National Storage Affiliates Trust (NSA) 2 May 232023 Q1 Earnings call transcript

Company Profile

Participants

George Hoglund	VP, IR
Tamara Fischer	Executive Chair
Dave Cramer	President and CEO
Brandon Togashi	CFO
Michael Goldsmith	UBS
Juan Sanabria	BMO Capital Markets
Jeff Spector	Bank of America
Samir Khanal	Evercore ISI
Keegan Carl	Wolfe Research
Spenser Allaway	Green Street
Ki Bin Kim	Truist Securities
Smedes Rose	Citi
Ronald Kamdem	Morgan Stanley
Wes Golladay	Baird

Call transcript

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Operator

Greetings, and welcome to the National Storage Affiliates First Quarter 2023 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 National us like for Affiliates you quarter XXXX for first of today earnings Trust. We'd joining conference Storage call

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

limit follow-up you remarks, prepared and to queue if Please then more accept to questions. one registered financial questions return Following questions from question have will analysts. management your and one the

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

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

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

call the over turn Dave. to now will I

Dave Cramer

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

up we rate seen. The that over in through months, year best We appreciate ever increase our joined I'd positive the CEO. of the and average signs say rent end team and for at direction, off to stay year levels. looking direction. a to of are Overall, rates the XX are the NSA also X% of at right in is so are normal is first you've to today, our of also your acknowledge miss role. length today thank PROs back IPO The his our you and us moving NSA call name. years Street Trustees, the of every and from as to the with in has of valued But Also, started, like and same roll sense as room humor, comps starting Chair highest and month the sector the move I'll you increased portfolio. for ever the and George two I'd moderate are self all continued remind that their coming at been member of greatly. April. for the dedication appreciate recent with down acknowledge this moving guidance at time the the all contributions team drive of Before Executive George as congratulations there are beginning of contributions hard as Tammy January in slightly for XX% a on we started, in how him earnings our I'd growth, like passing thank has right the we growth we're XXXX frame. Length our April year to members have members our Contract to know, Board fundamentals Chapman. that now is of up Board we of everyone's greatly years, rates to continued here continues my like will storage wisdom, our XX% and many move-outs things the With efforts. Many too of to that stay on you from over and occupancy our in our moderated April. challenging the in done that significant work get now and

quarter. performance, of began X.X%, We delivering finished historical the the with for Now revenue turning and long still XX.X% growth operating average the store solid sector. year same to which the XX%. at above for quarter at Occupancy results ended the term is April

housing slowing economy pressure. headwinds the With continue demand levels of to a market, and feel muted will

Las Vegas, March, points and markets down an year-over-year in were sales those both basis Phoenix home in example, XX% XXX points was XXX while As in basis down occupancy and respectively.

focused the the spring we it's remain on Our navigating Keep changing leasing executing economic done capture teams environment job customers still to in early. season. very a strategies and new as have good through progress mind,

market couple year months geographic Oklahoma diversity. our emphasis focus next with our be XX%, our of Wilmington So to MSAs markets Sunbelt McAllen, strategic of which revenue north on key all continued full secondary generating and to Geographically, as growth. and City, reinforces and will continue outperform the growth Brownsville such

the growth, and believe many said, given to to markets of where handful from -- Vegas. a We Turning developers our new facing the are in muted supply will portfolio supply a that resulting that there including level, pressure near relatively wide environment. on headwinds midterm, Portland, are remain we're below Las supply, Phoenix That average feeling today.

The were off-market which out expectations, remains at quarter, wide these which these Brandon the to front, discussed buyer were his sheet between with in we remain focusing properties, XXX million Captive Brandon pipeline acquiring $XXX which structure, XX million. XX gap and billion. approximately the our the patient stands and acquisition financial Captive while of properties On results of is and competitive million. $X.X totaling to demonstrate turn now on balance discuss environment activity. pipeline will more transactions $XXX and of disciplined, We PRO on one call over further of provide detail transactions. of $XXX benefits our the These seller funded a transactions of now productive we properties with Captive equity, remarks. for pipeline, the approximately I'll our portfolio had acquisitions part and previously a totaling purchased

