NSA - Earnings call transcript Q4 2018 | National Storage Affiliates Trust

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the National Storage Affiliates’ 2018 Fourth Quarter and Year-end Analyst Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [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. Ms. you, Thank Dowling.

begin. now You may

Marti Dowling

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

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

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

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

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

Arlen Nordhagen

morning and Marti, everyone. good Thanks,

markets and new cycles. quarter to our growth in filled remain healthy expertise leading of operating an fourth platform, supply results local strong market year operational the our results a despite throughout provides resulted differentiated competitive strong. the our pros From while fundamentals, impacting believe challenging our of industry our balance combination We with be our us market perspective more submarkets. advantage of national sheet Our full has execution continues portfolio multiple across of XXXX which of the reflect and strategy ongoing industry

For NOI full X% year and same-store the grew revenues X.X%. by by grew XXXX, same-store

half us our selling of the same-store expected, As quarter fourth acquired back storage solid a for with was NOI brought properties the we as in majority billion. perspective, XX in quarter. for to portfolio grew XXXX in consisted just From of growth over year, transaction. finish, billion total portfolio $X.X the year record assembly, our X.X% which acquired $XXX owned our properties portfolios, venture a and the by investments fourth wholly This joint of the through for XXX which over $XX through NOI growth about sort properties over an our external for of XXXX accelerated we million $X.X million, we

management In addition the stake to platform fees joint accretive makes venture and ownership highly in the our to XX% NSA. via transaction which

support in XXXX since Rico, to acquisitions, continued to IPO scale venture in maintain fee access benefits with joint this than capital almost pleased with to very and XX close allow at We footprint ended to which grow our these which more ability and The states growth, strategy. our XXXX XXX% income our XXX represents creative are We to growth over us and XXXX. XX% source and properties continue our realize from ongoing sources. we Puerto multiple growth

onto credit rolled $XX our During the And from loan. XX-year we year, during million billion. we over a the quarter, expanded revolver fourth facility to term $X our

venture. XXXX a and a on million million follow $XXX fund our equity level secured through new joint timed joint venture raised well debt to $XXX also of We offering

for year given share above particularly XXXX their a for we and in full the the XX% grew year. XX.X% with results core As very from year, capital and a a growth our We're prior work result, well during very impressive these perspective. count the unit hard additional pleased per team dedication. positioned increase share enter On and FFO average appreciative our by weighted of

activity for significantly has government extended our and to our supply take demand industry, the me of household From moments stable shutdown of remain. last and the of view let continued in industry fragmented stock supportive strategy After two however, XXXX market growth, few few with volatility self growth nature beyond. our the Overall, major remain a formation economy and a period extremely with outside long-term been the steady same-store key perspective, employment relatively and supports challenges Now new has storage. construction despite in storage increased discuss years. growth healthy drivers demand and of self the drivers

our top estimate markets. watermark have While two the We're in our markets trade been areas the and the balance in from area. several trade three for XX% expecting X I continue is will well. supply demand concentrated that absorbed diversity deliveries before, the new secondary XX as it a and our as will in benefit significant of be new while we we to three of the certainly XX% of deliveries of to At mile geographic to X are by still years previously excess supply impacted continue we stores and several portfolio. before we've within that seeing new impacting that will commented But new this represented of take in are of new area believe XXXX supply dynamics by deliveries, are have supply been MSA, supply more there the their supply high XXXX for Further, supplies store mentioned industry. new time, mile in we

on continuing part, to in competitive generate move our that we focused increases rates to street as rate activity. we adequate standard existing to customers pass levels, rent along like maintaining and our For grow portfolio remain

deep management well we ensure expect the inside revenue maximizing extremely growth storage our Given of NOI pros potential. we the are to an is as market self mobilized business, to as platform leverage that also our

continue pressuring strategy is new to industry-wide. outsized We XXXX. fundamentals drive consolidation in industry external our growth to amount supply allow elevated Although us believe of the will

grown of well pros a in consolidator network joint competitive industry inherent of the sourced our differentiated an Further, fragmented have as active our a we leverage We platform their we advantage as equity provides through pipeline to industry. be venture OP highly this seek currency and relationships that deep in including acquisitions program. our as

