Public Storage (PSA) 1 May 242024 Q1 Earnings call transcript

Greeting, and welcome to Public Storage First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Ryan Burke, Vice President of Investor Relations and Strategic Partnerships. Thank you.

You may begin.

Rob. you, Thank Hello, everyone. for us First XXXX joining Quarter our Call. for Earnings you Thank Tom Joe with here Boyle. Russell I'm and

subsequent Before we forward-looking only want These risks during meaning begin, and we the forward-looking become update, X, reconciliation of this matters as we to that is of call supplement and earnings forward-looking to of May call discussed statements GAAP certain provide uncertainties. are may non-GAAP events. A certain securities All our constitute release. obligation federal XXXX, measures revise statements of untrue subject statements the that the to today, within laws. remind no economic assume you or included speak statements we in because this to financial on

report, of publicstorage.com. audio and questions. supplemental You you SEC ask reports this X call at website can limit replay find We our do initially on that an press to conference our yourself release,

after have Of free queue. questions course, to you in those if X, back feel additional jump

it I'll that, to turn With over Joe.

and Ryan, for through Tom I and thank all you, we'll Q&A. it Thank today. up updated you recent performance open for will our views. joining and Then walk us industry you

performance with line was quarter our expectations. first Our in

customer the anticipated, challenging. As we environment remains new move-in

rates; moderating expect supply, improving peak include by across customer including positive the However, the competitive we are will stay volume; behavior, encouraged demand our industry-wide business, improved the to leasing lower longer-than-normal trends as raise move-out enter in-place strong delinquency and rates we which of ability continue. customer season; quarter, through sequentially our move-in we of waning length occupancy trend a new development and

San in markets important markets, are These we few more momentum continued. XXXX. in by Baltimore Washington, from markets anticipate performance portfolio Detroit our we last month-over-month for including including trends on to Francisco, they quarter's are over additionally, were will and mentioned call, were New next all York, trends Seattle. this to added First, revenue bottoming-to-improving Philadelphia, growth the X We in and normalize contrast particularly decelerating accelerating And and Chicago, markets, be quarters. encouraged Minneapolis. reasons: when reacceleration as XXXX stark certain list in As That across record see XXXX has D.C., we

track second, put back as financial improving company-wide they And in us half on in for our this the performance guidance. embedded year of

are on into and XX% the our assets non-same-store of our we team Additionally, remain these comprises ground. With by drive activity our season, very properties first XXXX. which busy help performance properties quarter, are we of footage. pool Overall, strong square XX% on seeing a nearly high-growth overall what growth. is customer during and XXX will focused NOI remainder of encouraged as growth portfolio for the The approach the approaching engine capturing we new the XXXX

With call that, to to turn I'll detail. Tom the over provide additional

Thanks, representing first performance. financial to of quarter of decline reported We quarter first FFO XXXX. Joe. to the a Shifting X.X% compared core $X.XX

properties marketing X.X% declined modest occupancy operating by a activity. net total, move-in to quarter driven 'XX. by move-in Move-in modest tax in adjusting closing to winter quarter. Positive the points. rent were X.X% Looking declines. compared same-store promotional revenue end net increases of quarter, for sale the stabilized of increased occupancy volumes at of growth, down portfolio, our and in quarter. same-store the quarter That XX% activity property gap cost to for rates, spend the the led out operations driven was expenses, up same-store drive at X.X% by to the down were of XX first first basis in pool On offset the income largely In

the strong in as growth very in our Joe by nonsame-store supplemented pool, stabilized same-store performance highlighted. Our pool was

in confidence at for 'XX. assets nonsame-store year core with outlook a have that on pool our par growth the and to outsized into a guidance year We quarter, in we our is XXXX. future, come with the segue the $XX.XX midpoint With which from XX% reaffirmed to this occupancy FFO the for

was we quarterly discussed as the with with quarter second line our our second anticipate the internal into in we of expectations. first call, quarter performance in The improvement And last financial and deceleration on half.

with of half. market cost capital and come, that Outlook of which environment to acquisitions Public for activity be $XXX intact for in subdued $XXX record to development level million given there's a when second and remains with year-to-date. allocation of pent-up year Storage likely we're optimistic limited eager occur. The remains capital of volatile anticipated, transaction transaction will a for participate million volumes acquisitions We're deliveries the a that does

and our in capital remains note, strong. XX-year note maturities position of floating refinanced We our and liquidity a with combination a Finally, a euro a April XXXX rate XX-year reopening. X-year

strong Our preferred the position heading us through in very leverage debt year. of puts net X.Xx a to and EBITDA

turn it back the Rob that, up to I'll So for open call session. Q&A a with to

question [Operator ISI. first Instructions] Our Evercore Samir Khanal with comes from

being what your move-in talked trends of general sort of in talk seeing expectations. around trends you're you're how has April expectations? Joe, sort Maybe played And line out April, in guess, on about XQ with guess, I seeing I you versus April? kind of

the have would of overall saw expected seen through we've put Tom I first our been as sequential to demand, where I and is Yes, move-in the that. the April context the way by again, in improvement matching pleased same We've expectations activity. It's that quarter, out. outlined, likely top-of-funnel we year Samir. Sure, expected play

a pointed of in I comments. opening the say, that my would to So number no surprises. And reacceleration in validation I markets of a

