National Storage Affiliates Trust (NSA) 31 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

George Hoglund	executive
David Cramer	executive
Brandon Togashi	executive
Juan Sanabria	analyst
Todd Thomas	analyst
Jeffrey Spector	analyst
Michael Goldsmith	analyst
Omotayo Okusanya	analyst
Ronald Kamdem	analyst
Salil Mehta	analyst
Brendan Lynch	analyst

Call transcript

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Operator

Greetings, and welcome to the National Storage Affiliates' Third Quarter 2024 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. Hoglund.

begin. may You

George Hoglund

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

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

will question prepared one if registered financial questions one 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 nsastorage.com. furnished found with addition on our the which results In in on

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

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

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

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

I will now turn to over the call Dave.

David Cramer

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

following hurricanes through we period. as storms Milton. best to that these tough wish their team and announce are all Helene pleased work way the are safe hope our they them We and affected recovery that of We safe remain by this all members

largely minor business. all and stores signage, back of gates, path While for of several the roofs facilities of these impacting open storms are our experienced our damage, in

XX points shortly primarily We have have Milton occupancy area. before XXX markets basis until increase today. of In of experienced these uplift the Tampa from where Florida, on we we've in in occupancy stores, seen approximately the Coast and in Sarasota-Bradenton an West an Hurricane

operating in offset An helping competitive environment. to a very uplift partially is occupancy what remains

and areas to Sunbelt challenging continue Our elevated for with supply new more markets be us.

far, cut housing market So rate Fed. as to have or by September a impact customer levels of the an result the seen we demand the not

be were period the we quarter expect from the a prior term rates seek widen Street down to of in that I We and number hold to that would for remainder the year. points October. during approximately down levels year-over-year. XX% the activity third will occupancy basis pleased add levels the with estimate and occupancy as year that rental in we're XXX bit average we October the the near in occupancy

the base ECRI with and material existing change customer in remains of and pleased all expectations. we length remaining the continue softness have customers, behaviors. experienced program, of to customer within healthy be in payment we and pricing activity our new to Our stay, our not Despite success a

structure. Turning to our internalization of the PRO

procedures. remainder on hiring, We onboarding, management. are to will primarily progress, transitioning standard the The transition be stores operating and of remain implementing of PRO of XX% web complete operating ahead XX% we consists by making almost which in done the schedule on NSA We're and transition operations We're training completed mid-November. management, of the platforms. and about great

expect initial store We to mid-December of about rebranding. be We've the finished XX% this piece. with completed

We're transaction from gone well the management benefits pleased strategies. the the accretion levels remain encouraged previously early commonizing we and also how We on achieve highlighted. Overall, with the has revenue customer acquisitions by date. that to we're have track to

Moving to environment. the acquisitions

X deals. underwriting portfolios portfolio few Oklahoma our including the operational portfolio closed We have in portfolio a XXXX on Successfully a our Grande variety opportunities team million. increase seen using overall X-property Valley Rio the a These has and property where and busy more transactions already desk, JV, in strong quality XX footprint our come efficiencies. we a and our of will markets Texas across portfolio and for $XXX improve are of in City been have approximately

environment internalization the the housing near that acquisitions the operating in recovery remain will in and an remain going we likely with benefits from forward. performance combined term, to lead optimistic eventual environment competitive Although will market improving the the improving

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

Brandon Togashi

a of decrease Thank for you, reported we of XXXX, share Dave. by quarter over driven FFO same-store per prior decline the third year primarily the $X.XX period, of Yesterday core afternoon, X.X% in NOI. the representing

basis decline a in R&M. XX Expense declines insurance, XXX point the by of per basis, rent being year-over-year the with same-store drivers on partially property average driven main and revenues in and For and the growth in square X.X% third revenue was declined by decline a taxes in occupancy a quarter, personnel quarter, X.X% point growth basis offset foot.

average to of sheet. speaking the balance with maturity years. We and average of August, favorable more pleased have weighted weighted issued to a million the Now of coupon notes X.X% environment. priced of in late advantage we were taking Last a rate $XXX private a placement transaction X.X month,

