Public Storage (PSA) 31 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Ryan Burke	executive
Joseph Russell	executive
H. Boyle	executive
Jeffrey Spector	analyst
Michael Goldsmith	analyst
Samir Khanal	analyst
Eric Wolfe	analyst
Eric Luebchow	analyst
Nicholas Yulico	analyst
Spenser Allaway	analyst
Juan Sanabria	analyst
Todd Thomas	analyst
Ronald Kamdem	analyst
Caitlin Burrows	analyst
Brendan Lynch	analyst
Ki Bin Kim	analyst
Michael Mueller	analyst

Call transcript

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Operator

Greetings, and welcome to Public Storage Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Ryan Burke. Thank you.

begin. may You

Ryan Burke

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

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

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

Of course, back turn Joe. have to free after it over that, feel you queue. With in that, I'll if to jump more,

Joseph Russell

thank up and our updated you recent Then and for the today. Tom joining Ryan, and you I performance you, Thank views. open we'll through for us Q&A. will call walk all

of fundamentals handful we markets. the broader industry. year our As We operating are a portfolio anticipated, started acceleration growth with across stabilizing in in the sequential revenue

continue. of rents with a third The are in down the in were reported quarter right we'll fully X% be from quarter as for now across be in financial many direction this is expect new for pricing will year-over-year acceleration year In trend when most Public improvement rents achieving customers down down improvement today, things move-in first October. This XX%. is X% But the are and stabilizing to and and meaningful Storage. move-in discuss results. We our time the take markets gradual in reflected to moving some the particular,

behaving stay well. strong, move-outs very average also customers in-place year-to-date. Payment length are of and long, down is are Our patterns are

and provide a down nearly to just get XX% into convenience move-in relative the more alternatives, to the larger speaks or including affordability this space affordable our customers. apartment With home other become moving to to of we we even since incremental have XXXX, space. All rents

the will competitive a of The convenient properties is path Self-storage affordable choice. the years. environment the supply of support trends. also and on over fundamentals next further of operating deliveries top new is improving couple competition new slowing Less on with favorable demand

growth-enhancing as initiatives unique well. us We continue are that focus to on to

and in is their across operating am systems customers, of to and creating digitally entire team's digital are draw Storage that the fully created These and our self-storage the hybrid corporate care digital our Public fantastic person the engagement of a putting major embracing proud full operations. team in and hands. options new most choose interacting comprehensive customer seeking industry's ability connects The representatives. center customers by to field and local between today. service the in cohesively provided customer model by complement modern I a efforts property managers, options experience teams we've slate

we're now e-rental, lease. And with using our of transformation schedule digital move-ins our ahead XX% tracking online on

created to customer members more our across team customers, win is and And We PS X across we digital service. have amounting on across using company. roles entire have our transformation users. financial a performance. million portfolio access nearly Through The win, property specialized career-advancing win, daily tenants app the a remote it, basis, and and our

third place now the proud to have career aren't we the have a part New available a received are received year opportunities row. for to particularly been in that our elsewhere for efforts, to in have well managers in Great they industry. Due property these Work paths designation as

Another utilities. of is area focus

We than by over at the have X,XXX far. at has innovated properties years. portfolio across a and installing and XXXX. of We conversion the rapid so LED implemented solar the more usage end team power to by solar past reduced XXX properties goal The XX% to recently lighting through few increased our pace

We in fully about more to gear are excited are and come.

additional provide will Tom Now detail.

H. Boyle

Thanks, with convergence and fundamentals following that a Joe. see buyer We and quiet one-off keenly and initiatives, around deals, improving market seller With of signs acquisition the we well picking very team up. is transformation more evidence portfolios optimization the of and focused on more couple years. expectations are positioned

couple cost in strong. combination pent-up integration the representing regarding and of last to growth-oriented stabilized sheet and Revenues of operational share, leverage, with with capital achieved Joe We decline Industry-leading FFO spoke last a is of poised balance core and third declined per Our compared execute quarter advantages. Shifting us to year, to. and our our financial our in of to X% liquidity to things have relatively X.X% capacity important stabilization A portfolio year. to on performance. compared capital note profile properties even balance dialogue rent $X.XX seller same-store occupancy. acquisition that between a

