National Storage Affiliates Trust (NSA) 6 Aug 222022 Q2 Earnings call transcript

Greetings, and welcome to the National Storage Affiliates Second Quarter 2022 Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] As a reminder this conference is being recorded. It is now my pleasure to introduce your host, George Hoglund, Vice President of Investor Relations for National Storage Affiliates. Thank you. Mr. begin. may you Hoglund,

thank XXXX joining National Earnings Trust. to the Storage today second quarter Conference you like us for for Affiliates We'd Call of

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

questions management then your return more queue you one prepared to Please remarks, registered questions. analysts. one have accept the will Following question from and questions financial limit to and follow-up if

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

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

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

of same-store call XX.X% with great FFO in George per share growth and growth our and today. had We another thanks, XX.X%. quarter Thanks, for everyone core of NOI joining

given of exceptional permits well, second adjust monthly to driven well our structure demand on differentiated countercyclical that Our a share, average the increase growth results XX% suburban to playing according expected weathered by quarter $X.XX in to rents market this This over side. by as the and to trends sector The has levels last positioned healthy, dividend month-to-month industry, inflationary self-storage the markets. small past relocations. disposable is meet second our ongoing I is are to as for a year. off secondary contraction on the quarter household inflationary industry rents growth. the supported of have this us historic But are offset increase Overall, of self-storage and customer's Sunbelt with necessity-based units today's very pressures allowed rents demand a we increase is the factors unique in PRO needs-based out environment, that add a our growth our basis, year-over-year represent and again demand exposure to Because an coming of the we to quickly moderation portion our leased flexibility income. the downturns expense self-storage would including that largely self-storage fundamentals remain strength Board and reflective year. per of

two Following crisis, ahead financial levels the pre-recession to other of revenues return same-store types. within years, great self-storage a saw property well

in said PRO results don't Finally, year-to-date remain demonstrated price outstanding NSA's manifest as our our a sell-off. resilience benefits by we very and and share our that, given sector confident prospects. exposure, structure the rising the of geographic future the in of Having always differentiated themselves the

Based compelling capital allocation investment in So flexibility strategies. in repurchase decided on our provide today's place to outlook with put to plan for Board NSA, us favorable our price a our a opportunity. provides depressed share greater stock has

environment. acquisition the to Turning

acquired call, owned for million. stabilized million we mentioned last joint portfolio, of one And strategically X.X%. wholly an $XXX a we cap second properties, ventures at quarter, MSA on rate Houston acquired seven the the located our in investing $XXX During approximately of partially property as average our eight

time we've pool self-storage buyer retrade price remain coming capital seeing pricing current be realistic buyers we've increasing financing. We're acquired While for of with we've Subsequent expectations, properties when to six we're to to demand of more expectations. what recent than out strong, $XX respect quarter pulled by deals valued narrow some given and market seen and in active. sellers being somewhat investor remains for encouraged to able being the pipeline and and the with volatile the to deals million the the transactions, past more backing are Overall, realistic more a environment. few attractive and number becoming not deals seen by end, property properties the at secure seems

as operations largely maintained last out elaborate in talk played and share quarter second which quarter. I'll comments. when technology core contemplated guidance FFO the strategic new the we couple XX% guidance, guidance current our on per have Dave? at discuss further implies to underway. over initiatives a raised full The his year about midpoint. now to turn will call growth Brandon we and We've of trends Dave

Thanks, Tammy.

were by line by platform, improving to continuously this in increased operating margin operating results strength our healthy which X.X% continued driven same-store quarter our with Our in XX.X%. self-storage gross fundamentals

year, continue season X.X% spring last Second expenses. in We occupancy a leasing momentum quarter our and management healthy our pleased growth. increased combined practices. in with same-store by to NOI operating to increase, leverage increase XX.X% ability rate We revenue with a driven with revenue property were the ended over XX.X%

higher growth, also this quarter quarter earlier. contact almost was averaging last experienced to Our versus during period XX% second XX% up rate compared a rates year second year Street the the same the strong growth double-digit in with year. rates

steady focus low increases in average mid-teens. on to to customers rent Our in-place held

end the in during Discounting the by the by of average that lower remained length occupancy remained the the previous bit was stable are averages pleased that quarter. offset of well months. Robust XX was We concessions at below slightly growth rates than quarter. year a historical stay and