$XXX The was points XX-year $XXX higher We tranche loan off term retire priced treasury transaction. tranche to came yield C off quarter the XXXX. used in million due is due, where paid paid In million third we the the July, bringing that today about from in January total term debt the proceeds $XXX B XX basis million. to the that we loan also

just for of the maturities mortgage remainder debt We no maturing XXXX. XXXX of in million and have $XX

Our $XXX balance roughly of revolver is giving us million $XXX million current availability.

deals the opportunities. on to maintain As of And credit line opportunistically accretive Dave the balance we ample to capacity. seek materialize, will out term mentioned, evaluating we are acquisition more as

at which quarter our X.Xx net debt leverage, end. EBITDA We to comfortable was are with

the performance As discussed on units, PRO of performance X, structure thus, further associated and converted in PRO the no there as our internalization, with last managed all former into PRO part of properties. units the were July subordinated call, of the sharing operating is on our OP

tenant the PRO-managed to related insurance contracts X, stores. we Also on the July bought economics out management and

pertinent All are the of file XX-Q the in that release will and we details later today. the

the of was, had quarter impacted more aggregate store part, portfolio end, we that and our million. less on for an several relation hundred from our experiencing estimates in a the recent Now of X impact damage damages the had stores to during flooding. to that Helene are most still few incur units but moderate the to Milton Hurricane Cost by with Subsequent Hurricane minor damage than $X roof are quarter. hurricanes, preliminary, expect

the X.X%, ends as of to of would the low outcomes. midpoints XXXX. core and the FFO reaffirmed for of NOI Now for $X.XX high share probability moving low on ranges growth guidance and I negative characterize and per We've same-store --

for again joining Thanks our call today.

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

Operator

line Sanabria of with [Operator first BMO Our from Markets. question Capital Instructions] the Juan comes

Juan Sanabria

off following I pointing of implies that year maybe The a drop guys Brandon, a that on sequential of reported kind sure off what in a midpoint The FFO base third. which just fact, that what the with to is, in $X.XX comment work understood made are you full good you is to. of in kind to there correctly. up wanted sequential I the guidance at to you to guidance. make regards deceleration versus end $X.XX just

Brandon Togashi

for Yes, Juan, question. the thanks

about sequential implied the onetime numbers midpoint couple The around decline of implies right QX. third things or some would that A the midpoint QX obviously, of from guidance had that be the benefits. quarter You're a right. $X.XX

earlier, onetime deals joint $XXX,XXX have The in acquisition that venture the roughly those that quarter we fees and third did fees. Dave fees is in described to roughly of related $XXX,XXX

the end closed deals at X closed of those Now of mid-August. in the other July,

third quarter full will numbers. a be have on the benefit, acquisition that we there So some unique fee a that's there a basis, fee to was recognition but ongoing in onetime quarter will

would on tougher and that property comp year-over-year a onetime have same-store I OpEx, as well. QX taxes in you, nature. tell we did some gets the little in And are The more then benefits

number expected And to be OpEx quarter versus year-over-year so higher is the fourth quarter. the in growth third that

then for So of or that the when the in those And normalize at $X.XX sequential that quarter things maybe out. up that of a rest you're we adjust couple if anticipate. you're on, seasonality for a you is $X.XX a the third decline picking that, frankly, those that are you things business

Juan Sanabria

on you'd previously third-party then and And corporate and some differences presentations, relative had internally. that between of occupancy some now your of were traffic conversions the how web prior stores the updates Great. managed in PRO managed kind and stores

So give and just can trending an how curious if you update kind that's on potential thereof. of upside

David Cramer

bit transition, California. the around initial Yes, Juan, the Southwest market, that we a set for Thanks moved successful been in we today. we Phoenix, that on this and of through as started talked We've little Southern PRO the really question. stores over Vegas with of good about really Las call being

and and about think you we XX transition on And management the before that from start transition able to to to teach really strategies so systems transition, transition, working see and are we XX members really, we if live, customer work days train really and platforms and team think, we some strategies. about revenue takes we the start acquisition and of impact get as -- it we

to market, can market look Vegas, market at like on or if like some so And look a of Las pleased progress Phoenix fronts. with that you the tell point made we're early I Southwest on, X you back we've and a at

the better they're probably in than quarter third occupancy around Las what basis overall look was. occupancy of Vegas, an you XX If portfolio gain at Phoenix period and points to gain our the XX

rentals. And think customer strategies we're the movement did working the in into revenue so us of we're we that important one that's about as That legs And see because the is put you as on. acquisition the and that's to. encouraging that's what we strategies and driving fact rate a to

