National Storage Affiliates Trust (NSA) 5 May 212021 Q1 Earnings call transcript

Company Profile

Participants

George Hoglund	Vice President of Investor Relations
Tamara Fischer	President and Chief Executive Officer
David Cramer	Executive Vice President and Chief Operating Officer
Brandon Togashi	Executive Vice President and Chief Financial Officer
Juan Sanabria	BMO Capital Markets
Neil Malkin	Capital One Securities
Smedes Rose	Citigroup
Samir Khanal	Evercore ISI
Todd Thomas	KeyBanc Capital Markets
Ronald Kamdem	Morgan Stanley
Ki Bin Kim	Truist

Call transcript

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Operator

Greetings, and welcome to the National Storage Affiliates First Quarter 2021 Conference 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 pleasure to introduce you your host, George Hoglund, Vice President of Investor Relations for National Storage Affiliates. you. Thank Mr. begin. may you Hoglund,

George Hoglund

like to the National us for for Affiliates thank quarter XXXX you first of joining earnings Trust. today We'd conference Storage call

Fischer, today On Togashi. NSA's me line Cramer, here the CEO, CFO, with Tamara COO, Brandon Dave and are

remarks, accept questions financial from management will prepared registered Following analysts.

actions section distributed the the which the our additional an detail prepared on our we results, X-K Investor supplemental with On addition to management's questions yesterday, our with In the be answers may package in found may Relations press release nationalstorageaffiliates.com. call, forward-looking any actual and results at and The filed SEC containing your those severity website to taken uncertainties, on contain today's and remarks or that statements mitigate the indirect risks projected from Company in the scope, cautions subject and to that statement. to including duration economic uncertainty the COVID-XX impact. to may the are contain direct materially related of forward-looking differ and pandemic

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

Relations package website non-GAAP now in listeners filings. turn contained We of to and in reconciliations over operating FFO, Tammy. measures, supplemental will and such the and as the in information definitions our encourage to core Investor income our review the FFO, also section I financial on net available SEC the call

Tamara Fischer

joining for today. thanks call And our George. everyone Thanks,

family what And of The and their drives the our the outlook all beginning work members about be and members, talk of entire extended or hard of I field team for appreciative prouder positive we couldn't teams. our I'd corporate Before results. more remainder joint our of team, team team. efforts our like the our outstanding with PROs stellar our for of recognize and XXXX, results by dedication and all the are to quarter our NSA our

first of original quarter, to on reach the same that volume NOI and to the is results. top range. year to with an pace We're store our Now half growth guidance moving double-digit delivering in acquisition on off to exceptional start the

half the pointing challenging changing appear And trajectory of some the presents challenging. signals see I are make right term. comps, back current still and don't While direction. in the our the reach those All comps in somewhat occupancy year less year-over-year near that

to continue sector, strength the the the our diversification of and structure. from We our PRO differentiated benefit resilience self-storage of portfolio the of

deals On is acquisition of been very this the the not busy we've coming year market front, and flowing. to pace

first quarter, During invested in million we the properties. $XXX XX

or XX closed under about properties And $XXX close at so we've this contract to far valued have million. quarter,

meaningful self-storage to see portfolios. the driving to continue of a seeking amount We competition is position expand or in especially compression, on and rate for cap transactions larger establish capital

sixes. us, either in the our market rate. stabilized The though, pipeline, quarter to first we quarter mid about from on in in this five, at tend buy high our closed deal for the where two or the of average Fortunately cap off acquisitions year were our in above second thirds deals was slightly so Captive or far market the cap rate

quarter SecurCare core healthy growth, share same This per volume, the FFO XXXX. to compared was the acquisition growth in quarter XX% and by strong April store combination first last Our internalization increased of a first of of the driven year. in

seeing are our in market self-storage, even In as PRO clearly already it's us results our pure of continued momentum the engaged A time confidence level. benefits expectations results structure raise continued quarter, fundamentals summary, FFO We’ll store strengthen give stellar great first While and color quarter phase and attests to the our remain NOI ground. and the our from of to secondary to core what and sector. the a average, our be Dave to in to very our own we're the active exposure. turn surpassed to I'll a remarkable we provide able the a the second call and deliver consolidation really having over banner is current share which whole same the meaningfully. above year, sector guidance again results on per self-storage to now and as Dave? once into the

