NSA - Earnings call transcript Q1 2019 | National Storage Affiliates Trust

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Operator

Greetings, and welcome to the National Storage Affiliates' First Quarter 2019 Earnings 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. may You

Marti Dowling

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

the our supplemental are website section with filed to In may from contain subject yesterday, results, prepared remarks and on to on forward-looking On The statements at package may cautions release the be statements. the may containing with our that in found additional we risks in today's actual addition management's call, forward-looking SEC company to an your answers uncertainties. press our those X-K which detail 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

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

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

Arlen Nordhagen

Marti, Thanks, everyone. and good morning,

and also implemented venture of FFO NOI quarterly X average and grown share We've of new investment a point year-over-year. that like plus of almost helpful IPO, of an drove discuss by be properties, I by nearly that management I added highlight it aggressive our such, same-store internal PRO strategy. X.X% Before of average over billion as time. we've to recently to out And think, celebrated quarterly core context accomplishments our quarterly first PROs our $X I'd X-year XX% acquired per some IPO. results, we Since the a year-over-year anniversary our our would joint

IPO, we've in perhaps beyond. the Lastly and proud success most of returns shareholder look Self importantly this XXX%, and and of leaves We're our date, total over delivered continuing to sector. XXXX forward very Storage investors, since our accomplishments to we for which

Now that first current a remain rate Storage. favorable is environment, highest we in solid. quarter the turning broader quarter, X.X% The And economy the Storage the to growth for the grew see demand units backdrop at of Self providing for X economy years. in first Self

projects continue suggests peaked, we're Regarding pipeline new projects of being that construction planning in recent phases the data canceled. supply, under and has encouraged market that by we our to see the

of another We our chasing continued report represented will same-store desirable amount We competition continue differentiated front growth also revenue XXXX growth peak to NOI believe deliveries this be in in from backdrop, Once our excellent quarter markets, X.X% of again, our Against we're and benefited to quarter. the XXXX strong first pleased our another that although same-store year. the supply significant results new to continue to significant of deliver phase new were assets. stiff in results growth and there our as these strategies able external remains a on pressure on we while executing PRO capital, platform Self strategy. the as operational from supply Storage hone acquisition X.X%

share deliver start us core outsized to growth to well per year in XXXX. positions strong Our in the FFO

To for from pricing $XXX for brought quarter, rates relatively with knowledge. mid-X% acquisitions PROs significant. of couple acquired acquisition local relationships and quarters. structure in recent cap volume few two operations a range nonstabilized remained to In in million. and In low We and properties of sales, on Southern approximately was markets. through where a distressed except established XX addition the PRO we cap Average high, properties for many during and haven't to we to market remains rates much Competition spotted their as our the healthy and date, seen a total benefit improvement new market unchanged Moove severely continue haven't from overbuilt

our have secondary of we to from the to trade relative the we quarter primary expect grew a by fueled will X-mile supply level in a our with markets. year by will markets continue benefit are JV our From levels geographic portfolio, combination the These course growth, pressure per XXXX, experience or $X.XX XX.X% our given NOI seem first given But expect peers, That plan I've balance supply-demand impact significant year. a from the strong at we our the fees weighted elevated robust of as volume the and new period, that of mentioned our supply has share business in of portfolio team. outstanding the entire results FFO favorable exposure over market majority excess supply of core estimate of prior cycle diversity acquisition NSA growing in and higher will increase fundamentals on markets our stores the supply of Our and same-store supply, we of new to new been this perspective, believe area. from a the said, before, execution our affected over remain platform. on to by are the XX% to of picture. our reflection less disproportionately We in