Brandon Togashi

and per a first to $X.XX interest The of X.X% store in XXXX, core in Thank growth primarily acquisitions minimal single expense the previewed expense decline digit quarter on X.X%, quarter the a share in our the despite was and we core which we quarter FFO as year elevated the Yesterday growth quarter X.X% property rate fundamentals sequential overall Dave. year-over-year XXXX versus last operating period. historic we given the off FFO prior had line share $X.X you, in period. environment, deceleration with rising of grew due million of the growth we year-over-year in high the represents of fourth favorable decrease fourth growth to call, Operating first XXXX, Property in was with year same as comp NOI highs. closer was in an taxes afternoon, over the X%. but the per tough of excluding prior volume come adjustments XX% year adjustments, the in acquisition prior in taxes reported for the of

items repairs tough growth increase other balanced comps and the maintenance. spend last the by midyear. in increase of We also a X% items, these year, increase in were line line and increase in by lower quarter payroll elevated and expense. start marketing so will in saw of an a to beginning These XX% a in we XX% Both in had second lap items partially utilities X%

inclusive acquisition. also was sheet. unsecured portfolio the January issued million with hedges. we Apart a notes conjunction to yield credit issued of X.X%. series stock to Turning The with in in recast B common stock five the effective a year we $XXX X.X effective facility, approximately $XX issued coupon quarter rate of balance repurchased the and Orlando of Subsequent shares an a previously to of face of preferred a our from Separately, of private has million us an impact the preferred million. of of end, of quarter X% million and we an announced coupon new X.XX% at during we $XXX pre-issue placement X.XX%, for Series

in our end, to maintaining next on We the the times access leverage debt of growth EBITDA organic acquisitions effect stable. Giving exposure, sources Rating the BBB+ variable rating leverage outstanding first our net couple from is Additionally, debt multiple to seasonality. in will leverage Agency XX% quarters and the maintain from year increases to due healthy typical X.X completed for decline profile balance sequentially mostly we was project of mid-March. subject rate of debt EBITDA, Kroll We're NSA's Bond primarily the and as at At our and committed affirmed conservative a up outlook approximately to slightly quarter $XXX quarter end raise, capital. credit million from to revolver.

Now moving on to XXXX guidance.

before get growth. outlook revisiting will we store so early, the still it's same mentioned, peak season wait further we into Dave leasing for revenue until As the

owners, renewal our market budget. front, On effective what very experienced same April X other that insurance the the completed and OpEx increases in property challenging we with the a double were cost roughly we had renewal property annual as

in put Thanks insurance items. is growth, our OpEx, can today. again which which ranges thus introduced with for component pressure found the can February, While We still call we be of a some where expense guidance will come our maintained release. relatively this on we property will small that earnings back joining in the controllable

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

Operator

with UBS. Our first Michael Instructions] [Operator from Goldsmith question comes

Michael Goldsmith

some Your call comments caution. imply from the the earnings release and today

view you quarter So a then elaborate the April? trends bit how and on can you in maybe little

Dave Cramer

you on Dave. this thanks and and for Thanks is the for joining question. call today, I being Michael, our appreciate Yes.

we of a as last comp times challenging as prepared And you we've times I listen about occupancy. quarter, sector. quarters just in two we comp the and for unprecedented remarks that have talked facing been to what great certainly to the our storage for off coming now we at self year's look think

really it quarter in what to were first were on the we spent of trying achieve lot business to and what first we quarter. so a accomplish is time we trends the looking in the And wanted

opinion, expected And February, occupancy be in rate. seasonal in you you reacted so coming then and trough would really street again a quarter, improvement we in our in improvement rates and trough in pretty occupancy rate And about We the saw saw contract we normal and which much saw expected. in in changes where we street really mid-quarter first the saw saw March and the seasonal as trend. in April

a in trend positive positive that that, our the to hoping reaction And was the from we're within a quarter, quarter see. seat, that so

the above really the portfolio continue general. top portfolio really, keep against funnel. the the customers Our Top Sunbelt of coming spend to well to of we perform outperforming it is our portfolio. were general dollars about throughout that had And they marketing how more the we as our states quarter, total made performed think outperformed active, MSA to funnel XX%, also in in in

thought the little bit activity we though, As we quarter rental was looked we wanted. at the less than a

funnel bit rental so not top was rates very overall, active so as with were conversion ended be to of we And was we funnel, on and activity we the quarter pretty a within we coming little out out thought enough thought wanted were particularly and as we light the of the played like side. Again, where much happy that strong April.

