Public Storage (PSA) 29 Apr 212021 Q1 Earnings call transcript

Company Profile

Participants

Ryan Burke	VP, IR
Joseph Russell	CEO, President & Trustee
Thomas Boyle	CFO & SVP
Jeffrey Spector	Bank of America Merrill Lynch
Juan Sanabria	BMO Capital Markets
Todd Thomas	KeyBanc Capital Markets
Smedes Rose	Citigroup
Samir Khanal	Evercore ISI
Richard Hill	Morgan Stanley
Ki Bin Kim	Truist Securities
David Balaguer	Green Street
Todd Stender	Wells Fargo Securities
Michael Mueller	JPMorgan Chase & Co.

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Public Storage First Quarter 2021 Earnings Call. [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, Angela. everyone. Hello, joining first for call. XXXX for us you quarter our earnings Thank here Tom and Joe I'm Russell Boyle. with

assume within may untrue we as Before no begin, forward-looking these of federal call matters of economic obligation is These to only update, on forward-looking and release. we you of statements statements securities constitute and today, are earnings laws. April reconciliation supplement become XX, this our revise remind that the measures A speak statements want events. we they of uncertainties. certain non-GAAP because during All discussed XXXX, statements subsequent the the meaning or call certain subject to GAAP risks we've in this to to forward-looking included financial applied

find initially call website on audio supplement reports report, You earnings do yourself our you questions. limit release, to conference SEC ask replay this can and our that of We at publicstorage.com. an X

that, to have I'll over you Joe. if queue. in to turn the feel that, jump please more course, With the back call Of beyond free

Joseph Russell

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

pandemic. by Before morning, will tied wish we continue the health and along guidance good we Tom to face covering with call a begin, performance, the few impacts begin XXXX. QX from everyone the all I many inaugural for we as to This areas our

join May are an and hosting can on you Investor we know, X, virtually you us. As hope Day

key will coming our introduce share years. executive that the drive will We in team to strategies growth and you the our leadership

has historic for remained metrics Looking play at through. self-storage of QX, demand a elevated. number Customer

remodeling more of length resume to This needing in the storage. stay work-from-home, move-in historic home behavior has increases coupled from impacts consumers drivers customer existing out metropolitan with includes both markets. study-from-home, sales and traditional longer-lasting elevated and customers. migration rates, across more see extended and the to tied and with continue to We increased all been to Demand rate latitude consistent of customer markets

patterns Both stimulus, healthy improving and particularly up be strong. as With of acquisition is assets To remain assets projections XXXX a non-same-store balance With the outpacing our ups, customers' sheets government well. and shaping are grew additional XX%. same-store investments, to by lease economy non-same-store activity. in performing consumer robust payment and year our NOI are

to addition the year-to-date contract portfolio, With under either feet acquisition is or note, ezStorage our approximately unique like the our square million XX%, recently and the expanded $X.X by since redeveloped portfolio $X.X areas Of specific would highlights this billion. of capabilities. of acquisition, have to announced we our ezStorage matched and closed XXXX, developed mention I having a how have to In XXXX regard and few tied XX transaction acquired, billion. activity invested X it significant

Storage across region. be of these even XXX markets brand Public brand enjoy unmatched XXX into integration as presence presence with broad already with the a had the seamless with operating stronger assets. now now assets assets will the platform the we First, and presence mid-Atlantic in We

approximately on begun taken one ground-up them, and the for The allowing of Storage to of to with has portfolio development. poised months. team X assets that has each us Second, along on these next the ezStorage ready Public expansion, execute over lead are expand development X is the XX by opportunities XX%

REITs unique self-storage from our of the portfolio by more to Storage has know, this you only capabilities. team unlock and poised is Public value well development As among the development virtue

