CubeSmart (CUBE) 1 Mar 242023 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the CubeSmart Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] This call is being recorded on Friday, March 1, 2024. I would now like to turn the conference over to Josh Schutzer, Vice President of Finance. Please go ahead.

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

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

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

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

the non-GAAP addition, found call can remarks In company's the the measures. to www.cubesmart.com. I posted to now website over in supplement quarter on measures fourth financial be Chris. GAAP between at include A reconciliation the non-GAAP will company's and reference turn

metrics in on key fourth both of for Josh. on XXXX Thanks, our remarks. our more his provided XXXX. and and Good color prepared morning, will everybody. quarter provide of the guidance insight our we operating results Tim Last those solid and evening, introduced Martin expectations for

experienced portfolio, a levels. in credit continue challenging customers XXXX, and of customers tight elevated elevated price to level, when have environment. high with accept sensitivity lengths for particularly prepandemic X the quarters to the line operating of remain customer metrics stabilized very but stay enter comparing remain At first the and given competitive as they market we volatility that the have in strong housing new ECRIs remains a they Once and our trends

outperformed cycle the faster of steadier have our continued nature markets demographic remains spot as through portfolio the York to any deceleration last phase the urban strong of Sunbelt New now our market. markets strong as bright performance City our with should The in beta for highest Our of support profile performance. the year our making the portfolio it these markets support has growth lower performance over

the bid-ask a of our and recent The the as spread rates a cost elevated rise has transaction seller bit capital of expectations between market have to continue remains kept and quiet in we expectations.

Our investment-grade and to market. Thanks to additional transact commentary. leverage Tim? rate call for over I the in is sheet debt it exposure as return to Tim material significant excellent no to minimal believe we positions floating which and joining will balance today, opportunities capacity, turn the us shape, attractive maturities, for

FFO fourth of for we received tax as item same-store the per guidance. Same-store Great. year. that growing of Good square morning, X.X% and a minutes jump results We fourth over last for expectations representing for Same-store X.X% NOI largely quarter, average expenses on in $X.XX occupancy the adjusted to fourth real line to share out fourth Driving additional your taking quarter 'XX some tax Chris. provide driven X.X% to basis by quarter into compared growth was compared per foot reductions revenues quarter and year, a reported and Thanks, day quarter, it quick I'll quarter. thanks spend points of with us. the review everyone, then refunds and few last on the XXX dropping by during levels X.X%. were offset estate rents declined realized color the with for year. growing as X.X% significant some the growth last

dividend we During per that the share. our a a also yesterday's On annualized X.X% an up close, increase represents $X.XX X.X% announced dividend quarter, yield. quarterly to in

one growth and million, portfolio, added our On JV front, opened $XX at external development the year-end. us our one bringing added fourth in stores XXX the the to of we XXX the third-party store XX on quarter, stores we stores stores for third-party partially year we and platform acquired managed to for

remains our As Chris mentioned, position balance sheet strong.

for All fixed. of is our revolver, debt, our except

at November as further of opportunities So us growth started years. present leverage less to debt liquidity giving variable significant maturities X.Xx was our of no we and debt outstanding levels of to a capacity We X.X reduced faced EBITDA, weighted maturity our have we finance average 'XX, and themselves. year ample debt the rate future than attractive ended X% and 'XX XXXX. We during until when

our details evening. release of forward, included earnings and our guidance Looking were in related XXXX assumptions last

at will competitive Our of XXXX pool are consider just forecasts delivered the in ground-up if level, years, our a X that 'XX, impact well compete based asset-by-asset stores with property prior year. XXXX impact with as our new same-store stores. of 'XX approach and increased any, by store this Consistent detailed deliveries as supply the on the

is our of in approximately portfolio. will the with same-store Embedded of XX% same-store supply that compete expectations impact new our for 'XX

