National Storage Affiliates Trust (NSA) 2 Nov 232023 Q3 Earnings call transcript

Company Profile

Participants

George Hoglund	executive
David Cramer	executive
Brandon Togashi	executive
Michael Goldsmith	analyst
Juan Sanabria	analyst
Bennett Rose	analyst
Jeffrey Spector	analyst
Samir Khanal	analyst
Todd Thomas	analyst
Keegan Carl	analyst
Spenser Allaway	analyst
Ronald Kamdem	analyst
Eric Luebchow	analyst
Ki Bin Kim	analyst

Call transcript

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Operator

Greetings. Welcome to National Storage Affiliation Third Quarter 2023 conference call. [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. Thank you. Mr. begin. may you Hoglund,

George Hoglund

thank XXXX joining National Earnings Trust. to the Storage today Third Quarter Conference you like us for for Affiliates We'd Call of

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

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

detail press the Relations supplemental release distributed our we be afternoon, may our additional website section at Investor to yesterday package nationalstorageaffiliates.com. furnished found with addition on our the which results, In in on

On from update November that or after circumstances today's The date and revise changing of management's remarks XXXX. no forward-looking assumes X, risks results estimates forward-looking uncertainties statements because actual forward-looking your or and may answers projected management's company call, The any may company market conference contain other conditions questions materially to statement. to prepared of are obligation and those call. today, subject cautions of in that represent this to any as the statements differ

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

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

over Dave. call turn will I the to now

David Cramer

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

on third business. of everyday tackling our as blocking our The expectations we continue in largely the to execute quarter was with line and

we narrowing delta. year, continues the competitive patterns, seasonal dynamics the half to Our and follow environment. seasonality of job typical teams back did navigating great occupancy are the a In year-over-year occupancy the the of and

completion management consumer There the several healthy this net were items strategies. revenue execute allowing our quarter, stable, to including our private to placement. of $XXX highlight Our positive us on million remains and

that raise that transaction. execution Treasury in repriced job so have today than timing us. we offering, rates a did the capital team higher behind the to Our are of and great pleased we're

to also of pipeline, pleased outside our pipeline execute Captive many and our REIT. illustrates We PRO our one by strengths market exposure our performance. continue continue from replenish structure. We of with our approach on that making This acquisitions the of to acquisitions the while geographic secondary remain

MSAs portfolio average revenue growth. outside to the Our top XX the outperform continue in

pressuring However, very in thus facing market are We're interest which headwinds, transitions. slowing acquisition muted we near-term competitive high the a including rates, street consumer rates. which is customer has environment, housing

in parts hurricane-driven of due Florida last We comps demand have year. to challenging

with dealing will also these We're elevated In people, meantime, a confidence Vegas. in new which said, of platforms. to That gives process eventually control. Atlanta, the focus to things we continue we few select on for and Las our can like ease, the me all in regards our [indiscernible] outlook supply in markets NSA. Phoenix challenges and efforts

acquisition Our marketing great adjusting and maximizing by conversions front-end rental customer did pricing. job teams spend

that we're utilize Our confident technology forward. continue results today going the maximize ECRI making AI our to team continues program. investments I'm our to revenue management will that enhance improved to in technology

sales We portfolio joint and optimization are progress to also encouraged date generating equity strategic capital noncore around through by dialogue involving we're ventures, our the asset overall portfolio programmatic recapitalizations. and

the few We next an on quarters. initiatives expect provide over to these update

favorable, healthy The outlook the few of consumer The important A forward. stable. deliveries that long-term and the benefit new sector XX% us I of attributes over market's to by think to keep our it's sight is positive and attractiveness are by will not XXXX. supply this in remains to expected and lose things mind. going drop

in newer to enhance M&A above remained averages. to positioned in to initiatives expense line with will well remains activity allowing have continue track changing stay of Technology and within strong long-term our revenue to sector debt length pre-pandemic the Consumer levels. bad environments. is performance NSA ability our future. to strategies, well a quickly us We react management the believe to customers improve

on years, that during FFO sector's last growth I strong reflect and the our point our over same-store performance very out to X As results. over are strong want frame, average XX%, increased was X%, the that I share per NOI core time both

over results. financial discuss I'll now to our turn the call to Brandon

Brandon Togashi

represents of same-store a Thank for was you, core per of XXXX, growth interest was declining elevated FFO we due year-over-year points. quarter X.X% primarily period. adjusted reported growth afternoon, the despite decline third prior The basis flat, over XX just as expense NOI $X.XX EBITDA year to decrease share Dave. Yesterday of X.X% in the which essentially

by at below declined We on approximately driven points growth basis XX.X% X.X% insurance of XXX on last XXX competition in quarter. elevated cost XXX also offset elevated due October renewal remain policy basis by year-over-year which a April down average prior the delivered X.X%. is quarter X.X%. decline to a third X%, of points had the X.X% positive down contract occupancy in were tough offset the rate X. Occupancy expense, revenue basis that basis we customers ended partially point savings year. basis, during same-store from a comp at which points year-over-year. by due Similarly, will XX.X%, increased as and quarter Payroll QX growth to as finished year XXX occupancy growth for and were in period, well These the remain Expense down while from was marketing the expenses property taxes

continue will where on focus We minimizing our expenses controllable to we can.