Michael Goldsmith

as my I'm put just of year the to And this trying start follow-up, context. into

other just where we In earlier guidance in is a it year? or in like June So beginning on up times of and meet when up because little there activities based May expectations compare to years maybe little or your the maybe up, the has to the the you're harder bit able year, earlier year late. through a it pressure softness it's you things and when of maybe the picks been kind rental in year, pick the if face meet catch

Dave Cramer

We're active July now yet. May season. leasing well. spring the very, do as We months June early and July, just it's are part have and very We sometimes entering are still think which of

based that as March in April, that's too that. we're 'XX far Like we on really occupancy little did and April closely. than it's said, 'XX we drive maybe about April, just pleased why a thought it watching an think haven't in gain in early improvement with we we over performance as we very or of lighter activity or couple trends. the pure XXXX just next was anymore We looked trends, think rental were be our So it and of to moves, March see might guidance. opportunity there's plenty XXXX I a April to to tell months

Operator

Markets. Our Juan next question from Capital is BMO with Sanabria

Juan Sanabria

to last wanted Just commentary. follow on that up

was your of softer One March is about back to peers kind but rebounded April talked normal. of and

importantly, just guess you're and And So on Xnd you the of can't on expect that, I the as May, just just just March from what curious the you you month-to-month that seeing and May? talk If curious, is would to perspective, as an comment in you what what's normally could I great. slope saw think not it's would in if and But of investor guidance? more upward trajectory guess, assumed be April maybe and May. steep on that I

Dave Cramer

rate of of we with saw contract generated Yes, in top in I'll happy improved the again, the saw and activity through marketing that and also slope Brandon the opportunities. backside improvement. the can touch We're and We on [piece] We happy [indiscernible] the jump of we funnel, other street deploy improvement were quarter the the first the rate The spend on the Certainly, with dollars April. that. it then improvement. question. around

There's and in month the a an you occupancy comment some a XXth would XXth XX, to in in I and where looking being are do we're a year of on Brandon, we aspect week early way in around There from a maybe Sunday. that. May. of days. last April I the May, at I there's basis It's think this the movement involved the It improvement on… really that's expect But and little than make didn't going mean rental up maybe some think, maybe doesn't to it's point where rental of end year at Saturday to not can't was to May. days activity softer the either. to we of come a jump this XX if get March want opportunity on was April, the

Brandon Togashi

while say doing to saw in asked But years. to. a thing things off pandemic to Michael spoke checks relates Juan, as No, we of high kind play asked response the as as is, what I lot the would coming only other in occupancies we're Dave you it as of there's what sanity what historic we're pre that well

are a than they in-place back were strategies, Our in 'XX. though, rate and 'XX lot stronger

So you have that dynamic well. as

to points reference we So also as normal but XXXX can that we a still frankly -- we're XXXX, of finding. element there's have new use an

Juan Sanabria

those, the on push where increases be increases, just pace the there been back able expected the have of to existing what's then you of through? on Any increased the sensitivity has to maybe how And rate the to you'd been customers, been helpful. step price customer would any receptivity you push commentary

Dave Cramer

been That's good a solid for for strength very been no. us, it's us. Honestly,

increase Our of very the from remains be. really no There's back change, to want right as it been as cadence we the it active been very has of constant and commentary customers through pandemic getting remains and there's rate no consumer. been amount and amount our they're where the

on stay of we've XX longest length hit move-outs in our that seen of months, is stay which history. Our the length

think that. I So of a around there's strength lot

our in-place And so right we're in now, at we're with where rent really confident changes.

Operator

is next with Our question Bank Jeff America. of from Spector

Jeff Spector

are quotes I in positive the say more I'd comments than back, call press release. read the today on stepping Just the the

can in Phoenix quotes, you some lighter in maybe based today's out you press into it like Are on where maybe supply? press So the specifically you was little you are or concern was the on release call the I was there's I When that to lighter weaker about say more because weakness in there where April, more -- national. a you think April. Vegas guess just talking markets and the highlighted dive figure maybe and bit? release and trying the it again

Dave Cramer

activity, that pressure markets Those certainly absolutely. on put

Phoenix housing one in because had really coming around coming, still We're our supply are supply changes -- coming. markets of hot have the You was also certainly new had market, which but have from off coming. they feeling supply MSAs. Portland, Vegas of pressure seen some some these largest they of

some clearly move volume markets. is that So of around those

other our have the called where some had and also one activity. very we Sunbelt, so another we Oklahoma good And markets, out in we City

just we changing due a it's more situation, national to that have would markets not economic affected conditions. some adversely say I it's So are do