Manganaro transaction and line, choice reputation our capital very to a Third, structure. to case, short weeks to being well-earned close fourth, immediately from our and NOI. We the this to and their in of X-plus employees Storage. thank and time in accretive primed decades. I for family welcome efficient portfolio many ability a last fund assistance is into buyer acquisition put the outstanding selection they ezStorage FFO community. a due into the Public Public our of want close customers team their appreciate outstanding and This of this X great over to large the platform in was And the and to Storage in and work choosing investment this our portfolio integrating

of to X,XXX-plus portfolio, the committed and of whom XXXX, are of in enhancing team the leading to we Storage, Looking let core brand well-located Tom. members hand dedication to over the strength balance self-storage the call customer our at full and me With the sheet encouraged demand, by quality Public the our all industry. that, are

Thomas Boyle

performance. start Joe. Thanks, with financial I'll

compared into financial has second revenue two which the XXXX, XXXX. quarter X.X% sequential of growth improvement quarter our in of from were increased There a primary Our the factors to steadily represents the improved X.X% the the performance of XXXX through half In improvement. to fourth first first that same-store, quarter. of contributing

in-place move-out improving were rates First leading flat and rates while were to digits, year-over-year, roughly up foremost, rents. move-in double

also move-in occupancy Secondly, volume lower. but move-out also the volume through with down increased quarter

operations tax of by lead cost through and expenses. marketing first the quarter-over-quarter in to $X.XX to leading payroll, ratably quarters to on down driving will property great in a first did Now worth the quarter. stable The quarter fourth the utilities, The will FFO. we expense our headwind reversing quarter. and timing This the property X a Lower to more specifically, was benefit taxes. the of in on this in expenses property job property tax year, benefit team future. same-store estimate On a benefit were driven a

the Investor look forward Monday. with Monday numbers, payroll Some efficiency Day, of quarter down the XX% on property improvements. We technology showed quarter, to sharing in and up we'll on given in operating more our model evolution discuss first our at

we've X% mentioned, and demand, rent XXXX, seen year it's per started X.X% moderating tenant to XXX time, first our and see occupancies line-by-line customer basis territory as of do square our our we our That In the turning in outlook guide points in as positive in move-outs XXXX. supported For strength, what against grow supply. to with guidance up and and said, FFO occupied included continued XXXX That risk outlook we Joe the commentary anticipate we as good move through to in key with And going in-place really conjunction year-over-year demand the in the foot supplemental, core contract existing We by a earnings to supplement. from business. drivers we same-store January. customer release into comping performance higher is revenue extraordinary was XXXX. in

be to XXXX. are to Our quarter current compared down the expectations fourth XXX points for in occupancy plus basis

the control We expense expect XXXX. strong continued in same-store in

expense X% pick will Property year up a the tax expense expectations same-store X% the around recognized growth. for with for again, Our ratably expectations are year. growth through year, this to our X% increase

acceleration In outlook external FFO to for gears and for growth balance the includes and total, of FFO Our now is to our non the through year sheet. our initiatives ezStorage core per guidance will our to this with growth next. same-store $XX.XX shift of $XX.XX add share I'll portfolio XXXX.

about to we with the X, The effect day Joe of the X After of fund the mentioned, and year used funded tranches after a bond X offering have market to within having balance longest our sheet fully open of days. we we comprised industry position X.X%. the to our over cost and I'll the growth-oriented transaction we'll it of As average purchase announcement cost XX transaction, profiles. weighted Monday. sheet entering ezStorage the Angela to the continue growth X to at our remain in initiatives, and With more lowest the of the in REIT duration with share Day turn questions. great on a to balance And up balance for use fund sheet Investor that, line the

Operator

[Operator Instructions].

of first is Your Bank Spector from question Merrill Jeff of the Lynch. with line America

Jeffrey Spector

feel drops dig may fourth in in last that drivers a you question in the just quarter? First normally talked this, seasonality? bit and and around and we demand normal again, what is just, to I of Joe, the compare you in can is decrease confirm I in And -- opening the a quarter. main you more we it's fourth the quarter, bit. why does customers, drivers, some incoming the customer then in question really -- Can guess, the you you guess, that your about fourth the bps occupancy XXX get, How saw you little year fade? a But the remarks just investor discussed on see

Joseph Russell

Yes, Jeff.