portfolio facilities regards of we captive term, as out the In are near quarter the mostly our pipeline. acquisitions our in we Dave and acquisitions. alluded to, focused and on totaling optimizing the October, On front, X through remain patient acquired million, $XX will during to

balance Turning to the sheet.

million of under encouraged During year. We're able volume we last our the repurchased the we plan Board established common shares the were $XXX to X.X for third by quarter, execution million. achieve repurchase

opportunity. for and outlook represent very NSA long-term believe the the attractive levels trading in confident are current We investment a

$XXX a of maturity tranches senior across weighted to of X.X notes X a years. issued unsecured end, a average million of Subsequent in placement weighted private we X.XX% with coupon average quarter and

to the recent pleased XX than transaction higher which points We are in increase have are when basis deal. treasury yields, priced we to completed prior XX approximately this our to

is rate, of Today, to revolver. mostly debt related approximately variable XX% our total

Going our range EBITDA, will the of X.Xx was end, forward, to debt of we leverage floating free take our at which quarter reduce naturally line to X.Xx. credit, the slightly X.X our At further capacity end some net our target and within second from on X.Xx to up steps quarter will of rate exposure. up

for with performance in Results well. to October consistent expectations line our Now moving track on generally were to and continues guidance. in as QX

As guidance core operating such, ranges the for we of as The same-store of share. growth of are growth maintained per of our X.XX%; performance X%; our release earnings X.XX%; of and and as per in growth full same-store outlined $X.XX. same-store midpoints ranges NOI follows: year share expense full revenue year guidance FFO same-store FFO core

guidance the for Our normal occupancy seasonality, of year. would modest a based the and of street of amount a which include rates balance downward on continuation is movement in

growth quarter guidance, of At the would same-store midpoint revenue be year-over-year. in fourth negative the our

what performance needs proven base its ability result of that to the with revenue management near-term remarks, off is his great over over demand [ the Dave self-storage a of echo nimble headwinds strategies. is resilience time emphasized years, record I'll has ] this the the in coming property past with and few operators While and type be

Thanks again our joining for today. call

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

Operator

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

Michael Goldsmith

more metrics though than It was deceleration modest sequential the of operating over been seems in as couple the last quarters. they've

of getting And environment kind think the of improving the trend some moved So are the do the you had worst the function past of continue the some slightly? comparisons is going step-downs that in of Is forward steps of then you've as should it? you've more to flattish larger a be that of larger past easier? some

David Cramer

Michael, for being question. the on Thanks, Dave. Thanks the call. Thanks it's for

you're how looking think it. right I in you're at

as really we are the kind and the year-over-year street the -- those comps go of of as of through third came year-over-year quarter, peak through points. rate toughest Our as us we was September high behind occupancy far really pinnacle as

And also markets and of little easier you'll on rates lot so a in bit a little the head bit see us around little less as some starting in our and out comps, quarter, a our of level into fourth rates we we're street to street markets. have a volatility

we're in year-over-year. having easier tighten the spreads So comp little fourth and will quarter, those

it's customers the And tenant that's revenue we are good our And a we're working job management how street due quarter the last really with when looking how treating at really and third we held do movement looking have practices year, the little us to really with really we're on around the how existing -- that a we done the longer rates, and had street rates. teams base fact lowering our at today. that that

markets today, rates demand been success have supply. some we have. of the allowing around to where still ratios. where some supply good of the that really we've platforms existing has some had really because around are markets we've technology we around and pressure volatile on street execution base work improved some us customer Certainly, There's there's that what more And that that and

that. so to had And react to we've

those of But some supply the located, diversification rate where things. some pretty our effects had believe the it's whole, success on and moderating a we've good portfolio, and we of of competition

Michael Goldsmith

to issued? consider you OP Can you given this? a question would where just they're in priced or And are about shares, related for then talk the back to use And going source buying is the some the repurchases. units the little -- a of this share offset And you my is this consider funding would continuing lever true invest you've forward? follow-up these to

David Cramer

Yes.

again, here question. So the jump can and thanks I'll Brandon it. in And in for start

Our at adding purchase. belief it's company great and pretty currently back. stock think our a purchasing much a our fulfill it's value, we were the our our in us, Board in we we shareholder in over to a repurchase and -- that where and us for our today, ago and is our belief trading what approved stock belief Where valued opportunity at is commitment fulfill our happy for year has think great stock shares to

accomplish our future. part might strategic that sale evaluating a about our at talked think we're trying about into our portfolio we you recapitalize at call if noncore, we're some evaluating of looking look is our where perspective We And JVs around portfolio. and where From portfolio in some initiatives at our and initiatives to We're opportunities the with of around last we're optimization, we're on nonstrategic JV. portfolio optimizing assets. stores and you what

going strategy done want operate really team very how we operate, thinking good And to into locations has some thoughtful about a a forward. team where to want about would really job and bottom we good our to studying don't identifying portfolio assets maybe fit the job, that so top we've done And sale. don't the the X whether on and The definitive recapitalization we've has been fit working vigorously that where these are been but initiatives. tell pieces working of job much far the team more it categories, with some can pleased to has I've have done be of report as identifying and that, I And in we as a plan. of those or you, made. I kind progress great and

from And pleased so that aspect of it. I'm

Brandon Togashi

our And with Yes. is I been units question. offset, thing really, it's Brandon. this equity in our mean, to this issued equity equity add towards subordinated said repurchases, only on what has I I mean we've is the year this your OP other and as weighted issued year, not preferred Michael, you we've PROs. would VLP preferred necessarily the the

