NSA - Earnings call transcript Q2 2021 | National Storage Affiliates Trust

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Operator

Greetings, and welcome to the National Storage Affiliates Second 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 second 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 our

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

On distributed because as those website the after investor forward-looking call may our Company Company and be obligation questions. today's in differ we the update supplemental cautions at our this package and to addition date management's to estimates your X, statements subject yesterday, conditions materially may on from August which or In of with section any statements to The statement. results, assumes changing our other on or relations in nationalstorageaffiliates.com. of of press release uncertainties the remarks conference to market circumstances no prepared that The XXXX. call. furnished additional detail revise are management's results and that found risks forward-looking represent answers forward-looking contain projected actual They today, any

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

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

Tamara Fischer

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

growth The to XX.X%, the to results. their and ago. such and thank us including thank for NSA us a XXXX we second ongoing growth and in effort NOI revised also the with of to which year successful during And provided I'd per first continue And like really second acknowledge A that into I'd of announced our rate and dedication our teams conjunction equity growth of third support to and guidance. in store kicked environment, a of same transactional allowed like team, we're over trends results street a just record into to quarter. entire few QX we recent for including our diving with We're very assets numbers pros upsize offering. strong which are weeks our raise results consistent yesterday, the allowed core and high market. quarter gear exceptional our complete active to deliver at to in positive these Before come off, equity unprecedented their quarter top shareholders led share healthy occupancy, volume dynamic. into FFO seeing the full XX% is it high fundamentals flash quarter. levels

expect market acquisition year, of to the coming remain we the been second deals this elevated busy and to front, very in the On we've pace half.

to the X% X% cap closed range, is portfolio element to self Cap vary was sources deal it these storage quarter, weighted a transactions in see of a rate continues position the in under to up on plus million and the about there's contract pipeline. to meaningful under drive of or $XXX continue seeking compression, And amount involved. from we competition especially captive mid-to-high the invested half transactions whether lease establish average or on rate properties, portfolios. and at cap and During valued larger we've deals cap to off-market if capital expand for X premium But or all ranged nearly have in on some XX million. $XXX the properties of based our second we contract million. on $XXX XX first properties our year-to-date, or from And rates XXX at valued location closed bringing volume marketed

deals closed rates year or our of to above have slightly our been cap tend pipeline, market. though, under two-thirds buy from where at Fortunately, off-market contract we captive this about

and results Our the including on increased without probably store great expectations in revised the XX% for guidance summary, same provide and for to core NOI a growth self of exceptional FFO in in year-over-year second guidance acquisition time $X it's share billion. storage. increase XX%. our key remainder us outlook quarter will his in and Brandon of volume on a of be metrics, it more In confidence year, over to to color goes a Growth comments. give per saying,

to results to commitment pro able structure, secondary to take we're tertiary differentiated that I'll turn Dave to now well our of color ground. benefit robust seeing over our transaction the continue from the year. advantage to we're call We what volume drive on on and leverage as were seeing which to and provide markets, the as Dave? this

David Cramer

I've street start year, key self Thanks, all levels never quite Occupancy strong. July years fundamentals in my almost reach our highs, metrics. implement rates, lot plus Tammy. seen new XX%. Since increases continue improvement of which ended the business, in significant with in the of the seen to we've this in a XX storage In to about

year. the previous Over

assertive We place increases to in continue very double-digits. single-to-low by tenants averaging high rent to which be are

all that distorted. we to XXXX XXXX Now know comparisons are

at additional only some our So point about I year want lowest Last declined rates to the color. X%. provide street

apply quarter since year XX% growth to us current months seeing rate July of on remain of July. picture. It's will at clearer occupancy But ended the it further year. relative at XX% elevated increased though XX.X% We record we're the end appears which give with next to last will occupancy XX.X%, strength a current end would the XXXX. a few of street the of increase about For the the second

basis want back by we of assumes in XXX sustainability total half of optimize basis guidance of do year. that seasonal to not points remain a Our the the manage We We demand. strength do points revenues reiterate the occupancy. to and impressed XXX decline consumer and to

job this for by is demand changes, transition, adding very in lifestyle a calls, couple a home a office. of home transition, consumer strong driven housing includes discussed in storage change we've gym, adding As that environment our past current

these of believe All we which continue. will

in meaningful see in supply, any a new activity markets. development to we've shift our to yet of Turning

hearing more developers how development remain have construction at are. are to costs meaningfully and look strong the do entitlement slow up. fundamentals and given activity to land and expect we permitting very will risen The looking projects pick for However, cumbersome. process and We

