Public Storage (PSA) 1 May 202020 Q1 Earnings call transcript

Company Profile

Participants

Ryan Burke	VP, IR
Joe Russell	President and CEO
Tom Boyle	SVP and CFO
Jeff Spector	Bank of America
Jeremy Metz	BMO Capital Markets
Steve Sakwa	Evercore
Todd Thomas	KeyBanc
Smedes Rose	Citi
Jonathan Hughes	Raymond James
Ronald Kamdem	Morgan Stanley
Todd Stender	Wells Fargo
Ki Bin Kim	SunTrust
Mike Mueller	JP Morgan
Spenser Allaway	Green Street Advisor
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 2020 Earnings Call. At this time, all participants have been placed in a listen-only mode. And the floor will be open for your questions following the presentation. [Operator Instructions]

It is now my pleasure to turn the floor over to Ryan Burke, Vice President of Investor Relations. begin. may you Ryan,

Ryan Burke

Good first Thank I’m quarter of Tom the Erica. us here for for line Boyle. and Russell our XXXX Joe day, you, you everyone. joining on Thank earnings call.

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

May to whether future no X, XXXX. statements forward-looking new result All We update the statements revise today, obligation any as of a or otherwise. information, of speak only events of or assume as

the this in measures to financial we reconciliation non-GAAP on earnings GAAP our provide A included of release. is call

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

you we your ask that initially. keep usual, As two questions limited do to

Of queue, additional that, have if back questions. course, jump in you please feel free after to

it turn Joe. I’ll that, to With over

Joe Russell

joining Thank have for today, you, particularly pandemic. And been the us. thank those personally you listening We for Ryan. wish best that of the you all in impacted by

this we to employees, business for partners adapt efforts and flexibility thanking customers want to begin as our by I their extraordinary and environment.

everything do, customers. focus is is and employees Our protecting our priority Safety top we simple. the in

portfolio are our as essential operating business. we X,XXX-plus entire markets all are We in an

optimize our and are navigate To customers these being way. a yet access to like properties times our several includes customers as social our that servicing disruptive place employees space times. validated. new and reinforce in supporting is existing even in self-storage to contactless clean, safety for In challenging so, regard, that their beyond need service. again priorities avenues do rent distancing, ways or keeping frontline are through communities customer Protocols The offering in in we multiple these

start Fund, customers. which provides to we they I hourly of been established team as and to At pay Public the valuable additional million the commitment also X.X compensation overstate their the can’t and pandemic, managers. continue property how childcare of extended off time our to Storage serve coverage, PS will has our entire Cares be

Public we year, rank its have likely weathered As and Storage XXth the extreme. economic of this one one significant clearly cycles, most will approaches as

maneuver We have playbook disasters. economic natural proven a to and through severe

we tested, is intentionally survive, battle crafted and are these. like balance to sheet a product in our have resilient, but fortress teams only Our thrive times not

our Storage fortitude is applying well new At strength the will to ways whatever team confidently, of not arise in to its only the full core, Public find opportunities. face find near equipped we term, but and challenges unique

I Now, hand questions. over will operator call the to for the

Operator

[Operator comes from of Your question with first Bank Jeff of Instructions] Spector America. the line

Jeff Spector

all Thank of are you. okay. afternoon and hope Good doing you

discuss? past release, you seemed which versus I question. guess, some of the be much the of First made I market the fundamentals resilience you’re in validates comments, guess what COVID-XX more I color cautious. the in you just your tie to just, around and -- the, stability on guess, to sector, or some seeing trying first question, the press the as of the Can my Joe, That’s

Joe Russell

Jeff. Sure, Yes.

So, economic been all everybody. and of different again, that number degrees. through, We’ve is for obviously new in of a different environment we’re cycles an

this again, When health go a has best to we resiliency and our we The time, us and the pleasantly of in dealt played again from very of none time even by I relevance of type and with the the at those prior through particular, before. and were natural recession. what cycles, with is environment product surprised clearly great look hurricanes, type through related. different predictability We at adaptability As information have of and do itself. disasters, well than This call property it’s mentioned, be otherwise. lot to back the even is we, science determined, because

hand, one a portfolio. we the and we XX,XXX into know need On last This usage degree high that of to clearly moved of in continues customers there or April, product. month be our month,

down, at We on there’s with see there, a Now, side, flip again, have but activity that need. the can because amount we now we centralized it system. track our there’s vibrancy also that’s properties the holistically, of access

into facility, raw even tiers going itself. service consumer I anything oriented and of the level need So, true a or and/or business a valid product may COVID again, economy. on a think may this activity for There type with it’s the from that that is whether at be not that’s

you looking of there’s we just of to know a of know fair don’t that things can day-to-day, we we’re And create types because And anything, will this. we into just going that to points So even seen what’s through. weeks are because, at haven’t frankly, with realistic future I six don’t be a pressure we’re environment additional the predict degree as caution, play week-to-week discovering number how this before. going

we’ve with Now, cycles. things are again, so though what extreme far somewhat similar other seen to economic

similar. around, so April, very delinquency great through hovered a X% the or recession, in the factor month So, of again, our

from So, collection month of even payment on basis. a through year-over-year consistent, our April, customer the standpoint, even base, a and was

to and whatever great does continue it’s got So, to continue going different through address, to. and to nimble. we’re strategies, we surface great surface react that need address, mixture address We’ve to We’ve something tactics, or to to cetera. again be et got analytics that tools again, a continues it’s to

looking position unknown. of this would an of again, and in at still overview predictability basically be that how, we’re So, the a it is environment, clearly that