rate occupancy of rate, market, stores closer then lead norms. year gaps market of to driving in of For and implies revenue the range guidance negative midpoint The from rate seasonality below of range slightly in well and year-over-year year impacted and fall our is range half context, assumes in summer. improvement of the back muted environment mean growing positive and in from to of guidance would would XX% more that revenue levels. XX% housing historical XX% This flip narrowing This through guidance remaining there. The and of an demand the the occupancy high end gaps and parity to the largely persist but seasonality improved albeit power spring year-over-year XXXX. to in spreads in mobility, down This back XX-year at driving XXXX, lows, improves reach causing would the then housing reaching levels. housing that year-over-year revenue lead of peak environment end parity by demand negative down historical off low of continued from another to both slower our current mid-summer year. And both impacted most last another then the and the a from occupancy assumes of our pricing lack in of stores gaps of frozen in throughout marginally year supply the of

growth We've averaging for over our of the some X.X% XXXX, same items expense sets pressuring for in growth in XXXX. range into X but to few up that peers of We expense only biggest X% operating growth our real in expense expense 'XX, Shifting same-store estate over a to there XXXX a introduced That's driver X% in storage here news period. comps On growth us expense for to of same-store are and is expenses. last years, 'XX. a growth an the success had line lot the great controlling absolute growth X.X% pretty tough are and basis, compared taxes.

As 'XX, year expecting refunds the great in difficult Overall, grow tax beat for I a really and quarter's this creates real largely for but single high we're significant by driven some was XXXX. comp mentioned a news digits reductions, taxes again, as guidance estate result. earlier, to this

Property pressure. see will insurance is another to line item continue that

cost and had we insurance year. of each a XX in policy year, on resets annual last increase Our XX% May

continues And X.X that, percent for in another So this beyond our then months we're that first XX-plus again the of year. increase anticipating renewal 'XX.

normal favorable snow very costs. in winter third area that expenses, We of level from in had winter-related a our a primarily costs The more of XXXX. removal from perspective those and pressure assumes comes XXXX guidance

So expenses and removal plus combined expected to estate are or overall, all expenses other at levels. X.X% are, taking to real X%, expected to again, out property taxes, minus costs, inflationary grow insurance snow but grow

levels difficult predict. To Our activity our of acquisition this not open for really impact the XXXX. and us are for year CubeSmart FFO productive Joanna, our for disposition call to guidance up wrap our does in entire of questions. or Thanks execute this the plan any time, speculative activity thanks let's position business a to up, timing team include in about excited some XXXX. the morning. At call again to joining on We're as

first Kassandra Truist The question Fieber from comes Instructions] Securities. [Operator

pretty your assuming $XXX million guidance, activity to XXXX acquisitions $XXX you're So your In was in XXXX. acquisition million. of muted

touched bit on prepared also, remarks. acquisition And market? there this you the in in seeing little your markets a then you're You that Can any on share are specifically? what focused you're

in up the shelf, seemingly here of and recent range downward the from here although sit months range we relates that market a some today, there -- to it that was we the activity little There's of here external bit. as As as on certainly very don't stirring on heard today, rates above we were BOVs saw in growth. was little there we the above range, a sit move whole we've when a lot product in number have visibility brokers our

I was to excitement think of be for That going cooled some there that to seems a have was opportunity. moment. potential the wave there off

that opportunity So we is ready. underwriting we still is do difficult that hands know our our team What to get predict. every We're can on.

have perspective jump be in availability advantage growth position remain for the been start we expect right year, acquisitive been that over to All of past to Our opportunities more they to of external patient us from capital, opportunities to here and take wait X.X we than should and said, a themselves. never present fully a leverage we've better for the years. in

given of And you're how Okay. to And January guidance in XXXX? then strongest demand one in overall compare seeing for trends prospects New your that York the and about markets, provided That's XXXX York what can you talk York I'm New New is in curious helpful. of doing then you February? terms

in would as continues MSA perspective. Jersey were in kind MSA impact historic be to that This extreme us. for new expect we greater for of and as boroughs a you've trends, whole. I'm of York New the in a an February at be so the the certainly And expectations expected a sure individual one each North as this York about in is XXXX, our from the to MSA Thanks think again the of some have of Demand that's than North trends outperform a it going Yes. New question. then boroughs supply result and we portfolio Jersey, our market of and the the pressure from solid Chris. as to the markets broader seasonally of revenue as others, in based of components And consistent January on heard