This to quarter the the quarter basis third year. First, XX points the significant Revenue points to of from second growth derivative decelerated of basis in improvement reported the to of of from second this improve. in last growth the quarter sequentially, second is continues the XXX year. deceleration growth relative

positive our to would the midpoint, first quarter Joe by than midpoint, described. growth we the fourth improving growth the Secondly, to At sequential begin implied expect years. our more improvement nominal be the as trends revenue due that in guidance X same-store

total the $XX.XX our through core be of third of this third XX% quarter footage, and for of and NOI FFO our G&A lower outlook. incremental XXXX the million engine for Currently, We quarter assets higher of square ancillary lifting per to future. pool the while same-store year. outlook revenue our the income come $XX.XX pool pool outlook increased Moving rolling pool. through beyond into to share, now remainder of $XXX continues. our to strong performance will year our of in and in growth for this We guidance stabilization to this The reiterated the from non-same-store the total from at an

I'll With back it turn to Joe. you, that,

Joseph Russell

fundamentals, long years. With reinvigorated Storage, Storage's further near, Tom. the and about over moving industry's trajectory dividend best platforms, and that past direction, continues transaction Public few free the are highest in are highest flow things and and Public growth operating enhancing to efforts excited improving margin, development best team our including NOI strongest over a conversion Thanks, FFO the leading advantages we brand, right enhance acquisition, capital, NOI portfolio, lowest leverage revenue, market, transformation term. medium quality the and many At the our integration of the and cost and cash strongest

management a And finally, teams to full I'd make X at like out Public the hurricanes. operations during Storage and to asset significant the call

Fortunately, had our grateful impact. and relatively are minor we to properties employees well priority, top prepared were have and safety with as the

With that, I'll the to to open Q&A. turn for Rob call it up back

Operator

[Operator Instructions]

Our first question America. with comes of from Spector Bank Jeff

Jeffrey Spector

big consider Maybe be I'll your to outlook. with especially start guys just conservative, you I picture.

guess, again, you're here, given talk of but made messaging here But about you it you little it's said, you which guess, just okay, strongly it improvement, signs you've 'XX. end a I the not that just housing, improving like into stabilization. expect strong you're cetera? seem regardless decision clear et more, is to of you does pretty improvement bit And the that talk as I that for see So and just seems comments the about, year it to of time means actually the you're can bodes well not going 'XX. saying like November, a stabilization about year, few

Joseph Russell

at the has So of that comments, a obviously, become degrees better predicted yes, we've and a progression XXXX we've market of the year certainly seeing I seen, that opening our in things, higher that as noted of we as Jeff, there's us of than beginning portfolio confidence stabilization, of across Tom year. the where more the improvement we're and few give seen

trend. continues to That

Now we're the to quarter into lead fundamentally of improvement. XXXX. Stabilization should fourth

So see trajectory economy, into XXXX. better growth market, things rates, in XXXX. well. going improved to XXXX continued we're And to and trending that, Many pleased into effects than spoken we're to we are we'll again, as very pleased continue by we're then an whether we've interest housing it's the with But in we we're continued stabilization. going too, see be through were seeing going position impacts a cetera. Additively, other what could what et by in have change the

Jeffrey Spector

has just including lower again, pressure into talked thoughts improved, demand as And where demand mean, if it if improvement, on demand you in the to supply clarify, to I you 'XX. really backdrop -- your That ties stays is, improvement? versus don't described, is just that about for improving as need you continues

H. Boyle

industry-wide this throughout Jeff. there, been he speaking there's prepared that, of different commented we've fact couple we've But I the Yes. year. improvement been number that Joe's demand stabilization things I think talking some we've demand. a a And on mean to including markets. seen in I remarks, of actually about mean, in all year of

the markets quarter-by-quarter third improved growth actually revenue it's throughout for some the but Seattle, on So year. negative early instance, is called out we of like for consistently still quarter, this

X%. just better that a And more. same-store mean that's so markets outlook for growth still Obviously, growth. that and for been revenue And that a we're leading doesn't be observing. That frankly, to our year, overall, there significant market seeing is down are other the been touch than like calling we've

a take of Joe his that first as in our and bit markets, here. as we So seen to we've remarks, time little on a you update to roll step, the stabilization we'll number stabilization of metrics, and recover move through will from obviously financial path a spoke is the but to across