As above such, we're in confident these drive levers will peers per XXXX. our share FFO growth

Now, let sourced third-party by by at NSA owned on as pipeline current consists well yet over our our which managed XXX valued me $XXX not PROs. properties pipeline million of update by pipeline acquisitions PROs, you over but our of captive our as active an of

the portfolio continue larger fashion. PROs opportunistic our And in acquisitions In complete addition, we flexibility allows finally, joint venture an add us new to to appropriate. strategy as

PRO our the covered. PRO have on Mid-Atlantic founder, Xst, addition Association. Southern and concepts three expected geographies a agreements Chairman of to is time. announced former we our We in our and us target more Storage John most is one Gilliland, region PROs led discussions In we out previously with joined located National entered over XXth to with who of into Moove of Self another At additional believe we'll our Moove point, by the remain Storage, January addition PRO, In Storage, Self recently Self Xth in which

NSA's Their We best we've continue of PROs growth have success. local to assembled. knowledge the that practices, be extremely and insights, with team differentiators been relationships and pleased for proven

and moderation and the XXXX, same-store NSA As by Tammy. and growth, fundamentals, we call share and improving whole. our positive differentiated to despite strength growth continue to fueled a performance. leading long-term drive strategy optimistic capacity I'll about of that, as backdrop, the to this near-term sector our to turn we're FFO the look Against per With especially we're about resilience that especially ahead sector over

Tamara Fischer

Thanks, everyone Arlen, for us today. joining and our thanks call on

a increase quarter. core over quarter, the of share $X.XX, fourth FFO XX.X% fourth prior For per the we reported year

transaction of slightly know, QX has many The quarter Simply we from As during more integration Storage full than FFO result, the was than share from efficient higher of reflected hope, the expected. the been and quarter the a even Self acquisition. acquisition benefit you as impact per our that

over This was XXXX, $X.XX by acquisition prior growth and income share For our growth in our from the of guidance the FFO joint FFO full year. volume, growth range of high NOI and and driven core year the year venture. the our of of of $X.XX XX.X% end same-store recorded per core for increase we

line was impact diluted partially the top offset our issuance and from growth expense interest strong increased by in Our growth expense, the natural early and equity G&A quarter. third

from NOI to growth focus revenue face Regarding we and on our same-store declines our drive of the In of quarter absorption to strategies growth new the our the by increased operation, supply and in by REIT fourth continue small challenges of increased revenue will offsets X.X%, industry, driven occupancy. X.X%. same-store across

we our acknowledge and guidance. driven ongoing tight which expense only same-store our labor X%, same from while with result, the and XXXX property was personnel For low QX, are this we pressure growth costs factoring into by market taxes our

For XXXX, in X.X% the X.X% revenue NOI in property and by growth operating full same-store of driven expenses. by year X% grew same-store growth

average average offset in occupancy of foot a points. decline rent Our XX annual square grew slight per by X.X% basis

the quarter earnings We mentioned extend expected up expected we below expense which low year low to we of low in guidance, guidance the expected. at guidance. call, better and with end as was of and full As on last ended than the revenue same-store come end revenue end of

and quite well showed California and Texas earlier after our West South delivered results. Indiana Regarding the continued specific struggle strong and stores in in year, markets, Georgia performed Texas strength.

