CubeSmart (CUBE) 3 Nov 232023 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the CubeSmart Third Quarter 2023 Earnings Call. [Operator Instructions] This call is being recorded on Friday, November 3, 2023.

And I would now like to turn the conference over to Mr. Josh Schutzer, Vice President of Finance. ahead. go Please

Tim Ena Third [ call morning, Welcome Officer; everyone. Chris Officer. Thank XXXX ]. Earnings CubeSmart's and Executive Chief Quarter President today's Chief Call. to Financial Marr, you, and Good Martin, Participants include on

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

certain evening, website remarks under to forward-looking Relations the the statements. our yesterday section which statements materially at differ financial company's and forward-looking of was release, addition from operating and results include actual other data involve company's www.cubesmart.com. earnings Investor will The uncertainties In risks, these to issued cause factors the strategy earnings supplemental regarding is available may that that and

from to with forward-looking XX-K. the company release Form are documents report the and the files specifically Exchange this in of or morning, statements risks together annual our Factors Risk that our factors actual materially The provided Form furnishes the cause we on section filed company's the Commission, Form the earnings could Securities with X-K X-K and and with results differ filed to

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

turn will I now to Chris. the call over

morning, thank the Good you call joining today. for and

Our third quarter strategy. results reflect the core focused attributes of our quality

New City. its demonstrating our Our York with is strength its resilience, led by portfolio in demographics, sector-leading with urban markets particular

while to expense gaining minimizing Our our operating efficiency team is needs technology creative our leveraging simultaneously growth. meet develop sophisticated customers' evolving to ways and

the after of primed having a with that capital market well-staggered inevitably to arise excellent schedule, periods balance Our in opportunities sheet take of advantage growth is us volatility. external condition maturity

macro to existing by health trends being and in counterbalanced ahead, uncertainties somewhat environment, tight look a the market, remain housing customers. we term economic of resilience we As our competitive very rate with consistent a street less near-to-medium the expect and

we as located our the lengths what markets to use to customers quarter period in those stay. is of lower of longer more and we during this the experienced to renters inconsistency third expect tend of and towards properties experience lend continue urban makeup in we outperformance What and skew themselves the will churn relative the of more to demographic cases tends the

construct, portfolio impact customer in a existing and new supporting healthy program with Our our are increase rate combined heading continuing factors the decline a positive next of year. into supply,

sellers in logjam a acceleration predict of certainty, rapid interest policy homes, that in single-family to demand an the or combination While in timing the most current new through home our a any of buyers affordable in coming difficult will and customers. amount with on and rate together pricing is broken and movement any expectations, creates construction of growth certainly sales pullback portfolio pent-up top of acceleration experience line costs creating as a relaxation

growth, in the on projects, the we external and front see the capitalize for and refinance need we closer opportunity together, coming on with and to place our developers the presented. same seller as deliver when will expectations sheet We gradually buyer recent balance to is that are expectation along have opportunity external team meaningful growth

delivering. our while capturing demand the in controlling manner we maximizes on customer meantime, revenue is the costs brand remain known service, customer a the outstanding that In focused providing opportunity and our for

Thanks, Tim Chief Financial and over Martin. to Officer, now our turn call I'll the

with were you in on to third line taking thank to everyone our quarter results call. the us the today's and quarter. Chris, entering expectations Overall, Thanks, the time for join

face normalize as headwinds pandemic As throughout macroeconomic and post we continue volatile expected, experience top a continue seeing we we've to deceleration from the environment. year been to line the

in and quarter, through move more prior our increasingly revenue competitive customers same-store new were more environment anticipating for the became guidance. we pricing the we competitive As than

As October a to in were in year-over-year effective of a gap a widened more and to then reflective than October. and Net XX.X% out bit environment. aggressive that down new more expected XX%, rates reduced pricing we had result, September into customers during rates we the quarter

Same-store occupancy points basis occupancy year-over-year more quarter end XX.X% ended to of quarter basis the gap our the throughout year-over-year down and occupancy at point gap pricing, we at October. reduced the at gap aggressive end XXX point the with narrowed basis October, XXX XXX

revenues the more same-store in of part on annual to revenues latter we're the our competitive range and environment a X% Same-store we for year-to-date. X.X%. for increased the the pricing X.X% seeing adjusted expectation X.X% quarter of impact here to Based of year, the

