CubeSmart (CUBE) 26 Jul 192019 Q2 Earnings call transcript

Good morning, and welcome to the CubeSmart Second Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded.

At this time, I would like to turn the conference over to Charlie Place, Director of Investor Relations. Please go ahead, sir.

Rocco. you, Thank Hello, everyone. Pennsylvania. Malvern, sunny from morning Good Welcome to call. XXXX second quarter earnings CubeSmart's President include Executive Financial Participants call Marr, Officer. and Chief on today's Martin, Chris Chief Tim Officer; and

Our Q&A by prepared be a remarks will session. followed

release, which addition operating financial website section is data at our Relations In under Investor the was and the to available of yesterday evening, issued www.cubesmart.com. supplemental earnings company's

factors risks materially factors results furnishes Securities The The from documents are cause results involve to the risks, that earnings and differ company's that strategy actual statements. Commission. company remarks will forward-looking the and those include that and other could certain to provided our materially to that statements with cause Exchange actual forward-looking differ or filed from statements regarding forward-looking may and in uncertainties

this Form X-K of together filed the Form earnings release X-K filed on the section risk factors the Report our XX-K. we with Annual with Form and company's morning the Specifically,

the between company's include addition, supplement non-GAAP non-GAAP at quarter to the found the posted reference be www.cubesmart.com. and on financial company's can first GAAP In in website A reconciliation remarks measures. measures

I will call now to turn Chris. the over

Charlie. Thanks

Our primary creating for value stakeholders. purpose long-term our is

As continue creative in per to our to our we quarter, strategy. opportunistic array FFO we portfolio share cash while be flow, through our remaining committed this growing and an demonstrated investments will of discipline and

themselves. as bullish present facility in remain position be business they model. revolving trends to and to raised on have credit expanded execute attractive and our We opportunities our capital are on efficiently we Demand solid,

to JV management value to and continue our grow third platform. program unlock will our We relationships leveraging party by

across by Melbourne varied in market in the violent markets, And got June Boston. Chicago skies market Southern by from day as how weather has as the DC sunny me and few properties is struck around by much record the thinking our travelled in true thunderstorms certainly California Charlie's heat was blue temperatures. the and how changed I today it last visiting Gloom flew I've and I and weather been months about the moderate catchphrase to with in about day And country.

try a my comments to going this little out weather I'm So to morning. theme

to continue of none which self-storage grand the opening only of the unexpected, are with resplendent being developments, a new variable We the landscape navigate timing date.

of store unchanged. same guidance challenge we our as with in metrics aggressive as with with operators entered for developments remain our many long-term. results stores is It Our and of XXXX. these of to same be being nimbly and and the being rate The the to supply. same maximize always the line objective physical revenue relates provided revenue occupancy, continues are impacted effective over a new to our therefore, year about balance very the being remains store team it discounting new delicate the by our we And navigating between in management race expectations XX%

This delta Consistent than introduce performance same rate customer pools. attributable occupancy increases guidance, with to by stores new the points as both lengths of almost the the the XXX a stores Slightly entirely factors. supplier positive impacted revenue same is not same supply. basis XXX growth is commentary new in provided continue by we to and being roughly XXXX stay be rate lower experiencing impacted to those when growth place of longer acceptance continue in

pressure line we costs. acquisition as competition is putting pressure see customer digital rate, top on to addition continued marketing escalation in costs on In new

positive that team to generates lifetime remains in value spend the return a the marketing manner disciplined allocating of and Our customer. relative the now

markets dark weather across store patterns and have thus from those new supplies oversupply those sunny the city openings. the escaped markets The significant right So to thick far as of the I weather mentioned, country. of in in the clear greatly impact in the impact to from to similar ranged city skies stormy of weather varies

dark to partly hour of you to Tucson and currently, sunny South thesis brace expected and Florida. of Thus Houston skies particularly the in impact DC Brooklyn. hour, we stormy ourselves forecast showers and intact, Phoenix and the Austin Dallas for weather Las market on clear to continue Boston, see Vegas, York, parts partly clouds skies of an and of in sunny, the weather in AccuWeather New supply, we having this remains of Washington give cloudy chance far and Atlanta, while Dallas in with the Chicago, all and in with So markets mostly cloudy of and and our resiliency sunny changing