Our through Raleigh, to stores West continue and in near to Phoenix significant work Oregon, headwinds Florida, Durham supply. Oklahoma,

balance needed provide our to sheet and strategy. continued very growth flexibility the healthy which remains to to our support Now

of debt to X.X fixed range At quarter, X.X% of of was cost debt the X.X ratio was EBITDA end at a end our year X.X at target end of the to low with times average weighted Our times. of fourth XX% rate. our net

XXXX. no debt have maturities We in

quarter in million quarter Arlen fourth mentioned, on used the amount entered $XX our At million loan the revolver. XX-year we had to of As $XXX $XXX outstanding availability approximately revolver. we and repay during end, a term our million on proceeds

guidance from do as displaying taken a we're contemplated our XXXX per to a into introduce of about for $X.XX to X.X% let expect year. core number share, and new targets be we of supply $X.XX of headwinds account We $X.XX the growth. the FFO Now, We range our guidance XXXX me in in anticipate we've this year-over-year implies XXXX. for

by driven NOI expense X.X% of X.X% both same-store the X.X% of X.X%. the positive continued expect to to and We revenue same-store range in

offset slide focus will Our decline in which strategy occupancy. anticipate increases rate revenue we growth on remain will a

over will Vegas. stores same-store XXXX XX% include We’ll have Texas, Louis, in increased Our represent Las Florida, at St. of Georgia, portfolio which portfolio wholly-owned our XXX end. presence year and

will expect in change XXXX. our We slightly same-store same-store growth to the positive to be pool

portfolio. venture from investment $XX XXXX first range joint acquisition to quarter. from million the approximately close We're to the and $XXX million strong off stores activity million On $XXX expected starting another $XXX front, a with in expect to million will for $XXX we our or wholly-owned our close

we're JV of value. accomplishments expense in from G&A our believe expense from Finally, guidance In to our with XXXX revenues. NSA consolidated this to range of assumes non-cash operations shareholders of with the again ranging than our questions. JV entering competitive for we're our between activity. continue Operator? call to G&A significant to total your operator ranges in closing, cash and revenues the NSA's turn XXXX in activity once of in take positioned we X% long XX.X% assume X.X% able consolidated X.X% level G&A all our and very to XX% of our now to all X% to rather equity revenues, back term growth corporate to revenue We'll If creating well only been just produces. pleased cash factored despite maintain count revenues We've the management we

Operator

your we the W. conducting this Our proceed At comes [Operator time, Please line will question. of Milligan session. question Baird. with with question-and-answer from Instructions] RJ a be first Robert

RJ Milligan

back to to comments supply. new Arlen, I your go on wanted

expect that two mentioned three going two three before supply to demand that the peak years you balances decelerate probably XXXX, revenue expect is imbalance You it's two balance? Would and yet to be to new to we hit demand supply out. that you until to to be same-store a or demand deliveries, three there for supply year year

Arlen Nordhagen

XX but top big with we not us, that reflected Yes, miles, within to pressure. is would peak is We're I into thanks, XXXX expect we've guidance. portfolio are deliveries our Certainly MSAs, least going heavily in XXXX. the the our fact lower XX% about a pretty of that and RJ. being the of for stores a our In the see so to those certainly year diversified of with on at carry new only least XXXX at competitor in and than help general, focused have that XXXX to five fortunate performance normal

similar going but in definitely new probably we're big an a on don't don't think, I being think range I supply, and XXXX a see be XXXX it'll I all -- fairly built-up based see this to don't So uptick, downturn.

RJ Milligan

of sort guidance providing fact acceleration projected that for an deliveries. XXXX, new for the peak supply obviously given XXXX you So wouldn't is expect the

Arlen Nordhagen

revenues. That's right impact because to move are ability to XXXX deliveries certainly the going XXXX

RJ Milligan

I properties? early not going these wondering some accretive more non-stabilized curious with could give they what could color more they're properties are? day the under quarter on properties average the there was you contract. associated acquisition year-to-date whether is transactions some dilution occupancy a fourth the if or on We've cap been all stabilized, if seeing you or provide Are of acquisitions just for or details lot And of that one, these on and properties. I'm in are rate? any

Tamara Fischer

Hey, RJ. Tammy. It's

as little assets, bit little seems under our PRO. certainly portfolio new XXth a have upside the of those those And XX just average And the below, coming our the But to don't we we're PRO with acquisition existing still So, from a of expect occupancy are to connection our we're coming about maybe dilution whole our assets in of properties quarter addition in the any in, that a move-in, committed and at then as acquisitions first or Southern new Xth is we XX%. close closed point, see bunch this either of probably of making. bit with stabilized XXXX. properties, in