Jeff Spector

then on, be I strategy. the And marketing follow-up would guess, my

is As strategy months, this 'XX into we're marketing of peak here leasing? some point what heading at into like the busy the May for

Dave Cramer

activity that the funnel. we keep to the want top make the at Certainly, sure we of

make And spend we're to pretty so we substantially have keeping certainly increased sure activity. marketing our that that

a tricky into are We as like and stronger the lot would rate really the pricing experiencing think markets convert is have customer rental and get little into not of reacting team the part, same a those and I all is them conversion you really we discounting markets opportunities. getting that the as funnel. from and to

the We enough the back shopping filling with rent, generating get 'XX. it's and happy find they're rate. touch better we're more 'XX right We're We're to customers more, to 'XX so formula and And trying points did opportunities are taking in generating. certainly we're opportunities. like think it to conversion

trying And all it varies to and the so in the what's figure want we're out markets to we by on really get best formula rentals. rates conversion market of our

Operator

is next Khanal Our Samir ISI. from with Evercore question

Samir Khanal

various components your Can pressure there? you're you versus more Difficulty] any provide seeing how than they the where I mean tracking [Technical are areas others? expectations,

Dave Cramer

first Samir, first the of can question. that, part of you missed I rehearse that part

Samir Khanal

was versus how on I areas line update they others? where the items, an the seeing expenses, than more your you're components, expectations, just pressure about tracking are any various asking

Brandon Togashi

with I our open, in the expectations. quarter, very in is mentioned as So first the much line

We So property number high a surprise us. were a growth on budget. going essentially not we digit knew is to tax single prior was year over our comp, be tough to

X%, last X%. it though full growth to first the year was quarter store for reminder, the year, for closer same a was As and even OpEx

mentioned I at So is there. the insurance the Everything open. comp a tough -- surprise that it's the just biggest

of closer to budgeted that XX to that month I earlier renewal the closer in in April And increase. X, feel remarks, going through December renewal we like XX% We increase, and in XX% we three you have the a see that be year-over-year something it's of year-over-year XXXX year's numbers. had fourth so impact a said April to this starts

but so the the tough since even for it, the we to so full downside range come the that's the X.X% be gave, QX we marketing the taxes even QX the last And to below toward biggest X%. total touch within Property of And think, case of that and Personnel, digit range, worst double comp, still our to year, that's year-over-year, high because a inclusive of maybe that, be R&M. call of I OpEx will call. is expect QX total in through end expect comps. the R&M, of OpEx then be we the

Samir Khanal

then announced my and get there We've next [Technical maybe of Difficulty] for questions the a does a difficult And the switching [Technical question, us just here. and getting [Technical Difficulty] an interest, here? little was your seen just subjects we've portfolio been how deal [Technical LSI bit Difficulty] help lot about Difficulty]

Brandon Togashi

choppy. you one really Samir, it say time, Can I'm please? it's sorry, more

Samir Khanal

So we've get look, about LSI a your and been we've lot announced seen deal questions portfolio. the getting of

does So there that the structure maybe for it a approved make your think through the just to interest us us potential event the was for how deal an get PRO in process? difficult remind help portfolio,

Dave Cramer

the very The lot to to and at doesn't remains of structure is structure that will strategies changes on in PRO it current the it. a the it our our very might PRO path structure PRO certainly But top the that's clear will are there's intact, on focused priority really obstacles structure a have modifications be if long for same superior term then intact, remain Sameer, very they and current value put things PROs shareholders, to itself, focused structure remain all. certainly Board the create invoice if there's mean in it. would in the transaction. and I all there

Operator

Keegan Our Wolfe question Carl with is Research. next from

Keegan Carl

your remarks range Dave, that. X% that up kind I on start the kind rates since mentioned in just know the a curious similar are of But you opening few I'm of street of questions the in year.

given you March? that March? to does this everyone And to rates kind then time last just compare that help street could also of So understand then flowed softness if us throughout the QX, first, year how in how experienced just and

Dave Cramer

can I month every tell improved wise, since rate we've you, Well, street January.

to to So April. January a we've February continual seen March, uptick February, March to

