Public Storage (PSA) 25 Feb 212020 Q4 Earnings call transcript

Company Profile

Participants

Ryan Burke	Vice President of Investor Relations
Joe Russell	President & Chief Executive Officer
Tom Boyle	Senior Vice President & Chief Financial Officer
Jeff Spector	Bank of America
Juan Sanabria	BMO Capital Markets
Todd Thomas	KeyBanc Capital Markets
Steve Sakwa	Evercore ISI
Smedes Rose	Citi
Ki Bin Kim	Truist
Ronald Kamdem	Morgan Stanley
Mike Mueller	JPMorgan
Rick Skidmore	Goldman Sachs
Todd Stender	Wells Fargo
David Bragg	Green Street
Michael Bilerman	Citi

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Public Storage Fourth Quarter and Full Year 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

Thank you, Erica. everyone. Hello, joining fourth for call. XXXX for us you quarter our earnings Thank here Tom and Joe I'm Russell Boyle. with

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

earnings to our find publicstorage.com. conference that, supplement website, reports, it on SEC replay of can You this and an call turn I'll With Joe. our earnings over audio release,

Joe Russell

you Thanks, for Ryan. and Good morning thank us. joining

begin, hope through we this Public you on pandemic. well entire and we I Before navigate all behalf and team, are Storage the of as your families

myriad In year saw acquisition an clearly In and customers, predicted included to to historic at events the of and historic the the seasonal a of a overarching operations, the in consequences activity this safe into was traditional fourth sustained properties and year, as slowdown new both markets. QX, full seen business, quarter in XXXX, to a we an judging company unknown The lifted occupancy of team commend development oversupply impacts on demand. ability virus. with we result and focus before. QX, and successes a on our to XXXX By our open. This several be issues back creative their traditional of has year move in growth. Looking emerge have Public we keep we full the nimble Storage environment resulting maintain shifted had and have and effort of never in customer in with pronounced from range the extremes. managing I revenue drivers that employees, volume environment in faced numerous it approvals, rate full began the in demand tied

to on highlight success eight year areas specific I on Now like fourth as I reflect and of would the the quarter. full

XXXX. First, in which new we technology which offering XX% unlocked customers of now our use a XXX,XXX for this channel, leasing new of contactless accounts nearly the Approximately e-rental, call move-ins. integration

to XX% Second, move-in rates QX in grew compared QX. in by negative XX%

Third, this over sheet, of our of we to expanded and the has years, Sixth, balance continued equally are entering backlog with of fourth focus million third-party XXXX. we properties year. the pipeline XX% and QX, XX.X%, XXXX, vibrant million a issuances across $XXX as Seventh, of lease-up pipeline sourced with non And States. Fifth, development XXXX occupancy million. with of XXX current team the preferred United same-store in deliver foot enter $XXX quarter full acquisition of industry-leading a as in assets optimization and low record our we million the growth two last, has XX for management reached million NOI assets five quarter Fourth, equity year. $XXX an we debt. the on $XXX generation nearly led to time of the portfolio a after our both square of record platform robust for our with the produced business growing our

begin we equipped performance we focused on XXXX, well driving and several on are fronts. company As

record self-storage capital to and of in a look in Storage digitization advantages broad sharing The upcoming May benefits growing and platform leadership business, more of forward X. and these our industry. of the on I Our brand structure, Public strategies course, well the Investor the team and, occupancy Day include primed most commanding of our

turn to the Now I'll Tom. call over

Tom Boyle

Thanks, the Joe. positive NOI growth with steadily half fourth through of return improved quarter. FFO Financial full XXXX, performance to core in a and revenue, second company the same-store

of sequential that increased There of improvement. a quarter. Our improvement to growth factors same-store contributing XXXX, two which revenue to the third in quarter the compared X.X% X.X% were fourth from represents primary

Joe year-over-year, which as volume net To in while to on growth down result NOI positive in in were also rates, of to place Lower improving digits, did move quarter. double First in was occupancy the to a out down, were fourth down expenses. foremost, return extent, rates The fourth great a team and The move lesser volume expenses marketing. led driving Now a of same-store out and highlighted, quarter. by were move job increased the up flat cost in move with roughly property payroll, utilities operations X.X% taxes, driven rents.

