National Storage Affiliates Trust (NSA) 3 Nov 212021 Q3 Earnings call transcript

Greetings, and welcome to National Storage Affiliates Third Quarter 2021 Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to George Hoglund, Vice President of Investor Relations. begin. may you you, Thank

We'd like the National us for for Affiliates thank quarter XXXX you third of joining earnings Trust. today to conference Storage call

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

remarks, accept questions financial from management will prepared registered Following analysts.

On distributed because as those website the after investor forward-looking call, may our Company Company and be obligation questions. today's in differ we the update supplemental cautions at our this package and to addition date management's to estimates your X, statements subject yesterday, conditions materially may on from November which or In of with section any statements to The statement. results, assumes changing our other on or relations in nationalstorageaffiliates.com. of of press release uncertainties the remarks conference to market circumstances no prepared that The XXXX. call. furnished additional detail revise are management's results and that found risks forward-looking represent answers forward-looking contain projected actual They today, any

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

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

for And thanks everyone Thanks, our joining today. call George.

indicative growth again benefits allows including well exceptional the our NOI team results quarter. the of as as and extraordinary of growth in ongoing of are to XX% for in and results quarter, The structure. our same-store we FFO like thanking of strength sector, per announced our share core XX% for of yesterday, by about differentiated deliver hard us open the acknowledging dedication results talk and their our to the we work, which Before for I'd

right are to Continued near term both us year start remainder a apparent there now, signs new allowed drive XXXX. record well which headwinds, customers. of the near and for rate to occupancy assertively implies no and levels have the of strong growth, And bodes for existing any

growth levels. external remains in the deals the the market volume at On of front, unprecedented

deals on on location, X% weighted below of marketed there's element just the cap captive off is deal, During the $XXX the we properties quarter, marketed in all pipeline, some the year our nine or a cap invested rate of over involved. through properties, it our and But based acquisition third the premium, X% vary mid portfolio whether XX volume these and valued bringing million over billion, dollars. at current months XXX billion to just approximately total $XXX This of guidance our the investment In end this whether to year XX million our surpassing was the our on rates from of of in Cap in results a invested average range. October, over in source range prior range. of we or year-to-date up stores. top $X.X in lease acquisitions transactions five from closed first

We at cap across we About rate. deals into our on self-storage which source worth acquisition just pro-structure, tend continue compression, some two-thirds up, operations of stage and year, rates essentially an teams further our this and closed we've assets portfolio. transactions continues position to first slightly deals were which to pipeline, capital the We from year-to-date, our deals as XX% cap to cap to country expand and also buy or and teams see remain the meaningful rate seeking to captive our from XX closed underwriting to us disciplined It's acquisition the in over off or especially and amount of portfolios. our benefit out where year integrate XX provides that the lease market. above continue in pointing depresses with of establish the competition market drive of for larger

we to forward, $XXX have that of contract valued look million deals year. the at over by we have close additional under the we As end expect

per expectations Our acquisition growth billion quarter the the revised for to team at and his the exceptional midpoint. level in XX%. We favorable The nearly our elevated NOI backdrop in us store for this results same share very quarter. results sector volume revised guidance our of to a Full tailwinds growth self-storage all continued Brandon XX% core volume year further stakeholders. fundamental exceptional year-over-year remains led third discuss for and and increase in again very FFO to executing high revised to at $X.XX comments. guidance in acquisition will deliver to our midpoint is

to differentiated historical our as secondary the Dave? Our over to tertiary serve the commitment structure, as Dave as on we're what color provide and turn to pro well on call well. seeing ground. to I'll now markets, continue

believe occupancy the a new demand long-term. new that remain Thanks, Apart relocation, a below year able the quarter much normal which transition, Consumer changes, boom, hold seasonality compared continue self-storage Tammy. as sign our a customers rate all discounting are demand contributing level, tight historical Pandemic being record close to highs, concessions the environment. remain to we're been remain high the driven geographic experiencing, which number and to housing average which and historical favorable levels rates, factors job multiple push market, us demand on rental see to storage introduced we’re patterns. this muted Overall such growth. of allowing well is current averages. We fundamentals of any will street to strong. of significant changes lifestyle to by driven of from we Occupancy term Through the high occupancy has near higher XX% earlier. to don't this third to compared

averaging increases to high be single rate to increases continue rent in are digits. these We low place assertive double on tenants,

the continuing the rolls realized move versus second X% Positive rate up is was moving quarter. out quarter, rolls a in rental considering up quarter. of the Our in changes the impressive combination a be rate rate free to roll rent slightly up is X% improvements rent first rent in and in experiencing place down which in strong October, tenant drive The is the contract which positive assertive that continue in third trend we in from rates which we the rates. our normally

for every year quarter. month year rates started we're third essentially up over the Our in this just mind Keep X% that contact the we have year-over-year. improved flat and

heading fourth and I'd are in the we're comparison with XXXX. So give momentum believe well quarter us know sets comps that into due We like to to the and rents to the place distorted up XXXX it two-year for pleased the a XXXX. pandemic.