quarter basis occupancy, philosophy continuing manage down revenue long-term is Of do which for optimize to XX course, but last XX.X% over ended to our speaks to points of occupancy with same-store In-store prior the down the quarter. second pace. of this XX.X%, We compared basis sequentially the occupancy basis this first that the XX record-setting year. rather from the points up year to end at growth not we points and XXX quarter, a averaged

more As last on call, become our comps year's we discussed last strong second in half. the challenging

growth historical levels sector moderate, settle a few historical of our we want still trends. take into is follow we minutes initiatives forward. And enjoyed storage continue the year-over-year expect to averages. highlight that some the whole to occupancy So I occupancy rate will has expect revenue above while pandemic-driven to think XXs, think support our seasonal We the will robust which going we low contract growth while demand, to likely to

on focused the on on learning increasing our improve front-end enhancement Our maximizing allows building remain CMS more pricing dynamic changed A revenues. call be Overall, really see team to a new I'll as somewhat focused coming while a financial Brandon the muted balance competitive overall as we much. to now enhance our levels in our more over detail results relatively landscape of driving provide of capabilities, We're customer customer acquisition center online comment to conversion are our We in machine the is we muted by sheet leasing to to supply program committed customer net AI call and improving initiatives us as to on quick also increased better hasn't our traffic capabilities, our positive. new platforms. these turn which in rates. remains experience, supply which excited activity. continue and about IPRC

Thank over prior continued you, afternoon, we driven year-over-year growth year reported represents period. This XX% Dave. which robust a of for past the growth of XXXX, quarters. quarter was acquisition the core FFO $X.XX second per four and of of our by combination over the significant strong increase an same-store volume Yesterday share

Our a that same-store sixth record NOI we growth. second quarter represented achieved double-digit consecutive results quarter

pool. by and for eligible to will inclusion we're very were approximately XX% XXXX. in outperformance in same-store our be which mostly non-same-store wholly acquired for is the owned Additionally, And of encouraged XXXX relative in our properties, these underwriting beginning portfolio

that self-storage Regarding in operating as surprising. economy, significant of are which well quarter of we're inflationary across our neither second X.X%, pressures reflected values, increases seeing as property expenses, the growth

line construction in XX.X% increase a attributable with and The second the is primarily prior an increase staffing costs Repairs with due XX.X% in and mostly by to materials. utilities. increase OpEx costs in labor driven taxes, our offset markets increases these We properties. personnel maintenance partially year, in efficiencies property in same-store quarter in were grew growth Indiana our and reflecting and that Georgia with to greater to Texas, for able were XX.X%,

and our property benefited also grew pricing We on a X.X%. insurance marketing year expenses from modest this better

sheet. balance the to Turning

seven-year Agency of the debt a issued our targeted low net At X.X spread BBB+ million the with we interest Also flat. X.XX% X.X The to equity closed term at acquisitions our quarter to and of rate a quarter, quarter, end was range the effective to BBB rating the times. During towards on from X.X conjunction $XX unsecured million in credit XX. Rating to variable our Bond Kroll of was a OP loan partnership operating SOFR. end on with times upgraded leverage during June EBITDA rate based of $XXX

$XXX of maintaining access debt the sources comfortable year subject variable end balance to committed capital. principal and with our exposure to a multiple profile of sheet, of leverage on We're and with to maturities at revolver of conservative million availability the quarter are very no rate We through XX% the just our end. healthy

line become of Consistent growth with the guidance. Results second comps in last in Now year, more last on as the expect to the moving expectations. we second were half our challenging. with year's levels quarter largely commentary for lower quarter,

XX%, of maintained few remains soft $X.XX from year in in call and well we represents Same-store above XX% landing. prior are historical moderation revenue outlined of record the we release. NOI midpoint our today. such, include XX% that of growth at of XX%. guidance our of growth joining core Thanks XXXX FFO to As per again, earnings to for year. and $X.XX detail growth A share the still recent NOI but over full Same-store for is which moderating pace suggests which to our that growth highlights levels, the a headed averages the we XX%

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

begin your will Instructions] we Thank time question question question-and-answer Evercore ISI. you. the first Please proceed the Samir of Khanal this line with session from Our comes At [Operator with

I year end to Hi, walk with think half little you're of occupancy, about about bit occupancy. a sort assumptions here, growth of everybody. the back through you talked your How you the rate XXXX? how start maybe the us we but year? thinking morning, good around Brandon, as know about

for return Yes. to the Samir, thanks mentioned, Dave expect we question. seasonality. Like

XXX points. maybe two that, at year from the -- now the prior year So it XXX have down deceleration would right to basis the occupancy. If year to point of XXX also on basis end about see to we of end sequentially from us the