Florida. and and XX% headwinds sub within our XX% in We and expect competitor from supply portfolio approximately And figures the the negative Dallas, face to of mitigating radius, three and as I'll Currently Atlanta from and in a markets demand to XXXX. the sheet approximately Brandon? radius. to five discuss is financial over call continue mile supply These currently down Portland, robust are and in to flat these Phoenix, activity. certain impacts markets. West in slightly mile new turn new of balance results Brandon the year-end now

Brandon Togashi

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

average an basis same by XX.X% by points property occupancy the XX.X% a XXXX. compared quarter NOI store revenue in increase expenses. driven year, increase, over increased a prior operating of Second during Same store with XXX quarter, X.X% XX.X% to combined increase

public core growth that highest as the six this FFO ever revenue well per recorded NOI, While company. as we've same our for year in share as a is during store history

from last years two it's impact growth pandemic. across thus average noise of appropriate the look to think the the I removing at a

levels. Our line revenue.Net hit XX%. the on operating norms. still NOI trends, averages, store a XQ I is but details the remains XX.X% regarding debt Dave last below historical All to fee periods respectively, has those point from same income impressive year, share core two-year and the out it the wanted few recovered over below historical in revenue very top remains growth additional is X.X% growth per average two FFO highlights same

Regarding by challenging cost OpEx, quarter same the accelerated the an on focus to partially due growth year-over-year control. X.X% store ongoing offset comp, second to in

increased personnel year. costs in part we last this the X.X% reduced due levels staffing Specifically, levels hours to experienced normal more store quarter, versus and past year-over-year,

pulled the absolutely increased on X.X% the expenses because second last partially Additionally, back repairs grew that to all and maintenance second due comp, also necessary taxes Property the we in challenging year. had quarter, quarter in marketing X.X%. occupancy strong need experiencing, for X.X%. and down X.X% marketing partially reduced These a that spend. were is increases utilities and we're there were with elevated offset the declined that demand Clearly, by costs

moving to Now on guidance.

strong this year. second half acquisition during and on quarter, fundamentals everything the we're activity will Tammy throughout us the As with earlier, confidence carry far so third quarter, the the in the positive momentum of combined second touched seeing give that

$X.XX or per we highlighted prior XX% at full an strength thus follows. the we're growth Core as prior the increase second year a over now We're share in REIT midpoint While on to previously challenging and increasing as challenging FFO half to growth. the seeing $X.XX given range from increases occupancy guidance comps, year XXXX XX% midpoint. as guidance and

of XX.XX%, goes range as first $X.X to to a growth growth with as revenue that midpoint acquisition of shouldn't store half. XX.XX% strong billion. same the the second to of and of NOI XX% just to Overgrowth the to of half the be year X.X% X.X% XX%.Expected For volume implying $X.X new billion

earnings the guidance Additional outlined assumptions are release. regarding in

active million the we our the ATM on Now of sheet, end rise quarter over the front, were equity. to subsequent capital $XXX in quarter balance to second utilizing turning and

equity we million. upsized course, of private transaction in shoe XX.X of was offering $XXX was also very issue recently million net of $XXX per the the of with We green on million access were exercised completed execution very $XX.XX placement of to share We the approximately follow a of market proceeds notes. for full. and pleased successful the And shares most

from borrowings All proceeds revolver, were in of activity. will to our and raises the fund acquisition our repay these used capital

million of a sheet Our cash the $XXX on through maturities positioned well approximately July. revolver with available hand balance and at end fully no $XXX of million XXXX, is

demonstrates at sheet commitment profile net recent ratio joining these quarter. again the but of the of call leverage for Thanks And EBITDA to maintaining today. X.X a transactions with balance sources end access our strong capital. clearly times Our the to our of multiple second to debt

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

Operator

Instructions] question-and-answer now poll [Operator Ladies and while questions. for have gentlemen, session. we please, will we moment One our

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

Neil Malkin

recently Good Hello, everyone. I your had the believe birth and daughter. quarter. congratulations, you of morning fantastic Brandon,

And great. that's So congrats.

