NSA - Earnings call transcript Q3 2018 | National Storage Affiliates Trust

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Operator

Greetings and welcome to the National Storage Affiliates’ Third Quarter 2018 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Marti Dowling, Director of Investor Relations for National Storage Affiliates. Thank you, Mrs. Dowling.

begin. now may You

Marti Dowling

would the thank conference third Affiliates National We us call for today Storage for quarter Trust. like everyone. you to joining of Hello, XXXX earnings

the containing our are website section package have to In which from contain subject yesterday, our prepared remarks and detail to on forward-looking On The statements at supplemental may cautions release the maybe statement. with may SEC X-K our that in found with we risks in today’s actual addition management’s call, forward-looking the company to filed your answers uncertainties. press on those an results, additional and nationalstorageaffiliates.com. results distributed questions any Relations that Investor differ projected materially

refer SEC. with public For additional to detail our concerning the please filings our statements, forward-looking

in encourage Today’s Financial package Officer, on section Chief Operating Nordhagen; core net Chief and website FFO financial the reconciliations definitions We National conference President to Executive in Fischer; in Officer, SEC and and information Relations available Affiliates’ Treadwell. by hosted review the FFO, and the and Officer, measures as Tamara also of Chief Storage listeners supplemental our such contained is Arlen call operating income our non-GAAP Investor Steve filings.

from remarks, management over will financial Following call prepared will accept registered turn I the questions now analysts. to Arlen.

Arlen Nordhagen

Thanks, Marti everyone. and morning good

billion of by venture. $X.X and of portfolio the one formed the joint quarter of high Self results, very the are activity our being September with newly We closing third pleased the our points Storage acquisition Simply

grew and quarter FFO growth. was growth again and in our Compared same same-store deliver the also sector X.X% once NOI share leading FFO We core are XXXX, per our performance pleased to to X%. same-store

Rico. expanding operator. add industry known the Georgia, have Southern Cowie Orleans, New quarter be executed well Peter NSA’s are at they Southern Xth to Southern Puerto and and regional Panhandle participating end, and to within the self highly subsequent addition, Storage storage McIntosh, presence Bob principals as in Florida In the NSA’s Self will agreements and definitive we respected

deliver execute and We results growth. strategy to we quarterly both internal to are consistently as external pleased our strong on drive

market Portland, supported healthy self level supply fundamentals. and imbalances significant continue storage. remains supply, growth local most at strong Almost self however, U.S., Economic pressure challenged of the remains new is in robust household and storage the excess for to currently demand the a in conditions, Turning industry by with formations, street a regional On to growth across stores and demand employment which drive our high continued with level, Oregon. and XX% are rates. by being impact demand in

national over particularly absorbed, other respect is years a to And nearing several looks past Portland. supply X on deliveries. the new likely experience oversupplied this But next we be before markets across an markets are on will to XX X with like peak expect to situation in as the Fortunately, months, the oversupplied we well. moving based we our like see it supply to new it believe basis, country

largest portfolio. And growth demand national we several than areas properties thankful we a maintenance reminder, did are markets, we balance affected we while I Simply would update oversupplied now are portfolio didn’t by acquired Michael integration. Most M&A and by XXXX will diversified venture, acquisition self The equity repairs at of although you important, are which and markets JV our expenses majority however, we affected note, proceeds a related the our Storage On to Simply and approximately stores costs. for our families Heitman cleanup to a operate storage on their our interest with separate the our given storms the We are offering. own in normal sustain Florence in history. venture and with employees damage, joint transactions billion few from this the funded located with exposure XX% why higher material joint one in was by the As and of have seeing. we $X.X a in July Hurricanes Self incur the our represents a in in areas is to like safe. that and

these earn In the well The rata earnings, promote targeted for above portfolio X earn we size an for well the which of this return as NSA joint our opportunity the working other integration the closed has and as of properties gone addition a was pro transformational will to our exceptionally fees longer since venture transaction. platform-related thresholds. successful income on managing scale and in share NSA and is hard properties of term fee team weeks to incentive

