Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the U-Haul Holding Company First Quarter Fiscal 2024 Investor Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Sebastien Reyes. ahead. go Please

Sebastien Reyes

thank the and investor joining today. us Good Holding you Company to U-Haul XXXX first Welcome morning, for quarter call. fiscal

that Exchange business during begin, to expenses, limitation, income we would growth certain revenue, everyone of of general our Before statements regarding XXXX statements Act the constitute of of the call this I statements XXA within of provisions Section XXE amended. as the and forward-looking XXXX including, Section Act of meaning as may without remind of Harbor the and of Securities the like Safe amended Securities

Forward-looking or inherently to quantified. some from results uncertainties, predicted could statements factors materially are actual cause risks which and Certain to be subject projected. cannot differ of those

the company's US with and affect June quarter please of may XX, filings public results, operating the which risks business file Exchange future to Form is that the the the refer company's ended Securities XXXX, and and SEC uncertainties For Commission. a for and XX-Q discussion on

I Joe Holding Shoen, will Chairman over to call U-Haul Company. of turn the now

Joe Shoen

joining Good today. and for us you thank morning,

We years. continue overall experience to to activity as moving My contracted. has says the prior U-Move good numbers as struggle two post

economy. seen We an in this have before uncertain

we're to course, business. for Of continuing scramble

market become more optimistic, likely As consumers the will entire expand.

trucks Our rise. continues on trailers repair spending to and

mileage the increase there course, to of drivers fundamental repair inflation. but unit to is units are and waste, leading labor Of always few the some working waste and I'm eliminate too replacement parts and per

have some self-storage of unlike resorted our discounting competitors. large-scale in We major not to

and -- room increasing This and rate our doesn't and the continue adding on up. units continuing rent rent to room I build of to above are rate We of of plan the disturb ups. rate me greatly drive unit buy

due pricing. rates lowered to In total costs quarter to went down for we due revenue was Freight some and finally decreased U-Box, that. the our down

us. expanding be however, are This should to continue for up. margins, market Our are an holding. Transactions

with specifics. speaking Analyst will to Investor greater I you Jason look at address videoconference. and forward And in upcoming now numbers our the

Jason Berg

Thanks, Joe.

quarter million for the $XXX reported third that's first our we last of company's compared first best million, Yesterday, earnings quarter same of representing results. year, quarter to $XXX

Looking from share $X.XX non-voting we of the quarter last first compared for for this share per earnings $X.XX reported of share, to the in year. at perspective non-voting quarter

Starting off with $XX Compared the had about last we million last X.X% equipment to down. decrease, the rental that's quarter it put revenue first of results. To starting context, year, over into $XXX eight decrease four second the quarters, quarter In we've we've experienced $X.XXX increase. revenue. billion with a U-Move had fiscal in that, before million nearly XXXX, so the quarters of

So, XX portion given in last gains. small the back the of a we've months,

trended reduced we've results that positive. trends has mile And several the per July to transaction. declining last per transactions miles compared past The quarters remained year. continued; seen in growth and Revenue down

three-quarters about say decreases this proceeds from sales expenditures new in our Capital we increase rental The million first CapEx compared were is box to And in increase that's year on thought to was the manufacturing in equipment fiscal of $XXX units initially the projection would majority last net I have quarter full of for this addition the an of fleet. going XXXX $XXX with more increased million. XQ projected $XXX our truck year. our what million, being is approximately to schedule, million remainder increase $XXX we from from happen. to

per sale increased retired $XX of by declined. Speaking total to proceeds average quarter. proceeds increased Sales from a the million for the rental sales volume while equipment million of, of $XXX first

portfolio, improve nearly across Self-storage the up positive. up be $XX continued X%. to for up XX% million, continues revenue revenues per foot were that's the Average entire Self-storage quarter. to

was end units of compared last XX,XXX to the year. the at up count unit June a end over occupied of Our June little

portfolio. This of owned of to decrease just average locations level basis the timeframe, XX-month to of bringing same was rate we've coming the for properties. under same of This occupancy occupancy ratio about average During XX XXX XX%. that grouping differential nearly points about down our units these XX%. led to our to by added moderation an points, average new again all just an saw XXX We basis in in the over also occupancy seen occupancy -- XX,XXX same-store

self-storage to We continue press new release. the fine-tune our disclosure in

development. real first During increase the $XX million million $XXX acquisitions in of in XXXX, U-Box the of with year. last estate we quarter over invested first warehouse quarter self-storage That's along fiscal a

was existing During the under that feet, square quarter, million acquisitions. about million across of in X.X added currently we just XX,XXX form developed projects. square just new We feet over self-storage new of XXX rentable the being net X.X have

and Moving to segment $XXX our the quarter. million million $XX for in earnings Operating Storage decreased

