CubeSmart (CUBE) 1 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. My name is John, and I'll be your conference operator today. At this time, I would like to welcome everyone to the CubeSmart Third Quarter 2024 Earnings Call. [Operator Instructions]

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

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

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

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

and will remarks materially that certain forward-looking factors earnings the regarding cause strategy uncertainties statements. from differ include statements involve and actual risks, The other forward-looking to may that company's results these

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

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

I to Chris. call the will turn now over

It continue solid environment. the was Good quarter as third we Thank Josh. in a you, to morning. maximizing on market focus a opportunities competitive

metrics our credit was they and continue with store entering elevated line our enter of line Once norms. in stay customers portfolio, Overall, the to performance range with of quarter. expectations lengths historical have in

continue beta urban markets Our outperform to Sunbelt. the lower

with to been lucky hurricanes. grateful both thankful very and have are We extraordinarily

any avoided major our teammates Our and are safe, stores damage.

rentals offset being in down in by facing City year-over-year up the MSA. the led market. year-over-year X.X%, demand down Jersey XX.X% in New boroughs, balance of the rentals by the rentals the York tougher in New the York this Jersey MSA the significantly solid comps, increase our profile of key portfolio New MSA, demonstrating This impact up our New outperformed portfolio, overall continued Northern York In our was segment were overall North supply despite weighed in and urban Our being by portfolio.

same-store growth. story revenue similar A in

the second at down by and highest major X.X%, our Northern Bronx led followed our X.X%, by markets, the X.X%. With Brooklyn at our a lagging at again, MSA York growth by New bit New generating within negative weighed Jersey

basis had and top-performing major as as Northern Columbia, year-over-year it quarter. growth of revenue of the improvement from solid revenue XXX X.X% headwinds was District from the MSA sequential DMV, Virginia, the growth Our both market same-store rebounds point new supply. Maryland, second a as well The

Weaker performing the markets continuing are Arizona, in pandemic, while of also and new experience markets gains that significant the in impact supply. experiencing Florida and experienced there to

discuss of will will to our remain our of straight Tim XXXX and XXX year adding in remarks, eighth provide choice. third-party portfolio. his we more As manager more a color or be stores annually

disciplined remain for prepared will decisions in decisively that our thesis. opportunities and We fit investment capital with conviction to are our and move allocation

Martin to I'll his comments. turn and you, Thank over Tim now it for

to join time on Good Thanks us taking as always call. Chris. everyone. today's Thanks, for morning,

for was quarter, third CubeSmart. very as Chris solid mentioned, The

but As to range with a our of face with we our in guidance hit the range, line pricing environment challenging for rental business new midpoint as we competitive slower remains of volumes, expectations. was continue store customers performance overall

marketing on down year, line operating last property basis revenues but Same-store to portfolio, XX.X%. declined on biggest over last XXX for grew by with expenses item. driver continued our quarter about same-store year, of pressure was expense to during insurance, driven points X.X% occupancy growth average the compared the Same-store X.X% the

environment, funnel share we our between marketing same-store per midpoint demand $X.XX X.X% attempted quarter, in we reported adjusted NOI growth negative and marketing for FFO of third growth, rate, top revenue current in the guidance pushed overall our X.X% so range. we spend. negative And evaluate the the as was with continually of as on of the strategy interplay at this in yields combined lever and growth the promotions expense to X.X% competitive We quarter drive which

from From the an quarter the a still external as air. growth two constructive the or is become pursuing. here quarter have been timing to are to that But under closing we're we've perspective, perspective. number actively see is more we a we other momentum contract transactions stores and little The the last as those discussing beginning much we have other certainty in of so, late acquire up started for our of transactions in in fourth year to activity and acquisition

position on, our great quarter third-party a pursue the growth management line under end. has stores We share. touched credit XXX proceeds of added Chris equity sheet leverage, balance the we during front, XX the at-the-market under $XX.X to capacity no of full another position, to during strong We us the program quarter. management bringing an price quarter as average and to us sales quarter had No opportunities. per changes low the exposure of productive stores platform, notable our $XX.XX rate to million raised our for at On external floating in of