This presentation quarter. property We profitability On expenses which the enhanced same-store two margins. once our reporting expenses front, broke into this disclosure demonstrates cost direct we cost into operating of of operations; enhanced industry-leading indirect categories: second, provides the and level operations. again of first,

we first our earnings night, last you our hope supplement along on XX-K. posted which our helpful website found also with We

drivers our Next, with flow two sheet. cash shape It's growth. balance of great in

And low redeem capability for five activity as have last financing move through we stock as unsecured preferred the year. to and retained First, with acquisitions have the years, we fund costs. opportunity the at cash flow development and to have second, we we the debt historically

of support emergency see through state good lingering pricing That supply. XXX risk per moderating move strength revenue to year. turning basis seen we well in customer as demand, continued and territory from As growth as in move-outs contract up foot we points year-over-year XXXX, outlook restrictions we occupancies with is in positive into demand as enter said, both January. square we've for rent The and with the do place occupied

turn is We XXXX. continued revenue we property, to But expected Ryan. efficiency, by expect performance investing provide better from anticipate utilities We payroll lower control around continued we to up X.X% expense back away savings anticipated. and strong that, expense with utilizing and With our and vacancies. processes, marketing and for we're in tax start with that, pick on as improving operating energy change a commentary year control strong on increase to technology growth environment expense In better disclosure. in sum, the expense XXXX. line-by-line operating a I'll it as Property outlook

Ryan Burke

you two that to questions. Thanks, Tom. We yourself limit do ask initially

back that, With please Q&A. let's to it feel jump in queue course, open Of follow-up. for free Erica, for up

Operator

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

Jeffrey Spector

and take serious. guess, can there, bit colleague, that for it optimistic excellent, you seems those We but Great, very yes, we that just still very it I'm we on risks 'XX that thank a 'XX expand stable, very was the outlook. know more? helpful. Also and you're out little I comments appreciate clear And here demand the thought on strong. remain know there's and my supplemental. I comments we the with initial should

Joe Russell

to to Yes, some Jeff, seeing and in a change new behavior things the of one consumer some We're and leading behavior pandemic. that's to interesting surfacing. areas degree customer the of is tied demand

environment. You work home could point to the from

of provided additive an seeing that pronounced widespread. driver across We're amount we're It's all literally markets. that's activity the it to So seeing.

space the was in home. that coming to of a at customers more One and areas on more things we customers basis survey one of needing into regular pronounced the do new properties, was XXXX, that

to ties here period stay clearly from of So have environment to and might of we entire longer XXXX a XXXX. through good chunk are many new components the a because, and much I time that's beyond through predicted. for home work of from Likely frankly, home work different than think

much a that's thing quite do. we're additive, year more have standpoint, even from the normally of vibrant, Another activity than sales we time been been seasonality this seeing home

So in areas. that of both activity many we're demand across added amount really urban to too been suburban is seeing There's versus overall distinction Frankly, and no it's in regard. markets. that from highly consistent activity the the

we're many currents. Tom close overall as quite good. track But different on So noted, is a keeping cross business,

Jeffrey Spector

And more the helpful. on or you moving Is What changed aggressive? on has getting out, That's is excited? markets new our more acquisitions there like changed on comment that? you To Are focused pipeline. your What's question very and vibrant second pipeline? changed? sellers? underwriting acquisition are ask, We're the on just on

Joe Russell

sector. environment, started to to acquisition as to you increase know, The of an Jeff. that of And the see Yes, coming sellers more or step we of robust. say, amount come been even quite many back, five market had last, if were the XXXX, much coming I vibrant going into has owners self-storage the there's of the years. industry been new over into four There's amount no question whom a

the time. weren't period whom Some for a of in stay long sector intending to of

you've So got that. churn some tied to

of markets have to typically have of which described hit a that too number been uptick saw many of to a market. volume then We've a we in types coming at of has four got either assets which also built three over bring or expectations, last that motivated many occupancy levels pro the not years, or forma revenue number You've sellers historic in market. that to assets sizable XXXX, opportunities, just very as been on that controlling I the of explanation we fit the are do sellers And actively. the

be opportunity we've stabilized expand to buying that looking highly different that of for interesting The not or level other value thing into found a may an creation. assets

gone and the bought many So want They are them approximately cycle. haven't have fact cycle speaks take to was full that enough XX%. sellers through not to newer assets been that in patient That we occupancy through the full frustrated and a lease-up these in XXXX, the cases average of assets. to

closed and a but market to portfolio got our combination preferred deep opportunities are all mid-XX% And is issues. open fourth those of about one-off been buyer. portfolios, range. closed The a We've is which opportunities. smaller the And that. in off as reflection assets contract Combination is of and have quarter, same, both marketed they're million looked well markets, up very continues those as either we've the and we We're acquisition in very team interesting as of large a known. So we to the to or occupancy nothing that average beyond some in able upon seeing the for of relationships. $XXX some that tied we're XXXX control

is Tom the structure set the spoke capital of we're much a to just fact frankly primed, and seeing So larger opportunities. well that