Tom down April, year-over-year May maybe, basis XX Similar data occupancy month something increase as of points. trends, move-in in Joe again I'll on XX here. as Joe in were Samir, rents, rents move that a the it's Existing April, points season. couple just April those the well. on And customers down we Joe quite Maybe to provide month remarks. starting Yes. mentioned, are as we leasing his of highlighted, as performing in to peak Move-outs into highlighted the finished into well,

May, And we're peak to eager July June of April. year. into get the a pretty the here, obviously, consistent leasing season So and

I here Got rates you the transaction that confidence start in it. the see And March kind guess with know subdued or to half? in of spiking over market, or of you I possibly it transaction second mentioned just the and guess to shifting gives was opportunities April. what I you'll sort

a seller obviously, fluctuation to in as interest be and having a Yes, But up down, XXXX. of Samir, in motivations has market. seen that been the active that, transact said last over motivations to in cetera. sometime few there's with rates, bring The quarters to been we've dialogue likely with that's the we've range of going a with owners number et likely volatility will those

relative they're Fed gauge the to indicating may through think year, be interest coming now discussion. cetera. timing change I the rates precise based more et on trying be of between and The not in may what may to or end

But some whether a on are an a an level of will the one individually asset in to there require portfolio. that of number situations market, or owner of spectrum, end to bring

some percolate. anticipate still do we to beginning activity So

our giving been couple not Tom relative that able but there's As having of may be are likely us to quiet conversations likely pending for quarters, amount of confidence to it's pretty outlook owners activity to activity of acquisition been capture, with changing that that the some we've thus trading XXXX mentioned, a capture. number a we're we the

Our with Keegan Research. next Carl from question is Wolfe

changed just has your curious market all at Maybe guidance, this initial commentary that the your in first, embedded have for and expectations a guidance if months in your ago. housing you few currently since

Tom. is this Keegan, Sure. Yes.

the wouldn't any a of peak little that we Joe I as outlook here. of and And over in around through way X/X the really the February quarter. obviously season just We not had into XX the days outlook assumptions that probably providing first mentioned commentary edit So surprisingly, any that the provided heading ago. leasing of

played very quarter to similar our out expectations. first The

And we where housing I very interest of housing moved, specifically well. place the the outcomes are robust range I think as well. not as sit have to here think ranges that to we that's a as in the be market. intact anticipating And today the rates market, And right any based on much there of

that momentum it's of of a this number a factor one different can a i.e. that, at strong. customer as just certainly, cohort and time higher but view demand to provide continues of of demand, level quite again, And is year one, particularly our renters reminder, top-of-funnel be

by question alludes going feel very busy So then customer. more that that's pleased season. business that subdued a the moment, at type factors demand housing leasing to we're a we've still the And your that to going market got coming the that, from good are with of drive we as into activity and also

what in question. NAREIT is I in picture right is just Got it focused other we take weakness broader take out be storage, positive persist? like guys given to to environment? then can tone. shifting go I'm maybe you will I'm where just it. the it In more words, for optimistic like out gears, or meetings it handful a figure what to trying going here, big about would think what feels And just everyone our weeks trying upcoming on to of in guess If a figure

preface I'll meetings then. NAREIT some Keegan, Sure.

a elements So pleased and I positive NAREIT would at us I that X think give would discussing maybe, be to we be highlight, would tone.

not that is back reaccelerating, collection markets more adding of to going markets As the are about list moving of bottoms XX we commentary, around One markets right? these the country, occurring we're of portfolio. that them, markets to reacceleration, think of and Joe's one-stop many in are a a that

to a in of of more markets and us more as the clearly. whole, that outlook the list gives confidence the and adding so And performance more terms portfolio

half questions necessarily I more be activity second but allocation, sellers, what add. next more anything next over discussing Joe, to Good. transactions we more you'd busier I'd for self-storage And second to time think is maybe just up transactions as here XX a for period we more highlight, dialogue that more if set in dialogue to of XX days, have the year, the were with we'll No? know The don't not of days. thing, the the start capital dialogue, XX around over would the I some dialogue, traditionally there's underwriting