Once platforms not through ECRIs on And the ourself to we customer team look customer existing can all we only go transition, base we're was forward, but members also were existing base the of backside in back done, tenant you that, early at and going where done them, through then get and where new base. compared and the those we markets. the on thought move move-ins able that existing get on ask going to the

we some we'll stepped third stores magnitude the those And pretty see XX-day the back the past XX-, of third we've into in implemented quarter, some transition quarter of benefits XXXX. through scrub late increases in and tenant that the were quarter, base period, of sizable that tenants to early back fourth start so around that increases quantity on and rate in, and

pleased those recognize bit fact see better. things, little able digital both we're that to got we're a on. so do the footprint of early obviously, progress And in that,

got positioning Our stronger.

more got effective advertising as nsastorage.com. we search use paid Our

going we well. earlier, at. green looking we're is really it's XXXX. year The things So back a as in lot pointed for of of we view was All really But us that the also half XXXX early. the really positive to coming these transition. know, about shoots a Transition

Operator

question with Our Todd comes of Markets. from the next line Thomas KeyBanc Capital

Todd Thomas

of it financials appreciate we of July and quarter. kind you detail that reflected had But a X, the to closed the think as the the got in internalization period pertains about quarter transaction, on we just the Brandon, midpoint which so highlighted. sort full as fourth this

Is 'XX of around G&A the need the transaction there as of anything lines be should we into about sort income think fourth quarter or related move considering? some internalization other to early to we the and that that we sort itself of

Brandon Togashi

Todd, question. Yes, the thanks for

there's FFO we regarding what say remember, pieces -- on couple So of a the internalization. would communicated different of PRO is, the that accretion I

the that on and was were recognizing. one, insurance and you And two, immediate right? immediately those one in that most G&A of that, the see the is financials One the savings I one, most think, tenant can benefits,

tenant our realize revenue July primarily insurance that line other see can our the on X, on to P&L. started So in benefit, management we fees item and you

expense year. You it point benefit, the quarter that from and P&L. breaks would you over prior line to Supplemental can Schedule our see G&A out improvement I our prior The item G&A X,

to know per And -- management supervisory And That averaged for labeled you and last the continue for that's points, its the $X touch PROs. into administrative we to pay the do fees our back-office that from as PROs things just do it quarter. first fees, million number we couple entered the quarters agreements properties that shows new and of the X described. Dave other have the stores manage until accounting the and transitions have we the

then previous million the will fourth see to to go continue $X year. rate quarter, So and go that into third million you as you through the down down that taper $X.X number in and next the quarter from run

tenant the starting realize insurance rate both the and benefit, the we're full XXXX, So of that all some quarter a of the benefits captured it's should numbers, on -- see point but is to we run yet not the by we're early third basis. in G&A

Todd, kind And one and as your to endeavored Juan's to this question thing PRO was ties is, though We near of had it the question. term, the negative my The do is lose on that response as that trade-offs management benefit internalization. of do accept into SP to long sharing. say, of we last the I unit we would and when NOI

guidance in And NOI so the year-over-year for we implied numbers that and larger fourth has the in same-store same-store our growth quarter growth third that's unit sharing. SP a don't have quarter

And so factored to question. of QX kind Juan's that to math into QX is the you also that back from walks

and, that. capture benefits, the are pieces of have fundamentals to inflect will since next amount those Dave growth, positive a as having the obviously, of no frankly, would NOI I of really have in just And I cycle normal reminder, and really to kind just of a longer then a year on accretion Todd. that full going tailwind operational Those terms remarked sharing. and leasing economic Maybe that full benefits. things summer point spring the when was we We be some the of big to, other the need you and floor a be