Operator

with Juan question next Your BMO from Capital Sanabria Markets. is

Juan Sanabria

point? you are improved balance there? To sheet? you this for about referenced, you wedded Or thank firepower the the which are wedding to I Jeff's at question or one comments, you're be sheet that on guess thinking is Joe. just A-rated necessarily something you And that the echo would kudos balance the disclosure. how to And me not at

Joe Russell

from, some start I'll then Tom Maybe you can color. Sure. give more

a We we're preferred whether that, we've to both demand as institutional strong pool have And an clear A issue credit very different love they're attracted advantage we low these of And through because rating. who do do able credit or been bond in the rating, the able and we a yields to whole. rates market, instruments. able the very Company have a enjoy record we've issuances, with investors tap and to into as been to many on

Now is Tom in more we've that. structure. you of can our got a other the capacity color thing current on lot give

concerned credit on that. an you little something A not but less perspective we'll we're about a than So tipping give into rating,

Tom Boyle

Thanks, sure. Joe. Yes,

growth, of we back with unsecured as to about And amount good grow good long-term cash we year I external developments, business a gives to growth a in growth And over and a that the needing have year have you capacity each think debt. see sustainable that every $XXX performance five raise engine. financed equity. acquisitions really our firepower without million $XXX retained accretively looking FFO and years, drive can the flow well million both to last as external that's us and

good sub-X% access So capacity a we do we across a the have five-year as good And and of capital offering, in that on we markets, we the with again there. coupon. have very think mount January demonstrated said, bond Joe

access good it forward the finance to external utilizing cost, So, that we to mentioned. growth and Joe and look

Juan Sanabria

me, And about headcount. one some you quick disclosure, year-over-year in follow-up G&A the for talked increasing adding

the out? to you of adding areas what And to? on build are the curious just focus of What you're people what's enterprise looking that? the So

Tom Boyle

Sure.

and are bench supporting costs pricing I is management I might our comment we of analytics, highlighting managing deepening centrally our think headcount be the information and the resources, data think, functions, really management there. that really particular, increased for it centralized in and you field the That Folks marketing, the responsible many down be technology, just list. across human centralized teams.

overall important deepening the of the the organization. teams of really success just those bench So and are to

Operator

Todd Thomas question is Capital Markets. next with KeyBanc from Your

Todd Thomas

disclosure quarter. appreciate the increased I this also

question. First

you early headwinds the the given core quarter about Just throughout thinking moving of looking reported at just experienced we from Is should FFO into detract 'XX year, what fourth in quarter, terms about? you sort rate. XXX, here be we in be forward should FFO the there thinking that going the of that that core seasonality specific the that first so far and quarter lack run would the anything the and discussed the in of in

Tom Boyle

Sure. Todd. Thanks, This Tom. is

things I the briefly. potential look horizon that we as headwinds, think over I there's into mentioned we them of view out really a couple XXXX as

One move-outs. of them is

and May behavior and of shifted you do XXXX. unique longer and spoken in we to as As our And see declined. mean persist environment customer we that on That's to customer really it's move-outs we I as through vintages, Maybe that calls, we've see do into that moderate year, is customer uncertain where XXXX. the anticipate really moderation. moved previous where area we geographies, move stays that was can one April likely segments, length went it's into the when as across through about move disclosures. through XXXX, a we it

to see anticipate lower performance move-outs. customer returns we to accelerate. pandemic customer this far see very pre levels. existing to start we've to And strong and But continued would that start point, we some move-outs at behavior So year,

number that's So one.

which restrictions. of care as And tenant we The existing and navigate through element -- And past that's restriction. most of year, as Probably over impact our There's myriad different the is a price pricing state states. emergency as impact time. environment for lingering one our health have linger regulations portfolio, the risk. of in in to the a rents California, ability those an rate of good move see. here state increase across unpredictable that's we'll portion that well is second increases different a have the We'll notably we to dynamic of and those of

