National Storage Affiliates Trust (NSA) 23 Feb 212020 Q4 Earnings call transcript

Greetings, and welcome to the National Storage Affiliates Fourth Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now pleasure to introduce you to your host, George Hoglund, Vice President of Investor Relations for National Storage Affiliates. you. Thank Mr. begin. may you Hoglund,

call like come to to the National us for that purchased new first for Affiliates like yet Presidency, to haven't quote man. of thank quarter XXXX the you our earnings our fourth is of and Since joining the earnings Biden Trust. I'd on say today president this We'd stock, of all conference Storage investors NSA call potential

are X-K may an the release contain and detail Relations distributed your in at pandemic statement. direct yesterday, the our mitigate management's of from may uncertainty today's website addition statements uncertainties, and scope, package SEC the nationalstorageaffiliates.com. our differ any In the may supplemental call, to subject to filed COVID-XX containing questions and those the contain prepared that to press on economic forward-looking we The our be Investor risks with projected materially taken forward-looking with including or and severity additional in actions remarks answers to Company to On related on cautions results, section impact. actual duration results which indirect the found and the that the

please For SEC. public detail refer our additional forward-looking filings concerning statements, our to with the

definitions Investor the and encourage income in contained operating on net reconciliations also supplemental such review of package our core section the available in listeners and FFO, as filings. our and in We to non-GAAP FFO, SEC financial measures, Relations information website the

Brandon Tamara and with are CEO, COO, Fischer; Dave Togashi. here CFO, today line the me On Kramer; NSA's

over Tammy. now from will turn registered Following the financial analysts. accept management I questions prepared will to call remarks,

thank call today. and joining our George, you, for Thanks, everyone,

recent to results weather for Before severe been and acknowledge and by affected our wanted outlook we those events. related who discuss have all I XXXX, XXXX

ended strong members I'm is is Now our And in street XXXX normal. Blue rates busiest are strong as management closing well NOI We start to on addition making to our Brandon XXXX. Occupancy elaborate from to strategies a stellar announced record very and quarter we acquisition of wholly-owned challenges difficult in further And Sky team will delivering results, volume. fourth moving our top bang, And same PRO, delivering to team and largely positive to off, for that Overall, XXXX. significant near the the growth, are our we continue doing ever us store these New on storage. support for a December, our growing. it positions which best self recover of will with a momentum later a terms of year-over-year communities high, for are call. and in fundamentals and up back The proud revenue they quarter,

demand in fourth. diversification dropping during of resilience experiences that beginning winter our demand storage the months. XXXX, quarter the fall from than third or benefit portfolio we a January sector, seasonality storage normally Self decline winter and experienced seasonal in to the is continue structure. the the Customer of in strength and We ever of for self has experienced the altered and our we stronger of But months, end Usually and toward of occupancy the sector the February. Storage the the the unusual in PRO

to amazed been past always forgoing Storage it's normal business the be occupancy then, We've resilient. at knew So how our well months. has performed relatively since Self October, decline. several rose and the through stable over we seasonal business held the But

projects in which least more people for a work for office home healthy household room out consumer social recent is is migration is of learning, from near including support to storage to which inventory storing spending causing number driven is our discussed, create general by and continue home, factors, And space and SSS demand migration, to markets sunbelt, a we've and at we a will As space need suburban the think occupancy, term, time on as call furniture, portfolio. clear that for secondary benefits that what the driving home they purposes. Remote The substantially open housing classrooms. which businesses market, distancing for to finally, booming clear I'll

PRO FFO volume, core of year, healthy the compared in of internalization and per Our a quarter in growth, the increased XX% combination quarter, share the XXXX. our acquisition same-store last by of fourth strong to fourth SecurCare April driven

full FFO year, share per XX%. core the increased For

for despite growth self I to PRO which deliver market benefits really notable that our resilience able and structure, attests storage sector. the quite still were we the the to our secondary think pandemic exposure year, it's double-digit the of the recession, and earnings associated of

Our increasing us share, outstanding $X.XX growth continuing since going confidence quarter gave increase our to trends public. and twice year record of dividends strong dividends representing the to year-over-year, fourth X.X% performance our of per per and

down projects Atlanta markets will a cases. West believe an a and to We'll sub abandoned Florida. thereafter. Portland, to headwinds basis, on supply in in continue some and push Turning we've year while reducing similar decline this face certain be We in we've new Phoenix But from trending pipeline. seen supply, steady our the is expect completions markets in XXXX into supply and also year-over-year increase to in XXXX new forward new delays seen deliveries Dallas,

current is in boost especially of some in alleviating pressure, the Fortunately, that Phoenix. though, and Portland demand

busiest had two $XXX wholly-owned XX investing On the and in acquisitions front, properties of acquisitions, quarter projects. million we in expansion ever, terms our