well behind Continuing for in forecast with across supplier consistent promising that starting a looks peek supply the the the of top With weather the to our experience the as from clouds. our XX out in data new the remain on we future XXXX will costs year decline both our and on new outlook impact. theme, expectation We rolling that remaining our as with MSAs. sequential number XXXX sun is based the three peak current in deliveries, in

portfolio clearly to outstanding own sourcing. portion into III joint a opportunities our HVP entered external acquire we The our strategic were so venture as were portfolio. for did the in highlight a and was we second accomplishments attracted When solution of to assets our quarter acquisition XXXX, capital growth address and

fit were investment achieved we number not assets our objectives. Through that our investment did by a of there However, team, and partner our excellent good our criteria. execution

the we to this successful in covenant pricing. sheet strong facility, credit transaction, our In increasing size addition to and the balance our and proving recast utilized package improving

growth XX ATM a and our leverage common shares under fund external sold program, commitments basis. enabling Finally, neutral we contract closed on XX us to our under opportunistically

will quarter exciting into will call to Martin, detail the delve over these turn the I Tim who Now and second transactions. Tim? more on results

expenses. our to of with Same store expectations. guidance in thanks line last range. support. our high result X.X% Chris FFOs your a NOI of The operating share quarter adjusted evening reported was very for headline and $X.XX at much increase in everyone of and X% by of a the per joining Thanks, second continued XXXX X.X% provided interest driven was us the were on end call We increase and in results that revenue

slightly our to of were points to a at different last X.X% few quarter. growth occupancy Thanks for rented this is offset impacted of by than percentage the X.X% down revenue physical rent during average X.X% units of discounts from higher to and the quarter year slight XX.X% year, last year. rates XX drivers discounting We that a levels increase as basis by of was projected elevated a decline

by stores that are stores mentioned new of impacted are his As our report, supply. the weather in XX% across Chris results facing our certainly

Expense item tax growth than insurance costs on inflationary note, line, quarter pressures the a new reflects for pressure costs. the personnel property our and was continued real on estate greater

this was to Our you in on see and pressure and the will or coverage item renewal insurance next we mid-May experienced effective of three four continue increases over lines significant most line across quarters.

quite fronts. investment As capital the busy raising on the second Chris mentioned, was in quarter

investments, multiple XX.X stores Bayonne, our starting stores, in development York with we total Florida Norma of New XX.X and our in team were HVP transactions acquired a And joint one of new the related one We for total quarter operation open to investment in investment very to III two kept venture. in and for for busy during Phoenix million. million. So one Jersey, New Queens,

market in and two of XX it Each acquisitions the history was separate brief a the more strategy. contain each assets these that that venture, good the portfolios, great sheet of the venture perspective. XXXX a received stores. through were balance portfolios demographic formed us investment of a and contains on And several which fit First, assets fit for are totaled for a our weren't portfolios from

and with at interest sharing specific creation levels of achieve the partner, best upon position put ultimately XX% in good debt the value structure of strategy our income good services, outright a was threshold onset investment promoted to on the to strategy. the through modest invest fee Our own for that venture management then be fit our along assets, the our assets achieving investment a returns

related started That strategies partner our that closed to and all a ago about in transactions the venture. the lead year unwinding ultimately June. a We over early two and little timing conversations

assets a with XX marketed receive the significant basis. largest seen. standalone evaluation non-merger on interest, For acquisition industry and portfolio we represented balance the as fully asset negotiated transaction attractive that marketed XX partner we has for the sheet, our targeted then the We found we the on opportunity

Ultimately, the for venture sold party unrelated million. the XX asset portfolio third to an XXX.X

to next XX the XXX.X a XX% day, we us promoted The needed out reduce the our All XX interest the the to third recognized consideration of the by value buying obligations targeted the interest, of The million. were out repaid we our ventures effectively amount which partner. sale used the allowed unlock to to assets acquired gain debt party XX and a and and venture the venture. of the buy partners our assets we in negotiated of assets

