LSI - Earnings call transcript Q4 2018 | Life Storage Inc

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Operator

Greetings and welcome to the Life Storage fourth quarter and full year 2018 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference call is being recorded. pleasure your my Mr. now is to host, introduce It of David President Relations. Dodman, Vice Investor sir. you Thank

begin may You

David Dodman

Good morning Joe to later Officer. Leading Executive and welcome of this today's conference XXXX Officer Gregoire, discussion call. week earnings and will Chief Storage, be Life Saffire, Andy Chief our Incoming effective fourth Financial quarter

reminder, a statements. and discussion your to As answers following the forward-looking questions contain

uncertainties differ actual projected and company's those may risks from with results business. Our to due the

company's factors may Additional lifestorage.com. A be the can SEC information the release supplement filings. of in quarterly Investor these be press our regarding at copy found on Relations and page found

Please As a questions thereafter. with this please to you two any time, reminder, that At questions the turn I Joe. today's participate. during allow to time we who call re-queue ask yourself everyone over to session, follow-up limit for will question-and-answer to wishes

Joe Saffire

conference and Dave year-end and Thanks XXXX everyone quarter welcome fourth our call. to

a we of perspective. from capabilities. our been recognize Storage. the platform XX broadened Board geography take service has meaningfully. a put number we in of into the And for scale to to his commitment remain to can on embarked that results, years industry want over on CEO continue as benefit delve have the are time. dramatically. Dave changed our company lucky valued as the industry-leading will fore our and initiatives technology Dave, pillar a and We our our where and his us him significantly. as Life to Rogers competitors well we ahead leader of we We of third-party and added management Dave diversified Before founders I and Under of moment We a one

our platform to Storage take As team. the and I working to hand complete the next level. quarter a I to make as you, results. with transition yesterday year. management. to we we results per late to team. $X.XX, Life We full our the XXXX driven am and proud were quarter now be you on end you in promise Thank Dave, reported passionate share to building week but and quarter your We about pleased at will the range and results fourth CEO, high third provided I for guidance details thrilled this to turn strong. am conference fourth speak year shortly the respectively my We of full core to Andy were for asset that of call. FFO the achieved $X.XX the On both the very and

discussed million, and prospects. the approximately optimization executing are venture equity on properties and XX order $XX on the a assets for proceeds sold We and In exchange prospects. quarter, revenue to we to fourth reinvested joint into $X strategy into the mature balance of the better in growth properties growth to higher back we with a entity stake newer attractive with newer markets the improved more XX% demographics in million portfolio have exposure with contributing previous increase calls for

properties. pay JV these acquisitions revamping to of manage to The continue our has We dividends. started team

that almost added we in including quarter, markets the properties $XX six Sacramento York, Boston St. Louis million. Orlando, New and fourth properties quarter for the two located and are During $XX in million. the Those Sacramento, stores third the acquired for wholly-owned Atlanta, in we

plus fully we XX% that XX% stores old. We into are that with rent old for the of have to seven stores successfully We respect proceeds square XX moved moved we were asset to mature increased and average nearly roughly out less And the of occupancy on average asset on With XX the sales. years from store years ones occupied. exchanges, $XX per stores redeployed than are that foot have traded $XX. these

have revenue per per improvement. store which improved over a We to $XXX,XXX store XX% the is per nearly million opportunity store from $X also

on rates, capitalize of we mid-Atlantic, with market have and these continue partners various growth prospects. New XXXX the We portfolio additional in consistent improved opportunities proceeds continued million JV of to will our markets. with and on the in a projects the the acquired almost The expectation of to On and our fourth favorable year $X identify and hope close of in are one transactions that I per these In characteristics million contract opportunities upon end revenue to and since impact described the XX% assets upgrade totaling we lower conditions the store closed stores that XX by quarter. are stores expect be million. ownership from in to January, in sales York in additional We those we mature higher note, for under occupancy reinvested Midwest store with to $XXX to than another properties quarter, of $XXX we Southeastern newer, act third new remaining began. greater Queens, the up