Operating have on we truck for fleet, are continues Work we expenses led the first the but Fleet and maintenance repair and a capacity, were -- quarter. increasing $XX up fallen repair million with shops way work to the company-operated rotating million increase. behind. $XX shifting

costs about increased costs million, two plan percent increased the Personnel costs. half years, that coming a last of of as personnel to are revenue from Compared health $XX elevated.

they're on a basis. However, percent revenue out over of a of line longer-term not view,

the expenses, shipping Other cost accident including and of decreased liability the and payment costs, costs, during processing quarter. all freight

our availability place At to facilities end from to premium -- with liquidity. access loan and cash billion. segment June, the and cash of along June continue a totaled Moving $X.XXX at existing Storage We at having on

Storage that and $XX cash while During we the in up on earned increased expense interest Moving $XX our million. million, investments and was income short-term quarter, interest

at long-duration that affects to have the insurance During the for on the we the Standards subsidiary. Update our implemented quarter, Accounting products targeted books life we This most of the XXXX-XX, contracts. improvements accounting

there. you're it's the to business of the underlying going has our any comprehensive of life insurance or have in filings this to lead that earnings between increased disclosures While amount it additional rule some of earning does to new years, effect and shifts see our not economics book going on

our the call. the portion I like the to that, operator, to question-and-answer would to With of call begin back hand Dave,

Operator

question-and-answer question the Please begin The Instructions] Zacks. first now ahead. will from [Operator session. Ralston comes Steven with We go

Steven Ralston

I'm some is of the Obviously, factors morning. like equipment one-way are your seems Good COVID affected. deeper, macro-economic that one-way created by how being situation the down control. that of self-moving was business. years to rental ago traffic couple the by out looking driven is the it the the your wondering market that from in But being effort reposition -- fleet especially given business slowdown

Joe Shoen

three of a mileage mile Joe. of they or longer move peoples' to into our they majority pretty family grow The also that of mileage are decline, times consumer these move. I'll moves seen in events, for that's At but confidence here. and Okay, a that see seen speak are my rentals. and or the going decreasing, rate, this rentals lifestyles long-distance this what even in a time entire people's driven shorter is during shorten And one-way minute. I've just go career, and a continue people least it I shift vast results in we life kind retire, believe their we've optimism to by necessity, willingness people on of

cost, you just get like truck, though which costs. are repair quite your versus of would of that personal the we're in like rate, we fleet trading Our or capital able for repair, And to is it's optimum costs buy kind the balance fixed-cost life, anytime to depreciation. not to, off purchase car variable it a issues

So bit -- answer on think would the That but that fixed-cost. units we of our rather yet. have availability says just a would heavier favor questions? little your experience be the balance today profits, We here many don't balance that

Steven Ralston

equipment the how has about that equipment the from thinking more California was and I dispersed. let's migrated, not New is equally York towards Florida say,

Joe Shoen

We equipment, they we're which of communities around we more would what are the call North and some not. unproductive be And retirement from the equipment Yes. seeing areas always localized, and think Florida what East in course, you -- unproductive more South. Actually, shift would -- buried they'll have simple the to call, than we -- imbalances. we Texas,

think a So, teams my a job. there's and does got job, on it a now a they right Florida of doing pretty out. balance good team And I into of more If we've that. lot better rent whether go job. in is we that are do equipment better factors Texas Part

and of juggling. we imbalances alleviated just they've is a that. But constant So, have other kind this

Steven Ralston

you. Thank

more there's address anything about like completely, some expenses, in the are different X% dynamics components at it the expenses? to But specific your something to interesting and through not looks under you items. X.X% you're control, the mention though these increased using the Looking Can inflation different line costs. that

