PSA - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Public Storage Second 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 for joining us for our second quarter 2021 earnings call. I'm here with Joe Russell and Tom Boyle.

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

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

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

Joseph Russell

and And we morning, obvious from some through you like on the business of thank walk questions. stating for us. second as perspective is to for up highlights will I I'd start Tom the our then Good by half Ryan. will year. Thanks, open and the you call QX, excellent. well as joining the

been our non-traditional XX% to reasons. has In several upward having year-over-year. for many platform to pricing rates wave is on used home XX% are they that XXX,XXX where in have never Storage vibrant abating. and of traditional using combination Moving a there welcomed customers time evidence little XXXX, A up pressure Demand strong from XXXX meaningful we customers quarters, first new of is based new were sales, are up Self before. nearly tied strength storage and with

moment is us commercial to companies efficient upon survey. certainly favorably Self cost or consumers This recent planned businesses a orange will residential highlight and team May adoption grow, pleased QX X in hybrid in addition, and to by work are In were a I'd overall I'd areas the results. that goods day. Deloitte being and space. Storage in a strategic for environment back to The and of is say continue to reflect initiatives. strategies a particularly to am our these door like confidence as several investor step Storage alternative like and to XXXX behind leadership of three looked taking hold Public by storing that of outlined you XX% according evident many on took I home gives our

organic First, powered by growth innovation.

Our and support us consistent efficient multi-year want and helpful investment customers knowledgeable and more to what has manager of allowed a property when and the with continued experience in they needed. technology give leasing

online leading Nearly industry has Our e-rental intuitive, employees simple. an now Self select platform of unit adoption it our Storage our have impressive. this customers of the better, the customers even What's as entirely new quality well. It's rent a has using for XX% and customers and up and this option option. opened excellent channel fast, to been embraced been

XXXX, In the customers We smartphone a account, team. satisfaction. are will also tool automatic to utilization, customers new clearly Storage impact been have customer to ability the along a labor including seeing manage with app improving via while launched rent. property PS for our we and channel on This their new access giving win-win already this their the payment has of operations

development, uniquely robust. areas is volume exceeded easy The closed $X.X $X Second, billion in are closed those QX. billion of Public took ago, under integration the on performance assets. expectations. growth redevelopment, All we positioned third forward have contract of and XX to has Storage is portfolio storage steps our four management. growth days nearly factor and or acquisitions, assets party drive and platform; Year-to-date, through Acquisition

largest are with the under of development seeing to properties redevelopment third under we party along expand the to this quarter continues deepening management assets and opportunities as program grow $XXX with industry. management growing pipeline is a in XXX pipeline assets million development by And to Our good review.

at value. compared million of Our additional with square the by is XXX% to a by foot of momentum XX% NOI $X.XX assets now goal of Overall, XX reach assets both XXXX. improving redevelopment of base had utilization strong to the sheet. XX.X% FFO is balance acquisitions. our this quarter, non-same-store exceptional our driven drive occupied portfolio same-store XXX to development, with third, yields shareholder assets on This and And

quarter business X.X driving balance one Storage bond _ the down duration billion Public leverage sheet with are X.X%. of significant cost tied the fund brand. longest in capabilities we the growth. through the funded drivers Overall, optimistic we lowest cost issuances along to to our core in has with in industry, Storage commanding to This blended Public profiles additional the transactions of with the remain about room

position of our core leading professionals committed ownership national markets, a every in part and Our business. by industry team of talented all led and

the Tom. Now, to hand will over I call

Thomas Boyle

Joe. Thanks,

into strong second accelerated driven by demand performance financial from the the both from execution and Our customers quarter team.

