Public Storage (PSA) 6 Aug 202020 Q2 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
Smedes Rose	Citi
Spenser Allaway	Green Street Advisors
John Kim	BMO Capital Markets
Ki Bin Kim	SunTrust
Ronald Kamdem	Morgan Stanley
Rick Skidmore	Goldman Sachs
Mike Mueller	J.P. Morgan
Steve Sakwa	Evercore ISI
Todd Stender	Wells Fargo
Todd Thomas	KeyBanc Capital Markets

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Public Storage Second 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. Ryan, you may begin.

Ryan Burke

Maria. you, Thank all second to for us joining And XXXX of earnings our quarter call. for thanks you I’m here on Boyle. the line of Joe Russell and Tom

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

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

Joe. keep As queue. in With After you we please usual, do to to ask it jump back that, to your two. feel over limited questions that you turn free ask two, I’ll

Joe Russell

for joining And today. Thank thanks you, Ryan. us

we together months pandemic, like ensure acknowledge Public team customers the In activity have for the Storage now during customers, Before that, environment. partners as and been and our I questions. our for continue full four have of moved has of this the we last to open and along to thank would in come the a this of volume entire open self-storage. call X,XXX safe I like over as to our I operate of call a platform the questions, validation would with first property resiliency strength With portfolio. Clearly, the XXX,XXX to new we business

Operator

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

Jeff Spector

maybe if we start on comments same that you the at of better than is and just Great. I very last cautious the on point, your I second quarter is to you together? tie comments the I’ll first compare those half were results the initially call. the strong you. volume the But, team I time, guess, in Thank Joe, mentioned, the the expected, think as know year. question can

Joe Russell

question, and Sure, as Jeff. to the I There’s very pull of number a we’ve no the of we’ve crosscurrents. that obviously noted, coupled determined able amount been portfolio, Yes. volume into with focused been on

back of all of sure us were going step the four the we and safe after four suspended phases. of operate we right in did saw and university April, a and of protocols, primarily And part degradation properties. early rush about to entire months our down secure and auctions through different was that shutting think early. we think you college of as and if during the ensure all So, kind to continue came bit we made really initial safety We able things the little to that pandemic, our the last of a to an through environment demand, March number pandemic,

through tools again the again the next advertising suspended around not environment. bit and on began And focused the see customer funnel But things degree a more a we to up after to be opened some then, going into different were effective. we demand customer to quite to put second proving became degradation. of actually to auctions more a long we focus. the be of rush. of phase, So, started bit even we phase, But other reflective then, we on focus of saw a practices accommodation that, top that and of We

after started and phase, that again, demand even to ways volume. and a more in that, benefit again So, along continue we we move same in see of lift residual focus which put on we to those but the In continued were in stand month lines then portfolio, the gone draw back to July, to very to the finally, we’ve of outs. phase And actually fewer the customers positive we impact a able most new move through month while the month far from recent now auctions. seeing as

again, activity, in both rent we’re And parts starting and lower on move-outs. many the to very have the portfolio. or see reaction lack move-ins We to increases good of reinstituted of amount of

continue half the the part a number bit we this have level literally as many of occupancy. give a to see our of we’ve dealing resiliency little in I yes, demand, I’ll pressures different and you speaking to overall through the more levels of with walk record are year, a pleased color by in half high on bit Tom do second why we the year? markets very second on noted, So, detail. drive the overall, little But you and been don’t to more of ability Tom, of that

Tom Boyle

Yes. Thanks, Joe.

moved started quarter operating post-quarter. we second mentioned, have metrics, improve So, that the and as we through to continued Joe as

