Public Storage (PSA) 25 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

H. Boyle	executive
Ryan Burke	executive
Jeffrey Spector	analyst
Joseph Russell	executive
Todd Thomas	analyst
Michael Goldsmith	analyst
Juan Sanabria	analyst
Nicholas Joseph	analyst
Samir Khanal	analyst
Ki Bin Kim	analyst
Caitlin Burrows	analyst
Ronald Kamdem	analyst
Michael Mueller	analyst
Brendan Lynch	analyst
Omotayo Okusanya	analyst

Call transcript

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H. Boyle

[Audio Gap]

This leads us to same-store NOI declining 1.4% at the midpoint.

As I noted earlier, we anticipate higher acquisition volumes in 2025. We've included the identified $140 million of closed and under contract volume, but we did not include any unidentified acquisition volumes in the range.

Our outsized non-same-store portfolio of over 500 properties is poised to be a strong contributor again in 2025 with $454 million of NOI assumed at the midpoint.

be $XX of stabilization. million to NOI with continue of upside beyond will an growth engine additional They XXXX through

we and Storage X Public enter solid As following footing is years normalization. growth on demand of XXXX,

Our and initiatives, and completed activity increased growth-oriented sheet transaction high-growth transformation positioned us forward. and sizable will properties market Property have enhancement pool for industry-leading Tomorrow balance of program, non-same-store improving moving fundamentals

Q&A. for up it open let's Rob,

Ryan Burke

Rob, Ryan. you with there this us? is Are

Operator

here. Yes, I'm

Ryan Burke

Q&A, ahead please. and open go for up Let's it

Operator

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

Jeffrey Spector

you down you your on Great. assuming a Thanks you on average XX information the I additional more said for rate? I do derive but most that? assumptions bps, occupancy you're said average street bit slightly the -- during specifically opening think in remarks. on the you street 'XX, Tom, can down think how rate little about and talk assumption, X%

H. Boyle

Jeff. Thanks, sure. Yes,

and So talked why what activity, start update to through stats. with stabilization we've levels an don't year-to-date XXXX move-in I are X%. move-in the we at And that play continued a we've speak XXXX the up demand The seen start X% of strong seen to start year. performance to volumes rates giving some down start as year, of well, out about snapshot on the

today, start rents occupancy here so. But flat, So sit points. about on points X% a with year the net to Move-outs as down through to year moving finished be the we we leading down basis move-in basis, are continued or improvement where basis XX year-over-year activity. did down we XX comparing

metrics the note. I As highlighted we year, the think a to couple of about operational full

move-in seized rents them, down of You one X%. on

customer And we're rents improvement starting move-in midpoint. dynamics an we through new for from today. obviously that's a year the the continued So at competitive expect year the where

through we on better our or stabilizing well. thought year. the outlook that so improvement Obviously, anticipating are low year-to-date. demand points for high occupancy on as level at in with and already that of seeing the trends average, we XX some down occupancy appropriate basis worse do that the that range year. was midpoint see an for We're We the a those capture metrics end of But

Jeffrey Spector

talk then And that? around started top less almost saying Joe, my simply second what's of mean, your more? on Great. Is stabilization, all you to Can stabilization. it in driving comments are the that question inflected, is see demand that broader the about supply? improvement you an actually markets starting you I -- funnel?

Joseph Russell

moderate trend. factor that noted, improving And The demand Tom that's start. a XXXX. but us Yes. is we positive XXXX market-to-market Sure. to into quarter-by-quarter We carrying as as spoke through

my we trend. that's inflect in forward, demand not jump have good seen, a dramatically continue we're top-of-funnel comments, a by So a noted search, opening seeing that Google positive, not instance, as to industry-wide. it's markets but for clearly more of number And I It's reversing.

levels We of activity, again, top moderate of funnel. are seeing, again, improved

standpoint by very and but that where interest of things from are continuing competitive. a conversion degree customers or all the be doing thing then our And conversion techniques highly to continue coming space, the we're self-storage with be a retaining encouraged we us attaining are optimized to to in are higher very

continue and much our we're still improvement capture at fair to going we out but in can. of noted So spoke some market-by-market improving as Angeles. as We're I But Jeff, the here encouraged portfolio of diligently I to of this with share those factors, as moderate the all Los by challenges, we're we're level large, market the seeing holistically, growth. pointing to, obviously activities