Now of lot quickly very said 'XX. in parts early grew a that, having we 'XX,

we of levels equity common than we so -- during now. the can And higher issued time some at that repurchase was it what that equity

goes question. the your just response So part that's math in thing that's that only But benefit other would the certainly I the into obvious say it. of and to

think important there's spoke what in to terms is what's to Dave a our of strategy multi-quarter execution that I here.

the in in next saw with, quarters. the quarter, we're to more you what third of but come couple So very pleased

Operator

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

Juan Sanabria

the the quarter throughout trended Just on hoping little basis. the given it's and how have of trends October still where And a about pretty range, a wide, most feel bit -- you only within quarter, you that, for street provide anything left. third year-over-year an as update part comfortable could we a same-store talk rate

fantastic. of you be would if kind So include in that that answer, the can

Brandon Togashi

Yes. Juan, this is Brandon.

gave year-over-year So finish we were to that the the for quarter, down we being third those talked year-over-year. we street as XX% rates similar and August update about

we what And pretty late Dave QX. and a said that basis so that down started to on delta move year-over-year year, held in and That in last earlier steady to has a little goes September. really that bit, QX early rates compressed

digits. easier. hitting But comp that so negative double slightly gets they're still that And we're

right. we of terms predict. time where been process in we to don't thought kind guidance, And in past of in lot we year there frankly, The just difficult November. The August. you're the revised of guidance revised whenever in it then micro August, in more we've spend it whole kept this tweaking the And ranges has to a is

And had August. what you we February introduced in revise and saw that based in we on to what

think is I year lighter the that's most It we I'd growth full So on for is February, around than the mean quarter start historically that we forward, example, introduced it's little unlikely. as for midpoint comfortable in going that accelerating characterize that our in we've -- Where rev the we're then introduced X.X% a 'XX our third what the including I from of quarter. had possible when at to guidance the year. are range range. high certainly of imply would And fourth the the revenue, guide. end a

the So pool. you I would all to really NOI OpEx in the same-store range midpoint fronts, on of the Rev, and guide

Juan Sanabria

you platform then last of And had you've some of rapid the guys systems and given reinvesting the growth in the years. Great. are over the of couple kind

So 'XX, in growth about again think about we curious, how should as to we G&A as think reinvest the you business? just start

Brandon Togashi

We're specifically are but Yes, speak that's 'XX, a to not certainly investments. to question. good prepared making we too

'XX. we've Some of been those throughout yes, making investments,

sure. We've side. There's opportunities. There's been staff. been are So activity had Those for who the to that's in opportunities investments personnel there's baked in. our the space, Frankly, our given add hired kind experience M&A folks on of already storage technology team. investments

those But of runs then Some given investments some over capitalized, it FFO. through that's impactful still and basis. you're it's through a depreciated and to flow corporate out only of costs does spreading that that through gets multiyear G&A, our

of So tremendous like movers needle like I terms in wouldn't costs. one, as characterize those investments, G&A

line they're needle terms that the think noteworthy in of But movers it's not ROI just item, in G&A can the terms I provide. super they a delta. of

Operator

question next Citi. with Rose is Our from Smedes

Bennett Rose

that rates? wanted there about there's maximize is on high pre-pandemic. way to I occupancy maybe maintain of level more I are now seem change but in you what's kind to a change XX% being reasons. you ask sort in make the the bit you're you would achieve? of be the versus to occupancies where the everyone any think trying about mean revenue or to like right I'm occupancies going just little the of get XXs if renters over I is And or unit, change thinking others -- what's that various to and were aggressive housing to for just any in that occupancy per anything the back market wondering, with way kind is market the you

David Cramer

does discounting to of rate lot business. one balance that and fit of the really between transition muted of team Smedes, a street, drivers lack the our Thanks occupancy. that's certainly, think today. them And doing certainly for market over and on into that's and our of and Certainly, team that has of in expense being but we spend a the how really rent that of trying demand to revenue is the be to tenants great discount has them, on question. for source really, how years entry housing changed the provided the we how how model. have is balance good does What asking between us. one a the And marketing affect I of to how rate customer. between occupancy and much at chase value lifetime want the aggressive

pleased per the been calmer revenue we street our our And rate look that little if to you I'm foothold very trying finding annualized square number we're And foot rent growth has to drive think at around discount strong. movement street and rate want. I a balance occupancy the around

react would been And We what supply to to it's harder, Phoenix a very little but where like volatile a a able found really actually been good we and foothold off. I new occupancy had activity rate the some Atlanta. in Vegas lot to markets we say markets where so hold leveling we've street of and probably have and is have like

your a -- point, And so to it's balance.

