Extra Space Storage (EXR) 30 Oct 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Third Quarter 2024 Extra Space Storage Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would like now to turn the conference over to Jared Conley, Vice President of Investor Relations. Sir, please go ahead.

Thank you, Michelle. Storage's XXXX Space Call. Extra to Third Earnings Quarter Welcome

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

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

hurricane happy and everyone, Milton call to report for the call. begin first To would I I all today, the you, Jared, people. am our impact that of address thank on joining Hurricane today's their Thanks, to like a his number although the safe, provided are teammates comments. our displaced of families individuals and assistance them. in small financial Scott of the impacts and for were shelter have we will address

current from of our year and quarter. to overall pieces good performance. midpoint guidance. points our Before in had big our data and on efforts increase the I FFO performance we comments We want Optimizing environment us address myriad the full make the the picture moving quarter, allow to some of market a

to slightly our performance came expenses. Storage but with XX.X%. below with store by the start solid outperformance growth, us This to of the same-store guidance. Space with ending same-store allows Let for generally Revenue the offset pool is XXXX increase same-store contributor pool quarter expectations this and me occupancy to consistently performed October was of in which biggest Life performance. The Extra meaningful our respect bottom end with expectations, FFO

to single part at of we fully brand. as of Life to benefits latter the see of the expect brand the a in single closing a in that XXXX. converted stores we the the completed starting XXXX brand just this same XXX We and Having into move Extra follow are to during of pattern Space group Storage stores the quarter, to improvement the

platform, non-same-store are of to Our external expectations managed store In XX Outside have our would netting growth year-end. the Year-to-date, to third-party year net added gross, XXXX outperforming quarter, the we XXX our anticipate properties additions our properties Life contributed merger. we are for we also make added to and FFO and Storage additional This stores performance, stores. outside net by beat. initiatives management our XXX exceeding our program approximately adding the stores XX best projections. of third

of million loan in and such have year. expected loans new we our originated bridge with hold quarter, $XXX this expanded the increased $XXX average program Our for to million in loans

front, acquisition opportunities. in joint million are encouraging increase an and have we the On acquisitions in venture deployed wholly year-to-date owned and seeing $XXX accretive

our Overall, this business Lastly, efficiencies to G&A I performance year. and year. for we guidance trajectory the find the very continue and am again our in have with lowered pleased

all scale performance efficiencies to our of in drive FFO store ancillary areas business, growth. find leverage to optimize grow businesses to continue our We and the

Scott. capitalize improving us well positions turn time occupancy environment the new customer now to portfolio higher on fundamentals recover. I Our to when rate an will over

and hello, Joe, Thanks, everyone.

the last occupancy occupancy and year. is XX.X%, Space average point occupancy had quarter, quarter, move-in an basis driven performance new a external gains, growth. customer good over was strong by to third negative XX meaningful by it in the we Due X% taxes raising year-over-year. expense same-store G&A of As bottom points. in October-to-date same-store and improvement savings revenue necessary end categories, by a to Joe guidance In XX rate positive our the X.XXX%. Despite savings the mentioned, made XX property are the controllable basis for have basis we increases raise expense to-date, Extra us midpoint points, to guidance bringing

X.X% occupancy basis in pool bottom last occupancy quarter negative XX basis by increased the same-store NOI at the This X.XXX%. The increase raised year-over-year. over revenue to to Life the improved also guidance we have our October has seasonal XX.X%, finishing Storage the XXX saw for declines points midpoint points, XXX bringing Life by XX.X%. points We an of Storage represents end year-over-year basis and same-store of year.

Life Storage the normal the average negative change move-in second X%, quarter the from than sequential same-store to quarter rate in better pool, seasonal For third was the declines. much

the customers the to to revenue Lower-than-expected for new has Life Storage the year. in pricing our power expectations same-store reduction in pool led

basis our guidance at the partially XX these offset expenses We lower revenue is points same-store This have annual by by for reduced controllable midpoint. properties.