But, around I can was spend question like. you around of discussion think trends. if the your part we time So, same-store more there, revenue

those operating quarter, the throughout same So, financial and while how deteriorate. saw to metrics pool in growth revenue store metrics the operating do financial second translate improve we metrics, metrics

up were basis same X%. store if So, was store down second quarter the think you rents into about XX points, same aggregate in about components, occupancy

for Those primary accommodations you performance to down the reasons. in related were pool down same second fee your Fee negative quarter. quarter. quarter, for relief. in were that collections income and store X.X% the customers’ leads it two Earlier in rental customer collections in XX% the So, to requesting the fee

collections frankly quite were through requests. And those quarter. the But so, did the grant, of vast we good majority

collections about July At a on lower seen which likely continue year-over-year collections. were our because moved it XX% this we as fee to is customers point, so, at that’s second we’ve basis we And sooner. paying And through least us through lower the leading were to quarter, fee anticipate continue.

that second So, quarter. was the

about X% we were other think highlighted that the component X.X% rents second quarter quarter around in on down just second your average. of ended I the question down contract the half, rents. As the on We

of starting still the clearly, we’re in rent we’re collections. lower year-over-year good growth And So, third fee a lower quarter seeing because collections position.

Jeff Spector

where helpful. just Because bit seems Very I confused. a XQ? confirm, you. follow-up could be this one I seeing half think I’m like… that’s are you than we my to Thank second but that worse the guess then, think,

Tom Boyle

quarter. and highlighted it’s we half same-store the XX-Q, second is MD&A than the We will worse have which think the the second in likely performance revenue that

Operator

from Our next of Citi. Smedes line question Rose comes of

Smedes Rose

that kind I to I was -- Does historic expense wanted just category, correctly? levels. what debt in that into tie is just you interested talked you bad was talked to bad are you something line or there that about I’m into debt don’t in granting about Q just your maybe just just or of feel fall customers understanding so a necessarily relief, not

Joe Russell

No.

paused of did stayed We’ve time. quarter. a that pretty customers work the have that it’s simple. had auctions us for time, think, quarter begun for We through paying period to we We good. had really earlier. us during customers were through of longer were that period the with while trends Collection I a

today, the sitting is XX here year-over-year. with you as But, debt points sit now, delayed quarter, frankly, we the right was what written activities. the ended in And so, think receivable, second consistent it little about bad quarter, year-over-year. auction of was was we’re And away quarter, off a actually we as basis the down occupancy about that through as pretty from

Smedes Rose

Okay.

Joe Russell

important the on rent And to spaces a of I saw and a good collecting and the them. to we team validation and And you good Stepping that through customer a back, quarter, rental it’s basics obviously think, spaces activity focus our activity. reaction saw team focus rent. are

And similar there has support look think, economy, government There’s credit to work. finances. we suspect other or a broader otherwise, that for or bit industries, also the government seeing collection through industries trends many the quarter. government stimulus collection support individuals’ as I throughout done is our individuals question as across no helped many are the trends we good things cards that

Smedes Rose

Okay, follow-up. a as then, thanks. just And

you’ve make to see you’re that and continue You that purchasing. things -- acquisitions

Just is kind pre-pandemic, versus or of opportunities, wondering the ability the on if cap you it guess, activity? I about are compelling better, could to of is you now what’s seeing just I guess your rates, maybe just manage kind it it speak of acquisition to sort what

Joe Russell

we a make. things of There’s actually of to attractive And toward We Sure, had, those attractive. had the prior an a fronts in on handful deals then, question, a and assets market of March see continue pause investments settled elevation quarter. the to be Yes. earlier and motion at been pandemic, already down. had that still different went closed us badded, April to of thought in part the to just again, began pandemic, of and/or market We variety through the that were return We we bit no that the timeframe, for continue mode. today conversations into particularly to many they Smedes. beginning basically of very on investment the deals

What for a that in capital the commanding value assets. of be of and/or presence. investments. consistent round look the on or again, of those for stabilized assets looking cap alternatively stabilized we’ve sidelines of be the types rates, So, done part, assets that normal our opportunities, parts are we would think particularly that types may for, still our out is not without most pre-pandemic, There’s lot around markets