So for 'XX. market will continue a to be top us in

next at comes from question Citi. Eric The Wolfe

prepared door You they're that remarks showing when customers you of signs strength. in get your in mentioned the

market? to you free what and that terms place how assumed to is are does like month in on getting So What's those curious, those bigger probability discounted coming put or discounts tenants in that average? XX% in I the first when usually versus was they Like place closer in market? off, promotions is long take it of accept

Yes.

of first just customer-specific it lot a if at of the you month's because of if it a -- look think I it's take there's you portfolio, at question, look put obviously, use the kind across free but a there. and

It's upon to length attractive more again, obviously, volatile customer from to in So and the all. think terms in. of And be in very having of specific entirety there's rent be month you tend full quality a Obviously, not they cohort, discounting, size to depend to an that they kicks we that get credit. When customer because going X expect lower over customer. that market population a there's, appeal customer. behavior Internet stay a fits They to the tend an one that month first free. about to when of be or

the between upon you customer. that's the market within way rate may the the cadence sometimes cohorts. those typically, difference two and you X macro months, a the back have that's But first that really all depends first level increases at So get typical months, X to

in That's it. rates, best today, those street highest also just meaning changes correlation at helpful. street then look sort Got the for future the as was leading sort what are have to that And I rates. indicators those things of of do you wondering think you

the about talked housing are in improvement I'm if market. But trying ]. the you You calculate [ expect in your street it they're to how $XX of today, kind where looks don't rates much like

that of So like cross of need in over fall. that to kind a amount the things level up see to you discussed it you to reasonable were improvement get seems

sort you was guidance. trying you're just I to of helps at what understand looking So that that form today

Yes, question very answer. nuanced nuanced and a

pretty what obviously, about, that various it, obviously, we the is unusual XXXX, movement, tepid other the at is about we housing we crossing of puts part demand year. in last it you right? season was to create as We did are, uplift especially getting last So really and of part later again, happened well. think And year what that busy takes So ultimately, to not somewhat year, to back on all. When over, profile typical that right? have a parity as is drivers very talk year, and seasonal a or a rely demand, got relate there into when that this to as relates the but answer, in

continue So going we which, XX, move good. -- start an going to be I to to mobility, so solid. to see next base year of March the high how our about telling look are this health our for quality. for couple continue seems rate -- and metrics we be existing pretty June think in you up And June is that be customer again, the as to of are seasonally XX out. The opportunity mean pretty X really look to play to weeks, we customer consumer

positive So us. a that's for

So play going really, a to 'XX to to it's see going down know through out. going and just to more mid-March to how that starting June lot we're general come is mobility,

Jeff next of of question comes Spector Bank America. from The

ECRI you're It's to responding color the really on Sunbelt program call. Sunbelt was Lizzy speak rate primarily for the Jeff. kind to any touched at your I so Can more customer start trends? you the and more noticing for how on of today. on common themes your your is across then markets, that was also hoping to Florida, existing on of markets, And curious hear move-in lower-performing

Yes.

the markets So any in there than beginning, months markets the the healthy then in markets an Sunbelt that are customer question you've is perspective, certainly Sunbelt, not the to in consumer, the the healthy occupancy markets higher the end more year. From behavior Sunbelt for rest and that, X there base, it different any taking was customer existing volatility we the got -- process the Again, is you've that from saw country. demand if pretty got of is the it than urban. behavior answer is different consistent the and last are across increase rate with what last of just in generally that

bit Florida, difficult. from hurricanes made You that markets markets. than in impact have little a rely of a you on an a have more urban you housing from has West comps do the more benefit continued more bit that

got a impact obviously an in little markets than more more the of supply urban You've Sunbelt markets. of the you do in