Arlen Nordhagen

from buying lot But a we're you're stabilized properties properties. We still not on in not of right, and those or that are CMO properties that's RJ. definitely the low very away see We and this the industry market believe high-risk either staying occupancy where is that. we're

RJ Milligan

acquisitions? and then rates year-to-date quarter for on any cap color And the fourth

Tamara Fischer

X.X% We're rates movement it's for range much not cap to seeing us. in still in either, that X%

RJ Milligan

We've seen your peers And higher provide last Okay. expense XXXX. question. one for guidance some of

Just curious with maybe could growth break separating taxes, of the growth components property out? buckets or any the if for other of guidance, you could have any breakout expense your assumptions you expense you out

Tamara Fischer

bit, a little grow be inflation. what to just do tight expect over cost that'll No that's taxes involve a in we're expecting on by property assumes. RJ, in guidance to labor this well, personnel expect X% our XXXX And and we little over we market, just bit

Operator

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

Ronald Kamdem

comments, the over Now increases you first I is the just pricing one think focus was on mentioned in your occupancy. opening still

do, that? Just curious existing increases? we have in about that taking to pricing that these seen you to you your if behavior the tenants, any change so you should or change in strategy think of with And could how cause extent terms your in

Steven Treadwell

Hey, behavior Ron, customer it's in really have Steve. seen a base. We not change among our

our on get terms we're increases change send three-quarters able course quarterly And no see of over still high of single-digits We receive mid the months. to customers a and expect those rent to regular I two-thirds out increase if so strategy XX in to the to next really there. of in basis, increases, continue to monthly an

Arlen Nordhagen

And I add keeps not but down. length average that increasing, would our of dropping not it's slowly we're that also definitely stages seeing huge,

Ronald Kamdem

how I XXXX, just XXX challenge moving more you about improvement a the maybe? Maybe see there's do green of points. today, little maybe you Oregon, bit basis provide feel see color in obviously there, little over down shoots signs on market bit a do to guys occupancy Well,

Steven Treadwell

keep news but what within us continue may corner it this don't quarters last market not on been growth rate a we we the struggle Portland. tough to saw We fast now. supply Portland allowed has will as our to occupancy we customers that as that see disciplined continue while continues challenge deteriorate in quite few a existing as increases good us 'XX. and that revenue at so be 'XX, for in the to point, be has we turn and control and mentioned And be is for Yes, in the is the to question, to

in today. make the try where up we bit rates breakeven we're keep little is So, very what challenging occupancy, given suffering and levels didn't to market on for, that the it

Ronald Kamdem

And maybe the little think one, to, that of my aren't stabilized you about properties bit then last I market talked related seeing kind more occupancy. on a above

Just any some starting you it's whether lease asking further. even changes at turn developers six supply you do that incremental way, formas? about different see people aren't maybe longer a is a signs kind when versus times, up out really three, it the that ago, you may think months Any give idea to their of there pro in, hitting call

Arlen Nordhagen

course, if pro anecdotal resulted developers is at than originally up comments, certainly developments then we -- up they're developers to won't scaling of expanded number their those, in longer. pro doubt there or no they're fill times and that either do And formas development. new those, at what see missing doing definitely originally has fill of a there they'd Well and their of formas looking to developments, that they've And but have continuing number are they lot look a to from less longer underwritten or thought, of times. delaying back

of stores definitely might of things moved is So them 'XX. open of have number we see the the 'XX we that's one into though several in

it that I store of or talking land 'XX Some already about completely selling a building in some about for create mean, into just other ones forgetting are use. new demand. either the not 'XX, delaying it, people does

that, market, sometimes with run on we wish that for to believe actions line change. in So future. it will add fill the and time with state-wise. obviously even have stabilized not be would have get as would many quicker or that and We too up there started has stores the of developers have same in, you some and when periods they're demand developers bottom buying be bearing But out to an their opportunities in loan to the deal see, we is, also future to the close the actions built stores

looking we it's we're But So now, think too non-stabilized that as stores are we right value-add. future now. it's buying looking which a not not early, -- at opportunity right for at

Operator

line comes Please your Citi. with next of Our from proceed Smedes the Rose question. question with

Smedes Rose

Arlen, I that. wanted to just follow-up on

still in are interested that might You at in that properties mentioned you be some lease-up. point, buying

So, guess, your more things what from mind, pricing in a perspective of if change to it's kind or either that risky a sort too of would I now, perspective interesting supply opportunity?