Operator

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

Todd Thomas

revenue. basis impact point is would assuming growth? Or expect Can you specifically, there you be there amounts the to discuss same-store be is as the underlying rate the to just Angeles, it progresses? you're expected that impact impact Los wanted XXX to the throughout little the and I ask earlier you the impact around estimating are on assumptions about year consistent occupancy year? fairly And that maybe to the than greater a in the year bit negative

H. Boyle

a Todd, question. that's Yes, good

XXX estimate So FFO directly impact we to did that provide down an to for same-store core revenue the clearly flows points. of basis

continues strong Angeles. there, dynamics think and out to for to impact impact us going market demand given driver really and is Los Los cycles healthy. be supply rate. remains about of primary within be we Occupancy the the a of As in the Angeles the

really that points basis obviously, XXX And impact. the move less quarter, in is first have as we're will the will restriction the and that here we're to impact rent we of as through speaking so a it starting And year. that pricing restriction an

And basis so about for will think the you can basis accumulate that as as XXXX. that But move purposes. XXX right guidepost point impact we through points modeling XXX

Todd Thomas

like more more led bit that thinking from and you trends Clearly, normalized discuss portfolio more just some greater the and a the your or and recovery more of Can urban of stabilized back higher stepping broadly, growth the the discuss of can you this just stabilization those to context around deceleration within the peak compare Sunbelt quarter continued a Sunbelt and markets? rate, a terms experienced remarks then the contrast fundamentals? And of markets about across some and Okay. in and coastal way. looks

term? continued quickly? As you there recover you more the look some do Sunbelt near 'XX, volatility in see to Or the does

Joseph Russell

Yes, Tom additional add I can can then and start, commentary. Todd,

dealing the et cetera. that demand with of things extraordinary markets through flying to you is, the through saw the One the pandemic, of we still pointed that high we yes, some are

the by dramatic off progress events saw. continuing those We the that again, are pretty right we of, encouraged direction that in to and demand

The other factor is supply itself.

than the are not as to that parts to effectively keeping another we X and nationally, X But as not Florida Vegas, markets of eye or markets declines often Las close of on in those would that are a in So There is still product. we're markets Atlanta the supply deliveries more continue a Nationwide monitor. include whole. new see that continuing adjusting still we're particularly portfolio as Phoenix, are one.

We've been the many benefit and coupled by development be for fewer but of matching often to deliveries challenging the formas continue we investment an holistic entitlement, developers. with place. years, business to fewer about continues from of now and The fact standpoint, very talking last see taking pro are market not it the that cost hurdles timing couple

positive going XXXX see and a So that that we XXXX. see into been too that through to has continue trend to we're frankly,

add top And on other then any that. comment of you can Tom,

H. Boyle

through the I'd instance, good we were the see time, in inflecting But to as for market you're Seattle, fourth Florida at Joe In markets, we're fourth highlighting only Yes. territory some That and this Sunbelt, played to into and starting second see The San thing last trends the specific year, add, is improvement. Joe, and quarter, Orlando, continue highlighting encouraging as trends D.C. Francisco some to that the out some both commentary. of just positive quarter. noted there. related some Miami the in derivative markets

which are into starting the Sunbelt, is to So encouraging. see improvements some further we

Operator

comes UBS. question Michael Our with next Goldsmith from

Michael Goldsmith

XXXX you on activity visibility First, than like more great transaction sounds have market, last in the year. it into

rates in are market? acquisition So now? where cap what's right a driving And settling more liquid

Joseph Russell

a couple things Yes, Michael, there. of

activity is sector told, hands. at low minus large one-off the few being transaction at portfolios And transaction activity large. year. XXXX trade bulk Very the So billion transactions. was in about plus stage a multiyear of But setter the or $X there ended was a up sector all of

one-off bit see fourth an into meaning a the XXXX, of of quarter that did the on the we Going transactions. of smaller latter half activity level, uptick

So in into far, quarter a early able capture the we the number XXXX. of attractive we've so to activity seen into were that opportunities fourth carried

taken them closed hard and see the portfolios, down out. level through activity $XXX could in activity. million still or about toward last tell activity. and leaning one-off come But approximately some these if There's million a bigger contract of some that these have between either few point. see acquisition QX. a time under did, of of now, worth of we time, getting no but $XXX market. to in we portfolios of plays Very them from very were portfolios. Again, larger up hard we'll QX the transactions, hands. QX talked It's different we've this mentioned, larger of none ended to to, going year, of highly different than Through Frankly, to almost these XXXX we've we're inbound different of on fact, coming to on level XXXX, activity how to at trading Tom predict