of quarters is One of to what that seasonality. the could what couple things is predict, even to hard another out going revert degree call would some normal to you

to Tom's we're but So point, potential that still a be as event, to looking determined. at

and several the quarters, seen of has consumer demand matter now sustainability elevated. the been for we've quite that business last for As

and, traditional of the noted, a different storage for time. but that the demand overall it's year, can reasons, sales, We been well. be closer pool would need are customers there's every healthy, business home As And trends, look reasons. to mentioned, we've and with we continue whole fact the that the the to right more area now. as end that to of consumers seen generationally encouraged and And economy, in I operate as pickup by first could the for literally feel seasonality new determined. say, storage the to has as new we entirely of additive even We're for there of additional think be quite coming host be market sustainable, both but for I in impacted and consistent I

Jeffrey Spector

I and acquisitions guess, How portfolio should target second the markets and my that portfolio? for ezStorage think question then new plus how specific with And fits we about, on you facilities. your current in just

Joseph Russell

another markets ezStorage position example for in the a highly operator, way privately nationally. preferred portfolio, in focus opportunities or different quite see integrate, assets leads very good And deep off-market clearly it's the asset means, team more knowledge as market had every as what Beyond a a our to the strong with We're presence any that, presence these the a the more particular at and that the balance, were specific whether fact a by Beyond come States. going buyer. had top seeing The acquisition, easy to very a assets the without we've to way relative other the of had data there nationally of presence market as new them XX very of of one across widespread. noted, a one ezStorage operate United virtue on preferred lot very have it's dramatically. whether but we with underwrite. we're the magnify And that deep through deeper Storage those continues by that quickly the of very we've the pulling through or on other traction that very regarded the other We of was as about metropolitan able to a was more we play that and And We're been in uniquely to we dealing again, base, literally us markets, market. and us we're unlike could you ezStorage markets traditional that are, quarter a virtue I in to from already half that ezStorage seated, we Storage multiple Well, as the is we portfolio for limited or and top-tier large into we benefits be of us of was nationally, margin. would portfolio ground. quality We're the vibrant reputation which relationships, buyer. I we known a owners, nationally say that portfolio, the fact of on have markets. something time seeing positioned in ability that but top smaller to single national we've over markets, bought fourth had, Give got that in move in could very market. very sizable in good to ownership something and XXXX, by in come of which have the already And this the on to major strong got was we looking question, collection isn't good portfolio easy half, that many very quite a strong a

Operator

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

Juan Sanabria

on for from a color those drag has some little regards high quarters? through Maybe the in context if a any more give year. the built could few versus you X you at revenue with can for growth. as and you business, And And end provide ask maybe your assumptions same-store assumed the year, the last the to us wanted just extremes? Just easier on about the what been the full to benefit low comps the fee what's more which bit is cadence if

Thomas Boyle

lot a Juan. unpack. to Yes, sure, There's there

first, fees. with that. last So let which one me through the Starting pace is

has the the that of of been each onset in So pandemic. since a quarters drag the

started hold last see so second of And year. in to you that take the really quarter

will have We do as activity. we payment so lapped And comp. strong anticipate, Joe that continued mentioned,

think be don't them. or those year fees we had comping those will that previous we won't fee will So the where collections been the remainder collected be -- we for but the collecting year, of against charged

that So comp away next quarters. should the go a X in from standpoint

up, getting get summer In as year, terms second into we in the see driven, I more of the we they our in typical move occupancies the We'd a by I And into cadence case. as move we employers governors starts and as normal through we think to summer to the economy We folks any Joe quarter. into occupancy as to into would open fourth the back pattern about that part quarter that mentioned, get year anticipate that, point the through third fall do the of period the anticipate through like and talking back reemerge the office is to seasonality typical the to the and mentioned year. base seasonal fourth more in really as fall. encouraging and

existing In fact increase paused of this the plan remarks, of that in tenant we year. we items as about terms drop the And are had drivers on prepared other in was I'd particular, rate last in rents the quarter, our mentioned as highlight we last in-place on Joe the executing program. talked one second that his year, throughout any of year

fourth. program an the existing So resume from second we and rate standpoint tenant those the will increase third in have comps But year easy last quarter. did then in we