So, a that are they get for you bigger yields the coming They we’re be of assets And reasons pointed lending more to see few on confident up today. to the the that constraints. vibrant, got, few which we’ve of way are of some some we or little becoming are There the basically not got, a of that And conversations making not may under I’ll we’ve are opening market to do very we bit we’ll owners that with tell the in either a are that. expected. had And out portfolios probably still back market, motion. as release, seeing press that more. in again, see those more

come down positions not what’s no seeing, going are most of where way across holding also few to forma that more and and with those coming seeing that have through looking land have taken positions. a for again owners are particularly rates markets, opportunities of maybe with taken are pro as stages return a the various entitlements up maybe well, We them expectations out again, land on surprise, through, come

many busy in play to quarters. is continues team acquisition this how see of different the for we’ll looking at coming And types So, us opportunities. the

Smedes Rose

I it. Great. appreciate you. Thank

Operator

Advisors. Street Our next question Green of Spenser from comes line of Allaway

Spenser Allaway

just increases. on they rate pre-COVID? Maybe of just to you quantify color and has more or would the follow-up you. the what a you Thank provide rate been sent portfolio now to degree same existing have out resumed seen customers around whether perhaps percent that Can the have increases

Tom Boyle

Sure. Thanks, Spenser. This Tom. is

quarter. So, August second we Xst. on tenant Xst on rate as September mentioned, it They existing have test did we more as to the July did on expect increases resumed and really resume Joe Xst a resumed basis Xst for and pause on And since well. on broadly July

the terms those country, the broadly country. across of breadth the spread increases of In it throughout are

a to trends jurisdictions July of rate though understand magnitude the But, on prior compared increases existing the headwinds send tenant during of we and is local them majority able country, there to as lower. vast the there. years, years did the and encouraging on in did try we look of to test to are and we we’re as consumer state there. And to in prior forward, The that sorts the Xst we to related basis regulations increases. price-related same behavior saw really pandemic, sending So,

increases the on long that the will basis be several lower those anticipate would a regulations year-over-year longer, on in next we so, depending place. for And of the months how or stay magnitude

Spenser Allaway

Perfect. Thank you.

Tom Boyle

you. Thank

Operator

line Capital comes Markets. of of from Kim BMO the Our next John question

John Kim

could were ask accepted, that you. Good percentage average if Thank increase? you on Can around maybe increase? I there and the provide follow-up rate some ground just morning. a What

Tom Boyle

Yes, sure.

year-over-year In with rental of terms a accepted, Storage. acceptance I’m on and percentage trends we to activity But good basis, of as would saw into get details there not the relates those there. Public to going it continued I say

because of single-digits In increases. terms a bit year, I upper This just we’re highlighted to that, the I’ve little XX% that things of for Spenser. typically averaging type below magnitudes, the highlighted

on average, bit a that. lower So, little than

John Kim

and also And provide either wondering variable you potential if more revenue then, expenses you being could costs? savings second the the the pronounced or commentary mentioned, half the decline can, in side, from you on year. if of marketing other I’m any

Joe Russell

that you elevated providing hourly saw of rate to boosting Yes. different payroll dealing again look of the at with as had was Cares with. or workforce childcare, second number challenges support of our within take we quarter, Fund to at we opportunity to accommodations costs pay well more to and environment tied part ranks that opportunities begin PS a were cost in again, the the the where as I’ll reflective what large our employee was different tied PTO,

So, quarter. rate end the end the increase of did second pay at the

cost elevated to potentially then, eye see was see, the then, of you’ll about advertising the and because remaining quarter. second of going cost we’ll So, lower saw come at keep which taxes promotions in also, that looking the XX% the with -- as second you we other rest lower property moderation an quarter. year. some the the down payroll, and X.X% is at thing we’re taxes be in in of on about the And And

Tom Boyle

just I’d good that from quarter. And line the in details we growth Yes. and highlight our But the the second XX-Q. there’s anticipate moderates line would MD&A by pretty