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

have loan and our for we the also reinsurance lowered guidance. increased G&A tenant Given an Interest in our for to has of guidance our interest increased volume the volume steady guidance. We've bridge loan and expected acquisition bridge higher expense been increase account XXXX raised and outstanding income. updated estimates our loans, average

a $X the midpoint. raised of share result of per per lower FFO $X.XX revisions, share, a $X.XX per As these at the from increase by guidance end we've modest our to share

claims. are properties of and sustained property assessing closed. guidance the we and remain We've damage tenant Hurricane at Milton impact of the as Our several insurance still full and revisions stores REITs damage REIT exclude extent X to managed

markets. our have also in contemplated seen added FFO. increase our As total we insurance $XX been historically pause and core activity certain to guidance. Major of and rate these have currently estimating in to We've back be more. amounts an today, million damage tenant in costs claims customer property rental are Therefore, a or hurricane been existing not increases

Milton report things related with details Hurricane for earnings. that, quarter And with to full let's fourth up We will questions. open Michelle, our

[Operator Instructions] will first Goldsmith UBS. come from with question And Michael our

I you have benefit able terms so starting seeing evidence brand. drive you'll of seeing? you're provide you said detail to from what what consolidation? see far, be accomplished what -- gives think the of to that that you Can what single in the continue And little the you're just more -- to bit the a opening brand benefit you're of this confidence in remarks, being of a you

the you Thank Michael. to, question. Happy for Sure.

we're right? here, late change did be the So clear, very quarter. in to in just third stages early to the We brand extra-base

better a see the So we're in. But several was once being SEO said, what from Storage performance that weeks stores. Life we slightly

the former starting Some the rate the to spend. on improvement in the store is paid in lesser but or modest better SEO. The LSI savings Space than local conversion And on it than map see was website some marketing Extra section, we're website. LSI

of we converted Space, us what of took immediately, always over and well is in X Now it a as perform we the we doesn't we test pattern to XXXX will period Extra Space. those brands, that stores confidence that number Life to gives when happen pool have improvement months, Extra been up and and them X closed XXX as merger a decided watch stores we of those of over a see of stores stores time. but months, branded know converted And to the

see follow won't and just the same So just improvement, we like green those the of no reason stores starting encouraged converted see to we act why and shoots. we're the we're stores pattern that

question -- at wide the a midpoint And the what to implied is the quarter, implied there's range the fourth follow-up does my guidance a suggest can still what's is, deceleration quarter. pretty and core but fourth the material for from for third FFO

seasonality, but that, quarter? at of or results some other weigh there third in quarter which is the fourth factors related play, relative I dynamics to is the any assume, on Now would the to

it range. biggest are and performance obviously No, property depend is fourth on in just Michael, quarter, the you difference that in the where then will

from Thomas question with Capital next will come our And KeyBanc Todd Markets.

to I to wanted of questioning but with stick line same-store a move the bit, just little that pool.

for in and maintain have drive you line little the both portfolios. quarter and ability rates of implies LSI Can to you whether just able deceleration occupancy toward higher to you've sight to there, about customer the across portfolio Just a bit fourth the that continued the EXR curious guidance talk given been portfolios? just the traffic both stabilization, the

Yes, Todd, Scott. it's

range on imply the does It slightly bit the you a start that it Space Extra it where So of midpoint. guidance. at negative with is in are I'll that pool. depends

end flat fairly slightly pool, on negative, the high in the end Life low are at quarter. The range, in it's at fourth is you obviously there. you're slightly again, some at not way the midpoint, at in there solution It's stabilization slightly but it's If way either. the the depending where Storage on the high show but positive, end down. end, and It's at negative its more up. slightly to also the deceleration It's negative does an dropping IT significant it not not low positive

as October Life because our a month Storage the that's noise year. has when of of difficult hit last month-by-month comp strongest a many ECRIs Some being the it's with little it in

out of impacted emergencies? aftermath around states share sorting early or a to That's the of sort seeing wanted you how of some that ask and in mentioned markets in in through comments Okay. in of with talk some the you're impacted the ECRIs you it's can you that of helpful. these some about some pause state about changes provide made, realize I activity plays areas color the little bit. happened given and still Can rental just statistics help in some just the that just what's given activity hurricanes, in that rental then And of you're in perhaps the uptick the those And to I some sort MSAs. that seeing you the occupancy of you're

Yes.

uptick obviously better XX% to store-by-store. in XX% the West have at some So of be we in the rentals, XX%, seen It's stores. pool. to an from The have Storage on It's Coast. for instance, Life jumped those occupancies, going particularly