the the full quarter changes track our year year perspective, in of third any to we as last and with the the expectations, remainder was a guidance quarter. ranges within continues provided From line really not

results, range our the Given expectations. per share third full while FFO midpoint we quarter year of our maintaining narrowed

this Thanks John, call again questions. morning. on call open point, the don't for At this why we joining the up some us for

from line of question first comes America. Bank of [Operator Instructions] the Spector Jeffrey Our from

and expecting I state 'XX head called finish stabilization, exact always you there's what on 'XX, today is. We've on out the is guess, debate First like on finishing I it improvement. healthy 'XX? state a Chris, into year for and nice as some into conditions leasing very, peak feel of I into thoughts do maybe think some even we other season. forward the calls, saying as Chris. 'XX mean you question the the heard

Yes.

in I relatively beta think moment. the high environment at a we're

We to signs. quarter see have starting you green like some weeks a during wonder where positive we and And your where the you little went. are some demand have then you all some honestly, some that bit scratch shoots weeks feel see the head and

And conviction big an the way think difficult Tuesday. makes we've So a a We've Federal got think event lot tenure it from got other. Reserve. in volatile or rates I about just the that next interest obviously, a and think going one you question answer with that of if We've on had, terms to it very perspective. I just incredibly

environment week by week. taking operate So it I where we're will say I'm of an continuing to sort in

can That's in rate And discuss move-out then you Okay. move-in, spread fair. the quarter?

quarter, Yes. In churn was XX.X%. that the negative gap

Our next Michael question Goldsmith UBS. with of comes from the line

your dissect kind a environment. opening opportunities remarks about to competitive Chris, maximizing in I'd like of

starting marketing -- slower think maximizing opportunities, positioned how lever rate the of heading just you looks So and how like how about about little environment? in into kind you stepped And versus advertising you're bit. season? can But talk that it -- advertising of investing kind you in the this a lever on about be looking marketing price to

you. Thank

the year, X marketing the for grown to the look months at on against put think X you for first grew of things investment, in first about about of perspective, months year, last if year I spend the our year, a our XX%. just And a X-month this it's that basis, in So backdrop, XX%.

foot the kind our the rate harder different a quarters bit So has in which chosen growth off little there gas, the investment first trend a terms been same been a the of about take we or little but X year-to-year on overall the push have basis has of months. bit in for to the

But more to to back a your is, week week. question, to high-level of again, that my

quality that willing think highest are pay repeat everybody quality industry, customers our Those and period time, test accepts rate sensitive looking over premium a the given rinse, longer, that data, who look customers that stay is our can long in lather, we to are increases where of fact also are do We week-to-week. less portfolio rates, we the then I to in opportunities, the where get. get a we are to the at the who have highest

It something at mix. on we that to folks making team is team some the science and very this side. have figure out prices as we're certainly decisions that's data the every the best market day looking are obviously, challenging competitive the in And and that, on marketing exactly where adjusting

Felt the good up stores investment the traffic web in marketing about the We sales quarter. all about on quarter. saw XX% during

out, just long So we to the as you investment again, price return, term. going satisfied marketing get best balance term result, what that said, both relative relative the to be near to think to ECRIs trying is to and with it's

the on just of to a start second then Has what a trying as And seeing I little through? to of appreciate statement you the stepped my fade trying environment. color, your the of half opening was I'm the you're sense up? follow-up, manage it any Are competition to bit? get Chris. competitive

feel Yes. of it markets think to market. about how it is by that fair really market that Again, competitive I is around market But attracting and I there are folks We're bit pricing a -- some obviously it's thinking a like is think local customer. say stabilization business. new you in

as a of Coast side that's on it to relates we easy of customers. new just have pricing have where new flip markets, an to is the is you bit Florida little and pick overhang impact West significant Then creating the certainly of to that supply,

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

in prior below you the there's deterioration you're if or comments or how the changes you're kind discounting, in question. seeing on and the free what Where within seen upfront. stay whether terms kind the customer versus not? curious Just you month have in depending a it's quality of Or behavior piggybacking they if any of what customer, on one differences rate? you street discount on them -- offer who on well Just long of getting of

Yes.