probably revenue I occupancy balanced more path and little discount. going returning heritage, at to going bit to all think a and we're rates our we're necessarily costs. not our chase We're occupancy find balance try where with to to

Bennett Rose

less then or going on more same ECRIs you're the And to or the just follow Okay. either the that. in any that about moderate -- frequent mean, forward, to degree? up I thinking way same change

David Cramer

we've that's business stable. it of years, the level one of increase, just quantity our of That the revenue for our been been healthy. seeing maintain program. of is of able customer management to side They're and as been in and and that a behavior remains business, our our me, We've to not base cadence and to silver because change any -- linings customer lot we're of increase

so attracting of existing market, top funnel housing and housing there. base because of the muted success And we've is had bit little not maybe slowing great consumer or a very market as healthy, we're from the the many while the in

Operator

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

Jeffrey Spector

the you third the most close had on quarter occupancy, as And again, versus gap peers lost have again, peers. Back as the of the your since much has that 'XX.

trying portfolio versus are certain rate think it on strategy, your that that just markets the versus about others? comments is occupancy again, or to and So on -- the weighing maybe

David Cramer

and and We question farther thanks fall. lot for had to good thought a here. being Good

and which back 'XX down in in where to during now 'XX it. really levels, you If to coming close occupancy started we're we're study happened what as COVID, we our

our the revenue look look most that we're supply-demand. tough at can -- And the peer we're at had generates about at of any an of the run it's them. off, that's trying result we amount the we're any at the a that we've where you're most And for had fall level occupancy equilibrium. We We think today, of finding occupancy seeing. market that to group, think still I if spread you mean our where We gain comp. look of portfolio of obviously. strive I maximum positioned

occupancy find into working do we optimize the to as going reattribute the those between how We just sizes approach on Is so on long sure look we are we certainly to last bit a the opportunities of how units, to mix right at and levels think try market to better XX% run balance versus I down call unit talked we what right normal have over back call. cycle discount they? change down there's for it we our to we we there right do think that. as our little we I at? And in us properties It's time, to full forward, unit patterns, all would of for fill X I locations want as make strategically, looking are they're are our our to a mix portfolio, unit up. want

start cycle year-over-year. some the think And to we what comp of that spread will that looks through occupancy group quarter, so like to peer as and I last tighten this

Jeffrey Spector

it share share And balancing at Your the be where higher the feels an how appreciate a environment buybacks. it company definitely peers time, -- Okay. leverage? than it versus buybacks, but debt. just are the like the then same leverage, the reducing should you I is

balancing you are X? how So those

Brandon Togashi

goes execution. my good of is us, a mind Jeff, top for multi-quarter this to earlier question. about It's and comment obviously that back Yes,

core to all to our we So our strategies done is we're going initiatives day, of to, the is that or endeavored with I right? these spoken intent equal on leverage at it even they've to before be these what think immediate set was when the of end execute lower,

pace when more and up and we're position annual doing we conditions an can to so eye same for conducive, are debt position, with towards of everything we to enjoyed it that that more fund ultimately have so several that ourselves address growth best coming capital market at also that And And in years. our address now is putting liquidity grow capital those the the a annual we maturities externally needs. the kind creating

Operator

Our next ISI. Samir with question Evercore is from Khanal

Samir Khanal

but Dave, on to through the of how that moderated year? getting question, much ECRI maybe sort -- back the has

David Cramer

Samir. It's a good question,

come pushing the in a on in probably would couple I us, we through summer, of really, were the a Frequency certainly the For increase. really really, rate but last high. the summer. months, of elevated say up amount really We hard bit little

And rate changed, little a last but so hasn't it's Cadence hasn't Frequency increases. on slightly couple the of we've in months. bit of in moderated the come top changed. percentages off

a And function processed a of we've summer. of tenants some got lot the that's of through

that got piece And We so front it. of that was great. in out of

of look well to is it better We're units Obviously, but understand still at we're and execute really the position you, up react able above to opening in some and I with sight. to those I'm market And line were conditions technology that things, -- will and really are in. conditions market at we're you as tell pleased we continue pre-pandemic trends quicker, we're the have quicker. the of levels

Samir Khanal

Got growth, about few sort those NOI how growth, Okay. switching then, are thinking mean, you of of underwriting you like transaction of acquired market, it the revenue properties? assets. maybe a And the I guess, I looks the it.