avoiding assurance to therefore, remain contemplated that However, industry. subject further close competitive conditions. assets should add I the bidding. terms. can the and ongoing relationships like our develop is due to are the a to diligence our off-market, efforts currently throughout these opportunities the of they be majority to will we that given under that no be contract closing further auction And were compliment purchased according have or secured This thus

assets will in asset dilution higher investing result prune lower will minor in Our strategy growth to provide FFO details in shortly. and rotation Andy stores XXXX while systematically

cap our future growth However, we improve these overall will transactions believe portfolio better our position portfolio rate. for and

Now to New strongest favorable New our performance, markets major growth in generated regard XX drive we revenue same-store trends with Sacramento on XX We and With continued New Vegas, LA, the trends. of England, York, to Buffalo, Cleveland. positive in to operations. Jersey,

unchanged of view launch and generally the are Our markets our same. remains supply

to in Texas markets Miami We Austin. Houston of pressure see and continue Chicago, our and Dallas,

in third-party We to up we wrapped X. country, for to hotspots XX of year an to record and successful under All-in XX high-quality platform We a such XX of in additional our the onboarding the November Southeast contract. as with stores Denver. regard and XXXX, on have some Nashville the stores are platform. not our the stabilized Portland, added as With exposed

of properties the two holds Toronto American largest And years. XXXX, to Greater we where almost Life portfolio of of end managed year-end, markets. That's one four now consecutive for in XX% year the ownership our North properties almost Storage managed increase includes interest. no area, As the an XXX% subsequent added

we third-party going business management are about the We continue drive generated excited to our have additional forward. traction will in we and business

also purchase opportunities. of robust pipeline off-market The strong. remains platform provided pipeline of with Our growth our us has third-party

the were managing. stores four of above, mentioned we Rent fact, In Now. acquisitions were from On to

self-serve are continue We and Rent customers rollout Now, skip to rental the who counter. prefer platform to for fully-digital

As Now stores We We we owned second ways leader in this and lease. managed XXX in is about our providing digital technology multiple Rent portfolio prospects remain available of we on track quarter. remain and across are today, the rollout to the our of a platform. the believe in to excited new complete industry-leading sign

customers this BXB we our anywhere matter. Anywhere, changer And Warehouse homes to our Our BXC game or for be continue strategy self-serve the believe finally, to their comfort of from industry. in the a differentiated commercial We for invest that and option to customers. now in have

Our rolled fourth quarter. we enhanced out in pipeline the continues to portfolio grow with product the

paying our views more website. X,XXX an are in with digital marketing grow expected and from of It's views warehouseanywhere.com XXXX expected means off views XXXX. More to efforts a leads. to hits XXX,XXX to Our just number in views

brand Our gain to continues Warehouse traction. Anywhere

resources development support add to business to We continue business this growth.

from fact, logistics storage traditional FedEx. we probably executives businesses company only hire as such In are recruit and the to

role are firm We delivery can traditional believer a the that mile play in last storage e-commerce. of component the with

team Association's Magazine In February highlighted summary, for our to to excited Self continue driving the concerns and strategy place shareholder am Andy, in remain, XXXX. Storage we are you. Though We I Warehouse offering. Globe of a value. the have supply over excited that issue Anywhere great

Andy Gregoire

Thanks Joe.