Brandon Togashi

on Neil. Appreciate Thanks, both fronts.

Neil Malkin

Sure.

move you in roll July ins the moved are similarly spread? in street question. people what between or do first Can you quarter? up third and trends that who about up of and rates kind out quarter, what were your that Yes, And for seeing the roll gap you the expect then spreads what So into talk and

Brandon Togashi

is way, call, the into minutes to maybe first comments. the know, Yes, This XX Brandon. Thanks, we I as trouble for starting ahead And by say, just as getting had wanted some of time. Neil. again, the people early

and else apologies difficulties. out On last were on anyone flipping roll call or quarter quarter quarter. So to our new was for such that part you there some the was has if that near positive actually of up. the flat We the that increased for QX talked rates X% year-over-year. decreasing ran spread look into in about customers your through And move only it question. Very third technical here a that moving strong between about early second spread at rates, relative we

Neil Malkin

on Yes, higher just larger portfolios billion dollar very portfolios out talk like fantastic. If low the couple and heard given your as of very, are, of or potentially or portfolios and just just guys, things some market, of couple large brokers about higher split you cost acquisition market, there. what more Please activity. up the a there be I of that. the portfolios, we've deal you about those for progresses comment coming looks maybe talked very assets that process you a can from on Maybe Can month capital? think, to

Tamara Fischer

start Sure, the can question. Neil, thanks in. I'll jump Dave for and

these venture partner joint we'll any to can us, see of together, a thing here I to heard that And hits $X putting think to look if for fit that, I we interested. up look. that is market. a number size the a we've might portfolio comes But a be that that work safe in think it's can't that there is in $X say geographic really the billion thing that on about good billion, are comment to it we like same I sheet, billion terms the one probably I it a with. guess take to said, we'd plus over like are that do extent now, we value it's the we hard markets safe say anything in to portfolios when you every think I up are how the as We could coming. probably in right good that And keenly that market, to -- portfolio for it say balance might probably of we on range

Neil Malkin

Thank Well, Okay, great you. great. that's all for again, me. And quarter.

Brandon Togashi

Neil. Thanks

Operator

Thanks, you.

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

Juan Sanabria

Hi, good morning.

Just about hoping more little calculate the a bit could talk you environment.

mid-to-high in and get a think if for yield the yield I the But transactions kind and is going the just about X number acquisitions you what it's path talked or curious in a going if stabilized that is stabilized to-date. yield, or to the there. of

Brandon Togashi

Juan. This is Brandon.

Tammy that's in. going one to So year referred the a that XX

percent pros. management that So management for a us before paid with NOI of revenue fee our that's structure, the to there's fee is

us, have we're arise. few for but before that we quarters about NOI that talked some cost, past appetite the assets. And should that's recently those having year-one So the investment. stabilized acquiring deals But over in it's historically, total

there is that some non-stabilized that going number, there here in and XX. going there assets in year-one in consider would be to we So that are

Juan Sanabria

Very occupancy. a impressive, items, up kind couple record okay. year-over-year, the the line guys And talk side, cost being you just despite just marketing, were one to hoping on of to

we've kind think just some leverage or that be of from however your or would So the forward. to now personnel, going second them able you or declines peers, rent And them. about name we how to some on your should of programs, large want rental call on curious seen

that you and wage all line guys curious the pressure labor? Just and finding seeing difficulty how are amidst

