National Storage Affiliates Trust (NSA) 28 Feb 232022 Q4 Earnings call transcript

Company Profile

Participants

George Hoglund	Vice President of Investor Relations
Tamara Fischer	Chief Executive Officer
Brandon Togashi	Chief Financial Officer
Dave Bergeon	SVP, Operations
Juan Sanabria	BMO Capital Markets
Smedes Rose	Citi
Todd Thomas	KeyBanc
Michael Goldsmith	UBS
Ronald Kamdem	Morgan Stanley
Wesley Golladay	Robert W. Baird

Call transcript

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Operator

Greetings, and welcome to the National Storage Affiliates' Fourth Quarter 2022 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 my pleasure to introduce your host, George Hoglund, Vice President of Investor Relations for National Storage Affiliates.

Mr. you, Thank Hoglund.

begin. You may

George Hoglund

to the thank us like for you quarter XXXX for fourth today earnings We'd joining conference

call of National Storage Affiliates Trust.

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

section which questions the package Following registered our [Operator on with on the release additional financial to Investor we afternoon, results, from distributed prepared detail addition will yesterday nationalstorageaffiliates.com. In may furnished at analysts. in management press remarks, Relations be accept found Instructions] our website our supplemental

or On date today's as your of because and statements of subject call, XX, obligation the management's and conditions update market estimates circumstances answers changing revise after company risks today, of prepared this that any other questions to remarks The forward-looking uncertainties to call. management's no XXXX. forward-looking statements may represent conference or February and contain assumes are to

differ forward-looking those that company from projected results materially any may in The actual cautions statements.

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

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

I call will now over turn the to Tammy.

Tamara Fischer

thanks, IPO the for second us since off impressive share for year, another over call Thanks in today. in fourth capped that FFO year XXXX. We're of everyone, per highest our and for joining growth XX%, our delivering George, results very our pleased of quarter with year core the growth

now than share record three year of store XX% the and more XX% levels year NOI XX% is XXXX. store than than now a same per growth higher the of culminated same for Our FFO period where more pre-pandemic is almost

stores our venture that at at XX acquired partners. nearly X with XX owned of wholly million we million at joint $XXX we valued $XXX properties the year, million valued $XXX comprised acquired and valued During properties

wholly record a we're to proud partnership activity. we insecurity our Feeding I think biggest the delivered largest ending this food the levels financial since we our are provide able Through growth XXXX Not for top IPO. of acquisitions half deliver America, owned it of since assist that was proud it's to year was also our dividends growth XX% based off, in also our paid our our to in meals transaction worthwhile volume supporting year. To prior to note million to compared were shareholders, and only being third on XXXX in America. year in IPO a able our communities in we with

and continue And charities. to support corporate our Denver. schools team toy drive in their thoroughly properties for Our Children's children's enjoyed here Hospital local our holiday

Self program. of our were the step to support We again up Association's pleased scholarship college Storage

continue to diversity or We NSA management enhance senior also were than are women at minorities. more our our XX% of

Turning We're seller fewer a gap to remains to the and the come current environment. buyer between market and significant price seeing deals pretty expectations. acquisitions

the in it deals disciplines selective of evaluate increased capital. makes where remain strategic and and of face to both continue sense very today's We cost

to the given buy to refuse generate. healthy are cash like they Sellers shareholders. just at course, our Of often that refuse for accretive sell we flow not prices

in to pricing. Overall, sellers not it's market slowing. volume definitely market the So if the the for deals the they like uncommon transactions don't just pull is off of

sellers. don't generationally also for of though, To Because into to team but structuring recently on an the yet beneficial our owned which the of our benefit shareholders, that be we we as members. Florida the in seller cases, end, buyer million year PROs first transaction and expect agreement use in cooperate and in $XXX valued yield properties do assets, we by XX we're and by can The managed at we XXs. case, pipeline PROs have our acquire family of one but NSA. negotiated that beneficial our In these series about entered issuance will is our low to unique accretive equity, of this to the the to while we case, we've to preferred family, as transaction with own. of still same to stores accretive In are the the new approach, a fund captive the