David Cramer

Thanks, Tammy.

basing As year. which you end occupancy seasonal to month kicked-off still with April. seen leasing We are the increased positive normal quarter spring having gains have know, has ended each both momentum Despite rates, experiencing which the with occupancy, XX.X%, of XX% the already and season, quarter such the this improvement peak we we entered first of occupancy first strong year-over-year industry trends. continued high with record of at a

going we the due were to quarter, is middle be comparison [ph] of during overall related XXXX. second the to As move elevated, shutdown pandemic that into the levels activity of rental the the

believe to calls, have any of demand by factors, we we're couple we As on past discussed currently return in will believe normal demand, a and the backs, [indiscernible] When see is year. not we at seasonal occupancy of trends of continue. we'll consumer our end our which customer for broad number seeing a decline storage driven do the

X% reiterate demand mid levels teens believe optimize our and in first the that revenues above not [ph] we rates strong continuing, remain factors accelerated that quarter, Street we our almost historical throughout increased the XXXX. With to do year-over-year want total and managed have in April. We will occupancy occupancy. to to the

revenue monitor optimize of A we all most As did an of have don't opportunity markets. California areas California during all exposure restrictions management quarter, few see across in in to we the our lift restrictions significant strategies. provided pricing those communities, restrictions in first which remaining its to continue our we additional

what new we've communicated reducing completions year-over-year, the abandoned similar calls, forward in to on projects outlook to trending increase remain pipeline. supply. previous of an while The couple our Turning down are is

healthy storage see in construction will a term. our the fundamentals the in to that yet markets. that development today of in activity spike At any we're don't have shift near we experiencing in point, new meaningful think We this a result of

continue robust the the over activity. sheet supply West to demand We certain in I'll Dallas, from impact markets. Phoenix, mitigating on will balance discuss face to in Atlanta turn to Brandon call new Florida. in and results now financial headwinds the is markets Currently, Portland, supply sub these and negative

Brandon Togashi

Yesterday Thank core we afternoon, for share the an you, FFO increase over prior XX% per XXXX, Dave. represents reported quarter which of first year period. $X.XX of the

only by due hours, These favorable expense grew store to costs increase largely quarter, due ongoing storms. declined prior focus same quarter prior points controls expenses. property year-over-year, we've were basis Same which store to X.X% marketing due which reduced an winter in store from on XXXX. X.X% occupancy an XXX driven NOI period, during from us customer basis point declined from in year, the over well the First that reduce easier by to R&M with in in XX first X.X% quarter spend, the to partially costs and comp XXXX. was control, part X%, recent Personnel growth, taxes as store as to compared year. property allowed cost X.X% increased increase year Same elevated revenue as offset of an operating prior compared muted XX.X% specifically discussed strong OpEx the snow removal quarters, by a averaged XX.X% growth to demand

Now, moving on guidance. the

elimination in we of introduced momentum a in restrictions that nearly The us as we affected these first is also since continued than is better was quarter expected, benefit in days February. few May. first April all of previously The guidance the

to range full all increasing this year XXXX comps half. NOI to follows. for second into X.X% $X.XX X.X%, growth revenue consideration, of as prior of X% to become XX% over more we're X%. to same $X.XX OpEx per year and Taking at course a the of to Of of growth challenging Core FFO growth in increases X.X% X.X% or growth midpoint, the store guidance of share

to end also by assumed to new of million. the We million $XXX million low $XXX increased range a acquisitions of $XXX