We initiatives continue technology on to focus our controls. see the our and positive expense impact of

X.X% For X% just year-to-date. and grew the expenses quarter, up are same-store

the quarter, of share third year. which growth per adjusted represents the $X.XX, reported as of over last For FFO X% we quarter

acquisition From an had investment quarter. standpoint, during we no activity the

a and to conditions. take disciplined approach given patient We deployment continue current to capital market

to a us that period and As opportunities meaningful those we be do for will attractive presents believe conditions invest grow. stabilize, there

relationships sheet, balance partner is positioned us the Our to and right. investment team time our when have execute well our

does the quarter added opportunity stores new in XX total platform environment. operating to the third current added year-to-date and end. management XXX give managed to stores our us stores bringing We third-party the our XXX quarter, leverage Meanwhile, at platform us in

to continues positioning the and next over also pressure to sheet avoid us months. or balance source be strength earnings a to of be headwinds XX opportunistic conservative Our

years, Our of average our is rate. debt maturity is fixed debt XX.X% X.X

maturities EBITDA. remain until to no very and X.Xx XXXX low of significant leverage debt November levels have We

Details midpoint and the $X.XX adjusted guidance per share. per expect share be of our year the FFO our as maintained of and $X.XX between assumptions were related year full in evening. and narrowed our to last earnings included range the release we XXXX and Overall,

on everybody the this who but bit call it in you looks getting Thanks the to Apologies a joining good. difficulty like for us of a of again some morning. is little had queue,

[ up call time, the this let's At ], questions. some Ena open for

Spector America. Bank Jeff line from the of of [Operator first from Your Instructions] question comes

if you're hear Jeff, we if you a question, asking you're on are. you, can't mute

me you that. hear Can now? about Sorry

Yes. are. There you

is first My apologize. City. I New York question on

talked into do supply New X 'XX heading York you confirm, City talk boroughs. You we to like are the specifically, New stand talking about where strength the about thoughts for York now this particular about really -- and quarter. just you in this And City? Can pressures,

X question, But that third if we pressure confirm, into quarter quarter Westchester boroughs, to talking lesser Island, boroughs about but to a on fourth per strength to XXXX. we and in expect expect into North in continue continue. we're would Yes, and the focused good, seeing Long the your that see the that the County, you're the will supply Jersey, strengthen continue to bit a of extent, in

the prepared you're percentage you the I less my in that reasons have all mentioned market. by For higher impacted remarks, home of single-family renters,

using the are have as spaces smaller use movement boroughs. use and us You more case good living a you're still seeing to and where within an ancillary good folks movement

that. So pretty on constructive

going Macro supply is be storage 'XX the think country, to I in across in the into then likely boroughs. to and helpful and specifically 'XX

next similarly a impact see and in Bronx. seeing on early will completed of the portfolio Brooklyn to no and in or There's be minimal this supply, less continue a impact the deliveries less either and year which We a fast in have year, that Queens. cube couple should

it from I And we're experiencing where actually that new, some see some I we only next just and of X the are through year. pressure that, given constructively think, half would again, but reacceleration the are back X say we we'll there into takes supply. working only Staten dearth storage the pretty borough or Island, optimistic as of in get

Chicago on pretty a New overall, supply from Boston constructive and a experienced urban, perspective, consumer in seeing perspective, the particular, in back from we supply So Washington, I impact also and that come but we're it in there. D.C. York

So constructive there.

between the second through same-store, but the question, just dynamics And helpful. lowering maintaining you Very the walk can FFO?