all active properties summary, external JVs. added valued Year operating to and we contract. sheet Brandon acquisition I'll growth And transaction date. continue under And cylinders, in million in year, $XXX XX of confident front. currently currently and million on We've properties, results nearly $XX now another the For full to have at also remained the and we we're strengthen. valued will activity as turn invested $XX investment million drive over discuss strong help properties New balance on another have XX call wholly-owned the $XX about activity. an busy remain results. we million to had about fundamentals in to XX acquired firing In We our of we're the at recently PRO, the

core period. the the XXX by fourth you, Thank fourth for X.X% and Yesterday the prior X.X% This a by an revenue afternoon, XX% over Fourth XXXX. an year represents prior expenses. we reported increase quarter same compared quarter of basis share operating driven property XX.X% increase FFO per growth of points NOI over averaged year, Same of to occupancy in Tammy. increase XXXX. $X.XX store during store increased quarter, of X.X%

XX% integration of prior per primarily additional driven the core year, the full $X.XX increase strong the by XXXX, For same FFO share over volume in during acquisitions, growth. acquisition store and was year

in of X.X% results and top to than OpEx. taxes internalization store same diligent realize per also [ph] Same store We quarters. and growth ahead discussed we've due accretion than property growth end three recent FFO from coming year same Both NOI in in occupancy line benefited guidance, X.X% higher XXXX Full as in OpEx the share were cost reinstated from lower grew expectations. expected, with of and and of NOI growth X.X%, remaining core of a driven pennies the control, our largely SecurCare, forecasted. revenue by store

our the basis declined grew property were These start the year-over-year, quarter. grew that prior winter, fourth benefits while well from X.X%. lighting offset X.X%, controls Personnel favorable to LED X.X% as a declined utilities points from period, and taxes as due expense [ph] XX costs R&M partially Specifically initiative. the to in milder the by year which

in the increase had up, were highlight few an we taxes favorable given are Georgia Texas, I'd saw we a but larger final Oklahoma. which expected property bills like challenging notable and even performance. markets and our from XXXX, Although comp driving to appeals

to growth X.X% Portland, a employment. in-migration above pressure in XXX growth in generated basis and a the Riverside-San largest by ongoing our point average average the point Inland X.X%, average second the in seeing portfolio Empire was the flat Bernardino, occupancy In that prior market our of occupancy of and all like First, sub-markets, basis fourth, for the by overall revenue revenue the Atlanta new Tammy to roughly quicker are trends mentioned of trends largest despite from which our revenue benefits XXX from us Dallas, is recovery some where on Lagging a that earlier. growth XXXX. fourth supply. impacts due as increase also we're driven market in delivered continued markets increase color new positive in driven supply year provide sub-markets. our into to have of I'd quarter, Oregon during

stemming effects lower, year-over-year, At move-outs blade the occupancy while continue January, be occupancy to store this auctions. resulted XX.X%, not continue any end XXX include move-in levels to basis our of at For points in do up [ph] which which compared is the month same be inflated of to XXXX. point, higher volumes from

the As month, X% they to X.X% QX. just increase over for versus about up for in rates, street year-over-year

that positive a strong Now moving experiencing, in result quarter on momentum will first combined with in we second comp the an of easy to half the revenue very are guidance, we XXXX. expect currently

we of year as of share to follows. $X.XX X.X% more rollout impact of we especially pool economic per this the over occupancy trends as However, OpEx comps XXXX to consideration, of a X%. COVID-XX industry. and elevated X.X%, that local prior and half, to to XXX $X.XX of or due year in to uncertainty growth vaccine, X% the at expect in revenue X% also with the in all NOI X.X% to midpoint, into the state We're and Taking likely properties guidance growth growth store potential introduced same seasonal second storage of quarter. the self the to return, become full Core of are FFO challenging fourth factoring any changes X.X% the regulations growth

We $XXX to also $XXX million. acquisitions million assume of

release. earnings assumptions are in guidance outlined Additional our

September. the Now X.XX forward turning we proceeds portion offering our a net to million we of shares equity sheet. $XX had the entered issued balance into of We settled $XXX in for million. At of million December, that end

over In additional we fund approximately remaining million that from our settle an X of announced of month placement. pay to we the down acquisitions. balance proceeds, next funded our credit line have million forward, $XXX representing and plan to $XXX shares We credit million previously the October, equity

our Our of of our in quarter. year another and at with of the debt capital access growth, million debt revolver, and only balance investors take maturing activity organic a of ratio the to addition healthy of sources strong joining will net sheet we're seeing, end Plenty on growth. advantage balance the again the call outsized well us allow multiple healthy for EBITDA is $X acquisition sheet of today. positioned of strength our flexibility times to X.X The fourth to external XXXX. of to capacity delivering through Thanks

to back operator your Operator? now questions. the take Let's it to turn

question [Operator Instructions] Evercore. Please Khanal Our first today from with Samir of question. your comes proceed