second same X.X% performance quarter XXXX. and the revenue Our from increased sequential to represented of first compared per rate foot. driven rate. acceleration by the realize to XX.X% factors improvement quarter store led in the Two That the of growth

mentioned moving allowed XX% XXXX. demand XX% achieve came which versus Joe from half pre-pandemic limited XXXX. First, strong And us as that and rates versus up to about were inventory

comparing increases of increases XXXX. also Secondly, rate send the not made in we up when existing the about at the did half of tenant against period pandemic onset the improvement,

property hour three operations of support will including a About through when ratably employee a estimate team was our Cares timing payroll, $X half we great model leading program we payroll attributable the of the the levels. year property expense that annual last we the The our the and $X.XX expenses. drive provide program And approximately same-store decline On stable quarter. in benefit the and roll the payroll quarters to underway. transformation per incentive each this of net benefit put other the by against tax, was call future. of managers. year, to is for and our property expense for PS will our use total, an in executing the in to a technology we half first operating improvements Lower additional driven up in This the did initiatives fourth decline experience, year place on those to the onto utilities, to expense headwind experience, to in year-over-year marketing Now XX.X% that stabilized at investor in and team customer day, property onset the discussed job more in reversing profile payroll, pandemic comparing On were expenses income properties In to specialization operating the pool quarter. a the expense in of $X.XX lead a taxes. environment. quarter-over-quarter a property

XX addition in also mentioned, Joe adding to the same-store, quarter or up a FFO. the in and the $X.XX and lease facilities was In recently of standout performance NOI as of developed million acquired

As remains is we season, and customer good. peak business leasing demand sit here today of at robust the the

shift to the FFO midpoint by core the let's our We raised outlook. or So guidance X.X%. $X.XX at

second in to the X.X% XXXX. same faster drivers, half. of to a store revenue outlook first the X.X% grow That we our X% in Looking growth from rate half increased implies the outlook growth in our for to compared at

peak the occupancy year. reflect to end trough of This of points occupancies current are business, in will passed now the return here at driver the to expectations typical a the by for moderate the about performance achieved. would generally from baton But second Our of the albeit at second in to has the from which big seasonality been rate historically XXX than be higher basis clearly growth picture, to quarter half.

continued We expense expect also throughout control strong XXXX.

for in performance the of our the are to is in our own over strong With X% of it this for activity acquisitions facilities. investor balance is the same-store as To questions. discussed expectations we expense day quarter. increased growth. Joe strategies are in this May year. second lease the I'll Our evident up, wrap up also poised in for our that for guidance stabilized business good turn acceleration incremental The at X% mentioned, we in non-same-store half sheet, given And of

Operator

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

Jeffrey Spector

a guess made. to you My afternoon. question, tie comments the first of good Great, I couple I'm trying

two I sales, and think, course remarks the comments environment in of to continue business about been verse work hope dropping that we of slower adoption How in know your the hybrid tie opening the months but guidance vibrant your the positive sector, together? you've bits occupancy Joe those steadiness in of ahead. I do and overall through the

Joseph Russell

historically questionable, itself is different and seen drivers Jeff. drivers for seeing half and we year. thing would a momentum is, what as mentioned. The play our reversion we as from but additive of to We're that into some say strong. the have degree the the business some could The quite metrics we've seasonality I normal noted traditional guidance through gone second of that's of Yes which

very Now But that determined. has last clearly but to in based typical be continued or overall little seeing shifting we're from what we all as level if quarters we're a as markets we've have still could the seen for healthy from on be that's it that clearly by pronounced see seasonality momentum continues may relative markets. that not degree, customers in several We that the To as as some not a our demand. of pricing basis strong and that as to pleased of soften abilities a the on demand standpoint. or were demand bit seeing across movement be quite very migration

Jeffrey Spector

up And about grab Is aware I remarks. more? sorry, starting little on you. business to customer. of then of as do follow Thank commented any bit with that you my initiative business opening to Are that not at you here the question changing adaption more I'm guess, you that PSA. I'm on again, customers. that And customer? try initiatives a can something is Joe, to new talk

Joseph Russell

both cohort. So see a blended to either that will had always comes and we've focus Property a customers. business on degree from consumers we demand of varying property Jeff,

space with and level just drivers. with economies, of different the are both different you elevated seeing, But percolate an consumer back that or the of may very to not economy starting the with coming Our one to properties ways. many businesses years again, Many used many can we're as imagine, activity. two active economic have ago business and are the business customers, too, opening up in resurgence

both. Our to spaces cater

have each a consumer activity We business. to again, it's continue type and good to whether of cater customer a or we

Jeffrey Spector

Okay, clarify. I just if sorry, could

been knew So have I'm fulfillment more sorry, initiatives, micro have has of like initiatives. that not, peers clear your should I you are like I don't one you

You're that in not. Are direction? moving you

Joseph Russell

property, the of continue types customer of a to higher of Both might location the that on we're demand oriented business seeing from see speaking speaking have of of been types depending good cases, activity. customers a customers. very to Well, you another, holistic And compared both and types activity levels some to good I'm in mentioned, but customer has I not we to more as I'm degree from activity strong, both base.