Great it but within more ventures, urban of to not our offset. point better-than-anticipated our certainly, Ultimately, has some ventures in the Yes, on and thing side, urban one again question. things that joint seeing to. portfolio, the newer joint outperform that expectations focused. are the therefore, counterbalancing we're is and of of lot are of to to lowering a nonsame-store rather, at our expectations it happy continued some of that to that portion lease-up our focused, more -- NOI it's the FFO maintaining It's small same-store there's midpoint as a

Our third-party expectations. faster a our platform bit than is management growing

could higher within You up fee income, in expectations see range as the tenant us that the that we our store puts that added, it to of insurance on improved also expectation our revenues. relates count it's

efficiencies level up within also as we good cost Our expect land those in assumptions continued well at the that just what us some our a level G&A. And comes of then FFO corporate overhead, ultimately ranges within of operations of an a as to news and we has land on expect down we at can controlling perspective. the given shows focus the and both focusing lot it on where range to from of where to on

So there's a a quick bit news that question. of answer no that in little easy lot to the good of provides offset. It's areas

of Green the Your line comes Spenser from from question Allaway next Street.

environment And bid-ask year-to-date. Understood rate bit you comment environment? being broader guys the extent the terms What regards look you like deals? been in But obviously guys spreads on a looking just to you you seeing your little is prevailing that can comments today? like to the of in at transaction disciplined are the cap and difficult have market, are the what

to the most least we've what of from talking was that, were year, all there off, it, talked is earlier certainly quarter, like direction, been talked but we a the ago, talking calls kind still in year, at about continuation Last moving us interest at -- there that looking perspective about fact that we spread it of call for bid-ask a about it's XX%. that the we Spenser, we X We has were XX%-ish. spread. was were of in Yes, were right which bid-ask been our about that things maybe

contract we're are the year, to did going more put quarter. little close expect to that some As in we we the progress fourth We under getting bit opportunities. find optimistic something a we that through

that we the both works price at from well which And so as as opportunity for obviously, comes. an finally something that us that attractive found standpoint opportunity was

bit So gap. that there's a bit but yet closer, deals still getting little a of for looking we're little a most at,

that we that super standpoint. time We I is, that my are mentioned positioned a super we both here though there believe as there's sheet prepared balance remarks, well a in from coming optimistic are

-- the about here ready is market right need is trigger We the a is to think to go sellers time as start good willing coming team more opportunity basis. frequent and a be. the ahead realistic more pulling on buyers some start able where when where get bit and little Our to we is and to when there

lastly then And Okay. just maybe front. operations on the

you are ability How some more more the markets? of markets, in your rates markets of commented You push of there. about some that ECRIs other urban you're feeling and urban more seeing strength outside those to

the been times Spenser, all the of the the for When opportunities trend about Yes, very across think consistent has last we months. several that our robust presented markets, and themselves during 'XX call 'XX, around, the of gotten the has first more the average in to competitive. had couple market of it, as up of months XX% amount on pricing we of of gotten terms across increase here portfolio

signs And seen the have from seen the results higher we peak. remarks, that kind if growth range, pricing consistent we've -- year to but relative come in pre-pandemic, would than challenging continue quarter. pretty we into continue new throughout a of make this my we -- downward good a contribution that go forward. to And we still during will had health. of the as prepared And that's to of such a June mentioned here exhibit our on to May, market customers. year, XX%, that the on third that be on I But feel there be been And down bit back we've that, that will from current XX% average XX% constructive think this about of as customers by little quoted as the basis, still in

from line the Smedes Citi. Rose from question And your comes of next

were to to changes you of have in combination the LSI you I just -- Miami, think significant individual know assets already. your New markets changes having and changes with But mean, ask where you -- I strategy you're to seen the strategy in you, I any you York of have I and or where mean, going forward? the respond I any there? wanted like kind in that to EXR, see competing

and we our of Southeast patterns during and of dynamically I rate see think as the we in look all discussed, it of at run-up markets had that market, I in Southwest pretty migration brands big and markets COVID. some more we markets, as that some other urban across varies, most all in pressure changed quickly competition the New again, by those constructive York see really

no brand So particular any than that's operating point other. different to any to

market be of accordingly. just be brand store to a or react own in the a competition have regional and cognizant for manage, we We whether local national brand, or the the that it micro a brand

kind Okay. the suggested little of pipeline? for that notion? outlook could you bit about you about And we of supply next supply. bit your then do you portfolio? that? folks other overstated you a talked could that of more that seeing developments maybe And probably online is that see just with little Are falling and talk year out York New Or a agree some supply coming But

Yes.