Operator

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

Ki Bin Kim

start existing and the time, three period if mean, big impact. rate bigger for it for really right? to program, I back stop program prolonged starts bleed of results that impact, it’s that to a into a a stop it it understanding see when make going doesn’t increase customer Just you that’s If you months, to my you

like, curious, of second in program, lack going that change and the from how forward? if the just should So, contribution, stopping was will, what you that I’m quarter

Joe Russell

Sure. on Taking month pausing a impact on for existing in-place step back, meaningful any tenants have will rents. a

paused as not a we of And sending second was tenant the quarter, increases. existing several so throughout cumulative months of there impact

at resent only and and of magnitudes, regulations we’re did during sending highlighted, of doing environment. send are that things mindful second them in half, are quarter, lower I the we the given not second some not increases As those we when they be to the the

of think down from largest the the square the rent component the second quarter, that end you quarter, and quarter from we disclosed that average foot which was clearly existing quarter. of little saw the to tenant rent the quarter second was of second down, quarter contribution you per the really rate X% So, end increase. very about Rest also throughout decline roll no of or trends which rate first in occupied to particularly as second contributing contribution were trends the move-in rental early move-out it the our factors, on on was that in

Ki Bin Kim

terms out sending in assuming, a lower at even should moderate, because I’m that forward, of letter though looking again, you’re And rate?

Joe Russell

same be of rental Yes. tenants out. will We the we level rate from shouldn’t declines have them sending existing because

Ki Bin Kim

it down, probably back And going I’m return you that are? assuming fees something? start to Is year-over-year. and am XX% just if fees color to late just I that I on charges Can what And operations normal, missing pretty back normalize a or or to quickly, so the late segment should just were little more admin give those think fees?

Tom Boyle

Sure.

fees So, is and are late the different at move-in. the several charges charged components. break down administrative fees One components of that into administrative

a And seen so, volumes to see that admin little And item trend over fees down, that be move-in down. are you’ve if those on time, line move-in based going you’re will volumes. bit

see we second that So, in quarter. did the

related and lien the sale to late late component of The it other largest charges fees, are fees. lien and being then

customers their remained fee we reduced as trends fees So, amount where is pay fees the the collected improving rent through was of requesting request saw had was April, of The about was call and actually first collected and customer shared quarter April, month month some move fee that either of last our say that the I consistent somewhat customer we the composition But doesn’t That’s of as the time, during of the majority down to would I accommodation, or fee granted. relief. majority July. through of the X% into if second In May, driver driver changed their the rent there the customers we the a accommodation, a that of account. XX% on in quarter. charged majority fee the the the that of we fee through in on of collection sort quarter. of relief relief. part moved

moved June And trends. we received we that through in by better July. got down the driven requests and collections collection primarily As fee the of such time amount by quarter, that’s collection trends XX% into we that improved, continued that the through was diminished

we how can to way. of trends the the remain In will much call. hard future that anticipate It’s terms into fee

months would sat year-over-year think move a as collections seen March, would of of like have have we it the I there’s there at trends, whether through told and And quarter. asked But through You it number we would you here, does environment. having be August July us there’s and month even into don’t here part highlighted, seen get no that. in factors the as I for as it’s work. meaningfully and of I bigger feel And question better the now, good it

store to play potential revenues see it’s the out half, so, third lower through we certainly continue it a in the of And driver because same second quarter.

Joe Russell

Bin, July customers to that continued are request again as even even time. a level Tom fact just little on and And paying more the coupled has customer bit of quarter said, diminish, Ki perspective, through with through

optimize to the quite only been been in environment a platform pandemic not behavior like an customer as strong. validates it’s collection this, the been process which through whole? our but the has able has address to actually So, well-tuned the And way it

Tom Boyle

think, the from thing a shape business demand same-store the validates space. customers in the standpoint, for a collections our thing the well fee Yes. of And great lower great as clearly, as for in customers’ revenue our isn’t value but using self-storage a it’s and I

Ki Bin Kim

one mean, can and fees as are Right? that time, paying people on a argue I less late no bad thing. yes