Jeffrey Spector

you. thank on Okay, Congrats quarter. the

Joseph Russell

Jeff. Thanks, Great.

Operator

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

Juan Sanabria

Good morning.

up wanted COVID. increase comps the with helped the was of out store half sorry, rate by year on customers. no real And customers came said sorry. Just to rate the bumps through to commentary due I'm being easy that existing about follow same to from increases revenue, last passed you the

away decelerates? Is kind of how or half of us point could last having what and here then that reinstituted to easy you rate in growth not rate new sit I second At goes customers does necessarily, that, that I where equals we So you still year? should guess, strong remind XXXX because comp about if the XX% nearly bumps year, levels. that think of guess the you're mean

us you your half? components about So second help how out to that year, the think this those if experience just plays could relative in and two

Joseph Russell

Juan. a that's Yes good question

the didn't quarter. the is we headwind fact as can it by increases send pricing pricing third year. this the expired. to I primary increases the second sent our in markets. magnitude in those more existing we a factors, match the back the year. And is, We And secondly, wouldn't So send power those last them this up this year, that we year, goes second that reason send year, are under majority And in with highlight that that of quarter. rents last But of we the did driven moving been of in previous well. two as that significantly us were then of one they as With versus being as are, tenants many having many, the gives elevated year regulations really half which

the to we both So rate those are tenant to move tailwinds second magnitude existing half. as

existing on a we in anticipate big back So don't tenants the give third quarter.

Juan Sanabria

Could the the I'm your And historical sense assuming the past? give off bips than the sequential occupancy less more deceleration. comes store the of you're number that compares just Is guide, that on same in piece XXX the that how assuming of just to of a experiences revenue in XXX or us you trend?

Thomas Boyle

Yes. of July of the Juan and generally of the actually had it's occupancy. our of We XX%, is historical right July. peak in speaking, the the ballpark middle in of actually, north occupancy middle

drive this of existing second customers pricing driver June more a XX be how occupancy strength there the or So play half But a will in real and little performance in think half, from and keep though, that talk for the incremental and there's peeks will overall, line. I second can rate, new there. is bit numbers, in to half? here but the The the through the little we had you highlighted bit through generally be customers, story we meaningfully can second about both

Juan Sanabria

you clarify, to necessarily off July, typically, that this August. your to come early peaks least occupancy to sticky, but said mid date at That's Just pretty hasn't year.

Joseph Russell

it a to little has No come started off bit.

Juan Sanabria

Okay.

Joseph Russell

at still we're peak the here. mean, of the I modestly. Very season

Juan Sanabria

you Thank you. much. Got very

Operator

question Sakwa Steve a Evercore with ISI. of is line next Your from

Steve Sakwa

capital acquisition first of obviously pricing looks kind I'm pipeline, deals? how busy just I for just what kind Thanks. changing sellers just like. the And amount pipeline extremely today the guess the forward chasing on guys year. of the of kind given expectations this you are curious been of kind of have

Joseph Russell

No question. Steve. Sure,

we've yes, been busy. noted, I As

to There that's continue of is the product to amount fair be market. expect We busy. a in

year. back XXXX deliveries very plus to assets, step or about of values, six that then peak bit to four XXXX. attractive, asset what as over being been pool good a assets to in new down and minus delivered you many or very amount has five year-by-year properties year. capture of been that assets ranging per XXX that much quality products again, we we've we XX% which been and a feel to hitting similar think XXX or in build If last, to out from pleased sector was at that whole the over well. years say, another how new is last XXX the There XXXX. this quality you the good XX% been tapering again, delivered take But the with of to are tapering market in And go fair has And five down years,

parts we're us that from investor or data talked targeted standpoint. about underserved been with we be So from a market some value pool that to amount markets our to the we standpoint, relative and a capital in allocation on standpoint, tools Much we've also of been market the we've unique a very we the of has of that of have that of may day to predicated some acquire. which have pleased that guides able the this candidates of been storage to that markets new entering

and competitive. about to So way Valuations acquire is doubt no different There is in underwriting a assets. are we're choosing too that which that it.