Juan Sanabria

that's to if rates date? what could seasonality net and And how Great. April, on effective provide seeing just of customers hoping you're on a was then you us new how color trending I of sense through any just give to terms for street in is trended

Thomas Boyle

pre Yes. to quarter were the see rates in as earlier. year-over-year, were Well, those up nearly comping Joe pandemic demand and we continue mentioned first The XXXX. XX% trends, move-in very strong

comping As we move-in the moved into reduced where of year onset April, now did we obviously we demand pandemic are rates. see the lower customer last and

And well, the a thing move-in XXXX I through start there. most at are performance up versus year-over-year our benchmark, to April We're digits we that April rates XX% move-in So positive continued plus. as and pattern. good a looking at seasonal trajectory rents double encouraging of and XXXX think typical indicating is look as April are up rents

the continue pool. we inventory And be demand. limited encouraged we to by frankly, So within same-store customer have

So rates are going higher.

Juan Sanabria

sounds me. XX% good to pretty

Operator

from the is with question next line Todd of Your Thomas KeyBanc.

Todd Thomas

bit the incremental made, the It you lack expecting that? relative pace bit? the light on after near-term flurry you last hit activity on pause because you're to you to even tease investments. the deal. visibility this to trying digest to million here. market at question, on, market little $XXX First coming are maybe circling a back the of ezStorage in just Or Can little a the is I'm what's with comment the a just the Are of a that through based to of comments time have you've just some a guidance. button in of in excluding seems there slowdown acquisitions and Joe, embedded that to

Joseph Russell

Yes, easily. more ago. talked as the add Todd, well to to good And primed it's about we're seeing assets to team and the the continue platform latter. -- few little a I minutes very opportunities, No, there acquisition related a

to good just a continue accretive know going metric good we to we're but of from but So we're It's it's going assets, again, year. deeper platform, quality seeing and to to level we're standpoint, assets. the of be at the there. predictability, look from elevated into we're focusing to competitive activity, continued the that can and a We're a hard see that what lot quality and competitive. we additive face that still got properties It's as quality We've markets confident overall activity just, on. on a going go activity

well to many noted, And continue As sheet and and they're Tom the with to and one-off than continue out support related that, a on different balance primed types we'll development pursue or has to seek our what activity. find is acquisition of whether opportunities, more portfolio basis.

acquisition at pipeline. If the you look our in we've that million got $XXX-or-so

of in can then toward speak, be smaller more our mix. That's one-off or through we concentrations come the oriented playbook is what either portfolios. consistent As can the And it's that more always just what unpredictable is assets. larger in

think we've still pursue of as as only then, how to that continue certainly, start we very a So as see but but the very amount by off we'll in this shape the going a good that to opportunities, capture year able volume, on. and been goes year. pleased good But not in QX, we're through XXXX to very plays through I to whole mentioned,

Todd Thomas

accelerating the for geographically, of or looking based Okay. there certain on it just asset purposes? markets little And out on a then of obviously, changes demographic bit maybe thinking Is concentrated. and is more whether regions, because Or adding quality exposure in -- or transaction deal more trends certain in what's markets? accelerated available was focus generally ezStorage a certain

Joseph Russell

intentional see of see, each based putting Obviously, trends advantage business either can't we're you of enhanced by manufacture opportunities priorities, where are we the to itself. where continue Yes. scale. to very But we strong expand sales where we the very looking on in on and we're area that

portfolio more But from we're size looking commanding This already scale and mentioned, out there. ezStorage even at the also a a it standpoint. Looking to attractive portfolio, I Boise, been We that never as presence we had recently We've nice as markets presence market. portfolio Boise in into in increase other to capture in went We a very Idaho. were able well. our X-asset made before.

the been that we're that we in traditionally, we've and deep looking we're see as in So at well. markets markets good growth looking opportunities

Todd Thomas

a just question. And quick Okay. last

to of last normally some of in at certain call if in strategy haven't previously demand decade allocation X. if And assets, just any saying over and portfolio or recent at sort just but parts either course years. or of the capital for the really it's all? changes strategic sales business around X order dispositions, curious You the I given the really sold around I'm you're -- all the contemplating in or asset or And -- or prune dispositions