I more performance. And why Yorks, think housing that Chicagos, those and expect they drivers a of high-level less reasons et difference cetera, you cycle, are to rely kind because stage you're are the that better seeing going this movement of some in the perform would bit on on the other in demand. just New of

to earlier fall, really in and of spoke how in sit sort curious -- also rate in of was were guys touched Are I into to as as back funnel website on upgrades you but your you conversion well, new making was the And that's and maybe Great. someone's for on you -- this demand. question impacted was year-end how quantify February? bringing able translating customers into the in top into we the that

continue we impact forces. to to of The the place, all particular customers. depending relative against Again, those markets. bouncing in marketing who other market competing conversion rate are trends the that to Obviously, changes modestly difficult that Yes. isolate in upon spend improved it's we're of over those see

the continuous terms and side the intuitive us puts from And so improvements the continue a met. different of and other bit they 'XX easy will want all equation, believe making on where we they customer we're in simple, customer drive experience possible, and seeing on beyond, these as as pressure continue little we be to into that customer that for of and behavior. But the us move meeting as to towards

their needs are X/X want to but X/X our self-service through who perfectly continue we an Our who of another data groups way. in that focus them in them personalized have a and would very going tell customers the with with a teammate in-store storage happy our process help equally, walk is us to model,

do customers at and way one to focus way of not So how that in one-stop the our the we a term. extreme we produce will to try be served that on answer is want all of the either those they because create long capture doing things just think don't kind over right

Capital from BMO comes question next The from Markets. Juan Sanabria

negative benefit that's should if thoughts thoughts offsets on share customers? how of the that to of your an point pricing spread that the your could of kind big offset a recovery that concern views the clearly investors you get lease concern business kind one regard for move-out on with There's But eventual you question spread. be helps point hoping negative term, consistently fairly pressure been and share why move-in, ECRIs Just just from and general new a given the that for on from we I not and could guess, of that how a new and longer isn't here.

start. I much if our think that of we'd is positive. had I rather druthers, mean I'll it part we see be that

adjusting the expect said, you them you would than quarters lower that for housing overall a would of here market think you you that asked is, basis, drivers overall others rates And talked normally about I reality kind have clearly, been us off to little that the we've then to prepandemic. That rates into and pandemic of where levels. prepandemic to they heading asking of think and the compare rate 'XX and about several postpandemic had look think be. we're to a those demand levels question coming that talked to on in levels be and compounded have bit I still is growth are would due 'XX, levels are there

So to I from don't is the there of standpoint know how concern. question a the answer

just a is always little roll who there's -- is It's are it leaving down down. coming typically are today a the than customers rate greater in. Asking versus who platform when comparing the roll bit customers

are of with a And did how spreads? the kind sense end February quarter, to going? give juxtapose for the fourth you Can maybe and are rates move-in that trend, how move-out of December better? the move-in, compared last And year January

about if it they you're the if in October, rates here, the kind -- when the then XX% of points, it's out exit, customers, and average were basis the average so X Yes, And XXX of think about to was around XX%. negative. we months down first the you about quarter for year XX% expanded around new

steady And it's at spreads customers? for new the how all or... that -- or about Is contracted

relatively stayed negative Yes, XX%. it's steady, and about

at The next question Michael comes from UBS. Goldsmith

and same-store New My you markets. on a what just relative the gap question the your revenue the urban the or suburban outstanding rest the the bit of is year? seems, It talk markets like the between is about to York been in clearly in -- more has assumed of guidance. market terms right, through trajectory and guidance little Can the

kind So about like you thinking the exposure how urban gap of markets relative that the I'm have and markets of to you're other similar-ish to? wondering how some positioned is

Yes.

