Extra Space Storage (EXR) 31 Jul 242024 Q2 Earnings call transcript

Good day, everyone, and thank you for standing by. Welcome to the Second Quarter 2024 Extra Space Storage Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I will hand the call over to the Vice President of Investor Relations, Jared Conley. ahead. go Please

Welcome Earnings Carmen. Space Second Storage's Thank to XXXX Call. Quarter you, Extra

statements to we Securities that In supplemental press or defined to the differ questions our with those addition release, encourage statements forward-looking Act. on and to as stated company's website. implied Actual qualified forward-looking risks company's review. uncertainties from forward-looking may remarks the due listeners could by contain our cautionary materially statements financial the the the have our Please with Reform and prepared remember Private associated business. These management's in answers in your we statements Litigation are by our information to SEC, unaudited contained which filings furnished results latest

of other management's because July date after assumes Joe update represent The company revise as over Officer. time or obligation statements of Margolis, any to conference forward-looking would statements to Chief conditions XXXX. circumstances estimates no Executive market now XX, to like or call. I turn the the this changing today, of Forward-looking

to you, our for to our and due second thank improvement steady per same-store XXXX July. for outperformance ending outlook. Space projections occupancy had areas our internal everyone, quarter, the us in occupancy quarter, Jared, joining FFO share We today's XX.X% to multiple We experienced in a business, see Thanks, continue allowing great of call. exceeding FFO and increase in Extra gains at

rate period, XXX point move-in improved year-over-year. quarter and basis occupancy second average basis improvement approximately sequential XX%. first our same the a quarter point by Our occupancy gain represents over In XX the

contributed last of occupancy move-in increased rate moving The year-over-year. increase Space it rate. gain still X.X% average However, year's a Extra revenue about in below same-store and is X% to combination

quarter the for X% internal projections. last better same by period to compared increased expenses year, marginally the than Same-store

increase levels. occupancy of significant XXX the improvement quarter we and year-over-year XX.X%. XXX for X.X% revenue an a gains first drove the growth the basis finishing basis in at The Storage quarter This gains same-store pool expected, for pool, same-store represents points occupancy saw point of As year-over-year. Storage Life Life over

Given through Storage we properties move-in Extra expected pricing placed Storage quarter, we Space new significant comparable eliminated the Midway rate properties. gains, the for pricing to the Life the discounts at with the power on occupancy and generate stores. customer par Life

improvement However, the Life been stores our the at Storage has below internal projections. pricing

maximizing revenue We are stores. at is confident our approach these

and rate slower has that between Life remain than Storage stores However, over time. will gap We progress Extra convinced close we to anticipated. Space the been continue

Storage now can our X.X% in second and half Life The of same-store projections. and areas significantly than project particularly expense utilities year-over-year, taxes efficiencies, expenses, payroll year. for lower and a property team the job with property expenses respect by has controllable of great to increased done better R&M, additional the finding internal we the

Turning to growth.

a large gains. XX environment the internalized transaction expected our factoring departure stores, stores portfolio capital-light make muted, XX that added after in While of managed third-party growth continue the In to quarter, programs netting external we the management. remains

to added ever. of the halves XX the the stores year first we have Year-to-date, strongest net platform, of one

in program loan originated million this bridge our $XXX quarter. new loans with in Additionally, expanded

at working including the efficiencies all platform other operating business, scale of have find tenant in operating to to environment Our the of and meaningful drive to growth G&A despite greater hard and sophisticated the the in stores. areas business We're to wins areas difficult continue FFO led insurance.

now Scott. will over turn time I the to

Thanks, hello, Joe, everyone. and

As Joe had good steady mentioned, revenue by we driven and a occupancy quarter, growth.

guidance efficiencies our we season, end basis the negative X.XX%. to range are taxes, property property our operating broad from scale. greater the midpoint we raising level of to G&A utilities revenue bringing have come to savings and expenses, specifically and Extra savings, continue bottom XXX G&A repairs on same-store we of and through maintenance. have Space to capitalize In leasing and better-than-expected property the find categories a addition as by steady experienced The Due points performance the