Arlen Nordhagen

Yes.

the that things the look we the keep price that properties we So would and on at buy we two number as can at. looking one,

So profit a are were than to make at lower although far looking the most developers trying this. part to prior lot for still reasonable, a they

maybe what look hit that time a to waiting be to supply working time the then of within a And we're -- properties will until to so, and And very profit, we balance at within even would at we be or -- the the that developers some market when factor. at at one small be is, reasonable at want buy looking selling the break two are see stabilized so other can supply of many to stores of create mid balance demand, is years into those new get look demand so true at most development at where of we this type new we balance. the doesn't in going as to kind we those that total stores how the we look at markets? one the said, at I come and occupancy demand a are in after because XX's that So store, still period

looking are pull before would be those the at we'd trigger. So we things the that

Smedes Rose

you to no expectations, maybe more over than expected, wanted to point move-outs, Are past you. just was change from function if you ask but in manage least to occupancy our there, it can or revenue just a is I'm few seeing manner. any steeper XQ, I the more little mentioned XQ I there's back change? behavior, decline I then years. just had you what we it's on wondering consumer anything of mean, in a The sequential at And looking

Steven Treadwell

to demand it's far was the in out XXXX Nothing sometimes We to there, there has respect it a occupancy think when going supply XXXX a everything dynamics the we're just and what I of that comps out function consistent get so the in changed look at comes really timing issue. it's in really we and with seeing QX what we're to on occupancy. saw dynamics. compared consistent we think to suggests materially performance

Arlen Nordhagen

I down And know want up, because do down, that in to, maximize we we good, with our revenues. slowly will keep going we're go we and a are little but to certainly doing velocities we're make happy there's bit to We wanted know that. occupancy, if go no revenues that. think in occupancy go could and And tracking we our we so point the

in And but the very try and it certainly decline allowing kind performance optimize what of so it's not far the kinds so that us been industry as proposal. in by science, an we we've those that's small to exact market for well leading worked of

Smedes Rose

thinking then And for now. is portfolio in of last are have to about be me, you or just properties thinking of are you or of Rico it you those longer-term intend market? may you that this those Are how hold one guys your disposing Puerto -- Okay.

Arlen Nordhagen

that pro market, been it's analysis of and forma. market the completed with have We very we're the happy strong

economy lot on the a stabilizing, a the big seen to in supply have it's it's the be And that's Island recovery not is progress the a positive very future, but of low going and We Island. a though, of population market.

we're happy lot in market believe long-term. potential two, of But increases between up make in any we for absorption that with room for rates. in we've that continued declines staying those -- population. a concluded should And there's So

Operator

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

Jeremy Metz

how that you're color what's value at of get many PRO value to pipeline moving on pipeline? And ballpark into Wondering the potential assets more what captive XX And the then, at some six there closing. timing the that on on of of Just those. the fall getting And any added, you those? attributable to sort question is. those

Tamara Fischer

in, are valued -- $XX it coming the see So moved XX, The time captive go the assets, million quarter the range, north $XX pipeline call as XX, assets roughly and $XX non-stabilized will call XX million years assets those remainder million. assets the they're call was mid would $XX our next will in right this of three over is it over expectation, -- into million. couple of and the in are come now somewhere valued I with

Jeremy Metz

Okay.