through us cadence of walk Hey. revenue Good over the you morning, everyone. quarters. few next growth Tammy, can the

understanding as of you're Just start a get how the trying of a of the third quarter to or things second to better normalize? year much deceleration in in, baking half the

take get place, very I'll not were Brandon, mentioned you I start its strong. the not of little we to that still to one. increases in first Samir, doing But a remarks know, going rate restrictions we I guidance, in but QX, some as Hey, emerging now. so certain be charged. challenging, processing you here in fees opening quarterly from is historically mean, half, being certainly terms given and the more have of

comp, still quite we think I know, tough first as But to still right? well. you the it what the is part ‘XX, positive. back of expect expect very has qX first in you strong. we be then tell QX is half, the half of an modestly be easy will I the so And to So And element really of has -

guess, lines, taxes, over property maybe color the assuming little provide operating then Got are this payroll, expense can more property on switching I kind the And Brandon, your you breakdown what And it. bit for of guidance you expenses. to a year? of maybe,

Yeah. Sure, Samir.

specifically, is to say everything one we the I of for X%. taxes, And growth that X% utilities, categories item of personnel else the know, marketing, to All biggest, range. down next that's total to So outside for other range X%, the each line the gave. property is X% would R&M, that's you OpEx within X.X% that assumption line from but the categories X.X% is those our

outside is high one say the So falls property would that taxes the end. primary I on

any the last is, my here in there impact disruption you, primarily just recently, reads? I you early given into are early I it'll weather be that seen the wanted we've And rental any there's it. of demand? right guess Dallas mean, I ask, case, mean, market Texas, kind the to reads for know, in Got of question

question. Good Dave. is This Yeah.

is And properties. so perspective, know, we from or pipes move-out water days. And, weather from really all for our frozen minimal the fortunate fortunately, couple a rental and starting to very the the damage. know, clear It four You assessing of our everybody's five just you and damage now there. had activity and paused, stuff,

And at it, [ph] par probably storage on so things make uptick around need as we it'll some is to repairs. move demand look stuff and an in and people some

impact so short think and the term, we And at some to didn't term us immediate it have really time and an you us. it positive effect for know, long has -

in Yes, in costs, winter, see might bit probably late since for and especially little we we'll have higher to a elevated otherwise a we the [ph] expected, such removal O&M don't actually snow do then removal we're think first quarter, plan Texas. maybe snow slightly we off

for that's No, Right. me. much. so Thanks it

you. Thank

from with is question next question. Capital of Please Malkin One your Securities. proceed Neil The

morning, Good Fantastic everyone. quarter. Hey.

- First question yeah, sure.

is First acquisition. question on

of you of great. fourth side, can the mix. you're looking sheet of be now? cap terms balance out on from And kind look the what, talk know, they know, quarter? for the are I seeing the of what about like like, guess, in kind rates kind what transactions or just of right You And you on there consolidated kind That'd

Sure, was want and of to a I'll to start my saw comments. take and we small mid really, But of portfolios. Dave sized what combination on might some

you a big super it of saw the lot frankly, did the one of quarter, And happened sellers end part transaction portfolio. fourth And of on December, we we X.X you so before what side them range. changes to yet, think XX in to we in things. one-off of the point the And were who busy I was And are premiums And upcoming potential about call range, tell a are still tax cap might little X potential regulations, anxious basis to tax exist. I XX the portfolio reform. rates, in would

of For And the still compression, a continued us over was this little where cap the acquire but XXXX. in - not assets time. it's not bit we'd markets, at top in like to the rate activity point into

frankly, be just at the or know, We at, hits looking almost teams our not nice about every for out we that were thing on need another. to do. a one very that and Dave? that's multiple And and time our market, at look and PROs, tackling look properties or with busy. or the what all the acquisition us all also - one country, continue singled is at taking we we transactions. our blocking around to to to as we represent extent structure busy geographic one team portfolio keep We add very you another location to asset these is the they're really Anything It's down to but

activity. and really markets geographic No, I in the the area, of particularly across pleasing agree, know, properties we pace think in country of I our all saw that a good see you and to was

end. would I So

Several management. that, is maybe I obviously third-party foot focus augment a know, other an where your Okay. investing have you have put price you types real allocate in. talked or parts terms Kind cap just JVs if on, stock forward things asset And about either Board really, thinking you very of add the companies is their even different growth know, you alternative, of of of environment. about Also about you capital, on aggressive your estate talk are wondering - dictates rate kind you to could wondering, structures was or that, know, to across capital you to in in that. maybe just stack the what be, strong. know,

an of you if how all us at give know, for outline that this you just kind things those look great. you be year, would So, could

Sure.

we see have we of So, we one our have or and to open you [ph] well-positioned component partner a and be to are it also our in will like successful of our Where joint venture we'd to we know, potential with great – partners, capital. so portfolio historically larger them. and frankly, to almost always opportunities that they take relationships valuable with transactions capital stack as deploy present JV themselves. been in joint as another, with with I very closing conversations venture And continue advantage capital

as of see do capitals important structure. we our an that being So part

Okay. you. Thank

question Sanabria The next Juan question of Please - your the from BMO with proceed comes next Capital Markets. question.