We have the at midpoint. bottom to our XX also negative to dropping being of the reduced net midpoint expense income end by XXX basis Accordingly, guidance points is X.X%. a guidance the points basis our by operating X.XX% raised

for Regarding the lower-than-expected to pricing power led revenue our the in Storage has same-store reduction year. pool, the Life a expectations

same-store We revenue basis midpoint. have guidance by annual points at XXX reduced our the

partially expenses this these lower-than-expected by Fortunately, offset is for properties.

the As year. have a to consequently, at negative by Life basis range downward X% result, we a same-store XXX points also guidance positive the Storage of guidance we X.X% expense adjusted and our for midpoint, to revising are NOI

demand recent the our average have interest loans, management and raised outstanding income. our and XXXX lowered bridge increased and guidance loan the tenant reinsurance we also volume estimates income. and G&A our Given increased expected of for fees We've

guidance contributed the per environment. reflect have current guidance to revisions interest FFO business per a $X.XX $X.XX end we our to and expense tax a share at $X.XX raise increase to Additionally, the midpoint. These of expense from adjusted share, of lower income the

for And up open let's questions. with that, it

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

bit a are My first pricing power push there? is to And of also that be then you a from order you the can bit Life the influencing there? What and little on that seeing also geographical portfolio about rates. is Like the that weighing guidance. talk the Storage may segment. lack And of the results the you -- about how in question adjustment little talked is of footprint what

Sure, Michael.

we Life Space point the as and significant price And stores. We thing we the remain progress. did. main to stores was we on. year as Life the The customer at then stores at worked And customers over, thought able just portfolio and were Life we rates the to that Space Storage new parity gain the mid-quarter, that we new enough the we stores good didn't was first move over haven't tool discounting we last we used occupancy when we a as rate the close So the took Storage made Stores. much And basis had extra customers, remove XXX And would gap. by below customer been Extra power, we pricing new have sensitive, occupancy hoped. that would Extra much or at gain discount as the Storage we we the

is certainly that revenue So the Storage projected for year. of the for in the a factor rest our stores Life

for this geography, our is merger. California Sunbelt is reduced an has underperforming has revenue portfolio same-store in happy XX% Storage, have When Extra to about are pointed to outperforming Life conversely, we same-store market We XX%, excited factor of Life year. year. its in Life Space we of our thing coming merging effect Florida, markets, X%, and believe proportional this still market our think By Another this Space from was Florida. We're example. greater Storage increased those And exposure and growth happy California us And One Florida, has this and Sunbelt. exposure has But California, from Storage we on Extra against exposure XX% you revenue the with markets. Florida year. worked proportional close term, our about the is we were that. we as believe long out. We to including in footprint. coming an it

we are. it's think We So like rate gap I footprint. and geographical think where we'll Long close like our timing. we term, the we

that Like from are moderate needs pricing is rates? it what that follow-up housing to think change order return it to the my to in Is the Is for up on get the power And the natural for looking you're here? the I has needs closing an kind indicator to environment follow-up, question market. of be and pick what competition gap catalyst things the that of the in better? street demand from would

both, it's hockey demand We'll or I come housing a probably the positive. not in clearly, of stick. going Whether mean, steady would I that's probably a Yes. improvement a a otherwise, in little and market pickup from housing have the market, be right? slow to think

I development moderation a continued is will as us well. new positive of that think help

in to are and for confident with. And I'm Life XX our pool And conditions, XX.X% our control the highly So whatever I Storage performance July. control -- that were at occupancy, we we Space optimize capturing very when systems the July can I'm confident our react given market conditions maximizing them. we market store presented systems will look can't revenue. that's there how demand is which XX.X% in in in and Extra out but

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

move-in of missed on the I could occupancy out Joe maybe maybe I trends touch the the And key kind at you Scott, or July growth you some and haven't, trends like there. all? are it, -- guess, where revenue still provide on of you did can or just kind if you of metrics Maybe July rents.