Operator

comes Goldsmith Our next from UBS. question with Michael

Michael Goldsmith

X% provide what like think rates? in little been the October. around then street you move-in X% the that? there's there influence down on quarter, improvement to a Is bit And the more driving any also, in the can in provide you context -- down October update an just third occupancy is Seems do rents

H. Boyle

Yes, to. sure. Happy

see that industry-wide, we this -- where right? I was down And you it's roughly driven continued in as year, on year-over-year. we've to point the we're And would September, trends, move-in out flat by encouraging. call a XX%. year. is now rents The improving it's demand still So the improvements number through October, October noted, When started in demand

see stabilize, But lap setting what to we're starting may comps need fresh you some to And call that comps. again, here. to that's those so new lows and without

We've sit setting got that lows. I as we earlier, certainly are highlighted here have rent growth some move-in today, some but markets, fresh still as

through there we've in been this is trend a of as anticipating dynamic the So heading the fourth quarter stabilization year.

XX% In terms -- -- or basis down occupancy updates, October XX XX% is down of about points. further

Existing performing month. the in well. As move-in down month. the customers we sit X% down Move-outs rents again, year-over-year for again here today, are the are

customer encouraging overall. consumer continued the base trajectory the from strengthened So really existing and

Michael Goldsmith

housing -- recognize is and it. you driving I demand kind is in of Got more. better improving seeing it's some factors and from a demand particular, Just trying talked the about And are better seeing whether sense to there of little bit you using a a that turnover? comparisons. it just Are recognize think that you apartment are But other get you demand is -- of facilities renters? who any a

H. Boyle

a great that's Michael. question, Yes,

I driven think sales usage out home at through be years, frankly, talked customers softened. the more have year. this right? last using ran renter We've existing record apartment demand picture home, that about shifted over has we've the strong. space the The seen at of storage that same And time, several that demand continued are to has has activity how the of

year-over-year consistent And entering we pretty overall, levels the of into sit demand quarter. as fourth here

we're Speaking setting pending sales again, starting what point, watch from home this we're portfolio. is not yesterday, across to that the numbers demand is closely. here, for some looking that's that and going came we fresh we're housing what looking specifically, for, out at see lows, and not i.e., But to encouraging stabilization there all lower

Joseph Russell

saw Again, add Tom continuing consistent on thing. customers to certainly retain different, the encouraging no just higher stays but what prepandemic on than maybe, space things to with seen levels. We've very of and Michael, prepandemic. trend. And spoke that longer one average we Length than are still to of other many

at the stabilized patterns, delinquency here relative payment with again, et no stable the Storage. cetera, metrics base that view set we have to very and customer are And pleased of around Public different to

Operator

Our Evercore question Khanal comes from Samir next with ISI.

Samir Khanal

more, don't I in the let's trend it of the quarters. there mean about mean know, please. think next market rates, I need as you to bit to call it several through think that down see housing to I turn move-in we mentioned move-in is of X% that rates to trajectory way the October. Or the pick relates Tom, little kind over next, help a up the positive? us a that do

H. Boyle

Sure.

a looking what the of level So times is on really as demand. stabilization we're call already, and for a we've noted number of

that move-in see like should activity. As in and things stabilization a customer you occurs, rents stabilization

our we've year, mid-single the of in so down rents the for move-in end outlook at digits And year. the expected that are

But So trough like heading in it performance. that likely just of the then we're year the October we're feels based to on hit seasonally. direction

that that so assumptions year getting around number start in without code expect I take ZIP would would we that the at And the into clearly that point. to spring for specifics from sort demand XXXX, lift of the meaningfully improve seasonally probably and would of

Samir Khanal

dynamic? And to in on has of e-rentals of side. savings -- the year. is the expense bit there how function a kind the see down the months you're and of a of that for Trying ended terms in doing Okay. little just on that just quarter into even then Is just sort gears next September. year further this shifting much Payroll been X higher

Joseph Russell

our Yes, about leasing many to advantages our the you key Samir, that being, we I e-rental, noted, platform. digital one the continue lead One the digital relative our talked to platform. industry in

way now even using sets and that use to our the on the relative of basis. and continue So that we skill in their and XX% a that way to of they as employees channel, to optimization focused do using with can one properties which more customers things we're XX% optimizing

we're well. opportunities putting engagement for I different So relative interaction, property career as it's levels that different cetera, only management and customer in mentioned, worked specializations not et but well through as to, a employee paths, employee

optimization employees So news our that, for levels of the leads only but as well, our work to great that not to that for continues well. customers,