Looking smaller ahead, portfolio to opportunities as our industry leverage identify highly equity we in to consolidate operators our continue grow and currency industry. we fragmented self relationships storage to OP our the

nearly XXX at valued billion. over haven’t NSA, for includes properties yet Specifically we captive our that $X pipeline acquired,

In pro transactions to allows addition, venture size. party driven solid. material capital of as us to remains a needed our demonstrated of And we’ve pipeline the joint quarter, acquisitions our third access strategy this successfully complete

to remain with ongoing that, I turn our the now discussions the to NSA Tammy. as in by several we over announcement of Southern high-quality PROs adding Finally, Self will family. new potential evidenced call Storage With

Tamara Fischer

interest on Thanks, our thanks for us call and joining continued your today Arlen support. and for everyone and

quarter FFO As X%. for of results Arlen same-store we leading growth quarter X.X% and last mentioned, NOI evening per growth share the core with in reported XXXX third

by average to results successfully just driven operating controllable managing for expenses due rental by third in the Same-store with increased decrease due consistent Our part part and in primarily same-store revenue expenses expectations. our growth slightly X% timing. These and quarter only grew rate are in offset a to X% occupancy. by

employment continue and costs markets taxes property expected, as As tighten. to up personnel are increasing tick

dynamics favorable Regarding other specific Georgia delivering due cases Florida in demand economic stores our some Texas, strong California, supply results local markets, to Central in are particularly and in markets. positive conditions and

North which most impacted new and continue Oregon, in face Carolina. from by as We Portland, Charlotte, our Other well market supply. new Oklahoma include challenges excessive facing challenges supply to Raleigh, particularly markets is supply in Durham as

remains respect unchanged. Our to leverage to balance In contract insisting with rates individual this in supply our rather to cases, we best our than we manage and maintain PROs each within strategy occupancy submarket. seek site on maximum most new

a On net issued to financed million end, of million our financing interest on joint million guidance formation year our at the at we changes, million. by Self secured and common our by with balance share and growth offering sheet At loan equity these in and partner, in front, consistent XX% share we of a X.XX% Net our equity approximately be The a to markets has continue Simply the match our $XXX million our Further, revolver. net mentioned and XX-year an to acquisitions, venture. acknowledge to proceeds we unchanged. roughly of quarter of JV X.Xx New maturity. successfully quarter, affected locked the the our capital we venture were expectations access rate shares for $XXX previously our The per EBITDA had $XXX certain fund equity debt In with the ratio was our $XX.XX raising with outstanding as proceeds with $XXX July, annual used carries and for of our pipeline. Heitman we assumptions last included provided full $XXX from but related was Prudential. will equity XXXX our guidance offering, acquisition of remainder Storage our after July joint Life the commitment million remains year York XXXX X.X even in all XXXX

end low comfortably We expense near expect resulting our within growth NOI range both revenue same-store come the in of range. and in guidance the to growth

$X.XX for we the full joining expect a share reaffirming range. again to the year As now result, guidance near operator the that high of for call FFO core XXXX. end our And for are Q&A. us today. And back for Operator? turn Thanks $X.XX for end the to will year to we of the a a we

Operator

question with your proceed Thank line Rose Citi. the Smedes comes of you. first Our [Operator Please from with question. Instructions]

Unidentified Analyst

morning. for is Fiona in Smedes. Good This

retain factors the drove So Rico decision? far maybe so decided for about you you properties that Could Puerto that it like sale. just talk potentially were the sounds to targeted that have

Arlen Nordhagen

really of PRO, the for the Self of Xth Storage the relates That made with our ties Southern in Yes, addition announcement the group. and we question. thanks

a key group to their issues time, systems, talked integrate have Peter had them scale guys, and kept joining information Because have of But way etcetera actually that of that continued was about have with at continued a chose get we the Public portfolios to we Storage. PRO. and to we years we Southern many the that different one Bob, sell when we of instead is need systems their for we who grow portfolio things in kinds time to some at back contact, look that ways their at management to and have And of the they they NSA bring that company. to in NSA. since known investors, to personal as started use they could the there and first