Yes.

as the with XX.X% occupancy Space July at of pool, is end starting to of XX.X%. So yesterday the Extra or

XX.X% increased basis So points. now sequentially, by basis sequentially we is XX up pool Life XX points. The Storage

Now that bit expense of at rate. came a the

So similar pretty Life And during new for second pool the quarter, of down XX%, down the achieved the X%. to during customers were they rate July, our were Storage also. month

to customer have parity out wondering, Joe, just get then, do is mix pricing and the fact less you attracted I'm with the you trying I'm lower street rent was you're going them type customer EXR that the to turn pushes a think, the mix level and didn't different. them up little had to that to to at up back possible is if that of just back kind just on And and EXR Or get the disappointing before rates this just of that bring LSI EXR, them maybe Great. Okay. either system? rate the the parity merger, I customer same guess and LSI to fully trying the or pricing to of it side? And that charge one everybody

don't but actually ECRI. so. I a as Space so reason an out don't good a of lower Steve, Extra than is result It's Life Storage we moving And slightly are move out customers. customers level Yes. think track question, The I the a think at when

it very slightly. they're very, -- So and

the they're behaving So basically same.

a green they're think they doors. So same doors storage I a the weather and yellow customer or behind storage is customer, act

well. price a this we those new customer Steve, would point trying customers. are this But new with been time issue, little strength the quite at customers existing were being we Yes. behaving came to occupancy. seeing to has increase We're a more and still sensitive, when customer the a meaning bit

comes the question next with Citi. line from Joseph of Nick Our

here It's with Eric Wolfe Nick.

rates in I LSI missed this the last EXR. did you say but Sorry question, where are compared to if

was whether down you that place to in curious of sort Just before. gap XX% took that it back

stores. with we have space So them extra put compete they on space with where parity extra

them down. So back we have dropped not

Okay.

So haven't you dropped back them down.

what sort due points reduction basis due XXX less trying pricing, guidance to point basis customers, specifically XXX just isn't reduction. understand that of of occupancy? moving the so I'm point that And less it's -- drove to Like basis XXX to

each -- there's then type but adjusted So every models, vacates on of based adjusted every data rentals. data and unit is every rentals is then the vacates and and historic store night, projected priced is and unit

of a type on period So base That's price, work then while price to we will, time a result forward. model it's if we of out that's any that that's based think fixed you going gain. and charged. in set price the projections will how for we revenue not what going price, And and adjust produce the

at brought through. a off takes to base. Eric, time some prices, work lower starting lower in customers you're that you've effectively And more so

if take those increases time to accept rates. does came it customers in they other similar at customers, through rate expect We to lower work to but

Got it.

your income, Okay. XX it net bps. question. second was And at I same-store then up look If the rental

that your be or occupancy gap looks Your was there, it a so that there's XX, rest and XX XX the extra were XX through rents just or activity? net like would up sort that's And you a sustainable sustainable, year? say basis expansion of bps renovation Is the points. bit would of like of down gap benefit

timing change that So some or in are. of gave of and is can then numbers just units. that the exactly on And some be expansion they you where

is small to are them modifying constantly or but of there to in some our units in large, portfolio. our degree large of expansion converting terms We small

from question comes next of BMO with Juan Our Capital the line Sanabria Markets.

the rates, I to Just much But customer. changed still prior it a customer as while new up on how or move a price-sensitive perspective follow I result wanted customer from that that question. how of, new rates takes place. have the guess, having it the -- so a get of to the in

little have after you bit your that there. how unclear occupancy how reaching a changed compare extra, relative to prior that parity I for So customer? thought does Still to new guess, process guidance. And

in us achieved customer would need higher do we rates behavior with had the new to rates Life web not allowing of So that able the tenants and projected to we we is level tenants. aggressive the to We particularly that. occupancy, tenants, Storage those once still of the pool have this be to be capture

haven't And versus as stayed the experience, on have to just that's to -- LSI new to you with customers had extra the extra you versus compare aggressive necessarily haven't and geography. for due