Now, But limitations traffic same give only growth comp, QX. and Typically nearly it's of course grows XXX QX. In we given the quarter. quarter deliver one we various slowdown the quarter, prior the basis that and QX we business guidance practices. occupancy points the second in revenue stronger next With mutual year, seasonality. because last customer very as our in that year due the remind growth same comp in was could store didn't have the ended that although of normal to we revenue XXXX, negative happen over want had store we store in the and realistic, same I in on in second double-digit the everyone quarter, don't to revenue sequentially for

expense of challenging from growth from mind, our I store Additionally, assumes that and of rest same the levels. also year. guidance very bottom a which point NOI same benefited our QX year I'll likelihood deceleration year range expense realized low. that factors, low is a have But the keep negative we assumes store more in guidance the NOI that range QX for full full of comps confluence out the of end

we X to $XX we transacted portion turning of net that Now the the March, equity million. balance settled end of issuing forward of At offerings year, the remaining our for proceeds sheet. million last shares

average to issue net X.X program a private shares we notes, million entered of average with this cost proceeds X.XX%. $XXX April. and X an of maturity agreement nearly ATM for issue and million $XX of in our weighted a to Earlier March utilized into also of We years, week, placement million weighted

Our end to a at $X of balance the plenty net sheet the is first capacity with X.X revolver only XXXX, of on million of quarter. EBITDA ratio and through maturing positioned, well the debt of times debt

was revise again recent low advantage of to the BBB that Rating capital, management credit allows Bond sheet we're with the sheet and they our opportunistically positive us today. access outlook of to the sources to balance recognized of joining We're which issuer seeing. to flat, by stable. for Kroll their take rating strong committed a Thanks maintaining deal call leverage Agency from multiple balance conservative Our at in affirmation while flow

now Let's to take questions. it your turn operator back to Operator? the

Operator

Thank you.

[Operator proceed entering Capital from not Sanabria with Instructions] Juan our with question. Please your BMO question session. will be We first comes Our question-and-answer Markets.

Juan Sanabria

morning. the good and Hi. time Thanks for

acquisitions versus I on rate comments you started out, a Xs of cap cap market the kind stabilized, stabilized you kind tell what But you curious future think yields commented based or And cap reset. be going Just expect to mid-Xs high on rates the the on competitive you of mix just rate for of is how broadly, us the were. today? where if could more

Tamara Fischer

thanks we would question, say that - as one thing, its know, So you good for the question. I

our strategy you As stabilized properties. core acquisition know, of is the

points cap that so you you And mid say might And acquire to Xs. stabilized or that the the XX% considered Oh, basis in of up me [ph] assets is assets rate the of the the we're out are fill follow fill and in are to the going up. The to captive rates are the lower. than up, XX coming assets rates Xs. on extent market, seeing guess we I up that. high Up cap assets in less our fill to low extent pipeline are let to know, off mid XX cap in

Your chasing transactions. that second tell do we There rates I'll rate cap are shortage significant compression. going? question we cap was capital is see no seeing you where of

focused rates acquiring that that compress. will the no want term. But I cap very are remain over we long We will on we to think And to assets there's disciplined. continue yet hold question

Juan Sanabria

And color. about personnel Curious forward. expense on for the marketing costs going on should how think that Thanks and we side. then just

a impact et about as years trend runway of think how group there that long of below talked the Some others, have the And have of kind stay are the on pressures we technology how and personnel? couple you of were But much marketing reducing you about do costs competitors do of cost for hours. some with seeing cetera? your from

Brandon Togashi

Hey, Yeah. Brandon. It’s Juan.

start think Let provide I can some me color. and Dave

the the of way. the last in different what the quarter talked business always certainly year about was first a caused terms finding you last to some few In efficiencies, look in of costs, personnel about saw at know, quarters us we

So for example. certainly compelling. hours, also optimizing It's store

QX the personnel. trailing eight So look comp, quarters schedule for supplemental, and at see through five tougher QX if our is a in you you

in to money, expect the we to year. elevated Marketing was likes spend year-over-year, I certainly definitely need to we continue that fundamentals that with May. think so the I of But So had to for the see there as positive We the let we didn't a that, far in. so spend pause just be everything just didn't to and some we money. saw benefit that there's balance in do and do the And Dave board. have April chime across I'll QX.