We PRO in demonstrates to to being the creative sometime very our March. ability deal one transaction This our many benefits will continue grow structure capitalization. expect close while of the and with of

our We managed began in Move of Southeast. move XX storage and of XXXX with Texas for itself one accretive retirement properties the concentrated It the over PROs. in IPO event another NSA

retirements time, As retire secure within care XX year most following years. time over and of the choose in as we IPO, half as our we've at would retirements six of PRO and an expected the last our It PROs to of PRO at discussed our the of XXXX. Northwest anticipated time third you is many know, Move

accretive managed or We the will stores our XXXX stores total been their year. number internalization the corporate like Move of They've increases to to over flag of the NSA the XX% of continue It It our estimate the portfolio Move contributor the partnership within the success. key end retirement stores one a for It to almost to under over to Move operate to at years. team will two core this XXX FFO. of the stores, pennies be thank share We per I'd

also Officer. this next and recently CEO wrap look my Senior on will congratulate up quarter. continuing stakeholders. to Legal Bergeon, to Derek NSA results elevated to at being call and I'd effective I up all today's move President stepping of to as NSA's final Chief deliver our through our his like of upcoming Officer Operating Chief I'd to leading Vice phase Operations, and to growth forward Kenyon Dave current end of for outstanding as its CEO Dave congratulate on as like year Finally, Tiffany the of

I'll call now turn today, over Dave? the

Dave Bergeon

to to all new that appreciate would do We executive upcoming for to you've like I'd the Tammy. to teams like on I done PROs for able will we along you results their our in year. all us their and great XXXX. thank the NSA have to Without Thanks, be role. this not all achieving congratulate accomplish chair. and would team you that NSA and your transition efforts, we with continue also your

at we QX quarter As finishing really in trends. Contract and we Occupancy and fourth normal finished the at than XXXX grew peaked XXXX XX.X% on reflect every seasonal played out, month December how and rates XXXX. in experienced XX.X%. XX.X% higher

patterns activity average the which and quarter, XX% in the rent in our followed line summer months in peaking half the of down historical Our the was with back declining in expectations. roll Rental year.

our average has tenant reminder, current over a an of of stay As XX base months. length

the NOI basis driving revenue controlling of in margin up job only wonderful XXX a X.X%. did expenses which That's X.X% leading by to improving team of X.X% NOI quarter was points. in our an Our increase

As we bottomed our are February. here look to industry in seasonal rates encouraged XXXX typical portfolios at as following we trends, occupancy

both well was implying higher as We to believe that stabilize we into season. settling we pick occupancy expect in above month basis head than levels. same XXX We leasing spring we're store above January points January end over up XXXX levels. them to pre-pandemic pre-pandemic are on track

of North are Florida, Oklahoma growth. states City, reinforces Brownsville, such market strategic secondary Our our on and portfolio markets diversity. with markets and geographic generating as Wilmington portfolio the also continued average McAllen, focus all as and average. Texas, to our on suburban Georgia secondary above [indiscernible] outperform Sunbelt Carolina, Several outperforming markets such continue This Sunbelt, emphasis revenue and

will in enable platforms focus XXXX people, success. continued results and us process on and Our deliver strong to

more detail I'll now turn provide the on sheet to Brandon and our call balance results financial over to activity.

Brandon Togashi

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

year store growth, XXXX share by XX.X% FFO the full $X.XX, was core healthy the XXXX. and in revenue volume increase the back performance, throughout For half acquisition same XXXX including driven strong and of per over XX.X%

Dave spoke to drivers the revenue. impacting

some Let operating expenses. give me fourth on color quarter

growth in increased pressures to successful property quarter any on by from expense. benefited taxes partially and offset inflationary of expected than X.X% marketing fourth efficiencies utilities personnel lower due some challenges Our

Turning to sheet. the balance

of the entered swaps we interest $XXX to During rate quarter, million floating on rates loans. into fix term

and these interest December retirement announced revolver with the XX. expansion $XXX swaps on $XXX of our recast interest of X.X% maturity weighted the $XXX about evolving we January, relationships result average facility, The and strong loans the our our to our weighted point during increase a an the was environment term of rate. from our and storage execution to have early basis type weighted capacity average of property a XXXX years bank increased as lending was In pro appeal of million, existing XX, end of was September forma effective X.X% increase in including in X.X, flexibility, group. loans, average bank as with effective million demonstrates at A to maturities. X.X self rate a credit million extension we five an and This

leverage At activity at quarter financing in end, our end, our for I've debt EBITDA year to forma middle range of net X.X. is nearly profile of X.X times to balance six on capital. to down committed sources exposure, approximately to of targeted the was revolver. from and right XX September of the our the debt Pro a XX% access conservative at variable the to healthy all that subject leverage exposure with XX% maintaining rate outstanding from We're multiple of mentioned

guidance annual we've midpoints our which we introduced X.XX% estimate X.X% is provided, of store provided. expense the pre-pandemic. yesterday's range store revenue reverting same term each which with at midpoint average and of line release. growth XXXX Now growth We over three the store is averages. in moving X.XX% in to to the growth the NOI estimate growth of We on Same growth same long at we years of