Operator

Eric from is question with Citi. next Our Wolfe

Eric Wolfe

pricing still I'm I elastic are preventing improved Are markets of biggest uplift. as you a the that leading very to other happening? there price. signs of move-in be was wondering just seeing Or in viewed that's if there? improving curious customer where pricing is any dynamics the just greater indicator occupancy from you've just effectively occupancy move-in seen should if or that the

H. Boyle

Sure. right? it's rental well both as overall, improving rate say, We're revenue. to to I trends balance as maximize occupancy would trying demand

is positive But points earlier, occupancy thing Seattle I you So at. rent certainly market there XX growth. an basis one year-over-year using look and highlighted up just a as occupancy can has move-in example as was

not momentum -- that some there's So in some based. occupancy there's certainly it's market, but purely

Eric Wolfe

you're And based how in like shift adjusting customer you doing, price decrease I'm occupancy. your from in the a when Or on that you I you of guess test of are assuming algorithms adjust you're potential responding. demand? that test that any the various to seeing seeing big potential points sort elasticity Like see changes pricing and revenue in is

H. Boyle

Yes.

and based come is we likely so rental step we to back, associated our to try that So units be, And I understanding guess a door. revenue offer to we're what to taking our customers. -- customers optimize with that looking the inventory what have likely on the in of our understand

demand to point around to is offer to price is. sort time, inventory Public an what the in opportunity that And have price we're for and is to testing augmenting and your understanding store. amount equation the we an to Storage what so trade if same for unit value sell, that's local consistently at those understanding are demand on they about sensitivity, given we And once of place the to inventory that but what price for we in. rent. customers we're our time. of lead to to maximum of online of there sensitivity, pretty you over unit your level. And the the a continue and we area move price-sensitive of competitive have the trying understanding the see that and new the consistent units lot But customers, And optimize revenue what been is customer At have what elasticity and those is

Operator

comes Wells with Fargo. Our Luebchow next question Eric from

Eric Luebchow

likely transaction XXXX. bit on were you into up. a sounds encouraged how You touched that's little market like by more this It about picking the

on today? give yields could transaction you kind us some activity spreads seeing you're on stabilized what maybe kind of of underwriting are and bid-ask So color where you're

Joseph Russell

this Eric. a have been few of interest indeed on the again, lot historic We've now level. on very track for there's have few factually, we've X-year quite a a to even behalf to quarters, been Sure, volumes low spoken last but industry Yes. potentially And which transaction done where, so. sellers' almost got trade, record

additional the some So rounding XXXX traditional those and again, in building. coming only there's now inquiries, of otherwise, through quarters, out not than seen even momentum brokerage assets even differently, channels we've prior but volume

to inbound going tough what a haven't yet lot to be of transactions on it's We've to a completed potentially is again had say that of lot even spread looking from basis the both private transact. yet. a calls, owners those Again, bid/ask to been because are us

encouraged we're there's, rounding the have, we're of would different seen. in low plays with going XXXX. we've opportunities a it'd by to But year be that landscape I large. price this for small the I receptivity expectations, of think, way and to et by how type assets cetera. of different into after year third the go coming that a years, to And volumes out the that, fact relative into that both market, out And say, see are X think, a unusual their that encouraged settled again, that, So out. and us We'll owners

Eric Luebchow

expected. you. think kind better That's existing secondly, you ECRIs touched terms I previously bit little Got of you customer a being in on activity guess, helpful. And I than then of

your customers Any that? are little in coming more at rents a Is to lower the push more color your longer receptive to would rates ability provide color that can that there customers or to helpful. be duration you maybe So newer that. on

H. Boyle

that pointing revenue Sure. mentioned, metrics been strong, I continued across increase, trends And to those the a we've move this we stays, The payment Joe there. it's price the highlighted. of all primary tenant activity, be remainder of customer base, be is existing think driver lift sensitivity very we it rate stable really pool patterns encouraging, strong the through a the that delinquency, is as in of Yes, and really, for to you pleasantly year. surprised customer and length outlook just existing vacate of which number year the rental and factors strong as was to continues monitor,

in the combination you mentioned, the price continued In terms of touch we newer moved that than to the and sensitivity follow as that years, rental through, contribution time rate program, a existing frankly, a move-in us that those in give over volumes it's as strong of particular, really as very program. of the the year, being well better strong, over rent our more customer X.X customers we've past expected given period increase