Todd Thomas

Okay. transaction pipeline obviously, additional acquisitions, about work And also some of That's and and sounds the then recycling dispositions. but is you've for putting the really like building helpful. you to in terms capital money environment, talked it you're some --

started to marketing an wanted sale on where assets at you sort And of time? process. additional this have you or to update if anything that for just Whether could I under agreement at you're see as provide

David Cramer

Yes. of and the Todd. then dispositions overall how and just with into looking some Good assets. the start question, I'll work transaction market, at we'll selling we're

a have the overall deals of encouraged the deal We're of quality seen We volume, a underwriting, many, markets, size. across we're variety the many variety overall by our deals desk. of

expectations now to and of numbers, COVID ability highs I for clear for that everyone. and consistent be couple and years of everyone do believe starting revenue are underwrite forward-looking things a more those sellers' we're the from removed our all to be

we're And like, so we're we opportunities markets that like, we to on. in able move finding actually and

acquisitions encouraging And from front. so that's the

continues. encouraged And and that like of think I we're working -- team the we're hard say, and a underwriting lot is deals. I

of stores that we did all into portfolio individual markets, now the stores, did our first in that studying stores we transaction was the as the how transition as far as PRO one are As the the the of really assets. of go PRO set We through the not we're markets, we dig success we and of that, the that the side we're the of transition points PRO stores, the pruning when really transitioning and those markets, positioned. assets, selling

assets something identified might would that be already dispose XX XX We've probably we of. to that think we

and beginning opportunities time them Obviously, we us. of recycling listed start front see us we the good the get think and the this in Think capital? about is have of I right think to you'll start quarter next really to fourth in year. the

recycling to assets tax So like it. that into attractive us. better there some we can and assets, make XXXX vehicles selling exchanges piece use around really efficiencies opportunities is some And of to the

of I I So heavy start look the give next able over though. million that's X our $XXX really think X of or X and some would months you. these net million over I next over we're time, forward. $XXX If -- sale going number for us over sell X properties. recycle to I'd not months, we're to the probably listing seeing to buyers is assets would lift activity properties the to on you'll The

Operator

Bank Jeff comes with Spector question America. of next line of from Our the

Jeffrey Spector

nationally. the previous stabilization the 'XX? not peer your would you they but into discussed, improvement heading environment, just said and call, How thoughts On characterize current your

David Cramer

think individual would for question. assets, Good of and and a I And tell what's we markets lot going Thanks to a I there's joining at have you interesting. on. look at as today. portfolio. you at very you, diversified look ways look It's that

pandemic, performance heavily If in at and run had up really have lot now single-family challenged. had Sunbelt. and those of tough into elevated they that that look they some outsized And in or today the a little the markets comps they're they going we're look their and heavily you exposed and Those more if We're have little markets housing. you more into like a during great Phoenix look supply against, or Sunbelt remain history, markets they Las at a at exposed those you Vegas. a Atlanta to are

your have You're of the of rates. across your have work supply, We've going occupancy. markets some that around new footing forth. to so found through work the to to transition have returned in you're the footing to way going We we way because and through housing have in have found country not that do fundamentals

Our having ECRI program. the around customer base really remains We're very healthy. strong success

And and to would so number ways We had stabilize found stability, while there. rate supply we've lot that find if Maybe have as Oregon, we stability stability encouraging get little look a of us we supply, front of market of Portland, headwinds we able get stability of and the of to about a stability it growing is at in And occupancy positive sign some you the it, talked market, find that's to been us. you for actually to bit go it years. is to to a we've which still point a a because has in a market that occupancy, and of I a rate it. lot in

as leasing spring historical. season was would second at normally -- was we looked not our you, you if numbers, the than It elongate the was. as tell it quarter I shorter knew

We remarks talked are down is September. now, XX.X%, was which but number I about last the pleased the over quarter we year, as an XXX October. October. can yesterday, that the Right spread, we're give about is on spot occupancy in about third opening but points you a challenging, but with improvement in in The -- at of basis

of a for move then the activity October lot gain. again, see us, variety markets, occupancy and here, we a lot things volumes in an out so rental but of to And to pleased play have of were at

Jeffrey Spector

expect this helpful now you weren't That's seasonality I normal quarter, has winter? the continue because and that to fall think you seeing you through last but the returned Okay. did patterns through really spring, say that that