Brandon Togashi

Brandon its again. Juan, sure. Yes,

X%. I costs, down, were Soon quarter, the costs same also just store the year-over-year first X%. were year-over-year, down number over for second down quarter, that And they in marketing believe was about

store, marketing are months, So costs year-to-date, same down. six

that's I strong you'd think the And customer line what in with demand. strong so more expect, occupancy the maybe given

comment, not I money. to if a I the the certainly marketing the don't our money, we On personnel, that's cut last going need as spend the spend cut experiencing hours costs. we're think, of to I lot bit a last the with made call, we're the And year. we quite case things same and think staffing peers,

from for year. from our point that year-over-year a second up That's But So would really of against there's for out in quarter same dollar the that down tough comp, QX sequentially. was X.X%. actual spend I QX increase store last us, actually comp a

they you So, I how pay other really across hazard the to when with might regard when and have their done you're have companies, they or to serving slashed think just hours staffing. consider anything their they manage

were some I here certainly lot So I then one the forward, that's say And lot a lower the I just lessons just heads efficiencies. think over But Dave been efficiencies have at could learned. of year, been we're We've last speaking proven potential going pause there's a realized we in up. exploring. we hours of than stores And would same pre-pandemic. can we we should probably and run let the on other chime of

David Cramer

I look as our we're going incentive you with well, think forward numbers what have putting I would up program. at an add payrolls, great employees one, as

you so seeing costs, revenue we off have charts the we're having the it, up. piece of bonus when is those have like backing one some are that And personnel but comp of also you're a program that numbers

proud the of proud we're pay we're programs. to so obviously the incentive And And results.

a It's to very going look for hire. we tough forward it's competitive personnel. forward, very As environment

short think payment overall, ways stores impact as unique business. at our a we're so position environment, and online little or we looking hours store And leaner little And tough well about overall. online I this doesn't our can hiring look run always, staffed in systems, headcount at a efficiently the rental, it our really more very maybe our as our we part run that business can

using, members team doing flexing we're at. probably than we're to So but we're historically bit around, little we're overtime more we're using the making a environment used

through the online rentals mid-to-high platform. leasing so across leasing online XX%, online our portfolio And on about came on programs XX% XXs, our

our on more work call that which for platform, And, leads lot like personnel. the that see to store a runway a us there's I'd of those to lot to increase, a efficiencies improve. to and I the journey efficiencies lot around lessons brand continue improving learned. We here, And think of of center, numbers around customer has obviously

Brandon Togashi

again. last Juan thing, then Brandon And

So store, and for the costs X%. payroll up six months related same were

expect total so a I to rate that it be that end X.X%. half growth do X.X% year to for that gave probably we we the And close a higher little of high the growth range the put back full OpEx rate. would of in to us growth

Juan Sanabria

Thanks very much. Great color.

Brandon Togashi

Juan. you Thank Yes.

Tamara Fischer

Thank you.

Operator

you. Thank

your comes question with next question. proceed Golladay Baird. with from Please Our Wes

Wes Golladay

what the will think like rate out back biggest items at maybe year, moving storage Hi, part purely it their Is we such school looked that? to items push everyone. half going back to the the as students for or you decision is occupancy? stuff When taking of do be the of other

David Cramer

That's a great question.

we we occupancy. significant little We some first think activity velocities. thought a a saw I did had college in student April. We in of gain pretty good rental have all,

as so towards year. the basis at in And we we half the of basis guided the points the XXX back of year, XXX point occupancy looked end by decline

that pattern Some was around of what transition. more seasonal college felt students little bit that's little we summer of a a seasonal,

positive strong. that we'll various sort some pushing we September, that you so rates, the August, velocities of super are towards start think mentioned, And applying now, rental start as of is really the I see movement, and cause some right when that you could you increases some think

the peak here, here, quickly. but little of right start in. this And, a bit deteriorate that XX% in the going not the they're to that we're from anywhere at to don't point of should a half in so the we if that's it's occupancy season, at lot fundamentals, should that to the one almost And out, there's of as we're sitting just anything XX%, folks want moving future, of back off, the still time, be with those moving fundamentals year, strength a lot wall, pleased of it reasons. see you back knock really very We're coming, call going big because

Wes Golladay

guess, you XX like move, five mentioned, you you number we within XX% go then, the And your to think about in as Great. apply next of miles, I do will this had months? has up portfolio lower