growth. life in-place of additional upside source supply increases and our the we'll marketing occupancy gain We acquisition a need forward. going is confident of occupancy a efforts point stages our the is basis continue first complement as with an inherent the remain in the We holding several further XX XX levers our we markets platform, single-digit to on including acquisition in external encouraged we for of key a and in PROs our internal decline customers, PRO industry driver differentiated push Internet platforms, venture quarter, platform our street drives our and their early average for Having by the ability to in management well cycle which new fact year operational that full our rates in provide growth in network deep our point revenue we're following acquisitions, strength increased to mid- Although marketing the XXXX. discounting, team. rent We're strategy. and basis XX to and addition of teams to XX our to a of having waiting as the pipeline corporate in which revenue means active joint believe field, relationships essentially PROs in high of

to XXXX acquisition guidance on full acquisitions $XXX year million As meeting our $XXX million such we're approximately with way in well $XXX of million. completed to year-to-date, our

FFO leads will our addition, properties that yet the achieve growth but sector-leading billion. that, by In same-store core at sector. us is per NSA NOI captive over Tammy. external share XXX the our managed powerful not that we This again I'll growth acquisition to $X confidence With now combined approximately currently turn our valued growth gives by with call engine pipeline PROs owned over

Tamara Fischer

Thanks, Arlen.

owned As nearly pool same-store mentioned same-store pool last and on XXX our our of stores call, our represents our stores. wholly XX increased XX% XXXX properties by

X.X% by For revenues growth quarter, and expenses. driven same-store X.X%, property increased the operating same-store by relatively of first flat same-store NOI in

increase in were pleased quarter. drove basis tenants, on in increases And rent rate the existing the increase push to with XX occupancy continue X% a our point we during which annualized average per We average foot. square

growth due expected healthy stores was to the Our this a the to this contribution revenue than XX pool better quarter, year. added from same-store partially

flat management the line continue revenue benefit Internet our and many efficiencies, increases addition, in we're Same-store in remainder PROs, from just at with platforms. benefiting our our moderate evolving for was X% who taxes X%, In markets. of under relatively seeing from to in by expense property under growth solid just quarter execution marketing and operating the of

remainder more the pleased growth be throughout do impact are with sense year. of full Notably, we're level half this won't of and until taxes a property While back expect we very of we result, much the wildcard, year year. a to the good normal at a have the the expense

Turning geographic performance. to

Vegas, Tulsa demand include Los has that included Phoenix, Our best stronger Oklahoma Indianapolis, and and Markets supply growth been than Las underperformed where Dallas, Portland, Atlanta, MSAs City, growth. most performing Angeles Riverside, supply. by flexibility fund to our we our new aggressive the strategy which to continue With growth. we to were providing balance need remain our conservative to committed impacted sheet, respect of elevated

During in with $XX equity, the acquisitions OP completed. we connection million we of over first quarter, issued the

In we refreshed just in addition, our March. ATM program

ATM quarter end, our This we additional during we capital. our is quarter, received of will evolution While tool utilize Outlook a didn't of the rating a sources think Kroll. to a to Stable attractive Subsequent an capital capital. facilitate key with sources and BBB remains step of about strategy as from we access the of it

borrowings loan, term We XX-year a the of We our on used also fixed to proceeds million closed recently interest on a reduce rate X.XX%. $XXX revolver. with

of and X.X fixed debt average now average cost years. our weighted Our XX% approximately increases is recently fixed the our X.X% at debt to end of maturity our was of rate rate. weighted term quarter XX% loan, completed debt After and was

of net week, of of the million the Given our term of have quarter, our the debt-to-EBITDA proceeds $XXX loan the million end on middle additional to range X.X first approximately of At $XXX X.Xx. was the million revolver. we Xx, ratio last completed $XXX availability target our

debt no have in maturities We XXXX.

for address me guidance let Now our XXXX.