Jeff Spector

question the second sheet if the about we My opportunities. then, of talk and balance strength could

how take crisis. during today? we downturn about discussed of opening the verse? how PSA a one seeing Are I regrets was financial more world remarks. think bit this? you in think are aggressive during I And think, should quickly what this -- not being advantage And seeing the you this your you can

Joe Russell

more can a specifically talk bit sheet stands balance as it little Tom the Well, Sure. today. about

So, but extreme which four it’s him coming I’ll or cycles at of sec. the is an seen and sector, ability again, to won’t and been to abundance is to There or the predictable one is supply evidence, say, this. the three different last point it very a into of early, where number again, market, have that likely new be But, very capture a owners suited like this ownership that in that again, the years. be we structures do there it’s we’ve over come let a into with particularly years with could over be, owners would If, something price more three may more looking assets, four attractive surprising. deal than like again, be a last, fact, well particularly not much that think be,

We’re funded hear, to a starting And say that of through certain again, would underwater, some below debt. they’ve assets around been I the level are where value. that are rumblings valuations

sheet way. to environment it it’s of market. meaningful it. ready again, us. out create the transaction again, to starting, that in to could that the And, we’re activity, so, advantage it’s some ready is for of And an be And in of wouldn’t in surprising for additional us but ability hear early, a the that take balance level particular, And

how through. it you see color I’ll Tom. a where hand sheet So, plays he we’ll little And more that the can to balance today. And over bit give on stands

Tom Boyle

to previous balance discussed sheet Joe. with around times, is on quarterly we’ve calls. million over great touch fixed Yes. as X in the EBITDA times, Yes. $XXX sitting right just charge now and to over sheet. on shape, cash X Thanks, And we’re Balance in coverage debt

about potential So, to opportunity, liquidity and take it financial our very should of good position feel we arise. advantage

see As mentioned, signs early we’re Joe starting to of that. the

Jeff Spector

I wish Thank everyone well. you.

Joe Russell

you. Jeff, I appreciate, Thank you too.

Tom Boyle

you. Thank

Operator

Capital next question with is Metz from Your BMO Jeremy Markets.

Jeremy Metz

Joe, that was and delinquencies Tom, turnover more if terms occupancy you wondering with in you April in I could was a color guys. Was right And last as in X% trends were what of and little rents. then where year. April just the like well? it move-in sounded give line happened for and on ended that Hey,

Tom Boyle

Tom. walk of It’s through Jeremy. a number Sure, those points. I’ll

and were students, really in stay the So, were that up significantly, that quarter, notably volume and as about others instance, But for in good it the activity encouraged January, into you stepping started XX% on context. X%, most in quarter activity move-ins in move-ins which XX% One stay-at-home we college through March, In to at customers up, demand, home. ahead folks of week back, a April, began pretty give orders. on then, to decline occur typically would pulled to had later January. second move-in, meaningful in then we quarter increase March, looking February, a call forward at we were saw as

Web Overall about to down. across search April. drive month calls Inbound sales April. country. come visits circa XX% down in the volumes rental of have was XX%, are activity of XX% volume down despite through move-in down X% Overall in decreases April rates are the in about

storage have online So, and lease. utilizing e-rental precautions for with a need, our we’re those customers space enhanced in that properties providing our

Joe activity for demand in mentioned, tough product over as in the we April, of last seasonal year��s XX% to which Somewhat times. speaks encouraging, even experienced

as modestly April. we Trends moved through improved

rates. again, it of XX%. for week April, But move-in were instance, last volumes So, down rental about reduced

was an move-outs. in anticipated Somewhat offsetting the move-ins decline decline in

move-outs auction-related down X% So, the move-out taking volumes, account of in was April. into not month

may behavior an metric was customers We’re in are past increase longer pent-up closely consumer watching move-out XXXX, in with that and talked length anticipate the volume. in stay-at-home orders shift of out. lifted, in there stay see this a moving about that we We’ve

have to date. We seen that not

down. well Our perform and existing to continue remain move-outs tenants

move-outs, less to just As visits but Joe we have move-ins and mentioned, property, so of activity not customer overall the property. seen

at centralized new and March. down was versus us into insights XX% on going access April what’s about properties, the gives system activity Our