David Cramer

XXXX. deliveries, I the the slowed into stuff over pressures slowing. few deliveries calls, new that talking and the the we've could, since XXXXs are of certainly been think with past it pandemic declining XXXX. the And are about XXXX, And

a are a hard to of interest metal right And wood buy so to planning those now, people, product, our a in it's right It's delivering done now. now. There’s hard of lot right certainly of it's now. lot to product lot buy our hard liking and but get

So think I declined XX months. number see a next bit you little in the that might

Tamara Fischer

focused Yes, developers. are I only that markets tertiary secondary think attractive thing that I'd to less the the is were to add Dave, and new

Now, just as that may much the returns different. been isn't historically the but not there. always high that The haven't be true, aren't and rents risk

we've new the protected historically, cycle. somewhat been the least supply So from

Wes Golladay

Got it.

mentioned to tax I you unprecedented ahead with think now? assets process potential eager of seeing coming on changes? talk your Can conversations sell about remarks, going or potential amounts unprecedented transact they yet you of the how -- Are is prepared in right maybe market. to

Tamara Fischer

potential operators. along to with think will to say moving don't much operators regional changes tax potential participating faster. seem law our with to of be is where I we who a good But I process case have add in would pros, this conversations that our the be continue group private

the of basically the and a But operators decision. it's I continue and a assets part all a or in to grow. your that very and big of making decision. selling stay think think is big I business into team decision NSA becoming are sell And to

changing not it's said discussions. cadence just I the of So our really

Wes Golladay

thank Great, you.

Operator

you. Thank

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

Unidentified Analyst

you Thomas. much in you demand And Hi, on a have there. to Puerto about Rico self want target Puerto storage This long-term different do exposure is a would Puerto Can pricing Can how is and for Rico? the Robby between little the comment for talk market Rico? and Stateside? on the Todd you line how bit storage self about you

Tamara Fischer

for And the that it. the question. our Well, the our the who's has demand of a strong case the We been by there. we thanks for And by strength really dynamics. build I relationships saying a to about was adding I'll like off built a market fantastic frankly, was second appreciate portfolio Puerto what start quarter, And portfolio we pricing that us. to market that in just acquired down In pro down liked scale. is there ability Rico sourced there. portfolio, supply

so long-term on it like we whole And play. as know, Puerto good Rico we the we a and see

Unidentified Analyst

Congrats Perfect. on quarter. That's it me. a for great

Tamara Fischer

Thank you.

Operator

you. Thank

Sakwa question. Our comes from Steve ISI. next question their proceed with Please Evercore with

Steve Sakwa

Great, thanks.

asked but and changing So pricing answered, most back the questions occupancy, thinking How at, are of you're given business you half differently? the my just I'm ECRI year? almost you're of sitting about have curious strategy you been are the bit that the as XX% of into sort of managing sort going

David Cramer

Steve. question, Great

as what and we're through, now, velocity and we've been of August, rent and even particularly we and I then rental and going aggressive, that with With the going strength, the up, July ability, bit think, all roll out, our look are more a right things the into continued the us, little for the strength seeing September.

we're at broader And of base we're I tenants. on say assertive much very so end, looking the a would

how dividends. got behind logic really good about starting us think situation management really We’re which back looking revenue to is out caps, at where done that, we kept may potential platform, XX at where maybe maximize the is really about fully to our we're it. have our We've looking challenging ago, in. and implemented not months it's And built-in we pay really some

So more changes. in in little how bit assertive a probably say would implementing the amount and I time, we're rate we're at this point quick

Steve Sakwa

kind increases? move push of on there in And about tell behavior any far sort limit of out can would increases, a of behavior rent anything there change maybe a threshold higher rent which see kind that rates you is how customer is can you you or

David Cramer

of upper cap tenant. the come haven't some have is Like dollar we're total may uncomfortable feel set yet. those that to we that I what at mean $X anything I looking may a on would maybe And be across boundaries. by said, we the amount We amount,

some you of today. country, my change is boundaries municipalities in the haven't all doing all point. we're mind lot And our what a caused of we nothing and communities, So out those of we've replacing testing our standing across type across of come any and projects, But anything. of different and that we're anywhere been behavior at this

Steve Sakwa

thanks. Great, it for That's me.