We manage end new to XX transit platform. self-managed been of all continue we basis on of transition while expect of quarter prepared stores the portfolio the asset stores end the their July an the management owner own the through closing stores after the have and the of to Management the interim year. in to to to by several new transitioned XX owner

annualized the transaction diluted acquires our a XX together. penny stores, on might with think to stores, along per be an than the but investment yield attractive Intuitively, XX XX with only losing earnings. achieve on entire able being offset selling share management entity an half of not that we assets we transaction little one of income part on the you FFO delusion, less this achieved But actually that fee were net a accretion when that basis to will

from you So liked really the down transaction, different if three we perspectives. it break

assets core attractive XX acquired standalone we an First, at valuation.

an able basis three ownership busy the structuring a Second, were capture over half a we that use the a of as of very capital And interest, assets. tax finally lower busy added very transaction of by full or the the gain on so creation investment acquired last the value to years and to a to a to and even unlock very achieve buyout we structure partner's were and able assets, front quarter raising. our the benefits effective the quarter get of also on

common XXX.X the on equity net per market funding shares at an $XX.XX selling our maintaining From remain raising growth conservative balance average equity we and at our were under strong the we perspective, X.X shares metrics of focused program during our share, price and million proceeds external credit million. active sheet. And quarter, of selling an

our from XXXX, And from a debt then to successfully size revolving other and year rate, unsecured facility, XXX credit perspective, the maturity adding covenants to million no our to flexibility XXXX increasing XXX debt had almost million, maturity. that borrowing decreasing extending we financial from a our amended the we

fund future borrowing rate, schedule, decreased debt to and flexibility increased maturity six to and we've growth, our our So wealth, staggered maturity our average capacity extended years. maintained our overall to time

So balance to quarter opportunities. as to productive and and wrap strengthened busy improved positioned on and second was grew up sheet, remarks our prepared we ourselves our very our portfolio future the capitalize

remains the challenging. While operating environment

results outlook in our for year growth in with as the on remains at increase with increase overall expectations. and of guidance were previous balance shares as an external our midpoint, a assumptions. to expectations per the to prior only our well performance our consistent penny Our annual changes FFO adjusted line were the half The

At everybody for some joining let's open questions. the this morning. this call to for on Rocco, up call again the Thanks point, us

Capital and today's ahead. [Operator first Markets. Jeremy Absolutely, with BMO comes Please go Instructions] from Metz question

morning. good guys, Hey,

morning. Good

morning. so naturally the Good any Are just as But metros seeing notable topic developer sunny as product any those? some Or Tim in supply behavior comes financing broadly going versus your the look you and you stormy. as look – the at out supply based on on real opening where is what pipeline, on just of that these Chris, maxing markets less down here you you slows, at front. really shifts it's is gets seeing some of remarks across expectation bigger those? in supply touched future the

Yeah. question. the thanks Jeremy for

I – everything think of described. it a is you combination So it's

a all consistent like fairly a leveled expected actually a saw ramp much you they're with anticipated seeing frankly, And XXXX now 'XX. up at like not sharp XXXX. So being earlier, you're to I Chicago, activity, you 'XX drop think supply and then In 'XX. for it showed have in deliveries start off Chicago, right market let's deliveries and and the were real 'XX, just in up big

'XX market very just the a So 'XX think and expected like where I quite been challenging. in and were significant deliveries the Miami very performance significant, and has 'XX overall

that. like pull folks a So see to a market I just bit from starting think back you're

So have it's declining significant a supply. several over that of years I the seen think the combination last in asking rates markets

pencil much it for So challenging it's making out. deals more to

difficulty just seeing the first finding and you're more that it's sites were in difficult. seen more the think have the advantage as new of I obvious becoming ones more attractive taking supply and significant markets attractive

think the into starting market for to seeing that are are to environment you are materially. you're But transactions months XX their say don't bids changed below lease deals I come financing has to yet XX where cost. that where up, see bids

starting to the deal. that's bit damper market becoming profit you to so were as the make And a realize more any thought individual that of you on make put people going little a on challenging it's to

a combination of I it's So think all of that.