That in end that is data to who, reasons take that of customer offer for time. to example, your is just lower for tends variety tell quality one lowest to a $X Our lengths probability to a of moves from perspective. a free issues customer and us would extreme to over the that customer higher stay attracted of or lead moves in for credit it for

who ends sense, sort future to end, Vice rate is customer to to up not longer much statistically be and tends common your one who the sensitive price less on staying front increases. sensitive being also of versa,

trying think that that a discount it offer attract do a balance is how inventory relative So really about store the have store. to and you between level at that you you're on to to that do or local

type of sort want a a some to the discount, have vacancy there, to offering teaser, you to you may whatever specific unit in significant recognize just statistically of that a stay or extent you So and perhaps it, be to quality high in open or the that accept in that try get low, call a and to long-term but that customer or churn. customer being that odds willing you're

think I you're us way every data the will plays tell day. it making market the out, that's decisions and local at a of our those kind level So are

comment you the bit, question a unchanged. Great. point? NOI Is on or any of the And ranges left a same-store specifically at XX or just level guidance, on same-store the a this but within FFO out little year comfort done revenue then tightened with months there

beginning still that with I and have fall did have noted, now. our share adjust quarter I bit We much interestingly year. the you a no guidance at per the left and the ranges than range year narrow more array the the feel haven't those you than the Well by outcomes as all guidance of overall, tightening other when unchanged wide all little started FFO answer, you a you from ranges, potential to ago. of the board, XX/XXth to We across we're from a default, think of within the the that year beginning until on, plays mean, balance pretty the tend really of comfort ranges. of of those like respected changed as year the we you tracking

of we in some but And it there much commentary some Chris' have with we right much line we year. more optimistic, the really think now you're has much have changed. was get in is And are X left weeks So bit feels the in not weeks back, appropriate. our little quarter out ranges a it like because months The we very it giving that expectations. point, nothing on

on Tim's at on for And piggyback back, Juan, the do to comments. the head, my talked for and Chris, Cube were bit and to the is have of of we like the industry this year, you look focus and little negative or would about else that the end, just the expectations how if play beginning we which, just at low there a the and kind of being everybody X.XX, When you both be was year drivers off top result. I worse, think to around said out

get me is a the and market saw as be -- find not anything again, we housing of business to ways here that kind results. that of what there drivers macro to of think the is self-storage those we And would still is. levels the the maximize X, than interesting was performing expectations. and lower were really housing low in this to presented low last take we're to opportunity helpful, we great What's November on from for whole, a spite year a fact, other resilience goes thought of kind worse factors. didn't just market those just the of in And year. get I end of original to those long-term the fact to would those focused at in no that the and be and we or whatever what some yet, And is And ends. other able were -- we And it in some sit we worse that Cube to than actually industry advantage XXXX it obviously,

self-storage a just So for plug self-serving. there,

Okay.

the recap the end ending end more then? low kind commentary, and to mid of it's like the it's high the off the seems table, Just

specific of or a the the we're year will providing we at outcomes with, that some balance just year those for to the ranges. It's other. point range expected get that we're in between the within Again, of Yes. be comfortable one and hard

Yes.

last I contracted we to we the that started of and think specifically, the a is from Chris perspectives the range number year referring quarter. with, range low that end of

next with from Street. comes question Glimcher Our Spenser Green

just markets You additional mentioned more on become press you maybe of provide Can you're color in the here constructive. opportunities release the particularly that and types transaction the seeing? some

different couple from of its perspectives. a Yes,

are our We increasingly but markets of attractive individual quality quality opportunity, the also have within the quality that of attractive from opportunities seen an the assets, and to of and a strategy. that's opportunity set us

gap, a constructive ago today a some to the process a we have it be seen been much to is least spread had start bid-ask where a transact. you there to in be X where from willing a We want between when continuation of where compression as and X, more quarters where X, environment seems at reasonable to a buyer seller

start And two more so closer get much environment. feels constructive like certainly and those a it as things to closer together,