David Cramer

seasonality summer But high, of I October typically, highs occupancy bleed really almost -- a in The February. to around and stronger your trough would bucks February. mean the through you be the from October us. a have the to was July rental number pleasing down because really kind till the that's occupancy June, in August, little to you and get really activity

was things certainly objective. advertising And an rate so customers. and try working can on the that we do and discounting levers the We're and all to track to all around

a specific. it's we of in were But October. to again, market There's factors pleased but activity with lot the this,

Operator

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

Michael Goldsmith

were quarter. street third like sounds It down the XX% for rates

to as points. were think to that now October a look basis you gap, points. worse little bit down get third looking basis expect you quarter, you're You closer I to to XXX for XXX be October, occupancy close the And in the

better, season. as look up rates provide update street before that getting And an a get like they leasing can spring better of for little and does So of occupancy probably but kind like bit the rates you path for kind street forward what are of you the going sets get how where October? worse

David Cramer

you, to the XX% right. quarter. if through the at third Yes, look I Thanks from widen in it Michael, you're joining. quarter, tell July started We really But would down September. third were you for absolutely.

low we mid-teens if by maybe maybe in the are XXs September. low we're July, so in And to

so that into has October. And path continued

think widened there's mid-XXs we're I things I today. for And it's us. -- going X in October think on

get volume wanted. trying amount spend rate we're we to So of rental the right discount marketing and blend obviously, of and to find the

and our portfolio, acquisition October some back we're more management marketing we're little so rental volume that, to a PRO And strategies. like their revenue we around that introducing in environment. was customer the with our also strategy through us competitive for going of repositioning that markets but and and strategies positive those transition, be And a

little of our through that And so some as think of might footing. bit outsized movement, September that PRO movement, be a work that find I we portfolio October some and

get I mentioned how Las Phoenix our as basis earlier, well. -- year-over-year positioning, of well they I'm responding sure quite the with through the But Vegas that's to a not from new year. encouraging I As rest and don't much wider

I and rentals, not X continue we the months think last we've the rates street November maybe widening see a heavy of on -- we around to much work lot done the we're as and activity really like if December.

Michael Goldsmith

Got it.

it get and see kind for then you is there? as from should and rates like trough street like of So kind it October better this of the

David Cramer

think We're flatten a flattened October. the I we've lot of done mean may out, But right? now. gap I September, in yes, work

Operator

question Okusanya line with Bank. next of from Our Deutsche Omotayo comes the

Omotayo Okusanya

That's ECRI that? to "given thinking XX% to But I kind street occupancy of Again, wise," kind do how on how may last offset very rates in about follow trying away year-over-year I be wide, you're pretty tenants. a near-term when rates you basis, on those much of you just street can you ultimately, October. get it wanted up get the question. and down

Is how rates low that ensure to offset the kind curious you're kind of marketing? profitability ROI you kind that lower you're I'm of Is of looking such that still of for? level -- generating or street just

David Cramer

question. good a It's

drive play not is that. pieces we of in October at to helps several an think I any Certainly, here. there's that of think us operational also important around to occupancy That do efficiency the what revenue. can the is offset things overlook. one I type help gain

looking balance of the time? units We things focused in I triggering to one so right believe that's find versus be a of now, to they're trying that rate street what now very looking when right customer customer people is believe And the over so. focused on and rental activity for the on. units. to price. if rent they're and list do of right coming on high the And at we're how price Will seems change the is But

And thing work is I so the we on would Tayo, hard the rate. you, back tell other end really

I once program that have a have the ever than quicker a you more we're ever than certainly we've -- level in and higher can mean, the have had, confidence door, recover we that so of we we're have entry sophisticated past. in better them and rate we

And think in of trying to customers amount to of that that rent, the we the marketing within to those so unit the asking I we're balance offset what find within But asking market, of us even portfolio want drill down got spend, I size all property we're is way rent. things right, kind studying. you help think

you, would I thing are they've ever been, stays than longer of other customer The healthy. remains also tell length

in today, longer value the lifetime runway of a we have door customer. the So that a getting customer for