Citibank. comes Our with Eric Wolfe next from question

answer. Maybe follow-up just last your on a

Or of a clarification sequential normal a you're revenue that up year-over-year about normal I goes to think increasing growth as You revenue but would expect in kind -- growth your your you accelerating on which does of mean mean that. just does probably markets, number seeing due patterns. seeing those wanted occupancy that mean you seasonal revenue, seasonal your you're growth patterns, markets? in that just given month-over-month in that markets I talked is mentioned that those in reacceleration

what good to Yes. we're Eric, Very that. question, by clarify meaning

we're is revenue to improvement specifically, So speaking what in month-over-month year-over-year growth.

pick a of That in the -- about in March, an growing February, think it's of market, it's the So month be growing reaccelerating you market. if X% month X.X%. would

because absolute So seasonal revenue on or higher but not that, a like an basis thing occupancy things higher of actual year-over-year or growth improvement. going

it's continues that many contextually, to mentioned waning the markets. in We part And many, of play supply. opportunity through

an of factor where going decrease. environment Again, we're most the continues markets reacceleration in that supply So into the also, with relative also customers to we new part, in. coming competition to into this vast our drive amount demand the continue little see of portfolio. more the too to we're many starting majority see to additive to in that's the an for That's opportunity an markets very as factor

question a Got had it. then That's And on activity. the just helpful. sales I

your on impact the should order was what for look curious you quarter. just at about in increase determine talked you rents sales why activity. to But move-in criteria the You that

is especially So just month, March, versus this about. if at October did the last sales demand the given why or decide recent that look you're increase positive other to some you indicators of talking we

a question, That's good Eric. Yes.

a time inventory run consistently of end we beginning different March, had that over like And And can month the felt The periods. move. we of primary ran we time. reason year, we've some in So we is of well. and February sales -- ran last one tail we these of number as

year, as the and the advertising like. we with sales this we'll what like drive good pairing and so we we'll here, there. different that tactics promotional during good to saw the -- use dissimilar to through activity not season the tactics, customer traction We activity, And use tend to year. try promotional last of sale points different and likely to traction see We about, continue activity, year did the talked year, winter the

Jeff is Spector Our next America. question with Bank of from

your bit Great. that that more, Joe, about can like driving you're In new the into view little that talked do trends, tie where from move-ins markets comments did accelerating the seeing that remain what's you and challenging. I about you a these the that talk you say, that guess,

those to together? trying tie just X I'm So

start on a to Jeff, up. sequentially, part But we're of the Yes, year-over-year second seeing challenging maybe Yes, basis. with a question. trend the good

So into we hope as month-by-month as even through build the we've we go our month and to into about. year, continue further the talked that to see April, of grows confidence months

So powerful that's X component.

early dramatic many high the not the to saw rate the starting to that peaks that markets pandemic increases markets the the reacceleration typically reset of side, demand on Thematically, were and to overall where relative see we're increases flyers haven't era, so through they this pandemic. the more had were of the and we

Florida, that, instance. flip the on So talk side about of for not hearing us you're

into them has that bucket. So I to a we'd reaccelerating add before Florida ways got go think

market level we've see improvement, across market, see portfolio particularly and to that to weren't as markets out we got that a reacceleration But listed but dominant the seeing flyers more level starting we're as more we're more speak. to we've -- where see those seeing high on consistent starting by we're and active performance, that

So more to there's come.

we're the markets. abundance supply many reaccelerating plays to not dealing just as likely And again, year as new list confident out, as As to an I well. with talked to, of also with markets add we've we're mentioned, these of of this so

My [Technical now. couple follow-up Difficulty] their revised numbers you've of then times so a

Can you out you second. sorry, Sorry, for I'm cut a out. cut you repeat?

different year. a at saying expecting times of forecast? a year, they've for to more and and XXXX the you provide can point? follow-up, supply. now where something My or is your that that then this next updated is this Like into on decrease same subscribed guess, than Joe, but I this a let's I think little for bit you say, supply year, couple are seeing on I higher year we was last Yardi,

And many track of if what are then year-by-year back, both projects, on can precisely, reality I be and into you how likely the the think I get difficult production development step mean then to Jeff, basis. -- nationally, to a way is that activity. Yes, I appreciate Yardi attempts of more those put complete more actually,

where now the we own for X of our seen So have consistent supply we've been competitive very in down. years the development last factor to X the activity taper

XXXX. tapering It's down in

of timing development opinion the And year. if basis. pointing very doing you're a we're would of if been headwinds, we actually doing of have I eased a an amount of amount say and type market think as a on basis, I of So bit a commanding all. to complication the not see on at has amount the delays, this we they're day-to-day different market What some national uptick has

of to the of about very Tom that. relative to a, that, next to And And individual then amount deliveries, which markets headwinds going layer by that cetera, been demand, we the going year et I've and virtue capital of developer Again, consistent you cost after. well you're think year facing. continue the downdraft in talking as basis the an as we've are on more into seeing any in is on been there's and certain unpredictability than a

if looking an right starting to years to any anywhere frankly at market now. We're get fresh that just could given process through from development you're X in entitlement take X

into out and combat XXXX really to from puts So an a there's easy way not and that just standpoint, you that about calendar think XXXX that.