Michael Goldsmith

cap where And are right rates just to now? clarify,

H. Boyle

they've Xs And moved or the obviously, that cost On speaking to the so. ZIP a be Xs sure. be cap we've rates. I'd of bit getting that. rates lease-up cap are stabilized than going obviously, different right little similar pointing a but to point little I'd bit And X.X the interest been assets you I'm to properties. still year, capital, rates, of last to into more cap guidepost Yes, years a kind for code indicating really for through around rates, as

Michael Goldsmith

sounds is customers. to not for up a necessarily it's slightly, pricing And as then translating but power moving like follow-up here, new demand it stabilizing, are volumes

for help move So rents is something to the Or generate for ingredient pricing move-in is just to the power higher? pick up can else missing demand that return? there to

H. Boyle

Michael. Thanks, Sure.

experience of industry several as the is demand seeing stepping ago. But that if similar year years think year. keywords we Google it of specific last I storage-related where metrics, highs the we've of has come And last were So we started back, did year to we're in the the through stabilization viewed in we stabilization. and the for year, highlighting off level that activity at year, or last search a starting you place look other that

So that's encouraging.

not The demand is falling.

first ingredients that you're the that's speaking to. So in step the

through In that year are this not year. the we a terms anticipating in demand we this significant year, of uptick see

'XX. about as drivers in trends compared similar pretty So 'XX we to our think demand

return a we're uptick, for sharp expecting So instance, big seasonal or in a transaction housing volumes. not

It going of XX% feels feel is like many demand to similar pretty dynamics. to those across XX%

extent we're are that pick reasons, flow performance any to should better thereafter. to number up shifts that lead of pricing anticipating that, power financial not for there would demand to, And industry does we through and And that big which can obviously, so there. the the across speak that better

Operator

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

Juan Sanabria

of less talking some individual bit the hoping and part the you wouldn't little items. expenses assumptions potential put Just about on or impacting could talk policy removing line of some any the if of benefits behind risks of that, you maybe And you views about as a in mind labor through? initiatives to pass changes immigration costs environmentally friendly solar administration, your of some

H. Boyle

Juan. lot, a That's right. All

those. So let me through take

terms once taxes. of driver be of biggest for them, the will in of through property expenses some likely expenses So 'XX, taking again

investments that. the will of is making team by that increase some to Joe we're Another in to of be payroll increases. indirect cost digital lead be continued Those platform improvements earlier will will on enable spoke likely to offset our that the operations, there and efficiencies

And will a that so be mitigant.

And have we're going usage in solar, full of that that year in this And reduced 'XX. then then active those of properties 'XX, we'll year. added get we benefit additions utility to another year

of solar In go. towards those terms policies as we'll we whatnot, obviously navigate and

very investments been returns, IRRs those have the made we've XX% But on unlevered to it, that investments. call in XX% to date solar strong

and a solar view sizable sit across rates given for we're that the our seeing we panel savings term over likelihood the and us country rise And has and that, presence opportunity those we nature come roof to as today. as think continue the of So that here that utility down. investments, prices attractive longer utility the we big

there longer the So to of regardless medium over policies opportunity kind more term. of

Juan Sanabria

for you achieved new little speak any a up hoping going a start the period just pricing sort last from customers could comp dynamics bit year. bit with the about the then, of to of And and year impact rates the

cetera? is just quarter about then between a think fourth interplay I year-to-date weaving X%. how and doing And rates, bit said achieved think there kind should in of promotion which fourth you're and down side, quarter we in you was promotions et what on and increased the the the X%

