National Storage Affiliates Trust (NSA) 2 May 242024 Q1 Earnings call transcript

Greetings. Welcome to the National Storage Affiliates First Quarter 2024 Conference Call. [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. Hoglund.

begin. now may You

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

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

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

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

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

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

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

our calls. our initiatives been for of increased future and our to balance enabled per growth ultimately discussing we growth. us completed in initiatives strategic During position deleverage and many that share the earnings access company capital, sheet to we've These previous quarter,

activity and our see a our ongoing, conversions still customer rental continue starting improvements upgraded presence These but and to we're our ensure operating to call advanced better web on platforms initiatives in focus enhancing operations. We experience. are from center

experienced end into months ended positive in points we the up the occupancy, X of of April. rentals Driven front, end XX%, at the February. through basis net On XX April rental from a seasonal which uptick of

the we being leases a fully increase During the online. to to year-over-year part meaningful signing due made experienced quarter, experience. improvements in Large executed lease

our experience compared Additionally, our overall year. Continue improvements quarter to drive call performance. expect more down continued pricing of the quarter. center customer is years. This calls and and We're customer stayed our we XX% strategies, customer over having see by rates, our about the to while putting our Consumer simplify it have healthy enhance averaged over offer more on to leveraging pressure intelligence with during us strategy. to over is answered XX% X we year-over-year XX% on move-in also journey us tenants been in being our a volume, remains acquisition the with in helping last year, XX% for rental base which aggressive with

a Oklahoma Markets and Savannah and the average below these Sarasota Phoenix, like of with revenue mixed Results absorption for portfolio including factors, different but markets frequency we several the and months new early remains past better Ultimately, ahead Vegas, peak quarter muted all are very environment. us. That program competitive to challenges Corpus spring quarters as across magnitude. in Christi the City, were pricing and many out ECRI consistent terms of with of average. supply, Our of coming season it's to than looking due largely the the couple leasing markets, expected, housing with market Las quarter. in said, played in in in continue face our still Sunbelt

are us in markets results. and next be existing strategic variety insights strongest migration have our customer many acquisitions we into heading experience makes currently front. street in that important confident We're good pleased opportunities to healthy under continue superior slower rental portfolio contract remain solid that that out rates, I'm hard of markets recover. It over We properties our markets to phase markets to markets these with we We of recognize of our us more deliver We're overall $XXX to due quality prospects delivering finding and attractive and in at trends. demand are as a are deals operational precise going this to depth of our to our to we negotiation. have sense in our markets positioning work million on some underwriting. where is the very very stages and of into approximately to growth of our various allowing a Sunbelt in they to increase growth. the performing be to and starting population see efficiency. Currently These have and pursue deals our improve million $XX for of point

fund we to I'll of through joint us over results. these won't to deals that discuss Brandon for partners, start and powder represent the work of turn our our us and until on optimization JV These dry We venture was pricing call now XXXX generated the economic expect our financial We strategies. from putting portfolio to are proceeds, to the sense a comment the acquisitions closed. debt. combination capital transactions make

Thank of per almost driven year results primarily line our our few X% prior you, NOI, afternoon, decrease Dave. casualty for JVs. aggregate except we a decline a approximately the the or for a share in reported expectations, by of with events an quarter for of in $X increase $X.XX million XXXX, the resulting same-store decline the loss representing period, over quarter in in Yesterday were G&A from share. first FFO in our $X.XX Overall, an and per Core contribution

a growth XXX growth the quarter to the average the down in renewal main versus the expense policy increased remain partially spend quarter, of past resulted digits at basis by X. Occupancy declined offset prior April growth the to basis, revenue points for point couple same-store in will year-over-year. to quarter. lower payroll X.X% foot was during by and quarter. given were XXX period. Marketing occurred the a growth on drivers by elevated in offset the due insurance customers the tax, year-over-year of property in a XX.X% comp, rent decline moderate insurance competition expenses Similar For on revenue and marketing ended X.X% quarters, year efficiencies low X.X%, that basis single forward driven first Expense of going while square our tough per occupancy growth that

busy to XXXX had asset the a which our As all on was of joint on venture sales call. and Dave we start last mentioned front, earlier, discussed

active we of power XXXX during revolver venture, underwriting evaluating Although we majority of with did of the lie quarter, our external us. are joint we growth and and opportunities the acquisitions available complete remain potential transactions. The encouraged for our billion to by buying us are not any ahead $X today that

the Turning to sheet. balance

strategic to our ultimately just During subsequent million provide of this beneficial of the per more over quarter, share believe them to million shareholders program. and we quarter $XXX the buybacks share our run. and common is We completed exhausted will the to remaining long initiative FFO over end, $XX

remaining approximately giving $XXX roughly is million, of balance revolver current million $XXX us availability. Our