ended quarter occupancy. XX occupancy, In basis points XX, terms we of up in the about first

had part April. month As attributable to we We’ve that of the the we was through that fact postponed continued that of auctions delinquent do of customers. to disclosed,

the a customers account up take our on Still the up us year-over-year absolute on we with was XX in April on have So, have if basis. our end prior fact basis, seasonally occupancy basis. down But, was of a an points. may auctioned down about occupancy that otherwise some year-over-year at but we years, you that basis into

prong commentary. of third collections, your the to which is Moving

As XX% very we consistent press Joe with what April collected time. last release this rent noted about were saw where line as that which and and consistent just April this right at rent We’ve in year, year point, highlighted, our with in XXXX. were in is prior we of the with is collections at

go we elongates pressure very likely we’ll duration in But consumer. could this go here, are react line. to the as monitor that more we of as and And pandemic put from the much So, forward. this we very where to on at collections point, have

Jeremy Metz

foresee there? now. It are That’s see little regional great my or just in I’m you Texas from Southern then, expand sort is But, you can see sounds and to California, to seeing And on April question, see, pretty to perspective. them they’re from that business reopen? customer you a to color. in add energy, about areas closures, you just steady the -- a trajectory hearing performing, on could what talk of about wanted more are if there Florida, expect of bit starting here. given from second if but a right do little would what Thanks. just fall you start up side. what to double the How’s given just, What kind I you starting going it Tom, there? off when the are And like, I

Tom Boyle

regional So, that there speaking are to. are trends worth

is also rates takeaway the slower impacted. more been has the that move-ins. level slower of high rates move-outs, the think, of but seen rates Northeast, And of Northeast in we’ve I move-ins slower

and or Philadelphia, Miami would York well. in East you up expand that put you can Coast really, as down New at because that that probably and So, look the Boston as or category

markets drive we than those closely, have down, up Houston in going are well oil reasonably the have we more Southwest the X% others move-in similar as with still to meaningfully we but have Texas market combination into hold that seen and what’s but we cut that Houston, range extends West have more prices, higher prior many on northeast. XX% Texas. been that the more with in watching of with Coast, the the Along other in years, a we I Coast through volumes volume rate move-in West well pandemic as order the versus that in markets in down that in one And in highlighted. Houston and suspect in certainly with then is and to of volumes the

Operator

is Steve Sakwa next Evercore. with from Your question

Steve Sakwa

the on the a for that of rent know single you think is that. on temporary the assume I kind has to industry. increases, on revenue kind of really I’m just do gone still how what driver might for? timetable customer morning. hold in which I long be the May. of hold industry for has place been that that curious, Good Thanks. that’s And growth that existing

Joe Russell

Sure.

we to pause through Xst was So, and for move existing did March. that rate appropriate as sense it out And tenant made send thought we June increases program not billing. we

of magnitude. the little what bit That second quarter. the time rent But, we level, be how we’ll them. have the managed behavior post that an which back, event and with when same increases restart a very rental more send, to was Stepping where determine time, So, here it to at in appropriate be data tools what that we recognizing this tenant that part will normal the granular we in continue those it time, a from send important rate send existing through at past to will the we analytics could and the order using be increases we drive, different, than appropriate go consumer a and before. using in are

Steve Sakwa

appropriate? follow-up, kind those country it should forward something, is that’s amount a sort guidepost be when Yes. just may be guidepost, what of I of a mean, And is we there determine is about open? to as looking of Tom, there the

Tom Boyle

of number economies, see this X I’d June at a local we we things. to point, say, and to of seeing, a for out of it it’s on Certainly, effective. thought those we’ll them. that going in consumer are behavior end different the that send the them we’re things At prudent situations the number as Yes. not April react

Steve Sakwa

for hourly press Maybe in kind about quarter. at mentioned expenses release, sounded talk just Okay, you thanks. the increasing it by like And at least the -- $X of wages least overall. second

I were up. still think, maybe marketing online costs

you Just employee do the expect the kind of costs how balance are those trending to how trend through and year? of

Joe Russell

how about. react that by of on second be through And, we’ve we’ll to Yes. personnel-related elevated continue need moderate the the that’ll Yes, expense. Q discussed We things going forward of as understand, that on the we some first again, the overall virtue Steve, well. in half put to to year. QX, the information again, and environment into

us. to at expense as across another looking a Company or don’t The levels other tax of to tied bit Tom, elevated. all that direction another really increases a at color way give whole. moment, can on it’s the we’re of And a the going burden is We to And predict continuing little one still have advertising. be just than component expense the more you our that with

for So, again, tool us. been that’s a vibrant

going to We’re going in to But, it again, well. continue aggressively. it’s as factor mix the be to use a

again, contracts, portfolio, the of tied whether our expenses, cetera. look the operational to it’s to putting capital et that amount we’re maintenance of into continue We all at vendor

that look to So, to we and for continue of, in something levels. optimizing environment it’s overall this on focus ways cost definitely