impression, gave sensitive. the right? It's the website. up There's No, the LSI customers Extra customers, customer I'm Space on Extra same sorry on I customers, the is they're the that new they price sensitive whether end if self-storage website or self-storage Space

the Life customer. I to that's pool. we we Extra also mean, we the So had X.X% Extra at just still to outperforming the been It's And frankly, Space we're significantly extent not be have aggressive growth. revenue expected. with Storage why have Space

you. Got

-- implied what we think for math just fairly same-store But half. as revenue same-store we mean, the each think the just of two for steady being for for do of for of I between exit fourth Okay. second both the And growth in pools and revenue we quarter or the the pools? third on should rate what's then should the to could improving rate general, run

the about talk I'll So two pools.

the it's swoosh. mean, to pool a is I not fairly big So be Extra Space steady. going

drop pretty a strong it year-over-year on Life more not drastically year, back there coming You're basis, really the end seeing of of Storage at then is and a obviously deceleration the against steady. difficult August. more we as as last up that comps of year-over-year took we're large a increases in portfolio coming the as volume terms of did we much rate in half it's back over

next the Research. Our of question line from Carl Wolfe comes Keegan with

top guess ultimately, are spend year? I rest about your that two-parter. demand? your just of to And thinking in translating what's funnel marketing how the of first, you Maybe trending the

spend basis. has been up our year-over-year a So marketing on

it just XX% increase a space take extra year-over-year. X% revenues. of the If you about portfolio, is it is But

very the The consistent low Life continue year. of of So pretty expect we spend that. very, the been X% more following during would We had we a as slightly revenue. elevated would revenue, that to periods this percentage be through It's than COVID about year. marketing expect it to and Storage spend through has it

And And top to maybe of just NAREIT? then more does what I that compare just guys funnel how comments broadly, guess, your demand, on you at are seeing?

Very similar.

by near is very search is storage that, me, XXXX. measured to things kind I Google think like demand of similar generic terms,

no So before that kind last levels, historical down of is had at but from demand, area. we when it year change in and but year elevated real the

more Got versus occupancy just guide. it. curious year. just I'm And embedded then I guess your a delta on maybe last year-over-year broadly, within

in expect on And how of back half? if any color Just you more changed assumptions range? those through trend any you've guidance your the

Extra is more those the things. pool, not guiding revenue of of change. on So rate Space did occupancy, because And be again, occupancy revenue we going we're an output than to all for

assumptions our in the changes significant on pool. no so And Extra Space

higher again, half Life more Extra occupancy an of more guide, to in Space, is changes not a there. in to Storage of obviously, the similar the be at the continues but terms levels, revenue just back pool, big On guide occupancy

question Our the line from of America. with Joshua next Bank Dennerlein of comes

that you Joe, in Is underperforming driving to think of up remarks. LSI projections. property there your just It internal that sounded particular wanted one just underperformance? like your follow is anything the opening is on

the we we've say strength, I really SEO to X paid that. the strength in pools. was Life thought have geographical made Scott Storage Extra second that's a search. the mentioned brand, Certainly, SEO some I second gotten strength would up marketing between our or that thing. closer to But expected. is. Life running Well, we not that the And it be differentiation of also that for months just improvement the than one actually year website, would spend, increased Storage into mentioned increased Space organic the

basis? SEO them the one a to or Like still make separate? Does on brands Okay. about the thinking change the that how go-forward you want would you're -- maybe keep put

we're real that's the make twice its rentals certainly dual buy the and digital page, course, something running would are And we in section, we section theory the it's the you test let organic is local easy, have the So we've organic see brand local we in and on of We're run looking in the that data. if most the have and in progress the to at. cost outweigh We've that benefit We'll and that it. disappointed the the the have and had the movement then in looking brands. clicks decision more in estate would section. test decision. we'll at the section two seeing section where -- And based was more paid we been