point, anxious were Self to get fair amount we As of capital to still seeing into a Storage. your is

see average to them bought XX%. those outside occupancies us lease right of and been great that. the plus One been our assets pool look XX% returns levels growth platform, tighter buying of stabilized as this attract on very ways around can that that maneuver yields. you have virtue And the of put far into to that storage typically at are to able competition, year good greater easy by average, or stabilized. assets that assets revenue good is If for up, More we minus we've of assets not of

this activity there or a a good on second many So in basis, to sellers time going a to likely it's at are whether is continued and forward, product XXXX. looking market there of environments bring larger the portfolios few to is hit half off one

primed. well Our capital is

optimize assets. leverage. to the amount we've see a underwrite and we to mentioned, our of and been continue of we're good allocate opportunities efficiency to fair very continuing I As to able And cost own capital

Steve Sakwa

of on of capital You which structure, to touched second my sort kind leads question.

take to balance sheet balancing I the maybe guys rising today pricing? of are lower of use and using leverage and returns that of sheet against with how clearly and deals yields. have rising the balance use of more pricing mean, development? you been how sheet weighing and is up But You willing deploy as the are offering means the capacity sort the you balance and sort point are capital lower

Thomas Boyle

allocation increased One, good May, mentioned in million Yes. investor a questions from day further Joe pipeline of quarter outline that comment obviously a capital. do continued on as about it this bit we your well, good maybe of in increase embedded XXX development we view and there. few there. plans by to the the

addition finding a will our them that, debt return to of lease a marginal that to are earn as and of take then but based good rent on mentioned, capital cost ultimately meet we to ability cost returns capital, and In and overall though, provide our stabilization good properties good growth deals not there. up from Joe just

and capital So our that balance exceed good high to unsecured sheet still fund deals debt quality overall to we're priced use the flexibility cost have finding attractively of we across the board that. will

Steve Sakwa

thanks. Great,

Operator

Goldsmith next question is with UBS. Your from Michael line the of

Michael Goldsmith

quarter. that are suggests Hey average thanks math guys my taking that question. the XX% the lot average some for a some Occupancies the above for Obviously, elevated are below.

forward or think them? is, do below? than occupied as How there's all your operating seasonality differently how more Thanks. where you completely between them frame you then we upside? XX% you expect like can the pool to the should And same some are anticipate we So experience those stores same store differences much or help XX% -

Joseph Russell

Sure.

driven that's but there's XX% market are time in has market do really have our occupancies, that's by versus We the the being at quite something spent look that that customers, that differentiation strong markets, performing supplemental, lot XX% well. looking the tenants new many about dynamics really country. into XXXX. across persisted And year performance, clear of existing you us maybe highlight also the in fact market So ability talking last a of the to by that And attract to historical. are if we

it's was falling So the to drive it's the But point, here. with allowed as or half, and in to occupancies but the story occupancy really I even rate. balance occupancy that And second there, to to quarter trying mentioned, We're higher. this creep clearly driving versus at from rate. inventory modestly XX% versus looking that occupancy second about trying drive through incremental

In there terms within the of some markets standouts. strength are

as there. look on, Joe activity, have the we're there. housing you of there. strengths seeing Population business, think We view discussed, in that If the about growth time. counter more we strong in state drivers counter really encouraging that point were the cyclical And demand our at which instance, did when drivers business last as strong we some see for a economy driving at driving particular this going across as what's those Florida, we really is year procyclical activity to

and variation encouraged we're there that by market. some we by So see will

stay will and warmer question different there's occupancy terms markets. that fall occupancy tend than bigger influence of swing to see which it'll which our a In vary. trends markets your definitely colder on will instance, markets But seasonal our in for markets that, will which,