You more to XX a there hurricane than of customer benefit is average, going Typical Miami. see months. on think, I in about stay

expect we're obviously, would them. State that. benefit of from emergencies, to we following So

We a are a level, store-by-store implementing on so market those not level. it's on

from benefit damage the but would hurricane expect partially in spend some So see that to we hurricane or damage. offsets typically offset the occupancy, what we

comes our Sachs. with Goldman from And Burrows next question Caitlin

stay the been the sounds pricing in if kind And expectations. who's you to wondering selling. and more some the acquisition I know you're I was active hurdle had past, give on it on like color a of on Maybe expecting side, active. could

the So to agreed the that and you're upon and just is pricing buyer side? extent kind seeing volume better the of being that now seller on the

I sure right? what's We until a underway. activity, not transactions I'm of but true but to hard I question, good have market-wide we a actually Space a lot know more it's activity. It's closed Sure. get tell see discussions and side, from a Extra answer, reported and number actually have what's

Some on-market, accretive some that end up off-market, we'll transactions. very as confident we're

think rents, not relatively Okay. about sector move-in we move Is different in urban, I anything or could like we has in you facing, can been that impacts indication And comps? the else some but talked strong. about anything you point out rate in versus mention headwinds not I consider versus the there housing if where then that's there? less know stronger properties but been have easier past, maybe about like stronger. you know Is that properties the as supply, it of the move-in trends regional, guess on you've urban as the that

portfolio. very, X have to It's of think estate deliveries. probably heavy the you we growth. cyclical, that's particularly, been very additional factors is markets mentioned secondly factors. market are in new One there's the cyclical, is important highly revenue just Real comps. cyclical. a why that I strong or hard of is in factors the it's are those both toughest strong supply Phoenix years If have years had growth, it's where of several believe harder. a diversified like then Atlanta and And supply has markets most Markets are right? the revenue And the markets. But very

cycle. So have the exposure of to markets we that on some are different ends

question Dennerlein with next America of Joshua? Okay. from Joshua our Bank Securities. And comes

Our comes Green Street. Spenser with next from question Allaway

guys happen the did. Did quarter? piggybacking And you transactions off cap sorry to question. Maybe you rates the if provide the just guys on closed in you Caitlin's

months X XX the rates have with very stores. this operating our JV for owned about to on deals wholly closed. cap in you I deals, remote stabilized then Xs, The had yield don't all think similar did returns. we deals, yield. provide had the thing transactions same I stabilization wholly we and done the year first low JV remote of And stores, year, up a that deals owned -- we've X average stores. tell X.X the We've we've could X with XX operating we approved

because year joint X.X First at and XX, at economic X we venture. developments And of yields then the XX, the development yield. that's benefit stabilized at of approved yields

to you costs remind it have LSI just the for as rebranding endeavor? what the assets, relates then legacy the can And been Great. us to-date that of

I we've banners stores digital. rest up have done modest to-date then cost at pretty Gosh, don't and It's what probably the to-date put numbers. has is the because been

to store about that that cost capital pending were expect We the $XXX $XX but costs of the delayed test million, total which non-branding and includes of go. decision million

to until which be needed store not painted. repaint to the So color it be decided and knew we we repainted to

we million. or of Our for the underwriting $XX deal, property assumed $XX,XXX

was when returns we announced deal. obviously it in the our So

question our Sanabria come will BMO Capital next with And Juan from Markets.

relative quick I last October Just you door customers in the gave start. new to the at the year? to came occupancies, a know where can sense give a one us of you but

negative our quarter our and for was customers year-over-year, So was X% X%. new average rate in new negative to average customer the rate October

And comp changes So by have Are difference like basis significant the getting significantly tell on better. October you far. they a would so seeing that I of and more wondered, September any a are caused think EXR some that's pool. August rates kind lot on and We people month-by-month is a feels than stronger.

a I'm is thought lower the it Okay. then if commentary expected, guidance just LSI. bit in the with better confused said little but about wrong, cut on you was guidance power. was And that seasonality I remarks, the yet correct for than pricing prepared I me --

previously? square help comments could X you hoping of just made kind that different So those you've

Yes.