That feel being for said, versus constructive could XX months. nothing more anything

external on at we're to opportunities. relative, growth our moment, see all a can to sheet for environment be certainly that it's guess I able but and to So balance those constructive moving here, the much direction put work and into energized in we're at focus more a least to us you

think provide Okay. XX% I in just were if you participants of it's about range. can there's But or That's talking spread helpful. there, speak like what like you're in spread. industry you of And to bid-ask saying the guys. that for been I today's a bid-ask range compression -- won't environment you're know curious I a quantify a in bit able that little terms seeing are you maybe

we our stores, have get get it's different, actively finish obviously hard mentioned release, handful to Each opportunities line is chance across two generalization. were a we're we a a the I you working as previously that other saw to Such of say. on in opportunity able contract. to under here,

attractive where think, that is, all and compelling do sharper lot investment you I more being our set to get because when zero lot of CubeSmart there's ones a the component quality opportunity that is bid-ask the fits higher only matter get a -- for spread, The strategy. pencils and something

next of from Tricarico line with comes Our the question Daniel Scotiabank.

unchanged. this but that year, evolving if in see a comments ECRI the how your a being to maybe and The that rates housing to market the just program? improve? even start you to testament talk of can few movement worse business, an you'd so, resiliency is guidance where And Chris, answers environment that ago,

the Thanks Yes. for question.

to customer base customer be can adult. it's least very base testament think are well, we the I at the that everyone, what in happening a such And our everyone So at a an that case time. is our that's of diverse fact resilient regardless has factors macro use that world

of piece So that's I it. the think first

possessions specific of has not upon we not are simply somebody to We're period We're reliant one generate need growth. place to excellent a reliant who that treasured job their for upon product. solution for discovered an our factor time. It's a

I of it's is time it than about our always, period first reality when they enter that most the is portfolio. longer thinks think times, the customer

obviously, experiencing it's for last And a helpful base so, XX then I rate combination a resilience here So that that that. important. the and customers new of is environment also customer think existing been in we've months or for

continue see stay stay COVID. and We those pretty customer base, increases having customer of rate sticky continuing the And after accepting in consistent elongated a lengths through to who's thereafter. portfolio to a

long-term So think I those storage such do what special outperformer. that factors and a makes I a of think combination macro, two is it's

Good. it was bit, gap? but and dollars know curious -- there's the in a takes puts but And XX and a year-over-year QX XX-- down up just being October I Promotional where just and I was move-in little follow-up. think there, rate QX.

the average. I'm kind was was weeks X that was of around of it's percent on QX -- QX more XX, in October October XX been XX range. last that X.X. The sorry, The October -- like Yes. but right

more is little new that markets pricing of Part to bit customers. seeing So we've seen certain that helpful contract. a

had of last in season, year around hold little down rates -- trying were starting October year until and the mid-October to on did a busy not to have last where year, about a longer we The strategy hand we rate a that last other bit past is of bring we mid-October.

part more part So the pricing. it it is of a is comp, constructive little some of markets

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

Eric. shrunk It's its want to broader saw comments I decline the here to Nick area. York just I a know it portfolio. New with outperformance Joseph go and sequential back the your versus on

So going comps your on expectations weigh market year? curious if for could tougher that get forward? it next to And

year, last revenue plus same-store plus X% Yes. QX When growth, New minus same-store points. minus you a the about growth, last think QX basis couple basis of year, of couple revenue MSA, York X% or points. of of or

as whole So the comps. a MSA has tough

So from when X% it I overall the X%. same-store were and you New that about you perspective, our rentals think with think contrast were down that rentals about York MSA portfolio up about

a So long-term certainly, Queens. Still Brooklyn, North supply a in helpful in perspective, with then bit little bit Bronx and an Jersey pulling is our super health, results because the dealing Supply of down fabulous. And going forward. from impact there. the MSA

will impact begin again, Island properties next out City, that some some to you to Long hopefully, I of -- in Queens, think when will in lessen begin look in impact lessen. the year, supply our particularly into certainly supply North Jersey