Todd Thomas

I or from wanted in CapEx million of Okay. on 'XX, an that ramp about to it's preventing CapEx to if increase you up And XXXX I EBITDA. $XXX CapEx spend. looks on And is what's NOI about more percent below there -- of but as then guess touching the stores you How of see like sort sort do think a spend that comment governor a to which expected still you of spend? levels, to of is more It there opportunity further? peers And quickly? could anything from sort well up is percent

Joe Russell

Tom and We as regrouped, do part well. XXXX. into we we're many the to So that's as major program the XXXX touching unable markets speak the But program. were tied year. go full number XXXX, tomorrow going runway we more the clear yes, pull changes to volume through actually component be a find accelerate beginning give officials property expected as of of of spend. much tap year. the it cover that, at that that and But as the force types our much the spend ways is of in into increase of have that you the can we're increased more moment, particularly process, component may reasons, many We've to we overall we slower making in deeper assets as at through that to of permitting I'll And or a availability improvements is then program of more color of to a of Todd, for in to

Tom Boyle

away the energy of I And and $XXX million CapEx Joe you property flow the spend that, to of another million anticipate million that Yes. the provide CapEx of and cash down we maintenance break development regular statement. that we tomorrow on CapEx $XX break the of $XXX some capital XX-K, $XX expenditures. around out million, million anticipate, the on in do that we would even disclosure driven highlighted, maintenance be And efficiency about the if acquisition your and highlight, from $XX of

Operator

is Evercore Sakwa question Steve next from with Your ISI.

Steve Sakwa

the was and I more sheet you on a could Juan's wondering of question. spend kind Tom, little balance on just up time bit following if

You have just maybe think preferreds up your dates higher lot have on thoughts in And XX next, a of cost that use preferreds? debt curious the I coming some call take months. willingness to unsecured I'm it's long-term your those to maybe more of out

Joe Russell

Sure.

features a one the Steve, well as preferred that to fact great stock right, that You're is of call. has highlight it's the perpetual five-year both of as

coming At in darn environment, lot capital. great XXXX viewed I of but were now attractive issued, up as a they think opportunity so preferreds, the in handled a preferreds were redemption. that for in that certainly were back redeem issued for time are perpetual to this potential they the And pretty

And of saw, January. we a at was series million you as bonds issue in X.X%. so that we that did bit five-year We redeemed a little did of $XXX in January,

monitor a As will well the different lower as debt noted both as preferred finance before, unsecured business spoke rates markets second 'XX. sheet and redemption balance as of to beginning to forward. 'XX through clearly, at the But both activity have prong well of we'll the as use I've ability stock earlier, that new one we and the a as into going I move be about it powerful the

Steve Sakwa

mean just plus net of And that maybe a And maybe of of just maintain you go? theoretically, can sort number the you're kind clearly high a how rating? committed on that does rating, where EBITDA, leverage A debt sort overall. the to preferred to to debt follow-up I on but A leave net still

Joe Russell

looks to on X.Xx, a I in different debt of one, preferred use is a a where we than at preferred. just S&P for put plus we now metrics, The plus guidepost different which on would leverage who net disclosure pick some the turn A highlight agencies debt but net are would supplemental I single ratings. pick higher rating -- Sure. in over as

Steve Sakwa

And then maybe market, just Great. there trends some interesting QX. Okay. by in were

drawdowns office. Maybe New of down that maybe multifamily, are of super were something We're you, there's have we've weaker. south a some benefitting some weak on. in been Los markets the the that strong and Some bit seen supply, Francisco, in them Angeles York, going that's and in reasonably for else San

of kind on markets any the markets? Sunbelt maybe thoughts Just against gateway coastal the

Joe Russell

number And quite though. to that at but et markets is question. Florida, The many your we're headwind of and itself. earlier, and versus market, Houston healthy. mentioned I markets very will or coastal headwinds in And demand. though point is sustained markets, The markets. to no spoke coming continue self-storage versus burdened portfolio, seeing of change absorbing be improved demand same a of even as spoken we a name overall to There's suburban a attractiveness supply. around demand cetera. and pandemic, vibrant. been good specifically, a good is continue parts we've only it for Midwest demand New But the through has through been the both Steve, markets Minneapolis, you not resilient has our still urban we're of last same-store instance, product, in as three York, two in really the some the it the oversupply. seeing one is material Southeast by got our the Literally, non-same-store still lease-up Atlanta very factor product to, see And good quite years and not of on the the time, seeing Supply markets occupancy lot a quarter. reaffirms I very our but in for in every traction have of we're the think for has the to

of up and So acceleration the And that's our same-store we're we're stabilization very amount pleased of pleased with non going on. very lease the with portfolio.