So, of the kind that’s that fee impact? or thing, I’m a is I’m assuming there structure fee, making lower good a assuming fee, then lower, right? right, probably administrative year-over-year So, mix that -- of bigger the signup the now that that’s is

Tom Boyle

and fee, that through paying and on It’s seeing August. late customers in July is time, that us it we’re

Joe Russell

activity had we the One I other is, the auction second mentioned add of thing auction as quarter. activity, to a phases, on paused chunk through for

again. where we’re a auction are We being have But, actually basis few auctions back. It our quite limited. held is about do of for municipalities We XX points our overall occupancy. overhang doing only accounts

So way And that auctions. of at of to that entire are our we're the areas able there's of number been where a around very had optimized that parts calibrate be engagement pandemic, collection do too talks meaningful even has customer And the but returned. continue particularly an process, auctions, in our certainly that process. the back the we been of hurdles portfolio. the us, do part limited basically business auction environment beginning the to to we've that we chunk business to where to We're our many in by of in unable abiding efficiently,

Tom Boyle

that of And with back. I'll move that grasp just Ki it as got it that us we really Bin, real the re-rent to space allowed the to through quarter, maybe is as we benefit provide onto

quarter the up how XX basis delinquency XX was moved average earlier again, points there. about ended We we points around aged spoke up we represented through points. occupancy about basis about really XX the and as that so And quarter, basis

continued And our of points. basis. points it a up delayed points activity. about So at XX, improve basis basis XX was basis XX really again, July up net call occupancy impact to of auction That's and on XXX

as underway, to with that trends higher improving through that fact move-ins re-rent really basis coupled in that XXX points highlighted move And to and trends we move-outs, phases occupancy we as that's space about up net, continued allowed different July. us the occupancy. move and So delinquencies our Joe the move operating related process and through and was lower the

Operator

Ronald Morgan Our of Stanley. from comes question next line of Kamdem

Ronald Kamdem

is seeing hearing of into out pandemic, me. urban suburban from a question get ones lot density. two seeing to migration would the more a properties areas you of and say And sort understanding. the We're Just less quick bit better that? about your California, true? your are than really, our a portfolio trying just the York, maybe or little activity of of suggest that's is something in sort better One So with New suburban that sort in better or anything like whereas markets they’re

Joe Russell

too areas. around if really how We it's track both are Ron, look tell to We properties urban. versus standpoint material from there's to by a a at performing. suburban density be shift going and longstanding soon population our

a over at soon demand the it's of quarter San way You kind on we've the not the is again, York’s has But mentioned huge are last basically been New any Ironically, of the moment, same. too stepping actually Francisco York. New beneficiary putting to we label versus tell. back or seen so. amount and suburban urban, that a of

home. that in to suburban We of customers too diversification by the need of a it's of thing in pronounced whether demand to coming in I all soon from are home And to and standpoint markets in about us, the We see we have many stuff virtue again, our live, putting going And markets, One impact see been impact. shift choose a across more has see tell. more markets. we to And continue both to will the they're from more patterns where from that, space not just they're the urban facilities. because that way at office good overall they track is people or work they pandemic. our guess, traditional lingering our

factor suburban demand seen, that additional both been in we've markets. and urban that's So a meaningful

Ronald Kamdem

just in occupancy you've already. what mentioned second if But just change is don’t operating the the at was then July I sitting what question just it trends. the on Thank And pricing? know and you.

Tom Boyle

through actually volumes on July. were moment the of Move-in Move-in month a get operating better X%. down July. an ago, little bit trends around Joe increase just I delayed but Move-out volumes to I in trends, as that note volumes about activity. And basis were year-over-year. more earlier. XX%, auction of XX about months. that saw hit we on XXX basis would were context mentioned related XXth, operating July, just the I'll occupancy was that continued our down Overall, in occupancy points So up highlighted led about which I to is improving in points a July