H. Boyle

moving those Happy tools we're X each have that sure. rents. level highlight dynamics. different opportunities They really customers. some always both promotions, I we into go with markets drive to really at like Yes, and of to performance advertising local pulling amongst that

conversion, Some of cetera. some funnel, are helping top et

variability you some changes fact would point did you relatively year-over-year of time. metrics, see some but that those in are so to the modest those I over And

as roughly spend marketing X.X% a in our at look as for you revenue If fourth percentage revenue the instance, consistent prior of of year. quarter a with guidepost, and

that brand strong given We platform our very continue we've several our returns to years. investments see digital our made over on presence advertising last strong and spend the

first quarter. some utilized we percentage promotions promotions, frankly, remain term, as consider is averages again, using a On below near and of revenue the X.X% of XXXX promotions revenue it, into about through as we'll more But that tool at those of historical fourth month call well. the a

competition then we'll several rates, you highlight, and use moving of has a operators to years. It environment move-in amongst as continues last area also. lever competitive storage And a over notable the that today, be been very

Operator

Our Nick from with next Joseph comes Citi. question

Nicholas Joseph

was I back to understand moving to go just L.A. parts. just going and the

I think I look if right about it's your $XX RevPAR, now.

purpose as is And rent impact far ECRIs? then new of that market where kind restrictions? the the how So emergency L.A. move-ins in for of does

H. Boyle

sure. Yes,

that basis estimated we've models in XXX Ventura in rolled the That triggers XXXX. impact So restriction. state same-store results emergency Angeles about results through and of that for counties. a point restrictions pricing our XX% overall, within in a And and Los price revenue

point to XXX of So revenue that basis from points impact Los you would I Angeles. same-store

Nicholas Joseph

is, kind people mean, of I So new you're defined, ECRIs? the guess in? And what at what now, move do right is to do I if right? Right. rent as question market that does that does $XX how

H. Boyle

to has it Yes, impact both. an

impact consideration. And we obviously to the that XXX And revenue, to take on that terms at same-store of so impact ] in about did point basis into same-store arrive we'll Eric. [ that revenue forecasting

Nicholas Joseph

And just right. All capital then allocation. on

you year, recently shares. I think more you've were last year, some repurchasing This issued.

the of curious issuance. buybacks using the just the you're on for So equity versus framework decisions, kind

H. Boyle

Yes, sure.

our volumes acquisition X low the the And the and mentioned, didn't is noted, Joe as the was last place capital things the was we we one as development, volume at as we've lowest we allocation consistently of or move second we stock year, that transaction as that at over and of that quarter seller X evaluate we of the that on stock acquisition evaluate years through we was think seeing years. we've fundamentals improving the it one time, dialogue of well. were think value, were a seen the same activity as through reflective And we lower, quite So ground. last as viewed

which we're time, in million stock the did And busier At it add are we that market, activity. debt hopeful thought program and poised that. to will $XXX for to participate flow, we ultimately and ATM retained expecting to included in so comes has anticipating we're we and quarter. activity, repurchase in more to XXXX be And was preferreds same a toolkit, second consistently cash an our prudent acquisition that unsecured year the to acquisition fund

And so for fall. that test in We drive first we program took did fourth introduce in quarter. the ATM our the a

Operator

Spencer comes question Street. Green from next [ Our ] Glitcher with

Unknown Analyst

of of you you you'd as update when on one potential very But terms rent have duration the I sense a and And a L.A. in do on these of the much an any just I more cap? it's restrictions, realize the I of sensitive apologize rent topic. have extension transparency the how restrictions? state guys get

Joseph Russell

the ] down a through b, Ventura from But that what governor view, in County, unusual, depending the frankly, would state full of that L.A. to of now XXXX. was meaning maybe either the have but for so a, directly actually our Spencer, the place that the from [ when forward, emergency then even extend out certain into he of decide the impact transpires. see governor point Clearly, fires municipalities, or less the year. took the L.A., on, to can issue in we'll the emergency. where something statute state in that ultimately vary it and January And latitude that and somewhat going Yes, do gate, significant a circumstances; opportunity technically is to to of to duration. use for it That's

Unknown Analyst

pipeline input the it hitting changed of earlier development in labor months? how comments labor And confident relates you input But pipeline. as recent development feel prices? Okay. touched And you prices of share on and/or to I in know like robust provided immigration terms you've fluctuating helpful have development anything these your can about yields just slightly some you in how and light on policy.