Our same in of million volume XX XXX acquisition feet, store increase over due and to pool our stabilized XXX square an stores XXXX. record increases stores to

stores revenue our of to XX% Sunbelt. is growth stores by we in from Approximately outpace And points. the non-Sunbelt these XXX expect portfolio our basis same about store

are operating pleased with core fundamentals. We very our

earnings assumption $XXX rates and expect our billion interest in interest place we be debt for the currently, year. SOFR is average an higher an of XXXX. headwind Based X.X% in on over However, expense will using

results to midpoint of of share core per guidance All in XXXX FFO $X.XX our with $X.XX this $X.XX. of a

at were a with January increased NSA converted Move which distributions million. mechanics retirement. common the and outstanding reminder therefore, the a on be regarding The Move longer by of no It, units will pay to questions conversion It management a taking shares Punits offer reduced before fee. I'll accordingly, associated X, of to Lastly, ratio will on SP while O PRO, outstanding And units the units SP PRO X.X X.XX. a

management property reduction an G&A increase now expenses properties by be offset administrative managed So be by supervisory NSA's in within and corporate will in there partially a the will platform. will which other G&A as be

our the these into of that earnings are release. items All detailed are factored in guidance additional assumptions

today. joining again Thanks for our call

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

Operator

question will with with Thank Please and this time of [Operator a question your you. first Juan Capital Ladies proceed Our we be gentlemen session. Instructions] answer and comes Sanabria from at the line Markets. question. conducting BMO

Juan Sanabria

Hello, morning. good

about little environment about, talk some low the was Florida, could a I you bit hoping Just of talked from more it yield on think PRO the in assets the a family. acquisition X% you acquired you're

the to what Just the kind evolve XXXX to of update given today. markets you and over see in kind seeing get you're we yield course should hoping how expect of an where that today on maybe of

Tamara Fischer

assets say that Nice PRO Juan. to I morning. we're this would relates you to with as Thanks the here. speak acquiring it

probably month next mid the increased not in the fives six appraisal. we assets just as in in cap seeing And we're over rates hope a marketplace, things. have In we it's those in would way. that general say commensurate cap. on so said, come they're the Sometimes where is And I

I to market us think XXXX. unusual a between early seeing was more not sellers they're see coming gap importantly, deals part is in seller fewer the that, and pulling what seller, pricing generally seeing of a transaction buyer. when we're And expectations everyone to getting not XXXX, for in

are little bit. people generally think just a back I pulling So

Juan Sanabria

there keep to And data Curious a BNSF Pro the you efficiency across retirement. have on follow up the versus how on out on from as standpoint, flags opportunity the an think and platform. then about disparate brand the the everything keeping decision just the to [indiscernible] names one

Dave Bergeon

good Juan to morning. is this this nice Yes, Dave and you to talk questions

retirement, the keep have are at of most the where move the in we As of place a brand will markets in markets, few we there we overlap. look

of that some very maybe in we us we look more had in at of run brand we may we years. it. markets But those of flags within move markets, As proven more across believe do in stores through to the very platforms other committed we're have it a brands where around at selectively look to have. may regional where limit a the having group not And powerful that them brands and out these one our We've the those multiple maybe we still us it's brands for and strongly believe brands, strongly country. we pretty we the

built across make it multiple us And We've deployed those be easy be tools easily. to can tools that for brands very efficient.

get we it by will brand in where to looked and would We PRO maybe we any we across at at at it pretty so on says. change but had multiple and these point one comfortable retirements think everything a a markets single And the continue scale where time, future better our or having look we in can any this of branding markets. we

Juan Sanabria

it up numbers, mind. don't if occupancy follow the you give January rate sneaky one please? Can and just street you Just spot

Brandon Togashi

is Juan Yes, Brandon. this

year-over-year to we rate X%. in opening about street switching store same a X, we're little remarks. the was over mentioned pool new So And down as

of the line pool like is is So December, new January sequentially XX kind with which in from down that's end typical at bips [XXX] seasonality. at the and of

Juan Sanabria

Appreciate Thank guys. you it.