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

prices pools if sounds quick the higher point the be think the is on of ones. both we road? two X, always when out, what sort about and X Just of like sort expect occupancy. pricing EXR. years similarly. the same we are should Life two this behave the pools maybe one I at of Storage X sort between of Staying converge down or guess different or separate it the I average will X mean, X, years has But does sort to same, pools it

they growth at in I converge things would demographics, I Storage -- of should would that. in the Life point. But expect behave terms of pools the terms year-over-year revenue in expect overall, different outperform XXXX. are The terms of some in to it same. like store makeup, slightly But to

it. Got

lot that that about the you to Is market. competition or activity you And that. maybe the That's sort is do I talked you Is bit say, on if would less consumer question, do more what pricing? about, should second contextualize you is just my more Maybe little then commentary What is think competition in Okay. driving think a could the there's than that? of housing in talk can more it you helpful. leading specifically pricing just you sensitive? the is price a markets? maybe anticipated have Like

So I think it's factors. several

I think is the market housing a factor.

it think of us in customers of with Our be customers. the can tell process they moving percentage in overblown, I XXXX XX% right? our were was who peak sometimes

XX% about our it's Now of customers.

clearly, and it effect, in explain So but decline everything. a that's doesn't

the development got by 'XX. new kind And that had delivered pool think X-year excess demand peak is we in the impact. a that almost we masked X-year I that X to gone that were supply our have now we XX% supply, masked new development, deliveries 'XX development in COVID, supply. that same-store markets and of years, of excess of remember need the XXXX, in COVID and of 'XX, -- that demand new those in feel cycle, new And

growth. I debt economy we Inflation are also historic years outpacing inflation several slowed defaults is have The largely is consumer We've increasing. the threw the government from think has right? highs, down right? wage right? no gone, their defaults, credit had are Savings Prices are still card down, money the disinflation, weak, of high. rates into but extra auto loan

see shopping a behavior. their have We we consumer, in weaker that and

Our next line from Kim Ki Truist. Bin the of with question comes

of share here. by about customer with the your When trackable, are couple a ago? sure I'm whether base. you be it if a quick pricing today on customers of maybe do not traffic, you notice that web competitor year some additional of where that from page kind sensitivity your you Just that's How page, ones talk around we versus can metrics a any jumping to

revenue. or they we is X% the zero X% lower to that can is spend of priced where run us pretty of that on best see prices. of model, discount combination the volume decrease But number then in maximizes way are what thinks I the a think should a And And rate than increase X% higher price a there's which a reaction and observe think right ways units at X% we the continually to we which rental should consumer and -- and have marketing series they and or really kind stores prices be. in stores or helps we'll test a of in it.

more question Got -- should a side on you other Can like is may mean, and stores. side, it. at you And like the second you on much And FTEs it expect by to driver. forward? -- the on sense do the give the room we expenses broad just utilities. curious be Should there for driven that inflationary? add more Or going your we payroll that what things the was mostly might I initiatives? if solar are solar, for payroll utility decrease more like just have solar being And how that

elevated. first on half year, is So slightly payroll side, of it the this

of Some that's issue. a comp

last basically the a at just we ran bit understaffed. So year, little were as fewer hours stores we

it have that So -- in of in less you become also more inflationary. you hours. only the the increase, this be have to increase expect do wage not to We half the year, year would back the

Prior utilities, a about we've of the aggressive of terms had lot Storage solar the to them, so side us. benefiting been In solar on that fully-owned our stores is years. XX% we of clearly have actually that acquisition, quite on Life for

look solar. for yield, opportunities continue We we to to install have a and to good continue

also stores install a on been focused be to with that the Storage lot We've We've LED is getting more One to more acquisition our also lighting. the efficient. solar. Life of of opportunities and done HVAC

LED component some So and solar and the but on a that of obviously lighting. opportunities is HVAC probably big also bigger driver,

that I it a it's payroll vacuum mattresses to comment rentals R&M? we it have reduce have to expense efforts most follow-up more number call you hours, if center can reduce of your high noticed hallway. And have are be left the a expense, bodies cut to look can do does the margin lose because payroll mean the store, can payroll the it could Does as fewer importantly, Just We we but store the more more to a that. If you important also -- that a business, reduce have on we Does to you in at operating understand payroll, to agents? think in in what have mistake you have impacts then in what of rentals? the be that small counterproductive. have, fires mean we anybody

with it of careful at can or efficient expense we So the we as we want payroll, as we want hurting the but as be don't hurting store do to to can revenue.