Hi, good morning.

you Just signup, $XXX hoping relationship with acquisition any year? that bit a little that your to new Blue to came million could the for do are you what guidance you? PRO? $XXX initial delve acquisitions bit And into And the in million the beyond think you deeper Sky incremental terms the assuming of of brings small

start Blue led history I'll Frederick, that know, long of Blue The Lee development, Sky so by your as grow of you is adding with underlying and entity high-quality a Lee key Sure, has are assets. self storage entities, storage PRO. benefit Sky a behind and developing a

we've fact, over our a acquisitions who Mike to joined to Perry, And a their with they've and years the third-party VP and quite years. at been platform ago, manager, Lee Ben of of partnered it. is also a assets frankly, broker. buyer They former person. their his Two been some of In Vestal, become large acquisitions successful broaden

think table three XX, probably contributed about the be of $XX that I next it controlling some, access to is have just ownership XX years, to are that five time, they to have I think, bring what to a have cadence platform. actually to about they the decision NSA will about. ability think Vestal, of an opportunity an in, say the let's maybe by a so assets, you managed from look And call hopefully, know, to a there interest makes chance we we an a of others to that to call some over it acquire opportunity ahead we stores have assets. plus like the owner Ben year a When those XXX sell, somebody million at And, might his

and relationships for business in an affiliate team be company. hugely the - Mike a long very So speak deep then our our that industry, about His highly - in He's think onto as valuable time. Perry is for just the a and bringing whole minute. team He's to been I just regarded. will

pretty speak you. which And maybe you from was Great, just hoping diverse. could insights thank you've is your any then gained I exposure, to

Texas, in California which what has concentrated outflow on have [ph] can the that big terms geographic from move-outs, in media what Bay you seen and significant You of stories. weightings your be But some people, seen the net a you from exposures Area in in may apparently you're where some may move-ins curious more which seeing or and of some be demand are and gather diversity? keeping news bit

question, and is I Juan. good we've positive a mean to Dave. Across strong rental be move-out activities That's This portfolio, our remain fundamentals, seen muted.

you our significant as MSAs, the But - seen very as shift we Brandon bigger a if into and through more talk strong you But out out from markets about has California. the or area, But remained any Bernardino migration far some is know, we're know, any certainly maybe of the as but haven't patterns, of part of California, benefited results. at the of we these we've know, positive these in it. Riverside-San other that mentioned of the suburban very it's outflow down whole Texas. think cities communities had implement markets, market, in good, You and of everything of strong, that Sunbelt the the through you [ph] into bounce southeast really some you very really for look Texas, And to back. also of maybe not from, know about California you really, our

much. you thank Great, very

you. Thank

of Capital The Todd with Markets. your next question Thomas is from Please proceed question. KeyBanc

prepared Hi, view, you has further curious, ahead, first thanks. was into your said you are strategies to Tammy, still in as to I remarks, question, what's normal. largely look management revenue in the recovery? your normalize back just

would trying it. customers within on know, start increases local to cadence is I say on so our for states is track on we you existing where to things the And go that Dave you know, state-by-state, an we guidelines. are existing the are same tenants on rent But And tag back to, – gouging the and say rent we've had I'll we a we let there live that, some be most evaluating I we out that prohibited. on that increases then historically. What and are and sure are municipality, eye part, where of don't would with bounds. price keeping

Yeah. the we're here like next most we damage here or pretty lift of even able thing expect all most I the California, doing a would we following we're would of within normally know, cities be we're you know, tighter in to few they in our Todd, to I making platform, couple only California, sure for date of the much for our an management add, shortly, across you point, that, would the have agree. haven't. the the California weeks, - restrictions a Apparently, the speaking what restrictions. communities. guidelines revenue expiration will and been of just maybe state resume, But we've part, mindful

again, close and country, by as rules they you located orders. to And geographically about the across executive PROs are to dead regulations the a local horse. but thing, But as and can having our structure, our beat that's nice - not

And I close know, stay if, restrictions. that relief. think us able kinds an be are is to does you to the And or advantage and various about going what's for so other governors timing give thinking to what on of

I that of an advantage in us think terms gives So visibility.

talked helpful. through then, gaining And you occupancy additional January. about that's Okay,

of are of across higher the price into or, effect, customers, increases ability gouging lean Do of to rules more know, so, some And know, outside you sort a have effect. you the now, there to increase still the the or rate guess, leasing in elsewhere that limitations of you the little strength a portfolio? in you with, peak actually, price California, jurisdictions these we're less Maybe months where couple season. start from know, I are

seen in good And have to question, yes, improvements certainly a answer we rates. It's street your question.