Thomas Boyle

driver markets just levels those side looking from high in coast way for the our most west activity add and the country in another southeast of The even right to and barbell on some extremely different XX%. Seattle, poster amplified the coming of talked because of businesses, of speaks Houston again, etc, just tight supply parts that mean, dealing new lower we're has Tom Texas really down down, of some I of activity taper part with which signals about Michael, levels. amount those are migration added the all occupancy, at That of and is levels. that even seeing is from which supply, a actually no primarily for is now, San at limited. can the Yes, Houston, high many child we're Diego up is what and/or demand of occupancy normal, occupancy degradation all to markets for to see and returned But not opening the is we as markets other been to and in it's level really which

we're if market even we strong. signals occupancy higher to for to continue markets pronounced any very continuing market look we're band So and fill reversion. up quite has quite and supply to But a pleased is speak, been see that tight we as there's to that any

Michael Goldsmith

of it portfolio, helpful. rate, you the it? with maybe of then storage able how can now That's growth acquired performance additional any of got And properties they to do the occupancy been of up you Thanks. been much or performing? easy break about you've And sort how an you've can if XX% market you are able is kind within since are in to of lease generate the to some can you out talk reflective you at what it, talk versus share and initiative put about the of it and where growth? what is

Joseph Russell

Sure. I that the of we're into days ownership mentioned XX portfolio.

easy of about XXX. metro with XXX had properties north D.C. portfolio the the area and we're we now So in

good at very XX% The activity from about So today is elevated occupied. occupancy portfolio growth.

the a of we've we to existing good had remember, was strategies. been customer one things have that seeing prior you tools also apply portfolio talked that already our existing able deploy certain very and with the by magnifying expansion had customers. in cases or that about the possible good very operator, is, to those, in tactics in of tenancy, of about relation sophisticated properties the that but good We're owner process about own portfolio of we and some into XX% to the just If starting cuts, expansions begun seeing good we've some level transition integration, size inherited continued pre-entitled. markets XX,XXX We're again been integration didn't

for of properties very first place. property most strong gone a look we've orange in also the the well. district seen taking They hiring that through very great is into good the from managers have rebranding. number come wave and and portfolio a our as integration too that of So part, managers

overall, mentioned, assets very in and operator I what continued seen. we've beyond that and to very far strong market. Washington quality from have the very So a pleased as these is additive to standpoint And other of presence what with a in market benefit we, see any we've the metro do

Michael Goldsmith

Thank you very much.

Operator

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

Smedes Rose

thanks. third to to you wanted XXX Hi, by on to deck maybe properties? to space? Is brands from management in driven just that just ask independent and come think path also Or new other are end party that I online? the you a get I adding Or converting the properties year platform said. are little more about the XX you by mostly

Joseph Russell

XXXX. Yes. the goal it's Smedes

that. our of continues So off is grow definitely development. part new on we're level process through platform fact number size some of tied a properties driving and the the And a one that developers there platform your seeing industries, activity that the a the still to of high we're backlog points various I path a that of to continue of our stages to to To in lens, mentioned with it that different to development. to our opportunity the and It's are clearly the development, come active. is multiple where seen grow program. that point, we've

we some one us the the are as into with assets. owners to of assets finding also good now and assets well. bring program existing have having that Many to say said opportunities two started Now multiple or give starting are off

the they're within come the the So continue being think that's we indicative to I and to have the by platform benefit storage public that performance of into show the owners brand. seeing that

The other actually assets I that into as now well. have out the is program pointed we've come thing acquired XX

to for So have many in actually assets. saying back are to and to these actually would we channel us get avenue another us interest it's who or owners acquiring coming closer

focus are build team our nationally. program. that across literally drivers we're the to operate focused to having on multiple and we We've we states there's XX continue a widespread as we've going in. got that added, The that the So backlog that's assets

continue forward we're the So and as look well, pleased grow to to by program. that

Smedes Rose

just Great. in a the a Thanks. last, of look XX. any just the you And just, of deliveries past I, relative down ask outlook wanted on months, the change looking last to little I pace going seen that what few supply the then bit your any you XX% of XXXX, kind about thoughts you're you over It talked might think to updated to picture call, on forward? in XX% for or I like have sort with supply leg of kind