Operator

question Our comes Yulico next from with Scotiabank. Nicholas

Nicholas Yulico

Turning move-in to pricing. the back

at the you discount, the were of quarter move-in the look percentage one If numbers look like or revenue, year year-over-year. the they rents, a of one as higher They percentage -- highest third promotional also of of the in last up so. in

that maybe fourth in we delta we the sure should quarter. talk improving, about So the what's move-in like I'm bit talked forward, not promotional about the think little in quarter quarter? about And about impact you going the rents, that but how higher can in that promotional discounts know should discounts you third I fourth just because how think a driving

H. Boyle

-- still Sure. quarter. really into little a discounts ebb again, third year to We did analysis more the level flow bit use throughout modest historical promotions strategies. relative and the pricing obviously pretty and based Yes, the But the promotional unit at trends. on

it closer some promotion. the our received XX% quarter, XXXX, of been throughout or closer The between of the and for XX% year, say, have XX% first in, sort customers month In instance, have number. And period XX%. XX% that was so to third comparison would to

rents us to an promotions move-in as to utilize that that there's to So optimize ability for be continues acquisition well advertising no the -- plan. customer as question as there

Nicholas Yulico

just you just Or dollars, the helpful, the works like the literally just -- of and That's Okay. amortization there on the us that in just Can and the of promotional following sort Is up some of money how all revenue sort guess timing accounting spent the that. remind that Tom. I promotion? account for being as a it's is quarter? contra like treatment?

H. Boyle

Sure. Yes.

the that special a dollar the that's Our And in discount will most first for just you highlighted, as contra month popular promotion first month. rent. is that be revenue applied

on And to so revenue rent. September if that going in recognize $X we in move we're from of customer customer a X,

Operator

next with our Spenser from Green Glimcher Advisors. Street question comes

Spenser Allaway

landscape. just on transaction follow-up a Maybe the

what seeing marketed In are you're today? today, still deals? predominantly terms marketed portfolios Or is single of being any the it there asset

Joseph Russell

overall, on though of few inquiries, are amount some we're are portfolios to, still are with there what it's but a a smaller now market of well. we've over off-market activities I particularly would have there's that's continuing But and I Spenser, combination. Yes, activity asset been had processes again, deal muted, portfolios, or conversations the into are through, the, still then to as traditional, private but been starting come the that of The again, both some where spoken to in still that last traditional the couple that's us. And individual say, of larger a starting we years market. Again, lot different larger there mentioned, a small surface. no than as fair to

Spenser Allaway

quarter, And just appear Okay. it see a we say? front, Is you move-in like do were bit to you the an quarter. where year of are annual the ending math, give little on idea for able rents a does in us just where basis? were an the to And rough ECRIs higher that if on fair bumps that then ECRI back-of-the-envelope given the rent just maybe

H. Boyle

Yes.

to But I program third I the last the bit would what quarter, to that commentary or contribution their driving terms year-over-year. driven months quarter made the to performing strategy in and it over lot the to of spoken around, a given a had just their in customers was the I in really in XX a those agree, better better in that otherwise. go change Just by contribution newer would third little moved that's versus back XX we of

Operator

comes with next Our BMO Markets. from question Capital Juan Sanabria

Juan Sanabria

Just cap the for on you year, but rates. believe, yields. just curious actual expectations there been I of kind recognizing were percent market, hasn't your earlier looking X-plus initial yields on the of acquisitions or ton deals a closing, for in stabilized

just curious perspective down has general So come improved if as that's a unsecured from on cost the rates capital moved down the least side. REIT's to at and market have

So be on your rates just or curious deals. you'd latest expectations on pricing and where do to cap willing

H. Boyle

play. Good are more on means And I would as for last for typically probably year be been we're that's consistent for that's Yes. pretty Thanks, you is, to transactions the it couple we're and Xs. generally that's some state And over private next of way quarters, yields codes. speaking Obviously, and But so, the of the the talk that the is the ZIP code thinking have transaction last right the meaning the say we'll been sort that still largest Juan. obviously, about things stabilized or more to that was of but the consistent been ZIP And sort about. here we've characterize to rates. question. year, that cap of time, current occur acquiring has X% for in in what looking that that case Simply