Joe Shoen

to because other more, there probably and steel. but a course, an our end a in people Everything wage We're our as in that exist, rates, see on to lot the is electricity wage people to Well, areas you experience which is we're there's point-of-sale, people they catch-up the with little catch-up pressure. from if that's it the seen And truth where in inflating of that. seeing we've is are of more purchase bulk -- retail little too. pressure of wages there's trying seeing just

controlling of have but far I don't inflationary are and the on. would but you kind to as people celebrate, paid So don't going as getting go that. we more, it's that's on ball normally any -- spin

very can we making hard labor simplifying intensive. them we processes less and work on control What is and

just a rental there to just very same, it. is simply physical. tremendous to So, is certain rental truck is Trade degree physicality

just our which its be recently would think transactions. XX/X, X-millionth one initiatives, several have We Truck Share broke I

-- so it means good. getting we're date, Now that's process pretty but program working to that

years. a we're the not that also hours on much overall, this to There's U-Haul two more -- driving the App. to would basically point-of-sale. We And continue I some the three needed works. that and participate say or to App work more for a to But customer the that. refine results in I and That's or yield lot think at will reduces of have we on And focused perfect room activity it gets vitalized of U-Haul equation.

something going So of deal not I cost to better of end-up. think materials. get our on countering building does or a nature We're best deal on increased that chance

that eliminate it less going result can win, which So processes manhours to better per technology labor, that increases transaction. that to in something be and in some efficiency done, means we're will some get

Steven Ralston

one just question the self-storage last in And area.

to the way the XX% of weakening. is it's and other You mentioned that assume, subset for least there's was an interesting at worded, is nothing just months specific purpose it's overall decline stabilized at trend that that that decline segments market with was the the XX but I than was that it industry consistent consistent and has show there showed at general and occupancy -- that -- of to said across the most about and there number. what you that worry the look therefore you the

Jason Berg

comment. general that Jason. that of It's Yeah, the thrust was

Steven Ralston

for right. very taking you All Thank questions. much my

Joe Shoen

Thank you.

Operator

Carl question comes Keegan from go Please next ahead. from Research. The Wolfe

Keegan Carl

Yeah, thanks guys. for the time,

that locations last includes added obviously it X.X%, down over months. being business the were moving the on first So, XX

just it down like-for-like of basis, curious true on kind you what So year-over-year? have do been a would think actually

Joe Shoen

more a of always also add new moving I location, about that careful I think on we what It's And a many our don't that not how these because to we have half business some -- that's fair cannibalizing number, when just of it's have those than there complicated be new it locations And but been you through new had we're brought by independent do question. stores. undoubtedly dealers. we cannibalization that dealers. --

if part of still we'd that built, So been revenue. they gotten hadn't just the

of or have to rest on it specific any it's that, Jason, That have firm might there's very you that. new XX% fair. more don't XX% location business. you number I want I a assume on cannibalization is specific. then if know, And and don't the be If

Jason Berg

think don't that's interesting on I would question, that if decrease we know seen Yeah. a to that. I Keegan. part. be material have that's a But going much bigger don't

Keegan Carl

to about I guess, super to shifting way know, helpful it's storage. gears think it. I

rates? for challenging points would in sense broader like know was what So to to opening said you're you guess the your lower it curious group is, obviously, the just market. given not to lowering you remarks it take see start your XXX occupancy that peer down and basis street I rates I'm us street I actually makes but

Joe Shoen

size analyze rates. we manage by every that's location, and location every how Well, room we

likely us unlikely it decrease. like be something to If size. we see do certain put So, a a a more did rate in XX% you're in would decrease, rate say it

XXxXX upper non-airconditioned XXxXX on more rooms So, let's specifically, say, or airconditioned XxXX rooms the or floors. rooms, airconditioned

self-storage. bit might basically normal a probably our it it's of Well, you as capital -- in little all very or rich more in recently saw it, We simply bag you to than drop the it's call Street mean, imagine. there's course, a with -- can So I And tricks the get you whatever nice that to Wall -- in Journal of that bit have of very, want don't to a article specific. there normally said maneuver anybody is little rates.

people And in a situation. will as phenomenon. a great come board, tenants will the are next see in drop increase drop or that but mostly rates an a I the they they street, uncommon while, And at introduction rates up will they literally the uncomfortable an across door when competitor with move very don't because location that, drop Once we competitor rate later. our typically because we not that's lose of across XX days rate

those back to now everybody our just drop it disrupts because cheaper. overall. we'll of now In bounce some the And customers rate be meantime,

rates get increase a would greater responses, they So bit that's be tight competitive decreased. wait and to for and than occupancy situation our that typical they'll them little hold our specific and

what typically our is, Keegan. just So, that's strategy about

Keegan Carl

the you're stay? existing helps seeing curious change your storage, I of of it. And that sort out guess Got in if what determine on sending length then, rate you just how guys topic to customers? your increases any you're average of