the that storage potential process developments a grow entered on for I is that period think and but with has there's potential database developer obvious some an the at supply stale our to is elongated the new they the as challenge observation tracked, from it the least abandoned database, not get that's that third-party equally data either remove project. becomes sites the or efficient of paused

that data the your I overstates, would with potential of deliveries. the premise actual third-party amount we overstates perhaps it So that think agree

for Our inconsistent of environment cost new cost cost capital, of materials, is labor, raw the that in the supply outlook overall impact rate obvious many the reasons, of markets. customers of for

a local pull and All started. on of interest that developers bit to permit pressure putting and is get of a ability the

see in constructive think 'XX. feel at 'XX, the into the given environment. say constructive storage but first like the in So markets, timing you would long many Again, be hard we for can to supply again, fundamentals that of will environment would, half how it same new least 'XX,

positives I as our along go health remarks, again, X prepared as we current into for year. customer with mentioned are the storage So in of I my next think supply

comes Todd next the from line your question from KeyBanc Capital of And Thomas Markets.

demand just your customers? about being than sense into your in more pricing you pricing, top-of-funnel related to First customers that was quarter the change new comments which from question, ability Any previously the softer a impacted in was to little drive anticipated. to competitor there portfolio? relation whether in a Or

say capturing time the obviously, that overall were call they last it it would have seeing into capturing was Yes, sat of it environment declining to we couple the reflective X September had change the then aggressive meaningful the last been started and expectations, competitors. we of in What we I seeing were years. more pricing changed at really more environment from over But were our the would at demand where ago. was that pricing and the pricing we were was was when anticipated we than -- demand and the of way that a here was in at of a from was, months levels in we October were what that

lower thought necessary than And months new customers so ago. and our moving necessitated would that we X reaction to systems pricing to our us our have

you occupancy the -- back of points. were a XXX bit you of end And that of same down October basis in the you Okay. -- down called end rate the October? at so occupancy then little at store was What October the at mentioned

actual occupancy end October, The was the print at XX.X%. the of

New the York, Okay. growth, discussing just revenue you're experience then a last from That's or quarter. the the basis portfolio. the deceleration stability question, experience of And York back back New did to strength did last XX in It that point helpful. -- overall segment

overall for sizable just pretty XX%. it XX%, I'm curious which New you, New is as York, portfolio XX%, at about York we the And think is

at more to you perhaps could maintain occupancy current balance and curious to potential I'm growth a little Or just that portfolio? expecting the if and bit. levels? on relative at rate you're level comment you see to Just just decelerate growth modest if a of sort hold revenue curious of if the

latter. The

the revenue York same-store So rate will growth there of New broadly. be in would we expect some the decel in portfolio in that

like high of X terms and -- in main Brooklyn, quarter. we higher were offset I in think contribution, significantly in Bronx pool. quarters, more couple that muted their Xs looks fairly of The modest some next in lot the which same-store still over of expect it X broadly, was more the Jersey, and the North decel. we the But deceleration York New overall but then the degree a our by than MSA would printed Queens boroughs:

Okay.

that you On boroughs of the strength? revenue seeing XX% Are in XX% are growth actually you gains of or the revenue New in the York portfolio? specifically, segment seeing

really the the a Brooklyn side also third I It's relative very borough overall, had Yes. it degree again, but de a quarter. or modest on in good err and versus by some and third bit a with But had boroughs accelerating. minimis, basis, will again, how decel quarter, supply of Bronx but we lighter. Bronx. would -- I vary think fairly that what good mean, X news Then would no and Queens, I to those expect flat the little expecting on

the comes And from next your from question UBS. of Michael line Goldsmith

It a nice this -- support of as next much the guess does more in that pools. should same-store create this not line portfolio portfolio? the healthy remain portfolio of portfolio with question that is gap now portfolio rest West with Does benefit there different this performance the performing XXXX? Or is, to the providing overall does And a of to seems of is -- tailwind bit growth my the how in create storage a will year? the overall portfolio? of be kind continue to the it compare a does as overall I the though given same-store

higher over more It's impact like kind as the improvements of see to performance we the of portfolio. continued a -- that portfolio the compounding onto the platform. because look there of the a time, and will, more our grow bring storage is at rest things when we pace of think I West