Operator

with Our next Smedes Citi. question Rose from is

Smedes Rose

of elevated inclined is I if customers? revenues just existing you would you -- any more in sort Or more terms with maybe thinking levels sort try patterns strategy less these to you half around to normal return little a occupancy Do term, sort the more of high to guess, keep of you're of think ask on capitalizing I long the wanted around to occupancies of bit maximizing to normal back have how increases of right be year. more now? in that change kind there about pricing

Joe Russell

highlight, nature occupancy I I particular I which Sure, of the quarter year, guess in the a rate the anticipate will way inventory levels, dynamics with operate. back in quarter local pricing, move first XXXX, year volumes for which the we through had submarkets and the early of mean, we would lower now into to strategy Smedes. half half starting out the through given accelerating too of understand to opportunity to and highlight accelerating wouldn't second then lower the I the it's clearly be as the really well. led or what the and second

well think that's I low disclosed So marketing with and rate it's discounts, we expense. levels, focused strategy at really inventory promotional as been the given lower point lower been this which as a combined

we'd to durability persists As move-in we consumer you're occupancy into a and driver if that the demand dynamics painting of because the have rates one of of the strong increased and really of components now fall powerful overall that that back half and revenue to understand the will to growth I market. is is picture activity whether But where significantly in definitely because out we're think move key customers. starts the to change is one seeing local XXXX, that accommodations the move

to quite ultimately move and start be XXXX. understand as of we're we and we But outs. trends of to rent good it's and a combination and clearly, operating So maximize revenues, the move-ins looking both the need continue occupancy nature to

Smedes Rose

there I storage Any hasn't base any used demographic in in first-time we there's change that that color been wondering of maybe past? in customer particular if if just of the then any you've the seen? And terms were sort also have of you of users guess storage reaching Okay. or sense maybe a

Joe Russell

that's of at specifically, sector Smedes, the When never of more and look then as in many our whom been question, have own newer happening as adoption by users, whole speak. a seeing what more there's self-storage we used before. portfolio, you no we're generations There's

it's a customers asset, way and growing to But as continued great product the We're well. the adoption first deep we're been seeing generationally, the use very and encouraged So of been time. by for them repeat for there's that.

Operator

question next Ki Truist. from Your is with Bin Kim

Ki Bin Kim

So made in on how you've dialogue two investor, And and PSA that you're that they deployment see And of changes mentality of interested that's seems those capital some because some and but are shift we can you've embracing to brought investment balance call. or some of the the magnitude changes from there's I'm of type or any the and of are regards sheet. to universe? what And had kind board ones the of expect everything business if philosophy in been course, the it with suggestions. like some better big rehash commentary won't this disclosure, I up, better see you important?

Joe Russell

have Well, Ki drive to the and our we fronts. to to Bin shareholder And continue are we entire base. on just will speak be with business to all continuing with interaction shareholders, dialogue different many active in

about, capabilities. very and we've talked and strategies As unique commanding got we've

returns standpoint. that and a very which shareholder an May. commanding that are that not opportunity coming of focused perspective delivering variety we're is very through clearly and I from tapping we've of some strong you This on It's very into and we'll team focused event something on on and And specific about May those, we'll strategies in on X. one are and speak management evolution that give on Investor identified, distinct our even of the change in in from more about we've one or many Day today strategy. We spoken more focused very

continue and dialogue we'll shareholders. transparent our and as to very with So we welcome we can be, to be have as continue active

Ki Bin Kim

how And to in if team the management the changes, Board any difference? there would and dynamic compare some there of or Chairman members, might -- between and be the what the just is past, Board I'm new if is kind of regards to the this Okay. there curious

Joe Russell

gone Well, new board will a the the seven and is on refreshment. the that new last to Storage difference strong years, on strong has trustees as The continue have I'm perspectives. through And trustees. it be evolves there happy has business seek with many pretty time. of two to because over of level very a good to joined very governance. backgrounds, added the We've Board strong continue we'll Board very focused counsel working and different things from look of good together. collectively, Public collection the different over we're And Board

I we've As added trustees. new mentioned, seven

So tenure years. XX XX that, to average of was prior the Board to the

Now, it's about four.

new direction all So and has overall ideas, large with perspectives, at at that pleased comes, focused we're new that very Board initiatives I'm the on the on. Company's and with focus the caliber strategic the and

Operator

next [Operator Instructions] Your with question Kamdem is from Ronald Morgan Stanley.