David Cramer

Brandon. would I Yeah, agree,

nice AI really customer implemented how some making responding spend. are tools also we their they're at, enhancements teams we're on acquisition how and with deploying you think our really some learning as the I and tools, the have look we competitor and know, customer of process, acquisition marketing sets the

So But one, we customer getting key better at us I acquisition marketing costs futuristically, we think demand, down do great right how dollars. allows have which our deploy are we now.

Brandon Togashi

And high marketing related really taxes more add end we XX guidance property in I just lower driven right the basis one due in benefit year. time was at and were last also taxes, coming one property now, quarter, higher in on thing to year-over-year then some OpEx X.X%. is point to what and even QX that's QX first it's That drop that due so the the to had then wanted seeing the of our in we're the

to that of full to And so expect still be rate for X.X% to ‘XX. the we closer X.X% run year

Juan Sanabria

very you much. Thank

Brandon Togashi

you. Thank

Operator

Thank you.

comes your from with One Capital with question. Neil proceed question Securities. next Malkin Please Our

Neil Malkin

morning. guess revenue through with Hey, same the the growth wasn't market everyone, this double-digit good happy year. half I of store first

Brandon Togashi

Right.

Neil Malkin

are larger know, you new But of is, for kind know, secondary/suburban you in you so cities your think a Maybe by Yeah, guys documented? that. now uptick one, the least volume kind You it's bigger leasing you into state? maybe little first that I the know, to coastal in out of a out in see assess from you or seeing picture, states particular, harder migration assets? of or at notable your coast well just know,

Brandon Togashi

strong, outward to certainly know, be look as creating the We've areas, Arizona’s, into, the you the really question. storage. Texas, seen you be Nevada, housing markets very Florida's, seen migration very Sunbelt good that even strong, rental - demand certainly for a that That's we've at markets transition, Alabama, to certainly

continue areas. COVID still of of some those the markets with, - and returned all had responded pleased are our I And one the haven't you have have cycled think performing across gym, is little solved, a overhang but type with our of things know, returned to stronger though, we've all them of well, things. to success those have in to those You markets still they're bit we're that's garage office, we you the on going effect back yet, communities know, portfolio,

want strong. markets a some of out that's our there. XXXX, at if still to compared very So up though look had But great tertiary standing it, even still markets, to you other are they the

think there's that I factors about, a transition, you them. lot of we're talking So that of and mentioned is one

Neil Malkin

then Okay, great. maybe And on management. revenue

street crazy are insight, congrats. the mean, given can for you're some So revenue really things where Clearly are. maybe of that's is just you street of you're your of just And And that rates, know certainly higher. those restrictions occupancy through your rates, seeing means upside you're you potentially plans is revenue portfolio, increases, customer of lifted. kind from look occupancy, for part you thinking to existing anyone, that? give demand, of you But with kind couple seeing that I the tick maybe especially if Can walk high that? state months, Dave, being XX%, where next what management? that's how there's the your going about unprecedented how at guidance are if very to some

Brandon Togashi

level that, it's spending very, are We're all sector, point. including Yeah, because for high a lot And of very on the they it's really – a a is time ourselves. good question. good of this occupancy

of seen the quarter. the looking know, and our our so growth very, locations. ourselves all rate ways assert street And markets very we can, we're at you first We've through in of strong all all

was X% had know, the you end somewhere in - the by rate in street growth XX% know, You April. of we almost January. We around

improvements customer seeing we're of location. double still And So push push all in this we implement digits the size, assertive. [ph] with very there. be by in high we're to in that that smart, assert those growth a just we but us to us be by know, That occupancy, it really at strategies. have And to some obviously, these allows new leads as street team's unit type, going and rate great as to to low hard job strong place digits high And you we're the good point, changes. the - changes single tools assessing and place renting can by using done assert and