$X.XX increase These growth $X.XX near FFO facilities. at results of share, a the Joe performance mentioned, driven from to forecast as continued same-store high-end night were our expected for same lease-up of we well period the funds better compared reported As per last than X% XXXX. adjusted in by operations share per of as our adjusted

same-store is X.X% controlled achieved growth of NOI expenses. highlighted by growth and both by improved revenue Our performance

the square foot Specifically, guidance per the period realized exceeded X.XX% last high-end rose quarter decreasing increased X% the driven well same of same-store same-store X.X%. which year X% over expenses, of quarter while taxes, was Fourth growth revenue high-end by range. rates achieved X.X% X.X% fourth were rates. Same-store NOI our revenue over The the rental outside property growth our improvement of in of controlled, XXXX. guidance the range,

showing the at stores continue the teams Our identify expense and up is on to side. this efficiencies

significant being significant expectations X.X% was only the which tax in was the said, the below in increase expense quarter. fourth anticipated, As we wins we taxes revaluation property property That from had increased pressure Texas. as

to stores these add the we addition the performance early lease-up very quarterly In in expect see late this the we purchased and added stage. With trends same-store grow. lease-up still to that to of portfolio, XXXX at continue have occupancy properties occupancies in XX.X%, to properties or We our four growth additional certificate to at of in consistent of strong properties we room lease-up group XXXX. lease-up

increase other operating management in reflected increase a Our increase in fourth revenue by quarter also overall a X.X% XX.X% driven third-party fees. income,

quarter, until we XX at reducing available we credit and to spreads have rating. included had credit investment solid million flexibility quarter facility, meet Our of of requirements. opportunities refinancing we closed current the of hand XXXX and end, balance remains on of our credit. significant $XXX the maturity revolver At $XX.X million on capitalize the fourth the attractive points continue they line on extending basis on In our return which sheet our by very the to grade March when and investment our on cash bank

is is average our of weighted fixed total years rate. Our and debt debt XX% maturity X.X

our Our healthy debt improved net debt to coverage recurring was ratio a times. ratio X.X EBITDA to and X.X times service

positive of X.X% we to anticipate room, to same-store remain although cautious currently Regarding we XXXX X.X% for due the new Therefore, year. supply. impact guidance, achieve growth fiscal our trends same-store we in pool of to revenue continue the

to X% effect in expect rates X% X% Internet including for are acquired lease-up marketing pressure stores property spend. for the that our group of taxes with as the cumulative and XX% practice, expected growth X.X% of in full at with from grow Consistent early occupied of NOI stages to same-store XXXX. the in market we any in than the assumptions our of of year. taxes, past prior we grow The beginning operating not less Excluding expected payroll to year. were cost year to results the these same-store to are X.X% Property X%

by XXXX Joe out As rotating growth lower opening in explained limited remarks, optimize newer attractive demographics to expect markets continue asset we our in into prospects. with and more stores opportunities stores his of to in mature, with pool growth revenue

projections of to incur mature share $X.XX we of have the proceeds newer, million million in potential XXXX $X.XX Specifically, we sale of for acquire to $XXX in expect activity acquisition and generated $XXX FFO our per properties, growth of dispositions. dilution higher from included Using between and XXXX. properties

net the value Including years. this in share will provide However, significant our Rogers subsequent the $X.XX for from full $X.XX for XXXX. between first and comments. growth the rotation and quarter asset per asset Dave FFO forecast to of optimization a I call to over year adjusted XXXX noted few strategy, $X.XX should $X.XX FFO we dilution portfolio and for potential turn now in the

Dave Rogers

Thank you Andy.

been in conferences I I have company which, This traded combined its of XXXX, Today, is original meetings. there Upon enterprise an XX, have helped our have $XXX for a well value call $X times Joe weeks to for reach. host. of the yet, NAREIT to and one. I do. still millions publicly Life its his we all a years potential is dozens MDRs is size. remarks, XX Storage's has and platforms, to completion XX customers that of people, quarterly then, city more was value they top than or And Storage of storage over XX million. brand, Life XX NAREIT first are held lot its enterprise Xfourth yet forums, noted earnings self with innovativeness, analysts and a IPO, since our privately been a As had The industry shelf. of billion, growing kind

legal Eddy and in from our here and is of Officer, marketing, expanded and C-suite, to Joe Directors their team lieutenants management, including and sales, outstanding, leadership Chief construction, Board to recently departments. Operating service the engaged finance, Our IT, our and data property refreshed training, extremely experienced Killeen, HR, confident Andy