Okay. could upside, that in at I sort of on then you rates are And this the area feel the an like of second this guess think max that's do point, or you ECRIs, half to pushing of year? we see

being increase. assertive bit the rate May expecting. early second month what of question, second we We're was Good pushed certainly actually really percentage little we we frequency it's to still the very hardest. occupancy led that pushed, Samir, were in we more probably and the is more had think quarter, In probably in tenants than Dave. of historically than where decline in a the quarter, was pushed It and the we

rate happy amount so the to we to. the happy push, increases of more tenants certainly but with results, just move-outs And that were created pushed with we due the it

the keep pace half the street grew and going where we the we're there certainly strategy. assertive it. look we And at discount well. the the for we street and changing rate is at be second we We back at can were discounting assertive, as say, not to then how perspective ECRIs. we're So looking also be looking were levers our year, the piece rate through to look in as at quarter pretty of We're street we're stingy quarter can a as around, we from occupancy of certainly other second as far rates and on

going So are tenant all levers, we're out balance asserted. in-place still where pretty to stay to but want find those trying changes land, to we

would is And I Hi, is I thing, add Tammy. the guess -- Samir. only this

but us occupancy, As optimize Dave historically have remarks, remains rather of to in his commented managed we revenue kind And that to as key well. managed not focus a growth. for

second up, so, we're And of where I the the end with we think quarter. good ended at

me are there mean a you a Got slowing it. expected, any guess points in help raising guidance follow-up, giving you seeing you Are And the little was sort than here, more kind Portland? which you -- I in in highest held then bit a caution? about markets from probably through of XQ. that your as first shift guess more all the you behavior bit of by I went customer are think quarter, peers, XXX I basis steady in of but maybe just

just of the in through So me -- here of terms -- that's kind thinking walk to case. of, if -- cautious trying sort the your being for

May What Dave. lots Brandon, activity, I'll very We're robust. the very think From then bit amount do can is, touches I little opportunity. a and consumer the just start we've still little get top to in. pattern, a of and of couple seeing funnel conversion. really jump This lots to is of had July, seen is the in the months, of recent around you in bit of June the change probably

maybe the it were customer, converted at and X they gone now that's X.X they if was So maybe or looked X.X. two they -- to you maybe times,

happy in consumer, maybe a I of maybe a bit, the with they're stingy with spend. Maybe amount touches, of with we're of getting amount bit the they're touch pricing. little that quarter, discounts we're little with more We're driving. so looking us little costing And as second happy and volume a for us And more points the bit the we're it's said around discount pretty more. were which tells And we in a shopping

that that's we be But So and created some giving ourselves, that weren't a one we pattern. fact the discount. might of

really really three You up pandemic revenue. the a lot four changes competitive platform can until there, Northwest those through see, months. coming Portland, previous on couple of about a of grew the first occupancy. The on and And Portland, market. in number worked talking and most masked, a through we happened our as back months of We with a We competitive of worked with occupancy the Portland, changes. focused transition year spent years. of certainly the mentioned and competitive really Portland. of focusing retired because and now. a in is for PRO the from -- We've And spent now pressures. adjustments those working we're team, been pressures first There's lot Portland, things our into We you us. we competition on lot the of or really

just so working it. for we're been particularly. headed with, a a And that we're Portland, with it's and comfortable little of We're bit it's market transition way through us. And our very it's not where Northwest

there. lot It's properties on of up from an that a the new say, that there. think those challenged of, through absorbing that the as And I new I'd eye thing but said, we most I it's standpoint. we're keeping supply we guess, is probably did as was other the of have And market a Dave pandemic, and to still be aware still our have benefit supply run something

you. Thank

with from question of Ki with your proceed Bin line the Securities. Kim Truist comes next Please question. Our

Can XQ Hi. a of talk the street rates July Good you progressed update? that you and and in about maybe cadence the how that afternoon. saw

it's Yeah. street joining rates. Good through Bin. saw Dave. Thanks Ki a the question, in quarter We for progression

again street in month. with. comp we the sequential July with as So obviously, saw July, it every growth through In We've into rate entire year-over-year And year. the happy we're saw well. XX% had sequential growth growth we

rates through rates with also our all growth we're the the contract. saw July. are include into So in quarter going that happy where would way We sequential and street contract

positive time well. fronts as like at roll-up, rent this in something both in a is which So point we still We're happy.