further been as quarter expectation. to our Although our leasing it's to until wait guidance results spring year get before strong were along full the our our revise peak first we quarter trends summer and season subsequent we practice end,

guidance we're at reaffirming and time. our unchanged So this leaving it

you year. same-store we somewhat challenging to the will the new the year the moderate expect NOI the We on increasing and of that caps of pace more to and supply growth continue for pressure remind half back year-over-year progresses to as revenue due

at second the our of we'll earnings our However, release. numbers revisit guidance time quarter

like a the move an investors we're that institutional the on be to and PROs the for in I'd Portland analysts Oregon. call, tour Tuesday, Q&A XX. We'll upcoming and meet we hosting June highlight to property of Portland, hosting portion event Before on

the to an for the take Thanks PROs that hope this the the investors NSA it and to Operator? Given which in and for we to interest join joining call reflects take operator More will dive exposure morning. provided a deep turn efficient for details be We'll we way be that Portland our again second-largest with PRO, decided to market. into this our is analysts to back shortly, questions. be market, your more you'll us event. our and this interact now and heightened our able will

Operator

[Operator Instructions].

with from of question first KeyBanc the Our Thomas Capital comes Todd Markets. line

Todd Thomas

wondering Tammy, the the question. And was quarter? in same-store the the discuss impact metrics just I could pool. same-store changes what first to the if was you on

Tamara Fischer

Sure.

Vegas, in Las the added stores X the the X%, in was The in the stores in Louis, mentioned, same-store and than better growth XXXX were same-store XX I old performed pool year. NOI that's Shreveport. - them of overall, on have XXX actually new XX X this same-store same-store we in X that And Atlanta And pool stores to on were St. the our the Todd. growth X pool. pool same-store As market, year, in been X.X%. would last Portland at And in X Portland revenue

performed the ahead expectations of quarter. stores So new slightly our this

Todd Thomas

about give helpful. of in revenue further the terms us I And was But in how the and NOI of guidance, year sense business. little waiting ahead a the versus quarter? much That's the seasonality quarter your into the can then Okay. of just expectations you given policy in revisit the if necessary, the guidance, a understand to the

Tamara Fischer

maybe it the the over ahead that thought We say points the where was cut new that basis same-store will from was I'd diminish to it benefits come pool. stores of think probably balance We So out. of to XXX year. going the we

have we comps of half back the tough know, you as also, the in year. We

off, challenges And just so spring XX% We of and this be revisit and it leasing stores new facing it supply. see are would supply, to season face prudent hold goes thought from summer the [indiscernible] new in how our of

Todd Thomas

question. Okay. then Got last And just it.

trying either to increase at PROs more existing In quarters? some years? or the joined have talk changing sort program the changed been just PROs, of recently all wondering sense historically. few recent to have policies, changed about get or on terms whether program you of I'm customers sort the the recent may of in last of Or as a is that pushing all existing rent platform Or legacy maybe along for the if years PROs could a how of customers, REITs was some have little the more? to bit that I

Steven Treadwell

sort revenue been Honestly, of do the the differences consistent through quite Todd, management. it's started our rent say, Steve. consistent time. years time PROs have been The pretty increase programs rate's earnest terms sometimes, really on line, with policy last, generally but our we've in in looking since in I'd in we X and at of practice

in anything summarize, for for the the on getting than different seeing of aren't rents quarter, of And doing increases we course on, across years. been to just single-digit you X/X to last So raise what quarter expect this we've high year. and average customers still every the our couple sort we're of let's say, still

Todd Thomas

that the working also increased is joining do technology Have just necessarily not the best you with after confidence initial company? either have have and they of what some more joined get company's either seen, of that since formation And or platform for the practices or of what's sort consistent the happening? and Or the and systems? PROs sense about with you that do aggressive NSA

Steven Treadwell

No.

bring the and their behavior they from Certainly, their fair a and learn peers. we into them certainly that's them adjust think get the our plugged under as platforms, new umbrella PROs NSA definitely I point.

sort so been consistent since if join rent they've happens been comes on But NSA. would of will when new when with pretty comes they PRO you And online, and fray say early has the everybody to increases. a I it that