We're leasing And largest trying see can. last in that where we've such been It's that's compare was so we little Last a to April month-over-month saw ever the the season, I industry number. we go as to year. increase expected. I've was percent an the certainly you as to that spring into as you I the mean, and since increase, more as push to strongest we're strongest occupancy mean hard starting best obviously year the of have outsized we had power this hard year. pricing had activity.

of it down year tough April year, just about better was our really rates year. The growth this pace to X% still last portfolio comp. to So in say, last maybe a we street are in but 'XX look as than maybe again, March 'XX, and I back what at cycle. is again 'XX that I or would April, that core 'XX saw in in a similar -- was to

Keegan Carl

here, how side about multiple if the it's for guess forward? forward? I we mean be follow-up for I buybacks expectation there an a more things capital is currently looking of your going and from allocation where at, going should acquisition we transactions your less should And stays think

Brandon Togashi

we of been quarters and going us. the interest became opportunities be going like rates since cost few have to to in lot higher, a be, increase we're front We're of patient. be judicious in very the past started going about We're to capital to really very

are yes, the balanced the creative share we've value too preferred been appetite some It's and either. February, some issuing premium. equity bearing kind for on rate the high quarters. of deals repurchases. talked then, I at new some at fund acquisitions common -- debt helping think without not that of discounted we're stock. We're our of been to the interest And last in we series couple certainly ways sense Those we much this We we've had it way about of did in issued quite that these OP doing a acquisitions. in

it's been in moderation. think I

ways you we I so us be the think that quarters. these past can couple forward, same going in been to selective of have expect And

Operator

is question Green with Spenser Street. Allaway Next from

Spenser Allaway

as So know relationships, you anything acquire I your via can PRO remarks. in pipeline transaction on relates Captive But your market in you terms your just being of for share there right to to come cap guys deals I it marketed screen commented now, of the you know opening volume and what's broader your assets assets is on across rates? and tend competition

Dave Cramer

We're Certainly, has half tool been for transactions there. one we've type, time. us across still the gap Captive course. wide transactions, active. asset year and are a buyer's asset in There's our by about to third-party the From to first It XX% Those point it by opportunities price has of a and There's lot of think the those still our at been of between we're desk. great But Maybe less across expectations. this portfolios varies been over wise, seller's versus of market, volume opportunities seeing if portfolio you underwriting, been years. not single varies our a seeing out in just we've probably desk. certainly in XX% it aspects. more opportunities

different in We in and the right strategically been at are expectations just can just this future. seller point will it's for But because in the you, time. of we're I buying tell be patient buyer's more challenging sure ourselves opportunity the very making

Spenser Allaway

occupancy seen is then to, era? levels? are activities you to rate comment being much how given guys you promotional on on Specifically, being you've fall stuff to And pre-COVID say, where back some able right markets pre-COVID the let's side are relative now how the in

Dave Cramer

I Promotion and remains discounting to at historical not mean it's pre-COVID lows. still levels back yet.

better what are has on far, finding thus and than the a rate what discounting. little been bit think I teams is, working we're trigger

watch as focus. markets we markets to rates And been different in the what our reaction watch doing, so that's and are our

tricky. it's So certainly

a tell around little think and maybe that seen very pressure street dynamic. seen We've a put operators I movement been you, more it's rates. street chasing occupancy rate. on lot of I'd We've

asking of the get one the in and formula in street may to the ourselves best work and revenue market and our well not kind I looking So discounting other. work historical is to all climbing at to you, At tell point levers the may are try what back would just we working time, teams yet. on this averages the well is this on

Operator

next Our is from question Truist Kim Ki Securities. Bin with

Ki Bin Kim

quick one rates. street on a Just

You mentioned first year-over-year. X% April? or quarter for the down Was that

Dave Cramer

in first Ki was average the April of for X.X%. quarter $X, The the so first X.X% quarter, around Bin, was

Ki Bin Kim

And rates like XXXX how say, do to, let's those compare levels?