a part the together properties captive ones after at we lot X would into to key look another together their joint they of of will looking management. reached go them up a Orleans properties the XX be venture. Southern we They also and properties Puerto of their properties as them agreement properties. for Orleans. Florida, are are as at underwrote will other that the And the to New Rican they together X buying the them in New those as the opportunity contribute in to built in assets to underwrote underwriting since under a So acquisition then to and was They contribute to that now get acquisition where made their could portfolio acquired of XX an pipeline. at that co-invest co-invest we that immediately the we it sense well in we that, at position they And and right and least mutual

in they So market, that and NSA as really fact Self the NSA. has a have XX said, territories coming Storage market pipeline. for That is we’d under have started Rico guys it to the will immediately PRO. in we very of combination we have different that since with the Puerto a that results like PRO new management that’s PROs good couple love grow business. to as in, low will great been will in X we They market, the get properties in a have the in fit to A a penetration and have trying and but really PROs

And we a to us for it just keep we new there Southern figured PRO with made that, so Florida of assets. handle could those that manage that’s sense in effectively it could down out lot once how a

Unidentified Analyst

Great. them to again adding platform. Thanks for on the background and congrats the

in changes the to in behavior any So seeing the larger smaller now and/or markets like in developer markets upticks development, saturated? moving largely as on into are you development look be

Arlen Nordhagen

would in say we I larger seeing more I we a the not would seeing are behavior, change say the drop off are where in that developments that in necessarily markets. is but

new survey across going So, because the across where do And about the for we markets about example, our own ones openings. services of by those developments total numbers, U.S. and is these developments the of down that’s numerous we of is of some to covering XXXX new are concur are to They go from service surveys the some lot XX%, that XXXX, across subscribe a Yardi that markets like most they showing and the we with XXX to broadly markets one XXX the number country.

coming are big about the the The MSAs. drop X. So same like in MSA developing XX year a is of in truth were is is supply that that pace they XXX the The or that from most top online. the at XX to new that’s improvement last coming

in So seeing a level. a not markets, in not new just that It’s consistent we while secondary these are increase it’s staying developments. at off drop the we more also of are more seeing an

Unidentified Analyst

you. Got it. Thank

Arlen Nordhagen

you. Thank

Operator

next comes proceed from Our with your the question with Please question. Stender Wells Fargo. line Todd of

Todd Stender

little storage the round hear Public about more how sold Self about you portfolio Storage, don’t they X they their if wanted if more geographic their sounds focus? to got to on Hi, a Can previously previously big they careers you It of thanks. to mind. like Storage. Southern talk and bit are about I

Arlen Nordhagen

Orleans at portfolio they started very that’s XX will we Public say, had and up the at we time close properties very so the same on successful Todd. building time Southern NSA almost as been portfolio pickup Puerto in primarily, in that market at acquisition Rico the were Panhandle, moving they that And are and a sold out XX time back between focusing January. New that Georgia, will into the valuable right, Yes, Florida, and that exact then together to Storage have I They they XXXX. us well. it working with building They since will this and would be in with that

the that will So properties will Georgia, new Southern bought. focus have expanding in their or at Florida, managing built doing in have the And then Panhandle, the in be from very properties. of built on them ones of that Orleans Gulf very others job they they areas those they their since lot They XXXX Coast careers are basically a and been on A most by that terms they that were have owned. new them of portfolio growth New contributing are that are across is and successful Rico. great and Puerto very the down

type are they of properties. the of in age much vintage XXXX So terms the around those pretty

Todd Stender

your in just structure, structure does you far that compare some is Xth difference compensation, the this of as PRO, first as how brought this Any and PROs to on waterfall?

Arlen Nordhagen

the units one obviously they to OP thing SP stock today’s get and at same that don’t issued come change The documents. is PROs price. their structure, changes as in So the exact units we

were that’s was price public other that private, identical. went that than lower, different our much than started when is but first we we the So guys when back structure the when than

Todd Stender

I you. what the Rico co-investment as? thank Puerto finally, Okay, with then how they and is the be branded And structured, will facilities guess

Arlen Nordhagen

associated Puerto The right amount Rico. would cushion every to our over the as point, buying in evaluate on subordinated it this just co-investment they the that but name unique give to PRO time also Orleans are XX have to distributions properties want now will the X know, but The leave we you would we can Rico. formula tremendous for OP New are properties that fixed probably we At unique that that properties a we amount Puerto just be name, of charge branded calculates facilities to a with name safety units. a equity under Rico ratio a we we And based whether Southern. are to have Puerto change our coverage to X needs and of calculate contributing, initially not the in that

those cushion them subordinated flow to those agreed to terms equity value do. total to and of co-invest those believe in a to subordinated properties, the cover So all We we of those of of venture they the Southern together. move all has will cash for that’s enough growing safety be have on successful it in what very as us territories and forward for give

Todd Stender

you, Thank Arlen. Great.