factors into accurate factors is And just to others. to pretty continue we're far for the that mentioned. activity more tied all than confident lens So that risk our increase development the I

Markets. from Todd with Our KeyBanc is next Capital Thomas question

year in was occupancy later the move-in the the remain shifted XX following discussed? the quarter's threshold to guidance, and affirmed, or back wondering, it to around go I'm the basis about mix overall. little Tom, you like cross you a has which still in summer line performance to April down and quarter bit that points to the you in sounds this and are rents I wanted anticipating relatively the just X

which to range that on assumptions to I'd months commentary that the call Todd. as intact that X anticipate, of the you Yes, the underlie are it No, the you'd as we relates point next as And all there. February certain had of have we as date. important encouraged move more to be We've that to been directions like metrics. about talk And we'll by going as to heading things those on performance year. ranges we're through the to and

high-single Okay. like And would you the but would than you on that, down move-in scenario if that an And following there little around in or bit a closing up sensitivity double rents if for model up guidance continues is digits a entirely. like? remain improve to weaker outcome then there direction? in occupancy What which digits, look sort that anticipated look of gap so, what purposes, was the end that and

There's range that I a definitely and outcomes Sure. make revenue there's can mean, you modeling. assumptions of -- the on

I occupancy think have up better same worse you would have the if end up you places spot, end But what anticipated. performance. you're in you highlighting is, could the performance if same but in you rate Absolutely. otherwise

Okay. And just then. question last

One your uptick normalization length of sort of And expectation vacates vacate days. sounded it some that and there in slight was like around in that peers tenant's of the a there'd continued be saw activity. an

quarter see you more I'm bit normalize to of Your And the just if stay potential was activity last versus and do in expect vacate a forward? lower to wondering, activity you year. for continue? going that trends length the vacate Or

parts So Todd. I that to couple think of there's question, a

sitting in seen length concerned quick think several stays, pre-pandemic length the to here is really of of been length stays stay at sticky over how we're trend-wise. there'd I in stays length return pleasantly were we've a and here longer been one or years to of XXXX, the last around when what still and surprised normal the we've "pre-pandemic" levels. talking compared calls first we has of pretty now on about sitting maybe XXXX that be we were And

of certainly those peaks. But and XXXX XXXX we're off

there it ran using length factors "normalization". positive leads storage they of longer because things be length in longer of And their that talked has of stay are length out these think to likely been less that can to about of durable. All home, as of We've so are a a the some have stays. led space But housing I to stay. turnover relates customers

by length still the And the so piece, and in stays customer we're today. encouraged the seeing that off portfolio behavior while remain we we're of

So the it part. first be may

are is, is and part midpoint move-out case in how activity. thinking I we second activity The year-over-year activity, basically think, about move-out move-out the flat for

So we're anticipating in a spike midpoint not that case.

better. then And the just not plus or being stress validate maybe that consumers, with very cetera, patterns, our to in a Payment standpoint new strong undue pre-pandemic through back health are takes on through not levels, patterns, us even a level coming macro customer economy whole. customer still minus from shape. any they're elevated We're seeing very the good component environment trends zone. a and XX% of continue that's is a third delinquency to of i.e., customers play in employment of the We're any as et stress seeing

So we very with ability base. customer existing our level of about confident and continue pleased to see stability that be our to

is question Our Fargo. from Wells with next Eric Luebchow

today. time the Appreciate

I to little growth expenses wanted bit. on saw in property Just taxes. slightly elevated touch a same-store

being I about think to X%. you guided up had that

How the coming about year kind unique think the any year of kind throughout about those the this expenses up think leasing of spring property also throughout should taxes given seasonality there then of up? to dynamics maybe with year we how significantly. is trend marketing and in So

question. great a that's Yes,

year our highlighted, was the as above operating quarter So expense you for full outlook.

operating trends we are so And expense will improve. that overall anticipating

the elaborate others. you've drivers a a that, of so of couple on hit I'll on and of And couple

plus minus still The property for be X% property are or first anticipating tax, tax one, year-over-year growth the year. we to

reassessments onetime first were quarter the year earlier this year The that did was have kind of in some that related.