And the early benefit more -- X else the first more portfolio stores year on or diminishes looks or onto a to and a our being so those then store more more time, on for platform. more have think all like we whole. and meaningful that And over I improvements look a and portfolio equal, are that of starts like

question And expense is like advertising. follow-up been has then It year-over-year. flat that my seems on

seems pushing kind So overly like is it not drive as it -- environment, overall demand. to a of you're despite your the lever that

about then this related a of philosophy some costs have that, in to of So on your like competitors pushing little cost Google or any to bit there? can And pushing the and advertising higher? you seen your change talk the advertise banner you the harder -- some are of ads

So our we've of has search about be terms approach couple quarter. to spend consistent thought to in quarter specifically last marketing the over been in how and of quarters from to

X very decision But We lumpiness paid side haven't over quarters. in that individual to particularly last a much had how and terms the we markets. think about search overall it's spend of to allocating the week-to-week both on

again, significant And be will see be it in spend depending the year. last opportunities. will pretty upon quarter We we had so it where of what the third

so And this significant. that the wasn't quarter change

efforts go can and as that be forward, costs how we generate. by an strategy have from offset in of go the returns search incurring on to on that impact our we customer of side, our our marketing and the continue costs out bidding think on certainly Overall, can that vary will based we then efficiencies I side again, that up, go capture. week-to-week And that. month-to-month. believe we terms Competitors answer on the

of on kind that's but that. of union state the the answer, long-winded So

line Sanabria from comes of BMO. question next Juan Your the from

but if I'm same-store the top able same-store just why go not me maybe with wrong, both earnings back allusion Tim, correct earnings. wanted questions changing, delta And to for to one to, an I necessarily were but to made those to ranges maybe between other. you and of that that within the just one not the the maintain guidance Jeff's you regards the think explain the and I at

for get hoping comfort could earnings on the how a core within see expand and little same-store bit revised at and so both both clarity the the upon just ranges So earnings really we more level? you can maybe operating just things you level level your

guess I provide closer we know closer Yes. I are results mean year, don't answer and answered hand. ranges to the I annual sitting to before. and pretty and October how any the comfortable, I Sure. of we're than level, here get to the with you it the in you different certainly comfort question end much when

so XX have the We this [ point. answer at XX, ],

have comfortable and simply where per FFO support of of individual share are a to we're with think And I assumptions ranges there land those it's range an underline that we from So we the provided each -- where to -- the -- and lot overall again, that pretty provided. it's of the underlie really ranges ranges standpoint. so we is overall one -- and expect offset in land expect then that

with revised the we we comfortable as we're at we given So always know what the moment provided. are, guidance that

Fair enough.

are your then to just a it's question. better for What a -- And And by would seems on be caught kind things less when see like surprise. these just what might change wars everybody lack price catalyst It term, of of Okay. to competitive? end? the be thoughts broader guys' a maybe

Yes.

transactions to catalyst down reported look is again, easy the going single-family in the as were at around environment, are, think we certainly, XX%. which home believe out data, look movement. I be the new August, one I I home the think, And to last consumer is

And mortgage most clear incentivize on buy occur not home to transactions seeing the side. you're fairly big the in have a just are as there the down loss as leader markets, try to buy using existing the it's So in purchase new if leader subsidiary homebuilders mortgage that down out folks homes. a to loss they

to storage. some I a So overall create fundamentals meaningful think, in for be, improvement that certainly catalyst would

I policy consumer think credit and your your home, borrowings. obviously Again, interest see, rate rather other interest not move impact I rate but we impacts only on single-family that than think card again, to be it if restrictive, the more does accommodative

think towards would movement. a be that I catalyst

obviously, has XX I move the because been motivated single-family a fabulous around, think up I've run, down think obviously, very likes in long own next be consumer for the the I will years this and is who a fabulous it the been perspective. a XX think we home business, have for in in to the years on we States possessions, United moves and ladder it,

So feel pretty constructive about it.

think is my that good. crystal when ball I not happens, that

or I levels from in think talked add the here, think period on that old that of that we abnormal return for we're you're months you the now to little to new to which that the that, than bit return normal all a enjoyed we change a we've about normal past getting XX XX normal, X it or ultimately. for better is years, the and