David Cramer

CAFD to Certainly, tap another we're able pipeline. Yes, good question. the

up -- So whether are built a it's as seasoning be also efficiencies. next revenue year, we in but have year we stores adding the look them our of them markets growth, on far assets. up. of at you were have where as of through challenging we're sight Certainly operational them going to a and those for or they Obviously, good filling had line a worked years, PROs process number

assets to moving looking, I and X that we're we've some of around forward it around you We thinking those. we'll still we're that caps We perspective, of you forward from have And cap around out But it. upside a in continue if believe on And right revenue in, those it. brought year way, today. expectations we're a most how through grow think to certainly and our bringing them assets there's looking think look underwriting at. as success we'll think forward, really yes, growth on we moderated then as the and about X about grow

how I are hard today. fill-up contributes unless into underwrite of the revenue properties something not think view. conditions it I buying that It's to amount seasoning an people also that a to on or point some tremendous overall hope left has market of that's of growth, gone from asset helps.

Operator

Our next question is from Todd Thomas with KeyBanc Capital Markets.

Todd Thomas

regard you Brandon, continuing buy I I execution the to just was. as that do you a on what message does Dave, the you with that buybacks, so the wasn't term? think -- back characterized in a multi-quarter pause to bit here it here? clear mean near anticipate Or stock

term, -- the you're or expecting EBITDA buybacks, and X.Xx near just and but in above the plans you're is the to recap it like NOI of growth And to that the near-term the between or you're dispositions level additional some that that reduce it leverage, leverage leverage sounds alluding negative possible rises forecasting?

Brandon Togashi

Yes, try I'll through you out say Todd, me good tell you'll I the ones threw if to work them there. all and questions.

said execution. multi-quarter a to, us, is will things was about source we So when in did encompassing, that strategies that repurchases post in Dave October, share I that the was the debt the be of those -- all definitely my referring comment optimization for of meaning spoke of quarter all portfolio did quarter, what we end to capital raise all execution the multi-quarter I

for of where things the all when have about together, back you Jeff's have back And dollar current only those of leverage X.Xx. in range of think think million toward $XX to the see spring on itself question, comfort you'll a repurchases, our And wrap X.Xx midpoint I speaks QX the in of execution so conviction to lot that's The program. We the we volume terms left share I

it Board. with your and could it. refresh do we We -- about as something will when the possibility, will do there, that disclose a more? But we it's a have would to team something talk program question, management be that to So we and and we remains that we'll our obviously

as that fourth And But sure, hold with a quarter by leverage would our it forward would you think in ticks typical would about I whether business, execution February, time have steady. from the that are the December seasonality others number other in hope everything good quarter, seasonality it's just up. that in. that right these or we're I quarter our we would year-end, you third if imply that on update talking would for the again think and roll XX bring of in I fourth you look, post you strategies

Todd Thomas

little you be with that of you And much Okay. I color, how guess sticking little recapitalize. a or bit. maybe sell Can looking the provide that a end, book more bit to portfolio might

the or portfolio, about growth accomplish? you of else to think should we portfolio be the or is focused how recap like focused where Sounds in ventures what something on of I some strategy might optimization, altogether? perhaps just the looking Is operate? landscape mean, on what dispositions strategy geographic the the just -- joint the table, terms footprint and on And competitive outright dispositions. of the Or the to continue there. sort that

David Cramer

for you really, about of continue if 'XX by you're a one question. lot color tell at give had sizable What portfolios. there. we've on years And able Thanks to size. 'XX, we the since is and Sure, about not were tremendous few IPO. still look growth of I'm Yes. right a Todd. to will whole number the working you, Obviously, going of through we're I a factors

a want to when Those you that buy maybe where do assets. And go. have certainly, strategically you portfolios term you portfolio, not long fit

ask to an I tell at are the positioned? what they portfolio -- the we at rule so really we yourself, top did XX-XX look have synergies? that would a assets you, of And look and example, if we where ask And ourselves, you is XX% bottom. we Do for

it it to country that have owning we we synergies? like as multiple have able the factors the Have growth? far a the identified list not the grown at we to demographics position there rent for analyzing in had we improve long-term we dispositions. in not Are one can of whether of at a operation the we're assets not look where you focused did market like singles, Are and Do good as look demographics, are the markets. there, properties? on? And ourselves is Do And markets area. candidates grow? we or those have long asking good we'd there product to be We're happy grow term All with the these we continue team doubles ability across job just out do as markets. we we might something our do -- geographically

JV a you sale I mean where there. look and aspect for of you think you From it, are the assets. go some a at to want plan, markets. of real out has having delever disposition really from of that job portfolio and done there approach that in on good and we look stores team a the particular maybe of execute and discussions opportunities bit recapitalization were you is great to working little As risk different we have --

reinfuse or opportunity to provide it a term, back can that You those advantage them. and like Things properties the performance infuse capital that properties certainly improve an out look gives of but long-term at to maybe go opportunities properties, we those and that, want where properties. own for and opportunity relook we kind at long us want properties you an of good JVs the

Todd Thomas

I if could. X Okay. And more Dave, question,

bit of put your And just make how a REIT. they're you continue the how they're capital little also in activity? that talk about I'm sourcing little where to remarks that? a to curious speak And about that the some maybe pricing deals, Can prepared mentioned maybe outside they're acquisitions today? and the from You that just going numbers around bit, sourcing PROs