Omotayo Okusanya

faster widening may pretty of That's much a bottom doing pricing a following or Or the strictly are the helpful. private side the be of is still. what could market perspective, market public side from overall than that maybe then different publics the we of little indicate little Is a the And again, just market. anything private are about the bit doing the actually anticipating? that guys XX% bit more just

David Cramer

to -- it's X think there's the as about I you sector, that. parts talk private

by reacting the or around quick in operators sophistication they up able private -- to larger that pretty are of same And little more down, they're a following groups the more way, what piece are think the were react certainly it. that of have I doing. all way the and public the

not the of street through of type of and sophisticated are this though, aren't through rates larger, doing operators private did these the our more COVID. markets, happened rest The In all not segment, any most way that They raise COVID. anything.

And to down the so returned levels, pre-COVID level. has in this now mix everything same they're about back

so hasn't nonsophisticated moved operator all. at that just And

Operator

the comes next Our of Ronald question Camden Stanley. Morgan with from line

Ronald Kamdem

you're rates to stabilizing, are go more out, of guess figure that funnel get share, where top irregardless market if doing characterize to of sort more to top of asking into how the you're different overall sort street I way. funnel sort improving? cutting a the in the you is like as of want just I'm of the an to just question of demand environment back occupancy, trying you would Or pursuing? the as demand strategy that demand I

David Cramer

Yes. Good question.

top the would funnel probably, the of stabilizing. is think I probably I characterize

you around customers we out, units surveying moving. look are we anecdotally, saying our in are a more and do in that storage surveying in rented that us, do, the renting from or all because at they're people If have just fact what the we they're seeing change

that's we've few months. an that last seen for the And improvement

itself top the more to that's you been funnel increase. we if at, where But saying, look particularly and that so And from an that's that movement, of okay, in in around that that's are little encouraging seeing something sign missing markets, our business our transition a sensitive us. for not we're

you pinging very of think much that down. are pretty sessions or us stable. up at change about if not seeing we're a the been funnel, or We're seeing people top -- web It's pretty not significant

bit and few get of the rate more trying a by take trying of things we're to discount so And by of little more customers. and course, a conversion we're to up doing, that we're and rate, those by

Ronald Kamdem

follow-up of my this sort is sort would then we be that usual the there other mindful there should just next into quarter going taxes anything sort quick is year? And and property be on of sort of and of Great. of expense just than for side, -- the insurance,

Brandon Togashi

little gets had We remarked tax on this part I the property the I mean, Brandon. than some what in a benefits comp Ronald, earlier, other of tougher. back is last year.

to what you higher perspective. saw So a year-over-year in be earlier, we number, than I quarter the said the from growth expect like third

earlier trailing we add probably I'd see meaning thing great say third Ronald, some information other personnel only QX. The like And spend improvement, quarter There costs, run the in the what was you that rate. -- that's quarter X to necessarily numbers I in wouldn't in a is the said just over we the disclosed. don't lower that I

come that that, think do little bit. will a back I up number

Vegas, Southern you the as attributable of to stores. California we at hire working transition was But best the the from have people the PROs. that Phoenix, of to some already we were that many our tried to that Some that we inevitably, started there. these And could those markets, turnover

And quarter. caused the little a personnel in item bit to be so that line lower third that cost

that and somewhere numbers. between third the So I expect pick up second would quarter

Operator

Our question Mehta from with the Street. of line Green next Salil comes

Salil Mehta

just kind the other slowly the I'd common pipeline. quickly Seems started in through the on Congratulations ramping and of storage has industry touch here activity base and on M&A the slow as REITs in out like XXXX the quarter. like up. to whole acquisitions a theme

you if some that wondering into could expect provide color Just kind where on did XXXX. go which direction it guys of and you guys

David Cramer

sure. Thanks We did part I as become the of back year we question. the joining. of for year. earlier. the Appreciate thought think of more it's think front Yes, active the will because the half certainly I than And this we discussed factors about think the Yes, year.

the we come expectation, and the move we're that market, want properties on expectations buyers' see think sellers' quality the to closer I we're some are of seeing of getting to and in to I think able markets those.