Joe Russell

One would same add quite has our portfolio, vibrant. in on area I also non is store been particular

amount We we've acquisition based have a seeing for an a which of new from seen activity, opportunities a both surprise development has we're been fair benefit customers good standpoint. inordinate a quite to And trend good a move in. things move-in of number or on of amount

moved XXX,XXX in So, I last months. four we’ve that mentioned the customers in about

If done XX%. and in, pool and customers up trends so this good across new and the move-ins have XX,XXX standpoint They up we that haven't they're added markets. acquisitions portfolio. pretty the performance is any The developments all quite environment. look and non of dramatically. feet an growth XX.X continue QX and to well where total square moved into into the our very do acquisitions absolute both fill same very or opposite in ups seen filling and that backwards redevelopment, about million That we've Frankly, non those going see good same our we you at from were relative of store builds, portfolio XXX,XXX to tractions portfolio. Continue continues occupancy of came just to see store to

Operator

Rick Skidmore Goldman comes Sachs. of of from Our one next question

Rick Skidmore

on Joe, the thinking just fronts. domestic up should we international. comments like be to a your has your that focus right question acquisition follow It the way external versus sounded more on about Is been on growth previous front? the

Joe Russell

over continue to wouldn't over to the Rick, many both There's in any U.S. long-term have outside going United right differently. within months. going We've in to few focus States. beyond look at question I the time, everything the So the on here focus we're our particular and changed opportunities has assess no look and put on States. markets, that we we the always will United as over continue last say But that's

Rick Skidmore

you you're the in picture projects? bigger past, standpoint what pandemic a And seeing Can about see from manifest you slowed Thank as supply then markets? XXXX. growth new about for your you. you've or growth fading And one and that In are question, growth developments talked itself talk supply Joe. the starting financing to in just supply

Joe Russell

quarter, at less. to supply likelihood There talked that $X to think would doesn't than deliveries Last those to into say it We to was $X deliveries continues or XXXX. closer billion probably in level taking the amount delivered so plus be be is of predicted, or which or we about what minus that's XXXX. of to so still point that healthy anywhere less XX% would to anyway any There or year billion this relative appear place. be slowdown XX%

inspections. cetera. Again, have slowed own approval through of et permits, final processes, some Although, surprise, occupancy down cities them are taking whether many their longer. No

of healthy think a era. saw of level kind in we you into So, the of supply. still XXXX or that there's goes so amount It supply

what loans. acquisition, and of to Now these There again, require that either move would beyond, hurdles are expect, on to look development, out I on to And forward that funding and/or they more the many for or 'XX likely be relative construction going will I investment excuse their looking me. around to mentioned again, any any partners particular particular earlier. constraints developers based

markets to of likely the bit pointing the we've dramatic last welcome down. that it another couple relief, I would might over heavy supply. that particularly to see, know we're that in been again, a be hard how have leg been years and So be. new But don't with

lingering and leg down. beyond, another but the we're into soon impact tell 'XX see to likely So, again too yet to

Operator

J.P. from comes question Our next line Mike of Morgan. of Mueller

Mike Mueller

in Just wondering, in comps down versus XX%? XQ rate year-over-year how are move is the July

Tom Boyle

down the move-in of So move-in down was over X%, rate volumes a X%. about about change month move-in rate little down July in X%,

Mike Mueller

the curious of I’m How's business. management pandemic? with that so the expansion past trended third the And party over months the or four

Joe Russell

we was quarter number of in the added to the The nine. platform properties

going are to through still properties XXX continues now. phases have We dominated various construction. grow. of It's that properties The by

Although, coming platform we lease-up stabilized and as seeing portfolio also are the the well. assets into and/or

quarter the what early So, it And in platform, down, bring opened healthy into degree, of them. on we're We arena we to again as we to development. good is the new opening the not two bringing the to they're out actually several into we're as quieter the a we’re different of going it. we're and acquisition properties seeing whether or add unlike some have The through a new little and month for kick we're to phases portfolio backlog part completion more saw in activity. continuing would continue settled pandemic. and and But things the

Operator

question next ISI. comes Evercore of line Our Instructions] Steve from Sakwa [Operator of