Dave Cramer

Still -- Brandon elevated that numbers… on

Brandon Togashi

Bin, look of Ki up I some we've that additions, street the at that mean period. you so of we for noise stores out subset had that strip year XX% rates period right time, new of when are of entire a around over four

So a compound you less and when little simple average X%, it. average

Ki Bin Kim

also realize your of geographically And I kind divided. PROs are

marketing can platforms. to how are we as soft have difficult at patch? kind all So noticing you question. a be or this own the might of schemes the it in somewhat PROs answer under next differences of performed pricing -- Are run run obviously, between their But PRO structure, a of PROs kind

Dave Cramer

and at some geography. levels. it, still performing just on it's markets touched very of Southeast you We've those think Florida I strong very, had the

done PROs have have the job, the have good a has given them occupancies, opportunity strong been And and they pricing. to that able so great they've

And drive doing so they're of they performance all markets. to can out those

We have cooling fundamentals. cooling or example, markets, PROs that housing Las challenge. facing market, a are different are Phoenix, Vegas which for Oversupplied in

working do it. do you're so significant not talk have seeing there's great take teams seeing really strategy on I What our or about different our And around occupancy the people is good marketing round job. where to swings talking what the they're on you're a they're peak connection up this to a pretty year is calls working constantly weekly, group stuff, operations are tight strategies and We And are the they ground. weekly about approach. having sitting and today a know last in

lots And get lot they've in color, can so we past. in really have on we good with that things of PROs good the we flavor. seen And get lots of dial a of history

job. think maximizing it from inhibits they're good doing So business, really I their don't anybody a

Ki Bin Kim

into than put a operators built to contracts the where the there? that if mechanisms more you little no, have but any is in of there answer bit some mechanism you I'm weaker I would could deem where of going Are type are mean in controls expected, NSA where, assume the you

Dave Cramer

things outside There the we're that's the and PRO of with it's something certainly go something should business mean in not realistic about are their very what. control, I agreement south the and

can very so track, they NSA defined to document documents. there's on that And having are maybe very of in is business, our are where the the get try their have well that certainly do like do mechanisms way business something to that. that, from guide and help we in if the getting insert mechanisms their to back we've we very, the that there allow close it to would us doing somebody something to years, and in never been fortunate been And and but it's then

Brandon Togashi

is and the to in more an transaction Monday, the that basis. just thing, show the the same PROs I opportunity Monday. Ki the review and our on acquisition pace PROs reporting and get operations, we an motivator meetings use it access week-to-week we Dave practical We And analytics discuss, as do, Oftentimes, where that the management this share But other an typically, the mean, that distributions biggest do. example, talk frankly, to with every tools Bin, performance. SP Tammy, a A screen fundamentals was have slower, every have environment PROs is on post that's that as deals. just we have information. visual on the I the we like talk talk

Operator

Citi. next is with Our from question Smedes Rose

Smedes Rose

how any was to maybe the changes just year-over-year seen that levels? you've payments compares or late of nonpayments I pre-pandemic kind in and of wondering amount if

Dave Cramer

We've in actually improvement an bad seen debt.

the the season. leasing mentioned, has spring the schedule we ready very through the couple back work the portfolio team delinquencies as getting hard debt improved So and last has But tenants. with of over months. for working of our came bad our actually We and delinquency

many any in no the people how delight of real in so And schedule. delinquent cycle are delinquency change or

is strength still consistent from strong. consumer there, our really days really, amount and is we've pleased now of been made and -- payments again, late which right of very So

Smedes Rose

find portfolio. tends rates have customer comes strategies? fair autonomy a anything customer you amount like of rate then a is to initial stay But And maybe guess in who a didn't lower across particularly with there do speak there you to when owned can longer that the a and I or potential to the asking PROs low that relative you

Dave Cramer

We haven't the assertive. difference noticed more in. a we're moved between real rate large when Certainly, rental they

foothold and getting that to mean, you're no not to a find a street to -- get you're where activity, I to necessarily because just We're different but you're in-place market right? now. first lower XX street the is if percentages seen similar, the units a out rate entry you street staying asking stronger better off then changing our a right we're street through driving rate seem haven't bat much be to rate. changes driving a probably And look increase on difference. the us The rental bases rate. pretty trying we it but I destroy rate, keep you're buckets getting of market rental be our to If the right are very market are in -- whether XX mind, have trying customer rate, there real at at people either. our is are not not similar, We're customers, right the rent they're -- the the running the is matter it's

grow we're So slashing that. just not doing rates street occupancy, to not we're XX%

Operator

Morgan is next from with Stanley. Our question Ronald Kamdem

Ronald Kamdem

issuance ones. about and quick issue issuance? preferred, using that the debt thinking could the of call we I about where make Maybe talk do environment, the can saw could preferred you more you this in funding between and couple you're how see debt preferred how and in a Just you just quarter.