Jason Berg

This each say, to, duration of looks out a compared stratifications like at it maybe I one percent. like last moved just our has Jason. that a is quarter and this looked year-ago,

the move a across say So has general bit stays. little portfolio, longer been moves longer I'd -- a there to

Joe Shoen

well moving place of to up these firmed a that moving people storage they're or because say, a XX would to or because short paradoxical, days real overall we difficulties little I in just stays frequent. they're And activity, less be it's a XX timing kind going this of waiting moving is little see for for as declines, seems or so not are out, not store bit that in the days lot

Keegan Carl

Got storage. on one final it. And of the then topic just here one

general, time storage its about in short underperform what over period. causes to if So we supply, think a often

footprint You don't opening plan now. right the mentioned you your in remarks, on stopping necessarily to grow

the from So, things, I'm you'd guess, what change? just to I need for of to see curious, operational side that

Joe Shoen

When back-off. that me in I be dip, is going to So, XXXX, bunch And at COVID prospects. broke of March, to had a I'd discouraged uncertain, bit it got little long-term months I and least so recover for stopped took projects. the on I whole get think, momentum this back COVID but than And out let's deal And say event, have I was I US for first would I'll again. a had, same time it's no, roll-through say, and me. if little being better economy wouldn't I a to undersupplied. XX

lost undersupplied So, I certainty I the no opportunity. is amount. was COVID, last There of half which

said Is of there and least. overbuilding? couple Certainly, years at a I've that for

than some this competitors. are needs we you can states, building different course, overbuilding. We're is place the exist. XX there's be find of markets operate and in All things beauty the choices should all course, suburb underserved these still so of local. in it probably you are make The -- of south And, some as the Of that's over aware, on the part more is of supply. It suburbs. our we north

which strategy -- are of is just be so all states. kind XX our And to --

one some been in doing, will squarely, not expanding that we just do getting fine structure we and smaller on stores So, I different always got it. interested going get they in -- of works to and they have what supplier. let's there. we'll people lot have smaller to markets which saw good those five market but that out in maybe try be markets aren't never be for that mass, what a have they're I in, because our And would well, because market, do it's management really will that's things market It's of confidence I radar a if search a the not is aren't great don't long-term enough from even in

slight competitors, our which them, strategy, one it but better a some difference other, than good difference. of work slight a in is the for And not doesn't is just

Keegan Carl

for me one And one final here.

Just of ton you sitting cash. allocation guys from standpoint, a a are on capital

several Because risk about best we the treasuries. that of how years? deployment like over where short-term might currently returns? be finding be adjusted curious And should it you're thinking quarters the few Just looks the it and next

Jason Berg

This Jason. is

rate of this that. short-term in we were rising government I So, lock-in opportunistically into we're treasuries we this on as going gone some purchased increase the benefited from rate to and fortunate and large income cash piece cycle we've in a securities and mentioned and out interest there. here

We've that capital, that credit going since that a already be not would cycle. on us at more want to some lending or I us the to that of raise -- think gives is is we are group. give that debt in anecdotal way to as some seen sitting tightening point small like, as our financing and sense buy we bunch a should that at into evidence trucks much the not our And we And will primary access we that should within point. ability of cash. time own are that going we have it flexibility we

we're over target bringing that, pipeline $X So, going closer -- billion mark. along goal us few for a our we the to the spending in potential It's have take down with back to point. up that next But $XXX several in looking is development, to of cash still million at increasing of years. years to fleet to purchases probably get

Keegan Carl

Really Thanks guys. helpful. it. Super time, appreciate for the

Operator

Steve next Please The Farrell with go comes ahead. from Oppenheimer. question

Steve Farrell

Good you? are morning. How

Joe Shoen

Great, thanks. Appreciate you logging on.