Joseph Russell

it's do, ongoing an we to own, wouldn't type is and/or you of I portfolio would a that evaluation -- that That's for specific disposition to that's Todd. say, any we to I to look too. evaluate. candidate we the on beneficial. at point own at changed, point, asset something our perspective nothing area execute has this We'll or speak and we that certainly that continue that. circumstances if for think on but it, to But And

Operator

Your is Rose the next Citi. from Smedes question with line of

Smedes Rose

do I to it and an which decline AutoPay. across on you've think is what in structurally said this to a don't I AutoPay, like on AutoPay percentage fees, ask longer? stay lower kind reason forward. wanted opportunity kind of going is sounds your portfolio? bit late But that is you've seen already who why I tend of go on X you people little just that's And know

Joseph Russell

above it highlight I'd April. as and change we moved we thing was think AutoPay ONE The Smedes. Thanks, Sure. beyond is into

March, patterns of year, the months through AutoPay last the onset payment April, pretty acceleration pandemic. but in was the of significant May saw Our a at we February, consistent

AutoPay now several the has and that expect of given and today to, move-in our specifically. volumes continue I So method. enrolls about comprises last move-in into platform, That been said, e-rental to half which if point elect to that we AutoPay over our years, auto they higher AutoPay folks it trending wouldn't

we've will And AutoPay increase. what payment not customer so we seen do it's the really anticipate that But driver main patterns. on of

and consumer and around we some of pandemic. think operational the I of processes the put being more sheets excellent at that's time the balance

Smedes Rose

stay? any seen on how of between who differences it are you terms have AutoPay, long And not who they meaningful? Or in is though folks aren't

Joseph Russell

things the them, a we at psychographics characteristic standpoint. composition AutoPay look that the is like. both certainly one have and from People select customer AutoPay associated with demographics a certain of and

we selecting to a very customer. certain select makes a necessarily but characteristics, that not It's customer it's type. as so be AutoPay folks look certain watch our them AutoPay we generally have tend that's the closely And understand that to of something

Smedes Rose

that really to And to ask your in then you that's where around not upside along -- meaningfully be just I'm got in in limits trying some Okay. now? Does just price is want mentioned restrictions still you, listed, to those guidance I increases? above kind of place the price anyway? some think upper that your there Or are Or pass impactful restrict it regions. normally is would like you there? if ability about of right all

Joseph Russell

Thanks, but That's We've those restrictions great been question. about a Yes. restrictions of many fade is away pandemic, through talking which pricing Smedes. the to started encouraging. have

been fires has place several several in years. now in one and think basis, Los it XXXX big pricing over in the emergency related that of Angeles last place, taken for The and restriction it on we a environment about state that's other as the year-over-year regulatory counties pricing County years XXXX notable have a So was. several is is than better to here California last

is Angeles the California Los of fall XXX of on XXXX. restricted our largest pricing we've So because Section in market. And since been

So until scheduled expire that It's XX. in remains December not to place.

there. Los some we seeing doesn't see it Angeles. same level in revenue you is it's are And factor the well, per but doing some a but growth it of in that So of other pricing the remains into headwind Angeles our quite markets, not guidance our given restrictions Los se, of can certainly

Operator

from with question Khanal the with line of ISI. next Samir is Your

Samir Khanal

acquisition for curious and I set domestically. more U.S. guess, I like what of well? talked know one that the just we sort does just on internationally, But about look front. guys Joe, you the opportunity as

Joseph Russell

we've strong this from that knowledge been it's that our and the the say, very well away time that Shurgard deep thinking things platform came that's and Western quite historically I certainly how and borders. We've relative Obviously, have of and, the in we do over from and talked European learned base markets. bandwidth about to Europe. portfolio knowledge the the and grown able taken would throughout Well, like to how outside it's

So set resident here the skill company. the is in

a markets of borders certain us different expand do opportunities and themselves we're opportunity we when outside, for an number outside track well to so. U.S. to present think and/or to it's continue We suited appropriate