Joseph Russell

But soon Yes, see ] either to change whether in it's we're the close fact, tell, to in [ directly that market, eye got on immediate costs. labor and/or term. a has it's itself of activity pressure, Spencer, that. going with very if, multistate may that near development to we've the or policy surfaced indicate going some yet that and too to nothing would on, We're immigration very transition market in availability keeping that

thing or across But by for that again, may anything be the Same cetera. keeping on tariffs, impacted close very board. et eye we're not a may that

I development right continues down the to the to points business to overall to you local well area, be that it the risks, a the through, just think need very know dynamics structure, a cetera. et fact that that play cost

that's a will discipline the think through year development actually In coming something reverse is X. play going create to activity that to of likely that relative way, volume or in the I additional

as risk some trying So buying ways component scale, national that costs, and can in that of skills very these factors. have because manage we most maneuver -- the got the past, to power we've around we're have we that our effectively the differently for other the we developers of than those around had

tell So again, it's, but likely, too to changing what environment a soon degree. to

Operator

from with Our Samir ISI. next Evercore comes question Khanal

Samir Khanal

for guidance, of L.A., sort but on a ECRIs how question we've about more are this markets. you've you hold at market. growth So broadly, as my kind a to ECRIs thinking a thinking you Do potentially this just of it's that? is year? know thought consumer, about guess comment are dynamic you how you broad got that and especially I job headwinds about the of expect slower around broadly I various this about talked year with point

H. Boyle

Yes, sure.

continue as any consistent And looking at move-outs, performance earlier, we existing metric, see testing to and sensitivity noted our And indicates base. modeling I price be our really really continue performance from see very well. strong customer So, really delinquency there. or to we good as it

picture, guidance last performance existing from that assumes rent Los revenue we year away And Angeles. increases consistent so contribution and range see for as the customer big the from midpoint of pretty same-store

And we obviously, just -- contribution. in we'll for everything have we a Los lower Angeles highlighted,

contribution year-over-year, country, performance in lower markets. aggregate a consistent pretty So across but really in the other

Samir Khanal

missed And about then to the follow-up, a are of sorry talked I'm end X% moving but rents guidance? be down as this, the if you the just What at high guidance. of assuming midpoint at I you

H. Boyle

Yes. At in those decline in assumptions of about range the high moving average. X% is end rents on the a embedded

improvement steady So year through the there.

Operator

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

Ki Bin Kim

just us L.A. remind Can calibrate limit how in potential accounts increases the X% a to year? you ECRIs. last ECRI that trying much on Just what reserve for were

H. Boyle

L.A., every increases, that take I point year. in a different utilize. Yes. we typical to same-store market revenue XXX market, in And L.A. Angeles magnitude basis there's point like no both would frequency last No, was a than different think I wide again, you of and variety from we'll Los -- that XXXX. impact

Ki Bin Kim

to D.C. Okay. early, but bit little be increased And in turnover related DOGE... the seeing of you any might area? signs housing a Perhaps this are

Joseph Russell

couldn't market eye yet. too. DOGE Obviously, but that that the far that levels guide to Bin, on in we've Ki anything seen and of different the I soon a employment keeping to could ways change, lines with tell. of a you lot we're too coming headlines front on out that, D.C. close

Operator

[Operator Burrows Sachs. with Instructions] from question Goldman next Caitlin comes Our

Caitlin Burrows

allocation the constructive It outlook equity tools the that I of to just on could guess question. back you capital use. sounds one and the you're acquisition like is going maybe

it you look you target where where or today. if Or maybe could of keep on higher? kind wondering lower make Would go are leverage you to levels you just to comment would is? So what leverage want

H. Boyle

Yes, that this acquisitions, are more sure. On activity optimistic as be highlighted, Joe year. will we there

then certain that interest year overall year the how years, activity we've where quarters skew the levels slows year. this rates have seen things the be up and this will to starting like and that, going where are down, picks dialogue but last dialogue we're quite way of We last to seller is on relying we optimistic we're and several compared

net X.Xx to the finished terms leverage, specifically, net In of at with debt EBITDA. year leverage and preferred we

long-term is Xx Xx. Our target to

leverage average. long-term a a have to below our level continue we So that's touch

debt look acquisition from And that the retained leverage highlighted and capacity time, $XXX At deploy $XXX as this would Joe is to into so same certainly, well. that to the increasing add cash preferreds. and year, unsecured flow our market million million through to we

an and to business additional like feel as tool. those And noted, an utilize as will as program to XXXX have and finance place add then good opportunities But hopeful tools in of you we into that did ATM we a the activity I lot tools. well great really there be are