Joseph Russell

likely Yes. coupled I the and concrete, we've whether that added is fact cities. costs processes come steel, volume are mean multiple into component the with low elevated, color etc. And right, One to labor, the that are that approval that view the you that's of is that at amount give you XXXX. looking at it's had, thing we're seeing

for stalling and So been development predicted of that's, XXXX. going I some starts the XXXX have that either think might into

understand right cycle on eye headwinds and through see playing close own development various portfolio the into it. a and now. keeping are very the we're that deep We're our So in clearly

cost different off some got pre-bid or could that we're accelerates. if moderate certain activity and we've and flatline see, what or Fortunately, through pressures take with beyond. of could the how it's understanding happen could XXXX, to I But XXXX advantage ways down assets. then developer laid components do combat amount be a that or again, based XXXX. likely bulk whether in is that to seeing to you what's and are assets that knowing either it be so surprised coming of to one of unclear to we're you might have would step down that It more and in talk XXXX on the the buying not

So we'll see.

Smedes Rose

you. Thank fine. Okay.

Operator

line Instructions] is Ki Your [Operator of from next Bin Truist. the Kim with question

Ki Bin Kim

Thanks. Good morning.

touched up you lot to some some proposing on So it performance, But when LA, already of more but by at well, markets market obviously a this. the some than market you that noticing seems just markets? really you're revenues markets it between Is elements market these driving there net that's the York. New and are are performance? Or other in migration or you're Francisco San look relative positive

Joseph Russell

I question growth from look I'd really overall broad the quarter. strength. Ki based of we're you our say and mean, quarter the seeing Bin no markets second acceleration first at in all strong

experiencing market and a some Texas, Florida, I as Joe clear strongest forward now, well. real our market. Miami in what Sunbelt strongest what as there as What related that year see put are highlighted in being Texas a can weren't and Florida reiterate we're where San at and markets are as markets. is population clearly we And think driving markets I York's a I Sunbelt our the you're strongest some pandemic nationally you some Chicago was would would with pretty our the into we is highlighting variation, for call markets, them you internally I'll there this time, it to we relationship dislocation highlight which of as is that I is they strong of that earlier And there something meaningfully and because earlier fast one strength is fifth bucket some instance, portfolio. well consider and think example, view largest one some a the or New drivers shift our which others, diversified Housing put between markets I an seeing last mentioned macro demand. of as so I absolute Francisco's inflows. some and on year But

same-store XX have there pool. the about in stores, We

versus up rents XX% XXXX. Moving

macro a real drivers big So being by and strength. market fueled

good the In are board. performance comps, terms Miami, demand occupancy coastal really instance. frankly, good. But the North compared for if still Year-over-year quite now you tougher push to I markets really sit strong and in we're encouraged demand look rate. were at trends And in some bigger of across demand of we XXXX, Los still in of those here versus markets we're as we the what and and seeing drivers say, Angeles in to XX% right strong seeing occupancies ability what we're there. Los is the seeing mean, Angeles there strong. by

and would I causing here over last factors are to into going some are years. performance have that these supply there some But some to add come we're and five markets of encouraged. we just continue pretty generally like see impact that from the new differentiation So

Ki Bin Kim

it's any value pre-COVID. in been noticing a typical a past Are over it. Got year customers the moved have in profile now customer the customer COVID. second a little that what bit lifetime over question, look stay like a that you since would difference And versus of year length of or the

Joseph Russell

tenant a through about longer this the shift length year. spent time persisted. talking last strong and see existing of year We year. really bit That's last We towards through stay of performance good a did

well. for not performing instance. value saw improvement a clearly But XXXX market one really equation. the year in lifetime Still at The So highlight tenants rate from of is this from behaved moved were expectations. in in that pre-pandemic have that have more Customers really-really last our that the year last house year. customers storage and have thing or continued moved well of ahead typical perform that we portion like I'd

good seeing significantly So stays, rates values. to clearly lifetime length higher leads that higher if and we're of

Ki Bin Kim

Okay, thank you.