the really, mean, the performed this than contributed of for those projected we One is. that have twice markets is in year. is has performed to LSI XXXX the that. concentration disproportionate That beginning has right? secondly, have stores. as X not then LSI, just So We've cut expected And I now disproportionately guidance weaker the weaker. markets in And year, revenue that things

benefit that this single made we So think that's has a the concentration third LSI move expected. is dual of And to of and get thing benefit Florida, larger to get then hope Space proportionately. And Extra brand the brand than where didn't we the the decision the summer why we expected to that. the from

the factors us reduce LSI. are that those for guidance X to largest to revenue having So led

Okay.

fall? sounds So of back it than that of to say? you summer, markets more overweight, early the maybe a deteriorated bit fair in like half expected some Would the be the Florida i.e,

That's very yes. say, fair to

Michelle? Michelle, do additional or we no -- have questions

and We're us. not technical can hear the we're difficulties. to we having if get So sure host Difficulty] be anyone We're patient. Please some see do. [Technical to going can what

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

back for going in how is just that you the in occupancy, fourth give feel guidance. Can think what's us question the assumed to and about first a guess quarter? I to fourth quarter

this? is who Sorry,

This Nick Yulico, is Scotiabank.

had anything. So we hear we difficulties, Nick, technical and couldn't

we're if So back wouldn't repeating jump into you -- we And mind back the but can question, it. right now.

about that. Sorry

sure. Yes, Sure.

So to occupancy a question the going and Can how you is fourth just what's for assumed trend? the to us in feel is give expected guidance. quarter back

occupancy more model revenue. and don't typically modeling We Scott. it's so Nick, Yes. rate. It's

not revenue revenue can so all And would tell there. say there's and we you not extreme we that is that growth, extreme really off drop

occupancy expect higher would we're operate levels. than going at to to historical I continue

you've those to to -- the those I Okay. guess how can the for back other pieces and the you non-revenue give you're know on just But synergies, is a LSI revenue the on back I just versus the us changed then going thoughts outlook. June synergies. All question right. And expectations? latest going feel trending

Sure. Happy to.

targeting control. ones So that in million properties. in the we're tenant we well insurance we $XXX in categories: G&A, were doing very X and very, And synergies

$XX in it of where $XX properties, insurance, the guidance million well estimate. of So G&A, excess about the million from we're then on well, at our anywhere $X from of depends Tenant initial we're And are range now in synergies. to at you of looking looking about worth synergies, $XX million.

there. And of We $XX these million targeted our million there, renegotiated $XXX get got all we've synergies. Storage we'll the many to million the $XXX that and projects $XX IT include million. of benefits in synergies overall, we we the to So originally and $XX in eventually to we've of business, increase some doesn't believe other And of we identified do and some bridge at Life the brand can just need about move started property the merger. there, our we our improvement, believe get and the single course, market to due time contracts million procurement the new value-add in management business, loan properties. savings The scale execute and

to million $XXX the merger. benefit total categories, relates of not the those So the just X

next of Wolfe with Citi. comes Our Eric from the question line

Maybe LSI. just follow-up on a

that outperform I just quarter your Life if in has the markets that's think XXXX. your legacy weakness the expected if view. or mentioned changed you you SunBelt curious in still portfolio case was some I the recent that of portfolio last EXR Storage to

outperforming is do to portfolio year. I the expect Storage same the Life and would next Space this it year, Extra portfolio No.

-- that's that? pool? the same-store the like not the that's comparing same-store versus about the markets, meaning it's same And I other across versus just pool one right, Am across other, LSI, right directly

Correct. Yes.

then is rest of stronger moment in year. ago just about normally the your than you the a occupancy mentioned and through being And release it

months? next, the guess, to are dial would occupancy. rates? try move-in X looking for it I have strong up say, what So X to over you You what to take Like

aggressive for get what to try like move-in more rates? to looking So on are else you

aggregate building obvious. about sorry here. talk unit to state if in But going every every adjust the I'm look algorithms -- and So rates. at every We night, the data I'm type and

in certain speak of to today, are X% any unit looks moving aggregate buildings rates Salt vacates X%. So rates and a at all us many, bunch not sizes in as things here it's we move-in, decide of projected City the report, are in decisions. And but those up, many or is of data, of make few macro going we like in certain look and and number markets to variables, increase number for historical sit decisions that of the performance and there rates Lake decrease certain algorithm those of a what we're group