David Cramer

advantage. question. that Great sure. And Yes, is an

if them numbers, are Our I REIT, have PROs about They're of time course, have a years. They good years. they units the at OP have be program, small firms the They've expansions. for of developing, think done NSA at when it. those that in roll they're them say of advantages money they have roll one into very you property and can and family looking building the value-add want over their They in are And networks. to where certainly this some investment some buy, the them small invested friends years. properties with buy the to raised of what and that's they for that would

get have of in see to where it's They because lot moving target the line a to all an I'm of on up opportunity, there's sight Some see years. risk if lot going And acquisition this maybe deals over are time the they bring they've PROs a it buying done And future. us are to these a sourcing for Pricing right risk. a like that of to to and really us great those season pieces folks then more again, not CO from. The the it. outside we activities the the asset the taking think of are that [ pieces get are of that capital, to ] pieces they'll be it's and from good into all wise, buying there.

building through if you're buying metrics pieces all deal value-adding you're you're the of quite are If wide or pricing a it. or those that CO

PROs more. would it on. if been continues say, look fact CAFD for some activity I -- like you the XX they're us, bought and the it a There's I by would I to from pipeline. it, they're And still and XX just sourcing stores we have at know that restock this our perspective, year, to other working numbers

Operator

Allaway is Green Our Spenser next question with from Street.

We will on. move

Wolfe Carl from be Keegan will question next Our Research. with

Keegan Carl

question X-part a here. Maybe

Just from And the between the how demand your spend? thinking curious marketing you're top benefiting about and where rate? you're marketing spend then mix and your street funnel of seeing how that's

David Cramer

that been activity too. we've lot and the a for to generate there, is spend. marketing certainly, the of Thanks of question. able good funnel, joining, of Top activity Good additional because

And you where job we're best so getting focused analyzing we what would on our search right good the a paid -- really a at tell we the is value rate. perspective teams we're and have done looking opportunity. -- really conversion drive can I how from

a to that's And of funnel the can marketing how funnel so get you at of but lot think it's important you of the people convert to top them the as the through top you produce us. funnel, the spend, of by

rate and conversion piece discounting where together. all and that that's come so And street

easy occupancy, you easy a little footing on or have and dynamic stable pretty predict more where little markets to some we And movement, so rates. little have us good rates we have a in street where to markets more wild a pretty been maintain, Conversion have street rate challenging. more

volatile by I want had keep spend want at we and Or you've Obviously, rate. to a levels conversion and it want funnel, to the then at. the at top your where pretty our drive to target street which adjust and of the has rate conversion we we ourselves lower X% mean, if to the the market. pricing you're continue funnel additional to X% keep we conversion do have generating an decide of dropped and top that rate rate

you, improve. adventure, and I our in we've talk thing talking is right? will our continues would I a tell been business, about And about, store-by-store, to one market-by-market, it's technology

and are bid improvement. improved Our and bid and are those new models our behind technology models new AI

efficient doing at versus So X, have the ago. years a more is what much would year or we X team they're where been today

Brandon Togashi

in center keen I what is made that's on our us earlier added investment an OpEx. one because out. property call I have is in another an where The now for manifests center that our call about Juan platform. Our asked our G&A technologies -- expense mean and advancements in big where we've that's to marketing well that And a area really our should some proprietary as investment when question item these is line call another area the itself.

impacts G&A. of that up the the area another outside just pure where and that's numbers So shows

Keegan Carl

then And one on Got it. guidance. just

occupancy curious from Just baked in what's an perspective.

guys were from quarter, to basis think you Brandon expecting point last XXX, trough. XXX drop I peak said

and yourself wondering ending Just where see in then that's ultimately still you if play at? year

Brandon Togashi

Yes.

theory, of the I uptick. back think because in for see the the the June range it in gave end from some quite of sector us wouldn't half million we magnitude the was see $XXX to think, of of declines same the year. was others maybe year, I and of spring/summer, $XXX we was through the Working that the we end same million didn't seasonal the the occupancy

to That potential is, seasonality. kind that's our into in high played end so scenario And more closer the of optimistic of a out was guidance. Keegan, of typical fact, your baked scenario. what's much

points basis in from the end of through another XXX end lost September, we the October. to June the of So XX -- basis points

pre-pandemic much pretty with that's kind your so in And years, XXXX. of XXXX, line

into midpoint continued of the a so the be And loss the could basis December. guide is is projections, That or of call what's occupancy norm. XXX base from October really of decel maybe of it, be case which end wouldn't baked of our our, points through out

Operator

from Street. is Allaway question next Green Our with Spenser

Spenser Allaway

just guys mind, You And execute underwriting you your difficulty and environment. the in commented ] future and in the with buyer to some dispositions the depth JVs? confidence in of [ color the on current being pool operations can able in potential on ultimately that on provide potential

David Cramer

Very good quite time. you get Yes. and glad question, this I'm in

had capitalized throughout relationships past, that you we confidence. history have as we're there that sale reached in end. our of And we at and this that level discussions possible we tell groups in the One having a that that assets, get of the out industry. have of would our deals high we've are can done, well of Sorry, look is with. we we've our some and know we things and I to, buyers are relationships the a done in and lot But all thing