support call confidence many behalf in today for XX you from have the past friendships excited thank I tremendous enjoyed over member the thank my us the investment share a Storage's we as on a the to Board, garnered We community, have have enjoyed of you relationships those deliver utmost well. strong and and The co-founders of Life story as have growth these Board shareholders. you. time and I the am of for placed ability in ongoing of including of I to you you the the many great and over years. and that this remain for you Directors. for part optimism to and Thank our in Andy operator, please And results outstanding industry the and prospects confidence questions I line of would answer? on all open now our for Joe question

Operator

Instructions]. [Operator

of Merrill line from Please proceed with Shirley your question. Bank Our Lynch. the first with of America question Wu comes

Shirley Wu

Best Good morning Joe. Congrats guys. Dave. of luck,

Joe Saffire

you. Thank

Shirley Wu

first guess to talk I your just I for want transaction. So question, a about

you So the have talk to the the have little the acquisitions into fund acquisitions? in timing? could Maybe given visibility markets so as dispositions much as planned well you a those about XXXX, you

Joe Saffire

acquisitions the queue have not that that Was yet in we Shirley. closed? have Sorry,

Shirley Wu

yes. Exactly,

Joe Saffire

dispo. we looking are my I These stores. properties they characteristics markets quarter. markets all already the I They very bigger we what are to the stores, are with are fourth newer that similar we remarks, and mentioned mean demographics in Yes. present. in are they the better And that to of as purchased

transformation the portfolio. our is We that are this continue We think to of excited going about them.

Shirley Wu

the about you acquisitions? have that planned fund to those dispositions What

Joe Saffire

markets less we The that dispositions? them are identified are demographics that per we about looking previously. are, have looking Specifically, quality but have assets. rates making talked square in are we are we to the that more past, They to are acquisitions. in are foot. unlikely are We are they markets smaller They They lower they markets buy may when in stores. in that

properties flow, holding us, that us been prospects So for interest again, over a are last years is for of lot these growth potential several going in of there have and but forward. terms cash are in them, back great they the

Shirley Wu

year-to-date Got even you net as your about rents? rates XQ street your as it. in effective Could and well as well

Andy Gregoire

it's year-over-year. slightly have street rates of with Shirley, rates increased as Houston, Hi Really, it's Street effective, were the a hurricane tale we We late XQ up about we We X.X%. comp a have markets. demand Andy. significantly concessions driven negative. in with had see Net tough in do down XXXX.

even comp then So XQ in that in in some But side, and was on QX, it a tough Vegas. have look QX. continue we other you to will the

effective up up We XX%. and Upstate, net Buffalo have And XX%. rents

markets. is it of a So tale

January markets comp February, biggest Concessions easier little the and are tough was side. last Our similar a compared very year. now. over were right January street to comp rate on

was in effect but net than it quarter. the So is still negative the less negative, fourth

Shirley Wu

Thanks Great. the for color.

Operator

Thank you.

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

Smedes Rose

was of talk little of Could to mature buy? spreads lease-up. strategy and a expect I properties properties. wondering some about you in versus you Thanks. Hi. think mentioned I just you are selling these the again buying newer bit And the still sell on

some then your drive So you strategy look and the can that seems pretty reasonable you time prices within occupancy across to just And what's raise now. a stabilization detail right frame like that? Maybe get will tough pricing led given later? industry confidence is it to around

Joe Saffire

Smedes. Hi Yes. questions. the for Thanks

markets. secondary On this the never been are for better close The selling that markets to time. has have going dispos, been conditions the for primary price never assets in at

are to markets of buying So A I Class want interest us sell. And earlier for bigger what really is are and markets mentioned to it's like what there lot properties presence. time. look we a great been in we And a we

buying wider. about We year this pleasantly surprised. about thought we ago, spread them Initially what what been have would when selling we are between the talking be started we a and strategy we are

with they these on There But properties lease-up. are sold, And way. And so are again on the far, stages CODs. we quite mid-five of funds aren't the cap. we various already their we well in buying, are all are are pleased first that they

of a our upside a are record the Most that mature lease-up well track better rates. in doing have have of these street lease-up idea properties is a where of properties But pricing there and We of properties. really we are to getting terms states.