Right. Yes, I'm guess than I from just occupancy I that. -- looking at not see that perspective, relatively understand normally it completely our full and and you're it's is. better

if that otherwise I cautious some are. don't I'm And future? the rates. if at you're in couple or on that suggesting don't are a the many there's can projections that understand indicators. just than need get trying like And of you there's you know I'm just maybe factors be lower to I what generally looking and demand. main ones the so what kind move-in list your demand to understand I trying algorithm know normal to

Okay. Sure.

better you then. Let me a Hopefully, answer give a better answer.

will certain thing we algorithm a always a will the X% algorithm that a from have one number in that for and of running So number a number building. is test subtract add will X% And produce a will unit we're price constantly certain stories a doing that of to stores number. where algorithms type

price would kind run tell will come and the produced the X% algorithm-produced that to went produces better. Is we higher, stay X% bands, revenue. where prices of in a lower X% an right? that understand fact, help producing best different for you X% result rate, if helpful? And ECRI we do us value. And that able that's and look that algorithm Or The us to cost the and higher, up customer of test long-term price is, these us. best if or the intervened acquire ongoing number algorithmic we lower, customer, at at be with we'll number tell and produced of rentals, length So to bands,

Yes. That's helpful.

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

Jeff Spector Josh. for is This

And difficulty technical you had if this, Sorry, we already apologize I Joe. before. discussed

go the strength how and I November, we're know occupancy to trajectory. And right entering do just let's into and does given thoughts time to, like heading how And does number end? will are how compared the where the guess how year ask, right, that prior know in occupancy and 'XX? about wasn't year, now does -- And how we in had years. as it we this does high talked does of you -- bode terms level occupancy You of a there you this feeling pre-COVID, now of But back you -- I seasonality. feel typically how 'XX into the compare I how then years say, if

of market. feel our but performance that good strategies feel systems doing, I possibly that I we're the control high implementing, market, and the feel we if the everything really can't undertaking that a the market a as But as difficult is tests we're much fruit the it good I will level processes that a optimizing I and of out So when people juice wasn't that. very can. I and turns feel better turn. market are squeezing in at occupancy we're difficult good also

new we are supply. a We quickly. from confirms position in that I everything benefit good to moderation really that see feel in good

that me as So well. feel makes good

if year. all that we're can we going of not feel having do make certainly this well position I for better So the the growth, we're to future. X% but and is it revenue best ourselves And have

my LSI. again then is question second Okay. And That's fair. on

You about pricing And and talked the use I EXR LSI you're want again, portfolio. thinking the to power lack you fully about saying of keep into -- the systems there, your least outperforming. -- wrong, LSI be there, It feels me the versus EXR between there But it's tell possibly customer customer. at that to again, I'm some if weakness right? seems like

consumer push can markets we is I on that those today 'XX? as LSI than more think that squeezed So confidence of you gives enter what So customer markets, more secondary that ever. really as again, tertiary,

We So is or to behavior the of storage the -- regardless storage consumer. or bad to their in product markets? debt I difference that see don't see difference they don't is very what not there. the between consumer, sure I We I'm ECRI consumer agree thesis behavior think similar. with we -- go significant reaction don't whether the in So other

I'd couple that in XXX basis of had delta a One make occupancy to into maybe Jeff, things. point a point And we we with is to other went up. this

we So out. partly algorithm softer there. Recently, went with in rates occupancy our time, over will switched things we to that even gain

In in actually result growth the addition, you a brand of thesis had the to where was higher we going a brand dual thought dual and a going would compensate, and have brand. we as

We it's believe to That we haven't found better now happens. do that single and that going a just on change brand.

that optimistic So and been still tough of in that good there's timing, still feel think it's and growth we're we portfolio. lot a like

next of Luebchow Fargo. with Wells from line Our Eric the question comes

years, comment kind kind next the And I as negative move-in Is mean, XX%? more Maybe be of maybe has negative based your same-store current think bit it where get of range, to would Maybe be to go to would do it little X typical of pacing look move-out color could the you kind that. any that on spread, a of spread north the there to had then a of growth little ECRIs? what you XX%, I rate back over helpful. think X you on bit of a XX% negative to kind out been

Yes.