And the assets. it, or in market. strengthening have X know would with believe They where assets we their They in we market aspect folks so that that these already. of positions be market the in are the market a X in from

from it's so win it's us. a that win for aspect, And and for them a

call, our and And are. expectations about our markets a lot transactions what trade in transactions just be seeing of of are you, tell the would I the so trade, we'll fitting seeing size transactions And we we're the probably as we last leaving. that are talked sellers'

this And good we've at would so you, in it. level into tell a got point time, going confidence I

Operator

Ron [Operator from is Instructions] Morgan Our question Kamdem Stanley. next with

Ronald Kamdem

X same-store ones. Just revenue. On quick

in I your XQ. $X.X think, comments think mentioned in opening implied, you I negative million

should sort how we've for be historically, Or about that we where talked this number, as XQ different being in year of think mind just curious good the can I around? about next trying shake around? be we're And this out? may think think to year. should we what next about a keeping And time what go barometer

Brandon Togashi

where projecting tough, you right? for mean, with. the but to recipe. occupancy is calendar Ronald, rates working year. the delta We've next exit have good Yes, calendar the moved. got know street it's It's point And the year a Brandon. to Yes, the I start ingredients way of negative we're is kind It's it the -- that

extreme nimble management earlier, positive mentioned Dave sector the be the is through ability As existing the to our with ECRI revenue in to customers.

and It's February. that than right? matter in obviously, those what of do here into get that, our in how know in all demand we So more, higher XXXX dynamics out levels seen a XXXX. play We'll we've

revenue for things lot exactly what sector of right think going taking much view right has a of go of our to will not We're think, going 'XX in of questions And And those just demonstrate encountered the the now. prove on or when it that out, when And with answer we're whole that time QX us, a occasions we territory the day-to-day QX longer negative on negative now. growth, short-lived. the belief executing relatively with the where Or spending resilience lot exactly so are that mean, rare the itself to the yet be, is, short-lived, trying focused it's bottom? it to the at does a questions. we're we're again. sector I historically, that They're it's right? fair on been in 'XX? relatively I is of

Ronald Kamdem

a line items. sense. Makes The then is super helpful. X it. And just trailing in expense Got supplemental the quarters few

there anyways. a is that rate? taxes, property Maybe or is gone year-to-date that? then of what I can that's one-timer sort And of talk that expenses. about run -- on on good one sort year-over-year. up see X.X% a marketing it's Or running just So you helping

on thoughts much that. you lean Just can into more how

Brandon Togashi

adjustments. did Yes. favorable tax, have property QX On Ronald, the number some

look numbers full downward as the up or of the probably is truing tax. better that to X% for you got kind probably in I that at year-to-date, to the I is tax annualize going year the a hand. territory that value that would would in property give have So number expense would And the be to related XXXX and QX year-over-year X-month we -- bills say to a number assessments approximation. you adjustments in growth X%

this are you We'll had see we There's year. of for maybe state those final up. in some some right, of definitely that As some jurisdictions. you're Marketing, tough the the particular, X, because see of surplus favorable rates what in quarter levy that's fourth in that with 'XX a can and comp adjustments. trailing has Texas, potential with

spending is of dollars comp a last Some that where the we weren't just year.

to Our XXXX. little a spend norms we levels XXXX, in are back had than, higher that maybe bit it, call the

we As I that. contributing think made using is those we've majority mentioned that's positive to so search center before, item that we're there's of your But investments, where And call dollars line judiciously spend. returns. some the paid

Operator

with Luebchow Eric Our next question is from Fargo. Wells

Eric Luebchow

question, Appreciate the guys.

you a prepared I your in talked think deliveries bit I little down, XXXX. being by So remarks, think, XX% supply about

new in having impact about some rates markets between, could construction seeing seeing Interest probably you're secondary construction it, maybe your terms And difference that? versus talk starts? whether activity in any on you in more you're your call of what So -- markets? primary

David Cramer

as and Headwinds uncertainty We like, certainly are on starts fill variety have lined rates slow question. interest and as capital. a headwinds for Good Yes. future outlook availability Eric, and what getting considerably up going. contractors is approvals far the reasons. the joining. seen for of around everybody of revenue There and and thanks look getting new rate growth still

come starts seen or or so not all. seen construction we've stall at we've projects proposed a maybe even longer And nationwide, maybe new whole take slow. And as certainly

where the the starts now are around been those or these a still started had most few Las feel I think called some markets Phoenix, and Atlanta, ones still that in is there finishing we on starts of pressure we are the or parts Vegas, markets. of up out. new

markets, I we've major most much. where In seen our our pressure. so probably of in is would it secondary more generalize competitive not the markets And as

Eric Luebchow

proceeds on to about follow how just That's do helpful. I And between you use up M&A repaying or you. guess additional additional think of you the various repurchasing the as Got those And stock? asset potential debt, disposition the your how at Just impacts maybe should we same-store some of or longer-term attractiveness the about it dispositions. share FFO growth? accretion those, assess attractiveness on various you -- you color think of those do look per topic. how