Juan Sanabria

you bring of the to the about COO person to Okay. Great. And thinking and the a or addition? the what the or hiring seat as behind curious you strategy bring then bit a just expect little result talk if could

Joseph Russell

our you've that again deploy doing well. everything Obviously, advantages tied question, sure. and tools, relative investment digital optimization, incredibly seen as Yes, scale, track continuing without the through to that that the in is to leadership operations drives the we're we're things as and all to our our day-to-day, brand, critical the that

with to employees understands within with excited at us, XX certainly particularly over about him. role, last Sambar experience great teams solid Chris experience career many of drives large we're infrastructure-related, great the and he a technology his over for AT&T very had our of platform. AT&T the components joining XX,XXX years, what running business, In reporting So

So going key and operations all and excited to he's be leadership these senior to into to the attributes able mark that business on very ranks, we're are strong put confident otherwise. a the bring we're

Operator

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

Todd Thomas

I October customer. wanted Has you the promotions value now? I that of use the in ask move-in customer about may and and as we commentary past, some of X% go rent then back about of use some the to entering you the the promotions third improvement to the relative down there and quarter the saw that quarter. lower And think the Or think seeing in use the a slightly with the have in there promotions on lifetime changed of previously stronger sort you level attracted a and indicated response promotions? of that portfolio are the better to

H. Boyle

question a multipart there we'll into. get Sure. That's

The year-over-year third was the consistent of year. say, a different just to prior I'd promotions. promotions pretty So driver the in promotions quarter of in October, mix

we bit bit of and more a little off a used little less of XX% special. So the dollar the

just ground. that's more and -- on So tactically the

have customers and amount rates. ultimately move-in different and of inventory to conjunction are the the local of promotions, and terms They rental the promotions profiles. to try sell, you're we attract term pricing on with based used market to in dynamics different advertising In maximize in are have tuned medium again the revenue right, over the

Todd Thomas

wanted decrease my or down September, you XX then a to And from to clarify I Or provided you for that trying try so where -- did points. mean sits clarify the just for maybe end second do rate to year-over-year Can October, question, Okay. the was mean update basis the occupancy that ask decrease points? portfolio and just you the of provide you at XX an basis that October down is just today? occupancy

H. Boyle

a about we little was the good at talked the XX a more basis said have down had we on a out outlook anticipated. What And into through this and year-over-year. there, of anticipating as little points we've seen the to clarification bit update, That's we're that play decline was as uptick year, Todd. points we've our occupancy through Yes. and fall, speaking more And basis average. through kind occupancy I year, summer XX bit last anticipated

Given closer outlook, down gap But on seasonal the XX of basis increase it's through year patterns through year-over-year the year. average here. the basis, from overall in but a different the points that on to probably see to a some closing continue

then number closed be ended occupancy month end pretty it obviously, but month that's quarter And not obviously, that or haven't terms where similar occupancy, a end will October, you to But in we we of see. September. of often the

see seasonally, big So there. you don't move a -- just but

where September. just touch So finished a we lower than

Operator

Instructions] Ron next with Our Stanley. [Operator comes from question Morgan Kamdem

Ronald Kamdem

up comments. the on following Just stabilization

you and think sort move-in data on sort talked visits, obviously points of of of helpful. that different markets and anything the of website would data confirming other sort website story any But that sort improving. be are the I rents about

H. Boyle

Yes.

our platform to that conversion frankly, that as as talked into and year-over-year and that's and September and been really through from in store. we've October, of traction positive channels well. see to are Really good good web really reaching about So industry-wide strong we've territory the web encouraging, demand, our as continued parity we visits online as rates, through well a visits combination moved different

Ronald Kamdem

been And interesting was, then you've just I to XX%. XX% one stat my second think on

heard I right think channel. through the I that

to X on savings? And Just what you're thinking Is next implication the there? about there X is that sort optimal? cost as room wondering, be over the could more of years,

H. Boyle

right. No, think that's Yes. I

it channel customers complete for incentive pretty to steadily number complete frankly, more to of sort way continue embrace and customers are that their and any year-over-year. providing as customers rental the to just agreement. and years. grown more their XX% that's several not last rental a But the over utilize we're So utilizing to reminder, a And a about that's of digital our

to optimistic they before how career win-win-win, and of well financial that they think as their terms our both as agreement the And more choose channel their lead earlier at Joe we're will property next rental their and to the centralization customers employees so that that spoke over rentals, that years, complete we've complete how customers to alternatives several arrive that optimization the choose we to utilized and specialization continued opportunities, for will in providing impact. that about and