Arlen Nordhagen

total those few of another still probably million. But quite in a certainly the year, three three or is less. And or timing next coming over -- more. -- of up relatively next, years and will probably this -- closer But to the might short-term there'll I'd in then maybe pick like maybe year we say only $XXX them be three two

Jeremy Metz

you discussions over in or time Got hit or PROs those like one here. adding add having one it. you to here to mentioned to longer? another Do XXXX of And three further any looking -- you're two get can feel much you

Arlen Nordhagen

of would related general, some to discussions personal, be very another issues personal ongoing we say of management would sometimes late of to join would one timing if as for their have so so year. or period long unlikely have the like it's in in situation, I And, tax it's us the that. that this trigger year control family those when often we such situations, guys a but and their or we Well, pull they it's other don't things the with on time, very quite decision -- want really a

has of around of the to a pace historically so decisions. really our actually join we've on fact just very timing that normally time, it's personal reflective one So year, their this these us have short been within period that

Jeremy Metz

that. anything move-in in there guess, that that with comment you particular onboard? I drove And on come can are you finally Was sticking to

Arlen Nordhagen

are that of that I year decision just is existing well, anniversary some public helpful think couple now fact four company, acceleration company. within which of from an been it our the the for as an we've longer public other one as company could we as and create makers now, the approaching is a months next things

weight are of a performance in for how looking it PROs of to at that's PROs have lot been. successful PROs, perspective think carry really our see record I existing starting they particular, is a other track our as and

cumulative in has And than the the record probably had of bearing past getting have track others the that, quicker years, along four PROs to a so, with some that's done. of trigger maybe pull on

Jeremy Metz

switching how Appreciate And your just quarter? effective Can to How XXXX? on change rents from one. and you you're any on for the in Thanks. already comment that that last quarter gears that. if compared just in here net seeing trended fourth move-ins last

Steven Treadwell

Jeremy, Hey, Steve here.

movement nothing movements rates course year-over-year. So the we're new deteriorated over seeing the for in a dropping of low-to-mid but single-digits bit little it And XXXX, significant.

not of that from was likewise, is dissimilar that QX QX QX. QX. this And So year not dissimilar from

power. So all in all rate in street phases low-to-mid single-digits in of terms of loss

Operator

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

Ki Bin Kim

management, the and little what talk pricing since you IPO come you kind of science it kind lifetime your do of much to like that where a about dollars, your have we behind how of kind has are bit you from spend Can improving it, do? how where revenue -- in more of marketing and

Steven Treadwell

Yes.

management better quarter. in of more and continue platforms some that still revenue lot benefit out continue that more plugged lot into. a every traditional to technology to with the that to there's we room And we start from I'd addition grow, were lemon, the get proprietary develop to definitely to seen say So that juice a and have last of program we we've few over of years squeezed

there, we're definitely be our with better effectiveness considerable of our seeing upside, at, lead there good lot our so respect the new what platform. to still search still to managers internal is business could trends we already per value ways add upside both And seen, think when it per platform We're there's manage as So learning, upon. both lot they're a of so significance improving not provide to engine SEO our better find cost at to plenty And things as we've and I that there. marketing, when there's movement. platform, upside but you tools of marketing, our with to continue to our PROs in and look things upside cost machine we and for that our and and comes analytics

Arlen Nordhagen

if baseball pending like say, or that, probably only in the like of we're in something or talk -- the fifth in like of the fourth I'd game you terms a it about as a for still of but opportunities that of is to certainly We we lot take a opportunity can in lot our technology upside applications progress, advantage platforms. relates made it there us.

Ki Bin Kim

get estimate, the uplift you but possible? know much think more same-store do hard ending, as I NOI in probably Xth how to is you to it's margin the

Arlen Nordhagen

able I get right think I pretty have pretty able be get Storage's another mean, we be X% that are margins peers time. margins -- obviously we the couple But to that amazing. with exception we our still might Public out are comparable to should over

Steven Treadwell

be driver Yes, itself. to than actually platform the big the going of rate is

Arlen Nordhagen

rates, is The good thing totally are market have which more least that lower. where at is most we taxes property, those also specific of in

there in you're with So going proportionally a make costs. example, not higher to rate going for so margins higher you than could lower be to end higher to rate -- and much that and high going up the as labor hard get not -- level to on but labor you're those market. They're markets it's in expense that market as