Samir Khanal

I the considering And guess not supply the question over slowing you supply to strong road? XX say, over do down. how the next shifting down think picture, just picture second are my fundamentals is mean, to When developers XX months months. I about XX, How are, XX let's

Joseph Russell

were we're That's XXXX closely. so. were watching predicting in about about developed again. by to plus in minus in nationally XXXX $X tapered It billion another new XX% or down XX% something assets Development XX% delivered. In or of XXXX, range and we're that peaked down leg that

however, been there. more a cloudy play figure Going less out us very We into do has to with that what could out activity land this, always through. bit continue competitive to find for little a to source and think it's sites XXXX, cycle good

Our development those of busy opportunities. kinds is very team sourcing

into return and/or invested from through the on and going in where the we entitlements. activities, levels or been window it's have capital for very put been have that drive redevelopment. extract look and investment our good are of we continue development a us through development we're able And actually for sites, either land highest to different to for look value So good that to typically jump to not

So so. we're to positioned uniquely do

front. we're we great arena, team the self-storage As the of industry. development I going individual we'll submarkets by on continue far, from and activity biggest like nationally down have on and as platform We're in right then the relationships, kind to continued the development play we It's and in into development national. well. the And public have to mentioned, deep, acquisition monitor only just able that's activity what to see the tap through

Operator

Morgan question Rich Stanley. with the Hill next of Your line from is

Richard Hill

Kamdem today. I'm on Ron for

painting you're a long pretty medium think growth picture term, about I good maybe the term. over even

back versus So external I internal take and step wanted maybe to a growth. unpack

similarly, the think that Z into you sort external talk ability of to coming how generation you there's that's push maybe think importantly, to a levels? internal acquire but now the and As more done plays that's could growth, opportunities several like just you household growth? drivers and more formation millennial past years? maybe demand portfolios off you growth rent about talk over continue through the entering can to big And how about if to years shouldn't other about record the then I say importantly, about your And from you've

Joseph Russell

toggle storage for demand. been can exact their about of kind optimistic coming type opportunity your yes, of the use are So many the that Tom internally, users, generation whom see and are reasons, same I I in, actually we're of confidently, and we and the answer a demand factors to around predecessors questions. through generational now But do playing did. again, definitely say the would consistent maturing newer There's

on dynamics, particular self-storage working things et powerful in of life individual and Association or nationally. the space, more has cetera, that environment, family it developers X continued on will that assets, And years, case housing, external by have this particular, use it the needing So relative side, of changes a general, through absorption play from and there's and very cost events delivered, in to an home The are annual many quality the in all we've in Self to Storage which of the and we're tracks say, last able that. population tap. continued over over grow been of X to basis, time, been then just to do adoption confident good this

are that assets buying about shy been haven't We than less stabilized.

of the Our right for we XX%. assets average contract, instance, now is occupancy about have under that

opportunity weren't out us there's come our confident anything that the to for far good haul. intending quite of that in be have sector be is developers We're and good, still external quality of know to as is a there to to necessarily go quite from that time assets to stabilized and many into I add has strong, pool our acquire. that, for group acquire for you opportunities So buying here level of have elevated a a and inventory go out if But that? too, And well. the growth, knowing about been are long the the and that set self-storage inventory good from out amount don't cases. first want assets Tom, there's stabilization that healthy

Thomas Boyle

no. No,

more Monday it think on spending I on time well. we'll you some more highlight I'd for topics And these detail. covered our be in Day Investor

Richard Hill

And see what guys. signs of media market. Certainly the see I'm housing a backdrop narrative. ultimately despite is any really we helpful, don't a bubble -- That's favorable the of ultimately at some Yes. for getting

So over what in the seen. no there's digits, that the that that there's that indicate can't if to continue to certainly, an levels record reason probably remain, be single term. you've from it, would But it to is rate mean medium you the growth? seem capitalize normalization above-inflation to And some right at characterization? Is a for going going does your HPA rent mid-high call