David Cramer

Thank you.

Operator

you. Thank

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

Smedes Rose

that Hi, thanks. to I on little just wanted up follow a bit.

revenue You platform months was about mentioned that management out the rolled XX ago.

you're option unconsolidated? just that? wondering pros platform recall, guess, stand kind an to do more and opportunity to -- the and it's between of, the the have to And all they platform on I on As is properties have over X,XXX on you So kind there where be there not. I on that or of platform the wholly-owned are now add mean, now? target, What I to

David Cramer

And right of a really built question. now have really but too. really And great on of lot the been doing our are of are the taking the and and they a great our inside some have little XX last wonderful we teams, practices that, level with That's XX through our it. XX% stores of through pros job. pros some advantage one are great talent our figure to a acceptance the a platforms of over months, built the is and of things best some these pleased conversations we've And platform over very of

better getting So than much had, data better the and pros getting of results. they've much they're

very so there. And pleased we're

Smedes Rose

for I XX%? kind that up expect incremental take would you So of guess,

David Cramer

I would think so. Yes.

Brandon Togashi

The say our they're one still would that the that management that, certainly run running, operators. this an revenue maybe Smedes, platform. is similar to I onboard done is bill they've have mean, I private strategies, maybe things pros in-house as Brandon. Yes, thing specific

they're And pushing increases customers. so to they still rent

And make so just opportunity. do there to that believe I clear. still, I wanted is there's

Smedes Rose

that's David a you thank Okay, perfect.

David Cramer

thanks Yes, Smedes.

Operator

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

Ronald Kamdem

Hey, board. congrats And Brandon now on on the congrats new the quarter.

there Just Just on supplied. months markets contextualize the at were that done the in get equilibrium? that historically just we've looking last XX think thinking for many mind, numbers couple how the years help should to have comes these same over to demand You're forth? just us XX example, you Portland, period of about, store we been so did seen and amount sort about to we that can during gain has are what markets? XX that how those before we months double-digits, of a to

David Cramer

It's sure we maybe many supply clear have how that a shaved I'm question of great and of of we've line not a off. years

tremendous economic that the couple As seen now I've all the on drivers Phoenix results. and a Portland Oregon right one and just markets, being are going other these

pressure there. at at is, way there's of still look just throughout all You it these they're Oregon, at so we look certainly the top the list this and

you done about maximizing is kind than the want points portfolio, a is they occupancy, it's which still the has great of well, competition presence overall rounds team X Portland's the some that things wonderful there. they and a But really to there overall look how done at job revenue If less the many job and and where to many want how get consumers want with they Occupancy get all to in come other driving. that. of be positioned,

we've we that that think the pressure. I how off. So I competitive there's don't factors of some and are But many really demand mitigating years could shaved answer certainly know

numbers for Oregon so places, a are solid. and other these of few And

Brandon Togashi

the in certainly about, the happened what's question earlier the $XXX past it answer on plays in well into, And that's absorption. we mean the of responses, as fact our talked accelerated Ronald, plays that Juan's that about the that's XX%, it five million, I year some is mile

the it's thing, right on number. put a tough hitting you're it's to just, So

Ronald Kamdem

talked guidance, not you three and six than to the there thought being beat bit getting from aggressive ago? you think acquisition a Just there's Just going market? it. the of And just, just debt. bit more more lot some view to a you of closing than Got double that little would biggest an into thought? biggest then, And look really you're more just sort you're more be little changes right. is But, drivers a months you accelerating more the a this to Is of question a activity maybe maybe at color I lot deals on. Or Or both? a helpful?

Tamara Fischer

you I in a the seeing first frankly, of pocket But comments, we've also quarter accelerate captive able and number to marketed. things given what we've as think I I saw second a a or my in the think either good what leverage off-market run And we might been that's mentioned, into our it’s early and source relationships continuing our pros portfolios, benefit, been now, pipeline. question. in call we're able right and to just couple to us quarter, it

guess volume. I happens our unprecedented We this. of of a is underwriting. clearly we're if I like little I all bit But, would I it's like see it the add in that above. potential what that say I'll so we're think it know year another seeing, being disciplined just So extremely we'll don't

Ronald Kamdem

helpful. again. Super Thanks

Tamara Fischer

You’re welcome.