Steve Farrell

me. towards of the spread-out or or quarter that question remaining two? spend weighted Quick rest year, CapEx. over on for more expecting to next we thanks the the be having Are Yes, the

Jason Berg

weighted It two heavier next over be little bit quarters. will the

Steve Farrell

from (ph) supply get the it them? [who has easier manufacturers to And been forwarding]

Joe Shoen

to you but I as do, my fingernails. just They about fundamental which and hands automotive a on but reconfigure fits know as up, it them that's it's much it, question, their biting trying pace it's being at me loosening their the and snail's And was automobiles. made a they've to -- political it's job do probably which and it's Yes, full. causing progress has industry have manufacturing is they able --

way everybody. good stay We're with demand -- terms think while. productions are getting We they been and on a of has but units, that overall I that'll short just total their for

Steve Farrell

Should you turnover how age the the moving And be fleet do CapEx affects longer of that and less and forward? expecting fleet think we there?

Joe Shoen

a cost that the effective of is which get you fixed does, is in may happen. or much per repair we're the CapEx, the And or The manage variable our judgment. right which increases trying spot. our side cost. trade-off basically an per bit Well, tune that we're too to are it mile, And little to, of course, balances cost. cost towards If that basically trying optimum now repair mile. more With variable on cost

what market if choice. be happens, because you It constrained So, will because be has described was it it us. just our won't

Now that. number we optimum we We've can more go think done trade-off before, but of could replacement a through annual vehicles. that larger be

Steve Farrell

be how the and maintenance about have effect from thinking and the this increasing of repairs and the on we timing impact And year CapEx the will that benefits? should those

Joe Shoen

We increase, enough can my slow not the judgment. stop the in but it's increase, to

Steve Farrell

the And from first the next to start you year of will slow second more year do this half? or in the half that think spend half of first pace

Joe Shoen

I let stab take Jason that. a will at

Jason Berg

looks is could the We on year over in make acquisitions, a way year Yeah, from like, we coming a rotation units pace. up that of year off normal we new about out pace one, of picking finish last years. If the dent acquisition a maybe started well. in behind X,XXX the new Steven, reasonably this on it this few the

to at still four us out. as fast piece fixing bigger pace. how is would trucks we're old maintenance So years going affect out that The the that taking over put from

the So in. trucks new coming are

our think confidence a team for has the I more will -- there feeling be is new that little bit more trucks them.

older least maintenance them the lot one, this in that And think need we've attached we trucks removing first at I on higher older that in getting behind. a progress have trucks costs don't to pulled quarter the out of say, of fleet. start them. made I a to Now we're would quarter the

So trucks that's least of pull and some going to really the old here can them. another the benefits to we at can start out of start fixing to we repair quarter delay fleet, so maintenance until

Steve Farrell

And that. for moving self-storage. you Thank to

versus thing? big The other self-storage per pretty price the Are square drops move-outs. same you in REITs, they've reported move-ins seeing foot on

Jason Berg

Our X% year about move-in last what a than differential still move-in higher rates. rates were and positive are have they between we move-out and

in the moving higher people or we're are rate people than So, paying out. moving a at what

Steve Farrell

think top a insulated, heavily you is do Do as that's think for you XX that's And in MSAs? benefit concentrated not because you the guys? somewhat U-Haul

Joe Shoen

I'm so is. not sure it

rates. you good mean up take we've I -- good have I XX%. a they'll They'll REIT the watch they just they'll competitors. have our -- -- think a month week, could go jam

little retreat. So aggressive be makes sense? bit causes upside, little which a they on that Does to to the are more more them prone

Steve Farrell

Yes.

Joe Shoen

For an instance, we post rates.

Now, a The our different rates. in can next competitors rate. line get post don't person

largely different our strategy So, And have a and we our customer of they the have that it expectation tried and an think or one for reason for we is. what create them. another, strategy works understand we've to kind with

think a move street to month? Do Maybe, I of probably they to prices. want it, save not. REIT the customers down can figure many $XX just and the all all drop not aware, out maybe they're

do I either a bit built strategy And a we've give they customer down. is that kind more on and But they to way of little harvest the away bit the -- think relationship. I little know a little the up they just so, perfect bit on our more

Steve Farrell

And balance at you're the versus you price when occupancy foot? looking set to do where rental how per square rates rates