a that customer. our that consistent other markets more less I depend on the previous that with to that year those the some will rely drive macro housing outperform over demand course expectation commentary on think change markets of the is to question,

better But XXXX we and across strength going strength out. region I played the the to would I somewhere weakness portfolio, as some the of bottomed markets will markets through as markets have to out related the urban fourth performing, that continue the it's and go overall, other strong the think think the we vary fourth expect So that throughout also across showed quarter and as markets albeit middle. And how in the 'XX show not some had in greater be to quarter, to XXXX. again, in

or thinking the had and same-store XXXX a benefit was same-store with that XX do and X you that under only entering same-store year? kind drove wondering I appreciate pool, XXXX clear XXXX -- you of This is, there's pool, you been pools. is XXXX follow-up about a as year, but in the that, year, you this for last between the Chris. And expectation I have X my gap the the outperformance your entrants how the asset-by-asset same-store new of had buildup? properties lot are -- What properties

entered to that question So 'XX. your stores 'XX the their what contribution be pool, just continued into Is question? the is is clear, that the

is kind sustain Can continue pool? still same-store And Yes. upside? of they entire like momentum? -- are to there underperforming still Are they kind of they the still

I a better it's a the they same-store mix. performing are than bit overall overall, little pool, but think

put San that So well. added properties that the stores Phoenix, housing chunk Las and if and you biggest more portfolio, bit of were one we the issues are Overall, there. -- think about commentary with markets consistent stores and that performing the Diego earlier, little was past Phoenix Chris' Sunbelt really West for is of a supply The Storage to has in year. the Vegas portfolio, some that have this due the pressure

So contribution are those portfolio positive, still stores the in than in then negligible. average, added positive are overall, X stores but the 'XX from it's was this And a that it to 'XX. year less relative the

impact. really any So they don't have

Carl comes Research. Wolfe next The Keegan question at from

on have little one embedding kind more I Tim, growth would market -- a for how your one curious, of I 'XX, love know just in touched color given to it's marketing of to, Chris market, bit, alluded just but you was but as there. this expense kind are by

How question? we're that approaching it? your Is

-- I for expense Yes. it just marketing least be it's where but your obviously it guidance initial -- in you can your are know at have set guess what just I expectations up. volatile, growth?

bit the it others. it when little expense seen don't. when bit and you've to marketing We our on some we we back -- down on to or in expenses. a we to tend a past, can be We a marketing minus pull spend, certainly little that to see would returns the expenses spend we press guidance, relative be. steadier plus tend of tend type At little that inflationary tend the is assume bit It midpoint great as pedal

create so our that my in expenses But and of bucket quarter-to-quarter. ones preamble nature, more can expenses that and snow. is like from that that mentioned insurance that of overall, not And taxes, marketing inflationary the volatility in I some expectation is

Got it. And another Tim. you, for one

We're curious in of March. removal. snow kind on now Just

kind would what driving be just quarter concerns of rest the the So of here?

are And concerns weighted years it that -- was year, it markets can The December, that there snow a others. we're last bit too. the heavily November virtually are zero than and little more some to and Northeast it snows in

So to of we the It lot like don't a know quarter what for those look in add it fourth of events doesn't 'XX. here are going take to snow up.

comes question Green next Street. Spenser at from The Allaway

back properties Do do currently incur? the a just those Maybe burn sense what percent property abatement sense of a you also have of magnitude shifting within for is that increase taxes a And off? the would tax property the of have of portfolio taxes in so, to if you second. what

stores the percent you I -- that quite... could that Sorry, of of didn't repeat the question. part are just

no currently Yes, problem. a abatement The portfolio percent the is that that of the the tax would within -- like burn portfolio off. of percent

Yes.

have that's we that have really New across we the in stores that but phase, the So in only that place York it portfolio. are some

entirety from the a of you small really think portfolio. percentage overall, So it the it's about as

Yes. Right.

the like years? to the several percentage. over small you -- have magnitude property you next is of -- yes, course, going Of guys and step-up be in guys a -- of taxes then what are do do But sense you

do. We

our impact we the do. offs saw that disclosed we always ICAP as think we sup I in from burn

little but and 'XX continue or -- 'XX that the -- it fourth I trying it then and number $XXX,XXX, to pull a it off number minus I after to for level quarter. think think levels believe, That was here, that. into largely plus will think I'm grow bit I I it