David Cramer

you. Thank

Operator

Thank you.

your comes question Joe question. Please with next from [Indiscernible] Our proceed

Unidentified Analyst

questions. good thanks everyone. for And afternoon, Hi, taking the

yields, balance versus higher now? about of bit and that the type about ultimately, again. little to all, assets more in little quality you prices activities sort Can acquisitions. I you're do The a of assets depth spoke markets the guess, a talk for how the sale on you of I know, bit you're seeing wanted topic circle about targeting? I just the in you more more back First

Tamara Fischer

think asset, cap we that us multi where it. than a our stabilized with for well place I jump So know, that, here. approach and happy quite might rates that there, gives It's to that yet, you newer at if start of want location and with go We'll just geography and well, and our would long-term. and I of not secondary are advantage. in like fit they're assets for that in that But tertiary we perfectly we to can quality I'll Dave be in assets see what we're building terms priced geographic reason, to assets, single you a underwriting in But guess, little I be the tell others as addition in are markets, with the well our are are in looking that geography I'll also stabilization slight higher seeing. storey say that,

question. And I think so it's any there's I too other much. provide. answers if Or know changed don't if your don't I can that color

tertiary and non-stabilized, but I the we've now secondary thing and talked acquiring to the to markets on we're on seeing those remains being about add one underwriting assets, we're I extent the open But assets. guess stabilized same. focused would focus Our is to that historically

Brandon Togashi

have, This about spoke that complemented and add portfolio. geographically, nicely I to is thing the we the One thing. Brandon, is of one we with close that is everything is ahead us would existing very

Unidentified Analyst

kind great. a coming stem related your And that from that some is you shorter with Do is transition base. Okay, housing consistent users in from of Traditionally, related prepared length have remarks then, of longer segment. the mentioned the demand pretty secondly, traditional like demand demand. of our they customer stays

David Cramer

thinking receiving house, you the maybe size able seeing they're we're what thinking afford as housing house, you so I type overall in I'd house long new sold around be house, tight of say the a It of of something consistent answers. But maybe was your thinking get I fairly variety can't so with far and about now you were a that out how housing of was as the the market, to of could time about. wasn't I pricing, pressure

product, use So of to maybe And our that's very a very less encouraging, storage square And great it's at I'm footage we lead you affordable. if little of buying house, which needs. a space. bit longer think may look it's because

market market play a on. some this And transition good around, to tight success that's good very position think, as in us, we're housing going we this this for in really rental have out, red-hot so, housing

Unidentified Analyst

Okay.

So for country, few and Just lastly, consumer that I'd weeks. over behavior variant me, any cases I difference Delta noticeable ask figured the in across the to rise past beginning with

David Cramer

Nothing we've we've place. all to of in know, speak back I and our protocols kept gone of

can pandemic little we're the on, seeing very a noise our to, economy in that navigate last mind more say about have to piece of we’re lot we masking other, So is push bit one keep going a mandates, year really or successfully. around going but nothing that the of able way definitively we communities some

were communities, really going know, And last the And if it's a essential even thing puts this on I so I We business will think significant to Delta year. variant pressure or deeming really don't continue flares us. on that have should impact clear?

Unidentified Analyst

you. good. Okay, Thank

David Cramer

Thank you.

Operator

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

Tamara Fischer

for optimistic reiterate like and pros team that either thanks NSA. support interest to XXXX later efforts We wrap forward leading meeting NSA in you for I'll person our November. again to quarter key or of thank call about remain again, your again. in also you delivering read members may of are many to whose once to And looking sector with joining we're our and Thanks in our this Thanks. I'd to and up, hopefully our results. virtually

Operator

Ladies and gentlemen, webcast. this concludes today's

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

National Storage Affiliates Trust (NSA) 4 Aug 212021 Q2 Earnings call transcript