Arlen Nordhagen

Thanks, Todd. Yes.

Operator

Please Our the next with question proceed Ronald with of from Morgan Stanley. question. Kamdem line comes your

Ronald Kamdem

Hey, thanks guys.

quarter a XX had that Obviously I this contract quarter was one X-X was points. to versus X-X. compares that basis I first in down which noticed annual rent, had The the boost occupancy of nice

Is you you expected? guys about that do that how view think that? your occupancy? better my terms prioritizing than how I over of when So in strategy of pricing you sort Is guess that is decline, and occupancy expected question that just of do what

Steve Treadwell

in Yes, Steve. this Honestly, is with expectations. largely it keeping was the

have bit seen that gap October. little a We in year-over-year close gap,

So we maybe small positive. we proven this so that’s to far. a occupancy out flattish see as thought would and that the year Overall, bias now to downside be a

you up as we’re the noted, as side. on rate and is everything sort of So expected making it

out and rate on how really success continue the through today. driving our We it’s revenue letters through we’re to that’s occupancy not sending It’s have rent increases increase growth.

Ronald Kamdem

about in and versus this guys touch how you year last concession can like how maybe year of anything you that? then And they are notable are terms on it. thinking comparing trends, Got

Steve Treadwell

flat quarters generally for year-over-year it’s several seen now. you Ron, we discounting, it’s and When roughly have flat. at it look Yes.

new I to to be So among peers. tool don’t our a It expect popular continues that that change, acquire we to it to be continues need very customers.

but work there in competitive There trend continuing to that So slight to for was QX, down. to strong be or probably us, offer a it’s and concessions, to persist. discounts wouldn’t I we but expect have is up tailwind no and

Ronald Kamdem

heard I X-year are formas I you of have you just your standpoint, seeing thinking supply I before Portland, one opening or developer that am it be from – about the that is process you in comments talked on that last given some think absorbed. about outlook? impacting a seen My plus is could ground Great. any changes just gets pro the

Arlen Nordhagen

it a they’re can’t [indiscernible] through to going to it all they’re a re-look developing zoning they anymore, their anymore, or to X can’t being at X and it’s X.X down obviously going driven that they’re and Ron, is while that, is something looking opportunity. could seeing [indiscernible] what in the But takes mentality. are after at developers and years. start to were it and an and of and lot sell because a and now the at looking to this they it where they’ve of X.X anymore, developers’ development, looking process this they’re of cost in it these at Yes, going a Arlen. yield point at like guys rates that’s sell when process, up. developing to up construction it for something is of We the they finally run fact X by Subsequent at the that in are at home they and they a gone they a to And X started X definitely able get looking this they a sell selling permitting they not X are numbers properties, these like a develop it to at at or X fills changes selling

we’re already or nowhere market the if X the because new properties beyond lot more as we’re developers issue the in occupancy the developers, though have it driver they’ve dramatically used has near put into in why XXXX think I to while come even the now developers land at that’s drop XXXX them the a expected believe. it just they to are opened, a of they’re the where to they of economics seeing realize drop, they’re is of XX% be trying years time seeing a good these for so completions X% trying are be. big of as last that changed sell will versus and and So lot I And sell to a big for economics this. The to

they a guys doing to be to absorbed, they take and still of lot of ahead the terms but going lot results keep are those not there’s years are markets, be keep in and get, the So they but thought the think to the they there’re excess X markets. a absorb returns who properties it’s of that’s will anywhere to get returns. would of going in it, I going of unpleasant kind developments good They some supply the going

Ronald Kamdem

it. Helpful. you. Thank Got

Arlen Nordhagen

Thank you.