So an impact. has it

the Page for the fourth $XXX,XXX impact sorry, I'm have those was $XXX,XXX -- on not that impact, you it off ICAPs year, of the for was quarter. disclosed And quarter, see in of We historically sup. can XX burning whole it's the

I or Yes, been what get yes. down trying here the for next I guys but coming of the what No, appreciate to of course. year a was color. just have pipe the sense might you underwriting in was X,

question The next comes ISI. at Samir from Evercore Khanal

your your comment I just assess talk in guess, maybe operating little more bit stabilized. as you mentioned have remark, a Chris, guidance opening -- we that here. trends I try around that maybe color believe give on to

you So be in where quarter, abnormal. if to of just context seemed every the recall, volatility XXXX, the

of I the for get All If have that both quarter knowing that May pretty you you from that into the expectation I quarter months think where being full us met here we have previous two those February June normal and up as fine, to obviously had and year. we're confidence that's relatively to was reality. March latter part and and the quarter, seasonal of fourth during into in first materialize, as that 'XX. And to you went on of to lot off expectations disappointing. this gives April, September assumptions you the think then more was back, March of know, question, kind a of of just February. We a nature of another we business, the And to of And and the that kind second seasonal then laid of the perspective. start ends and pretty Tim out trends X our said, where saw last seem how with the certainly where know, was and a we'll answered guidance have obviously here then year, bad. our repeat in are The was matches January disappointing. month really that third we the continue benefit some into spectrum a information, January and June at the the beginning then was going start and quarter a

guess, -- XXXX, I XXX just on back points you you're you on I if occupancy about to ask And thoughts basis it. and go wanted Got to mean below. I your that.

Have year. downward in sort to we occupancy? think year? you on curious as your do of of further there's just So about movement sort off how think this leveled to the here through Or on thoughts occupancy

Yes.

kind of bounce are think our generally today. I where midpoint is around we expectation we

a that said, market didn't us for Tim So season, bit occupancy doesn't more as And experience of expected we get improvement At into end, obviously, year, REIT that whole the both and a we of as then a some again, there. the a of down, into cohort get that Tim to level busy of in said, busy mobility occupancy. But through There market-by-market. trickles conservative occupancy clearly, and the that better going country at think supply in we experience to are to friend. 'XX as later into our the see going is pain bit are materialize. modest of from we a to better the the the just the see continue we, the Supply, an It from balance stronger is there's continues at the midpoint. a end, that year parts rental and little kind season, of come perspective. I then the of customers translates

out, stabilized -- by that until in came a Phoenix, have that COVID. where I occupancy population then in from are And lower for think a North Jersey just that naturally like demand tremendous of you're fits growth got that. And going I market have the again, as hidden time supply. I things the until then is think backfills markets surge a to kind think all probably certainly in supply the that into one there

last it. And one, Got I just it. if Got may. one

increases last Maybe on I touched ECRIs, know I this at I the point. think are magnitude. mean if those today? compare you look to what gave but don't like year them you

Yes.

basically, we again, right, about of average here XXXX last think type some averaging be from 'XX down increases They've on magnitude again, that and kind expectations the go the kind at cadence at we pretty you and COVID. 'XX of we in year, those XX% for of through came kind been is If consistent around as saw midpoint. peak XX% And will our time.

that. we I maybe think extract bit bullish with better we could think, scenario, more would more out again, a in a of little mobility,