the MSAs on and capacity smaller the the to capability I now who of their XX the out market. focus moving are think are attention top starting there and folks have

opportunity see do in impact think economy continues to new I start of start XXXX you're secondary way a profitable. assuming I I think in develop to where 'XX, 'XX, to of develop markets the the see and a along, there a to to be supply. start So focused. going shift lot the those and see you'll developments to just continues that's start be in to think And

seeing and execute rate what was acquisition you the the maybe And your more deals. development the No, market. there, It front, few that JV active But and that about deals attractive the isn't to is. seems fit stabilized talk that can you that's did your just the kind you in with street deals helpful. you're of And through you're challenges currency have quarter the of if to midway to pieces the broadly your quarter, in is market. what doesn't of in wondering talk hear you're about on a mentioned of on like just on some further seeing obviously more would out some the you be moving the on JV product there. front supply, guess But how I we couple with either seeing, focus the just a pipeline, exclude more the or there all checklist the what it coming coming

When our stabilized you discussed it's the tend partner our last non-stabilized market, a on haven't certainly It activity times Tim. our and I opportunities there We a remains the its stabilized more of the bidding we three figure lot one challenge certainly assets. be are of Jeremy a Hey, mean, market on are as always at that to out mix at to any time. transaction times that gap seen took advantage for over and what aggressive. out really on come think the is buyer six seen awfully what months, also perspective. I does into opportunity we've there But in do a portfolio from that price is premium the prepared sale across seller at because desks such asset come remarks. between a expectations. much our and here to

you lease from a out doubt. no have there's perspective, As

Jeremy of the asset sell on of things. stabilized is are One competition two things that appeared either or the you desire new dealing some existing the owners stabilized one has significant is instances, in market. in to in sub with their think is I pending because

some And of expectations. sort into buyer's seller's have expectations you account. take And creates and a to negotiating in that challenges so that

of rents. seen and buyer you factor also some all as negotiating your to these creates stabilized That at some relates in to underwriting, between is have that have challenge second in it has market you the into a decline their a deal and current seller. premiums in to think significant challenges customers asking I markets of where seller which

interesting time. a very it's think I So

You those should take just of the arrive? in make described? advantage to balancing, that certainly given have about to Then the that allocating to to the issues they going your of there some in you today, sure you're future to head. than capital seeing sure capacity back be want have better Are opportunities thinking question make we're the in I have you future the what how of you're

terms I Great discounts the as a components a there's If me rents, we for here. higher mentioned up last obviously you then flattish basis? a rates trending know bit, where in well. the just you quarter. rates Tim, just that blend been of if one and And quarter they I in all various together, do that less last come on in achieve think something maybe or were year-over-year more it's home. trend little

you year quarter did units the components higher we rates – we about. on – same as little focus as the and And it's to rent quarter XX we Yeah, just of blend to ago, basis discounts a down three occupancy X.X% a rented tend net reiterate rates projected together, percentage that effective all to we than I at X.X% this were you was those, from talked average had When negative. X.X% were think up a points.

And is that far so holding July? in

is. It

appreciating is time. the Thanks, It guys.

Jeremy. Thanks,

question our Please comes go ahead. And Rose Citi. next of Smedes from today

talk Hi, the you valuation the of wondering rate sold you're in properties on more a little you kind bit or going portfolio thanks. and retained was how the was on XX just you bought? promote could the I if JV about that to able on much that the help,

Hey, transaction We're to delighted long We talk would this the Smedes be on talk Tim. like. about for light for and happy with more to about as is result delighted Thanks question. the some as you and shed this would we're it.

to we owned the bought, of do to partner with XX that. stores already, agree we portion for even our ultimately them on that able valuation we a were we had a So though

to the quality by the valuations very high about in given had lot the think obviously and the effectively acquired We of that us if by XX XX cap onset. that each asset of a perspectives, fives that then marketed themselves, are stores perspective, XX different of the from we rate from which you from those, a also the XX portfolio, themselves, attractive the targeted is

So the the it value million. creation when way venture – set then all in you $XX little over the share up and was invested of how through work how was time, a bit and north the that structure we originally to

creation reflected through, XX of XX return run $XX more we that was right creation, interest that little which the of that period pursue our than And for value all a on you million value through when promoted earned was structure. around million, had ultimately, bit all and in our CubeSmart

were take profit roll that we term, of to better in for able a of And we stores. that So reduced into lack and all which in XX $XXX rolled invested today the effectively basis for assets is much a obviously awfully investment into and XX XX that for yield, then us. a we market the million effectively attractive for high were an stores, those six when to invest incremental able at in

helpful. then would that the just particular exiting That's eventually mean, of just is think to one? about – with those structure – this joint of I how you sort you. maybe Okay, be ventures would you have thank – or unique And that remaining sort that this