Caitlin Burrows

how know Okay. expecting any guess, talked little other portfolio or PSA headwinds could your XXXX. And into And and how earlier. factors that about detail factors bit guidance? I supply then Wondering what how the if you're supply development that -- more I for you give much in XXXX you by like a headwinds on impacted was into

H. Boyle

overall last existing looking data as that around would sure. at right stock percentage Yes, industry-wide, that country new year. The our was the indicate X% of supply around a we're

X.X%, or plus will that, anticipating in We decline to 'XX. are minus circa down that

as the several deliveries a years. decline multiyear improvements of there over part modest some has So in really been what last overall

anticipate we there. a So benefit

Operator

Our with Stanley. next Ronald comes question Kamdem Morgan from

Ronald Kamdem

ones quick X from me. Just

could being it's low-hanging of an I of of able are there have and sort reduce I as fruits, to talked proliferates, just of benefit guess are mobile curious of you looking whether obvious think leasing that where at the earlier app hours. about impact? I'm you sort sort accounting guys AI labor the any sort AI

Joseph Russell

things and There's The for center, that been there's we've mentioned, our the is lot we're it working whether years. we're different either sure, which to cetera. multiple million Ronald. the et through interfacing doing to relative areas, X.X that digitalization customers now tool benefit, we've it's as customers, I that the AI that tools through now on tie actually of combined a our new the website, app, Yes, using care through with way now on whether there, got whole

an AI and So penetration impact skill grow. and optimization continues standpoint the to from

to only of opportunities. satisfaction, continue Very not from seeing seeing we're that step, skill impact standpoint, into processes. but and we're that good relative optimizing additive, digital our how and take A into is Again, that cautious every making the very to conversion customer very of very versus channel tools. that highly uniquely, overall investment to efficiency interface into We way investment those lot be we've we're strong platform we step our far by each it's balance putting we're but customer ties the made that tools to, with we again, the customers. different entire

more also continues So but that, margins, employee that satisfaction, customer to investment a and by impact very the only cetera. have employee encouraged lot come skills, efficiency, we're there, the but interaction not to et

So a come lot there. things of good to

Ronald Kamdem

over. commentary on go being my the of CapEx to then to at happens the going some point? is property question forth. spending, years couple that we of sort something the just so enhancements efficiency also energy away is then And back Great. something expect that Is every should and And second that

Joseph Russell

our energy again, million standpoint. it's the it's relative we and/or see to great do right cost invest optimizations areas HVAC can whether in continue whether there -- things long-term from solar are we of an foot square to whether that efficiency some that with of whether savings infrastructure with there got related, related, tools the a we've efficiencies a portfolio, So deep lot properties, XXX to

of the holistically XX portfolio, X-plus we that hadn't was, or Tomorrow about years Property entire of one stepped years swoop. where in XX-year the branding a the The change XX the frankly, we was made which ago program commitment in back fell done and last to cycle

not that get that's good out that very every We a we hope years. investment. do long-term anything So of of usage couple to

see of it's in day-to-day optimization, we've make On about investment to solar make make them that energy case-by-case we that we environment properties where decisions. are more either new investments take continued optimized continue talk when of lighting, we'll other we ways the and whether the efficiency, I good top though, much as on that whether those that, and basis. things to returns think tools to around it's And a

Operator

Our with next from Mueller JPMorgan. comes question Mike

Michael Mueller

as forecast lift then second L.A. X potential? have you question spring? of in a in seasonal are you the be move-in down into able you Sorry, move-in the as rates of you are a questions. your not first, was, us a L.A. more to rate only sense the Or X% how coming kind And lower can give would guess, different headwinds assumption I ECRI strip from normal out? the to move year-over-year if

H. Boyle

Sure.

overall speaks last year then increases I company like. the bit of improvements So X components that the question through is in than rent point the the XXX primary existing of and move-in cycles the anticipated little would time that Angeles of rents to emergency to drivers around continues being that as would around what to and there. One second points, average over are in the one and Los look the first move-in to goes primary basis the what of kind customer state you are I be, driver of impact. of out a in fundamentals there. L.A. was say better the and rents before strength And

And being existing of rest emergency. more going aren't of customer impact increases. a on a felt probably worse that, state the the likely impact restrictions rents have country pricing little on L.A. and emergency state was rent move-in into significant And the to so the than of bit the on of