Ronald Kamdem

very helpful. Great. I the echo the supplemental, on sentiment

from a me. Just quick one

calling out percentage years a you maybe not, we And going But expect portfolio, to way, what that this very forward? is some think out if sort about as dealing to markets. asking new sort in trend year supply the and with the in competitive just do of of question, the different helpful number? back maybe the going the supply, how if Just of that of

Joe Russell

Ron. Yes, sure,

years. talked of we've now obviously, pattern about very to for last the So assets. in We've two new three strong been a delivery

XX%, nationally. that taper pretty to markets. It's of that back assets 'XX, and encouraged, had, a we're at a of somewhere about the new could to of amount delivered new now a that between of was go that where the XX% another And market billion $X in impacts -- with peak, saw by to XXXX, billion about hit down different but an we ticked year, certain expected, there's at starting even deliveries. level however, many come moment, at so it's as XXXX, detrimental It's In taper we're be with $X.XX likely still us. were it's of earlier, which, that as It assets deliveries, added cyclically XX% or oversupply. inordinate markets. up being $X XXXX, feels maybe that's like I down, thinking some reduction where deliveries. in XXXX in to XX% fair about to to billion still this You submarkets $X.X We're it's billion mentioned to amount it and

seen we As and where I go one acquire the front. platform development platform, of actually land on another competitive industry-leading have sites that much we to an us that it's creating speak. assets an a as opportunity on opportunity land also pocket bidding it's we or for and our provided not of two, last development And betting mentioned, opportunity our uniquely it out On seeing given development teams year as haven't different enjoy us level has we're a out until sites. we do higher because

hopeful we're to in through quite deliveries some areas markets. that. counterbalance And doing encouraged there, well. out into continue continued that going are The sector to funding is is to new decline put to So of and self-storage product developers still play be that,

we're it actively. coming how it tracking the quarters. So And see through we'll plays in

Ronald Kamdem

went in markets storage Great. you've it product just really the and you're stake in question obviously U.S. looking and contrast could experience seen with the with could Shurgard, Very the My the the familiar helpful what with if versus compare just maybe second of someone was internationally be some helpful. of internationally, COVID, you sort through?

Joe Russell

the vibrant States. what's similar give been are level here drivers, product States, and I in we've knowing ways you going here I'd in seeing many European demand, what which, on business got many in been you It much what the itself. has can between seeing point an markets. on what's elevated the in new their we're seen think Yes, again, impacting has into more United users understanding business. they, of color coming Shurgard And they United too, similarities to, But to the good and is disclosures,

Operator

Your next Mike question with is Mueller from JPMorgan.

Mike Mueller

have wondering, any a benefits Just this having at third-party even been short time you've significant business, for fairly seen though you of point? the yet

Joe Russell

definitely different the Yes, Mike. us a lens Yes, on industry. it's giving

to of As I that up XXX mentioned, pipeline into development assets the properties, percentage assets. program our got coming we've the currently, are are sizable a

assets four We've markets. from of helpful. how of view another far that platform bought the in thus it's itself. many is front So on much lines That's the activity actually

And assets. identify times So performance that different helpful get from opportunity we at it they're reaction assets. the feedback owners, of it's operational the actually we've relationship acquire can use, way be that a and the looking outside to methodologies to on always got the different many

holistically, the So a additive, been perspective different many it's again given very and on different yet us it's in industry ways.

have we're So continues or given into not we're heavily construction of is to now or finding around assets pipeline they're us, giving year. also It about but and going grow. say, continued owners fully weighted, one, activity development initially, it weighted encouraged is more. our opportunities activity, three that two a number but The this us

strengthening So to relationships it's way expand. continues to another for we as build program continue we continue relationships, to to look as as forward and us -- the

Operator

from Rick question next Goldman Skidmore is Your Sachs. with

Rick Skidmore

on follow-up the a few minutes a Just ago. supply question just

lease-up are about pace As you growth been has think where it extended properties as a might the you're wasn't think you reverting five trends accelerate or than and you little that the maybe maybe to four periods back of seeing developed be prior rapid? lease-up seeing, faster that demand to such years given and new

Joe Russell

'XX lease-up Yes, even delivered Rick, the than anticipated. you're very It and pleased in been activity with XXXX term, right. we that stronger demand much We've and near is assets are accelerating. seeing we more