Joe Shoen

location, do we Again, by type. room it by

I a have it's comparable don't there'll so stores. or specific. so we different XX certainly And be Arizona, given room, up on XX REITs in So, so know, and -- here location Phoenix, pretty probably there

rent down staff Just what REIT if sales storage all, discerning -- get it's lot new they a have that's are going occupancy you're be of to they and you're department I'm to in more has trim and we do, the filling because right you the location, looking, more Phoenix they're pretty Metro, to much a the and at their some this and like right course, you on you're a cycle XX%, get to to and than where just up. are to depends that. that's that I'm how Well, going you're -- going have dissatisfied sales the been to trim XX%, there. trying the in time. be the with store store just work They on or for We're

Steve Farrell

on out And synergies the in self-storage same locations share level? to cost facility the that about specifically equipment side, NOI are standalone for I know cost and break margins you rentals, don't compared the But as self-storage. there or self-storage

Jason Berg

owner, It's those Jason. locations profits like the across asset way on a just way rental is would what locations, up essentially blended And the product many we storage a And margin to overhead you split that product it to have look look much there get benefits an the only. the question. have have like isn't that as -- costs don't higher truck product U-Box have product to work the multiple have might there. The line margin because a storage this lines. they equipment complicated to location. the a they are allocated certainly those cost line, going specific appear do be, line, measurement Yeah, From determining for the

to available think the for product all we best have So the returning customers. full us line the locations

lot itself. that by a statement so look self-storage income different a would than And

Steve Farrell

on self-storage release, question we state. for Are Thank included the by Got is, numbers the last And chart same-store the the comparable year-over-year? you. it. again

Jason Berg

like we put ways that showing look pool go presenting different that. same-store carrying that there's pool route. the No, and same-store So, couple a the year numbers the ago were years in represent there time, same-store this that right? same-store was back taking didn't year years. of that versus two at is We and way ago the a what two The then what presented from calc

Steve Farrell

whatever possible looking you of looking you're the -- at just the it Would same stores, to that same can of maybe compare include at them you're group cohort. so be subset both

Jason Berg

I last presentation with Yeah, that quarter would book people used happy Steven, from against our this and of the wouldn't what accepting theirs. than open since is for been competitors who it. storage found been tried and ones it's had so But comments I've I closed. this question, We've some the asking we the that. are fewer say feedback been to on have to an that index say

Steve Farrell

right. That's you all my my the much. I you very All And Well, call. questions. questions appreciate thank taking on

Jason Berg

Thank you.

Operator

next Craig Inman with comes question The Please go Partners. ahead. from Artisan

Craig Inman

guys. Hey,

this imagine on and seen from strategy I was Finally, they that have slowdown. I'd and one once guess a are these to there? that that in moving on means things know housing ago thoughts lot years business, housing questions, interest with but not should wondering from the sending in you've and afford strategy rates live some here instead change the Can on truck what obviously, macro questions. and kind of I consumer it transactions, I win I pressure sure. the of comment don't on just be? the seeing can about you we're I'm puts all a but for for in different perspective, business? around How that formation moving in gain big household household and formation want of rental but what you now than what were two

Joe Shoen

our your on Lot maybe heading the consolidation factors dwellings. to there. of more that opportunity. rental who me business Manhattan, rent of maybe those of of often, been focusing not will will and you're are say would going moving total people the One for people rental is housing rent big changes years. XX the who that for That's towards single-family are and forces form attempting recently family -- in the When two on the tracks I've frequency, drivers large most move the events. people to kind of more, property, people I life looking grows, in Again, impact

-- and of that's subset vacant that piece to that's them, movers But make up sprung and have services on trying our apartment them. become just these units, story most growing a really four in the country, but in has multi-family, see some of them land. nearly are which attractive you to characteristics every five and All basically understand very sure different we products can a way and they of we're tailored all

than that's overall building story Journal put you see a think Three I two, everywhere the be think -- get the [indiscernible] But they they of let's a a taken going more even overbuilt, I'm are Street reported on -- building they've little And to rates. to these needle maybe people bunch and rates. have implications that. but I continued they were of say the bet rent. I a understand moves these And maybe they people rising understand claim was to then move that to now to I customers again to the pressure than next today. heard I we're four there's don't find years ago, don't because of seem what pitches, than -- needle Wall interest just four, have I see five you rather again, So get what you own. up. own up go, bit them statistic, units, five rent three, that over the but you've want and going I would to that rather popping a can the they're sure And years, -- people

move more will more -- I while, compress this And that people really not drive but think people margins the to drive it who of rent mantra, phenomena consolidation own. like going but for maybe that's who it's ownership, little I rental our likely a seems always been just than Okay, to use. rent really are people think who --

who number rent, little can of it's the shift have in a people change going they this so, movement bit. to And

lease, and XX was And a a years crazy move It market, one was ago, month offer six free. they'd every six Phoenix trend. people months. month just