For five right? straight, quarters

Five yeah. straight, quarters

want So to that. clarify just

you about think year-over-year? that – were Do you You I talking sequential. have

is Ki Brandon. Yeah. Bin, this

was So XX% down the street from QX over Dave the up teens were bit rates prior in QX, number. that year earlier mentioned July a so in little low

that and then didn't Our street right year. peaked the much year, rates the last through year this balance sequentially of of grow time really the around

comp is the So the of through – part was comp worst now. really the

that's spread. if the But low rates year. on have So here the I we go from similar where end that obviously would would things double-digit of dependent expect to static stayed street

up in obviously, strongly up street are you're very XQ. So low rates in July, teens

growth. half You're seeing I in are funnel of showing a good. still bit people I'm because good comparing rent that second top cheek into half. for more. say demand have little stronger saying outlook. little would tongue would about might that, the guys think being second just you very you your I talking little translate shopping some a Maybe you're bit relative bit And be better a low roll-up of to a of a that, the perhaps peers outlook obviously,

am So, I'm just I missing curious like what here?

rate start the piece I then I'll Brandon jump the we we off think, think through of a bit than will and think increase as occupancy play that pushed number occupancy were – a little of second we can rates in we in. comps of expecting. Certainly, came month I it. a as we we But and the quarter I that at May looked we more drop on pushed pushed

I fundamentals the stack of up think rest all well. those

year. loss Bin do the help as quarter think us looking the that decline quarter, and at that that this to you into some drive don't how we have offset experienced occupancy I of much drive continue that occupancy go Typically, rate Ki in we rate we conversion third to a we second that in of we're had. the

or below your question, competitive the competitors competitive your And your local are rents compare in set rates your competitive you you to at with above? kind it or of areas when just look and last on average

rate where our the very most very third, store. to the But operators leader upper We the obviously we There of in typically are haven't specific. store are markets we edge around, certain want if upper – are that particular certainly market. I we're in we are considerably that at situations, level there in above that certain level but Yeah. rate. a look very ventured not yet, And it at at

you. Thank Okay.

you. Thank

with next Jeff Spector Our with line of from question Bank Please comes of the America. question. proceed your

Lizzie deals on You were what in This wanted past of Jeff. number the Dugan into you acquisitions guidance yet I by you've and deal the you seeing or market ask on for more range. to the quarter? encouraged is mentioned, seen flow the traded just [ph] coming deals about, maintain

wanted guidance or all still conversations I seen you've your see behind if maintaining change those So sellers? to if assumptions with you're just a in

yes. I'd say, solid. is It's The deal flow strong.

look with frankly, continue We will at that, that cost every higher everyone's pricing while an second somewhat. catch a to I would I with widen there's It's say our up the this we I say say expectation seller reality. – expectations it to for continue widen cap of them that guess I'd in transaction. environment in buyer rates seller, And will takes – pool did this and capital. to see narrowed quarter.

thought apart. by encouraged fell But seen some right We have done basically completely we're we're get that we pulled. deals what now, seen And deals were some that we've seeing.

We go will investment underwrite there. our meets we'll and continue from to that primary everything criteria

$XXX about we we thing, I $XX capital of would transaction that our on to deployed involved is that the point maintained out I million think probably you April part. our in closed million guidance. JV One

deployed to reasonable. million range still about $XXX that million capital when so I seems And $XXX of think total

above midpoint and the expectations. be the terms end, range the towards the revised obviously probably what do and but we'll of buyer think think standpoint, realistic still we're my assets quality or the We like the range. top of I from more in hopefully, in is seeing I good. And

your earlier last? income you. wanted Thank by did Is that versus really of late the particular signs on or there weakness I was -- all quarter level any at market. Great. to in secondary different follow-up regions And any trend fees posts customer question sign just any for Okay. on example? by this How

Dave. is This question. Good

same. and markets and It's our -- we're piece way is continue all And real to Certainly, be buckets get The seem of store you of payment seasonal come well collections will seen think all buckets and very will across bad our bad that's stores bad But trends our all programs types. level trends across for changes of as activity more debt still into and differences any more historical types tame. and haven't up. important note. discernible same to of the our I normal delinquent markets. and within It's the more rate levels. applying averages and But sector market We debt rise. below the similar to historic -- debt the back the the rate are

change So we're that either. activity not in seeing any

So..

growth we're to going And thing to in question. in only Lizzy, about this is was to QX the as seeing others markets But quarters you more markets was is Portland for pace question terms markets QX the in about on mentioned revenue, for secondary Those saw certain where this add Brandon. Portland being and specific from deceleration the at all the to another. Sarasota with not supply. of would The are talked biggest back you the several I decel your top-line where markets was look we've just another. relative challenged one, what the of if now you Phoenix

like in a a markets had going had bit benefit. fees admin year the of have But starting that months this ago the also occupancy those the gain associated we to to a are occupancy was things we're because softness. numbers ago with some to those ago a -- that leasing XX see the And in that year the process we're so also of markets not that the little we And that initial gain upfront year. had you are

growth changes. sequential plays of So some that also into the

the for Okay. color. Thanks

Thank you.