this taking So really opportunity to growth an for is those of risk. revamp us without ton a opportunities

Smedes Rose

I selling, Storage you are And Life the brand, leave the that ones will guess? they

Joe Saffire

No.

we fourth Life So in It ones the sold quarter, stake. an remain kept the we Storage. will equity

the to fees the third-party management those. with next is And do the on batch. We will same have intention

Smedes Rose

ask Okay. to you just on been guidance, And it below the you, more attribute a something first that just then was anticipating? quarter there consensus I Do and people going forecast. what first is difficult on Or had your maybe can comp primarily in quarter?

Andy Gregoire

do things part did is few the $XX There disposition quarter we on, is that Smedes. in our And dilution a million of market. first in was We December Hi from right. have first the difficult comp Houston, going or largest in XX the that still is XX. XQ, what

So we spreads are XXX XX% bought December and we it basis versus what that XX% what sold because of we was XXX is, end what on what the the a is reason the buying we and basis occupancy bought and is there sold. points we points the what is between of it's

some first quarter on in $XX well. is that million the there dilution as So that's hitting

Smedes Rose

Thank you.

Andy Gregoire

You are welcome.

Operator

you. Thank

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

Todd Thomas

morning. Good Thanks. Hi.

luck just say your good endeavors. in Dave, retirement to and future want First,

Dave Rogers

you Todd. Thank

Todd Thomas

wanted just here again on follow-up recycling to So capital that activity.

risk disposition in the far the And timeframe on sold? acquisitions to and the What's how buying can the so understand those seems are then that's leverage like? increasing But bit along since you embedded guidance? it like selling little seems identified further you, of just sort you along first here in we a will the the and you get near-term, timing of it what's So here pool. be are have

Joe Saffire

Yes.

under I and have process close a terms, formal hopefully acquisitions and X. around we we along contract come that they time. chunk selling and July expect to very would of would of big better, well we moving planned also that for is And are close is we think think we did couldn't timing our enough probably working second are same it I out, We Todd. the expect have well batch it the this we around properties that that

it really, more So be ideal. couldn't

Todd Thomas

just then contracts curious And taking over you in Okay. of in that projects, the terms the Canada. are

the You mentioned area Toronto of in sort maybe Is considered there being the contracts. more justification seven either press seeing extent within are population of to which on million Greater or for acquisitions about some those by felt, release the unprompted of company? for management in for management we the a Canada, taking

Joe Saffire

there our before to third-party you bit time up the of U.S. years, us a was partner right many we go a Yes. what's the as and for always, And changed on one in I of mean terms in is past that in It's of longest we a it's walk very run. Toronto And of strong And clients. with have up It's the growth. the one for it population. we nice Canada, working a can growing you been and their there have fastest Buffalo support have day. looked market. know, we from many, see have sprawling a we just

there are this us future opportunities think for a in comfortable we getting At country. foreign are down the I road. time,

to run. learning are We how

We how are hire. to learning

go It's But we a Canada this would of future. in going that And understanding most are great are be with of activity the down bigger our would to road. We well, that in the market. partner a I expect player we things do foreseeable the laws.

something we well in think platforms see there ahead are of now. just Our anymore. a the could And what's make difference. And U.S. demographics don't I are the you

Todd Thomas

and describe versus in can bit a in market differ the Canada little of and just then, up dynamics the U.S.? might of sort sort of then following the that the industry they competition relative just how you to terms other Canada And in on U.S.