we XX% a our third are place approximately this steady to two-year points. levels XXX The from are in range. both decline the not contract rates rates of We Street very quarter in quarter healthy want rates are period. about growth third Both points, and managed on well. Earlier of the XXXX seems as over X% optimize Our and of in how occupancy do relatively in and strong up resilient June points quarter's been, occupancy holding XX occupancy. everyone of basis new of revenues, light has growth third the to in occupancy year, trends project XXX positive be has range to I occupancy the in ended XX.X%, in year-over-year. XX% continued December very we end to to pleased especially the declined The that rental basis our XXX the of basis end seasonal with October. only in-place remind We're higher customers.

process activity development online. that consumer to with yet shift coming any markets. demand Turning our the developers expect to no and self-storage. new development facilities costs the build the supply. to And new to entitlement a in want and And who shortage We've activity up. do muted of competitive in The remains slow impact a arrive meaningful cumbersome. of has constructional are certainly seen unprecedented the and There's pick permitting and we

sub-markets flat a call Florida. continue Brandon in I’ll new XX% in activity. sheet Portland, radius, within figures Phoenix, radius. supply the XX% quarter line and to to Dallas, three-mile from are competitor under of just new our the Atlanta in expect results We here some face of five-mile has portfolio to slightly to discuss certain balance headwinds financial the from XXXX. Currently with and to last and and under now over These in West down

Yesterday Which Dave. afternoon for $X.XX FFO we you, reported an represents over per the Thank XXXX. XX% share of period. of core third of quarter prior year increase the

revenue prior compared driven Same-store this NOI year, XX.X% XX.X% increase an X.X% to combined XX.X% growth. by operating an Third is basis increase All expenses. in quarter of with amazing quarter, increase during XXX the property occupancy the over average increased points XXXX. same-store by

some it's think the we impact you've two growth from from noise last us look That's years. year, the throughout at As to the of removing average pandemic. across heard the appropriate

average, NOI same periods and same-store growth over For XX.X% X.X% per XQ, is revenue those the is core year per impressive And levels. growth XX% per all respectively. two share FFO very year, two-year and

growth the third the comp. X.X%, up picked Same-store challenging OpEx. year-over-year in to Regarding to quarter due

Specifically, impart to levels given Also versus staffing the incentive wage top for inflation, levels XXXX. employees year, more the of due occupancy personnel reduced this revenue store to costs higher line and costs contributing increased personnel performance. X% and opportunities normal overall is and store hours

were strong X.X% experiencing, demand to up the marketing partially modest XX.X% X.X%. was a marketing reduced of for repairs in which comp, challenging as most costs need that saw spend is occupancy Other spent. item year we expense due Clearly, XX.X%. that increases property taxes the and third elevated growth last line expense at Another the were offset with to was partially This we're items. and critical and there higher utilities the limited quarter, maintenance, by growth down

Now guidance the or at moving per us experienced Profitable we've increase increases X% follows; past on over year to led to to year midpoint. growth increase XXXX the of $X.XX guidance approximately the and from growth internal this midpoint XX% quarter a external a share range prior prior $X.XX as guidance. and full Incredible

to mid-teens drive is XX%. quarter to growth comp. growth of moderation from a XX%, implying revenue OpEx X% third which growth XX% for slight fourth the the a of NOI as that growth same-store tougher we we growth quarter, X% year-over-year For encounter and XX% to in of

regarding are in Additional the release. guidance assumptions outlined earnings

much July, side, last equity In of the front, on these $XXX in offering we the the Turning equity summary, ATM to large active our included call which are discussed OP and release. quarter million balance of activity acquisitions. details our in on our which the We earnings follow-on nearly and earnings on accomplishments for sheet. issuing the in were capitol third across

XX.X channels priced documentation. $XXX years, we market and notes, debt end, of The conditions, average subject senior to of with closing million nearly things, X.XX%. the private other weighted and we quarter $XXX in transaction to side, weighted million the across On the of placement a multiple issued average quarter. completion definitive of is coupon Subsequent a third maturity unsecured among

working we're repay more revolver, private all these on documents time are for signed the capital placement activity. specifics and Proceeds have to being very used to to provide fund soon, transaction. on raises the will the our at we from However, a which borrowings acquisition

Our at balance revolver million XXXX of no positioned through quarter. $XXX third a well maturities with is and the the sheet end fully available

We are ratio on be to the net revised at a fourth sources healthy our of Obviously, capital. EBIT and times with of acquisition will debt conservative leveraged guidance, maintaining quarter committed access a third busy. the based the to quarter, of to multiple end profile X.X

look forward capitalized are our again and our Thanks consolidator sector. call We today. and joining remaining in to for discipline well

