes fuel from that. that some

I a As still look development still, are and returns mentioned, there developers to good balance. some at that are reward risk individual it's say going

So get still May the launch do may to and funding it. the

out I On flip and more think don't lending basically I and more packages side, developers. lenders the more underwriting becoming stringent putting, that your in that the to comment disagree they're way are with

level there's year So going like that still hopefully discipline in to creates down likely to to billion stage there's of north But, that next of seen. fuel lot some we shift puts a deliveries. be $X But products. I out from still we're, That's or again, haven't this a said, that of sensing you added of XX% And XX% there. year.

certain as to confused playbook close encouraged I about we're very feel mentioned we've a around eye, and more to that keeping got continue news more we're not the we navigate the is So good markets, it earlier, and us. how if impacts

Smedes Rose

thank you. Okay,

Operator

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

Steve Sakwa

in come most customers, but that you're that I Thanks. of as at the change or customers, on just business have seeing anything been to self-storage new of into questions front, sort of looking any this my answered kind of guess maybe terms product. point,

Tom Boyle

couldn't I something different. say Yes, materially Steve,

in just say local that healthy continue and/or different playing of a base have it's XX%, standpoint, to there's -- much into the do would XX% more or mile through particular percentage feel a of is on distribution, et a property, to customers a something again, another range that property sizable last can from focus say that to we consistent will maybe close companies so, trying and we business-related cetera. I just customer something we cater customers world, facility depending individual contractor from are We see easily as I would even to of a consumers. location to to entrepreneurs ranges some amount and level in from It so as that anywhere again, sometimes landscape tried from and XX%, the higher. this anywhere -- Again, much types And it have proximity sensible again, to embrace good say, of do a and embrace customers. business activity and and them or today's

Steve Sakwa

like I learned facilities, in kind out? the the and just some you've very, of off of in returns done, some storage do look you pencil thousand facilities Okay, kind guess of up Are one this, the other lessons you've and economic these there Gerard that, sort large is question, forward? Bronx, several done you've that of as of pace very units. kind of those to at going How few of the any

Tom Boyle

ago, Gerard, we've just XX% facilities now City open Gerard. have years certainly in two today, we system, Jersey current more in fact, system, current our largest done our occupied. little are is Jersey property a that and nearly about we it's close, than City over got that now units, is XXXX our Well, larger several

we operational bigger So and we own a particular see market go. the in to, a that to like there's we metrics, how handle. of is question we create lot teams to we again, something level another us take big this use complexity. lot But tune we what leads day-to-day of the configure that decide facilities competitive That we our again of in light properties place to activity to may have no area of design and and magnitude of a at then look the basically analytics, level the how

if traditional it might facility, you that property see kind you XX month. to that Jersey that be to in as a for a a have weekend. And we be volume wouldn't XX of instances filled size, City, bench So unusual movements, against literally storage up a in

got a the on design got have you've of And very to team the accessible running amenities, of number way a at relative works larger configuration again, got with you've asset, different customer oriented, Florida very you've of the the elevators, configure facilities, they the the level, service So different complexity with people, that itself, floor to and level teams out unit are because clearly and the these counter. running are, sizes. again, customers however, efficient, though, we're facility

again, we're, opened platform of long. parts at And, Well, many where sense all looking that makes in day it we're different expanding the country.

So, that's the too into though, if some a activity that on I connect developers side. have Naively of acquisition of that thinking. the or the to number owners we're come seeing business

it's idea as we'll city. we into Okay, big go go a good the can, to as just

it thinking a the or a about We will, cases square product, foot to some were skill, stalls, where get XXX,XXX like and knowledge, can facility actually or we even XX% will XXX,XXX size. existing time than the if capability And in a unusual. that larger that or just drive if XX,XXX facility go a see to of XX, again, And and without occupied, not to to that, or building volume. run customers. ability have to because and how to Understand it's cater XX%, we don't you

got going technology flat service, you're right day-to-day capabilities customer to, haven't If going or the you to you're line.

us, a and opportunity and so many cases, good for we're them. more that more of its creates seeing Now