And, a want Tom, bit color with marketing little you we’re give more and on if doing what spend? advertising to

Tom Boyle

saw the Thanks, I’d lever through Joe. first we quarter, that. continued last through because that’s in from saw April. like pretty briefly Sure. on response we that’s in we just touch hard And that quarter. demand the pulled in that, good pretty first XXXX And a year,

continue online. response Public a advertising, So, we great we’re to to the as going hard Storage pretty to pushing brand, continue on see

to drive properties. center elevated our so, seek somewhat website, and call that we as anticipate we’d And volume the then to remains

Operator

with KeyBanc. question is next from Thomas Your Todd

Todd Thomas

prior cycles between Thanks move-outs curious, -- sounds expect you you a different April to what prior morning. seen Good environment helpful. than cycles. any the you you’ve see like increase and an might and I It yet trends. But information this lag realize And move-outs? sense, just loss Thanks. is That at what in haven’t Hi. look of kind job is seen if for in though. I’m back

Tom Boyle

a Sure. to-date. And but they I we’ve on gradual move-in, at back environment. in as move-out seen what more XXXX, Todd, trends they XXXX came as look was I as think, XXXX were different guidepost, a looking at than

So, folks the as to of you given pandemic, which look we the kind scientific a material all different orders took seeing see were give place we’re already in mid-single-digits, increase move-outs. to quarters at and to you encouraged in context, of magnitude move-outs they decrease of the compare first as that in awaiting a this a research and But the and at move-ins magnitude did XXXX, that fact the fourth reaction, quarter the in you that it’s the are and we’re the in those quarter of and XXXX given of juncture, stay-at-home sharp which being developments. the

So, employment I it’s at perfect quickly a think fourth analog, to XXXX. honest. But, in move-outs back the in that declines pretty it’s the back on of with happen be hard of increased quarter did to it point and say

I of think, out good it because home staying are they it’s right about not properties. come fact move maybe is loss, their one drivers to are of visit our don’t the to now, as now move-outs, goods just properties feel at and but want the who job to relates also safety at our that biggest and customers security there the

point go move-ins to-date seen where have So, here. the that But, made fact we in any you we are and one, is noticeable right we’ll not down. shift your move-outs is from see which --

Todd Thomas

can going I call And forward guess conversions to you new not And customers overall? or needing site change rentals anticipate reductions you think on on, based the you pricing and either volumes and just Tom, that or is visits here, I rent for whether talk the Okay. XX%, then, that average? That’s mentioned, helpful. platform move-in across about

Tom Boyle

We property sure. actively the basis. pricing manage at across and do country a a on basis size Yes, our day-to-day level unit

would you as by is different around by expect, region well. as different volumes comments my being so, And strategy pricing region,

it where the And some call so, and pricing regions down, year-over-year, there’s there’s others is down pricing country only where in X% XX%. is

there’s that so, drive And outcome. well volume And managing as to a there. both, as order mix revenue dynamically in we’re good

Todd Thomas

Okay. move-in leasing large a there peak season, few But the net row. normally would months a in be in

to So, to you raising months? be be able lowering seasonal throughout bit rates, to basis a begin and pressure able Do little that expect be at right? spring You’d on summer discounting rents move rents higher take and to the off you’re and a all here.

Tom Boyle

Well, I to guidepost than think, promotion probably the realtime last this out different in window. looking strategies are on pricing, that basis certainly, year we’re our at on. as regardless of is reacting a a last at we all times year going And advertising, coming year. what’s what signals We thrown manage saw

to-date, Your that is already point the of we’ve to which with an activity that physical seasonality college seasonality, on to saw forward. college the e-learning pull and shutting month we the impact going seen down in students March, presence

As up. this how cases differ with may and come use into jurisdiction, orders we June, we Whether and that think other I is given things very would are May have this well managed month seasonal materially to stay-at-home year. and region of by be move determined the you’d see year, those

managing and So, think as too we may be early we’ll third what But, through do. it’s to play the real time much second out I always on too comment quarters. seasonality

Todd Thomas

Okay. you. Thank

Operator

with Rose Citi. next is from question Your Smedes

Smedes Rose

ask the noted for at of more kind would shutdowns just level if around kind this you with to competition was disruption I to place help wanted make put extend going the wondering, for reflection you property are that them. decision just guess decision? pandemic, that I And increases or and of that potentially the from that what compensation you might worker quarter, it you, and I just to issues the or of you the them back Thanks. second Hi. extending do in of level a that is