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

[Operator Malkin, Capital Instructions] proceed. Our with One. Neil first question is from Please

quarter. to good you. Fantastic morning everyone, Hey,

who sort extremely as move wondering great couple are with of XX to stay as that two you is First in things high. things you permanent one longer, related you of from stimulus demand, that relocation the ease Maybe wants seems there the as anyone are been if out how see That'd XX last government. that's propensity, or of to that the step federal like right change I'm about more are higher just it? storage, of or sort It there's people's now. in over going savings kind potentially some occupancy out for kind changes believe me. you driving playing up, a be talk picture of Do over things them perhaps next of functions take bit, little the either, Dave, a sort bigger Or making terms from people XX the months? kind COVID, months happening dwindle Thanks. that stopped of think accounts great. COVID just the abate, of And

have by harden I and this short term really question demand plays Interesting question. a favorable don't think sight thing. on real the a rent for tight thanks Neil, Thanks it's out. this of how in line current

I for for us high think usage sector. great is is in self-storage, an all-time which our

that things in around the a home, happening happened work, remote things country we’re the push pandemic, I from were bit by think were There's our that always the a to accelerated that more already. accelerating already in been things changes lifestyle pandemic. work little

home for a Even think return things the from of transaction of that office, outflow be just been the at of country, benefiting I an not As all have a happened, anywhere, the the around some you lot still us. opinion. there's there'll demand look anytime where in I soon. experiencing the certainly my think areas the going example. That's are patterns country is similar markets, which definitely we're at from permanent stick, days you into piece consumers home if work

So that using a overall, the easy product very it great the our we're are product lifestyle. we're people encouraged fits are by very fact to encouraged finding that. affordable, it And use

If is of things of prices apartment little things, you a they've a or those change. of it'll for really a product, it affordable today, very it the think to all less an when because and what's in and maybe house, of happening want take gone size rental can't all you the these you and market housing self-storage lot And buy costs. downsize bit the high

long-term think that's I So there.

this, little our our would are I tools better think thing of better. a getting you gone Another think I have to I bit tell is all teams

have a us gains doing And some also the of been occupancy revenue gains jobs and a with some function the is our that to so function of able have of but we've better. we of it's demand,

us teams proud and me, to proud tools So accomplished. now. of I'm what are all improvements of for our weighing technology I'm right of have what our our in

of So future. think I lot a into for the us as things good you go

source is Other guys I testament on think, the talk on markets pro market, it's on just I going great. for to extremely size, especially relative maybe maybe terms Shockingly, really amount either rates, been your how can outlook you have robust kind have a me. kind that's you've structure. fared about, of players, for rate think seeing activity, up the environment, ones your active, of Can Well, near to you acquisitions, and the institutional for product of what your been a in lease able cap you seeing and premiums, component, given potentially yield are cap your more you of kind get quality, more of players, in term. you're

to that it's we're we'd year, like not really actually the large So I something, of where off in the the literally that play. can a the all. assets, volume transactions can at as team that's here, from head slowing be portfolios even unprecedented. type of portfolio of down continues And jump start other missed and members we of but if toward end I’ll The large to one transactions range really to seeing,

also successful, we've cap and remained our think we very we've they're I better. markets. a like very secondary very discipline, bit targeting but successful little -- rates, We in been tertiary are And

the you But we've the strategically assets. XX% on benefit range. are assets I'm And rate that to markets stage I at I in secondary We the building remain say I but in focus. that's there. top XX% invested Now, to our at as in cap so non-stabilized markets. whole it's scale up, still and We that's everything we talking we and said, lease active also some a like MSAs say very structure and that not look like the in maybe of us. delivered to environment. think strategic about look and again, won't continue standpoint, tertiary think some from where when our non-stabilized, that that continues We the And out Neil, to

be. now, of there continue a and times, our a of sector and and probably capital said to that In is many chasing last by own released terms deals, fantastic capital it place results days it's over the our question peers is of lot as a to lot it, say Right results. there's about evidenced great we've a self-storage your will few competition

And also us it's naturally, and and so think I phase. players, our bringing will competitive. think new that it's relevant keeping is remain toes it I But on highly we consolidation this in

I'm of things. there, So all if not missed a I did sure hit I points couple of your or

think beginning just is, year. No, compression since lot that's was the I of sectors I other saying the the only have thing cap of seen a rate

of plan, in wonder I because yield I you know is more specifically markets bit on that the can structure. if think pro the game, of just I that, important, the So little you a kind comment particularly because

Right.

is about assets cap the this are either this cap X.X I us five range. it in rate we buying acquired comfortable year. range. compression, that think in deals cap mentioned And market prepared upwards active they're assets assets and advantage couple pros, all X So points on whole, premiums, -- captive pipeline, rate from seen I half off if of cap In now. think sourced and one yield the XX remain those goes. I where having just mid the The gives the that And I we're mid never in we're standpoint, seen But after were we're cap range. some have been two-thirds thing we'll the their like we that acquired year, in those our XX assets years there but still ago, to then they X sourced about we've still still non-stabilized yield, that on we've or say of that, points I through what of I stabilized that go this Portfolio a The rate XX would in our six see cap to XX is below better, basis pretty basis a that we compression we like said an think their is comments, range, that by through we'll that before. to my relationships, are deals. continue have

no there's but to look transactions challenging, at. it's So of shortage

Thank you.