Steve Sakwa

don't be and fees seem the you your down. talked this, what that just process might I is the maybe points your that you therefore, maybe over then, you is very that of between talk them can months, talked anything your differences kind delinquencies unemployment occupancy that answer But insurance differences. bit I'm closer of differences, collection that income that the number basis said points only on effectively being you helps as there a will, points. would from you out, inflated, and are basis basis peer. about with and about by or little came of XX delta? auction yesterday providing there And XXX if folks figure and to one or peers to to to last XX a about your wide helped around payments to four the if XXX auctions. know was cause the keep front such the And more the a difference maybe really lack large But And the trying just have are into down

Tom Boyle

speak lower comments. that's this. I the are we what the see I'll of reiterate we It's of spoken the I industry. better on trends which I'll and back about what collection reduced seeing fees. think we've did others to auctions, driving as move some that's backlog. also, seeing, obviously amount can't comment in to we're But conducting

customers with we would second better that points leading So, to combination the sales, on worked aged as lean throughout well different as of XX delinquency. I conducting of collections ways. quarter highlight basis obviously

move second about form requests helped As I the a of having as time. tough relief to And the of that those of some we really the through to second we're receptive started very X% highlighted, we requested But customers were sorts and as our highlighted, as phases those better customers the quarter, trends quarter, we as started move in through quarter. of to we different Joe moderate see there.

through quarter, alone the And country folks support helped second think be some second a And There's businesses. that business do your quarter. is We're I unemployment in our highlight collections likely government benefits support and in don't collections. good that comment checks. across through the I which one. $X,XXX many the got to I or question no good think we're the it around think

were listen you I say to think they or if to companies, to banks credit likely would something card similar.

an that we than So that and impact I if what as down there. some industry is ultimately, see as components Maybe that days that's is snapshot paying stat of going our look the we of from it. covered But others is about and I our customers on resulted different support most just XX could XX, have there we'll us at the trends that who forward, at more just certainly And rent stats less support the well. and generally you in trajectory are disclosed around, in, collection our highlighted XX%. are June particular earlier of topic. one receivable this on think customers the

obviously paying space well. So, by that in those accommodation it. the receive and as for appropriate impacted them their storage with we're customers the make been they and to pandemic are good And sure have that with value working working finding

Steve Sakwa

on maybe twist a then question. Mueller's Mike And

spread he you you against the those you was asked rate, know rate, move-out the the July? it do quarterly X%. you But about kind think XX-Qs. of look I in you or said move-in know I move-in rate down Do which idea, at July have what that in the the provide if was July an

Tom Boyle

that right down rate and could you rate I don't X% have that tell was the me. front down out number the was move X%. move-in of in year-over-year I

to So rate foot with if relates up important at we good have that's Steve. that but my comps. can I you, year-over-year per to trends don't, follow as fingertips, square it

Operator

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

Todd Stender

look the with potentially underwritten? your kind originally current the we of you're that your were of as your compare maybe period at to to just the slowing developed trends Just year. that in newly looking, backdrop they how to it’s for compared you the second properties two you quarter up expectations opened half lease Can stabilized forecasted a occupancy,

Joe Russell

not maybe end stabilization base, typical on up property going three no bit the the lease lease back It's we of through, might've at pandemic. with, that periods would and stability different to only occupancy, now it to frankly the up Well, look which years maturing of and to how et at four of pre been you're a little begin from than Todd, day, customer or see for you to traditionally is, go up take perspective give at I level just the cetera. a

different even and to been at is in to to et get I've So period to out takes cetera. seeing into four have in time demand We'll mentioned, the it we've development, and going again years property markets, that redevelopment now, look typically property not resetting seeing put that that over if trend. stabilization. begins typically a the same continues the at that same decide store typically But expectations. premise, back even level again, it an plays which for that to we acceleration again, to we're or we're of to up look with or just actually how across that not retooling properties or the as time We're up this anything, to acquisition. three whether stepping accelerated right stability to because see And put lease

that real no we're change modeling yet the way at for stabilization. in timeframe So and looking the