XXXX. into on continues that think I

getting I started. think just we're

the in crossing what deals, to amount calls, seeing a are significant that you for If of the from the we're July of amount at desk today, change of look really been things there's even opportunities. our amount

that I so think And XXXX. carries into

obviously, us be and that to I for think Makes that the of we acquire around our forward-looking balance expectations to going get fundamentals improve are. fundamentals. are filed to easier what it more we stability want finding properties. comfortable some the right return And and the obviously

Salil Mehta

it into development well? joint Awesome. a for start any think And this assets this the on tying getting And in specific just with Heitman you'll you kind And is quarter? M&A, to a has venture seeing opportunities do thought added last question the underwritten but venture? of as

David Cramer

Yes.

So clearly, that of light. good a looking price us, for we've would good a at think a and one as capital that been of we lot that's And assets reasonable access of fit venture. at capital into quality

in venture. to We like opportunities want the we're venture the So we finding there. to and work continue

that put properties opportunistic more what want can really it, that's in a that development that more -- we're can -- to really of there, fairly really juice looking to to we look be there could venture. at out side, from seasoned are And some want but want something we there. in we not we squeeze We look for assets in and

Operator

Barclays. next line question Brendan the Lynch Our of comes from with

Brendan Lynch

stays earlier you than Can about think durable think context? talk you what of ever. in you I length is? it that Dave, ECRIs about is are that And how mentioned you driving longer that just dynamic, how think

David Cramer

interesting. It's Sure.

be has the their may piece has pandemic, back way I And think I think variety you people storage offices introduced through through. I have gyms we carried and have home home a the in but that office still still as if got home its some, of they the think changed, carried not through, into I about think people way think office for went reasons.

it's and them. and did introduced and that lot garages, People inexpensive, it's think sticky. that they've clean have never we that that convenient, of good self-storage self-storage, fairly during that out of for time a money things period realized to been use a of have customers just space, And it's time because really also of used I

think stay. I long of And above it's this And length pre-pandemic led that's levels. so

We but mean last pre-pandemic. the above from have elevated, levels, change it at all. seen change well a seen and highs bit off a pandemic not of maybe little levels, it a came the I not we've pandemic just in -- the

amount it we touch the does, of that the the times what in gives customer to an opportunity us it cycle. in in at can life so cycle the program look that life of life frequency. We person ECRI And call cycle

we period. stay tenant for touch the opportunities about base times have and we opportunities base so in for of think is months, ECRI a the our have now, tenant XX current over the length the same-store right And XX-month you when

I think, better that systems, the helps our better it around length to strategies certainly, us building we've with before. technologies we conviction our our But really and job building of a better have than stay maximize done ECRIs.

Brendan Lynch

economy The also customers that on rate. present. at That's helpful. reasonably very is And strong then mentioned are focused you

that less there. that forward. So thoughts more level of that and over than get is interested sensitive what less time, rather in kind to imagine your transitioned there's to I'd going But of how risk the would be sensitivity, them more they make sensitive has going downside

David Cramer

did think about question. we We thought little some I bit. a It's ways, ourselves. a it good In it to

month you're X was think giving the where first used the I prior to discounting more or things free. probably free pandemic, months predominantly

I much and up you're back. of And the concession, to the just more still right? same You're using think of back side back the discounting then giving the rent what as has haven't it we the entry come think of I But that, ECRI has introduced a as still on right? pandemic been back It's a after price percentage up the throughout piece. sharp

in is to as eases. months. some just industry it's competitive new as do of the I a bit think, last was that's think forward it going So attract XX be to don't strategy. over change on, transition maybe as going this fundamentals things does maybe improve, But ease, gone I supply the little difference to I XX think customers

we occupancy And so of reacting more that we think rates, aggressive as in and get then all levels them, footing pretty get we street where been street get mean And our in give is comfortable maybe I our strength they're think I right? kind what just follows to consumer some our more and it. we've and we the rates. I with comfortable

Operator

no are pass time. at further There to questions to George call over like comments. closing the this for I'd back

George Hoglund

joining in of and have seeing you at look you And next we happy Thank forward a interest month. for your REIT many We all the Conference to continued today, World call the Halloween. -- NSA. and

Operator

teleconference. today's concludes This

lines your this Thank at time. disconnect for your may You you participation.

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