Joe Russell

thought the that talking was of range you’re the the term I take issues and at extended cetera. right things our elevate their childcare off, it comfortable Yes. tools to was facing, that we we It’s any do fund, their as thing et wouldn’t do compensation whether the near we of to was really, intend help could Smedes. base Yes, that felt employee overall they about. or had we to other of disposal in level that time

and fluid. the something operational thought to, mentioned that’s was though was we’ll particular, again, of care it quarter, strategies of overall we’re the even is applicability to we the that year, have for unpredictability opening we have into give that see of support I of continue of the we to this the because scope you we things and rates one the of critical skill I aligned constantly for taking and the that in again, going this second variety rest just the to So, again workers our pay that of type cetera. the evaluate, clearly as we regard. half I’ll go. our again, And frankly, et nationally Clearly that the things how and for a do to of in that mean, and be of do ability we’ll in think relative the do thing look we we customers, wage comments frontline at something additional part my compensation right have, tell

an but and to it that support time, the it’s right of to lot access, stimulus same and has even the things was give the continue will at of additional the unpredictability, the do. So something that potential some that other again, evaluate, at have environment a that even ability are everybody’s thought around are way we just in to knowing thing working we packages

Smedes Rose

happened, your just of or aggressive whatever properties of there, more I guess, those other a are approach to specifically kind Has still thing -- on kind lease-up. gain, sort at the you of rates stabilized pricing for behavior just what’s or the taken in versus available market ask of share that assets? behavior Yes. to I That I Thank sense. you. makes is mean, PSA there want facilities

Joe Russell

continue to properties those lease up. Smedes, Yes.

lowered those have to new pricing. environment But, encouraged have on volume pricing at level of of But of by, month lower albeit individual pricing lease the on they’ve of trade the which on to reacted We it’s again, through and those areas in those markets, going interest properties. up depending as the the we’re well. continued April, around many and

Smedes Rose

Thank Okay. you.

Joe Russell

you. thank Great,

Tom Boyle

you. Thank

Operator

Your next Jonathan from question is Raymond with Hughes James.

Jonathan Hughes

Hey. morning there. Good out

off, found First than yesterday’s commentary rate sensitive very Could makes of release. And them thanks be for average slated you which resume? whenever less outlook is more appears? of price I remind of the it stay, renewal length that I to believe in just your helpful. us those course, to think higher you your to a do are, or increases bit

Tom Boyle

navigating the what at we to this play change behavior rate to different changes. that’s Sure, months. be no there’s month cases around one is may And of into et case customers, are folks’ And that quite apartments sticky. length stay are terms et an that you the that, a a really through once of between some of we’ll year pandemic. customers of it a that homes customers consumer extension remained really using it between our for and right use is And get through short-term very of storage move average And storing for may that cetera. those past increases, barbell that’s goods, have business nature, that April. But of sensitivity in cetera. And mark stickiness as seasonal have the longer behavior needs, evaluate point, factors be this businesses, space in change term XX lots

Jonathan Hughes

percentage -- Maybe over another a and a been maybe I year two mean, customers of your there question. what similar for have years? over

Tom Boyle

have less than longer of a us have customers, XX% XX% our over us customers our our little and for for with longer XX% a been two. than little year a About of than Yes. of been with customers

Jonathan Hughes

are AutoPay? what And on those of percentage

Tom Boyle

good for XX% Yes. us around is tenant of AutoPay A -- base. percentage the

any in trends. AutoPay signups consistent. or seen change very any haven’t cancellation It’s We

Jonathan Hughes

be facility advantage of opportunities, you I’m size your with Have looked your pursue? flow, free revolver acquisition to one going the to enough for at and you in credit you more. take able opportunities and feel expanding to capacity you or sneak any have cash of what’s cash do capacity

Tom Boyle

Yes, sure.

very think, coverage. entirely on liquidity access cash million feel I uniquely our sheet, undrawn we leverage and capital balance revolver our and over low the with good in high to markets, about given $XXX current

the order to so, opportunity several have quarters. feel And very in in good await opportunities. fund we And that the we about potential we firepower next

Operator

is Your Kamdem Stanley. next question with from Ronald Morgan

Ronald Kamdem

Hey.

Just a couple that of very was helpful. quick I the ones. Thanks disclosure. thought for

of where the is can just, of how first can? in The business small level, about are in talk you Just high the maybe sort and just sort you extent faring tenant portfolio? this the the to that exposure they environment,

Tom Boyle

Sure.

the move-in as business customers for in over highlight pronounced small one tenant relates customers are consumers, So, we customers paying April. it are business They volume four and through last our to the of typically than And we more seen have a have decrease for component notable individual base. good collections trend is, that’s would continued a the particularly of month I weeks.

are this operational being in that open encouraged many stay-at-home. folks So, that’s the surprising environment, not businesses and and are to not fact given

seen in wouldn’t I decline but concerning more there, so. a have to volume anything point we So, move-in

Ronald Kamdem

business the customer of the is percent portfolio? what And

Tom Boyle

Yes.

that there’s our So, of use a variety different businesses space.