So I think you there have puts and York. New in takes

markets, as down I just some that parts a market the fantastic or to that can see of all an -- self-storage do I not the of But portfolio. Phoenix the deceleration, comment can't see is up beta. that, But beta it's -- we unlike so you to or acceleration to through other a just where higher going on parts in of going cycle. today it's low comment there, but absolutely big you're or We're market, swings going the see

solar how property And helpful. late income charges of versus credits? and administrative then of that the insurance million That's other is $XX and of income, much

there's no there. insurance Well, in

the on predominantly it's fee side. So

Okay.

solar -- through any there Are does there? Okay. run

it. credits not item. the through there. big It line than of quarter that does to were the the a run third. more solar not It -- impactful It's and runs were they component It's through growth in year-over-year second the

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

the I just guidance. questions around up on wanted to the follow

$X.XX. range maintained you fourth quarter at a forecast, a little the wider same-store is So the FFO range guidance narrowed the FFO but you to $X.XX bit,

So range with left. months just $X.XX X

you a had range. I $X.XX generally think

Is there an that Or else is end an week-to-week just seeing year? than specific at that from we be you're that the uncertainty levels, through higher make of it's FFO standpoint is volatility something thinking and about should the been? our real as the that indication we way high

it's of more question, I getting your -- was It it's of to -- sense. tends end answers latter. Obviously, and that feel to think, question. is a and Nothing a appropriately range high outcomes. More to set Todd. -- latter. the the potential we have that to the the mixed the latter former the to the I low up you Great get your end with make X captures in the middle somewhere just

nothing of a as have and potential because a trying a provide out read guidance ATM range year. the with other denominator bit disconnect bit, range into little the that between should We outcomes than and utilizing here of the the little we us guidance quarterly you close to a the captures also annual volatility the but the that

Okay.

if but year-over-year where what sorry comment you on occupancy, like looks basis? a can it, stands October on missed that And that and I

yesterday, XXX the year. XX.X% October, At end Yes. behind in basis points the same-store of pool, last

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

could progressed hoping also the rates, what you XQ X as kind of bit down average a street much what little of the about well on how was for quarter in as was average I increases kind those year-over-year just they are quarter talk happening were as with and metrics? ECRI the

down question answered had question. rate Yes. for October, for couple of That weeks We X%, from X.X%. Thank the of was come the you last I down XX quarter. into down previously. about the average the street

the has changed kind really on increase those that teens average are quite or who bit in ECRIs from the is again, the average the one. to wide. that continues increase The of to a customers portfolio average. high not receiving the cadence across be range that's It percentage of terms But In here.

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

how out just 'XX? supply in year, about think shaping about of impact next look? how portfolio, on talk we And might as you your that Can that's the

the the portfolio is in or I'll by Yes. you how has happened. little of and a that let new help maybe 'XX that on supply Tim give here impacted Josh percentages cadence being

next we we'll and that in when new we same-store guidance pool to February. again, a to provide As year, update look impact it percentage out as provide relates

here sit you I today come As percentage feel and I the the last of has across look to do as couple down going is it years. over that country, like

would a don't supply a in so. significant coming and of So Maryland, we we've terms trying see of like D.C., where would significant to some basis, helpful constructive, We amount macro I additional a and you a more the amount think shape markets that, like would think, pain, is see we there Washington, narrative market to supply benefit taken for of On on, so be Virginia. XXXX. continue will the don't see D.C.,

would and And a have have will are of then then amount West to be which through as on we reasonable I the some of as mentioned, deliveries see, that XXXX. go seen, going this we Florida you Coast expect on markets year weighed