Steve Sakwa

you much. very thank Okay,

Tom Boyle

you. Thank

Operator

Instructions] from Street next [Operator Frankel Advisors. Your question Eric Green of is

Eric Frankel

for increase is pay in how you increased Google? How expense. just And the increase the the marketing the on on back circle click much seeing to just in marketing? investment return the for do like online how much calculate exactly increasing just you an market and I rates you, to are yet Thank

Joe Russell

sure. Yes,

concept are into it's acquire how detail that in. worth all a get getting acquisition and and customer the it to ultimately to which what's us to calculated, much pretty costs to as simple without are So them move customer returns too a takes what in, around

than And done more ability track and much online our and so, been much bids, have that those be in to able in understand to the we the to past. customers world more dynamically tune about today's

So a on we basis. really basis can monitor returns the customer-by-customer and those keyword-by-keyword

Eric Frankel

Okay.

Joe Russell

Okay.

this online, one cost and there on question not In pushing terms of only the the competitiveness are no we overall the that is lever.

Some lever are on well that and seeing as of similar good returns. competitors pushing traditional our operating probably

So we that continue. expect would to

we as operators other driving the addition, storage keyword folks that higher. bidding are well on valet have both folks regional other cost-per-click as operators and types In of and

noted double north that cost-per-click at a was on it's today. maybe call digits, probably for similar of positioning I think I call, team, that the it last

Eric Frankel

Okay, that's color. helpful Thank you.

Just quick Q just you or expect follow-up billion $X.X That's roughly noticed the I so. over your actually spend that to billion investments last question. year from down on quarter. next $X.X in

comments of your many it so of opportunities. the kind And you have that implied are seeing as investment expanding

guess Is not are budgeting I So a you for disconnect? reason much as. the as there

Tom Boyle

through the a them you $X.X at are when if walk think I usage, about resource of resources billion. But lot identified. of and then that liquidity looking capital you haven't analysis, we highlight been we have capital

we usages would expect But Which next pipeline that time. we months. million about the of pipeline. that today, that spend But existing properties pipeline. $XXX mentioned, So, over million as $XXX required cash clear adding stands to complete as over to will be one the development have it of roughly are to we XX Joe

that we that acquisitions opportunities In addition more have quarter earlier, we are are to contract under Joe $XX million. there. that, at seeing end around And highlighted

$X.X over XX retained the months. expect cash the as flow well next the the revolver So acquisitions billion our year. on which we through But resources is capacity the as move are that really we cash have, we as hand more would capital

Eric Frankel

you. Got

is the that revolver capacity on So limitation of the number? kind

Tom Boyle

pretty raise issue rate X%. mean capital XX-year there under right bonds environment attractive additional match. today we Preferred is I X%. under could quarter could are No, We X%, around that go probably touch if is out standpoint. second like a in did the opportunities The financing maybe from we a touch and

next finance months. market capital XX attractive to the needs incremental So, over capital

Eric Frankel

right. Right,

Sorry.

Okay, Thank got you. you.

Operator

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

Todd Stender

sellers. on reluctant are acquisitive, it just color to is that being just there? just a Hi, manage, Is since third up performing? I can the third you potential you those management then get guess management potential we in platform, obviously you if you are And seller so conversations brought party maybe hear some can party how talking just

Tom Boyle

see Yes, things that of business. we there our management a through and to into learn the continue number third entrance party

continues the grow. So, to program

is we backlog time and/or into oriented as opening backlog turn primarily because take towards pre actual will it's opportunities. development Our in The expected either building. to

year this We added program in have now got -- to properties have about XX the total. we

owners a as to may have XX entire longstanding. elements learning Our business range horizons different properties. limited seeing of program of different many are time it be we or ownership it's a the But of that is whole and could number whether more a including

So we potential different with to of are come going opportunities. variety that

The that's there looking is activity just for a well. change surprising as other not that owners but things of bit a are around

So tied a seeing activity one. party some third public management a that to platform whether or under we private are

So again got interesting more we presence want outbound are mentioned situations team over even so more there, of with markets now I as able standpoint, to that and activity activity drive be And to scale we've we're that a different could that. the time built seeing again variety into balance. tied internally good time. opportunities grow we from And to a