higher quarter, topic, quarter, little fourth with both On was marketing you bit marketing the first at spend anticipate seasonally, in a marketing it and spend pretty depending look the also a if through on absolute an basis customer consistent as another on moderate activity which similarly, year, the little is obviously, we'd the driver. a that's year-over-year we basis, demand like, to bit move but on the but

the quarters. the had customer the That our clear that others. And we've digitally made expense. to obviously, X/X X over in customer we've But around show a of and utility of property. a before environment the myriad more that some the to also to that's there us well. also of I would around payroll as move rooftops, grow, expense of first that lower we power now of ever of is and has in and through utilize One renting our and but benefits we're are investments will the base. in solar that our up our us, technology as interaction going investments we been quarter, and and customers see lowering they then year, roles centralization continues move be capital And factors on one heading for coming to the very which that opportunities number add as making We continue specialization through for XXXX next we'll our through couple

for you're costs, -- Great. risks a for development higher construction And the right of now, entitlement, Appreciate some things longer just expense. lead higher times it. like a follow-up, seeing mentioned you of on interest

really like type may the NOI years, bogey Anything can change which you're conditions, is your returns? you X get intensity, have today, where So gives supply to you're of markets X% yield confidence what -- lot the in why pulling you developing kind to be historic your to do specific competitive PSA the get you those I in any your of A of think was out leaning underwriting. can the call an it competitors within back. But X you seems now. to outlook

clearly a the rate. view of hasn't of some hurdle multiyear spoken to. of even changed mean out Yes. I It that take pressure we've points we that

submarket relative a be find risk. another that the burdened that That's gives to data land to with get competitive any and if have thing hurdle, opportunity we that can assets of that standpoint, level knowledge confidence amount very we the see factor the to to will, to continue from we submarket the good we undue us higher. So not in of sites, not

really that that, more could your To relative our hurdle expectations a changed play to on yes, haven't might point, that So risk definitely any we're things evaluating and/or basis. there's what relative convey of out the market-by-market to the cost, achievements, still scale cetera, continue timing, we're underwriting, finding that very many sites to confident to we're et but good grow in rent markets into level adding to and many, our go that nationally.

is those So advantageous advantage. to are to very working hurdles interested those maybe have talked that about. further into another potentially accelerating of we development some and team delivery I different hard question, sites relative might uncover your We're opportunities. land processes point entitlement competitive that more Frankly, we to a that more be seeing

in quite well, So one of by environment platform we many those. our continue this and one factors to played actually advantage take

Our Goldsmith next from with UBS. question Michael is

bouncing turning, Given the the bottom in reaccelerate, markets mean in of to to up? starting also this ECRIs and pick does what started could see some to off that market you've that start

Yes, mean momentum consistently you as certainly. think I about customer rent about talked we we've in how market, a see increases. existing

increase factors well, customer or and and demand that rate as the we to One into that we rate increase, how markets and previous a couple of around higher continue of tenant a speaking to thinking a existing a piece the should percolating see cost Absolutely. behavior. we've moving frequency our about, models so. will customer think questions replace performance, And around magnitude in certainly of higher maybe our be in I receive those been encouraged customer feed activity is second by of

customer you generate incremental -- market process you sale have -- Does a type sale does trying that around is length-of-stay acquired how of profile Or value the get demographic customer higher that seem demand? it be my that's customer And the -- a there a look is would is second different the help to for generate determine it customer, that does lifetime of I'm if to cost did, trying acquisition take at that through should this for that that does there guessing customer. question does I'm customer share? customer?

different more, say stores. and tactics different the and customers a drawing little I'd pricing, the advertising Michael. Yes, our like bit lead promotion across to Board, mixes will to of

try we throughout looking pull different the so levers to maximize to ultimately. And year, those NOI

So associated with advertising expense revenue it. less the

so those that we're And outcome. to maximize toggling levers, trying

a will advertising draw so tactics and of instance, you look and And around customer. it and some more to use we'll different overall optimize as the to at promotion lifetime try for customers pricing value sale, that

Our from comes question next Green with Spenser Street Allaway Advisors.

be you the commercial to just on has year? in backdrop. health was continues the that about But tenant. specifically given changed, the just at economic Health Consumer wondering I consumer? how appetite comment Can business topical the And last the if or all, of

good, of we're user customer. are different there one light any in a pull But way, very factors concern. a higher any broad I mentioned, There's characterize seeing customer say very we're types, again, as very property would that or I an no points of than that elevated level lower stress type commercial I industries, in particularly, be are that specific of to of into some wouldn't, some certain Spenser. configuration stress range fashion, Yes, or service-oriented, or still other of But consistent product-oriented, that are nothing a headwinds that some stress, elevated storage, obviously level may any level seeing locations. from we've at seen another. certain indicates actually, use there's

factors the from business economy to seeing overall. demand we're coming users good, be good quite continues still actually As

to other top-of-the where being front, either are across a if -- demand push curious advertisement funnel marketing that you trying the comparable are particular greater fairly dollars or seeing guys like particular more? regions on you're on then entice focus markets the to And just where spend Okay. regions spent sorry, might or occupancy you or other

how All rates we advertising. combination that or question we're question. are markets use X typically that activity. what also form advertising and Michael's is local top-of-funnel of something it's benefit supporting getting really a the locally either return to either more traffic a would at from is related conversion Yes, much utilized to both to that but being demand And pricing, a level can promotion, on good properties in support Spenser, spend pricing nationally advertising a combination to ad where we're And follow-up we demand. of good managing on a in top-of-funnel or maybe do incremental drive of local promotion