But you for the know Tim Josh, if percentages I or know it. don't

in prior the And of again, in years. opened stores that decreased X -- its peak -- on steadily of in supply stores about at up stores. that and It's time, new stores for was to. And that think impacted number our impacted. since happy XX% Yes, peaked we're the percentage we that out of has our we the focused by that were XXXX our it at the year

your X-year standpoint. time up opens a of a from which a year, pricing impact has that's we that the with in X.X of rolling So impact the store, biggest competitive because kind is that store period believe,

to In we Chris come guidance we'll XXXX, complete XX%. [ our So we that XXXX steadily number XXXX as that touched on, that has number in update as provide number in (sic) February. ] the is XXXX XX% for And processes when down down. ground-up

Okay. a way. And can ask different I maybe that in

if have sense look that you new similar like? at can that a we out the in a kind construction look what to how does thinking, kind get low start So trying a of If go? few likely be of that years, might activity, to of look

think overall in mean you decline. level the of our I I markets, Yes. core starts to and again, see -- continue

You of competitive projects start. on certainly have like it's new they folks market business. we're customers, capital, as you always, lending micro when capital who rate in availability to environment at cost look a the side, would But have for the

and make So -- would I'm and guess, that of a spite sides capital able here both XX expect XX still rental sense equation, to rate and I next going there the the But are overall, in we of the sense that. to to have out cost locations that of through lot of pencil sites over need make over to sites next be to months. work

minds, falling impacting of would In is you but in trend our line. then out 'XX, then looking to And what in in all be about our think we're that added 'XX. at those new deliveries 'XX deliveries stores be would

we that up you're particular, few when in less in opened many to into impact when it's of of on of less. In one overall, which so So out that like are or assets stores, tended be and are our York get assets Chris because Queens, a to stores more sure when our it our touched something that questions assets of our clumped one Bronx impact the than the but ago, Brooklyn together. New some markets competitive boroughs of -- not XXXX, of are our feels you're that going with in saw incremental about deliveries saying the thinking you XXXX deliveries

are a we moving there feel go. headwind certainly, of we lot supply things as like a around. is less of So But becoming and less

XXXX, there a on going that's the implies time something impact in of eventually That's because almost reason else sector, that zero of because the period and experienced world of be? fundamentals, it fabulous could interesting what And hypothetical because of zero. an question operating on that saw we was wrong. the lot the the were to zero were in go Your that things where XXXX from industry there's zero but kind it was question in through was wanted other to you never

almost ultimately, it think places growth the the like because in whether to to next question the I'm that growth in the sorry, from growing, rather i.e., get that where world. But wanted in ago asked the for same-store demand. movement way, that in portfolio. that's question. while demand, go other works in And of I mirrors perspective. By about country, was around never ideal context in before income. And it be you supply a where insurance and down took the you that's would I You'd a -- a approximated level just Joseph to be demand before wishful the real in would would I growth level of back that for thinking the is tenant sector a see of -- population little way prompt clarification, Nick see supply to some course, that included

about And item included so the same-store not insurance income income. there. On when is in for other not in our same-store a up portfolio, line results, show think other total consolidated you tenant basis, insurance just does tenant

sure John, I my to in question. prompt you can wasn't for sorry, next that misleading answer want to I So make question. I'm the

question, And we with have JPMorgan. Mike for next our Mueller

one. quick a Just

properties announced, you that are going occupied expected acquisitions can and about in well how two the yields? the the you On talk

Sure. Yes.

the country, the interestingly, X.X very stores of were separate almost that same. Each are sides ago. these about different opportunities interestingly were X, on some of there are of the years coincidentally So built transactions two and statistics but

platform, as come type they Each occupancy they'll range when they the on bring stabilized in XX%, XX% each our we portfolio. be in the So they're them of them, coming occupancy. -- of completely not into to

them and combined in things So tenant stabilized. like fully with us each there's economically getting opportunities, of value insurance lease-up more one leg of some bringing those into

we're rate a around stabilization right those assets in at of of at they're cap kind on, fully looking or each opportunities, X each year of a plus But those So cap not X% coming for stabilized. minus.