Ki Bin Kim

quarter about rata leveraged be Okay. your sheet, balance least times. to your And X.X terms at pro of look as of in was third

but assets, to of but and enough lot funding SP leverage you've a keep and it buying not OP, -- neutral. been been that with You've

thoughts do a the balance if or the on reload equity see have in you any if need Company? you to So of just have -- sheet larger to base kind and you

Arlen Nordhagen

a completely sense we anyone to not to that's do makes because joint through to much believe on venture look debt of non-recourse do fact the us. debt it the less general, In

And leverage the so in on like at run. debt our JV look we the to they our level without frankly is a of debt choice-based JV would partners more because that JV the

looking able range, the do times to OP you pricing equity, are the standpoint, always we try go at equity that the to the ahead pricing look the of our and with to for EBITDA, or we're in but shape. when sheet that stay has to being But under good. and that is end $XXX think price attractive comfortable the our of our out, just get it, on to equity I which if time is we're Please to good through is the we always certainly target take will keep any do to pressure so lower we raise looking always I so other anyway. that us X.X always because X.X map the acquisitions certainly don't million all times. if of of additional on balance that, we're opportunities at of toward Tammy and coming SP without we our very but in when which be continuing times X.X comments, having market really about not is know

Tamara Fischer

successful think that's at think set maintain to objective now. sources our working And and that. it are we've reasonably I multiple capital of really been well is I to on up we continuously on when

Operator

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

Todd Thomas

the move-in. follow-ups addition Just of a couple on

rights? will curious exclusives think move-in was where mentioned be you I those Arlen, the just but have will exclusive specifically? I First, Mid-Atlantic, where

Arlen Nordhagen

York, that will really Maryland Pennsylvania And Harrisburg in strong the in York that be their they New presence so parts in New to have and addition area is Jersey. an presence and exclusive some they parts in in have Yes, type of and area. of Lancaster, in then

and areas kind have they'll limited we presence And very in growing the really so markets. on that's that focusing those of be

they So their there. and it's within we geographic addition to continuing in areas a grow think to those have where great and the be platform at markets relationships they'll of team, very tremendous successful number -- a our

Todd Thomas

cap portfolio. talked maybe for Okay. you sort rate? valuation the portfolio maybe Tammy, you about that? the talk of on the specifically, capital Can implied sort bit And splits that What then terms the of of look you that contributions equity OP or between like? in for SP a characterize the implied and about little can contributions, talk And that

Tamara Fischer

is toward range. -- end we've range bit and cap to cap, this X.X% the general question acquiring a of with in that I'd that little is the the keeps which that same at range higher the So The first. rate been assets start last X% and

of the of today. completely terms In it's equity, down nailed amount not

million away maybe million carried with $XX say too get $XX equity to want of it, don't and I'd I value. million $XX So of but about up

Steven Treadwell

rule A that value them decide equity, want mean more a at minimum of total of power that a But number most of around equity as as contributions. on that's acquisitions a use PROs SP all. And good property of number. SP because is be a almost it a buying XX% that lot to kind contribute of gives would thumb I of for well. PRO needs good the minimum. And to than a then of future that to they XX% lot

Todd Thomas

$XX that a end the already to activity, so just to non-recurring couple the million. to that income follow-ups the projecting sort Does And guidance, acquisition closed fees million or then anything what's on year, in any of anything include nature? you're related the $XX subsequent of the fee

Tamara Fischer

joint that's assume doesn't in ventures our the $XX acquisitions in haven't in actually joint $XXX guidance, yes. But we in to closed we the QX it we million so No, that by the ventures, anything -- million. disclosed ranges

Arlen Nordhagen

way also we setup, book earned. But as when those time them, received. acquisition technically fees receive we we fees, they're that contracts don't because on one already the we've day over accrue acquisition are the We those accrue

Todd Thomas

Okay.

acquisition So of million to in how 'XX? guidance, that $XX is million in fees related $XX much to