Operator

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

Ki Bin Kim

you about the talk pool same-store definition? Can

Tamara Fischer

the pool periods of Same-store we same-store, own we Bin, both definition, being upon. stores define way that reported those the for is are entirety all the Ki

adjust of year. X/X/XX - that same-store of in would the do owned XXXX we course all the And so And the least pool by pool. same-store historically, stores we our not be at NSA, were the

Arlen Nordhagen

Arlen. this Ki is So Bin,

You we stabilized assets. buy only remember

So fill-up in any we portfolio. have don't assets our any of

we all let's be bought same-store say, though during on we XXXX, now these early The our November these operators. stabilized third-party basically year the it the a from of in all year, in are that but most, assets. So example, thing changes would is, of pool, in if property, properties buy for

in quarter by our physical certainly spend our We improvements so to And CapEx fully. properties. the first property the all of had we all of we may have not that the implemented the 'XX, of have had of terms wouldn't on programs

that's So under programs fact prior than so better our sellers the the is that we performance third-party of source the platforms. the and is the much really performance our once pickup implement

And stores of so is the the to the first terms to same-store pool. new going be the highest from quarter new the always in contribution

Tamara Fischer

expect we'll a then trail see And to off...

Arlen Nordhagen

or have later won't already much it that for then And as Yes. be whatever. nearly been running because we months nine will

Tamara Fischer

for acquisition A pool pool, actually interesting. November the of that coming And completed of large in will we number this portfolio XXXX stores in are XXXX. it's same-store the that into target the

And so the it, for, the the year days really XX started. first owned the quarter call of time stores XXXX, only new by we've

up that the of differential in first all - as adds So positive create to differential. quarter, this

Ki Bin Kim

be I be a of you still have in maybe property developed might considered that you buying the pool kind to stabilized? not ton fully occupancy Do development, an of because a recently same-store minimum you're would not but stabilize projects put realize

Tamara Fischer

we properties. - practice nonstabilized we have No. We didn't of not really a acquiring don't, and

Arlen Nordhagen

be we definition to market is the the average the is they that least at. that at use market So in above occupancy have

if any that's that into So for theoretically don't are pool basically, the store typically we occupancy. occupancy that occupancy market. the average below the that pool, But is of the XX% if properties or XX% same-store their go XX%, the was in bottom market - could XX% a line stabilized have same-store

Ki Bin Kim

and much that sense you your same-store and what uplift revenue what directionally like your able I property markets, PRO probably to the it mentioned but Okay. on in actually any And which know of uplift how are platform. get? you depends assets you'd a you're to add once getting adding

Arlen Nordhagen

had year is long they average, stores we that we see rent was. prior when typically, for will on performance average what come by who portfolio new a it our same-store general performance on in, so. of the our first that varies in while a so for the they lot time Well, operator But or double, is the

Ki Bin Kim

one digits. mentioned you down just rates call, low last guys mid-single conference remember that street were And I last Okay. to question.

a when surprise. is pool? you the what of So of the revenue you're for street type seeing rates same-store current talk quite we Can this a today bit it reacceleration, see about

Steven Treadwell

slipped to well. frankly it's say, about bit down and Yes. on I similar. the last quite street rates true little probably this. time have since but about a X% we the now time, versus Ki, of as talked would It we're this QX last may X% that was bulk right year to

for some quarter, headwind rates we make made mentioned for rent us, obviously pickup. street up occupancy increases a existing for with for to So QX, this are customers. still as - for up And this we

tough a we'll out new still store by type by the unit with and out is it it store fight work type. and So there supply, unit

Ki Bin Kim

implies that only I to and rates occupancy, from your stores, just basically, it to And points a am assume right low the way way huge XX It it added average think is negative still year-over-year. to you the if newly the especially digits, about program, so that to you're as pertains correct show mid-single ECRI street that are up basis uplift getting it? is