Joseph Russell

for appreciation If is your growth price space rent for that storage a predictions to linked definitely consumers. and home out, substitute play as

over growth So potential nice to rent all time. contributors

Operator

Truist. of next Bin is the Ki with Your question from Kim line

Ki Bin Kim

of probably So of some there's a some of never but and opened when now. kind down, are that mix opening good portfolio, really that you shut markets the shutdown, just look across quickly

is to conservative? is Or confidence confirm be reopening cohorts. decline? could look would that that occupancy When learned kind that any have you of lessons maybe mix of those at you or So there called that being give cities, just might

Joseph Russell

a a we're It's in to have periods. definitely Ki It's noted may or reversion something watching, prior something, normal more that hasn't, elevated what been in any however, to way, Bin. change

at actually back early up," or some been markets look I "opening Texas, the states on that for we X Florida say, side If two would you of demand our instance, in of healthiest have as we're those seeing speak. drivers

as even still into either or consumers of are normality, level back very good. So coming is demand businesses some

the fact, on In it early than it's side pandemic. anything, percolating if was the higher of

demand to point or for economy storage. that factors strongly business any other would there there's large, on, to sales, opposite we're the side, that drive something are we've can very validation has, fact a it's there's going all change metrics. So reversing the evidence no something the shift other been that in near-term that the overall it's on drivers And anyway, seen that overall whether yet with really to that that any that that are migration, at additive would additive see going home

So to closely whether it's or we've of as South down it's Tampa, right Dallas, And again, at activity we're very Houston, good San even very them, big whole, submarket too. whether cities. watching look if Texas take there, Austin, you for a each in X basis. X and a But in Antonio, every going drivers Miami instance, all got strong very, to Florida, presence a

business but keeping validation it's eye product a but So resilient, storage and now. we're a looking on tracking from -- it's it, the standpoint, that right consumers quite not are and for an is only very businesses actively

Ki Bin Kim

pretty hear. encouraging Okay. That's to

not on sure recurring second a provide CapEx you been wondering apples-to-apples, around bit CapEx. used guidance, looking I'm if this what at to provided guys any if that? but commentary can I'm The question, a you we've than higher

Joseph Russell

go as than years, of we after million Monday our has that $XXX activity some to, disclosed program it's it CapEx on through But Tomorrow to acceleration of plans and slowed the to for the Ki well. down the And program we been by step really Property and been had of pandemic. Happy tied previous driven it the taking incremental higher in our if Bin. million Sure. into $XXX that year, it's I a we'll think back

about as So LED call and an $XXX $XX blocks Property it, so accelerate and portfolio. $XX CapEx, million our then, $XXX additional, investments solar in or program it Tomorrow $XX building call of the million it, think there, in million if maintenance plus through million of run to you to we million, about the regular to that and $XXX million seek

Operator

question from Balaguer next with Green is line the David of Your Street.

David Balaguer

most to little And could an wanted costs property topic on seems With on have development supply hit seen forward? a quite a how just property development, to increase? extent across that focus what bit. looking moving costs construction as your a sectors impact platform, construction to have you Sticking that's much to bit that been sectors, have

Joseph Russell

that component steel cost, watching one is for we're instance. The closely

labor of. keeping a to volatility some been Market impacts that and could we're from there increases there's be price some there standpoint. some market, So track

in So it's fluid. be as unpredictable It can erratic some well. and cases

that close it's I more But now headwind at something costs potential overarching time. costs. kind over development keeping on. definitely specifically steel X that a delay for project eye area right stop wouldn't either of those how say looking it's some indefinitely, actually just we're become a is we're to the So trend we'll an somebody X or see but

David Balaguer

question. Got follow-up And a just it. second

recent the to occupancy For on you the quarters? to idea lease-up quarter us line acquisition, of subsequent time can an activity the general besides acquisition last compared EV and give there end storage over couple acquisition

Joseph Russell

pipeline in occupancy acquisitions of million the or around or that's $XXX amount the unclosed XX% roughly Again, of Yes. our so. in hovers so

So of combination the to it's which assets, of some just coming are a market.