Todd Stender

these then circle back know the QX then you kind ones properties, and And but helpful. can of rents the upside just and that if in are have you they maybe versus bought roughly kind in just in that's What I of stabilized don't acquisitions, go QX you in characterized expect rents. in with what those expect? we you growth Okay, or to are just what the what lease stabilized teed-up do up

Joe Russell

mix. about Well this it's a earlier, little I like, talked a it's

to different components themselves, again through. a got and we've are property a property, stabilize in some the variety years, of number assets occupancy again of place property goes some a for newer and to revenue have So that been trajectory a typical either

You look might see up. years base tenant a a until for the standpoint, more quick then stabilize mature. But that becomes that beyond revenue at doesn't a from again lease maturity you

making a the it's good returns to and relative assets buy. continue we factors. to So pool And of seeing we're that looking collection of all we're investment the into those of

with time last and focused I so a those like teams situations, number the of on mentioned speak. thing opportunities are again seen of more So years, we we the we haven't spending over couple other as acquisition the

Tom Boyle

maybe just the acquisitions and XX, break the occupancy where for can numbers occupancy. XX-Q at and XXXX Page on and the to Steve, XX.X% acquisition you I are we Yes, you see what point those out rate

the So some up well. some of up as lease as clearly lease rent likely within to speaking there's growth Joe acquisitions those that and

Todd Stender

Great, thank you.

Operator

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

Michael Mueller

existing customers what Most year? effective you hi. through able but as been increase that was to I things was the well this Yes, to rate wondering answered average were pass

Tom Boyle

would have consistent trends there. very I say been

digits our As averages throughout single high about in standpoint. both that around from rate move real of seeing kind the is quantity there year what on well based of the past in that market as we've but change number terms XX% we're talked type a that does in as are strategy no

Michael Mueller

it, thank Okay. That was you.

Operator

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

Ki Bin Kim

there. Good morning Thanks. all

should on view XX%. you about debt longer mix have Do preferred a look ratio equity Your like? to what term that is

Tom Boyle

made to to committed of opportunities. in said acquisition access playbook Longer to XXXX gives time order add markets both us acquisitions us of of fund of great both institutional it tools. shorter lot fall back debt to financing finance good term, of that really attributes. to pool in a They're as capital really We sense to thought provide in we those allows raise to and a the deeper a the more period we're

continue both. utilize two so, expect And at look I to we as markets, we would those that

don't right of going As to target about forward. particular utilize XX% target expect that both now we going stock. about XX% a it you that number we're would We specific a highlight debt of but where I preferred and have is is

Ki Bin Kim

current the more appealing does environment look other? than in one But

Tom Boyle

good right They basis both preferred pretty pretty frankly XXX look the around and averages. is the XX post-crisis which a now consistent looked with offering is today stock points gap bond between year

eighths at right pretty that the in at bonds $XXX June are of we've because money seven they as as look April, preferreds consistent, and we year, preferreds end them five December the obviously callable in raised So we now. of we were through the the money just redeemed XX-year X% go in million in got certainly that we are

in to the stock stack addition did earlier. with could an year expect add capital So there the go preferred what certainly to be through we opportunity I as would we to bonds

Ki Bin Kim

you a back we curve on you're on do to said getting think return utility utility return right. to advertising sure you spend. Okay. question, Where the curve good good And advertising the just I'm that advertising? going in everything, are getting of a

Tom Boyle

and throughout it that with our that we are local are and and very dynamically very not increase that level. returns further we seeing spend we're returns much traffic others can will levels at that, have that level some see you've the aggregate so in keywords we good period. the granular we we at as decision where are There at the a certainly depend And Yes, feel comfortable us markets been local that's our and that is the seen there's increase good. evaluate but on still

Ki Bin Kim

you. thank Okay,

Operator

any to you. At or hand now closing Ryan the I'll this Thank floor time, over for comments. back additional

Ryan Burke

joining of Brandy, rest to Enjoy Thank thanks of today. your the you, for us all and summer. you

Operator

you. Thank conference conclude call. That today's does

You now may disconnect.

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