Operator

line Our question. Please next question Humphrey. with your comes from Robinson Kim from proceed Ki of Bin SunTrust the

Ki Bin Kim

Thanks.

look be I if at fourth year, for to closer it quarter same-store the will implies revenue the run-rate your So that guidance like X%.

So, year not and impacts makes do how guess that of get I the math you guidance full am how I much question sure does that first there? sense? seasonality

Tamara Fischer

is this hi, Bin, So, Ki Tammy.

going when to that the although said earlier our and year the to up I message full guidance were in range. guidance our we that are we think for what think it’s provided all around we changes there end were we done, some in of is assumptions trying

We end guidance have the growth, of lower at be third in growth low provided, are somewhere low expense we are same-store of specifically ranges NOI but going and same-store probably the it growth end our of to the think middle, the same-store we the results, to relates as the projections. comfortable revenue we with

Ki Bin Kim

Okay.

the into at though, So revenue? quarter acceleration end doesn’t even the that lower same-store fourth imply for

Tamara Fischer

don’t think I No, so.

I think...

Steve Treadwell

Ki X.X% what Bin, expense our that’s are year-to-date, year-to-date said. exactly and numbers so revenue, Concerning Tammy NOI, X% X.X% on

Tamara Fischer

Right.

Ki Bin Kim

this and update October and rates street you into you might an you on usage, that? have missed already did talk give the did saw And I in promotion about Okay. guys quarter

Arlen Nordhagen

QX but will we versus bit, on couple hit basis. we on did basically last of QX, It discounting there and I pockets where have a little was a reiterate. year’s discounting dollar we flat Yes, saw but here for less a

is us that a terms So, again I that in acquire that discounting to tool and QX, in little in to of helped happen consistent customers. across QX of markets new expect our all don’t use

side, and up the It X% of we that street about rate rate rates rates our like here we’re don’t through the see moving sort or QX. QX. increases the for place through that’s year. And I On changing of down to changes customer in that balance X% rent base. the see in or trend did during making materially feels

about third to able sort digits the increases increase once a letter size are single QX saw customers our again of high an average us. of We the during hit from of those on on and

the really rates. for multiple And small maybe tool so quarters of now, face that’s driving on revenue and a downsides great in or flattish even street a

We rent on have success customers. the to increases continue current to

So not by rate penalized we street overly are environment. the

Ki Bin Kim

it receiving number is consistent? year the increased same-store last the of versus this quarter, has that pool pretty customers or And that in

Arlen Nordhagen

and We aggressive during less QX and more QX. QX and during aggressive are QX

Ki Bin Kim

I mean, year-over-year?

Arlen Nordhagen

more Year-over-year, philosophy had customers changed. similar, our but yes, year, we it’s this year last than hasn’t probably

Ki Bin Kim

Okay.

about surprisingly, a we other You same-store think have quantify have flattish I notice companies street talked guys storage if to maybe mean, So even the little or I not decline, trajectory that able pattern. is, that negative, right? revenue rates to what their self starts about bit been

– to we hasn’t just is say like eventually how customer curious should and moved if you what was forward? same-store So existing much start that, see that pressure to your doesn’t think contributing revenues on increases going some your I you rate mean

Arlen Nordhagen

deceleration have we now. fair growth in revenue think over seen quarters I Well, multiple our be to

face in-place it that us are good think are to And disciplined a same a step trend, of is the our a we continues slight I for thing. following headwind. frankly just above a maybe customers are street driver which rates and others existing even we in little just on the be So the changes rate being to

I your really increases. period So think there. take a a time, room of would push our long still hear for through materially to rates street go being for is lot to penalize a time ability sustained on to there point flat of it rent that I but

Steve Treadwell

long on very, In is they are Bin, words, overall, look jerky. will time other or always month, for our then that’s XX% will which on periods flat in even that, you XX% very where customers. The us don’t they X Ki a they month our and only thing be other through and down rates back revenues in up affects of you jump go if obviously X just history see the street street will rates, X%

So, whereas really long-term jerky, overall upward very, gradually is growth they smooth. much over have long, but street rates more are revenue very move the to our long-term,

Ki Bin Kim

Okay, thank you.