But to to strategies or capture is for that a different the than try change, declining demand your to share share certainly, of have product. during what of you're overall your overall more going consumer level

from -- seeing noise, we're by taken of think period I and others. seeing we're that it's change, and so actions reactions And some during

And you it get now what back and start go forever Chris' always maximize they've when been where when pretty and go okay, from we ultimately, new have from you you and and folks to normal which We where more as step have is we a when strategies of a we back take been, think And then back we to to revenues. from stability, there, back demand, that. say as do pricing insight a consumer say, then at into to reset I I grow. here? to see we that and kind good go doing better stabilize go we've we've been sector, we've sector there think that as

of And question line Kassandra next from Truist your comes from Securities. Fieber the

given thoughts thinking intensified we And what what that. landscape are share have recently existing been curious, customer at your of could competitive customer to has that noticed pace rate the around changed about, look talked after we XXXX? kind view? already the If that And you increases? increases I'm any behavior So you've now has in you also, rate push in your your XXXX ability changes current

averaging track and right here but month Thanks, an We some as that's the over terms customers average. X, increase, November, in of receive vary, increase. amounts the -- this of Kassandra. been quarter We've the last XX% some the around October, average again, the into they

We have customer and to We program. the not a think as very consumer continues seen consumer resilient. in behavior be result any changes our of that our

our makeup portfolio us think the who We stay tendency to a to longer. a customer has leads of

And so go all 'XX, anticipate don't on that changes positives out we major front any environment. as that we in into

kind of at we're year going out point. into So that's about next thinking this things as

the question. thanks for So

answers that it. think I

you you've Okay. as increasing rates That's mentioned the competition, seen and helpful. And continue then decline. street that -- rates result cut a of they we've the as to

are share below rent are -- share of total the what you could in-place your rates versus could If know what currently? And today customers you street if you XXXX 'XX levels? then percentage if also

Sure.

below XXXX question, I who believe, levels. versus percentage XX% today And customers the street? So was XXXX about relative of your are levels, today first second question the up was rates currently to rates those are

Yes.

the because around. to something again, I in came a track street on of, Yes. Don't have tend it's and move not into rates you that factor that when portfolio don't number, focus number. we as

don't for I have percentage So exact you. on an one that

And your from line next Steve question Evercore. comes from the of Sakwa

case, you roll moving that about do is of Chris, just you that kind feel is bit to something that of forward? to Or you going the customers was XX.X% one was XX% like to XX%, down expiring kind the expect new I roll if lower different? down clarify that Or And bottom? customers? do move When a the thing you just against said of to talked want sure. make earlier that

telling was It numbers actually Tim. out those I it's Steve, from -- there. was

and versus third third effective achieving change, new was quarter were of effective the year. net were in effective The October, XX% October, the last down. compared net quarter to we're was net as rates year were XX% So the XX% that we achieving this rates into year. XX.X% The last XX.X% customers rates got rates same we

we on earlier about that thought year-over-year. months calls, start context. XX.X% quarter. today, narrow That's ago have And fact, throughout as bit start that we was that And in That's we third gapped the to would referring talked those here we to about out be the the would what gap to sit able to were our As the quarter in more. we narrow expectations several in numbers. fourth that, would a it's little gap as actually

it. Got

Okay.

So in November, like bit and gotten maybe it against gets worse XX%? it's sounds December a worse the

early to rates mean worse net certain. ago relative to for couple Yes, we last it's too a tell, are thought but certainly little bit months a of have year effective would I We'll see. than definitively, it's

the Great. acquisition on obviously, And sheet. then I mean, well front. with guys positioned the are balance you just

what acceptable help buildings Just of be an us the or all can board, would buying through return? or And empty think you're rates if like over I rate buildings. cap appropriate realize newly be developed

would of of where high about you the do costs be how yield where and things capital? think how But an against or your like returns stabilized a does given to stocks you need cost buy, trading want are, IRR to that debt kind on just your

Yes.