Dave Bergeon

Juan. Thank you

Operator

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

Smedes Rose

of Florida cap was pretty just think in more wondering thanks. I range That guess about good market. properties why Hi, how without been do of XX talk I little like are and guess a it's couple properties in their more, years. fee a pricing guess of a just you I XX in you if knowing generally next sort sort six over these low Florida you to and I performance, a the of strong kind available could bit seems

to So if issuance you any there. this and wondering equity I'm kind of what more this around of a about preferred maybe family talk more special just could details it little

Tamara Fischer

in family family. they for and owned PROs, and regional these assets assets Orlando. to participating But And have start operator have our in term And contribute and by planning probably are in many, from little their a estate we'll to basically I'll been Sure. weigh now and coming Brandon it. Got of Dave bit. planning, part assets many these NSA. have these years long agreed extended as our

And these a time. this XX of just with owners in It's has properties. complicated taken long the number

pull to So on and they finally together get able everybody were it board.

our coming pipeline portfolio do is history assets captive out at our in of And and PROs so value, the agreement with without appraised come our that and a premium.

coming. excellent in And excited an so this has about is been a long performance This joined us very their XXXX. We're outstanding. PRO time And it. is

doubt continue they at the operate pack. to have We no top the will that of

want So a in maybe bit. you jump little to

Brandon Togashi

deal. on This that mean on that deal. I Brandon is Togashi

the market Specifically, Sunbelt got think top another growing deepening now. I stores the presence MSA it's Orlando XX our market, positive, in we in portfolio five right current

XX to takes assets with us this XX. incremental So the

So that's a positive. tremendous

have did two, deals at recently, property. value just done higher I you, the we The broadly albeit we that other would is thing tell only

situations capital the were helping QX for And us the these all PRO $XX equation. million solve of with are working of PROs side are us where sourced. in cost the So of those

So closed issued agreed with those the the units $XX properties they of were QX upon unit. two that in good OP chunk on an we A consideration a that done premium in we at form of

of shifting mini the Tammy of property consideration as case we issued vast be Florida the expect the form personal in the were for the of And in majority mentioned. preferred, deal to

some the things the over just few and deal last next get in to the agreement documents of weeks. There's signed week getting So more terms done. through

performance hard paid switch, to preferred we the that similar on to X.X% price be yield. in of going majority of we've the to a for very that on number don't yield expect form value the have outstanding you. for It's purchase I a a agreed will based But So be carry today. our

Smedes Rose

Okay, thanks. was go or And I then I sorry. am wondering, just ahead

Brandon Togashi

was No, it. that

Smedes Rose

your you're marketing ask of property kind sort more line expense wanted and a what the to other just labor, and about or of wages if just seeing of thoughts could in items? on components, of sort major and some any bit maybe taxes, you little Okay, I you talk outlook, maybe

Brandon Togashi

Yes.

And X%, end personnel that's low end, 'XX. growth taxes a property in those our base two that probably taxes, in biggest wages in then low little total biased flat items, the two growth property the rates for taxes X%, items, high kind we growth range, of in just line with 'XX to 'XX. property So at under line we levels, be we to line of expect will the gave had personnel, essentially off bias comes case on to OpEx X.X%

So we're working against that comp.

if very digit single growth mid in that's, that up number. pleased So we ended

a above of off thing last to digits, The for will high be in total first to we've against. first just 'XX quarter other probably midyear, sure, growth have got kind rate is starting growth we work the of you just get the is I guy the We because point that kind we be be line I taxes. the utilities, of net be And the guide utilities, elevated but terms And tough had on 'XX a single were or still with comp. and we would gave increase a we comp to spend. for going in dynamic good year mentioned the year, last items to tough marketing, so where property time utilities, also QX, marketing Marketing comp of we're a working in insurance. that range would that half to then by

Smedes Rose

detail. appreciate Okay, the

Operator

[indiscernible] comes Bank line America. your with proceed of question the question. next of from Please Our with

Unidentified Analyst

some Doing seasonal web February, a trends? could the and how provide the see spring color might relates kind that perhaps morning. indicator if be just taking that of to it maybe was latest I into are there's read we're does indicators Thanks. that maybe for how demand provide cadence you Thanks compare on to as as consumer would could Good my a the wondering you the good into traffic typical through question.

Dave Bergeon

seeing knew I question. Yes, is we're half to would the rate historical back a as levels of Lucy we managing as XXXX, thought Dave really job, good what more come far customer this activity. back now team right We're with pleased good as did levels. the occupancy really

to with And good rent, job we around, did so contract did and around discounting rents really we a what end what we asking of did our with XXXX. the

end on we in spend, ramped December. of in that November we and really the up XX, turned marketing Towards

And effects January and so as we're we than X%, were X.X%, a January's seeing the that, for come higher numbers positive this pool. into moving of in year January ago February.

the just And of with or spin. in mind We've January. were the numbers of at amount funnel historical or about has a the And we Top of close be pricing. in half amount good, half applied of a activity so applied paid what of right been we had. to market pressures around were out pleased point outs to flat moving we've for amount the were right we move fairly X%, where of wanted

more pricing little adjusted in be these speed we've to competitive So a markets.

And so we're of seeing the that. results

is And so of the top funnel strong.