Steve Treadwell

you. Thank

Operator

Our BMO next Jeremy your question. Please Capital of with the proceed Metz question line from comes Markets. with

Jeremy Metz

morning. go Self good want just Storage Hi, a there. to I Southern different numbers back to lot you gave of

the to only coming platform on to they think assets, start. existing X are I X NSA have

impact your think on should like. this consideration XX, how it one? income for XX as what sounds this? just should perspective, of about then we another us an have, SP have is OP, from you You the through think help next how contract, And that we much this Can about kind think

Arlen Nordhagen

of than those they Yes, And that. January the in contributed and of those close of $XX number go that both of exact will be that properties at about their we properties, bit of through we Southern more contributions will Out that contribution the Combined in $XXX and equity be between Jeremy. equity haven’t the to provided January. basically closer and million, equity. time. and that NSA Yes, will of $XXX so our Southern into X $XX million, a that then by be their subordinated XX get most as million, pipeline will their acquisition we little as will get million joining will

of acquisition very exact be according be vast on, the at formulas time. in the start we’ll count we to the and the when But month of can going will them majority subordinated year have that use we January. with the will equity it out numbers that and regular of Some a equity you it’s disclose that strong to

Jeremy Metz

missed Yes, Southern going to into... with am sorry stay no, are going or okay. if are those being I others re-branded That’s those I helpful. the this, but under branding

Arlen Nordhagen

yes. those unique branding. Those over sure and Southern They may will leave not that ones Puerto brand, which by we Rico brand will we of Rico, also taking be just they The still group. a will about are branding, be are are only but Southern’s be has managed Southern because management unique Puerto that it

Jeremy Metz

Got it.

Okay, and time to had going in helpful. here And on already it everything. call then you have comments a lot different absorb supply the takes of just

We have the talked obviously it about rolling impact can have.

You portfolio, mentioned we less, call today, as XX% to we see that you being year, it’s next as it going impacted XX% but impact? about do into that NSA look more, how should think about

Arlen Nordhagen

all well. rest are about be of mentioned that stores, years a don’t in way the impacted are new by off we remarks until I that finishing bunch open we in of know the us these the will new plus as to ‘XX, it, up. ones new impact go XXXX as properties for in that and are construction definitely they will X it my Well, are that we at look And in going really those of the the drop old. of up

favorable So us you more lot up certainly in we’re lot will markets. going again the is a the have effect supply built ‘XX, overall, that our XXXX, be wasn’t it XXXX very ‘XX, go in but There as bad year, we dropping overall peak being that that we to a not because is don’t back about size lot look and XX% certainly built somewhat, in much think there the to back will in of but ‘XX same be to material ‘lX demand markets in the dynamic. a in U.S. a

with excess these good is fact those really the strong MSAs, really have very that’s that the our supply good above limited top of rates. are like geographic far are of most over that So supply, ones markets especially markets and growth demand diversification and it’s XX growth kind and and by a lot we are the thing the of demand we the really but hit in terms

Jeremy Metz

Thanks. it. Got

Arlen Nordhagen

Thank you.

Operator

[Operator Instructions] of Okusanya Our with next from line Jefferies. question comes question. your Please proceed the Tayo from

Tayo Okusanya

other much the especially you Hi, in that your thinking thing because how just about occupancies that’s occupancy always bit been be One we NSA attractive good should story forward backdrop? story peers. again just talk a a basis, lower of kind the little going light morning. Could about of the closing pickup your is on delta about are than again supply