You bet.

is Capital next Juan BMO from proceed. Sanabria with Our Markets, question please

the the occupancy us And see end Hi, reduced fourth guess, I morning. if October, is with regards you those assumptions from give on and time, the to you can thank for at for relative to quarter trending where the spot just good as assumptions curious under September, just of to how guidance? you're in the

Yes, Juan, this is Brandon.

occupancy spot the XX of at the was store flat. same end October for So

And on as gets remarks. in the hit June, down XX basis to so up from Dave that points of end his

in he we December. we But to earlier, in a maybe period XXX when last favorably. have out more from had played As spoke to said drop, things quarter, period point June estimated that's XXX basis

would a COVID October, be month have XXX like a at something from occupancy. it basis year, more pre Looking uncommon, point end to in drop to for not or you June

is that mark that at encouraging. basis fact the XX very we're So point

months going to so couple a And I could something range closer the and telling. XXX next XXX for movement, November couple in the at basis back But think point will half period. be been to from December I that remaining to historically the of there's June looking December mean, so months, be we're

XXX and you assumption so guidance that XXX to the on. that Okay, touched is just

That's right. right. That's

XXXX? is to steadily off up? have begins that expectation with that on in should to accelerate the tail been the we you to going regards rate, assume and that continues some as fourth just Or Okay. basis a have year-over-year comps or numbers And grow the tougher into then

fourth and It's tougher the a quarter a question. XXXX. there’s And comp end in of good certainly

Street see I think right rates to not are of place is and what on off starting level we any moderate. in off type We're now happening backing changes.

of was it. We'll not the forward, so and fourth plateau. growth Street in all into rates as and of rest We quarter aggressive XXXX. look we we declining stay to continue And going see place probably rate that as we don't onto see at the piece in contract considerable

of get or would for earning the today, equal shoot is, is can you occupancy, start, to guys any forward? And chance that comment on kind I what else going or how you rates what

occupancy tying color, us do about terms occupancy. than Probably not going it's of I remarks lot in on positive spread. up a number I end into the but one, said, this I to just you give made to in range you're we a that nice I that mean, going year-over-year get if of

trajectory over steadily And the mentioned so quarter going benefit rate growth the contract for the year. us improving. in the I of quarter to mean, rate they that a trajectory that's that just year the X% well on was throughout

tailwind. kind to So below quarter, the so in of digits That's terms in double will comment the most the we by also on end into looking October certainly closer that were of of and and XXXX. that's tremendous

guys. Thanks helpful. Super

ISI. Our next from Evercore proceed. question Steve is Sakwa Please with

might XXX far just wrote to I line something down you've That to so want think I the max. basis XX was XXX maybe like Mike. Thanks decline, just to clear, baked maybe some follow-up of in. wrong. points it wrong, I wines But on I'm got the is be questioning, what

would to want that's curious, that and just that kind be be So I'm to going recent you're to conservative? level? happened there just cautious? weeks anything that historically, Is is in Or that you of you're seeing just suggest just your effort the what's that

are question. normal great this and back we expect Certainly, velocity, we're things with in bit move more see It's be patterns. are little which still some around would to what seen what random historically. returning seasonality year, And of encourages, outs half did we we've muted. A a more back happy to the

historical certainly movement November But there’s So You will conservative, where with we're and in factors right those some pleased we're sitting play? December. two we're now. know, XXX% I patterns but say in

what go you fourth to you That acquisition then, my or in again, right, back in $X.X was math, and the which billion Brandon, just including close you of would I've to if contract Okay, done XXX. sort sometime October to another of if closed billion. Tammy some quarter, of questions, and have of $X.X basically sort you the put said under had remember it sort can't done was

but the far of maybe from a X So range, low billion. above the still of at the end the end little upper away range

you mean, get to finish the at really I are So, end? sellers realistic Or try are and really done scrambling Or this actually that year are maybe is that get can over rates before X there just, under today, point? not change? things billion the contract line deals tax maybe not before

question No, to I some your And are there have that contract. Steve. it's highly we under think a what amount achievable and sellers Good math in is is have stage is right. speaking fair motivated. But we're And what we of more other negotiation. closed

can it And and get to we closed so negotiations through it get third actually done, much it this come through it'll get get party, down how year. diligence

think seeing don't now. what all based if can at we're X certainly on we'll done I So I it billion, range don't is right unrealistic. get that is, know our be the but to

are last in then about given growth Got when question high underwriting it. Is we've sort you're acquisitions just of occupancies. the in rent about curious, of how is sort today, between and two, the strength in maybe rent the three, now? back numbers, of years from new and today's stabilized what occupancy think new to how seen I thinking you And numbers? mean, of kind the reverting will you numbers you incredible do normal something normal? be new sort four these old or I'm

but as in our a Yeah, comes We in, the tough probably are it's competition And way, on a come question. middle call, finding great market that'll we maybe and don't put shifting distance a believe pressure it's street rate. someplace.