stabilized. we're a levels that would higher low are So occupancy going few to them others assets take much range. I it's a But that of and more very to call

As the of into need I we those portfolio. about more lease-up. noted, space we have not Frankly, kinds bringing shy been to assets

So us for with. better-than-expected pull on would environment into them put that we're it's I the good and, platform, our a very good say, and into operating opportunity seeing assets dealing based performance portfolio, the to those we're been

assets quality So have and that comfortable we're hesitant good that buy looking maybe for there not the and are finding lease-up others as aren't to with.

kinds there, hunt we're and those continue assets. to So opportunity good seeing set of we'll for

Operator

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

Todd Stender

ezStorage, used the you're remainder where Probably uses for for the budgeting to with you and seeing as and just as you year in as external sources billion for sit the far the right what fund capital? of as $X.X $X Tom, billion now far bonds,

Thomas Boyle

Yes, sure.

bond into market highlighting for $X And with the So you're as see the we for able mentioned, get And to pretty continue ezStorage volumes. quickly billion. we transaction Joe post weren't acquisition the to good opportunities as if guidance that in year, released half that's yesterday we expense to second uses, the anticipate interest access we'd and the continue the likely into percolate, and market of embedded the bond those sources we'll volumes afternoon.

Todd Stender

then look fair X not that to debt that we when it. of does right to Got start across coupons for say? preferreds at the now? Is these competitive those make cost the And tranches,

Thomas Boyle

of different. the quite are the those them and features Well, duration of

in in at we different that look so did cost, costs around about preferred X%, certainly, bond as but profile. X.XX%, also we the very And very different X-year

sources on And so of we maturity the duration balance cornerstone structure, financing. over and about to stock been continue and profile out lower capital strategy spread time as we'll diversify talk but a Monday, more we've sheet to the adding shorter-dated but cost of our like preferred

Operator

And line your from question of comes Mueller final Mike the with JPMorgan.

Michael Mueller

quick talk core the -- non do here. two ones years Tomorrow. Just that solar, the stuff recurring? the are of Property about which you like breakdown. the Tom, appreciate many Like normal CapEx the One, you components Can extra about the how stuff, see

Thomas Boyle

Sure.

of go Monday. continuing some as through over were X Property have we'll we we're and And next several particularly the the In the that we the prior Tomorrow, of this runway, doing LED. year into a rest on So through year interior on and last We quickly basis. see years portfolio good we portfolio. moving detail this then on years, LED, an the solar. through pretty on exterior roll

to but we're maybe or then portfolio activity see more and the of scratching really opportunity But we that just put year on So for over or surface LED our next that more X, the solar the subside. will time, got some we've half there.

Michael Mueller

Got it.

thinking mean, just the land sites, first over of just dynamics opposed to have given COVID? the that ring how then at terms infill Okay. looking you about urban I as of suburbs, more And evolved in are

Joseph Russell

we're vetting suburban really Mike, factors. seeing material We're degradation both. versus any demand not in Yes, urban

amount that see team demographic that to do, competitive the predict development. we having right a dynamics ability good demand by new standpoint, and finding So have on were out factors meaning land is the any analysis particular based benefited for time much more that The sites of hunting from overall over sites less competition.

So very competition. some -- types the quickly. ultimate it we're the both that be a healthy our And seeing confident as overall versus of area. sites of have this turned call, factors, around prioritize data. dynamics to sites would vet got are good great hesitant interesting to as opportunities it from very that environments standpoint down specific got trade in those mix of the segmentation so as on pretty We've kind Frankly, and we ability demand other. I hasn't even we're the a suburban And less the that anything, I understand both over urban right business, or We've for to go land long with good X based really we stands. and we go would mentioned, that environment, trends into

Operator

further the closing for or Burke would now hand call I'm this showing to no I time. And questions at like additional Ryan to back remarks.

Ryan Burke

again and for good us to Monday at Thank a thanks the much look We Investor to all very you, you of Angela, Day. joining you weekend. today. seeing virtually forward on Have

Operator

conference Ladies call. and concludes gentlemen, this today's

disconnect. You a may Have now great day.

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