But customer to then of definitely existing acquisitions and strong I the have we activity, that we standpoint. encouraging. we're the some season to and a we're into revenue about in time. we're and type occupancy, really are put But those assets from able well. are It of revenue fill maturing from we calls shorter lower better in and assets time our mentioned, the asset a prior as once stabilization stream, and talked this as if So levels speak. product we -- take looking the Tom's period to that's that seeing putting, as platform, lease-up And acceleration stabilizing quicker is off up does of start a frankly, even that

Rick Skidmore

more, normal on side just question, millennial some as move there's utilizing also a demand regards back a of to maybe longer Or also about the Maybe is then to over move-outs to you might trend younger reverting or And the -- the talked it. how demand trend whether Tom changed how just tell bit storage that's a term? too frame generation coming new if line. going it's just forward? but you some demand Got bit about you mentioned generation early COVID it to of with think that out

Tom Boyle

It's Sure. mentioned, activity. watching we're data closely, Rick, very based on something, that both customer composition, and the Joe as survey

is momentum the As it's really has through we continued. and good been move thing durable, The XXXX.

vacancies are lower. of that's sales plus, lease-up just Joe visits up are and up where top higher, at trends, an and as XX% occupancies assets web looking demand funnel calls are faster. inventory backdrop, mentioned, And are against filling So

use continued So, really that not some free time interest, the of top Joe them space of we're funnel customers home. environment home And but has and the words, a one their or to the case that years to utilize the period customer May than IN year. that April throughout. highlighted they of those good storage accelerate was of types it prior an of moving, tend have In looking but throughout use And space extension cases saw of terms to higher as storage, to as up April, an be the storage wasn't of customers good persisted consumers have we trend were in strong in has stays. customers their longer and May that tend length it to other

of how the really How through into individuals been some as the or through going as backdrop and and generally home persistent forward, to with do been it's for that encouraged we've be XXXX. and reaction of disrupted here the support characterization days Joe will being and daily we by time date, customer the we pandemic nice spending home. XXXX just lives more mentioned, a work that's from it think demand persist forward. at go elements the But to more ability is we've occupancy seen And tenure that to guess. we'll anybody's So long lasts,

what that, no or encouraged day those we're shift. but So to by exactly guidepost period what into or could the future time as

Operator

Todd Wells Your next question with is Fargo. from Stender

Todd Stender

I and then wanted if some already to have sure facilities QX think occupancy QX. broke I full here may been you the the in figures XXXX, deals acquired heard I but make that year out for

Joe Russell

asking specifically you deals are Todd, about acquisition or...

Todd Stender

a just to it's maybe Yes. color Sorry. there? they're color pretty market? speak occupancies rents know diverse and set, below maybe geographically any on I Any but market at or

Tom Boyle

I transactions. we little see then of some maybe quarter, lower a and fourth chime in color Yes. Joe the can can too. occupancy did But provide bit

terms in we're at portfolio we had around average, in we're acquisitions moved past lower we right, really only higher, And into talking XXXX, spoken obviously the occupancies stages, think And in XX%. XX% lower, activity, clearly, a in time that's opportunity properties be the many but rates we of those we'll And of quarter's then as of increase worth have in fill and over with I you're than the around came overall how the about the that rate, will around rates go. the overall, around similar XXXX, earlier as to XX%. up

Joe Russell

sector, Yes. average, are we've that as And continue occupancy I to pro way pleased good. of to, and But the necessarily color last been speaks very assets you not little or many assets these to quality with that two occupancies, been have over overall, we revenues acquire I more years we've acquire quality reticence achieving that level these to mentioned, bit has of of that fact the maybe relatively are on see the the forma the some able just market a many to of stay in either the a in very assets give but level they mentioned, particular, new. overall to to been coming they're the sellers Todd, in of as the

Todd Stender

OP need that cash? not If tax-efficient the they're in unit generally new and just sellers or you're do does that paying an suggest currency like

Joe Russell

looking single asset the cash. because of and put a that capital got be they maybe more it's that broader need Yes. them It other they types or asset are a Many rebalancing portfolio. developed could for to into they've

So too. some have connections time but built we of even come circumstances, of relationships community, many through conversations our the with these deep period owners over brokerage these through and different as

Operator

is Our David from Bragg with question Street. next Green

David Bragg

driving the down could you side, expense we color to and expenses? normal some role move that expecting is And going rental program the elevated more a utilization of remain environment? are payroll additional On you as toward on provide the rental