Steven Treadwell

correct. is roll saying pulling quarters lever down to we're a we absolutely we've rent is that existing customers. really been the increases And There that for that That's No. several - revenue putting rent rate growth street and the than offset grow that's when being year, we increases, go last and we and lower the effect through that achieve QX. rates for with there, X% that how the out beyond we're now rental

Tamara Fischer

to occupancy did from the right. them. new But added lift in get stores we a that's good Yes,

Steven Treadwell

Absolutely.

down look at we about of you same-store the the stores the bps existing the of the that customer saw I increase a prefer. new XX rental in that ITRC or pool. rate street you new is and that which from tailwind a rate that from trough supply largely combination headwind the coming of increases QX, So and is when - rates being and When X%, currently or think

Operator

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

Ronald Kamdem

Ron. is This

year? quick the One, Just rest on of some of for And quarter? that you're the trends that for something discounting - spending that we the increasing? me. would just thinking channel? see that how could the then looking And how in is ones terms a touch And the advertising, that couple you happened can follow-up online of you where at in guys that about to be is

Steven Treadwell

Yes.

We're a X% number bit here. all was say up So factors for fighting again new many QX, And once preferred with year-over-year. discounting of year-over-year discounting difference. rate. many markets in about the makes would a supply I same as we stores, many our was a street of a quarters. that to of probably it our times, discounting, flat for And so said apply lower it's

up. have cutting So revenues definitely lever. and in our driven seen some doing job flat our if marketing that's you We much can, will, know and we been peers by just that pulling think platform, been I that pool is year-over-year. When platform they're actually of advertising we rate you have advertising with expressed team, where a marketing spend, about in on lower better really year-over-year improvements or spend, advertising

the And downwards so us. for cost reservation, seeing actually we're per lead the hedge cost

bet more I we and So to in cost advertising wears on, more so expense generate invest as that you constant has flat would the been expect to rental. choose may advertising very year far.

that's we expect what So but I to QX. necessarily, flat for it saw stay don't

is downtime the it maybe QX I QX discounting altogether, really customer of is acquisition tieing in very say, to so advertising and cost is sort in biased would up, was stable. So flat,

Arlen Nordhagen

be of up, improving per spend, doing are Google when - more new tools more with And are than the get can as longer marketing those a a company. effective of click that fact our since but really It's that of with knows the everyone that lot dollars. we're we and platform and we benefit just with get that some cost we been a those have we we them, going how have all reflection, we obviously refining and Ron, peers not do it effective the our keep our it's

we system, and go already they down refine continuing forward. So we're things those to milked their just them got as

Ronald Kamdem

kind what could you follow-up line get you operationally, acquiring to And it Great. of cosmetic through structural? program the uplift. X of then X what That's guys sort kind or of putting just if Can really then of things in just low-hanging terms doing it are the And the just Is in your it helpful. talk fruit that the of uplifts? terms those properties? asset of Is in previous to do questioning the terms then about I maybe are of like on stabilized facade? and that driving

Steven Treadwell

drive are poorly are improve kind as existing varies since There a have look store, store marketed, find find by undermanaged. been different customers not portfolio we stores a of the we'll allow Yes. those where just swathe we find we It's always store, cases be getting previously. of that we to not the happens managed It's is There as find that. we lever store every a where certainly that across portfolio. has us and by where but pull. broad cases we There across are rent and to consistent some It can and that for been increases, catalysts cases that can we value. will like

sense combination all invest as certainly do appeal of advantage the we get, in makes things. as it's improve a use current where and you We well. we it those can So that every and and say

you talk So I answer, it's things can't focused more I about. apologize, but give we all the

Arlen Nordhagen

don't for sellers negotiated be that, see part of contract we rarely that effectively problems. would as do we - have where thing paying the say, those Ron, structural If I one be like repairs. we would the would

more and front money total on it's acquisition property big attractive, So almost a the that every our on the a part property geared almost buy marketable frankly, of of budget. We never. that's these almost spend It's we towards things make end. all more lot