Our conversion is activity good.

leasing time a think year, I positioning so a occupancy. this wonderful think teams usually of to going spring of In season. be us we done for bottom have pretty what is the you that see typical And job

right towards season leasing cycle pre-positive where found now. we bottom we're that street, more to we we're the the starting and and of see spring think at You of

Unidentified Analyst

And helpful. you're PRO partnerships. to with you about a into thanks. could acquisitions hoping through am as your up, follow just enter to wondering focus the I Great, That's respect talk if

markets Is XX like given Just more to had more versus focus a historically, these acquisition, a of Florida shifting as as towards what you've top a latest the MSA. primary there the of demographics about Maybe seeing still could are most tertiary? in that XXXX? best More terms you if where secondary, talk where, of what in markets the makes exposure? you're sense,

Dave Bergeon

good Yes, question.

fill acquisitions good that us gives think markets hasn't derive us we and I revenue. it of around where we and in a the acquisitions tremendously. mean, focus PRO gives certainly I focus our good to think on scale, our isn't fantastic. we're [indiscernible] on changed Sunbelt, in economies will in strategy ability We're our have market secondary XX suburban a is focused markets assets able changing. to that the Sunbelt, The on top fact in had

changing are timing pipeline We've there's long success The available, have on we those liked the We We can't looking our we the loan estate been is get PROs our we portfolio. we're do time we're remembering assets captive we've it. comes. of where like to of for here maturities, today. we become balanced. planning, we're them will they things around portfolio. for assets in time, these But and look when markets these coming more assets in happy operate rest a our a into And in, what The markets. control. as for future. the to of captive had those in around looking liked We're balance. the operate We our around lot really And in not future

Brandon Togashi

geographic Yes, add is only biggest would footprint have is this you good be where assets would of those it Phoenix, California. in our if we're thing, southern in. captive bringing which the pipeline, [Lucy] concentrations, looked Brandon now a of parts chunk Orlando, the at we I

harvest Bradley. what more Dave But I So no deals with disagreement areas. remarked will to you see as we some on in out of those think the continue pipeline,

Operator

you. Thank Great.

question comes Our question. with Research. Wolf from the Please [indiscernible] next proceed your line of with

Unidentified Analyst

communication wasn't for Maybe first, like it in hold taking Prior be give Hey, what shift or guys, that occupancy. occupancy more given were in appears bit sound strategy just seems color made questions. and a to the you it to the like the quarter. case, steep give more on guys rate, thanks little looking slight the drop but a less

that. of kind So curious on

Brandon Togashi

look off you highs. the when think, occupancy I drops, at historic coming we're Really, question. good Yes,

occupancy, operate Atlanta X.X% basis revenue Atlanta, high our quarter, look portfolios saw to look our greater but at in peer normally growth. the fourth XXX levels. such you than our group may at a don't still a delivered But I we point what so drop probably little maybe spreads we where And market does. pointed if

knew XX% occupancy into That's we were more occupied. last levels. portfolio. number was to for was an our at going And normal unsustainable Atlanta we what settle year back

a want of back and I so historic And do other those we once to levels, down good think to that you come to start go holding our knowing does reach the rates, turning job spend. unit historic to with like the occupancy levels team and would do back to half want we do What we discounting. levers on do conversion where paid rate with back

And level. revenue, so I We're settled wanted focused growth. in to we now occupancy revenue on as be And we where an think goals. we've always, in our we're driving ultimate back to that's the really,

Dave Bergeon

thing, would that basis I the XXX on at see Brandon time, can add spot we point negative delta And talked we given thing and at just only when hey think one call, the October. that occupancy end last had about a I and we is, being our widen. spreads you of year-over-year were that

seasonally blind, our that mean, And throughout part the January, the in here, trough occupancy was February, in what the of then year and of so strategy we speaks I whole kind typically that Dave normal times. normal see bell curve of accustomed hit I on. to we're that their do to as think, and

Unidentified Analyst

there online? markets out as called Got then something it. supply seeing else in coming you is seeing? Or weakness, release, guys Is driving are what's it? the press as just it in you new And far the

Dave Bergeon

out, couple pressure. mask of well, a helped into of The to are back as that some rest is certainly some pandemic. cooling like bit being prior through of market, working going right away, also tremendously way And you're housing to fluff markets. call country. the now very, we're And that a hot new think there's markets Phoenix is We've A of off. talked of is we lot now pandemic the lot there. compared Phoenix, returning about is I the built our of it pandemic supply a coming to markets supply new a And very those Portland, quite there supply it. as those hot the

And economic little what's of a around. new some supply, that's so cooling of movement driving factors. And that bit

Unidentified Analyst

And more, commentary. just the expense want you to one on mind, clarify don't if just interest

aren't just is kind you potential want I guys to You given SOFR that an Fed rate said clarify to additional hike what correct. of that's be contemplating going

Dave Bergeon

Well, a mean, we're -- range, multitude a modeling scenarios. of it's I

we've that assuming kind So on our corresponds number of we're a to primarily move would to and the well. kind also for I way And running and down gave able analyses used, top we're on base, but that spot up of, I drive line what as you sensitivity that. rate we're say, revenue

Unidentified Analyst

Great, guys. the time thanks for

Dave Bergeon

Yes. Thank you.