Finally, they they're but that, okay. quit was mile, a great because moving doing for it us

owners property, their based, this combination between amenities customers whole move money. our the Okay, And they know plan know these I whole rental we are I property maybe be properties. assume great. miles [XX, get. I great and big don't sensitive pass rate. from consolidating (ph), for encourage seven to people they uses people don't the trip They trip, and do. some that to mileage to can will able that's But think on XX] so I We going of to what quite get these make know, how to

So, And I for to think whole I is, be that opportunity U-Haul for may -- me industry. the to an be that's there. it if intend

Craig Inman

Okay.

thought simple business. a pressure that's it's ton new put So thank and really that rental sales to are of going on and affordability a down to the too decreased

Joe Shoen

you're I be would really conclusion. that right. think my Yeah, exactly

did. I said better You than it

Craig Inman

little question My there. long-winded was too Okay. a

which structurally? And more terms play much higher opposite this ages? the given the Sorry. REITs. than strategy in about in-place, the move-in How of the hadn't later, I this your operate with in-place difference how your how is you of -- are longer is would rates to thought REITs because all in Like go on gains how go through there trend much there rate as rate would

Joe Shoen

My of sure room, team okay? over XX% My question. units. probably $XX,XXX running kind says, at saw I'm of still not that we brain the XX the last is some believes wrong. I'm right. months, number they increases That's have

Jason Berg

sounds Yeah, it I sure. not am But right.

Joe Shoen

Don't familiar They I've still they there's they of of surprised. but kind they -- XX do manage. believe put the been going my have the room, team, to calculation, kind for days. next They know that with the they're what in properties are

from pushback customers, Everybody is seeing are in this economy. We obviously.

our And class find but that rate. class you at to all XXX% So XX%. There's your -- that second of study another see is in rooms full full, to my out course, going look rates to increases. They several almost to mix? bump of mistake the if it they're and rate model at. of And, Are promise team think is you are of line? did original air-conditioner that the for ahead always things floor those some a some rooms really occasionally look rooms make Well, year at you if looks in things.

Craig Inman

the liquidity the or $X you're -- some clarification finish on out then, talk to that include And about just on was liquidity? wanted Okay. billion catch didn't What there. in-place is developments possible deals? I how thinking fully

Jason Berg

right would to have on books now. That the everything finish we be that

Craig Inman

everything? and Escrow

Jason Berg

Not including escrow.

Craig Inman

to cash trucks conditions cash in Okay. of deteriorate, a fleet that to catch you're with case development effectively up? -- lot prefunding keep you is buying Did market need if and that the

Jason Berg

have where have Yes, I think it better it headed. not what is we've with we're than learned over time to

last spending well $X the over spend. two in been So years real on estate we've now billion

for couple cost increased to starting than units the to these new of that see we're next it and then the we'll fleet higher units be. least. for think number the the is continue I And of years at used is get because spend increasing

and we if the So, in purchased million quarter would of year, I first took that units that's prices, them last about bought we year this of say have if year's would the this at $XX inflation. you

million prices it's have two at $XX little ago, from them inflation. the We years of bought over

headwinds, are those of being cautious. we very all with So,

Craig Inman

be million at Obviously, -- tool. on then the on that said locations app, locations, can like the a it percentage going and you you group the some that? your X And but seem company going big does about verse the a to happening are for walk-in, to is -- there's percentage just terms business the that transactions. always of just in the of because trend in labor-saving how a you crossed show-up transactions of is talk color app be Okay. it Can company

Joe Shoen

what or go can we Well, Truck two which separate app subjects. One Share go the through can through... call either is XX/X, you

Craig Inman

through desktop. Yes,

Joe Shoen

seeing the good So, app. the we're to in people those growth We're transitioning app.

that with travel got it. we're XX two intend can of We the ahead adopted state top on we ago correctly I I to in steam there apps up Google. think the in run and weeks

[indiscernible] I maybe, have indicators to correct years steady room running growth. three that. just go, the just It but that like where on monitor we're -- can't will predict, trying we looks of apps Just

of and So, I I much will. for pay-off that's that very us think kind think it

The that way, customers their satisfaction. who do want will to increase business it

in all it. you on all to I'm want working if in what just I'm I'm on. on So, know it