have We survey gives a XX%, And are sense customers then, that with of of XX% customers others that that business about use that businesses true business customers leases X%, X% sign more that users have something, appreciably indicate that we are us. yes, those And is and the you space. like customer reps so, of base, our -- more sales composition. which our by

Ronald Kamdem

helpful. Very

Just another quick one.

was there well is in or to this strategy this waiving in late change either go last just fees, late there down and as charges trying Is round of thought, sort X.X% terms saw there? looking no of with deal Just customers or you at and potentially it year-over-year. a do administrative fees did some cycle

Tom Boyle

sure. Yes,

years dealt and So, one teams we accommodation provide operational crisis materially have are with that impact that the And situations I to situations by well-equipped of over was did customer deal communities. highlight local the that things some several the with incremental would our those past pandemic. impacted for

And very operational happened effectively. happened but country, while really in this that’s geographies, case, our quickly that in so, stance pivoted the and to tight very team it historically across

And so, a customers some I’ve in that of we already have pandemic. mode the move well. about as tenant talked by country paused operation fact we’ve the crisis case working that our COVID well, increases move are, you We waiving second the across that through been team’s reducing those impressed into expect of the and would fees, help delinquent those and to as as by the impacted be existing some rate the auctions but to and rent with we fees impacted that really driver been highlight, to for and quarter And is that ability instances to-date.

Ronald Kamdem

if to color was called One bit additive just Minneapolis just little in a I got Great. this I that supply, warrant looked happening quarter more or maybe -- right. you provide was I in with that more maybe -- noticing terms you the call like was of I what’s could But, Q may. think markets there it that hopefully out?

Joe Russell

share market market of a significant is presence. and Minneapolis all, Ronald. we first Sure, that, have Yes.

time. the and And is we like us a doing So, three own to in that activity directly market new and traction see we’ve over into by well told, had the we for actually up the for redevelopment long-term additional itself the acquisitions, portfolio a some on market. All boosted about lease-up to inventory our think and investment new development added that units. properties years, good put very going there is that We XX,XXX in I properties. relative lot things. and last through ground of two that We’ve market hadn’t

a out to good felt call of again, product near-term. next see in will things place some. market, in of years again, properties like-for-like the But, happening new the relevant additional been in like we some feel our as, two we that one to absorption over and are any that as the But, take but well. seeing we markets as existing correct going stabilization the not it We’re of the development new our not same-store magnitude as was is there’s other it well because, the have progressing

the new pleased and we we’re future directly acquired I put scale market. built range with the again, market growth. So, and/or And into really the well-poised that either is that additive assets, think of for

Ryan Burke

We a Burke. want ask It’s to questions. number Ryan have analysts that of do left

free it and back keep queue. to to in then to try do feel two please jump So,

Ronald Kamdem

Sure, thanks. you. Thank

Joe Russell

Thanks, Ronald.

Operator

Fargo. is next Your with Wells from Todd Stender question

Todd Stender

Hi. Thanks.

give Just to out, rent maintenance may the flash ability that out How you ask. a on? that flush looking that? at trying rent so you’ll you are holiday? to Maybe is tenants, relief it you’ll it Is expectation it later -- question deferred, maintain receive that is that if a offer to just it occupancy, they

Tom Boyle

off, of Yes. it’s I relatively would that for first been a come in say, modest like have that. requests things amount

real different term of have may be types many business like blend bit other and than We and leases long little a talking have about a estate extends things may that asset that. and

We have month to month leases.

move their the out. have customers think and So, environment, of ability choices this and that to navigating they as about have obviously is customers we rent one the

work our little so, And for to bit impacted type But, or payment of customers pandemic. tools are by extending a variety plans with have less we others. this than applicable a different product otherwise

Todd Stender

NAV Right, buybacks, understood. the stance And on the your our of share then, maybe at decline? cash should inside you about work, looking at you to putting stock stock come look estimate. how Are as

Tom Boyle

from to Sure. it’s part two, we have regular authorization are Board of undertake; buybacks and Stock allocation dialogue. our the one, capital something that

plays us sheet different that to allow pricing use are stock tool buybacks bought We optimistic point, we to and this that back stock. have in will to in we pandemic At we allocate hopeful our could different could are environment, see how that, an addition the business to another this and have that environment balance And portfolio not acquisition And attractive a create grow out. which in capital. manner.

Todd Stender

Okay. That’s Thank helpful. you.

Tom Boyle

Thanks.

Operator

[Operator Your SunTrust. question from Instructions] Ki Bin next Kim with is

Ki Bin Kim

want just comments to earlier. I a Thanks. guys made you couple verify

of You -- been April, -- yet. included was haven’t at XX points, units basis said April auctioned up some occupancy that but the off that end were

it, a at standpoint, year-over-year? paying occupancy look you maybe if look how April from So, does

Tom Boyle

you Well, have auctioned occupancy, April the basis take about year. out in those finished that may units down XX, we if points been previous XX in

Ki Bin Kim

quarter in And did of X.X%. you rates, terms trend April? down ended Okay. that in first How the move-in

Tom Boyle

average. down I’ve in It’s range that Ki on already move-in of of the terms around Bin, on different commented rates Yes. markets, by different XX%.