Thank you.

question One Our Capital with with Malkin Neil Securities. comes proceed of Please question. the your line from next

time. everyone. afternoon, the Good for Thank you

have terms of sold hitting how heard the most have tertiary two that again markets the bigger assets time deals, multiple also one-off harder We've on at been -- up acquisition financing one things having Tammy secondary seen assets. And First, versus the cap one -- that topic. a and kind at we rate are bigger have define just time heard tertiary same attractive lining chunks, significantly we've expansion.

two just be how to ability aggressive? things can where heretofore that previous for compete levered access just you to and given about and setup those So a -- potentially potentially is would your you capital favorable buyers talk

we've the you I'll buyers start seen Neil. Thank the Yes. question. Sure. retreated part has just seen anymore. being that have question, with deals related second the debt say we coming away apart cheap that directly I to falling on those to or your for somewhat. levered available been will of which either obviously buyers who extent not counting that are really is And

wider. it always of as the relates I years. rates pretty in a fast past been that and couple markets we're market rates always secondary I of amount the As don't spread secondary and focused to cap quite between those true -- been have as -- of secondary over rates with Sunbelt markets. markets widening it's would those the a cap and has are and much be certainly you acceptance there say primary quite that become markets to have more rates attractive those because seen cap think been cap We've significant are markets where honest those interest that suburban

secondary a and suburban are preferred still our markets. we're and that so think Sunbelt opportunities. because considered seeing attractive our capital excess And good I to to often those we buyer demonstrated, of kind of, solid commitment And

outbid Are the a all-cash had seeing deals. buyer to mean difficulty again in then that about larger portfolio deals you one cash to you least for it ability I here, but bigger? maybe and acquire then any part getting not there capital -- And be mostly like and can are Okay. an backdrop? a lending despite out difficult bit be sorry on little at in come -- comment but more buyer you looks on the there

Yes.

Sorry, over that. brushed if I

No, problem.

who go yes, otherwise seen would are $XXX definitely examples. of up thought into no true. area a prices where in And to thing. $XXX a we that would portfolio chance. of most our But in we sure right have plus not bidding examples invest that on There fallen enough we valued the be few places handful there's portfolios away. extremely have But we would driving say I detail. butter we bread fact in million a a We're competitive can't million get final. definitely call And never few buyers end and We it and have we of have landing and this is assets

So, from in the that's of we year us probably gives I that targets this better -- think our that optimism standpoint our the about where hit have what to we ability and part acquisitions.

-- to in not is or other horse of like that market. with happen back of guidance about not that occupancy? of to dropping the terms And right? terms it almost occupancy is like forward Because beat pulled bit seasonality your coming Okay. something I continuing in problem the in that I that all Roll-ups And one reason really you that be dead to strong. tougher. and not you've of kind with a But from elevated the quarter for kind it comps it square accelerating a COVID historically -- occupancy but unchanged? positive -- quarter trying commentary like down looks that well made? normalization ECRI again Are understand can of doing the make long-term. is it is kind kind mean you mean with just still the is know this impressive -- demand an rates, of I seasonally seeing just secondary the more to is are is a the little sustainable particularly worried it's was are you guidance did levels the the street sounds

main So the hit the if time uncertain otherwise an we there is in about you maybe seasonality? be great. it could caution talk inflection -- in driver just would I guess that as exercising also

end this that start. Neil, our Tammy. out the of question. exceptionally the Dave one thing if But quarter point we -- would the with question. when get tried is to for guidance would part I'll we is the be every from Thanks And probably back better in I But updated guidance So, single it be earnings answer for updating at we it's that will of us the first are the QX to standpoint, my where release can not place a our realistic. quarter. substance we

trying realistic and are on and line. put we there to it very all the be So, out

I that we So, think that. did

feel we good I think about it.

just your and occupancy Dave level can kind to the set on other question. so I'd that's that. comment of the parts And guidance certainly how But on

Thanks Neil.

accelerated more normal would I than think example. as hard the for normally rate occupancy of the actually anticipated. we just to that think push I anything the extremely I the times two pushed your we a in we than that be accelerated stronger what think -- May if more I it quarter. an we said normally than occupancy And pushed month earlier don't point decline in don't shift think we would seasonality

think did we on occupancy little things a with with more what pleased pleased doing for just of is it. put the put we're There's pressure lot we on. it on focus pleased the it. it we're but on where focus I pressure We're with results. it of But which we're certainly going us. some things doing We're one backing not generated away from. which We're what a

you change And so IPRC. around saw the think that's I was

Thank Okay. you guys.