through the expect to leasing We obviously occupancy half rates right street which hit Obviously, high will to we're season. improve now. the of year, peak be first used record what

you harder as for place we front and we across know, little the to ability we'll we know, and rent portfolio, on the seasonal So, we a look those trends push you and changes, have in are, probably look, to yeah, we what's sure see do – we to can. maximize in them. in us, our But away, run like we where and we're of like best make would

investments, Okay. up, just that discussed also comments wanted And on home future characterized it the Tammy, views company's from I other then around some sort to about work investments about the accelerated, the follow around, three your that, I capital maybe allocating how your as going how think thinking does thinking you and And know, guess, and company's that SSS's. about you geographic forward, footprint. then pandemic of trends, you you the affect -

out - do about today? are terms you changes the looking teams some at going of we that you think acquisition looks the how to, there, any that as you margin know, company's know, the deals, market the exposures of to PRO anticipate, you you So, at source know, do forward see in all,

that's Todd, a So, question. good

PROs us committed we look scale our that of won't operate, the as markets. in know, tertiary committed markets. think that's top remain been where secondary time. secondary, and currently to XX we think those served And in has I are that I to to long growing over open those markets. continuing you And we've and And course, well, really MSAs, markets, at will to we're to gain we not say primarily

strategy. more committed think we to markets, even has been I change the not the huge well. to and And that's say, so I served on guess, as maybe tertiary I historically, if would But and anything, a our we're whole, secondary it have

through to of we, Or you and maybe, over states, those If to those to continue - to do elsewhere? if look have you we exposure reduce assets you by expect, do maintain know, at, should you'll that markets? where you how that Okay. think time relatively large Oregon, level California your acquiring we that exposure concentrations,

huge economy. we from huge also flee. would a always us seeking say would And away may not we're one-off probably to that to be will total. see California, say less there think on term. naturally, turn We it But I our But time, wouldn't the probably I as – I thesis is, grow, just to, some become and you necessarily, to over truth Texas know, there But assets become we thing. probably long up storage, state. to is over is And strategically PRO opportunities like is huge a us. component will available. huge acquire mean, those actively a looking we Florida. big same deals, state, position It's it's the Oregon, for we it's remain of they may increase like markets In Oregon self Texas there. huge a our significant I time. at California, to good a our as up and as big it's us

benefit states Texas I we're we relied storage population. in And So is a heavily are I self think upon where as Florida. such and by of big in-migration, the as, in mentioned, significant states where seeing

addressed the Dave own impact like of this necessarily Empire, has Inland the heavily seen concentrated in think I California. At haven't its And seen from time, we out-migration Riverside-San - in this in-migration. Inland we're haven't we So earlier, Bernardino. Empire. frankly, We point the

not our done, all probably when changes strategy. to huge So and I think said it's

Okay, thank you.

Thank you.

of is Please question Citi. from Rose next with proceed Smedes question. your The

think And ‘XX be the about of gives similar thanks. you to trail what that the supply supply? comments what of growth in some you thought your you percent sort your kind XXXX? that would pace to confidence, of wanted of questions - that to follow guess Hi, that just of I in And I thereafter? it'll up down sort change is

So do, that are they Yardie the knowledge markets. in and we about be our supply [ph] you to the it informed provide, local as we find refined know, PROs make by data reliable. quite we by they those follow our that is comments But and, perspective

miss is that everybody literally as and same, say, away inability were developments, And, think I have of What what years, restrictions we're from working products. to so labor the of new is funding across lenders seeing stuff seeing were pro the can yes, just projects that we're same on there seeing and projects those is some projects. reasons, forma – And backed by - some that for been get probably abandoned, projects we delayed a the variety industry. also the

And come so in deliveries XXXX. to those will market

So in that probably less our were much key actually XXXX, we in that be think markets they will than in than were XXXX. deliveries not they

with United have a across there think I'm talking most reading not be And and except decline people it experts to back of are insight XXXX, us gives any keep that greater data I and that but markets, in do somewhat a, sure our slightly coming. in the - I the the think with will and the relationships better this, our a on delivery fact than products. States, perspective their of circling PROs I what's who for we in whole, field, the On new our knowledge of

Great.

out of behavior sort anything any potential from much though tax I would current those you to a changes your is might finger mentioned you that, the to of one in properties it's your wondering, PROs, in around lines? the hasn't then know, gains, as on, tax in or been capital like is market, more just helm [ph] of the terms driving around bringing taxes? be of a changes as changes I that pricing, And sellers cashing and there's that consider sooner you've in state to out along You maybe that structure? to of of on primarily And is structures. or they follow or a And calls that I market guess, now good. expect even couple it change Okay, mean, things coming expected concerns

starting what's be hearing sellers. So I and are anecdotally driving there in still around my in pop seems sellers, it that increased the the the because at of it with the perspective, mom though almost seems so activity, invulnerable [ph] should law, that's isn't is least But part pop mom much potential of on there it. hype as from and changes seeing potential of what we we And and sellers, even part, like think part are tax