Joseph Russell

Ron, certainly our playing very embracing. It's relative speed, customers Yes. certainly cetera, and I'd platform effectiveness, through digital the add that channel et effectiveness And impactful of to are a the infrastructure is too. and

to as easier in that are as have well, million X our us account is users additive app, also, standpoint, comments, et management communication my now again, way noted the with opening cetera. We tool standpoint, interacting is about an much customers PS I on from

to bolting a these aggressively. building very and to tools The by mentioned, incentivized not they're gravitating them They're being Tom telling want very are us they are use on these customers, us So as tools. robust environment. and we're

standpoint, of managers still we'll that relationship ongoing require the effective but much interaction provide it, at service an well. more them our skilled again, can So app when face-to-face properties, transaction with, And is for from additional PS have with an level to as we different it's provide property customers a them one way then this us. through of

Operator

Our next Caitlin Goldman Burrows question is Sachs. from with

Caitlin Burrows

the year, and acquisitions is mentioned but yet, the seller this guidance I talked talked you about has we don't been the looks dialogue. volume. pent-up like It but for reduced think about

expect off fallen or above-average that have deals some January some just or and is timing So an mixture? you

H. Boyle

year terms the XX Yes, to up XX you would that element, the days. of is hit we the over last been really improve of it. throughout It's dialogue, anticipating transaction market But timing just has. in a which the it's and just it level picked have

obviously, have good the slip some as out start But into will that of acquisition we And 'XX. pickup 'XX had activity but under so of that we front a fall 'XX. of you in and come it likely in out the closing we're more year, close a speaking is versus the on to about we finishing bit saw to volumes, in contract

Caitlin Burrows

if just consistent and it. 'XX development. your up think that could then how and goals? was sense comparing of you own Got a I pace wondering maybe your own on And end 'XX in pretty of or will development 'XX. increasing, deliveries a Is to your give you decreasing

Joseph Russell

a for deliveries us this be standpoint. year from Caitlin, yes, development So record of will a

create hurdles that different more well particularly complicated, finish The many and the markets, XXXX areas construction consistent across and longer a more can work facing times, improvement we'll somewhat be that entitlement with deliveries much we're multiple development So of year-to-year development business new time that timing standpoint of includes of deliveries with level related. out processes, challenging, million that's development as about both as $XXX from the ground-up of of with the risk redevelopment. of

a going beyond. we'll we're And and So XXXX see deliveries XXXX. to work to bit to going of into a we'll continue drop see with that, in of the elevate amount

markets. subsequent new decrease ourselves redeveloping going doing And was deliveries. that not slight if in a the year, a bar this the more amount we'll to challenge job record great see we're scale with match, XXXX, in in of it and great and giving So But to assets, team's hit, to exceed a deliveries us years. great developing

Operator

comes from Barclays. Brendan question Next with Lynch

Brendan Lynch

you of labor savings reducing labor balance do saving this cost the I'm staff the risk. -- on on-site versus too front, much? cognizant risk the you're of Maybe how sure

and monitor think you about how Just you it? how

Joseph Russell

of that of growing times analytics of or understand be analytically times we've sets we that by month, been us what operating levels but about our are that that opportunities, impacts the month reset we've and of give type with sometimes the skills may to the part issues look a spoken diligent of we're of predictively instance, it properties, the help end busy, That's not be different way very labor could beginning of because properties and tools to a only making to week. the as different staffing that have changing model seasonality some different for the at sure variety properties because property, got of Yes. property been about may that using I've to we've of otherwise,

to able we even lot create our they're the that platform roles also got of be interesting ability growing helping Part serve we've a more to know property where own the management very that going that customers been specialized has to our us analytics our ranks. are put within and to able optimize of people to So relates effectively.

our that give So that good as customers a become very more got gravitating us tools the effectively we've mentioned of more lot We've and earlier, through well. center to care this quite that's confidence back a are got as a vibrant great effective channel balance. I well. And as

So the we the enhances at just labor that that's amount beyond can provide we've resident that customers. of got tools actually a service particular many even amount to property of