Arlen Nordhagen

repeated dozen it’s space not have a of Every that that Public that you type going in XX% the going the the Well, gap that’s In one the occupancy and configurations really are things property one I reason comment basic up, are that they we it’s a they can price that you we close renting. But in the overall Tayo. are not is how market start high say, and it and the by can occupancy it the we declining. growth and self market are way sizes over because in we to run in question, when don’t well, can – And Storage is demand ultimately exceeding got is to renting. short-term, worse share. have see is taking all long-term, are do math, of Remember, the has just hit growth really storage, getting your an of want one is local different the wars that is a unit growth. like outsized good again long-term share you market supply and mean, over occupancy occupancies we numbers

property another Public unit mile climate a But for if send don’t a property, and space, away what at I climate him So that high share. needs keep I have my can extra I customer. controlled and when have that unit, in got local that lose XXxXX a his I that’s customer customer who market controlled if just has does, a he comes XXxXX I to, exactly an everybody Storage needs,

happen much don’t the overall demand ratio when the – XX% dropped move occupancy that will build our get to long-term acquisitions supply we over less thing. That to So long our try cause Short-term, XX%. trying keep market wars It XX%, what we do and because run over we to XX% is insist destroy don’t average the want to if overall run so as to increasing new equilibrium market there local market is XX% share. to on price do from want to is is going a are allow that the revenues. XX%, we us strategy our to doesn’t market We all to then we overnight. time that’s has supply the but equilibrium occupancy we to market

Tayo Okusanya

enough. Fair

I to think it. way that’s a about you. Thank think smart

Arlen Nordhagen

Tayo. Thanks,

Operator

line Our next question the Please of with Thomas Capital Todd from question. your comes with KeyBanc Markets. proceed

Todd Thomas

Hi, thanks.

is else the on ECRI up I revenue Ki street year-over-year, if first Just sort revenue of the is growth? is much, growth Bin’s what down – occupancy is from question revenue but ECRIs, flattish Is hasn’t rents the lower. that are the question to understand contribution following growth or majority coming contributing on policy that the changed of of majority

Arlen Nordhagen

the I in and now No, the small can been think least several Discounting be factor but tailwind, versus going absolutely driving through we near-term. increases. how that’s don’t I be looking previous for at or depending you right the our small that rent the to are headwind going quarters year revenue on growth are a you that’s are material think consistent forward

these relying So increase on leverage. rent it’s all

Todd Thomas

just about of you local comments like market? And the additional appetite other of like investments digesting are size of the out importance and Okay. your today seems I and in your remarks but Arlen, going curious there mentioned you look acquisitions on portfolio, increasing to else for allows that are was What’s the well. JV market light your you seeing at anything it’s then, Simply share. in size that you of the

Arlen Nordhagen

Well, every Todd, we will out look always there. opportunity at that’s

We are know. you as growth-oriented company, a very

We have goal over per grow that our year in now at our of is base base is XX% $X it by terms asset to stated billion. publicly least and our asset

either that smaller team. $XXX XXX% to PROs take do we to a but to management way. try – those we’d our to and big we look those. or they’re deals, to like in-house management partners is grow ourselves we our look If our in those for and goal by we for that venture to don’t like them absorb want all there our for million, team come disciplined When grow are very in opportunities by and on up, So means pull storage joint

XX% going more to are be – one focusing will overall year. going the we to thing you it’s So we our that growing the same, on but a portfolio on can count by is be

Todd Thomas

portfolio heading same-store wholly to will today look changes Tammy, the properties Okay. owned same-store XXX, the like the XXXX? what into in And the is pool XXX

Tamara Fischer

go but in it that addition in it City. Atlanta stores Kansas haven’t specifically XX, of We by around finalized St. Louis call portfolio. biggest owned change it expect to XX will in acquired the Georgia, and we stores we and be mix The wholly yet, Todd, up

Todd Thomas

Thank you. great. Okay,

Tamara Fischer

You bet.

Operator

There the for management back to comments. are further call queue. in the no hand questions I’d closing like to

Arlen Nordhagen

again joining for quarter Thanks, Doug third and NSA’s earnings call. thanks

announce really mentioned integration addition swift we in the the third successful solid results. pleased Southern operating and of and earlier the As Xth Self call, are PRO, the to quarter our we Simply Storage, of portfolio

World look we we Francisco. look next support in to we National week’s Conference appreciate many Have your REIT you As in continued to of at forward XXXX, Affiliates ahead weekend. and and a San of Storage seeing good interest

Operator

and for you Ladies conclude today’s does this Thank participation. teleconference. your gentlemen,

this You may time lines wonderful your day. disconnect have at a and

National Storage Affiliates Trust (NSA) 3 Nov 182018 Q3 Earnings call transcript