Luebchow from next The Eric Fargo. comes Wells question at

environment. M&A the on bit little a touched You

the bid-ask remains spread wide. pretty said You

I last end so about think year. you toward being it the of XX% talked around or

where more that. is kind for on a criteria? to maybe your be you way cap think ranges investment us cost of fit do transactions to which you to about your that update rate So of attractive guess, is, capital And current start I could may given there

so about saw closer And recollection would disconnected. of is bulk maybe into about XX% a we we mark. to Eric, generally it's the I talked probably felt we XX%. We off bit, good. that last narrowing quarter, XX% the the And say like you're -- then were through now XXXX,

or the getting we're the looking range. we're X from at right cap for of capital cost So again, it opportunity, our -- looking speaking, in better something closer. And for from generally we're looking

it criteria looking find a And starts trickle attractive it's trickle starting we're to of our a properties it for when more that so to a be couple returns of fit at up. sense and point. opportunities on us, open We're what that make this ready those we're to are but to for

then just And that. appreciate one me. for I more Okay.

you been I it As consider of a potentially lot one you guess, you allocation, remains capital a have at would other know of your see lot point acquisition is I historically. of part like about opportunities, think capital forms leverage repurchasing plan today, a shares, room bring forms you, haven't capital trickle -- return to if what But your other at of where don't higher return. for point and given leverage a big obviously, which of

Great question. doubt. No

tool the of and long And we if on is -- delever we is big to think be grow redevelopments period something continue we have potentially that the objective market to been that and to there and with some that enough, some want As enough to share a as consider, is for in disconnected in alternative, markets of we that to valuations, penciled had the they about expand to shares and opportunities in is continue also certainly there, course, and we out. But and delever our have #X value point, on we of opportunities time versus that be some double is developments would our we and would focus just delever the internal it, quality. at disconnect disconnect point, tend our then if If down that is repurchases. assets consider. private to aren't we at those the if is

JPMorgan. Mike from Next Mueller question at comes

those ones discussion, a want that move-in move-in quick on new just year-over-year year. using clarification. correct? that -- here. guidance rate talking a rates basis getting during same Two last the the you're compared I to we're rates just parity, then talked from to you're fall, about sure When One, terminology. make new when Is you in about hopefully the

That's correct.

being the Okay. guess, And I when, it you moderate? side, talked as any You then to on will do about second, growth visibility insurance have expense XX%.

stays whatever I so? the XX% date in the this notable kind year. or But of for a you you after it next was in do foreseeable future? think do growth year outsized off Or you the drop the see terms mid-May of or think expectation hit a

Yes. Mike, it's Chris.

be that -- had that awesome. crystal I think wish I ball. I would That

so estate that nature. have I maybe is liabilities achieving about mother the perspective. think in are where some we're maybe real period perspective. bit had the variables, we exit casualty a space, from into little and of or the property and they're we've events the our less And impacted a but right? sector, insurance a kind their capital haven't competition, up and how entry investment another many some from particularly mother matching just returns I insurers think have are impacted One of reinsurers. And there commercial nature is One that from then is concern certainly return assets the

of your on that going hear of the what things moderating one bit renewal, next what's we of is a on couple time honestly, little think years But both that over based I of that's with and maybe those a control. is dependent our outside things the other kind is those really May, upon trend So optimistic feasible. in of we're ours then

it. Got

you you when out. find find So out

Okay. That's helpful.

from next KeyBanc. Thomas Todd And question the comes at

'XX, back, season. wondering, long it's I'm follow you Chris, look And volatile pricing in employing, really if you try maybe to any again. competitor up demand, it sense strategies been a I'll as customer whether that, retrospect. any light earnings of this can about related like pricing, was on discussed much Sorry you there's just were have guess, why Samir's wanted that trends whether question. operating that first I shed you're during to, on that you

Yes.