pretty it widely. So varies

Scotiabank. next question comes with from Our Nick Yulico

Tricarico Nick. Daniel It's on for

a up earlier to in some your Following using. questions commentary, on you're Tom, I the ECRIs to relation today now pricing talked you've harp increasingly of and latter elevated strategy the being on cost and combination about this. replace, know the to in sensitivity of discounted sorry price

do So you or how theory, be magnitude is cost Or my there improve offset the question again? it? revenue about the so which I think in the thinking about can rate and replace velocity growth to move-in needs roll-down for effect reaccelerate to another that and should is is, way

a embedded there. There's in lot

I think based the that you I clearly into would you pretty cost the move-in rates. on go look elements some to of see as our replace say, at is first cost and thing, replace, to can all move-out

individual the spend may around them may be all be are a what unit will related advertising managed it and promotional unit vacant, the to and be different think the level. associated at with that's the how unit, what of Some long we activity

little will so said, well, consistent picture, rate And highlighted year. with the overall big contribution increases from things you we've And we can think year element how base. say, existing what to higher. pretty that another last there's I customer is be one of this I'd that is you I of maybe to the that a well, be And tenant mix add the which bit highlighted, just think if cost replace

year higher had customers earlier increase success above a a in prior So meaningful new to and our of on their of program. beyond year. customers Those tenancy last tend frequency and get in to of moving this number that's the ECRI we contributing year in performance

contribution one. is year, And a this Cost look an the to multitude be so consistent. important at relatively we components of there's I as there. overall think we But different year, will certainly replace think

Is balance? better the less demand general and the convoluted of you business, homemover customer would for like the the bucket XX% give of how internal be Could picture? longer-term and XX% of or you from maybe share job business could a follow-up. your another Maybe us great. segments any then the a you to current understanding color share XX% the data and demand Any cohort then

sure. Yes,

pretty contribution that typical last And home was are that year move of sale more anticipate because and way was bucketed related is year. to customers demand year X-X a XX%, to in I coming we've the similar down this XX% an percent of So the year. that contribution existing to from about us overall move-ins last about

that they're Customers either or and call contribution. make larger the So a relatively a base. XX% renters, renters, tend tenant single-family percentage, are moving between to multifamily up of modest XX%, it,

consistently that got of tenants out elevated and as That's to as home. run well will be interesting customers that's is more you consistently it spoke group levels like call And beyond been at I'd space then then of go that been we've rest. a cases that, post-XXXX, you've other. pre-pandemic another the XX%, host and use have that commercial up that's likely a as XX%. There's whole make of And outpunching

And obviously, activity stores. to we move-in good, activity encouraged we've mentioned, see And by our Joe so as that been at continue year-to-date.

next Markets. Juan BMO Our with Sanabria Capital from comes question

getting there Canada? monetize potentially may involved that the there? one family I their remind front, volume can any that for in know accretion you has or us stake? another of about of reason on that assumed or from how you And assets thinking kind the acquisition family question, then Or baked Just prohibit subset family much to there, Hughes guidance as some the are for how a from looking into is presumably -- does guys the highlighted you be is acquisition time the guidance?

Sure. Yes.

this again, to into of to acquisitions, not the go we into we've itself. from can volume today. XXXX to the to Obviously, on their $XXX the that call million. likely we're to Juan, that earlier family what at Canada a around it pegged it's market, perception got, platform we sit in to ways I get the and Hughes impede ownership The good market ability does as your our acquisition of that in that point to guidance range in think, sellers, question, and year, be point kind here motivations But relative some to point more back ended. we've So with different the commentary, see of going

So a continue range there are look no investments party to of that either conflicts on either at to in side market. for

out, constraints no our to play may So no are commentary with the that, part. on future relative what but there

associated down, just in then where you to couple think, are reduce And now from about Great. are to X targets guys, how hit in us up going? you and ago cost end give I to I a further question of years And FTEs, or where FTEs a back, prior think years you or a has your you on labor in industry terms sense costs? abilities quarter kind store your workforce utilization of a you FTEs now guess can Day, levels. where in is of Investor maybe of ultimately maybe cutting per changed you which the could just payroll

our Yes, I own can speak to certainly that in platform.