Joe Saffire

terms average see about Yes. supply, it's I of of we U.S.. what mean in half in the on

of REITs know is Public they seven they traded up competition think versus capita company, StorageVault, feet competition nothing of average U.S. I again, but is there. also a doing has the is smaller behind and we are very I But the of see up think are been there. are some The the we believe in A around private rates The are and hard web. But platforms publicize lot on development scrape things the online. good. per have Toronto. there U.S. mom-and-pops in that of a their of up lot that one is in been low. the in supply of the And lot again, there the There publicly the the U.S.. good three There large It's general rates to couple square web. we is what a don't

I like market running revenue immense be on this we as improve an and performance with in for up Now, team is really Rent so then systems management up once we but we platform doing and to there, how forward. to there it there our again, run stores. us our X, which great of been partner our far think pretty what getting so to January our the going has and see So a thank know And opportunity and get forth go quickly can't fantastic. there and such for could we

Todd Thomas

Thank Okay. you.

Operator

Thank you.

next Robinson comes Our the from with question. Kim your with Ki proceed line SunTrust Bin Please question of Humphrey.

Ki Bin Kim

what we can to morning. on? and Joe, I for am would LSI more you you expect you. miss changes Good can that where focus going are And the talk about Thanks. congrats Dave, contemplating incremental and you definitely

Joe Saffire

talked have recycle that prospect. today. been years, markets you over to over XX months company the a bunch have to last few doing better and priority last I has want stores biggest really the with about to year, larger And we think we have continue seen what what assets. our in is Again,

that. to continue do are We to going

our we always to to to going team. talent think be add I looking are

a got will team of our have We first changing. Science our the we Head looking talent can we hired place. Data at just We improve world in company But great from be and the perspective. is ways of

day. doing like and attracting businesses We Anywhere Warehouse things are every

join So traditional the such are from looking different forth. people company we stores of a as and people wouldn't for traditionally FedEx types that so

So I and continue at we see us looking talent importantly, to invest to technology. going are then in most

have I think innovative, our as platforms, are we demonstrated, best-in-class.

continue we we over We have here we of team is brought in-house, well great going are we technology. in to continue to invest something to and team our which in industry. think, then developing the And gong when and pretty to do That's last the last year that I thing, that. very started are importance acquisitions going much the relationships

our I find And for we aligned our be work like team. culture. continue Storage. like And acquisitions obviously to JVs, are for really think to us for It third-party and to everything They They management. growth opportunities Life like forward. helps these further going it's to with relationships. important. for seems develop People going

Ki Bin Kim

have saw program carried second rent incremental maybe who just would guys obviously, year allowing how last into the revenue we above Okay. thought, XXXX. big should forward market rent letter think positive I you increase impact go change same-store a to increase let above? you And it your nice would be have above year, letters I but much a last through And the rate change by I pretty existing was customer market. the And customers to to increase get made a

your maybe or you and there can embedded in a from XXXX same-store about is program? bit ECRI outsized the So the talk what growth revenue is contribution if in not? little And guidance implicitly more

Andy Gregoire

Ki Hi Bin.

as to XXXX. remain we we strategy, are as in-place aggressive, in the you Regarding were saw, going

continually doing got calculation. X%. the exact it's to perfect with tweak out but We monitor We somebody those affects, to when X% the does And it's somebody rent X% a and moves happens increases. X% how when that an expect would is Because moves expect through the not what would it that we will. what we not to and and out to science algorithm, science have on get to specials be out that what rates spaces of contribution it and to in-place

Ki Bin Kim

that, if slightly in what rates for take So probably negative I as net mean effective? are XXXX you does street that looking implicitly

Andy Gregoire

gets think that thing we comp way, I go going our easier occupancy as we with year. to through would we the in would it's won't I expect but see But especially with through biggest at, to easier same Houston. year, an will the increases. It think are where occupancy. go comp as start we the year markets that the become

the it from most So come in-place will of strategy.

Ki Bin Kim

Okay. Thank you.