a it's little lower bit that. So than

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

some seeing last about pipeline? deals as larger executed answered of you of see you've well? talk asset single the you're the you kind questions that of Or market, the but your deals know several on over portfolio maybe it what year? in there about more could acquisition the you that I funnel in Is are kind

over Yes. the is It question. all Thanks for the place. really

awful today what for quarters think here building inventory that need of for point. I liquidity or that is either think is folks about want I what at been some we've up an talking consistent do is there's lot is several

And of even extent bit think opportunities when I up up, little to open the to medium-sized to larger. small- portfolios that so floodgates open to ranging variety the I a see that think you're asset opportunity something potentially they single to going a from

little I large are difficult. bit think transactions portfolio more a

potential buyers than perhaps was that XXXX, of many or going certainly to debt availability of That don't I think capital shorter debt be to us and assets us larger just in it shorter table it the to like cost have that positions do we side line side others in on are the you're to small because be opportunities access be buying is would line great on see buyers and think of the to portfolios. I of a folks large and just some spot table. But a given the and portfolios. of the of nice have potential

self-storage think there pockets I just it's have the their associated board as with don't liquidity point. horizons capital are some need to they at find forever time that investments across and of

little just in on raise the equity And bit enough. of a quarter. piggyback I Fair mean, that, did to you

the thinking you opportunities tapping think market from like if as be potential equity? thinking for just there the leverage helpful. So growth comments perspective, that see any up, external funding Just a would to pick you about how are issue maybe to about you

Certainly.

we've support part external So sheet for us and balance create of that to our -- that risk is low has to also time a for capacity that a strategy. has growth very hard long worked

for with our so gives the that within we And of full debt-to-EBITDA term bullet. at third amount rating, use to credit to down debt than extent be us metrics quarter at opportunities capacity use today. And the a we to where that could leverage we Xx, it find sit higher that we tremendous target a long comfortably turn credit

do to down that same roughly hypothetically, so -- the the work fully $X that to then levered that we means we would that, we back and it If we that, be bring translate a in credit to capacity billion were of to you be have today. could work create do for So worth and that we're position acquire us. in metrics in would assets position still

repeatedly years. do to You've XX us that seen past XX the here over

we makes see an when given we of fund an us math more that, match that right that sense cost sense time, is, set capacity So the At front standpoint. opportunity opportunity we're an of component that the where happy equity to in like to makes is, same love have we we where our maintain the in equation from capital now if and equity capacity. to that use continue than can of

be to on to different go the in moment and depending of environment that's find the the at in directions, fortunate a there. opportunity feel well set ourselves really we we So lot positioned out

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

is Metro the mentioned particularly You New York strong.

lease-up that past last and compares curious on of the development quarter, new X the to I'm XX% occupancy compares how stores expectations So how to it trends? delivered that your

the of would occupancy say, or they've Yes. performing, come us line the Thanks the of stores one our in with on for those way for the question. surprises side No other. I Both on portfolio. as expectations either into those

is for follow-up a uses there. appetite capital? versus maybe potential And of development new What starts other your

and Yes. to We where continuing obviously in sense. interested grow the are portfolio appropriate it makes where

risk of where attractive a on taking small sites number it's and in for challenging reward. macro today shared, markets the I that find interested As that basis, development in we're to

find opportunities. of yes, to with a well, those economically. project basis, to are neighborhoods We per a and continue that sense we just makes capita. micro certainly been pursue do storage But would is a believe square combination challenging sites special It those site there for on that where low us has foot

further questions would no to closing at session. like for the are there As Chris at Marr time. I over call turn to back our remarks. the This concludes queue this Q&A

you. Thank Okay.

think, traded York Exchange New anniversary Stock we XXth as recently a I the recognized as So our in mentioned release, I company.

So I a ago, company journey and decades our deeply would through teammates and ago commitment from us like to with and commitment with to customer who thank special everyone their to their appreciate who has today today thank been us X that our were involved are to you years XX with service. over

your shout it that safe weekend. wrap great and everybody out, for participation and we'll with So and have up a thank

concludes This participation. Thank you call. your for today's conference

may Have disconnect. You a now pleasant day, everyone.