Neil Malkin

Okay. And then up just, that. I guess, to maybe a follow

XQ now, summer, COVID, Specifically, they move-out, move-out came be you have get think sort historic on maybe of very top move-out you XQ then it's which that are that Is - widen XQ, rates, this know, - Do out strong market essentially during of will that spread. a spread and in or typically you're move-in, didn't in moving you that, the bump seasonal because a with the that different levels. move-in will XQ, of might possibility? street to,

Brandon Togashi

I rent things certainly leasing the this quarter peak with think of one us. like really it of it, mentioned historical first was is. roll of piece as the you Yes. for I kind down more we're mean, entering season a the

looked you averaged flipped X%. April, In rent in to a down roll season. which a would about quarter normally rate, that positive our at If of first strongest we leasing the X.X% be

is same even volumes, against what be compare know We're setting stores. muted was, hard look are - as are still through what you strong, very the so we're velocities we summer, velocities with XXXX seeing still still our the even happy work is set move-outs. if are And move-out to good. of XXXX to beyond going muted, the we remaining because right second know, quarter way very, you Rental our that if really velocities we're now as

strong of those think occupancy you're And factors, down, so things a rates, level, roll be all lot this mentioning. will I leasing very for season

Neil Malkin

Great quarter. all Okay, very much. thank you

Brandon Togashi

Thank you.

Tamara Fischer

you. Thank

Operator

Thank you.

Please with comes your question. with question Smedes Citigroup. proceed Rose next from Our

Smedes Rose

wondering, factors? something to Hi, about your developers though suppress industry thanks. to I access I you forward? back where what of just the Is kind do just capital of banks? is some - uptick for am of opening gating development, meaningful that sort in construction of not well. key going wanted new kind Or necessarily get you it your of even to the a And ability so talked you else the there from seeing just remarks, doing think is

Tamara Fischer

Hey, Smedes. you. the question. And nice to with for talk Thanks

now probably is are do. same and and we I you right the hearing some of on think that rely data pipeline, the that what we what's in what so about, seeing we're guys

We and have maybe pros I in process, same our on we is easy were based delayed project seeing decline the it's interest continued assets. not that will they'll we're because mean I advantage, pipeline seeing a doesn't as have time of now, through It little XXXX, seeing to down deliveries compared well. coming not now. XXXX. I slight - to right projects we're had in will believe asset self-storage in what they're there are we positive a of right from I'm on a - last think that seeing. - the same get the - And yet. the that XXXX. what might pencil they're think now, classes that or continue developing we're ground will it in we is up deliveries to we bit bit what our be guess be because attractive, bit the the not up their own and XXXX, so a in It's primarily due just a Right from and get is XXXX, performing way what said to be it hearing But in view little little It's be not we to XXXX, Clearly, that the whether did. project, a in said won't. building it to through - But cost are year. the length or that will market the markets. delays

Smedes Rose

tax folks outside know, potential sell to try you in at willingness was wondering, changes to I to you any based on of opportunities, your you in opportunities. And where the trickling seeing so of rates? exchange, at Okay. Are sort the the I'm Captive You and just come elimination mean, then market all other pipeline, look change of up not you've issue capital you've seen know, increasing. XXXX seen I with far is through sure really an that just for of gains what as or it's step motivated… rates

Tamara Fischer

think pipeline, in there's is it. said and happening that Having that discussion the of of say fact, hearing on a it I Washington the that that bigger tax current around And We’re lot today. what's take getting top in and D.C. changes what the it. is flow my with wouldn't I something is we're deal by that, about does faster, seeing driven have in law. funnel do potential to the in

Smedes Rose

you very much. Okay. All right. Thank

Brandon Togashi

Smedes.\ Thanks,

Operator

you. Thank

ISI. next Our question. Samir your with from comes question proceed Khanal Please with Evercore

Samir Khanal

raised you again Good if I acquisitions, of at upside, control guidance when if know guess you've would it to guidance, upside mean, I better today, afternoon, a I the from? look look some just better that. left I come you point, Brandon, where were forward everyone. it you Is you've think do to on trying meaning clarity at months six your that is that where room know, get the expenses, sort to at