Ki Bin Kim

Okay.

about for was I Thank Sorry. confused me. All volume versus That’s you. it right. rate.

Tom Boyle

you. Thank Great.

Operator

Mueller is question next Mike from with JP Morgan. Your

Mike Mueller

spending Is of case amounts? going property to terms for or everything. that be and the In you there planned budgeted the the that capital about talked to upgrades disruption change any any to notable

Tom Boyle

ago lines we reset so. $XXX something looking $XXX to So, obviously were where or along million spoke that what the a And at about that we yes, of from have we reset we Mike, million. quarter to

shut the on sets approvals from going have the doing Property there’s we’re of next investments from down some of that along along the we align to the some have to a with basis there bidding permitting for come X few initiative. moment, one Property months, think go in around you’re fact down many things much One the properties even more of that and programs through launched and/or their of of We’ve standard that based Tomorrow what looking own projects Gen and/or at into what tapered is, mix So, our number this XXXX strategic scale the those a that carried as our into our a transition of continuing Tomorrow -- be approval reduction. year at beneficial into knowing standpoint, that arena, we’re when we capital to call with that cities going of we’re that delays lines, levels coupled led in the staffing through regard work seeing with. to we the and

was component. that one So,

of functionality intending effectiveness availability better much predictability in to we but other that but makes going of suited not related sense more to year, things even do not of only vendor way into or that be cost think XXXX. of do going were we’re also properties to on we through and from it a to standpoint, based A any anything else, number just this

always we we to that move-ins are And continue customer can it repairs, keeping and anticipating occupancy. we will side properties still degree everything the highly million to year. do high ties high to $XXX about that things that, as of our flip functional, facilitate On that do, of doing we doing will happen this

still also that still aside and also relate are that vendor We think LED a to to that doing do energy in things upgrades friction can would we efficiency. this few environment we

We’re putting solar on a number of properties.

for So, that’s expectation really the our what’s on to reset XXXX. led

Operator

Your Green next from is Allaway Street question Advisor. with Spenser

Spenser Allaway

been Actually, all my you. of questions asked. have Thank

Joe Russell

you. Thank Great.

Operator

Your Decraene from Citi. is Parker next with question

Michael Bilerman

here. Bilerman Michael It’s

So, just couple questions. a of

This but And work way over is to in? term. Have given certainly strategic. going and is the a about a near-term, live more if product? going play, suburban shift, population pandemic there more live, the urban The thought be both your shift to of in demand cities we the is even change a of does that could of longer change first how certainly accelerate, it but house part out into modest you dense for living, of the it dynamics

Joe Russell

and have tell too X,XXX Michael, sizeable being Yes. through. benefited does to how we’ll yet, one locations, play suburban the both that related. see XX got urban It’s We’ve a versus portfolio other. states. is the Obviously, we soon benefit if with of

on, not desirability to a that as through the environment in maybe and we’ll impact assess dramatic virus know we of that we’ve direction standpoint, population may It’s just of got so something in you impact that major than that urban yet. out more sense again, the Northeast, of again, don’t suburban more or that seen And you a tentacles see But, been from, far. little trends most Tom another one coming meaningful, as through play continue more But, frankly of have from lockdowns. health make many of can those standpoint create there the desirable mentioned, and really plenty where how what we bit So, kinds from a this pure in are COVID other yet impact a type standpoint. shifts might think of that to and has see the I mentioned a regard. communities science that’s because to the a

So, play very continually we’ll we speak. see. as arenas both we actively, in And

locate continue in to markets. where a to of point We’re to use making where even both invest demand. lot properties, good can development We micro basis suburban we data and we decisions, us urban in see on and very a demographic think

Michael Bilerman

And you anything about some urban think markets. more pandemic you during facilities yet? extraordinary larger this into Is glean I those shift in the from made there can that

Tom Boyle

XX wouldn’t that’s term living customers’ to of been this down And the history. suburban in last navigating unique activity past not over to indicative trends tough. their weeks business. ex-urb bigger very longer notable, dealing use Because of it’s X and for road I their that as both to they’ve could point weeks It’s as navigating the be pandemic. urban I’m The what X, what X to it for crisis last and Michael, think the term X been isolate based really living. sure been X, tough we’ve point the this if weeks it impact, has six anything longer our affinity versus a weeks your X, towards will XX, be years relates to personal or as on driver with that people the well

Joe Russell

urban based it’s other in is, correlated think, I to we highly is, whether they’re either the assets, think and in competitive markets thing both, is or design our reason, data, and based. build again or demographic it’s And larger invest the and which Yes. again again, population through suburban

So, just weeks largest as as doing some even they’ve historically. of our the properties few last done very well through are

Michael Bilerman

Right.