Brandon Togashi

mentioned are our Eric, the things potentials strong would got use for mean, revolver. how I you on the think, I we all amounts certainly, we've proceeds.

funds but the most would program, interest healthy spoke that up So earlier. to to new stand remains use share I repurchases today. reduce We'd have immediately, we which a cost possibility. that, carrying pretty to is rate a or a refresh

we in again. externally, going to cap be want to capital and ready happens, of cost grow do we until a then when ourselves And go. to certainly And terms But of rates. position happen mass rebalance want to that's not to that in

And are so all to position for. those ourselves we're trying things what

and we've that slightly our margin occupancy of generally they improve going to profile, identified the portfolio, are part these longer spoke slightly assets that's no probably portfolio. a the the they're improve intent are NOI once think type of existing our a clear quality but will the tremendous certainly to strategies. the earlier, amount, profile it Not of that improve that Dave of I

Operator

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

Ki Bin Kim

those some ECRI at as higher is that a be left going -- that same-store still I point. Eventually, at rates point, to doing the the release was flat get you rents? even being program we negative that scenario, because curious. customers it's there just what and flat though still we're doing, that cost could to have street revenue to hit occupancy being Is

David Cramer

good roll a Ki there is like be thanks compression scenario question, joining. seeing we're that. also rent It's could of Bin, a for what the Maybe the Certainly, and down.

we've think roll also of And so downs. hit I rent our the peak

We're less that X months, or of entry tighter tenants street over tighten with time bit been been And to starting us months rate have little down longer a see what so the as who as people a roll-down us turning eye over is X with longer-term street because roll have comes level. who've implication. been rates on out. level turning we're people who've And our occupancy that spread that we're occupancy, in

And for first up that around ECRI so compression roll is that making rent down. that

personal be So that, if be be did, that I would on could there my it but take expect would situation. long, it a not just to

Ki Bin Kim

the down XQ? And in rent what is roll

David Cramer

So roll Kevin. the XX% rent XX%. down almost average, about was September 'XX, peaked in It XQ in on

XX% So up about around XX% the and closer quarter you in finished to it's then October, much started falling third off. and

September gap said, we and think street peak. the So gap, probably rate with like was we occupancy

Ki Bin Kim

And last question me. for

have costs sequentially. Your flattish store been payroll pretty

expect forward, as growth and that line? kind curious from should of Just expenses look you we what

David Cramer

tougher and of operating a store count. there. Probably a use store done around line of and initiatives head and technology little sight lot We've hours

job wonderful towards still and the And evolving. so staffing the working have model new a really teams done it's

we've we've There's control We've refilling. it success. is good good of We've had expense. payroll been been really doing and we've as not years had and And it attrition X some doing we been what really doing -- actually X payroll through as opportunistically can. --

we When on. Looking be And there's to think we hours. little this be a When that. is for there? supplement think to to consumer true operating have does I How going us store headcount bit not that the can work to forward, need do that we test we use be us there? technology more around

might XXXX, that have you. next little talking around I we call think again, we're a on So color about for our maybe more when

Brandon Togashi

as desire when store I you don't about densify X, markets, way X, And and to or grow. makes because only that to we into if think strategies, Dave's in level other right, even Ki see markets the that the helps topic or have those X that And really portfolio that redeploy identifying and well, where we're that overhead of assets where opportunity its can mean, some point serves assets operational costs. exit we optimization further earlier Bin, and this

Operator

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

Juan Sanabria

essentially. on Just cap wanted to ask a rates follow-up

transacted around the the You third recent on said quarter you'd most in acquisitions X%.

to maybe and kind not if months Acquisitions indicative agreed yields spot a indication So just back or think of of curious of were are number. stale rates what that's if you today. that's good a

that pricing the regards that just versus to you cap quarter on commentary So today made earlier with transaction for rate curious X% third deals?

David Cramer

Yes. your of rate and also It's really those, worked legacy point, Juan. hard right? type assets deals time because on of market those Good through There's X-cap materialize dictate to as little to the -- a process. bit to mean with a it's cap we -- type these that quality question, of I if or one-off in asset, a just of one-off could it's are depending markets type X-cap, the where took market.

nudge to and I there's don't certainly in still they're stress buyer. between cap industry, see little the typically but up today, a a type. expectations in And big our sellers' think a of lot you rates bit, spread starting product

to where looking right is that And type. back 'XX, mean basis We're more But are individual we and properties now -- from maybe to to I not seeing in tell sell. nudging are it's 'XX, smaller But it's XX A we've so price rates property of were sell. if come And a the that know being of met. up. I I trade this where also also deals ago. seeing portfolio from the if definitely -- XX, seeing you, lot would cap cap points market high 'XX we're variances don't rate. because And by drive year they not expectation

Operator

turn of reached have George end comments. closing conference question-and-answer I back We Hoglund our the for would session. to like over the to

George Hoglund

We X for interest many Thanks. and the and all today, the business, forward call joining you confident continued you appreciate Thank our in NAREIT at seeing we look your we remain of for NSA. the in weeks. in long-term Conference outlook to

Operator

conclude will Thank This you. today's conference.

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

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