Brandon Togashi

is area Dave think top good the high mean, think Samir. I record That's one occupancies, question, where line, I Yeah. said. I a at we're

with kind just expect. last we held occupancy territory activity and progressed of leasing pace about when trends QX. So How of see start it's and saw would the somewhat portfolio. the tell us we the of start into the know, normal for slope certainly progressed, we're the for seeing with occupancy of to curve occupancy a And now high on QX that came, half year, go, move-outs? back out right, we down trends, as we new never lot You the the projecting you you’d and really and to delayed can this occupancy year in I'll trepidation we typical

dramatic return seasonal to normal with comfortable a expect So We patterns. move-out do not that. we with feel more

historically, would downside, in return to mass. to now. debt you know, so very you X.X%. and debt, we've move-outs Also, that downside, to of get certainly have revenue, X.X% be it'd surprise, right on for have - it if the dramatic portfolio a the mean, talked to our we're seeing we're to I X% be closer very And to low bad bad we

you is our money all ranges But minds, the lot that we've in there that's we to far. your expectation on so some April And economic occupancy. too. we played a realized, know, an - think that on as back the in system, those There's been Dave I to return the that's your the see continued - maybe into further pumped upside, of seeing, for will grew broader factors, a levels. And hold we're so mentioned, question, it's occupancy into

continue one. biggest to that. that's the see And probably So

at contribute good meaningfully don't I on think we're For I that to a the number. OpEx, upside. expect

Samir Khanal

of Yeah. or thanks this where And taking a from, the demand I for second coming that. demand No, right. back. guess sort I is new mean, question step my is just

surveys I As you there's you biggest talk to as storage the customers, to what's I'm now? kind right reason been mean, do. your sure of

Brandon Togashi

more business states, perspective is lot around in a you on. strong out going a the you that out seen out now. we've of of, up in of cities, of moving is what's lot very type a know, standing and of fueling in of distributors small The right and from know, really lot and markets, recently and markets, what largely think is economy, I rental houses, there's just country, this transition, of apartments, transition in a out around

versus residential doing consumer normal commercial Our levels. paying good. are tenants in And ratio commercial those and well is of

So adds that bit just COVID the it like this then lay demand and little overall picture. a of seems factors to all overhang, on you

Samir Khanal

Thanks.

Brandon Togashi

you. Thank bet. You

David Cramer

Samir. Thanks,

Operator

you. Thank

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

Todd Thomas

thanks. Hi,

First questions, acquisitions. back to circling

on which the wondering, And helpful. you're more considering past? the not the the provided yields demand second was than quarter portfolio, in and initial experiencing I'm You the that in quarter or whether up just first today have opportunities you you're lease with investments,

Tamara Fischer

question, Todd. Good

the in considered acquired that would more up. months I assets. definitely XX% mentioned lease we're the up little as last - lease in are assets to I And we've less are be six of earlier, We than think a open assets

and drive what to So I our opportunities coming think are we like from the to seeing, us market opportunity so for an and external in many there more growth. it's perspective cases, we're

Todd Thomas

Okay. updated seeing environment activity that thoughts at the new all onto pick on you share platform? And front? a in then PRO can up Are you the bringing current about

Tamara Fischer

I to decision wouldn't have that to them we family. operators picking been join is us a you of say into talking this with who, it's big know, continue NSA, big And a bring operator we've happen up, it's handful a our activity conversations to know, decision you quickly. doesn't private as for to an

it year, So will. I of it it clearly - just time. definitely say but out. and rule takes can't wouldn't strategy. happen will I focused it We're a part that will remain on It's this like - It's our so. I'd we to see something

Todd Thomas

an the the PRO additional Okay. outlook near about in What term? internalisation for