Joe Saffire

[Indiscernible].

coming XXXX. supply XXXX, of lease-up new bunch the from we a with are Just on those seeing XXXX, deliveries are for and still then in mode expected

construction. Fortunately, somewhat deliveries and the we new peak believe XXXX is of

We absorption terms are what a an bit there is phase. seeing a of in slowdown we monitor in of planning. But

going feel that's to pressure rates. street So we

Ki Bin Kim

peak on the as for you new would up whole your or a said XXXX follow impacts is When And in deliveries, just portfolio? that. industry what that a for

Joe Saffire

Well, we five-mile radius. store monitor in what's our three-mile,

we peaking. hot. from are what's some stores follow it's quite believe our where as we closely Portland we from and stores, in is XXXX markets necessarily of such So as don't our But the affecting other

Ki Bin Kim

Okay. you. Thank

Operator

Thank you.

with comes question. of question Capital next Our proceed BMO Jeremy from line with the Markets. Please your Metz

James Shin

benefit Hi. morning basis question. Good rental This to XX looks guys. is it to in should XXXX? XXXX? you year, million, benefit $XX then that And a expect expect XXXX. had a higher in widen on million similar for Shin, was benefit spend income for like this Do based $XX to point on a guidance expansions I just James we your roughly in Jeremy.

Andy Gregoire

knocking points. difficult back of basis the calculate. James. that XX putting envelope to place. But it's same-store, The we The get in are to the you when to buildings buildings Hi down new very contribution we can are

that, impact as been has pretty constantly the we So constant. year-over-year, do

we there that is that So process. stop until really impact not

We expect QX. be some the hit fourth those We opened had of very spend in delays things some similar. actually in will the getting some to and in quarter

up that we the during think only XX-some odd million we I year expansions. opened completed

spend total on will probably So But consistent. will have that openings very be more XXXX. the in

year-over-year. So should very consistent impact any be

James Shin

it. Got was how of right similar million, market do JV in then $XXX to the you on XQ? the to on a for And those that is now? much dispositions, contribute some then of And look

Joe Saffire

So we JV, we the that a right total $XXX our expect million to is party, and not similar intention. That's but do same have market what with now a similar necessarily structure. a

James Shin

are it. $X.XX include going to And then they the fees JV, on a JV? does into $X.XX put I management be Got the guess if dilution to

Joe Saffire

Yes.

James Shin

It does.

guys. Thanks right. All Okay.

Operator

Thank you.

of Steve next question. comes Sakwa Evercore with line Our your from question the with proceed Please ISI.

Steve Sakwa

two Thanks. I questions. guess

you you development. this you guys you are in guess curious, of question. mentioned am starting yield, people And your a on development with the where work as to Joe, they look or core abate I look that's markets first would at to bit. are today? see that guess I kind And just supply First that

on for are I revenue you topline of but The second how that the business sounds like just that, baked XXXX? corporate of sort into saying. really what one growth is of am excited about you It sure you that are and pretty sort much not

Joe Saffire

spent store have. out we focused a business, start is of Again, question, with know, several you the number I on will the years. XX,XXX second for as network building that We The BXB years Steve. something we

building web gaining believe difficult the attracting, really delivery out to of copy. and some and for re now we we that's product hit actual sort and that on So that quite And the anyone recognition. of the suite

to advancing portfolio stages expanding early growing. great reach. suite this our and is But who an some are business. It's have their clients again, We

forward. at the about we rent the all-in, million think, going least it's grow can $XX fee. you and we And I conservatively, include this think to when XX%

We ourselves. are developers. In don't develop terms development number we yes, with a the of of yields, working

talked some But participate around still again, the looking are the investments of yield the X% about I have We to expectations some in developments. is think in we markets doing early in.

Steve Sakwa

Thanks. Okay.

Joe Saffire

Okay.

Operator

you. Thank

Our of next question with Eric proceed comes Street the from Please Frankel question. your with Advisors. line Green

Eric Frankel

on Dave, in fruitful new you. Thank luck best career. journey. your a Congratulations long, of

Dave Rogers

Thank you Eric.