Brandon Togashi

of Yes, drifted was getting yield PRO pleased remarks, we're that on to had When in pieces total to a Ronald, that over the the some just through with of up. talked And way cost we And I but coupon say the equity generally, series time, very the a we right cited sources or roughly transaction the ownership different with the X%, a bit and did open issuance as parts, about the then the of alternative the because sources equity. that's now. family more on work the that of our stood a the inaugural to preferred first that Very uses. little complexities at for really X.X% given lot and an effective portfolio that capital certainly, of area. opening side balance we was in on capital all PRO of dynamics, working Orlando that alternative including than lot good pleased more in way pricing little We doing of new with our last long their stack. of moving just our time of represented the preferreds of a back of our preferreds it common call, bit a down perhaps in X% and XXXX are

will add, capital what X% looking for. of extent that, us a the I up stack So is closer to X.X%, think put seller this to back and the there's suits to room that

Ronald Kamdem

street peak you what how the of just you sort that maybe would trends is of, by strengthening? into really heading strengthen you're you've you as this seen would seeing season are then I in of season? would thought have think demand sort of is, spend question April. that to to rates coming leasing -- question year I And to still the can about come, start leasing other now. and funnel Just -- compare into down touch And years? you is just marketing have peak and see I talked is, the on top so think, sort if the And X% up about the that

Dave Cramer

certainly spend of a from perspective, So is top the creating funnel opportunities. the

pleased that and areas The And target drive out the we with can and been so we're has target fact specific that. go markets good. activity and top funnel of

be improved or earlier, beginning we're bit you have a work we and rates that's to focused rate, rental them function through to flow -- concession what a that's way the see as since of we'd your and better As funnel, of year. could that. we the little through function like on the of a conversion rate. as There the are Street certain talked things

year's are for to last and street we is down it year's last -- since third through us as the of just comp. very, last up quarter year. challenging second And very and X% comp was X% January. quarter end So rates pricing very the had ability in the very, The remains occupancy, tremendous as far

up pleased we're so year that is rate And this street our X%.

improve, seen question. answer have we it So to your

Ronald Kamdem

revenue just one year? but is and occupancy, saw so back is obviously year, where last ending guys the trends guidance baking not half you the the then are the what for for And in occupancy of the you

Dave Cramer

may trends. very look you early 'XX our 'XX similar and what would have in in to It seen

the trail if the trough point February, might the year we're into in XXX look season off curve this we’d really -- this in the half come see peak the basis is and year. of occupancy of So and in towards back going a XXX to year how year the we July end slope then at

Operator

Our next KeyBanc. question with is from Todd Thomas

Unidentified Analyst

starts opening more about impact your supply, follow on? I on or Dave, is outlook Thomas. of comments in an And XXXX then Todd and deliveries you decreasing? around up to the XXXX delayed for wanted is more remarks. just on that that the does it some supply is of of have A.J. your It's seeing Are or

Dave Cramer

was What new -- hasn't is really and that The piece that and if in we're really seeing slowing. is starts cycle being built, the so really, completed, it are it's been continuing.

we seeing we're not that is the of So what already it's started, at some conclusion using that probably see. it going it’s be started, to kind hasn't the of look is to data starting been you're

really be as about through you the here so of because been year. rest or And beyond us the XXXX built we'll that has helps cycling think really that it, and of this stuff being completed,

of decline most we're it growth versus And develop, were takes that. uncertainty projects can the years markets in a long I drive a and so to are these supply around you time. underwriting hitting kind to remain. are market about of they going ago. new get expensive our headwinds think approved very to those when so seeing And they two happy rate were today what trying There's some what It's

of right land they're anecdotally, a you, lot now looking tell can crossing where desk CO our to there's deal I that have they So a sell.

not to looking so it. build sell And they're it, looking to they're

Unidentified Analyst

then I And could just up. follow if

stores little from are those provide of promotions, in rates? the little for are seeing Portland, so markets the that are color? stores, context also you new pressure cutting Can Phoenix, they a you a just the in using Vegas, supply. So nonstabilized being you around Can were they nonstabilized mentioned provide just you more how operators -- the