Tamara Fischer

the having any a don't think preliminary another I of do said on, the We we on internalisation that know have until line end that, to PRO year. we closer be of right now. wouldn't sight Having early formally discussions would

that how of and shows successful of it can success think it SecurCare and leadership the the I can internalization shows work be. how

that a right leads now. indication the any So for of I that move. have considering it I group. confidence that as have the way say, rest don't the anyone - But we of was is good And kind

Todd Thomas

quarter for full throughout Dave, you'd this late you year-over-year fourth even higher that through comments Or XXXX. that's occupancy And in those suggests last year? expect remain about that, a Okay, the helpful. you the Was on the know, just think made basis, in higher year? were seeing I comments, year, the December to of question, occupancy

David Cramer

off in we year, trail as may sitting normal reasons. push When and we number But know, management. of do XXXX, We Yeah. peak towards trends. summer levels. of you that based know, you then we've at than summer ends where end by of know we're previous we the currently closed push historically think probably a of where also years. seasonal the revenue higher believe where from look back today, and out the this the of down towards to some And working do you occupancy if see you throughout we're It that just may historical - XX% historic half year, see, finished a hard at you up. more what be you and really level, to will the I we was the really – did that, know, rest don't year, One, for and on look upon it’s rest will

Todd Thomas

Right.

All Make Thank great. right, Okay. sense. you.

Operator

Thank you. Stanley. your Ronald with with next Please Instructions] from Our Kamdem comes [Operator question question. proceed Morgan

Ronald Kamdem

congrats a quarter. great Hey, on

Just a ones couple me. for quick of

possible peak get Just and going typically that? asking it? that the be back possible year? year, leasing and as a could form that of and about there where we seasonality season to was thinking XXXX different unique no really the guys sort you're some seasonality. it that way. coming maybe or a it is back XXXX, into normal Is Clearly, But acceleration this are of to was question you How

Brandon Togashi

may seasonality pretty as say trends, good have early were pretty going to know, normal well. you have some few April, you on, we know, first more certainly days of would I suggested that looked

I it, too. we're you now, full right look as think pretty at

how what it feels we the starting normal with a at and looking your velocities, left like available to spring us, inventory start to you to have spring we're do you like so in are more more rent. velocities, a us. units But And many happy to have you do

thinking it's year yeah, of I say right for us. would a And more time now normal seasonal so of we're

Ronald Kamdem

color remind are E-rental you more through question of and sort of post-COVID. how and of would platform, rest percentage second there day, of sort us of switching Got little relative operations what in just you age, demographic, it. sort My of coming portfolio average any are and of, Could That any to color was makes be to terms know, sort customers customers those an a sense. color, E-rentals the helpful? just behaving in the

Brandon Togashi

question. Yeah. Great

any in continue to working We're as rental, really about opportunity where The that this out fully journey, year. been and know, nothing's in an length stuff's Our stays of demographics process of the different Obviously, most for time, us in at increase that I at far like a in unique nothing settled us you more. for of really and platform, people the or point see the this working from only drawing. people this think high We'd out who not that's XXs, out be is our standing a help user consumer tool on or, another rent type have in we're you want us, is on through to complete being look online at. the went it's tools. to tool online, you the point if the really way, however standing we're the know, using to different think as just - we're as that just the difference and significant, as platforms. technology early us It for process, build about out yet time. maximise to for us on. We just use to another a seeing journey we behaviors But you at

Ronald Kamdem

you're level, so my it. it curious thinking it be deals usually equity about capital, when the then acquisitions. with really just it I capital, got there or it's these the but and imagine you're - sort you upside to so is minigun thinking of competitive on not pipeline, and the guys back forth. so are and Captive is Right. it for thinking about - was on you is to usually the going because What's the think be front really at is, may question question you're acquisition how touched is [ph] it I final out the acquisition about availability forth. circling volumes, when The currency, And to of to,

Tamara Fischer

You value to I is it. we And know, every the This And XX us. be XX, has that the on prices is, sure for time and be we're basis making the assets some are long want deal like, go - upside we're us, any matter rates this you we truth have so XX, got then cap acquiring rate markets you climate that the can't to points our out term to this. than see down XX the - keeping another, cap at lower lower. is know, a we of for haul, Oh!, cap think and comes crazy. know, points, go that long basis and in XX, it's this next XX, where the And, eye and

not capital So as much competitive as current frankly. environment,

Ronald Kamdem

Congrats Got helpful. a on quarter. It’s great it.