that tied minus to goals or years overall of and of hours optimize one tied we achieved X.X support. more played continued of and million with rolled a using have model, type out We've actually a customers again, that is pleased pointed then saw years but ago, there's opportunity very tools customer we which many in plus out to. so platform. X has we're for activity, of through demand the PS forward, comes or Day that labor digital about that What couple particularly going That the So we today Investor the in from to a we tools now achieve. comes presentation with our supported only move-in property, the app not the our the to to tied even last from, that digital its to out that, were our in operating improvement that day-to-day

the So property that's hours, for very off customer that labor as direct efficient well. burden of account the management takes

time and the customer a end spectrum terms consistency So efficiency only of of it's our from a in standpoint. win-win savings not but on

and to look reduction going tools give of We continue with and FTA at to tools very optimization different amount that continued us clarity that hours. and in robust likely the we're trajectory see digital

a in than I that has very done. the think way different industry doing we're

that our to performance benchmark others. You metrics can can some you at look

far So what transact that and of now is Tom our of channel industry excess level us achieving. what level directly. not that the with That's accelerated and of customers customers only But from that already of mentioned interaction performance about X/X with digitally. we're getting

So things on a to lot front. good that that we're tackle continuing of

to bolt-on to different at of that of as and more, continue have, With or amount hours, again, to look not maintain customer but continuing ways data opportunities down the we optimize drive we only increase importantly, levels. labor satisfaction

things there continuing So in lot confident we're and a invest we're about that on. the trajectory to good very of

Stanley. question is Ronald from Our next Morgan with Kamdem

on X is Just One just ones. quick California. Southern

If just sort of thoughts, still going how as it's and provide of ground? the that to starting of you're your markets. updated prospect one trending could the of just fundamentals reaccelerate you What's best-performing is on sort forward

that's Yes, a great question.

California market continues as as be San well for Angeles Los So to Southern both a us, strong Diego.

and those activity, impacted through of a to and in markets the some by that couple have confidence activity emergency During year. impacted we storm the the continue financial months. state customer performance we markets of rest those the strong But see for heading restrictions quarter, were of quarter's

on work supply. questions. markets to activity we very, Again, most find et very one though, a nationally through again competitive have the to It's that the new the land either a at moment, cetera. little bolt sites it's the Ron, in. Uniquely, made other comment, development of just and market And in processes, difficult entitlement we most

here levels still activity. So we our And seeing are very Tom's and portfolio some consistent uniquely opportunities expand point, to right Southern California. finding interesting we're to in good of

as spend just at to you up of years as breakout being makes inflation one spend of number fair the marketing X in level marketing my then going a it's second click it cost talk between can per sense? percentage question. a Is say more And highest that just was marketing And just the that one. then Great. about follow-up revenue on the done versus if

Yes.

of a questions, components So couple there.

returns and quarter do revenue inventory we to rent, quarter third good the to higher to demand that. in get percentage where quarter, quarters marketing about think revenue. we in and then little the percents spend we of a more as first fourth as a typically second have seasonally And bit we and So down we tend see of quarters supporting those come see

providing under were, with about think as we XXXX, some that of look some stores. level them at you the had quarter, what a the consistent probably pretty in quarters comfortable range we yes, marketing As it touch of back was a but XXXX, we're the support maybe

managed up on couple of an occupancy would levels from quarters next year before the a the inventory around fourth again of to that's dynamically lower we I revenue As the of it like quarter But quarter. absolute the in the support fourth did likely and levels I trends in coming supporting last at mentioned higher demand question, to anticipate percentage that's previous in local decline business. experienced

next Burrows Caitlin Our with is Sachs. from question Goldman

you just had subsequent Maybe acquisitions. looks $XX.X the end, to million It quarter on like in acquisitions.

type they how wondering came talk deals? properties Were just about? seller? X about What of these So you if separate could

Individual small or Caitlin, Yes. sellers, opportunities. deal-by-deal

a of we see that there's were actively. range very types different As seller dialogue typically, in

a deals earlier, have as were, mentioned to these tell individual whole again, would either the individual under that into growing we've types, different owners, markets different with whether contract or et owners. you, closed just in conversations owners, we that certainly of again, that I owner family well or cetera. got assets one-offs, continue interested that So owners, we're I fit certain smaller but range scale, institutional very

Got it.

one looks flattened bit. maybe on move-in, just it like it's move-out then And a the spread, Okay.

move-in the trough I expectation spread you that have where we've given are and and rates the do of point, a going So forward? on whether this view guess, at rates move-out hit

quarter. widening third Yes. before We seasonally quarters would anticipate, in narrow second out and Caitlin, in spread fourth the that, that does the again

a to was standpoint from to what speaking dissimilar not advertising. seasonal I trend So related to

Bin question with Kim from Securities. Ki comes next Truist Our

I April I'm not it trends? give an rate missed update move-in did on if not, sure you but or So

I did, Ki Bin.

been pattern, better that has rents, Okay. normal I'll seasonal just what to consider or a When the look transcript. changes in you year-to-date worse? back does go the how would in at you compare sequential

basis, as we anticipating I'd than better We'll next pretty on X we're here update last continue And through move the we'd the say so. peak likely is through leasing touch that been to what consistent, which on year-over-year or anticipate. a year, it's that you months season. obviously,