Thank it. you. Appreciate

comes your from question Capital Thomas Please question. Markets. of Todd with KeyBanc proceed next with Our the line

there. out morning Good thanks. Hi

opportunities of prepared your like still there's seeing market And in opportunities to of shares? First just acquisition and expect remarks question, flow the about well. there some that we the you as context wanted in up How touch sort staying in the active where see you're your share the some those rank follow should repurchasing just sounds would Tammy, comments company on to opportunities on it deal today? buybacks order I and

I Board But you capital value that. and a shareholders. Todd all evaluation down if are think deals be I our that is for our our if with our our shares, accretive of are going will forward that think repurchase making a would to of of comes supportive investment clearly best on whether deployment better to acquisitions it it an creating depends And at of opportunity return better a our long-term opportunities. capital deploy

that with our being job the it's I of be as strategically So, we've for to what not think super and benefit a long-term that consistent accretively -- is answer, may invest discussed shareholders. our satisfying value but for

stimulate Dave June on be little in based little than or or little much rent And in may related of I bit to was occupancy the maybe the to or understand specifically. maximizing I'm more that earlier through on on passing May ECRIs It order your that just expected. some to increases so sounds rents that But asking the just that you of year. and you're was to a implemented sort a of more it's back about curious some the Okay. bit not you revenue, were then a bit plan lost the to it back the in pull a comments, little increases occupancy of some if a bit of focus rate do rate magnitude extent demand. sort like

Yeah.

of were the all we I at evaluating conversion away ratios going stingy focus dynamic discounting. marketing the good on certainly, we're conversion look to around the want, discounting a though. in think focus a from focus getting stingy around the pricing I We'll We'll think we that. as we're don't upfront rate. our on pushing little more spend. and IPRC question. We're used ratios. we the pricing it's on word I And think table really, I around

frequency our I think with we're We're comfortable comfortable and cadence. amounts. the the with

focus on. is to the focus So on we'll more rentals we're going what

last conditions just were more I supply comments or been the new it's a way recently, delivered mentioned little there's Are and supply one was last supply really absorbed new you market. to delivered around that to that somewhat activities that quickly if a little more that some on maybe where bit maybe of that space that rental your that little Related impacted ask pre-pandemic where two then bit years, that's is normalizing? of during And there now was one but the up a around bit is in as operating Portland sort catching had Okay. -- due hangover like could a a just Portland.

show oversupply I in think seven, years' you're the of pre-pandemic. were think certainly oversupply that effect conditions just of point it's worth Nothing Portland now eight up. pandemic cooling it's we a real At to that far new pre-existing and bit back that and starting mean talking it in are I little time, muted right. the was that about just as absorbed and back one as I off half, overbuilding, stuff.

Okay. All right. That’s helpful. Thank you.

Thank you.

comes proceed of your with with Our Carl line Berenberg. next the Please from question. question Keegan

time. I'll here. brief guys. Hey, be for the Thanks

quick Just two ones.

percentage street portfolio what missed I of your currently if but is below apologies rate? this, First,

base. -- tenant XX% our of About existing

it's So around question to below. your XX%

right increases thoughtful mind to are know inflation too, you're at feeling as everywhere I there talking seeing relative guys of are is become could on just storage And when a necessities? they're customer you and huge in you it. how but as given expectations? point rate point topic changes all you of behavior when pressures top on any financial now. I touched Got kind this pushing mean that far your Obviously, isn't

attention on consumer our is We're I Like we've what's the shopping change -- way inflation bit. increased the amount stated of really happy change certainly little they're of paying it to what's on and the patterns. points in bit activity, going little and We're still a only touch of with seen amount earlier going with really flow has shopping. with amount but a

isn't ticket generally storage Our large large, number. a

necessarily bills things the these And are and that in it some eating income top on. other rents so rise of of doesn't the going to and household

have of in about look this certainly, And mindset the products how But at at. these storage some into But we future been. really something time, influenced to changed go as so we'll hasn't as times pay and inflationary we're or business. our point it our as shifted been historically, operating other attention hasn't on

guys. Thanks right. All

Thank you.