we we look as in rate next then how into year at free models and our really that, at course, market it'll think IPRC we're And properties, we we're modeling, what of at be look after, a it. new looking year put that is taking so really rate what and the

very upper market in maybe where middle advantage we're So very, are of would hot the it's historical certainly is but now, a what job say about right very I in. somewhere we taking rates now. and the situation And great talking we're what you're done everybody's a are of between screen to

fall First we're grow and about motivated sake where So, certainly for them hit and before highly growth. every we this we as a just And growing trap are or not know going too, hit Steve, have of to our into we we've of year But you also exceed we've but talked remain to targets the this year. and foremost, expected externally. disciplined

for so about accretive strategic are our to all shareholders. deals, And us, good it's underwriting ultimately and that

That's for it thanks. Great, me.

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

forward. that Hi, able of acquisition guess deals and quarter up the how yields acquisitions. year third do range be of so that much Tammy the questions expected will Couple I be X% expect thanks. on remaining to CFO or lease investment the to you mid sorry, maintain moving here through and end of the or that discussed on

able deals type may in we'll for it about going come close. not still X.X it'll But at toward to a whole, most looking third stages down October, so to maintain closed with we be five cap closed assets that the now a the we're But moving some pretty on range, our mid handful there. do we've where CFO what of have I is we're believe was we've the in of the what really Again, little non-stabilized quarter, under what non-stabilized speaks -- in QX that contract million. investment that stabilization. are in $XXX there remainder we to what bit be remaining end, assets through through right So of is What close have acquisitions. the

Right.

you to premium in what mentioned you and we're that acquisitions, on I seeing be that a And in was Okay. of we're what's hearing others get above the get that premium pipeline it guess off from acquisitions? And pipeline. market, transacting of specifically? then, think captive sort you market, this those activity seems How what from you the year's much in and on captive pricing the the there's

question, me that the let have the I of deals $XX about of what with start and to your would with think to and our our rate at clearly that pulling cap compare sourced to. to, third estimate I up market, and your we're it deals the combined an off me the the premium. basis analysis. from it what is the first cap And, us off that of our fact that been is Captive total, come in pipeline. I we Whether for points But can XX Captive advantage, about two-thirds parties, through think, the -- pipeline range and buying of could given are came higher hard It's million be rate part the in has I easily what it market -- end say, deals

then much comments, -- guess, believe it in sort in into I will not coming years? been this will which of of year, historically prior of been so the to market first your amount half the as has of your product it time Do unprecedented? be and busier this XXXX? you continue comments has level just busy it the traditionally, view ahead, year to than Okay, your activity of about anticipate your being I looking

to something potential the is, I exists. I'm Yes. volume potential believe because now. it the sure that like like and get And reason done who would of they'd right to sellers get that's deals the

-- it's it's of be be to to going just going Some not not possible.

to of next And going fall year. part first the is so it into

also amount interested. keeping we're and of motivated changes is now people been seeing right potential capital and chasing that have be I the sellers law. continue tax in that the by say While to pricing would deals

believe some people on some But it into of deal hearing, and of fall we're may based while. just done part what fall So some for seeing first we and year, don't pull hang off will the back this this get XXXX. activity that a on who maybe their

last for The $X.X with billion. Okay, one. a one larger of $X just sort to great. billion investments a partner? their is is that interest joint venture do of And the anything guidance on and share updated to scale acquisitions NSA Is

something our all we balance who If open when assumes interested, may a sheet. Yeah, that the we investors keep be are we in it and and balance it. would sheet, under move range time that assumes come circumstances. it doing strategic guidance we would definitely on open, a sense, makes with yes, the all conversations right door was on And, to and interested with have JV be partner now there right

Okay, all right. you. Thank

Citi. proceed. Rose next Please is Smedes from Our question with

understand Hi, kind in I just market. to what mentioned the the just cap other seem that wanted thanks. more someone opportunities rates than a acquisition to guess little higher seeing for I we're of

be You get that's sort your market sell just pipeline. like able to rates? process? are someone of lower at kind why captive at because your mentioned through I'm It's a wondering, seems outside these you pipeline, of two-thirds someone they'd rate guess stuff I maybe you to where it -- When to cap of it get broker are a of else trying off about selling relationship talking you're just outside just driven? Or [multiple more of speakers]. right, to sort is captive and