Operator

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

Todd Thomas

guess the delta first couple that where guess and you're Good that are comfortable Tammy basis to but about I Is X% Is between morning. Thanks. a X% I point of today had like range? a follow the buying you're just at is expectations buyers right I and way at low Hi. ups, rate, between acquisitions. sellers? cap on on in what think range? are? where gap sounds like the sellers sellers XX in the mid it

Tamara Fischer

this very capital investing and it. in that's We're and its looking honestly, around think Now, very to Todd, very, using right, this year, cost be based I at transaction, be on selective, decisions opportunistic and consideration the for preferred we're X%, capital. still stock your to we'd going acquisitions our of current if

Todd Thomas

the that that Okay, the expected preferred so And to something Brandon, equity? is and is performance transaction to else? fund to, mini you that personal that be that a Is anticipate then X.X% XXX% investment. units preferred subordinated traditional is the Or rate issuing with they are funded? then, or similar in preferred? on

Brandon Togashi

Yes.

of efficiency So the transaction, new issue prefers. it's not actually subordinated reasons some or why we're anything like series that There's thought preferred it's to more stock. going to tax traditional

call preferred off You might be last the five year. late aware existing burned of non series, year current

purchase that I be features makes with And new price, mentioned a don't I issue vast have of SP it'll on. So number, think said we majority, deal subordinated but I equity sense the more hard in with sense. new majority to expect we of stand Doesn't in like that and terms. a I as it the the But traditional have our up kind vast this PROs. earlier, any, the series to preferred like expect equity majority

Todd Thomas

planning during any of permanently the Okay, in of in fund order you balance Are or how credit sort balance anything that's else how about, and guidance? on there finance year? the outstanding line incremental guidance to the contemplated are to acquisitions in initiatives revolving sheet embedded

Brandon Togashi

than that, us a PROs capital we that think because routine here balance debt table with XX got I manageable million at pretty to solve all that the near will we've good terms of incremental of mean, QX expect and and Other QX premium. issue doing can means the for your the term slate we and maturing bring did the sheet SP last What needs, about that job our cash. with cash talking By keep to co-invest equity and with mortgage month, very now we've 'XX, in the clearing returning funding. CapEx CapEx this any in talked OP done can in everything fund much of on equity we acquisitions. doing portion helps a the what I we're I we a mean, certainly new equity preferred, do

near don't revolver of the needs. have capacity, but So million have today still on lot term we're XXX we pressing drawn XXX in million roughly a

said, we're side. well hastily. as So as both the side the do anything Tammy to We'll capital be going not on opportunistic acquisition as

Todd Thomas

started January by missed of an if one I XXX year sort it's and occupancy changes, compared if mentioned, share occupancy the for what February, in curious January. and pool start you about or points basis one I higher point I, last January, think you at of this, talked last creeping understand to relative think versus you to was one higher, can And to loosely, see you update to And the have this I does on XXXX. you basis? if flattish but start at how Apologies Okay, XX.X% the and a January sort for of end stabilize just end year, on the trends Dave. of said, I year-over-year still the

Dave Bergeon

we're starting our to our and and Todd. I patterns traditional things is We question we and have February good bottom which is commented, Yes, mean, see where think improve. as found, seasonal found we I trough,

are as And we're happy so look with we as where going. is where occupancy as far rates and at February, at going where we're

that. because want we really cycled So color over can't will think is into are, be it nice spring February to. leasing do going we give think way season. and any I like I probably to is back said, we the responding more I not a what not certainly But we've months, And we

Brandon Togashi

it's Todd, XXX three a group that's of for core apples comparing ago, a pool true a years year that study four period, based to properties can comment we five a or so about property apples. on to

Todd Thomas

like What's the Again, different year Okay, look at spread of like? year pool? on I got end But it. the January realize [XXX] that over a new the look pool. what's it's a

Brandon Togashi

end XXX year the At from last points. it XXX of January, was down

Todd Thomas

Okay. Thank you.

Brandon Togashi

Todd. you Thank Yes.