Our proceed next with Kamdem line Please Morgan of from Ronald Stanley. comes with question the question. your

Hey.

Just a couple quick of ones.

The talked point at of at year for half the in the Historically, is end the exit rate X%. sort looking the being year growth of the low implied growth just second is about sort rate that first we've of starting XXXX. of guidance the a good

as applies anything starting whether the if the we still if we're XXXX? it's comp, thinking sense still there's curious mix that about about the or Just for point think it's different, that whether should that makes if

the Brandon. question. it's for Thanks Ronald, Hey,

for that's on about spot XXXX to that approach. generally as I mean, exit good thinking think how XXXX. going you're a rate starting I a we're growth

half You're right high-end mid-X of on the guide. growth to up our back mid-XX about the think is I implied the at midpoint closer

And pretty growth. historical different a on The in don't so provide can in quarter. next that is one terms would to color long-term of a situation indicate now pool. same-store us the for certainly XXXX right I do where to we our have in like remarks, and mentioned we're going that same-store you, thing but averages going my still have above into November big influx opening that I are

the same-store go up does pool materially. for So us

will where located properties those and And so the trajectory growth properties. that those play in are in, of of terms

Got it. to back And pushing rate then and May of question increases really seeing my then is respond. sort the going sort in second hard the occupancy of just it and

rest for pushing think hard you I sort as year. the you're the of still mentioned that of

it sort this much to is of -- the just normalize guess is level, to still the are at occupancy you're at that trying conservatism right? to of pushing I of the guidance, into point? sort sort doesn't you're So same if sense a to seasonal how of conservative But much guidance extent Because you patterns. -- how the expecting how similarly baked get more

did that's mean I a continuing push for Dave's more QX total sort the both QX as May in levels increase receiving levels or all majority specifically QX, to the here rate guess. than in of guidance. on. We're say, I to of mean were remarks would process we're wrapped the above going increase that the spot and past. But I and and customers not terms there the itself. of XXXX, that's customers as increases Similar so I are into in-place Ronald, as anything in about similar well percentage was Well, what below, QX we

levels. mean, Dave everything be seeing hit on And the returning I occupancy and delinquencies normal like bad appears we more so to feel debt, we're pre-pandemic everything to effect, levels, occupancy

peak occupancy decline line XXX or And But in I from I so you don't we're what gives I our we're call with guide to XXX about to realistic that's else. trough. XXX realistic right that Tammy pretty XXX know now. it May to in or -- and answers think and said mentioned, quite much yes if it

amount I conservatism So wouldn't necessarily. of characterize a tremendous

you. Thank Helpful.

Ron. Thanks, Yes.

Street. your proceed Thank the you. Please with question Instructions] Our Spenser of [Operator from next comes question. Green line with Allaway

streams. relates revenue one you. as it Thank ancillary to I had question bigger picture

this Some quarter. really of getting most recent the of The Bargold your are example creative. peers

might the bit to is revenue you business longer-term. Just market realize unique down small obviously mid might of curious road? there diversifying And share stream your concern your in very I on industry, the around be in a now, position little any thoughts more that gaining but the in but peers a matter have segments the

you peers, extradite, wanted something of And put that one little question. just I to Great our I bit think, make… about out a

Bargold. Regarding,

looking it from to distract affect I at things certainly move where it our accomplish streams, other business, doesn't do to up. okay. that Bargold, us always trying It income sure, what So, I we're core doesn't we're us. look other here. doesn't But wanted really catch ways didn’t make away to at effectively

would third-party like you ourselves vehicle We things platform ask point the at that there you about One drive those ancillary you is evaluate wanted about. can management we've We of look always basis. ones a of something in talk on very is a where talked revenue if time stream. could to one some be that often

say tell on looking. additional Do and I our we strategy for and Will have constantly if approach So do. very well had our where thus and very, look, success always success working looking it's PROs we're not build we're and find we've we've worked we're And us. evaluate, platforms And to what have with I places. success that evaluating great you, had we differentiated we -- seeing we how that's that, doing would going can constantly forward. growth. some how tremendous we then But be our But and of anything part strategy no I we don't. far

of per judge core growth. ultimate is share the Spenser And FFO that

Star delivered we've multiple volume judge midpoint XX% now acquisition guide, same-store and year's that's our and our per of with share That's of that the the years ultimate for growth. FFO the the this core external North performance So performance.