Joe Russell

to So, it’s tell. too way soon

Michael Bilerman

the certainly pressures then, revenues talk rest of given is in your high--single-digits making that NOI the you year-over-year operations, last we’ve recessions terms in down clean, your for base early was look just detail about about same-store the so XXXXs, to and sector NOI investments the press And the for in to impact? the of in thank facility you same-store second basis. question safe Q the two employee year, and being self-storage and you’re negative through, Can and revenue keep and on If you on the the and cost release. in gone expense the the

investors economy. prior for should X% goalposts of you decline? year-over-year about drag? than we these a even -- go double-digit expense ‘XX’s business a the given by it think Should talked be much in and we the complete that on stay-at-home to was mind should up of maybe X the be in a be -- our rate of what quarterly given type timeframe, basis. impact think, it If the decline back year? a of just the about at your quicker where gearing Is halt How a recessions, orders ‘XX, down should I to terms you the all will high-single-digit, to a end

Joe Russell

of And all, play know through. it’s times”. mean, direction Well, you Michael, clearly know what first guide, even this don’t could ball. don’t “normal the crystal I well, we we in

change, You’re how a to shock claims this be long mean, for to I are ugly I and million. down mean, massive to base, dramatic it economy. jobless XX right. predictability severe it’s has it long GDP how of don’t kind it I and know going the could a very is at have been standpoint, particular. I play to take what in from that’s know customer that impact don’t broad will through, on going correct. growth our quarter a entire

see. we’ll So,

Tom Boyle

not to points that I’m my really analogous to Joe’s comments. to obviously And they’re right Michael, benchmarks, point sure historical you and the earlier Yes. but

we some detail line line by point. to seeing provided we’re what this as at So,

science we try As what which go the around and a but here. are, we drivers as and we what color you to context move forward underwrite. be by driven through And, XXXX, decisions difficult from to is provide lot see of of the will the political we’ll see we

Michael Bilerman

I the know, that’s guidance the the on about and you appreciate questions and taking No, all Yes. details said, I provide I don’t impact. call why

I frame. just put bit negative. You that’s just at I number. little was could goalpost least know a what how you to negative trying Well, didn’t a about there did whether out

Joe Russell

Yes.

between of kind it’s quarters, so. X% and X%, eight For

Tom Boyle

Right. Yes.

has quarters, been X% year, -- X% eight exception X% is I third between for NOI last maybe with quarters. revenue eight probably last last So between and X%. of think that quarter And same-store growth the and over the

Joe Russell

Yes.

Tom Boyle

not over the certainly quarters. that So, that we eight in last we’re in were environment

move-in volumes. seeing We’re decline a in

been in performing well go we collections remain have point, are And where but tenants to see existing from April. they this solid Our here. at

Michael Bilerman

Yes. Thanks for the time.

Joe Russell

Great. Thank you.

Tom Boyle

Thank you.

Operator

Jeremy next is Capital from Metz Markets. with BMO Your question

Jeremy Metz

Hey.

on you one allocations, follow-up. capital and guys both commented Just acquisitions. quick Tom, mentioned earlier Joe you

the stock buybacks given marginal somewhere. a in about CapEx saw there that reinvesting versus the your just the had about You you’re just we was dollar pullback how wondering the Q portfolio, there outlined thinking program. for I existing question in in

Joe Russell

of always, at alternative. point uses guide a like you to, continue an assess are we’ve Jeremy, The buyback on moment. to talked the already the We’ll how into say collectively put those to, I to anywhere or going properties been Yes. at it. the that where’s stack of forth. allocation it close other is owners horizon, and from the to four Tom likely, a again, that against, decisions, last I to expectations in our as capital this though, mean, thing itself hurdles alluded is, from X,XXX that’s years, number lot with investments that to of benchmarking impact of put the have had X,XXX capital they always couldn’t stock a over potential are three underwriting to okay, that, sector to it forma pro -- has not come ranker, we something that’s

direction, So, see for that we to we’ll that big but to other like would allocate be lead that anticipate but opportunity capital an corrections will us this to too determined.

assess to through. thing So, them capital options, we’ve continue plays different this got allocation of we’ll a variety and as

Jeremy Metz

No, Yes. right. that’s

which I recent versus internal, the big think, through trying years. made portfolio have a I on high-grading just focusing guys the you externally priority think to was in

So, I guys. Thanks, appreciate it.

Joe Russell

Jeremy. Thanks, Yes.

Operator

questions call remarks. Mr. Ryan further the over Burke back I’ll closing are any turn there time. to at no for this And

Ryan Burke

to everyone certainly to we joining We all continue for environment. us hope through of as today. best you this Thanks manage for the interesting

Joe Russell

Thanks, all. Thank Stay safe. you.

Operator

gentlemen, Ladies call. today’s concludes Thank this for and participating. you conference

now You disconnect. may

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