Operator

comes Goldsmith question the proceed of with next from Our Michael question. line UBS. your with Please

Michael Goldsmith

digits lows years and afternoon. to ally Good Thanks ranges an lot down is Brandon in a question. your up. for of to single the [indiscernible] call stuff my mid in slightly taking the slightly growth be earnings growth seems guidance for

can is years? the through a you terms type on nice, something help kind flow clarity in assistance headwind NOI that we or provide same preventing where, progress in kind what's of of of future store of year can expect growth the So some one and

Brandon Togashi

XXX Michael. variable in average the We've projecting interest we of rate little largely Yes. that mentioned below the year, I 'XX 'XX. carried that debt around expense, million bit and throughout It's that and right on a that open. as got level, about

on But higher pretty be versus rate 'XX to 'XX. probably comparable throughout rate XXX is the a it's points variable So going base. debt

And sharing can structure cannibalization. still works, our X% a meaningful in but four FFO pretty based right there million. There's $XX you with to growth, some how headwind. on It's do PROs, that's our so there, that

So the be some I think, XX the play beyond. and it forward relief looks interest that that on out curves and there will they might, like way

optionality. going that our variable our to fundamentals our And business XX% strategy year and this, the economic that you're for like to in it can we some and rates it current the are long we're that fact total rate And comfortable and the customers characteristics to under XX% quickly hedge I a to XX% right carry inflationary like now. feel but it we feel us have mentioned with environment term, respond move it's gives of correlates earlier, quickly. aspects, with that provide in some

the there. philosophy kind that's of So

Unidentified Analyst

next return higher in weather the sensitive when ability you're higher the pro that of Thanks. one macro the we and for are more disadvantages you than the structure. an just does moving structure? just the Are this are for moving price you Dave. to seeing softening the with being this macros with or and guess I advantages kind of a Pro and of Thanks customers kind In price seeing time structure the like, past what generally how

Dave Bergeon

bit. we've question. down. good to that's market competitors to had bring been Thanks. a asking due asking down moving customer rents, little had rents And to on From rates really Yes, lot their there's a of conditions, perspective, a

a I little the today price more, sensitive getting consumer conversion shopping more the they're think rate. to shopping is as they're

we've we at of blend at And marketing find customers. and of the adjusted what conversions right so we as looked pricing looked have we've rates, spend, our wanted to conversion and

For as in place to had much we what been as on we're really our tenant, what rent stay in able modeling far changes, resilient. pretty the haven't We've looking been rent they've that in cadence, alter place, to our change. we're of at in place on

of from knowledge, the of good seen history seen They've on I pretty they've times. haven't to pushback, noisy. have XXXX XX not experience. our and very ground lot strong pros they're very, perspective, on And like times, market get they've things years said, very very, PROs tough a these had been mean, been we've markets. staged resilient, These in cadence strong the

their businesses I modeling them has the our PRO make and platforms they they're And markets been local They in tools so historically. superior. our their to think have and were response how better than

really, they're what doing sure are their had on we've make a And markets revenue to experience really operating good perspective. around

at history And do also long because look control. pull to really that's our really, good money need If be need forward. they with quarter, our when the and fourth the control had expense know they expense we to you in control smart what back go back as pull cost they long and operators experience, who to have

and gives Because before. whole they're a this lot advantage. sort be So structure they the better history, knowledge, an to platforms PRO of I a were of us think of using lot new than our market

Unidentified Analyst

Thank you Good much. luck very in XXXX.

Dave Bergeon

Thank you.

Operator

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

Ronald Kamdem

on and Are be the the thinking are into recession, of terms rate number exit recession? about about in in thinking guys thinking half the the at that an the how digging of Maybe store range. versus guidance top you revenue the just of what's the half how versus half the I'd Thinking of year? curious second you midpoint end Hey, one, year first bottom guys end? baked the not then on at year? of same second about Just are you the And also guys that? the Thanks. about

Brandon Togashi

with scenarios our as growth. 'XX that on Ronald Thank start where starting or the finishing you given of for given definitely then year-over-year Yes. we and year we scenarios, Brandon. that the positive we've progress. inform 'XX, We for still questions. the growth In 'XX. decelerate all all And ended we're moderate it's rate guidance out and higher range and growth the on the

in or we So any means. projecting flat by at point a are negative no even growth

of some numbers some then the, through are of recessionary recession and and And current 'XX. in, recession seeing of flow it lag be we're the whether In feeling That really sector, range, you midyear, technical between for for there's storage technical assume say to in today, bit we've or it's REITs. may baked officially of say, declared, a historically, what's just economic terms the of terms when a place I operating a forces predictions when my what would of what a in that. like does the little see start of factors all the provided

And in, into ‘XX. have and second by really of all continues so that packed but of it we then 'XX begins kind in then baked kind half early of