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

There's market the in for wondered you're comment bid-ask acquisition you and spread the on cap seeing rates an uptick year. guidance where in if I that could the are trending.

Sure.

So our increase market of not a to. it's drastically. guidance was And deals that us see that really capturing the reflection function three we of changing didn't expect we the

the the change But I half seeing, come year. a the And a buyers muted. right? Leverage other need if in think they'll can't in is likely get market I loan. don't there's the market few us is options. are are ] storage market dynamics, looking material hold There's don't or they'll of is activity There'll ad what their price, because is bridge at [ we're They just any always sell. one quiet up and And people the bridge still owners year to there to as spread. they of in our think more reasons acquisition frankly, still Most aren't loan transactions sidelines. distressed. on still be for a bit a the second are for

your of of you more talk you and customers. expect that if drove decision to helpful. prior the about That's Can on of And the would just third-party you then Great. occur? that one what mentioned internalization management,

from This platform. They a operating and that to They operating was Life that self-storage all a their purchased an capital inherited were stores owner platform and partner. moved company we Storage. of

internalization of than quarter, only them of So we the because stores X that, we were in lost Other stores. XX of lost management. this XX

part stores we then in we've X,XXX having the continue very portfolios We've very, lost and added third-party that past, healthy us, lose but on a year stores our see and the XXX we now over portfolio, the So net, a to you platform, pace. and of for very demand healthy and is management continuing. grow gross and that's XX year throughout at a every

the Our with line of next question from JPMorgan. Zhang Hongliang comes

rates basis wondering of I about the a trend to street on second how down X% that I you guess gap rest throughout quarter. was you've year-over-year talked the year. being in the expect

a for see lot catalyst -- us a be to don't big a of pricing to we have So for power. able

think I that's the reality.

don't housing see market down a strong with consumer where we think the catalyst. with are, I they

doesn't guidance imply that. Our

are outcome That revenue, said, of we And occupancy, street solve we're sorry, an look your at the -- rates first we to occupancy, for rentals, you're what not occupancy somewhat going is -- occupancy going being the but to are I'm -- your thing volume, giving. the sorry. for

again. can can you we've So it to I use occupancy, rate you are And as solve occupancy. all for for did we solving use street said, always

are these We sure want revenue. revenue. solve for for solving We make to that we use other tools to

that answer question. to going I'm

I know.

of do LSI portfolio? -- the one? ECRIs, increases those versus and guess of And terms on thinking just doing anything you different magnitude compare Are rent the how EXL about then portfolio the for either I in

No.

on at everything system. on parity, the that we're they're is priced the Now same system, ECRI same

So the same. it's

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

parity to pricing with just to decrease in up for increase here rents to on to But the the you sorry I EXR. and wanted forecast? in question, -- that Did revenue not growth led the harp to the which see improvement you caused anticipated, revenue the EXR but commented what you guidance. EXR First LSI, follow LSI moved changes growth achieved LSI the

was bottom taking like more that end really likely the was stores off guidance didn't of the the of year, on where us a a it function think I scenario. the we feel are table. Based So halfway the through

little finding you're that see. a clear I websites I'm on how LSI Ki there anything structural either or question of been guess. Bin's or or then back web the at levels not EXR websites? running Are differences and you're think, the -- the of to there starting integrated terms if web web just I related just the on overall any identify And customers I'm Okay. in back sites just in and you point banners of the going I'm leasing And execution or sort end, this to, separate around of bit banners to versus curious seeing the differences have on the traffic. demand

No.