Ronald Kamdem

the I That's just you appreciate can found helpful. No. really it. perfect. the from question MSA, I your to about is your on was markets. But I this standpoint, team same-store by think And potentially what some That - just supply guess secondary answer forward Got front? be going helpful. you hearing I just, which on us, of the of disclosure to what's thoughts last are your we've that? moving that What talked provide are

Arlen Nordhagen

pleased supply fact balanced secondary the much the they Yes. most been part with In the more the while the has very demand with that general, have supply, certainly we're new markets growth. for

there love is Now exceptions People growth you example, secondary much. XX new markets. Austin overbilled of from see they're to for are a that is consider not and XX. for as attractive Either secondary of they Portland of are the it's new we the are helpful. sort coming very markets what what about severely secondary the standpoint, top our a But top because and most so highly growing market, both and those is really because we at and market supply love of them rate commonly demand, in in general, the those are that's that markets of of

Operator

[Operator Instructions].

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

Smedes Rose

and disclosure the understand you wanted downtick Also A both? I just the balance NOI. wanted questions It same-store been do of but lot appreciate are the some sure that's that our in add, primarily to started on versus I to or asked helpful. I of have driven revenues we incremental make side the just that to that's the answered, of provide, the deceleration like year in anticipating you sounds the expense to

Steven Treadwell

as that year It's those of year we to impact will [indiscernible] all on. level this not but combination, wears mature the expect been have growth the partially on. do wears we'll revenue the see see newly think the as a acquired of stores I

a the So expect do when We comes their it will expenses. hit on impact quarter X% to for growth to We not had great diminish. year. certainly

up. right, tick and So deceleration in going that revenue general, on in But growth. will both be it's I think of to expenses increased exactly combination you're line, a

Arlen Nordhagen

we our to is thing the been. implemented But last pretty the pretty pretty because getting has it same-store what as programs that's slow on last down keep pool year. have but much it we're continue tougher longer will old to pool, going same-store the one - common, seeing, new the programs think from - part I Smedes, where we much that comps is those year platform

So see that's where we really slowing the down revenue the most. impact

Tamara Fischer

guidance. property while I we we're as guess to we talked I we add might our QX only you start X.X% or know, And final the in in QX you built same-store other when at And are the about taxes XXXX for X% what with would the came waiting on pool. thing analysis X% happens pleased is And still results, QX. see to for being getting notices into - remember,

that QX. have more we'll information, too color on when more report So we

Smedes Rose

XX on Okay. And rates then, Arlen, seen your to changes last the call, you X% X.X%, however? cap - about in seeing at the last acquisition last quarterly you days any or talked have

Arlen Nordhagen

really haven't down, really cap worse, No, they the improved we haven't. gone rates haven't either. haven't gotten I would that but say good news they is

mix, really that still we go range. for in - X.XX% we're we'll that you go in the for smaller be X.X% the the of primary as with type and it in to kind will with markets, larger will in number the around quarter. year in running that it and our the out right range it X% blends Typically, right And the X.X% markets, primarily. be in the average X% So markets into

Smedes Rose

And there be to sort guess, - coming Are of I different Anything since the like may market last that's looks getting seeing the seeing we in properties kind last volume of to mean, the obviously of done. properties of any, it over quality you or change market? coming are any acquisitions of, you're I you sort talked?

Arlen Nordhagen

No. Not really anything different, would say. I

equity-backed of opportunities little of these flow in of comparable. QX. seeing slower very all are there's will, course, And That's from than slower might to we buyers the them difference that a a bidding The was there coming We in would X of bidding wouldn't look XX which against say, to new than in is I and really would be that at I it other say, QX, the we're equity-backed might that one first used but volume be QX quarter consistently guys. we're typical private still terms the stuff to market, be. market will always or now private a little good the different That's in until a - deal against. REITs. were and are is be a maybe who of - seeing lot bps