PROs, I defer the risk to relates part least contribution it At see of ability think any PROs. the see the to taxes As our REIT change we’ll right assets on to on the of we I don't think now, behavior to that a our in don't [ph].

to And continue the or I'm think you when will there they be - stabilization, the so asset, is happened ready asset. when managing us when make if I upon available or, to to sorry, to acquire property third-party when those to assets sell the the the owner know,

regulation. we it of tax activity, while rules know as seeing and over was as So, year increased don't it's if at fear I in changes are driven by the the end

Thanks, appreciate it. Okay, thank you.

Ronald The with is question from Morgan your question. next Kamdem of Please proceed Stanley.

Congrats me. ones Hey, a two quick great on for quarter.

this interested up following on at in, what's of one, likely that Is and about PROs? forward? to the forward number Just you performance, the going thinking interested of about with filling the conversations sort are other the guys curious Just be the in of may the sort less PROs. more XXXX looking for platform? looking whatever you're with likely, After out markets how maybe them discussion joining outlook the sort

one to if there we quite add three look in think for you our that desk, know, I And around time the you in some at say had the to to - another opportunistically have our we've PROs. going now. I'm So math country, room

And add so still where geographic an areas we operator. we would to have like

And changed steady, conversations is as private some It some timing wouldn't about the conversations much, possible will have room any into take year, We're might moment. don't for so large changes are accelerate of the impossible. almost talked many we we but has PROs. that at on open Our the of operators couple sight couple that tax these that consideration. we've on operators more the And more cadence they're of I the line this PROs. have bringing predicting a times, potential with to say is a

this would who you fit, be operator the good XX XX you in place, you know, the to right a able be to the months. next like I year, to sure, so that, do know, And sometime know, right in

Great. third-party insurance other or know, always is you up, be, this of comes just My whether second income to revisiting tenant management. going it's just topic that question

of on Thanks. Or Just a if maybe of curious, that? occupancy, updated opportunity sort past? views there? the the little the that company's sort that interesting bit Just the given, looks updated thoughts any an changed than thoughts, thoughts or the more is in performance what's

Hey, Ronald, it's Brandon.

Let me give see it you then question a few if not. thoughts and fits on or the

you the as tenant Fees, everything in been the in most us, even part know, I you the of XX%. challenged like recently, all has in us, is case, rentals even were has roughly obviously, Things insurance given spoke everything about a sales, know, we And think, well as retail down fees and the the velocity positive year-over-year. experienced as been you we So, ancillary XXXX. throughout for others rattled We're business. of sector. still positively though very for off, QX,

major that geographies start was we of were to was, the Oregon where of know, Some quarter. restricted last the you our

then you emerging lenient being also And from charges. customers, of And assessment those and working of in an perhaps so some we still with you know, were being, some that. had cases our just on

you part if and key will let an there of contribute it basis. pause a was remains the to see business on just me you So, But know, question. more here the ancillary to there And, growth. know,

pretty comment makes markets, now? now of guys mom like heavily? Thanks. the into do you equities Is No, competition in the what's more, can for sort is of the if to Just sense. pops, [ph] I not a it Obviously, I competing you curious, that it and private to think may, acquisitions space the questions one debt come ton right? just on who private But equity? still beat Actually, against acquisitions

board, active. a them business firms of the And and are private and certainly we pretty Blackstone you who being peers we're other about but know, our across competitors. To as think active, the at so are acquisitive, looking and acquisitions, attention. lining deploy capital here. performance, competitive, wants everyone that silver to And lot and jump the storage it's of very attracted it's self are in And equity

think So and our remain it's is we to execute idea - I on okay, disciplined our strategy.

believe hope $XXX out We slight I there of capital think, able comes our we We a having of to set think, we very successful million bigger a our sight that $XXX - continue in for a I to to to losing something gives that strong executing year, year. deploy ability corporate new PROs will this with optimistic and an we’ at one I JV us looking one. us, to be about a I'm advantage. if deals team acquisitions a hopefully And disciplined. have again, along, million without strategy. either target invested on PROs our partner, this of importance do that that remaining or And existing with our the be

many Perfect, thanks.

course. Of

Thank you.