LSI Google. So as who's we an transaction, And we addressed Extra or in that's was website Space twice of the twice closed website. to slow to example. the the one as one When be factors website I'll the in Google differences when fast signal the SEO going the in first they ranking. looks important give decide as and website, you was LSI the That's

So we we could addressed. all of those things address, that

benefit the will, is improved average those organic challenge X, to need So the X someone Storage me, we're put locations if on and the the want. get that's for. or who now second up we X We if it Google first into we're see to who into there X rankings enough to improvement going near to continue to The websites improvement you that spot in could the or hoping And get to they're to of work determining account the SEO, X, need physically, see not where are results put on and we dozens to in to in. and continue comparable. to when going takes things And and that storage third. get the are searches factors are X we've X the we Life that top having they're

store think think them you was you whether 'XX to on moved uncertainty Any you into year portfolio next continue same when from lastly, in close there. you'd do the into segments? there I the the LSI out some the sense to move normally, or same-store Okay. -- in break two you're XXXX would And or move going I what acquisitions the just LSI,

provide but able be into of same-store, be would plan we to move kind Our so them previous would you year, and after. see still the should it before to

comes line Our Research. with Okusanya question from the of next REIT Omotayo Maryland

ECRI, keep think occupancy, the and portfolio I I big portfolio focusing to in inflation change, when happened wanted has that I again kind it of that does so portfolio, on I going trying is rates, just reflecting and period from I the over to the what in pickup your you should get guess, kind just XX think LSI. all of increase lease-up about to change rents with rents in XXs. you like yet with of average average XX, low kind looking can this we be the sound just lower forward increase change? of for move-in that kind but time? for and like in time And EXR it's [indiscernible] the mean, XX were

Yes.

square two the structurally look when they between are different per you somewhat. average So at rent portfolios, foot the

markets. are the And Some we -- is of we markets in to the markets different different closing when refer compete demographics, where gap. the them they're

expect So the would we necessarily to like foot. on be perform platform, the Extra in property to expect compete exact -- rent on behave the continue them the Extra Space would to and per but not them we same they markets Space the square at better

potentially much a versus And expect the again, does kind then how lending in the nice platform curious credit credit That's And of ideal lending about classic kind going-forward to that between kind the more can helpful. Again, acquisitions? on side, of you just Perfect. balance how one think basis? on of grow pickup activity.

Yes.

effect that right? capital a made muted maturities year, this on demand for grown had very reasons. product. we few I we've significantly is One we So to this earlier had We pretty the acquisition front. greater the those of maturities And year that extend. discussed acquisition chose a on for and few allocation quiet then kind of some year a of decision, a market

of incrementally many use that's when as we're acquisition capital because opportunities. we balance of loans a our have So more good the don't holding sheet on

relationships more balance expect that. I less loans we across But that increases address change a the have is than maybe us and sheet. sell company of It and on We hold viable have maturities business of market we more our acquisition we'll time, It the will to to the pipeline. and active, the over business gets next our things we'll certainly acquisition great I a do more and increases and number this when business. serves think year, have number provides this benefits would economics. gives year management an

I it's continue to So grow. business a can think we

Nick from line with comes next question Our Yulico the of Scotiabank.

sort like wanted I see of rate. of move-in get gave for to guys you to was July. the some commentary the possible it rate know if I dollar just

what possible is the to it gave it get You in for the quarter XXX. number Is the July? that ended for up

XXX of It's XXX. a and move-in move out

Space. Extra That's

the Extra Yes, that's Space.

think the Okay. forward is loan debt going I on how assume about bridge balance component just I the up, balance the guess we higher? how activity, related because question Perfect. has And you're should is of other like what -- debt, then sheet. just gotten all about the thinking Scott, the which balance the credit to going line

few bring And as turn a or down that have up lined in that opportunities. that month loan have sales next gets as here out then look the we we to volume we will larger So bridge it some.

this think that market can the bond as as I in the you see next year quarter is or early later soon year. in So or

closing questions further call I I queue, the for back will turn Margolis as in remarks. to And see no his Joe the

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And thank conference. all for today's you participating in

disconnect. now may You