really question. think there's X I that buckets to answer

our the our low which $XX type of is is about of to million call there kind where stabilized at That's think think cash largely million $XXX looking with measured free in of flow. bucket the yields it, moment. opportunity we're funded We that a in, opportunity mid-Xs. that's I in to targeting

and us to doing those our right returns at we be cost wouldn't worth given think low capital. now of interested activity work, don't I $X of types would of mid-Xs in billion for

upon that be accretive kind of bucket it's that either there's have raising obviously in it's to is bucket is returns relying capital, us bucket that, beyond that of the then or to raising those equity. current -- higher So where we the the can external than And debt that we pursue X if out were kind would environment. not be capital

of of And more are distressed into? follow-up, people there you Okay. as any the it built markets more maybe Is that suburban it be chased urban think just is the and a Or in? markets? kind markets migration quick that there'll

a have sure to where motivation. necessarily motivation. not sure house hard to the we at we expect geographies I'm distress more seller on seller it's least view not predict -- or I'm see the that would

be many, individual that think driver maturing, seller are it's a interest burning I'm other situation sure hedges more factors. to many whether needs. as off, much liquidity that's other not an it geographic to it's and individual it's as I debt unique it's rate drivers,

next your question Wolfe Keegan comes of the line from from Carl And Research.

longer-term I last kind versus you X on kind buckets but your ECRIs. moved that specifically your know how just within in, say, And example, thoughts the have those then on magnitude, curious lot where the [indiscernible] a to of are different we hate customers are thinking I on touched year? customers of the cadence? about for of

Yes.

call? into cadence, would the On through What varying portfolio search, How dynamic walking did portfolio, taking? is inputs whether the a payment the in it you come into that's that the as customer debit? that the Is it it the how form include, you are came cash? which did credit? desktop? you paid is mobile us? store, for Did or and whether overall others, it in to get coming process Is new into lot Is of is the that's you customer you with paying is come existing going the amongst system through

demand see of factors. So that into do a from? forecast the submarket, of to a variety about rerenting depending translates in, vacate, upon coming those individual where in which store, in choose when cube pretty think occupancy increases cube, those dynamic you we then the for there's should that factors, sense we timing that look at both of we When for that you're our that

to year, depend. it be X-month a really X- So could it does be once in range, could that

systems smarter smarter insights. been getting that's more with over last and and machine keep and as providing the learning pretty more of and us evolutionary the So years the couple here

have I we year year markets versus seen for those as think as an markets year. on urban last have it's portfolio, markets in those existing with depend look X more to asking upon and across What's impact changes to going component. less of obviously, the pricing from going price to in in those rate this where fundamental that's performance change between last this new steep that steeper you have year in the terms customers, going

kind So it. we think how about of yes, that's

then And Got occupancy. to gears shifting it.

year? your you the delta versus where curious for the to last of year-over-year occupancy balance of year kind Just expect trend

Yes.

Tim yesterday. XXX think of I October, at as down mentioned, were we XXX the end

going last I likely that the end December. to be number is that between points that XXX basis XXX will from is year So think down to area

from Your the comes next question line Zhang of from JPMorgan. Hong

guess done doing that? words, lack I achieve that And could going been year. to really on better of I touch you've good throughout a you is sustainable initiatives You've how job wondering at personnel this keeping if for expenses what was forward? low

for the Yes. question. Thanks

of top So want to is the efficiency of macro in having there as focus come store teammate most Interestingly, priority customers. a for served. a of the a do our studies, groups, customer our we and does conjoint be surveys the really lot is how question to

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take where So a have you where into desire mate you conversation entire through vestibule the they technology virtually if at of can through and a but store the through renting you a a access your implementing not FaceTime-like and can team process the only question, screen come cube.

and see the we wage I efficiency to benefits. recognizing pressure that So on more it's think on upward side, continue

to likes picked. has Tim as fruit tree think low-hanging in the the I say, been

we're think But kind sure continue expense challenging keen between customer, growth we'll and negative more get the that several will our delivering over that they last expect it way as continue we service focus on do efficiently line of they to possible. to as So and the understanding expect technology we've of on quarters. have kind a making the seen as

Mr. Chris no Marr, questions time. Please proceed. further are there this at

for weeks a at Thank Los sure Angeles will time. Stay safe. you I'm forward look in we to and in Have that continuing dialogue of us see today. few a many you, the joining everybody, great weekend.

conference Ladies and participating. for today. for Thank gentlemen, that you all does conclude our

disconnect. You may all