I mean, Yeah, each its venture stands on own.

shorter Some This had a they're mind there. started ventures term partner have – timeframe a one investment. our really a – don't longer a a when lifespan in in mind. had have They're

see both this to would get on from I is time stabilization. term we're monetize they here HVP that are while to there's were IV six to and lease while value achieve that venture onset, a capture they will to returns then had do up get HVP the to that year up this the win-win what we we for partner able think onset, couple stated because able venture acquired four currently seeing if agreement at horizon the that at it or parties. that with stores, we a were that ultimately the a our the for returns and do in in of we'll able assets lot of was And no and a lease we'll III, happens able are up type the lease years. that Our achieve five, repeatedly

then your fee And just unchanged. the management guidance income, Thanks. is

with XX wondering guidance maybe expected going those Or out? Had clip or you just sort anticipated year? adding of and – are coming So their than into stores you I'm just faster that at the you

that's Yeah, a question. great

that think different that of I nature off we're a When we're of that sell to in. bit a owners able platform, offset anticipate a goes income to assets, of grow things. we've stores fee than combination the couple not, We their more been that's of that continue stores. to away, our and fact the business it's add of often lose that's little the going always by some

would overall more lost the we've the add we've beginning of And a expected at year. was we a stores so year, plan. than beginning of the that flip been more say our had versus at few we than I expectations the few stores And the able in side to of

the day remaining to So largely at we comfortable the of we have get end that range provided. with the

Okay. you. Alright, thank

Thanks.

our comes of Todd from Please And KeyBanc. question go Thomas today next ahead.

Hi, Good thanks. morning.

quarter. First place you square in negative the I per from and quarter. first that fell occupied see rents If net in were the $X.XX effect that mentioned rent of the look foot question,

curious So typically season. metric peak you into about the does just I'm that. if increase talk can that leasing

trend some Specifically think here. thoughts maybe you that how provide from might around

metric It's trends that different variables don't effective higher to obviously to of negative that a in our fact impacted going have are that rent – in I your and I in the net relative rents markets that it's to impact the had about going you occupied are how markets. thought lower that Todd, on by to so context are really in rent occupancy quarter. impact multiple going be not where that there kind

units markets. and occupancy shift of low versus shifts rent versus direction impacted rent high where levels in from can would growth but net occupancy rents, So smaller tied I in It also to by be to will largely effective think is the be larger to markets units.

dig that variables those different even about out into think off I So that components. breaking handful actually impact there cuff anything a into would how And could the don't of have are they that.

existing Are here? what's than Okay of strategy the sort can to increase rent ECRI portfolio? some softer markets talk that of dialing your but you across and customers of number then pushed to certainly rate or through strategy to the increase There's the bit in increases percent that little others, customers happening portfolio? a either are about or sort eligible the you across the customers are back the that's on on balance, being frequency of

We're really to that is supply The pretty Todd. not on over changing a in perspective, the is from portion customer growth very of consistent market long very perspective time place that in a remains that period a rate agnostic new to what's going customers. from

customer in the supply amount rate no to You portion for in supply increase an to now pretty their changed customer through have the in behavior and resulting really an place with timing recession, through great methodology the and existing period entering the the hasn't the cycle. the new and deep of of

along often in a Therefore, So able is stay increases, changed is that way more that a the are in have we longer to more that to to have by to customers increases pass much us rate increased how of for of haven't of has existing because with are the bit the much I little elongating a people length ability think really our along because more an we are change that we're customer. population. get that population how do passing haven't behavior fact given that our approach of seen our in bit we and rate we much customers. bit

terms pressure said up on which there's industry. not customer acquisition costs, metric reconcile advertising – costs mentioned then think were consistent that marketing in and were X.X% Okay, where how's so you spend, large as across portfolio and a up in that trending expenses, lifetime a about sort with you Can of and lastly, the you value and is just – Chris, year-over-year? But such just the quarter, we're in what the just that of you the hearing digital is increase. today customer, that of just that that

a foot and now XX, you XX month, average with months question XX a closer level, They last if they're pay staying XX, is mean, XX, your roughly bit a they XXX,XXX think little Yeah, to by the $XXX and rent answer about I from us longer. months. to customer XX