Eric Frankel

spread. trade narrow through to just the So seems go Can first what just bit to That describing Sure. $X.XX the rate of relatively dilution high, the little question. in $X.XX? terms you relative a and you are cap the calculation,

you you. can talk just that? to maybe So Thank

Andy Gregoire

Sure Eric. to pieces Two dilution. that

We work. First least dilution, upfront XXXX, to million on on since be put will great million at basis forward, year. whole the that the that, at the would be that of is upfront going points the end for the yields put sold dilution work. a XXX $XX $XX obviously The the but to we

guidance is the XXX whole in So the are the or XX% year. that occupied buying is $XXX dilution about spread. thing. same basis assets we for There The so. points million The are is

points of on closes $XXX a that. all million so this XXX the if the calculation took on for dilution basis So mid-year, half year, we

Eric Frankel

Would would And Thanks. Is quick be it that the follow-up probably correct? you am assuming I Okay. just on keep lower dispositions. similar what stake selling. or it are then you a XX% in a higher?

Joe Saffire

Around is XX% our goal.

Eric Frankel

Great. you. Okay. Thank

Joe Saffire

you. Thank

Operator

Instructions]. you. [Operator Thank

of question Hughes the comes your Please Jonathan next James. line from with Our Raymond question. proceed with

Jonathan Hughes

Hi. Good morning.

sooner, stabilized curious impacts but was XXXX the on and can directionally same-store vary given or and other the same-store rates? I factors more taxes assume assets NOI, added Just on revenue growth NOI expense are what of for some less given it change line? know I positive, the definitional

Andy Gregoire

the were definition. at CofO them same-store They stores added the XXXX. our end were of the in rates. in XXXX was really The that of Hi change didn't XX that group. to stable And stable be at will Jonathon. We there

So were of at in the did they them We XXXX. end stable. XXXX not

in them XXXX. had we So

be XX they is XXXX there those. added and in of So will

ones XX% of see the than, greater them of than on end were greater the in schedule ones most You as the supplement, of that were at can but than XXXX. all the greater them the XX%,

then will were in XXXX stable other back at they of and So added. that three end they the suffered damage were stores there be XXXX. And

as will well. they added be So

you We the it, points see in pools and different do, always or change new expect pool the not XX pool. we the we show each pool. the expect, will small would old be between as it would difference would basis I less So quarter. and not

Jonathan Hughes

of occupancy had achieving would because Yes. XX% in this Okay. first be quarter, be just said second I they little quarter, added. gotten confused year last a would After year. after the said added it those the it

Andy Gregoire

correct will that. we So

that's the going same It's will case. We forward. clarify that the definition. But really

Jonathan Hughes

year? Okay. guidance? then should trend from and the All on assets what's how throughout that I the growth And guess same-store the right. NOI new contribution revenue That's helpful. And

Andy Gregoire

those The -- addition of

Jonathan Hughes

By X.X% but that or any helpful. around be so, would numbers

Andy Gregoire

in change to we with all first the we supply, affect say, After would line. the revenue QX on pool stores supply a that will would with Houston. I would of expect new the pressure the Yes. expect won't much new tough have but comp put to continue and rates the

Jonathan Hughes

the follow-up. again congrats And retirement. Dave, will I on Okay. appreciate time. I your

Dave Rogers

Thanks Jonathon.

Operator

Thank you.

the the like would question-and-answer closing any our call Mr. over to end turn Saffire remarks. I reached session. back to of for have We

Joe Saffire

you day. at want you I to good cal thank this we today Have in year. dialing look all shows to and a Well, seeing various for the forward Okay.

Operator

Thank you. teleconference. This concludes today's

lines and may day. your this You disconnect your participation have you wonderful time. a for at Thank

Life Storage Inc - Registered Shares (LSI) 26 Feb 192018 Q4 Earnings call transcript