Brendan Lynch

And helpful. strong. Great. is other strength. you kind my market That's Tom, of as on being just question called particularly out Seattle

quarters. performing struggling has been which some ones a I are of are past us ones Florida bit. an still weaker think which Maybe give the best, update on just in

H. Boyle

Yes.

to markets a the year. that So started of in good we've earlier accelerate provided have list

really mentioned I highlighted San be markets XXXX The So that working still through Seattle, that were are as time those DCs but well. highest flyers and period. and XXXX the the the we've continue Franciscos that to normalization through

for has new but that through. to Atlanta, like normalization, market a work some supply So instance, also

how for at And some so at characterize that even performance. would maybe growth same-store those some said, go those markets in that's in tougher I the year-over-year, Orlando, instance. are markets, having of changes That in starting you if to revenue overall it, look a you're improvement see like

frankly was starting down to quarter, that's X.X%, but from revenue there. the For improve

those had a indications are strong and as performance markets that of And few well, 'XX stabilization those of even really those so initial some in 'XX. in occurring of

you those at has customer the highlighted to a to West disclosed million on want We seek Coast to But same traffic $X we be highlighted that, West help the of the bases on On Florida. that's there impact impact. the the West of customer to serve about as Florida Coast hurricane they Coast specifically, time, Joe the of financially. have Florida, rebuild likely impacted, and Florida

we've activity move-in the activity and rebuilding. so an related there storm And seen increase occupancy really storm and to the in

Operator

question Ki Kim next Bin from with Our comes Securities. Truist

Ki Bin Kim

last guys me pretty thought October, the to rates Correct you if on stabilization. deeply. back going cut Just some I comments of I'm wrong, but

talk take stabilization, rent that does when you that paint you look when of account? And how you sequentially, improvement? into So story a similar at do about trends

H. Boyle

Yes.

again, end things I that. number. be for giving year, is apples-to-apples number think you a that in the a the think single few the track to on rent I move-in of of we're there's in an there. down And kind rents I'm for digits of kind looking rent towards One, October and we're

Ki Bin Kim

much how the on people And in? the get impact, maybe you moving hurricane NOI benefit level did portfolio Okay. on from

H. Boyle

sit work Well, I impact it's early had storms. about fact highlighted properties move-in I relatively we most question, online. where a the back to mentioned, tell NOI a are modest our are But cleanup as noted, no as few here. getting to think overall cost that impacted, And of serving those we'll right storm were given associated the customers seeing actually back we just overall. have but and them Joe I impact came fortunate Frankly, activities, And with of as through. the too some online right do that and to talk we've at are financial some relatively

Operator

JPMorgan. Our next with question is from Mike Mueller

Michael Mueller

back your engine Can development land bit example, For years visibility you to many the keep the Going how of a starts control? about do talk going? development little to development. you of positioning kind and

Joseph Russell

and in on you we holdings, your I'll around development bit then general timing processes vast strategy what of more and as to to other we'll can terms, control transactions permitted is a question. do through. more go more color, But land take the our majority far speak the in depending not specifically little as Mike, a we you than a for often entitlements of parcel have give

have We option a contractual on land. the

the itself. own We don't property

putting far land more typical big on So than balance inventory sheet. just that's a our

once again, typically acquire what necessary vacant a we'll are gotten we any property. this So feel risk-related and a be And through improvements. would parcel we've

I ready know build as number that. So point, but... than a got frankly, site. holdings, But once to we specific ownership point if often overall more ahead you relative of we're literally land not, get go to do and we'll don't to Tom, take to we to that the

H. Boyle

that we about highlighted. Yes, $XX just own the Joe strategy that context, million land given of worth in

Michael Mueller

in about what $XX what's that total terms that? expected curiosity of that you land of out And gives investment, million on of buildable

H. Boyle

as Obviously, give of Yes, part is activity to redevelopment you going ability. well. our that's

the next based with place So as years. us that in of landowners. see got to visibility couple we gives further ability the million, you mentioned, about that $XX we've And think an than as on agreements have that Joe over

Operator

call I'd over session. question-and-answer for of the Burke to Ryan end We turn like to the comments. now reached have closing back the

Ryan Burke

today. Have to talk you, soon. thanks for to we'll you all of a Thank you great us Halloween, Rob, and and joining

Operator

This concludes today's call.

participation. disconnect and time, your this thank for your you may at You lines we

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