So for the averaged over quarter, we just XX%.

is of does typically at is XXs, you the time third upper second which to growth larger. get Moving year, the from that this were common mid- -- you spread the to the usually into quarter October,

with little It's possible attract back rate. it the strengthens. depend think on pricing and do strategy. Today, we bit I is how way will found new market most strong with what market changes that the effective comes the a lowest kind to we customers as the of

hard and is see strategy best. So it's confidence to on kind pricing it to going that which have comment work we until on of

have when Got there? you And is guess, spread parity? close on work continue or through properties, between you. remaining LSI a appreciate much of for hit just rate think like-for-like And this the markets, that kind branding you I that. new to more of I follow-up and can strategy, still how EXR as you a

closer closed our So spread the X% you And like-for-like reason to closed was And the there's we haven't about for stores. of no XX% properties, X% should at occupancy like-for-like it I point. be markets, those gap that rate only When rate on we'll made and to gap, one have parity is at don't We've as get look that, gap. today, we closing. X close think about but at the the meaningfully of some there, we ever progress. more although will much

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

and guess, as towards your I year compare is, and guess, my I first levels? pre-COVID would power top-of-funnel think question how do pricing you you look next this to, year, demand

understand the and of to housing market. We pricing. question, Well, to things understand health need push that's and the We need the economy And to will drive our of crystal into ball right? I we need all ability the demand think to those understand consumer. rates. interest storage the

we in of and that businesses do tools crystal ancillary we can also had will and faced ball, well. I So performance able I maximize all and I that a periods we're wish with, do support myself, to sorry have well. And repeat the other to company know don't. help but environment that doing these stores when -- as whatever be aren't I performance perhaps

the my term, Got are you'll the over it. same in with LSI brand working quantifiable LSI EXR, cost savings realize marketing? -- near as EXR, there second say, any And question with under the is

cost the the relative more organic for weakness search LSI an we for So in saving quantify the were is in the stores paid search. on annual to easiest spending $XX make million to run basis, rate sections up of

that on spend to LSI once Space day brand savings, to Space be but stores X, get $XX more the Extra on once Space So to which leading stores, shouldn't additional the with second we brand, is not have to stronger, we difficult parity extra we then the savings. Extra marketing stores is million. And immediately -- should the Extra the more quantify with

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

just Jenny have on quick have I You questions. X Ron. for

for you a first EXR do the can on harder of magnitude Like the please LSI pool? other ECRI ECRI than EXR Or for one? The is, both comment like you like push pace similar pools? at and you do the

program same both they're So on ECRI the now.

difference by the pace no store a -- there's or in So of amount original ECRI. brand of in

actually feeling actually, or you you you if do do second I be focus curious a really model? And know be pricing, the continue give overcorrected continue the but to views occupancy it's to think on rate forward be like -- Like going because that's forward, I'm your one, prioritize move-in in moving we and QX think rates over that your about by commentary to -- 'XX? weak. us going you going your

prioritized a we'll follow tells mix rate occupancy or across little a the that. long-term various then produced is or long-term ever us we and other market, heavier and whatever store and the revenue. factors us showing revenue something data That's lean we'll particular into data to But the did. follow. for now, if we the what than differently of board occupancy So Right the

ISI. Khanal Our next question comes from with the line of Evercore Samir

But both the at kind now. you been has talked being pushback similar point? from this of on you're about any LSI I there of know EXR I your that about for mean, Joe, comments magnitude sort the at ECRI, seeing all customers and

they they are expensive the have it space carefully, out an and month, storage for them, different out don't notify because Some that keep always track moving we notice, because got a them control track we or there's went right? move too we every they that them reminds what customers, because and do some got and pushback call, group very move it you of ECRI rate up, their when we because customers customers what anymore. But customers would from the percentage need behavior. out So

So we changes, an move-outs know our adjust it range by acceptable ECRI the our causing and if program accordingly. excess program, it's then were can today we and ever within

right? is And second financials. Got pretty guess question Okay. led this that as been And interest your program. the well, I front around on it. income you've in my year active It's higher to loan bridge

about opportunity volume of does think program the through set or kind us that into what think the year? So like? look to how next help And of kind

year strong loan very a had in bridge we've So originations.

know reasons the to of we whole bridge a made new partners lot LSI we of them. a that was one think loans to had I that of got and of group

helpful. was that So

Another was talked market spread was about. reason we've a was There bid-ask acquisition difficult. the