So so first basically my half, million. I think $XX two-thirds the includes

great driven a that’s that single was the And OP about big relationship we're in having talking you number. said So every Smedes still of of a when case, any I anything that, the money, one case, equity. amount would all seller question, in and tell I in is interested it it's but

and equity. are seller relationships, ability long-term willingness work with and relationships, And our the so to and issuance of and these between the our OP

But you're seller marketed fully the a bit I think think was have right, might us if give little did I deal, of money a on table. it it left an it advantage.

done good they tonight. okay. at they've However, stuck think a price I got And

from other then an to quarter. about like uptick development talked are But remarks, ask draw that more Is expecting thing guys like whole fundamentals because last And wanted you've I hasn't just the you like Okay. development it feel opening strong, it coming, I sounds and clarify maybe lot sounds activity you think the in in your to a will are it what space? changed that? development development? you you is the starting rumblings just of wanted new to see here in to that Are you,

stay way. same pros specifically a all know primarily seeing that the today, close ground, data are little we also think are comments Yardie, real to maybe they very what's we conversations because which more you of our are that who anything that very the them guys I in of it sources, and bit our and and having a it's on probably other have that benefit they on on, anecdotal. say They're of it, see, with handful and they going a from comes based wouldn't affects I the from

even that cost well we I a slow that products which think it's And entitlement the I think itself, down more process So think is what so shortage and of sector what on and will over long form the products, availability building our those time. that this very beyond nature, then the the of but months of has facts takes the opinions and based that, we're labor. the last it XX than But performed also hearing. human so I building

So think it again. is than near it's that XXXX. timing But will the that And sense term. end don't threat. maybe little XXXX? the happening happen A an question But of I later think really it's is don't common see it I imminent just that? it Maybe we

Great.

Okay, thank you.

from is America. Bank question Rodriguez proceed. next Our with Elvis of Please

congrats for And the quarter. taking the on question. Hi, thanks

do pressures labor in expect you're And you increases maybe payroll mentioned more in on ground going remarks. particular, your the opening exceed on a in markets? seeing payroll continue what you You pressures Can little to forward? bit and inflation to the comment

labor the Certainly question. Great tight. is market

performance. on And the great to has so that played more payroll of little also our a employees is, clarity part uptake for payroll incentives

bit our trying right team rate doing the market, tight a like the overtime, find don't the go. seeing our the market can look I from than paths country. best at pressure obviously, been creating to wages and we're sure and a place it systems our revenue you little in our But a we this attract handful our different soon incentive democrats store And guess, now changes the business. it's and really obviously, at as pressure, been. metrics tougher pros operations to members good of point, that efficiencies the and that there we'll I levels overall, level right ever But labor within strong our is and right certain And of minimum all anytime things and labor to it's has of find do best do be raising the job and right to to I feel states so think around, best we affect for teams to we for maybe throughout if manage that at are keep the levels to was how we across easing staffing and are and ourselves see in our make culture we've done weight attract our if navigated team members But look doing operations as people high.

sub-markets? bigger sort technology, in Great, of it could labor of and your changing might share scale you individual or helpful? can thank in But be to mix something individual this Or Thanks. with you're each anything the improve? is more with operating to just just expenses. you're you pros, other how safe-store to you. continue doing managing stores be margins get follow-up, a Is as And and having connection your in that function

question. great Yes,

combination of I think lot it's of those things. a

our platform a And really hours, we will us at occupancy approaching I With they hours we open. consumer there's customer staff, so how opportunity and had look growth maybe to center work allows how rate levels our on technology way to upgraded rental your to margins. well. at the want rentals get stores, we application are to and high that in tremendous are will certainly as XX%, we there behind help online recently your looking do that mean service how certainly, better transact. transact So many help technology, we've margins, with an the the look office that at call

that play are So here. I think it's a handful of in a lot of things

Thank you.

from Morgan Please proceed. with is question Ronald next Kamdem, Stanley. Our

just acquisition theme. think me I quick the on questions two sticking Yes, for

to if So And sort guidance, to looking previous be? should think you billion it can would you a a over are the at that the of the to sort time was, that question, three back next the is deals looking one like, mindful be what we of would more a Are the pipeline at that year this look $X.XX give I year there's sense billion? which XX in really of you be two five? of? billion sort years, this us bigger able at Or just $X.XX at midpoint close I sustainable? of look Is of we're you thinking total about to at

We look portfolio -- major think that I every you, hits tell the at will I the that Ron, questions. thanks for market.