Operator

of Morgan Kamdem question Stanley. with the Your is next from Ronald line

Ronald Kamdem

Congrats the a quick questions. quarter. on Hey, couple

magnitude sort or late charges you Or the and still curious still The first of there's Is any restrictions portfolio just on back just it to guys are ballpark of is sort about talk the way quantify administrative rent XX%? as in was the that the fees? numbers. some, normal? a on Thanks. is restrictions still if at X% is there of or to there well hampered? sort what potential And of Is that big increases.

Joseph Russell

Sure.

around rent So question the regulations. first

the state pricing emergency For through move past many push a restrictions. of was half the in this year governments those local there big those to of have first and expired part and most

and longer the in part Angeles XX% of we highlight from would so one is in to the they're emergency And no Angeles. Los rental the place. for to restrictions continue state most wildfires of a Los meaningful here be about one I our for activity. us tied pricing our revenue the constraint is is on with number market here that

So highlight. when that's I

are and many-many tailwind there. as half And those to jurisdictions were There in see your we a have largely the tenants put That up the take then restricted was back is have will local been. markets country. on others to few it across where existing on rent second last time where otherwise they The fact in we But to would expired. place. here We year move some fees. did second a question late move

the highlight back Some I of And fees, to about the don't fee and Ron, regular restrictions the processes financial through there a regulations. and move I drag to looking drag remain governments rent last in talked be were Bin I'd a to the as Ki tenant it as half. driver it Those and for impact year expiring saw the big material, are relates sorry, to similar a last first lapped that our year business. Nothing continue from we quarter. delinquent in to time anticipate place we've negative but are that we've we now second throughout get would this fees to

second big So quarter. shift in that the a was

Ronald Kamdem

expenses Got Helpful. it. be bit. bit a going in e-rentals? color on-site big makes And all little just to payroll, but taking more Is manager the lot just there? that? property that was on just sense, a What's you a driving the that marketing sort Just know the a Obviously, can man of whether decline Is the color hours? question little drop? the it bit provide it's the XX% little more you on less of second

Joseph Russell

things it digitization and that just the variety of things infusion that doing the It's from to number you a Ron. the we're the points Sure to of spoke of business.

about property and been pronounced operating labor. typical necessary happen would We are Historically entire at minute think step our optimized XX% having centered a own half the so customers with the to that a if choosing lot at help to option. at it's this or have analytics case XX are if of transaction that of of do industry. our mentioned as I you choosing kind always election for back about that e-rental process in manager level longer self again an that self-directed XX and traditional electronically customers their is to a the counter is us no for the model necessary storage and a effect counter of interaction that the look on

preserving it's labor giving of us satisfaction. re-prioritize So while opportunity and the but actually retool levels not also enhancing to customer utilization

mentioned that we well think customer's and So that's a as perspective both perspective. I from working from an operations

different using it's We of month of time of right the people the again the and continue to whether that we levels variety at a places data the of at to in put tools activity at analytics properties week, look collect those times. again time relative to through amount the right

plays good and as of things optimization much different customer more come we're in a a standpoint see that to this way. So out from levels again from continuing to optimized

Ronald Kamdem

you. Thank Helpful. it. Got

Operator

of next the Our J.P. from line is with Morgan. question Mueller Mike

Mike Mueller

Hi. do you see the management the sort term what on to third property you scale business as party curious to do have Yes. I'm count of and it that? up longer margin hit what

Joseph Russell

Sure.

XX%. So concentration vary to XX% - us will path that certainly to margin for a is up but margin and based geographic that like on the there get

lease the taken look of as to many manage the point performance are drags we've I grow that's think and to as our one at going this that that at margin look is to continue we fact the own of properties in up this we that to business.

would below next and I particular bit the and properties years in good are we size that look and a scope lease for our margins So the several increase that up. as anticipate to with

Mike Mueller

Got it.

it. was you. Okay. that Thank

Operator

questions. Burke there Mr. time this the over now will call no are remarks. any for to further I At closing hand

Ryan Burke

your for to us third today. you quarter all and to rest summers. of enjoy of interacting look forward We Thanks through joining the the

Public Storage (PSA) 4 Aug 212021 Q2 Earnings call transcript