So decided get trying of some current instead X bridge the in sell a years. in to owners loan and market, again try they'll

good. were volumes So

we meaningful year, off and maturities, pay those buy. some will some have some will will extend, some of Next

remain pressure not business. make to on sell expect have new It will we opportunities. continue continue going on active opportunities remain loans that we we just keep always and can bad because large, to our we've So we've to -- think downward and depends loans book made going our business I to we're by of we'll We're all loans. exposure. But to some to of because make A our which many pass notes not manage book too bridge done

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

the bit on questioning you kind of to why characteristics those little as line the stay where credit pieces, about you of made this a there. lending so we was holding talk you're to just quarter, this of just loan residual? just the it platform and I wanted on you're decided X selling sense sold confirm could Again, to that kind just but the loans, doing a if And it. sell of

that make of are So sell. to we calculation a loans easy

sell separate $XX So to million to the make A loans, for may million if transaction $XX have sense on or million a it's as million $X transactions. it example, the loan X X $X opposed we and because more

Also, exposure, certain where have they where they or for don't. have markets our preferences buyers

So buyers have well. as input clearly, this the into

of loans sorry, table. which second was the formula sell. And what question? on business more no there's to I'm judgment lookup part It's the So

For you the residual? loans do you are a actually onto sell, whole loan? holding you the sell Or

A sorry. the Yes, I'm keep sell we Yes. mezz. we piece and the

keep So we residual. do keep -- we

XX% the or if keeping XX% whole the whole and stack XX%. XXX%. selling is loan We're up to -- So if the XX% capital balance or

to That's agreement just about happening third-party grow And your talk you is could kind in know to just operator. Again, of each that of kind asset if that to it? kind you and to little I to other then But the grow of you again, is that unique different may improve just continue helpful. about and profitability management growth bit kind be curious, which thematically anything business talk you. of drivers, continue that one as each space, of of management. Got a

they grow to continuing -- we're reasons. there, this One competitor out is don't So of the right? a was now. for business a less for they're us couple business, there's one LSI and competitor

all who our harder with have And when relationship. Also, the at -- we're is harder, of owners operating owners environment more operating look professional them, the the growing management, used compared occupancies manage developed that to if LSI and seek for noninstitutional relationships We environment many for. right? Our significantly great and you properties, in also our of growing business customer occupancies we great service. because reputation. of outperforming job operators, And do owners I the have performance the communicating them. And an and we're because small the a excellent we're running think general, to the with that, providing we is in

most we So else. have we're the expensive business, very anyone more healthy than and even the business the growing in though faster are also expensive margins,

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

a rate of quarter LSI street in on and comment here. follow-ups the October? Just Could you into couple quick trends

have didn't we time year-over-year Ki a have whole basis, them because that. we on a So year-over-year the a we difficult partly so manage on on data Bin, for don't quarter, perfect basis,

quarter-over-quarter as X%, as on decline Space basis, a -- a portfolio. saw For the rates didn't seasonal Extra the you their down quarter-over-quarter, see you of so just much are quarter in

be close you mentioned need you working demand to constant? do can and to that you single-brand that ultimately And on for you whatever In on think X% strategy there's of kind do Okay. like-for-like close, else on, top-of-the-funnel a holding else are that guys basis. better? do a spread everything you think you a order Or gap

I think the latter.

stores on brand gap. in time, same I are exact on have that like-for-like, once the same some we'll stream store, trade that close type quality a single and store area, we're think of the

minus bridge know last question you for the year, just on And what Okay. maturity extent? roughly, loans. Of percent next or the would do XXX plus

those loans last So half maturing aren't November year. until December and of

going time tests to have the they extend satisfy before understand So to all fully we quite some not. are or we

percentage to hard time. this accurate an at give it's So

But requirements. those any leasing additional season, of also Bin, meet Ki to

time So maturity. before they still have a amount of fair

I'm further showing questions. no

over call management So with remarks. the that, I'll for to back hand closing

your forward a we Thank day. technical interest look Great. everyone, Extra meetings. you, in seeing Space for apologize difficulties to today. Have for everyone had upcoming at and great your the the time. I We

now gentlemen, you program, disconnect. today's and conclude does thank you This and participating. Ladies may for