I do I so make but stay we're here course I opinion, much I is to trend sure I and trying that of we're and How mobile, but go? handheld that's have big no far -- think have but in habits, know children adult to a will think they the your on to it way. to just continue it's grow. going like and don't I

of competitors and who to every there's Of bunch want now. in Internet be disruptors savvy they course, industry people industry a whole are in another of group the world even

tech so So, better people. to ground we do, don't I believe do, is to they have we plan those my right than than to have give now continue that better tech they and

Craig Inman

filling when quarter in the summer. rooms pretty a Last was one. remember it. Got I XX,XXX good

Obviously, more Now changed we're of years few doing XX,XXX but... better? that and so the more availability, Anything fill rooms, have been terms last above the faster, that. [indiscernible] something to you have in ability in rooms

Joe Shoen

We the rooms. tense. placed have in more They're present thoughtfully

that are old. We have stores XX years

have old. that stores are XX years We

You hard that now location is So as it see. as once was?

load/unload -- want of but So there's we all, newer amenities customers than we're largely small levels a exceeding certain stores bathrooms are or have of better. right, The little services we for good but doing add-up. stores. want certain this to competition. online those good much nicer. consumer, whole move-in their they they These areas customer course, And, in they online if and better adders The they process whole are -- have a the we move-in and seem room at new the as have things, because service, expectations the are stores, our

newer XX- percentage real portfolio. in our that XX-month-old that -- rooms, of say changes So, things I the -- or has own the what percentage let's think say risen new

think this. I with lot to that had that a has do So,

new You'll a see place pace. online start come it at running feverish and will a up

really first for that rent overall up the So impacts or company. XX% your occupancy just XX% rate

Craig Inman

Okay.

or strategy terms the marketing getting mix so -- So smarter in no newer there? about nothing in just of big change

Joe Shoen

smarter I capitalism else normal race. mean, getting too. is rat everybody But

little we both they a learn normal the little out trying are capitalism. thing just and thing a is doing and other one figure learn we to So, and it's what

strategy of and truck have we our So, a because slightly trailer different business. rental

we're to for. no people say, that's -- would so in trucks rent appetite up so, have just even making more places just at happens And Canada, let's most we expand, in and we're Wyoming. We're of But are all competitor most some it them Wyoming, work. our [indiscernible] over interested we end

is so, what secret a call of and -- son them -- them bunch my increment. when is And I very all. tiny There's you -- a everything to there's that execute likes sauce,

more fundamentals. have a new store say the and and I anticipated. would I we're on or If go came I what we Well, know rent-up let's failing So upon maybe through rate wasn't those out amount the find do curves. in up tremendous on just a in we'll store, involved short. basically But where a And selection. that up, we're sites tune up the rent one work top-down there's

all the spent that think get to effort of want a I And we that's site. -- You expense. and tell I And money. right me all of lot Jason, think

the I all our through selection site think basically expense just flows costs.

Jason Berg

to. We as as capitalize we little have

Joe Shoen

Yeah.

towards over And we're to I a it's -- time. if push, that which money way comes it just not -- So think just I we push of that think you lot back there's question expensing. -- the to

want You it. could make do an it, don't to argument for just I capitalizing but

Craig Inman

pay now. -- No -- taxes need the defer you defer that that to better

from Okay, that's me. it Thank you.

Joe Shoen

You bet.

Operator

like question-and-answer any remarks. for conference our the over would concludes I closing session. to This turn to management

Sebastien Reyes

thank for Well, support. everyone their

of accessed live you Thank next And with we Eastern, at host then We August on Pacific, look the can from during investors.uhaul.com. submitted And can on reminder, sent X:XX Day ir@uhaul.com Thursday, hold Meeting. hours Analyst a the for our or week. events XX:XX Investor to event. forward X:XX will one later two week Virtual speaking XXth Day. at to we'll be XX AM As Annual you. AM at portion web our Stockholder today PM Annual at and the Both our Q&A be the Pacific, Investor prior questions meeting

Operator

for The concluded. conference now presentation. attending has today's you Thank

may disconnect. You now

U-Haul Holding (UHAL) 10 Aug 232024 Q1 Earnings call transcript