Joe Russell

environment, of pandemic our We to very So customer tested we and transaction. driving be yes, to quite channel, are oriented the more toward related I efficient it whatever as wanted leading has utility designed the that it. because, time-sensitive frankly, go rental the was use activity beyond think David, been built definitely mentioned, channel the be a it will pandemic to around really vibrant. It drawn that Customers and before e sustainability and pandemic. self-service much may customers who a it whatever

Investor it to look channel level Day far in And will model to definitely by the So that this the we've beneficial of our success your different it. approximately and have really forward that about of continue more to way of in we XX% so operational likely too of now customers. it to adaptability seen good and optimize a continue encouraged customers. May, study talk process. our adoption point, our It's provides and by We'll very move-in service but to impacts as kinds we're different

David Bragg

Great.

demand, from quick follow-up. forward. home expecting be moving Just relatively you're like seems It sticky work to

business potential we about be are particular where think we areas areas move-outs, out we in what mind concerned? Or Is As other towards are environment? it where a as moving demand there small you're keeping move potentially should normal

Tom Boyle

As the I in pandemic across ratio move customer change customer like. customers, the pre out was and noted earlier, pandemic, consumer tenures, really business, during segments,

one. was So not isolated the shift in

we that, XXXX. update historical certainly full the about back moving see noted, that to easily do we to spectrum. we there's consumer start date. when be no we but we'll historical norms, that And seen as starting the across that, encouraged to as closer been But could And community have question so to norms think just or we've investment not behavior, as

Operator

Citi. question with from final Rose Your Smedes is

Michael Bilerman

guess, little Michael shareholders that two of sale, today a those or do I Bilerman how you longer sort bit any billion, of distribution can $X.X stakes is almost as Joe, just the terms of talk on sort wondering you've And in analysts, here was in if and stakes your asset combined a about with PSB. about value. is interacted in single-digit stakes gross Shurgard and whether the of with Smedes. of table term? the think high you companies I those

Joe Russell

And directly, in degree success the to We're level both them. do Yes, speak supporters are we're of time, the of each those ultimately, maintain of but tell investment entities. each to that reasons our over would variety performance step Michael, those I our platforms. wouldn't you pleased very why are a of individual of and investment what we changes I of we with very There with back and have and and that businesses. pleased

Michael Bilerman

capital on But does your sense. makes that I sheet balance guess

so, a side can more think I PSD makes understand but I sense? probably is business, stake the Europe Shurgard, does global the

Joe Russell

point, be would feel I -- It's can strategically good as that to that's would to certainly with anything we in share And give don't any be forth. different leave any that on have But behalf. It and at place, as we would color continue we at been, or I something could I I it And focus Michael, just this investment evaluate. our you. as have, would that point. bring we a shift it's in mentioned, this investment takes as like commitment it as much

Michael Bilerman

just maybe group, Okay. of maybe Or out the triples? spread represent that the it of sort have amongst in different some XXX, those on of sort out management program, owners singles and some And then doubles have just many on is you in clarity around five the how what do more details and top you there?

Joe Russell

that's And different those way The think very show I oriented. are able kind basically as to XX, assets time, the of for beginning XX own XX continue whole more giving business with we're to mentioned, We've they're anywhere that a a traction. assets. opportunity to or evolve. is as platform. evolves, And over doubles that But from, to or as I us of seen our number program and under starting It's to the see have triples. Yes. the actually good the reference display performance say, singles, attain and business owners a

display think we're show starting we be these as that that, own able over additive, time, assets to performance And some actually platform, I So we will very speak. see matters. of as to that's are of under and the that and attain our something amount of

Michael Bilerman

and having take supplemental the community line some sort more with the been I appreciate with the call. time the have and opening comments action Company appreciate the making in provided coming of of And see nice comments investment by bit that. a Great. It's outward industry. I amongst a to on that being little

in change lot a So that appreciate the definitely doing of things you're implementing. and

Joe Russell

for Thanks feedback. the Great. Appreciate it.

Operator

further back at to over I'll or are remarks. no turn Mr. time. this There call the Ryan additional questions closing Burke for

Ryan Burke

of Thanks to you, joining interest. care. your time. We us you all Take Erica. soon. your Thank appreciate for We We again forward today. speaking appreciate you look to with

Operator

for call. this today's your concludes Thank and gentlemen, participation. you conference Ladies

You disconnect. may now

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