it's what an don't get think portfolios of at the interesting how – And looked X end would much least really, right A -- know, of when happen, We have be next to this impossible sight, billion your billion. so $XX seen, better XX I continue going at what's you and probably lot valued question, you line think billion? this is XX in predict. one, in But to the It so months. is will answer industry. bit I remains to phase now, this and at, every the two call, we to well, to three, at we of truly to again, to February, consolidation predict. it impossible years, do next four Dave, And $XX $X.X have two, is into guess a

We've and see plus expecting know XX%. I becomes it number how or has next I think how does been a And six or talking because long there just this the on that well yet, it'll and and acquisition Brandon, go of for the yesterday don't the we're does the numbers been in we historically our on consolidated the become? United how inside to a while. number sector over maybe haircut States, be so the the historically, answer that just talked self-storage talked over assets assets non-institutional in that -- to grade view something out we've let's rolls was like just XX,XXX interesting say in months five and top has States, XX,XXX XX%, a it year, that. it's the about. for Dave about about facilities if take of United piece I this

will our something watching be I So, and think it's a black it's to a to don't monitoring that. and a to we're And very objective answer, we're certainly good well have and don't be I -- but question. remain certainly I set relevant. do that going have white

a because activity. portfolios stay we the have we've you of smaller I active, activity, we that transacted XXXX and through forward wouldn't things of a really at of all portfolio and couple touched acquisition have look I about add in been at I that think this it's would very think I amount would not the you maybe our on I think year. always something. amount of we even us think one-off done as and the portfolios beyond, thought transacted acquisition the have activity if and But one-off do, relationships and I and our There helps look

tackling. The point, and to the blocking back

Ronald. lost We you

Stein [Operator instructions] with next Kevin from Stifel. Please question Our is proceed.

wondering, one Good morning, guys. it's your a the markets. And really quite for like it's also I markets. had on was it's the of bit development well, last Portland's been just doing performing But top few larger quarters. it's

it development demand because your so story? So near is is why wondering well? Is Thanks. I just Or portfolio was it so your just doing is strong? isn't

better of in Certainly We new that's on. certainly have and has the most have of helped Yes, a gone Portland market. new the great challenging A market of lot question. is market things talk help remains success. Portland the market all about demand in Portland, supply the couple the -- amount the our with that market still self-storage

done to implementing think wonderful Portland attraction that really in great has customer we they've job. acquisitions. that the think it done And there competitive a strategies market. good and And I up their a performance. repositioning And need themselves in of around think they've I discounting job in think up, a done team I job and in call shows I pricing,

our about by X%. you really average still look Portland's portfolio it, at trailing If so accuracy

still it seems you there. you there's can to there, where as migration still moving around see remains pressure new supply a whole, Oregon been can has see the So Oregon.

exceptionally to Oregon Portland, really, But, answer to well. get if -- so done outside is really look And you of your question. back

the better helping certainly the factors is suppliers. think doing with a I all and job demand team the despite

Thanks. Okay.

Ronald have do back. We

him. back So to right we'll jump

Sorry about that.

of looking was the And reason I incentive peers give at Just a lot if wages expenses because bit. special is just the of think the little XXXX. question asked sort a second I in either increase

increased the curious may penetration down. high, with three, are is E-rentals, tax XXXX, five really, because need is expense but a you Thanks. the just how pretty or marketing that I down years So thinking savings down, opportunities, it's four they are. were that property it's sorted as the road guess, you're about in not Granted expenses actually of thinking obviously, But there what down whether question whether you of expenses guys pike? occupancy? the expenses margins already potential opportunities expenses

and think technology Ron. about a can, we're to costs. you how platform is are question, months the the I maybe take platforms still we new and old. that I make continue around and with always revenue us platform that, online management thinking is online platform, touched revenue increase see customer some Great we stores, management that few opportunity rental, only presence, overall if personnel and And us, on XX for obviously, it acquisition and may do better, of Certainly them rental mean, to our really,

and am efficiencies, expenses updated. really I our has and growth possible been. think on where this very can growth efficient, our done And margin teams and where ways maintain look we all and efficiencies team good I corporate continually year, our platform, Our really a had and customer with there, of what operating acquisition do find pros drive down being their revenues. pleased focusing has or we've on really good to be at job overall drive there's really margin

all lot at run our not in we do like we're think organization. organization in a there's It's think very lean. an around properties hanging fat I our those of I looking things. So around

to we'll do our them. efficiencies those So best and implement find

Great, thank you.