So increase are going as in we digital is of the the time. amount of the we that described. customer this across space bids folks from right active value perspective length being reality I based of in up various a is been long a of what's operate aggressive that both happening longer an who but of a on dollar more the stay, in is that marketing now markets math The bidding have seeing that some from for in the

non-traditional from So they're willing York And that and some entrance you're regional more of the storage also particularly – from at bidding to take the customer increasingly in at the California into operators. thinner seeing folks of margins. process and New from some

is So pressure. putting it

want rational spent steam. on customer see you we to relative to you we've from you of in capital some intelligently of it if have make been much their only value remain right to decision terms that do bidding There's is is some so acquisition way increasingly these long-term think to to our a be been answer and focused loses The costs of want we've trying and nimble or really be becoming the operators for chase. challenging. in stakeholders, delivers to And this

the et in some quarter, campaigns, us spend and for being I bus, the had pails, second think of billboards, the that subway of of modest in New particularly growth. of in and home that of our quarter the in cetera some that out he had timing York math the just more XXXX So a

the as third fourth a more marketing we much see inflation. into pace is in digital as overall go of our a than at that you the will this and quarter moving up in think I rapidly advertising growth expectation spend percentage and year growth,

you. Okay, thank

Todd. Thanks,

from ahead. today go James. Jonathan question next Raymond Please our And comes with Hughes

morning good sunny from Florida. Hey,

Good morning.

in Ends upon part you're of Jonathan. Florida what

and True, nice are you give mind heard you throughout like versus details year ago, can call. in I gave some the customer that. earlier trends rates street think traffic us and Tampa at conversion more Thanks. don't if wouldn't quarter where the I rates? And occupancy you on least. today on But Tim, some rate trends disclosing

with, trends. start with I'll Yeah, customer

stores If it across at to for added. rentals strong you portfolio the of and the demand relative quite if look number the own that product, plus the across continue we to stores that again, we've XXXX you see manage, solid

again, lease lease seeing to fill that what the newly continued think in the of 'XX stores, ups. but 'XX, certainly we you're or I pretty get development and were healthy, not up able up

portfolio, stay we So about I signs think they green the going receivable, they're think as still auction, customer is the healthy about of across how length customer good lights. Tim units when is the accounts all other the demand of talked to environment

our a think I spot. to from in customer industry an perspective good be continues

Miami I rates tale rates you as I as trended of XX% rental described, the about again, go declines X% no third and type as we'll question, rates, Houston supply. think of in markets, those part XX%, the your is then market markets see the this in like is of think quarter. But we good in XX%, X% the seeing quarter, one And we are up third street rental rate or into street growth through when second the where it still slightly.

conversions into those reservations center rate comes And reasons a have able at to and of at many from those but the a on actual then unit; reservations. who from where conversion we of competitive conversion we're for all the conversion sales rentals convert we And we is rate ratios bunch call it of are, website, pretty Each for and or targets. a convert those renting the those how we with folks rate these for where then track the click question, ago calls conversion of track sales of a store. we one customer rentals each don't into and reservations consistent onto of are Jonathan, of sales a disclose one them track We your our each which were our standpoint year meeting then perspectives. that into internal ultimately, obviously different targets

on it concerns any control New form opinion do Then impact have fundamentals? helpful. self-storage the really more for on given York early between or rent is the Okay, that and housing, there? of subsequent one to self-storage impact that's me, just relationship Or you too legislation an and your thoughts apartment

I to Jonathan, too think early Yeah, opinion. an is form it

I general. think, in

supply living I for wanting to issues in around the the find our think the movement out the that life York market, good the and solution continuing in square of flexible. that dynamics per the the as a overriding bigger foot, and and of constant is and attractiveness market low in New smaller space fact be are around product to that customers

storage in for the continues think the the I some in City York outlook they're of New be quite surrounding of So issues and positive to spite facing. long-term that other

term. that there's ever it some a time I think into how control difficult mind probably impact could on the see that an over near would was business, in our that impacting period trickle be would of the to on logical if somehow have And us and connection housing, that when in really

enough. I the appreciate color. Okay, fair

Thanks.