Ki Please next question. Bin Securities. is from Kim your with The Truist proceed question of

Thanks. Good afternoon.

to So the to of obviously eventual term across most markets. understand time the mean very versus strong balance we're of demand strong how see all your those near great reversion. all And kind growth

having that wanted So some mean to markets. say the saw something near versus comments your term? we to that you more there's out markets, similarly think resiliency in the migration suburb urban, and go perhaps to sunbelt, I regarding of more about back to demand three the strong market secondary reversion SSS's, Do these

there. you might I be I'll why. tell And think something onto you

severely the those as really suffer economies, there's well as economic also that know, or small shut of in businesses not we've those were And Bin, an affected from secondary do past, in-migration. I markets really but as markets pandemic. some and talked they hot potential health much. case, you down, they what not tertiary in a about in community then know, down, hot downturn terms Ki in benefited as not nearly when in a this times, and shut crisis, think the you do And, perform

head your on of with about nail the hit you those the think thought I there the markets. so resilience And

it's changed Okay, [ph] this store creating that any your the PRO And just you different a have I'm now some all thought website, Did do websites. guys kind you're you do customers another or websites, to little the there And website change by your any lose of website? umbrella not encompassing using two, kind bit of isn't And a store through more, quarter a you any you gostorage.com inventory. past website great. umbrella search of think? on not sorry

Ki felt brands I first And our in has do any we what quarters we were next first more Dave. is phases. of through getting the its over be It's the and that we've storage go - working This Bin, brands units. a and had local have umbrella be CMS version was yes, that evolution And another question. really deployed, robust product building launched. we'll couple the in of what units storage really particular the the website Good the beyond to we that feel have on of than have their strength the we we PROs those with go platform. tools don't well lost out business, out

building be that we done, rolled more in go very And launched quarters facing I we've we think the pages front out nsabrands.com. next as and And see. what so and pleased we you'll to we're what with got come on the you that with

previous follow cap acquisitions. just rate, up you. to on And question Okay, a on thank on

assume to kind stabilized that’s to million for of guidance safe For the it X% $XXX in is this X.X% cap is rate? XXXX, same

correct, that's Ki Bin. Yeah,

Thank it. that's you. Okay,

you. Thank

with from proceed is Wells Please question next Fargo. Jason of The Belcher question. your

Yeah, hi.

maybe little if trended last average the than currently, or of how Just give color the a stay can us over your wondering on more customer that's you expected two? where length demand stronger and touch seeing, year on you're is

This Yeah, is great Dave. question.

our all you Our there. from seeing seeing strength we're it multiple board, trend in direction. average factors to now, the diverse It's over we're there her increase, above, our portfolio. of continues know, as on to the whole, if of stay all XX.X continues and which about. at We're a it's length of what going months patterns, right And and opening comments, communities. out a all of it in look know, referenced about are things Tammy And across the happy you demand right you lot

And pleased But have You we've story. integration the competitive know, But strong performing and we're additional is pressure, have markets this the some because there. sunbelt our the they great but everywhere. not know, seen board, a obviously performed we you of really rest where are as well. of pretty portfolio, obviously, strength properties across maybe as just demand,

Great, of of segments some little business base. makeup? there, give two college just that's of cohorts you down idea could rough your those a maybe on drill specifically comments us the if more, helpful. what Any offer And I customer then student revenue and bit and percentage can

It's bag mixed a good college across students. college question. with and really on about We've all going the the talked universities, it's what's a a And country. across students lot

out, some came in, are Some never back. some still are still

historically, may expect think, spring, I seen as this some what peak there. is as movement be we the not pay do normally looked season we at we've college

who's moving to you We I normally as who's expect it back April, X, ranges, to listen as not. to everything around be where used strong is dorms as come probably dormitories, to them late as kids in maybe in be those because far and expect colleges that and not but is March under don't as it the headcount the it

lot the of way tenant talks name, our it still think a a that shifted in tough a or individual one XX% to business, detected. there's being It's tell, businesses, that we've the it of track. tenants, range. business we of operators to know, not But you everybody we metric them XX% to XX% so course, really Our to about about And it's other, that's hard runs, base. normal, to it's think about when it's XX% hasn't you rent storage unit, overall because a our

Thanks Thanks. very Great, that's helpful. much.

proceed Our Advisors. Stephen Instructions] Mead your of question. Please [Operator from Capital next question is with Anchor

of struck and in in bit in on terms you occupancy of XXXX, just in I more, rental Can big what revenue Yeah, pretty we And then Oregon. guidance increase trade-off also the of know, comparisons was on the and is question, management rates? then follow between going rates? get terms equation. and And flat a a what was into in I your relatively statistics rental of XXXX, of good you and in explain guidance, the sort have morning. by occupancy the I terms kind of little the revenue sort side of was the as

questions. Both really good

were is really rental Oregon, and in to really gains, Portland, a our you demand. occupancy smart market. I saw PRO they very you and tactics obviously where Obviously, velocities wonderful job So trying balance And wanting occupancy for, think, stemmed really and, to know, biggest there around to it competitive and focus achieve. revenue deployed rental really and getting up tactics a and did looking the velocity really marketing that management Portland's the on been some they,