Operator

next Brendan Our Barclays. comes Lynch from question with

Brendan Lynch

for? or to urban suburban you're that an other Great. SKU about Wanted be ask any that versus aiming acquisitions might and you markets any or property characteristics particular targeting

Joseph Russell

us the we position going multiple value asset see it's comes from how may urban, the how I Brendan, the benefited in might suburban the Yes, right already multiple into wouldn't different to relative a creation one say assets with to of quality we whether geographic. market down portfolios, be puts we markets. in priority, have or focus It and/or individual and larger

process goes underwriting contribution all individual makes in right the may and we asset a the that the we it's to the those and value of our combination this of scale it down from see asset, but So effect to market. an of that the have things,

ourselves specific spectrum. geographies opportunities whole limiting and/or to across suburban we'll aren't we So to continue either see characteristics, urban versus the and

Brendan Lynch

Great. That's helpful.

to rates so. not much components you're guiding us on doing stern flexible? giving Can these so street more planning also thought on walk up to You're anticipate process you maybe occupancy versus your year-over-year, don't but or and more through just where be lower

H. Boyle

Sure.

spoken assumptions. already a about we've So good bit move-in the rent

the are relates to it experiencing the expectation that. that stabilization continue As to in navigate through it we'll to demand, assumptions, occupancy and relates we

years, And several over and case and think seen algorithms rental but day Ultimately, day-to-day revenues overall, that, less looking year. out. that optimization take and looking occupancy, and so about each we year that's to anticipate the occupancy how rates, the that's not declines to so specifically in the processes day place in we're or we've maximize last this pricing

a end be terms the softer anticipate. on In demand But we're of lower expecting little flat on there, right, the you'd consistent. the to backdrop higher and expected relatively occupancy the range relatively occupancy generally that as be to end speaking, is against better a year

Operator

Deutsche Bank. comes Our from Tayo next with question Okusanya

Omotayo Okusanya

for have came at half basis consumer Just least in of you kind of data of 'XX. a how context on of a kind of a guys again that weak. talking kind quick if out pretty sentiment XXXX, pricing, thinking and demand first in lot today week the all are this Curious about the been consumer. of not near-term A retailers question of around softer about

H. Boyle

Sure.

consumer, storage customers retailers of softer I of think those have really over some experienced we've time of the have is several to a cohorts pointed one the last over And like. the of consistently softer last have benefits the cohorts that some years, move-out been or terms in moved the delinquency, our several customer over that stronger years trends activity. in of and

while continued years. seeing one over so last And think retailers the the resilient I to the be certainly are customers storage several thing,

we've retailers No we that starting closely. as that highlighted. the very, speak, the of question, we that's some experiencing we're And something watch not But very other have as something seen way maybe well. XXXX

we've spoken question that a some of volumes people our And for this year home. to pretty housing the But no last similar year around we're terms In good as a ran of shift storage mix demand those we've come year overall, metrics. XXXX. across at seen transaction from demand, though, overall down of space between bit the viewing overall highs and

through we are encouraged 'XX. behavior customer so by And start to 'XX and

Operator

Our next question comes Sachs. from with Caitlin Burrows Goldman

Caitlin Burrows

just had yields. on follow-up development maybe I a

could process, on little and some gave pace in the guys as kind up those those up about are, of to and how previous they're kind leasing guys yields a think projects But and that's the reach expecting development give years? then of whether nice I recent you're the color which changed guess, recent you developments you in years how of square and stabilization on lease more producing. in You they at

H. Boyle

and meet Sure. target Yes, in we continue to continue vintages. those to exceed as minus underwrite target And X% we or you or yields. plus noted, prior

level in of XXXX. X consistently, to faster occupancy are 'XX, we stabilization instance, years the saw In and the vintages reach really start in will during X terms that years circa strong it of question, periods of that underwriting delivered that expecting a we pace, stabilization. No demand we're X take we X some X lease-up from But and property to lease-up as spot. the open for to obviously consistently in

Caitlin Burrows

Got it.

been sound target X X% over that, any change And so X like, like again, it to there's to years? doesn't

H. Boyle

No, that's we'll right. a risk-adjusted to very strong that think return We and target. that's continue one

Operator

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

Ryan Burke

to And day. for great Rob. Thanks, always, us. you Have a of joining all as thanks

Operator

conference. today's concludes This

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

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