Dave Cramer

right tell predominantly some certainly we've far they're fill There's rental say now. but driver us They're the discounting get -- team certainly rates… saying trying that more assertive there. would their I super as rate on I is I'm up. rate there's as out through out, being seen rate our to about not been growth and -- -- it's think would growth driving occupancy

Operator

is Golladay next Wes Our Baird. from with question

Wes Golladay

like the to in peak got calling when you the pressure delivery of time follow-up guess just I for supply that supply context are lease XXXX, we a up? take I this question. peak to year or in

Dave Cramer

there’ll on I’d deliveries. I on think deliveries [indiscernible] that down. the the deliveries way their be the seen -- I say we've mean, are from --

Wes Golladay

of a typical So it? bit pressure maybe little a a so maybe in good up, maybe at it year, like at was -- a look lease would to year next be way more half the least front to

Dave Cramer

down COVID property. lease-up then about I mean to way appropriate look changed probably interesting things months it. I at the it XX And versus to think months. the old use that's up you're talking facilities. these was study maybe on to I'll days, XX during Certainly, -- The fill to in got word. it a have that curve

back old be days think and I a lot heading we're longer. to more where is fill the So towards up going

Wes Golladay

It's steep bit uncertain? little understand the is how would pretty you part. taking time, more you're rate macro micro my time, at debt at do the discount, But even the that be, shares? then bit same I leverage question buying more back final and when the at little a a and same And on the this variable point balance then

Brandon Togashi

with value. done a It's I all discussion, on side. say, would healthy of our view long a generated It's term

look leverage And about spread bid-ask capital spoke light at recently, assets, individual the easy pretty easier should value to shareholders long relative especially what concerns prospects think to we that have real point, quantify, and an offer diversified gives make the options. of alternative deployment I been Dave And our that most in sellers earlier to that's buyers evaluations. what or between the your to so say, balance growth to we portfolio we keep and quantifiable, we of is with But to in to investment company on term.

X.X. the of increase from I flat were X spoke that at our a went grow on in a into easily it leverage we're QX, we to the QX at XX/XX, to with buyback, attribute growth. times tenth turn that the I but to so organic call, to And to and going

the had So lack all that's of itself that, was that really that's other quickly. kind the quarters. sort seasonality look we've couple at And last way external increase then of of we turn two pretty the and a of the tenths the growth

So that with seasonality as changing down will well. come

Operator

Our Spenser next with Allaway question Green Street. from comes

Spenser Allaway

on to I bit would obviously, controls, provide et apologize just I age, on assets gave versus any helpful? whether commentary more, the the that the guys in really would you breakout. any state units, color any about quarter? But was climate multi, one and more this. color you But little single a cetera, of that acquired appealing you additional Just assets, be on missed XX know, if be what able these the story I

Dave Cramer

of of those Orlando the market. those, The majority in XX were

of a pipeline. Captive out add So a an is their amount market to XX significant the feel of where of that top we operator here's can assets

so lot the -- around we over going Orlando. bought and Orlando, Strategically, and cap, by we XX for there of was metrics like good X individually pretty of line. in -- We There's bring a like we tough time top people putting we were lot a top market there a together these a of owned cap, right we because finish a each was one a XX for the everything PRO, just at transition So that's portfolio about on market, like was market. there. get of a and for that's a the the it then X this like it lot think price we

XX lot nonclimate So of probably in age well Orlando the and be probably you where to part mostly is sense assets storages a there. in are are say for -- XXs, wouldn't The climate those would on in mixture the positioned XX, I'd The assets, it single us. today. story, made average is average assets of there building a the age right be of

positioned I MSA. good and So of pluses the mean there's they're where lot in Orlando portfolio this in

Spenser Allaway

was CapEx then much with there And deferred underwritten those assets?

Dave Cramer

so really The job really there maintaining them assets the a a done ownership, a previous PRO They've in has taking well of good care wasn't done just well and them and good positioned. lot. to job keeping up standard

Operator

for now turn Cramer to closing David end the over call of I'd the comments. session. reached have to back question-and-answer the We like

Dave Cramer

pleased all the NSA you you results industry NSA. Having been different moving in well for your years, once the are storage self that the positioned XX for right remain in Thank quarter, with continued manage again to the environments. the We remind through I'll our and in interest operating direction. the economic with particular, in for sector trends

Operator

concludes This today's conference.

You your your disconnect may lines and for we time at thank this participation. you

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