Steven Treadwell

XXXX got do some XX% two level, of we've around we Steve. It's those rounds joint for Todd. joint And fees ventures. Yes, probably to from within have through ventures. the acquisitions then XXXX top stores acquisition at projections new It's

Todd Thomas

over $X million. it. a Okay, little got It's

then, 'XX. the for same-store would increase in growth Tammy, in mentioned just to quantify XX% Can be Okay. pool you And lastly you accretive that? me the

Tamara Fischer

again? What was the question,

Todd Thomas

same-store right 'XX The increase Yes. in the to in now, relative 'XX pool

Tamara Fischer

expected be there are it'll XX Yes, about. we Todd, say points So up to slightly might it accretive, basis be

Arlen Nordhagen

in, on opportunity little because in in, the a there. occupancy basis numbers some results neutral pretty non-same-store upside Then about affects when on roll there's the it we it, blended pool and the by close more XX to a for bit little points. better it's same-store it it's our pool Yes. we But when

might on impact, we stores have if there, so not So NOI in a have been if X% it's it's didn't is X.X% our our but midpoint new whole same-store the on. big guidance

Operator

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

Tayo Okusanya

The be could to kind slowdown all is wanted comps of you've of year-over-year 'XX a much that portfolio to is fruit about portfolio? How kind new kind bit. the there relative I much hanging exact year talk slowdown of way picked but tougher you in really in an impacting there's NOI it of the -- how over quantification, of same-store quote-unquote as past more little two? is the to a 'XX, supply up low or the not

Arlen Nordhagen

I say, differences. XX% fruit, Of less the course most related hanging it but the I into even supply we fruit end but is could pool hard it hanging to up to low is to of -- of it's say before goes getting certainly would low beyond. There same-store

you there's five we markets our I within especially, common. some markets new mean a I Portland, of have less. it's of XX% a miles. is supply, five that radius. mostly And thing -- of kind look So competitors supply stores new those stores where that, But have mentioned supply five at of that's lot that when But within have mile of we're like that some new in

deal, in the really store, markets be new more some have a that's has in guidance. lot it what's impact, but wouldn't and one causing that impact. So our that slowdown is If significant some all of a bigger these you have

Tayo Okusanya

on following-up out versus question at And of give was earlier the they're moving-in are a transpired on moving just how to move-outs. regards of then sense through move-ins Again, out what rates just at? mark-to-market kind the sense -- portfolio that XXXX? about and in XQ, that us in And could your Jeremy's you people the moving

Steven Treadwell

Yes, Tayo.

QX of of all the in for churn that QX, QX. QX, we higher you negative low we whatever that was certainly of see gap So, QX to to mid-single-digits XXXX, in term of then down, in like, sort expect in roll and and during and see the terms we're the close and it

low stronger thing had where we think a in churn. a we'll weaker same what I of mid-single-digits I But a saw to in So say XXXX, terms as the negative see than in the summers XXXX winter. we would

Arlen Nordhagen

be average would the year. blended the for That

Steven Treadwell

year. Per

Arlen Nordhagen

or We double the but is the winter, something like it in that. average

Operator

the the call for turn gentlemen, remarks. to have and Arlen And session. Ladies the end question-and-answer back I to reached of we like closing Nordhagen would

Arlen Nordhagen

quarter XXXX Well, thanks call. again everyone earnings fourth for joining NSA's

in with that our us last we're with positions Southern XXXX and the year we very the of discussed, a additions FFO for our XXXX really per of create substantial Storage NSA XXth Storage Self growth growth in will and and XXXX. we've As new combining very share PROs increased shareholders year's value in move-in joining strong growth ninth pleased for Self experienced

Fargo week interest As the always, continued in operator. Wells Thank Affiliates. you, support York. we very later And Storage many we seeing in of much Conference of to New this National appreciate and at you your forward look

Operator

concludes This today's conference.

participation. disconnect for your Thank this your time. at you may You lines

National Storage Affiliates Trust (NSA) 25 Feb 192018 Q4 Earnings call transcript