I think when we you look of factors. a bunch think back, whole have I

kind them. most really You of of named

I weather. we -- had think we a had

instances they poor, those So in rattled of of in you had deferral off some just perhaps I I following. had some as customers month some still a demand degree, months. oddly for sort months up those showed think, maybe where And who the you those to that need, in the of had then

I single-family in think just the existing situation think low really that you where historical I we And activity. odd an that had homes of saw resale was impact.

other relocate moving in saw impacts how you on given housing apartment pricing was to side think the willing terms there. of I from an folks perspective,

I think into that. came play on certainly degree competitor pricing to some

to storage ultimately You right? some a impact little the had crisis really other of the Not in degree, from do weird mobility. but macro things that perspective, bit customer, terms they banking sure perhaps or geopolitical a events,

doing very it It was my of hard item. from year. this to was lot years, a XX one certainly, just a experience So to unusual for anecdotal, pinpoint

Okay.

have out I pricing, either guess, predictable little you competitor just a become even or of more? that little more, seen bit terms In bit a

some it's Yes, where become Again, some a the it's predictable. we compete I'm more week-by-week markets have opposite markets quite the not more in then sure I bit of with is other we constructive stores little true. and that could say with, become any that

So out it continues environment a competitive very interesting to be there.

a acquired Northern investments, like you're And Jersey a Okay. some it in doesn't and Connecticut. lot, New but recent of activity sound then seeing terms you in couple in

extent I'm to think between and about preference up a Sunbelt forward. you investments how curious the deploying as moving markets just a capital you ahead about look and there's little whether loosens environment urban transaction you the not or As the bit, the think

top markets. have versus no short -- our We across -- Todd, term top is preference on all of the of focus view, a target energy the pretty all of the some really XX other to wide of XX. in There's the

to people could we really we present the you're where the wish them looking You're reality We is, opportunities for that bring exactly present don't. evaluating be. market themselves. and you to that want themselves, opportunities But

and open gamut occupied the opportunities type low want on long not out There's X our MSAs these across a pretty exclusion complementary interested as really to to very to of wide the on target the the make markets focus are there versus still so say, assets, they basis, that of the strategy. of at high-quality for spectrum opportunities us lease-up stabilized risk-adjusted we're sense could to you across enough in We're interested I others. that

any the that sort depending million around needle doesn't think much, range the that that guidance the actually that's year? is acquisitions, million million maybe acquisition million does Tim, $XXX mentioned you the guidance guidance -- I Okay. not to $XXX on assumption $XXX guess, activity in yields. really does of assumption? Or the to for a is you move does just reasonable But include that unannounced $XXX include

Yes.

that to feels here is an it's It's in opportunities we It's we bit like to not a much we you going opportunities. zero it a mentioned, we've transact one pretty of we're found disclosed. It relationship-driven, one underwrite Our for a year try Those impact into seller a feel million XXXX. today. past. you sit the It as were getting that -- million. couple little going platform, when be certainty. transacted to third-party with you with of not described. does constructive $XXX of like our to a $XXX other that that's that a opportunities. the be can FFO to we've more visibility feels But up Again, indication more does include feel management not we we to guidance of think add than what that like where amount what frankly, just as But would it's give

marketed say are completely they're but So opportunities, won't not I -- insider opportunities. those

things would to -- not moving, $XXX we happens, FFO, One this lease portfolios point, find million rates find in who that. opportunities are contracting. have the looks sense guess that that aren't today you would from return way I'm that So X see other, been Perhaps some you that liquidity perspective. And myself group bit make would there if FFO opportunities has market for of in a like the they're to opportunity. patiently there would compelling think have that in I of we I up of I the could at my is that $XXX looking a pent-up And for year is that million, from the they property would drag do cap further. that I have that we've best say, a transact. likely been And we that at think be incremental waiting in in, if some add side could we a seen is on that the from recognition our if found transaction they but a be short term we to bit liquidity, a some point, to to table up that number if small some or mean, gap think is levels we in 'XX. a -- seller market contracts our going X, find And that need little here so sellers that with sitting that

you. Thank

have closing further back We comments. turn will questions. the no I call over for

call. Thank you all for participating in our

you, quarter assume, travels. safe I And you we couple Have of results to of see with weekend. We forward a look a our some week months. in great sharing next will and first

and and disconnect Ladies concludes today. this ask gentlemen, lines. your that for We call please you for participating, you conference we thank your