Green of Frankel Eric from comes today question Street next ahead. Please our go Advisors. And

you. Thank

okay know in we June you California. bloom so survived Just the here

It's hear. to good

properties a Yeah. get sense the in sector. a could joint Maybe just venture interest the XX you the of just of institutional with profile, buyer the on investor comment

Yeah, institutional and private was capital with and help. the to primarily operator stop funded that it a I'll there. respectful profile that them to is

sounds back that We jump Okay, queue. just you. the good. right in might Thank

Sure.

comes Wells next Fargo. go Please from ahead. our of question Stender Todd today And

sale? if late, you they JV you from on this. covered hopped acquired the separate outright? properties got I the Are XX the Are so XX already you from

in and two from Phoenix. the and in then No, Florida XX JV one

New Okay, got went and in got East the just shifting the from budget pushback up asset QX any quarter, to Meadow York you Alright, your color pipeline, that's the one project the if is pipeline, the there? I timing same guess identified it. development

it is not the color The is same project.

schedule of East development the project referring Meadow been we this at that to have our on had So you're was that the that development project a development to point. a store couple is store for pipeline. new that And years the exited

an and comparison, one off apples is there oranges fell So on. one in fact came

to million that so? one, about had bucks Okay, you the X what in looks happens it investment or that

Yeah.

wish profile getting partner. was return plans as in weren't deal for. we were were that a we shift development them There our direction to in to that equity raise existing invested and build them time. had capital And and to try return in some conversations were structure, the direction. they and best a the the the profile shifts gave every with significant different to one luck had really with were And comfortable move the that of having in to that to So started a called our demolishing get to of started dollar which we what for the hence and project the that we cost delays approvals over us. opportunity the There started us out, take move to able able in do

good like characterize your and your about can size you East maybe talk partner? and What's it the investment. pretty Got looks percentage Meadow, a just JV then

consistent here risk consistent in very MSA, a the our overwhelming York, years. to of and five partner of profile structure. asset very quality it's majority is the Yeah, New coming seeing And pipeline our or boroughs over with developments you're a consistent the very it last four that through so

you. thank Alright,

Thanks, Todd.

Steve our ahead. go question Evercore. from of comes And Please next Sakwa

Thanks. Good be your peak year next year morning. supply comments the rolling would of and Can mentioned from industry as Chris, would fundamentals three next you a and that kind year there's kind thought you of and that are you put bottom perhaps you we issue well? of this year infer of that or lower. that kind the year to do the drag that into think on likely this in

same terms that store year. into using specifically next Yeah, I of metrics, will as think fundamentals. in It drag

much. Okay, thanks very

from of Advisors. is follow Eric question ahead. Frankel Green go next up our Please Street And a

Do maybe capacity the – further. of in just bit relatively want willingness have you talk venture I again you structural venture about even this joint joint the to to or Yes, you for short-term? the type engage it a hold if

ventures us and always for to are accomplish the Absolutely, particular I strategic ability that. objective for a think

a end able ultimately those and tie the would three that and interested great fee that time those, at that with for portion a income, us opportunity was of have years assets have a we they're we structure of larger that half now structure a sale, – for two interest earn that the to up ultimately As because there to small our promoted to XX invest create we a part which able at a was in were that venture point IV we a the are ago we earlier HVP buy stage that formed end little were is in be in management were assets to in up, that about targeting portfolio. strategy III them to the that accomplish is in what were are early and lease talked portfolios with did, of assets, HVP partner we're The able that a current up. venture of we venture has relatively weren't we

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Okay, thank you.

Thanks.

the to Marr like to remarks. closing this over back the concludes gentlemen, and ladies Christopher any And conference for question-and-answer session. turn I'd

everyone you. for thank you participating today. Thank Okay,

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end their and look sunny So of talking and again looking at I interest think I forward everyone aspects for Thanks. are thank CubeSmart you all continued skies the very from there in to ahead I the in to quarter. third

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