come now, we how and what we much is looks it? our see back talk maybe see rental we'll think it? of we move velocity management on occupancy we Right a the will we get have you velocity to next tenant what that the what get much revenue I think to to velocity Where going where I modeling, want, year, available to compared As through have to really, that or on the – are really things pressure can we current at do year, rates know, changes. rate? were that's job, and demand. parts hard chocolates all on of do that's strong, change And both So towards rate thought them, balance But ends, we working might think bounce exist when year and have works that. maybe the fundamentals And continue pattern good way and on of using And same in worth to out this the expected to to we're we spend we're and balancing like rate. new seasonal have that really, and we're if want teams a the we And half we're I year, two strong, to occupancy normal this tools it its going first it rental driving street driving half And year, question, pushing how And the just until ourselves where are of all and environment that roadmap. look that asking working did they that supply back for pretty on exist up? you the available half year, we market. a the communities the percentage PRO, wonderful really look versus about the

overall in terms And push environments, higher there last macro of quote, connection of picture question, one of sort inflation? of is the terms And kind to then historically, just of sort in in inflation your inflation any of to lower rents? versus sort environments, ability

good about leases. The were our month-to-month nice A question. part products

spend up. up react for most scenarios consumer a obviously far we have can we as with we much down flexibility, we would we've can. as in gives But, know, very as product overall I great looking really us means deal you nice past. in say accelerate mean, at, really know, the And demand. go rates flexibility and when as accelerate demand, that's inflation, cost So ability really you and balancing can what and to keeping typically of when we I quick, a maximize inflation historically, need seen to

thanks. Okay,

question. proceed question The from next is Neil Malkin Capital One of Securities. Please with your

you the Guys, quick appreciate Two Hey. up. taking ones. follow

to you demand have, of know, don't to the very customer First, or early single your probably that If profile, family single historical to - the the seen expect mid since a market? continued we do to data haven't we or ownership or change I were know, we in like the have either if profile rental, XXXXs. you strength seasonality you have sort like that did portfolio? robust of family, How

of country, has markets. transition because our I demand, agree, as creates been incredible, housing across and people certainly it the the know, [indiscernible] You single move markets most

seeing that's as fourth I the into housing the first. typically, and which demand really more so, right mean, quarter third strong interesting come in summertime, this a is you we out And now. know, we're

And kind drives we're some season housing peak I of going And long as will it demand, have think a our hot in But when say lot all got like. leasing bit little about markets, that these market that's us I look what's good as would to from we of is nearly a so that. and benefit generally summer what the super stays results. wondering

or reap the the one about of shorter operating know, you and the and sectors, technology sort term talking how sectors across the asset really multiple the lot chapter like peers lease talking lot of about, operating of that, at in institutionalization platform for as companies, – revenue [ph] management. Other of Okay. own that next next least a of I a see me is, run or how you be chapter in standpoint? then am what is tech any of rev-man get harder basically PROs ops do of that of And what that all their like given think can fit the you - your wondering, from implementation an systems? will you kind lot

Well.

this revenue I think, system. try us management through keep cast. year really XXXX our system it. It too point to a in and for or a year at pricing of really some a and point. good didn't own run system store we're the way one what question on was And the on was a with about from time on we year new and perspective and It's good great a tool. it perspective keeping certainly really I'm and trying proprietary called as the where worked excited rate controls into that wild us other. really We're go doing far, controls

looking pricing at acquisition. really a rate and forward. bit the customers. the discounts. I to baseball changes, broke two then think just game, with And perspective, And little And We've we management enhance other backside, initiatives, can innings. how right life And a have saves discounting I that new improve costs models that, customer really different now have I the science, revenue model couple tweak runway from customer one and left. We advertising, then the major setting look maximize line I'm them think and a I is this that middle and think tweak we think, think at, in get we it And have if as into place I look and One, dynamic you of know, maximizing obviously we're sectors. go you them run better. ones studying we are you and upfront cycles, taken there. team. of data really you on upfront pricing And in and pricing the have if IPRC. was sight And to on for certainly in always we acquisitions a We

leads it there. to know, that. So System CMS, up good we've improve our you and journey that way Management really look how do some more And it's we efficient, more how obviously as made the and more acquisition at that get online is rental website, online that we there we and really through in some to that our process, we and enhancements process. And customer And call work better, if efficiencies customer rentals, want then process changes nice there. Content as you

Thanks so much.

Thank you.

There additional I'd to turn this for Tamara closing to remarks. are like questions no call at the time. back Fischer

NSA. Thank like you. I'd again your thank to interest And everyone in for

allow stay safe, in We’re maybe even and to look and fact the and unique we either virtually outstanding Be that person results you of results. structure to pleased year. Bye-bye. full this XXXX forward our and fourth later with or our We're optimistic healthy. meeting quarter about term our you. such deliver Thank sector with year many PRO near us

This today's conference. concludes

this lines your disconnect may your for you participation. time. Thank at You