Ronald Kamdem

then follow my surviving, and negative to going of sort as The that what is, go leasing number in look, be of anticipated? is demand. And you number you're coming out same and website question that looking visits the looking at sitting you Helpful, one? funnel then seeing figure the or peak Thanks. some better indicators be, than can sort worse here if you're up to the suggest are top anything you're today, would season two, you of at, just are would of

Dave Bergeon

volume at we getting we're are what we the want. we're responses and getting as I conversion being We're the mean, I opportunities website. questions. the working. good we using to look we presented us Ron, Yes the don't anything see yet levels the we're want, tactics the want, on certainly using

So from with point, at this we're that now, we're aspect what pleased seeing. right

I at figure and about shop reacted As trends. the say I back think and season, get would think what more stuff through spring you February we how and been look right this right leasing now, out our do we pandemic And we maybe talking get we've seasonal pre-pandemic to we so January, what found in to that. about patterns, have

see expecting mid or rate gains change put start some season early that occupancy I by were think not this like and think but expecting don't or the didn't pressures April at macroeconomic that leasing We nicely, shaping to we we'll May, on of up is business. know think we April the April, May delayed will kind our we if of spring saw the probably we know consumer kind things materialize We're thought. maybe I gains that some point. by

Ronald Kamdem

That's it me. Thank for you.

Dave Bergeon

Thank you.

Operator

next of question. [Operator your Robert comes Instructions] Our W. Baird. Golladay with question Wesley proceed in line with Please

Wesley Golladay

you just numbers on everyone, cited. Hey, movement question the a have I

or a year-over-year. potential they zero percent there's you January, there broad that benefit said Is I were up a think pretty based? few weather in

Dave Bergeon

broad been there tough really It's some in our Yes, been is weather based. country. pretty of some parts

January. move ins we And were X% in positive over so

pretty based was So broad it the country. across

Wesley Golladay

the to question the growth additions this have contributed you new number store one Okay, on and then, I same Do for much the guidance? can get a how year?

Brandon Togashi

basis point is this the about that XX revenue. list on a Wesley, to Brandon new It's stores provide. XX

Wesley Golladay

Okay, a lot. thanks

Brandon Togashi

Thank you.

Operator

Our comes with the With question. Green [indiscernible] line next proceed of Advisors, question in Street your please

Unidentified Analyst

you. Thank

wondering trading, repurchases how which stock repurchases where your thinking given that allocation the prudent, up and just is stacks about priority list? some made on seems You you're capital how your share future quarter, in

Brandon Togashi

underwrite certainly say It's also the I can acquisition. option an highest individual be option It's risky Yes, asset much. that we to something continue to And tell investment Spencer, It's has this return. Brandon. throughout you pretty as the do would we can quickly. XXXX. it's I single go that an it relative that will easiest is least the And

about positives it. So those all are the

you side, can and how for flip of in the do reasons, actually On kind quarter you're regulatory much or on practical constrained also given period. any

at QX premium $XX little lid that good is really a equity perspective, ways a of million heads in think bit We creative acquisitions I a $XX from a of we on of where are that also things. the representation mentioned did of our earlier. So with is it that a included I frankly, at but there's buyback, did OP million

delivers of And most So kind we're that's things. on the we're what table. the going how long thinking about to do term Everything's just value.

Unidentified Analyst

typical the leasing Can do in of in season? be on able to to just where terms ECRI up follow quick the magnitude? And expect on most a just you comment you And helpful. ECRIs discussion. that's have been terms of Okay, recent push ECRIs

Dave Bergeon

Spencer. question, good Yes,

Our cadence has same. remained the

XX we're So X months, look amount come on to customers The top and down. customers we're each has market the the similar pretty we hitting our what at, remained has is over moving the rate hitting past certainly seen same. month of rate timing as we've the

end, a overall, end, and guardrails so cautious changed. we're hasn't being but around little top around top we some our it And may put significantly their

the season at as expect and top lid we the be the should stick been. that time to as into into season. spring, we pricing this take our some bit. we've helps cadence leasing spring look assertive spring at we little Street in As to leasing better going And a And off approaches. as go see as point Obviously, we

Unidentified Analyst

you. Thank

Dave Bergeon

Thank you.

Operator

hand closing queue. in questions to back call Fischer the Ms. like are There the further to I'd no remarks. for

Tamara Fischer

Okay, thank you.

to our many quarter your it participation your We coming for the time certainly Thanks feeling the about definitely in forward appreciate support fourth seeing So XXXX. of calls for very today this for look wraps weeks. optimistic of for in in up the ongoing and NSA. again We're today. We and your XXXX. year you

Operator

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

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

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