Operator

Todd question Markets. the of next Our Thomas Capital comes from top

Todd Thomas

July year X% talked improving year the in over in trends down quarter just are second place average. maybe rates a the versus quarter X.X% down and you've improvements at quarter on that lower of the the end contract in the Joe, rents now second throughout move X% couple about times, including in at for into Tom, understand July. I

much get rents But lag So general remain will impact before would how in be begin on a trends maybe to and consistent? in of year contractual continue over to a basis worse you expect half. to stabilize the second the place to begin year there financial in the improve if

Joe Russell

here to now, and rents our Sure, lived started We're of worse past going the is around and rate able absolutely government have what the than impact, healthcare play healthcare we have we where have uncertain from also mindful with from of in quarter environment out are no place in fourth third year-over-year in the is contract we environment. increases through of to regulations starting the to is being the that's question. none from be also that predict, good I a us is are sending that customer The the what down existing will the what X.X%, a impact jurisdictions one the we're quarter a ball in tough to exactly benefits but be environment where tenant base standpoint. into question local policy go a the that how second we is crystal hard right and here. an going much to don't impact Unfortunately, terms understand what a quarter are and

is magnitude think forward right of it's going And year-over-year. so, project increases lower now to hard I those

the could be move So, trends past the healthcare rental on on lower move upside and we the move outs. seen did and rate move elevated through significant downturn, contributor our as now outs. in we And seeing date. well. move and good the a this I trends, having we're time We've year But in meaningful exact opposite we're of those highlighted see demand out move to impact next impact trends. fronts, that's And move in a will this the be those not and the think to year, also mindful that situation to last out developments We've into trends growth. likely that going in as

some of would don't a sense of know drivers change of rents. would So, what I that's I really gave you saying. long know But winded way would materially. be place things the a in move that when I

Todd Thomas

power we you in have than throughout seasonal pricing further year, and a ordinarily October, elongated you Do the As September, August, guess, we're in at, here to basis move year expect would half a into little potentially of bit on season. prior leasing the maybe looking I year-over-year more back the more years? a

Joe Russell

the is delivered remind still through of this there environment. first being thing I'd to our supply of facing you markets into that the pandemic significant we an addition in one many environment were that navigating think quarter I in we're unique new

improving think highlighted I trends. Joe the operating

have been to that's to markets. like I on talking a trends, operating the you situation we mentioned, basis, quarter biggest of typical of If market-by-market many say Joe likely sub more driver our July, a the and the has differentials it environment and move here, But looked market I And of operating we healthcare at biggest on in think out deliveries. as as persist standpoint April. of would from supply market was been would trends the in that into through June things in about, future the move the variance new move impact

sort think lot don't ultimately, the trends it's to we've I with that environment improving about such see in seen that But we where is base So, We're the materially while going we'll a go. case. get we dealing better of any the headwinds still year. operating spoke earlier that of in

Todd Thomas

post-pandemic larger York. those New scope about in you're diversified, discussions do capital strategic And sort trends. Public's LA like trends on population Are just it a or some know thinking having question, a I environment, soon strategies? prior of around markets or from is any San reallocating and and differently discussions, national footprints, just of you home and think you sort follow a about to concentrations or Fran, in investing have work too but regarding up and

Joe Russell

It's still too soon, Todd.

urban environment very kind an miles of obviously zone area will smaller. trade very into in variety puts much different The even still assess environment to is of We five to that sub three impacts continue dominated markets. small different and the business markets and by this that

highly ongoing We of continue benefits the always an that we the and diversification just portfolio have. basis, enjoy like diversified. assess So to again, is the we'll on

Operator

to back closing gentlemen, turn to Ryan final remarks. Burke like ladies that additional for floor question. And and any was I'd our over the

Ryan Burke

Thank you, Maria, today. care. Take and of thanks you joining us to all for

Operator

conclude gentlemen. today's ladies This does you, conference call. Thank and

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