you. Thank

Spenser. Thanks,

with question. Please proceed Truist from Our follow-up next Bin Ki question a your Kim is with Securities.

for me Thanks taking back.

quick new due little bit around or pressures soft a worse Sarasota to being better next Do question around year? those Phoenix had Portland, get supply. Just your comments a and

Yes. Good question Ki Bin.

is change So than kind because is it portfolio to way greater average their QX. line QX were of with same-store on markets, and that portfolio was my a then the Phoenix rates about But the right growth those from Portland comments Sarasota below growth is in average. intentional perspective average. with portfolio

it in-migration talked mean, we've below think market of to challenging our especially now still in point play is a deliveries I things I of still Dave's that markets. Portland was growth taken growth, factors portfolio Phoenix basis quarters Coast data years population just prior, there's those in market Portland in a average. I probably place think given still there bit XXX the prospects, but to are West still positive XXX points that more deliveries, lot little is Florida there up about occupancy -- in about is and still new relative absorbing. the several to that even for had or though the that example, picked and for

you're about that what seeing So supply with and some the saying that of of dynamic we're demand. effects ties into

whether because demographic Any be attributes that it low I'm to kind in trends towards about pricing or have think you when you see? a more ABR be might might have qualities less customer but just programs or talking reacted So or you And changes, oversupplied noticed any groups trends Portland tenants. of sensitive just versus the different more ECRI it's ABR might little between Great. of tenants it? high Okay. obviously different be discernible reactions about how customers

and demographic haven't seen another. yet. patterns the studied we one you're I survey, some really in separating Nothing and or just mean talking like, anything we direction of things we patterns about, itself

And would I so fortunately, nothing yet. say no,

Okay. Thank it me. for That’s you.

Thank you.

with One is Neil Malkin question. with question proceed from your Securities. follow-up next Capital Our a Please

Hi. Thanks for one me. taking for another

quarters quarter rising. a right don't can done it. rates that talked Just couple you bit anyone you've one, but you the think about But in this again, rates acquired better talk the about X.X. you Tammy, there mentioned like that I a cap And product six are than That's as up cap last well? that's of Obviously, single for you that's cap Should looking it yields for seeing Have level? are out move rates those range portfolios that into seen or the actually assets? you're versus you're evaluating get we now you high-Xs at? higher me.

Sure.

start. I'll So,

a Dave of bit. in little cap in rates between gap think the some But I that that want here might always have will to chime I we secondary say and seen tertiary markets.

continue extent than to that cap year saw, of the acquiring to those let's last better able higher the are The this say, last we markets, year. so what acquire assets markets quarter and cap at just in And are we're the we primary be of the quarter those to of first rates in rates. on market some

again same having So, from in might to But and something for if to paying number this of an north one talk kind one rates discern -- that's asset cap portfolio current and a if portfolio odd another. and try cap company that year trade that, about it just last said even of call we are for X a class were X.X a to -- this -- late environment.

there I that's trying would still And true So self-storage question that. how That's call aggregate There's it, it's are changed. a things absolutely no been to size the still historically. but fast People last and XX, in is premium. XX portfolio and about -- that days. have say

been anything saw previous as the Last even year, in not portfolio a it the seen today, as there than premium. is past. -- still years. really XX, widen might further But quite call in portfolio recent XX It we we'd wide it's be not new. that premiums So has it, the

things of add single the properties targeting think because buyer I is is. getting I'm would the single think I I I thinking a it's there's to don't kind what flight you're about properties. don't think to I think now maybe is, pool a of one better buy.

there money the for want properties buy has buy changed still that can buyer have are has they're pricing with to and there and general I in these this it. properties. bidding changed I who We're South I flight mean pool want and at think properties, buy But or been in there something to change are trying that. in the seeing one like hasn't there all that properties. that to buy to out Carolina not people option people

Thank you.

you. Thank Yes.

Thank you.

call turn I you. the reached Thank the Ladies over of we question-and-answer Tamara will gentlemen, session. for to closing Fischer the end remarks. and have now

and today. this I for about team. pleased We want and grateful results. very And supporting delivering We're I'll recognizing for to And again our team say for wouldn't for results. QX XXXX. end for call commitment with Thank our we're our just on remain certainly without today thanks thanking outstanding their prospects ongoing focus you. very and joining our optimistic NSA call our

Thank you. your concludes may conference, for your this you today's lines a participation. disconnect and This wonderful you Thank at Have time. day.