Property have $XXX Okay. to program X? year. just sense on trying for Or I level But mean a might of better go that's down for to time? to you wind the Tomorrow you longer your million it. of CapEx, that have next is keep get there a it And certain supposed does a to

we statement and to No, the the or quarter on first Probably make just X. cash flow cash to the X. that of it's go into payments. payments next of as But up program so our year continue wrap go to some will the going final ultimately, will

from Okusanya Deutsche with comes next Our Bank. question Tayo

Yes.

of we're your of towards kind XX of we're sort in throughout like now a How X Could Like Just rates the improving and was January, embedded guidance going given negative we XX trends kind you quarter. bit some that kind kind markets. of basis. some like do street talk your and around of that's of heading little negative a in improving of year-over-year more forward? a specifically February, comments March, around on

Okay.

we just So and and individually right? whole not of One the were X to question. and accelerating time to at host accelerated call is rents, February, there's by we handful X But parts there sitting or those markets, the of that that highlighted were we that, as markets things markets are accelerating the driven a kind we previous that. markets a think moving of in on about X added

group definitely So improving of seeing that across trends markets. we're

XX% were sequentially or call, rates highlighted bit next that it's than I just and drive in that, April think declines XX% I where where rents volume. we code. the Obviously, on lowering had around right little in had of think And about periods January, the year-over-year finished better to time February quarter of move-in your down and sort move-in February we're there's of rates level. question a same time periods we that ZIP the move-in as was

that's rents we're we've those in discussed at now. likely activity our trough point as of trends, it's what which part as through you're some anticipate noted, the are you'd I see because where of And really it we're first So is year point year consistent, the And as to the relates been the at the now raising relatively rents. we to changing of when outlook.

helpful. versus then what kind That's also for And are of been we've seeing in consistent they ECRI quarters? increases, recent

consistent in pretty of terms trends. Yes,

of added exception around I newer last tenants what program, With highlighted more move-in year. earlier the to strong volumes that the given

is from question Mueller JPMorgan. next Our with Mike

off is traffic-oriented? just is the dominated a was rates? kind cities. Is But that here. what of longer call less just Or seems list that are the seeing you it markets out rattled move-in where in drag of as you the talking to it momentum improvement to the And that supply? by that, momentum bigger flagged? Sorry it some like Is attributes you're more the follow-up of better Because you're about? it

Mike. Sure,

think of I number a factors. there's

listed You rattle better demand barriers as a a higher trends, market of those really activity. of move-out stronger of move-in But spoke off handful in a unique different. markets. some supply little to different trends, meaning series a to supply, bit lack We each markets. component contributing better are on is entry highlight I'd Certainly, those rent It's also to some it. of of plays Joe a certain are market. that to of drivers Each that them markets,

last for a of you winner put last likely really take years still for has performer been Florida, normalize, a instance, longer couple the over little years but a to strong over to earlier, is of. into markets 'XX difficult off 'XX would Joe I growth really all, them And have that come comps the strong don't of didn't same, so of characterize as levels same you and as to the level and us. several big the as can mentioned have But in categorize bit them really

Our next Lynch question is with Barclays. from Brendan

rates highlighted your could that get delinquency I on Maybe in you script. the what's behind thoughts lower the

suggests what Some to consumers doesn't that challenges, facing incremental be macro seem some seeing. are that you're but data

minus macro or on Brendan, consumer customers. a healthy base. we plus would very We've still got a I say, see basis, Yes. million about X

market by would amount some to relative risk market there's from economy coming et that indicate not spectrum pressure the again, that of elevated at stress seeing undue large of points, and any really cetera. full So or that's

hearing of a employment fair around consumer commentary I balance levels think XXXX you're amount are sheets, into that strong. well quite now even we're

angst is this to the of timing is relative relative their part having think et I to tapering, that the Fed cetera.

continues consumers So the we're employment and at behavior be pleased from good, by quite very obviously. to large that, and

of type isn't et customer the we're when and as range go you of delinquency, pattern of as a basis, it level pace pre-pandemic. On the of was not nature that a into elevated day-to-day see some seeing cetera, the

but outlook healthy. So to give consumer no is very close a continues shift be keeping us going and environment on, quite the material to eye that an

That's Great. more. helpful. maybe And X just

Can you rent and around types about You where just advertising? other thought TV the talk of use process to your advertisement TV quarter. some ads in versus when

one that given Yes. It's the national We did bit pretty of use the a little we our TV of things in advertising. scale and platform. can industry, utilize uniquely

something used we so reaction promotional to we use some our In it quarter. case, good advertise of saw activity, periodically. we that's And will a the this in to which

I to the We closing back Ryan comments. the end turn for now question-and-answer the call Burke over of like reached session. to would have

soon. day. all Have to to of talk you thanks your and and and out continuing Rob, for you a there Thanks, time, interest we'll good

conference. today's concludes This

this participation. you may we thank at your your lines time, disconnect You and for