you. Thank

Our Golladay Wes Please with proceed. next question Baird. is from

everyone. Hello,

more drivers the in or demand move little So lack is average of is the occupancy driven movements dig want a a levels I of to bit into turn the it outs? by mainly above the

rental its I elevated vigorous, really lack muted are majority move of volumes but it's the levels. out volume would our that Good outs, that's question. of really move say the occupancy

and us at X% lease Okay. look how that I now we stabilized deals. long guess take to And Can lease up that to get to typically up the remind you those where deal? is when then

months, I certainly XX in to leased maybe certainly to schedule tightened the seeing the mean, maybe XX months with or going lease Yes, up would that's properties on, XX now. that we're XX demand

we're a of it place, on the it Most quicker where So working occupancy and what the back up those, it. rate getting seeing we're a in of should lot certainly side we're purchasing what of has physical be. is

or need physical build buying two. now burn it where occupancy be. our we And to rate really stable we the we're getting that on look be most So needs the but us, to work stuff and for high of by year to at that very to get the discounts off quick, stuff levels, will

the just I assets we're the, stabilized is to the was in yields occupancy And at estimated classifying on and average assets. about the X%. add would non the non-stable that And range mid what those XX% is stabilized

Great, thanks for the time.

a Neil proceed. have with We question follow-up now One, please from Capital Malkin

Dave, in-place the Thanks, renewals. everyone. the from customer a on just question benefit

eligible outs that people taking the So churn are quarter And them. for obviously, more more means of lower, because move is population month, are lower now every renewal every increases.

COVID? if of below you to what maybe you potential about eligible just how you kind talk on quarterly from or sort Thanks. for a portfolio What pre can customers, And the lease, market, that the sort far of above like is will, the how can renewal push. like, increase much it existing So of is renewal a loss more looks to rents of get just sense your almost for that like? how versus

a great lot Yes, to questions, unpack there.

all, to now. somebody right have in that. bullish We coming in tenants X.X% and new about door. we're improvement And had the a far a of frequently. be ability as out, them replacing October, want around is giving to we So, positive place on do as move the which actually were case harder certainly a through what right a roll assertive push the rent we we're on first up place, to be in haven’t now more good really And in to we us tenant around at were we're opportunity

some probably And through this average you're we've about, than point replacement lifecycle rate to of our low ways probably talk that X.X% of some would a you've that the if frequency increased is going we normally of are me double And doing, more maximize year. caps, -- be really the low place of digit on at probably the norm think more We removing this before talked month of time particularly we So per maybe months, increases, heard of is shifted what tenant. with increases efficiently single program? time -- be on as seen what tenants we this average change in that rent do time. how removing about, of we about to XX in us getting

see was, some near coastal Last you thing have to these windfall had pretty your fruition? of those moratoriums seeing are portfolio, to if or sooner shorter markets the come sizable, in term Coast yes. West Okay, in be than expiring, to do could been out play eviction continue in expect particular I or And some or you evictions, some others. which

for that's Certainly, anytime transition. I see, a having create opportunity our need people in transition, space. were you we will great have And think going to

pull now we're out you thing the think the is is, I interesting mentioned West Coast, there, everyone. as fairly

I And that street these on time. a the think, can in the so, is folks be I areas. challenging that for pretty But, rates. continue will very getting on evicted, obviously, the think, fact it's fact that are to we storage I be assertive lean to think probably help going And space some of

opportunities our what create do will do we we normally need we'll it look what certainly but there, we'll do certainly, and at So transition. -- to do Yes. we do,

guys. thank Okay, you

proceed. question a with do up Rose from We Citi. Smedes have follow Please

ask that talked good a just of annually you, in just is next metric to about sort acquisition think model you've think XX% to I of wanted metric Hi, going as the I forward about past, about for year? we enterprise at about targets value, still

a great question Smedes. That's

say it about is continue enterprise yes, add, have like it. we of about the said historically, think that's that total that value average, about certainly would something But we have year-over-year. to one should that we on the talked thing how to I historically. is I think acquire way I will is I'd that XX% our think And that

like. And a so will that, not to we and what predict today, hit XXXX years, it's here and some some will look sitting will years hard little we is

I as a I think goal been of hold part big ours, to year. average the a it we focus on year such still this it's out of that but am going since

Brandon. is this Smedes, Yes,

of I one what of more growth. with of FFO like year, the is unique, it's XXXX Just things line year on half doing our much so terms mean, this that. per a weighted, will obviously bottom back that obviously than XXXX so like share we're in serves core it and

Since not modeling the XXX in as the QX million me September what the of the you quarter that And in what it on vast XX another QX we that year. full that's million that. over month So the year. just QX, just we're into serving $XXX in year, mentioned benefit much maybe helps getting have and that just was obviously that way we'll think of we're what's that calendar the September, of of not of next us the year point a majority we this said doing not and was of is a back around I into about specifically, think color but month, next half of bid about in

Appreciated. Thank you.

Thank Yes. you.

end like call We over have our would and I turn Tamara Fisher the the to closing question for back session, to reached of answer remarks.

self-storage. you pros next to our key also team it's interest of again week again members in efforts our We in joining as a for whose with are said, NSA. leading Thanks. thanks have for reiterate sector rate. call our I'll many to forward results. many time during in great connecting NSA, once and be our support And day Thanks and of look to your to delivering

you. This today's conclude conference. Thank does

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