Tamara Fischer

you. Thank

Brandon Togashi

Thank you.

Operator

Thank you.

question. with Ki comes your question from with Bin next Kim Please Truist. proceed Our

Ki Bin Kim

you Atlanta, very Portland look market, for or I pretty self-storage in question like follow-up is earlier. Samir’s the demand wanted a on at Vegas, or drivers different to When your incremental versus similar? just it

David Cramer

know, similarities. A those know, coming of you demographics our where LinkedIn, radius pretty from, types are mean, across is of customer lot customers, Time, [ph] you Drive markets. similar most mile I of customers

Ki Bin Kim

when from And longer demand have traditionally, transmission from do of that some stay pretty of that the housing demand kind incremental or they related, of are that related segment, mentioned a is stem is you length demand, a or coming shorter users similar?

David Cramer

you're they set, You – as length the they own at long waiting how hot complete, have at transitions, is. on they're know, depends housing housing their of for I as it house look I think if stay, how looking you may to market their guess,

between answer the that you on now, does Personally just apartment how we at look normal see move market housing you [ph] that markets of And I find to house long either much, in actually that. to housing similar really the a would they the hot take months to is now. stay apartment months? for being we probably in can know, you know, the that nine think or change know, market, you within going even house six don't housing I into? a how these that they that built right but, I as be to what and If housing subset length rentals, to our wait to really answer of now know they in there's to of finished, I significant going haven't is, you it some in know, bought. are we're something hot seeing, so, - what at right be Phoenix Are be seen being you apartment pretty difference,

more we're need it. storage people So because of seeing

Ki Bin Kim

have correctly, And - limit deals. on return preferred X% a goes Does that some only that type on but there's SP value. on pursuing that have you equity if discourages preferred remember you lease because can't, return have from you to flow units way so that might cash not not I that's might pursue it. up you the the you want necessarily out? to deals this to or I that to back, contributed in that Got X% it can't believe necessarily give initial pay of assets

Tamara Fischer

you tell it's I'll know, You interesting. that,

But very now are say, I you disciplined out our restricted XX% Our underwrite transactions. is, focused underwriting strategy. acquisition also PROs would I and guess, here we their absolutely, worth stores. and not in managed sourcing very owned, we're pointing it's know, probably corporate in are

owned is I well, mean, our these NSA, but days. pie the So all part by bigger a they're of of course, XXX% corporate team much

operate on rates, a with to us. a to the crosses they out on corporate of for we deal, and one markets event cap team. If that operate go priced opportunity balance over let's the pass with our get in reason because where say that sheet forward a PRO transaction start portfolio So takes we're at, let's PROs for just have say the we or a another, our looking

getting don't really we of at we're We that's out it. feel boxed So ever. a look deal, how sort like

feel part. we that about pretty good So

Ki Bin Kim

to Okay. increased SP just from ratio for X.XX. comment to last question, And the X.XX conversion

that? if curious – what Just caused

Tamara Fischer

related performance. That’s our directly to

you know XXX% to QX it's related So performance.

Ki Bin Kim

NOI, you. No Thank okay. it. Got

Brandon Togashi

you, Ki Bin. Thank

Operator

time. There like back are call turn to Fischer to Thank at you. Tamara for this further no comments. questions I'd the closing

Tamara Fischer

to our the our to first optimistic term results NSA. PRO forward again Thanks. with unique meeting deliver We structure look results. continue our allow person like again near that and your virtually in you about many these either Bye-bye. I'd to We're fact interest in We and year. of for quarter sector hopefully you to remain outstanding us XXXX. thank very pleased with later or this

Operator

this and conference. concludes today's Ladies gentlemen, web

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

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