Operator

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

Todd Stender

for yields you guys in pretty a Did through group. go I know the quarter? the it's acquisitions diverse the

in some the You've some then just Can guess, we tucked got that I Louisiana you've of in helpful. hear bulk, guess, Jersey those there I is cap rates, got New as be and as Georgia. would well

Tamara Fischer

across on call average, X in diverse. that the portfolio, we're were assets the and at are New in Southern portfolio secondary looking and We the came mid-Atlantic. markets quarter but Pennsylvania in Stores They're the that mostly The In of geographically time. on came same panhandle. with Todd, Orleans you're right. sort in the primarily at it, closed Moove So with

X say quarter use. I'd a average, a is cap on average So good rate to

Todd Stender

acquired X Okay. And XX all PROs? through the new were facilities

Tamara Fischer

There two other we the quarter. transactions Those obviously. biggest one-off the and portfolios that handful No. in of were closed a are

Todd Stender

across from how for how properties And the Okay. spread the PROs, many remainder were existing PROs? that not new were many

Tamara Fischer

and of know half X my PROs, that or top PROs. of the spread with the different two If say, about would rate new were probably were head. stores I the X not I they among

Arlen Nordhagen

of little only over mean with came Little the PROs. the new half half. I - just Yes. stores about a

going were PROs all continue we the to look them the all were see our existing second with into almost We're from this as to be seeing acquisitions almost half our that and so quarter, of second PROs, of And we quarter. PROs active.

Todd Stender

you sophisticated the And to revenue guess, management those how a they say just maybe the run? potential? then were And helpful. glimpse That's get for properties systems? new and PROs, run were I institutionally would Okay. using upside of

Steven Treadwell

So our of operators, so PROs say, respect, maybe most other revenue one definitely, are of the institutional in controls much. very policies in procedures, I management would and that the of terms advanced not specific was

tools, one. platform other a our that more - we maybe get benefits certainly, a PROs and the received. be little PROs new that PRO, sort have but would the of we'll that sum so And the they on - our of from other benefit house split split will from through benefit that scale it's And get both PROs get of always which that uplift

Todd Stender

last capital. pretty sources to I the AX this particularly Okay. the go have great Series have Then a question. have to, the funding preferreds. Can sources, been quarter. just you just you of go guess, coupons, you or guys in When Funding costs access some diverse, you through

liabilities assumed just with of capital? You've much, associated your some some through the costs not maybe go but

Tamara Fischer

equity that was very small of equity at most piece and I that capital The just was OP FP issued So that, under and we preferred think a that's that of issued market. issued and we par.

of mean slightly after OP So something end it the did in locked guess X%, fixed, if I We FP over and that that's I we equity, will. I And I fixed. beyond, we to should it. the the locked and the really quarter, at so you and debt X.XX% say. think

Todd Stender

Okay.

question. I I one do guess Sorry, have maybe last

Does Moody's, pricing? that kind of? that of Is that and what's just where stone for rating, before ratings S&P in? you to this a seek Kroll benefit help does the fit loan your term maybe start the from with stepping With

Tamara Fischer

Yes.

to I take stone. give I perhaps think as say, a market. I stepping stone, opportunity private us the to would access it easier as of a more of an as it more will But and think debt it we a you think gain stepping

Operator

the and comments. Investor Relations George end have the question-and-answer Ladies call we for would - to for President of session. the And Hoglund gentlemen, I reached closing like back Vice to of turn

George Hoglund

everyone, interest support that meet later property look June and to at and nice XXXX appreciate call. the seeing conference REIT and Affiliates. for in Storage first continued We you month PROs Thanks, upcoming joining tour. many in our of of forward Portland a We at the earnings quarter NSA's weekend. National your Have

Operator

concludes This conference. today's

may a participation, You day. have your time. Thank disconnect for your at wonderful you lines this and

National Storage Affiliates Trust (NSA) 3 May 192019 Q1 Earnings call transcript