Lastly, our quarter net to was X.Xx leverage debt at end. EBITDA

outlook. XXXX to on moving Now

season. it's early still quarter said earlier, in out the leasing and as largely expected, we spring played the As

guidance, our previously mention which We release. One on are detailed in I reaffirming the item sheet. is want earnings provided the balance to

of relates $XXX mature have fixed swaps this in daily $XXX in QX. We rate at to X.XX%, million million loan interest matures term which of that that simple SOFR July. the

point out will underlying expirations debt August adjust but exactly starting today. So to aren't the X. This swap into of maturities. we the to wanted effectively, aligned in $XXX February, guidance market with was fixed-rate since call our the factored for Thanks joining impact million again rate debt provided I it

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

question Instructions] the line of from ISI. today Our Samir first with Evercore Khanal [Operator is

I you're idea you XX% seeing quarter. so said rates know I color the were an give far? move-in give April April? Can in I us to of down you kind ask in Maybe more first of what believe -- around

the Samir. Yes, the We were April, generate today. were in pleased we month we our net which move-in Certainly, another activity call Thanks able to get to rent are our very a a in -- April, with. in most positive joining the for radar competitive the Street of top saw of markets of certainly asking at around started. funnel. We pretty activity competitive market

slightly you, worse. got And would a got slightly so number, April finished. wasn't It worse large quarter I it but the tell where than

as Street to and Street move-in move-in rate. move-in activity far rate rate rate to -- As

decline So both. we in saw a

is this Samir, Brandon.

April. part year-over-year that's On because rate the to, referring that some rates last they was up worsening in in year, we moved move-in

also that's so affecting And comp. that

you Is like more think? And it. Or But front on side, you at the last the on Got have acquisition opportunities in point? is active of on there like sounds I front. done do the more quarter, the pretty of you guess some it that noncore that this there assets. noncore much bucket is were transaction sales -- Okay.

we through with our did and as asset continue and know of and in our pleased I be of look forward efficiencies in scrubbing the we will worked assets. program were through that optimizing We markets at we'll our we're the optimizing that particular go through that And large as look our think future we we part portfolio. a I to still portfolio. scrub I and portfolio tranche activity. portion sales the year particular last think at our

don't think you large chunks to the sales see done could that I in think we've see future. recently. the So going I you're

shifting present acquiring themselves. we're we'll out opportunities think and to for looking when look I focus We'll our properties. to opportunities go persist, start and

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

you This on allocating how about it Jeff. capital, versus are comes to is buybacks? When leveraging for [indiscernible] thinking

is take Yes, I'll Brandon. that. This Dan,

the of repurchase So look, in set line X.Xx. what to $XXX we've Leverage volume. past accomplishing done and the share earlier in million to light remarks in few over details release. range we targeted do. with also, completed very pretty mentioned, our program Everything we out the as that also acquisition quarters. pleased We're with the on our we X.Xx mentioned And

referred call. positions what about than take now is it really what majority us that we different February to does No advantage talked Dave with of some us the available earlier. to So our revolver to it those in of our opportunities of right

deploy that to and and bias, platform to I hard JV be capital slight to allows of with that do through some will way, it manage think put there's that ready obviously partners. money a that capital-light venture our worked joint if us work we in the to leverage a get

on JV including to follow-up the adjust leverage. a hypothetical Could your your you at for liquidation book just provide then value rationale And XXXX behind EBITDA?

a good was thing quarter. Good this That new Yes. and observation. question

there arrangement is that's So similar existing that XX assets. money assets put and joint have we're venture, to the that the I quite we we ventures the that the the tell would joint one managing into. X XX% partner you

metrics, based get cases, the may. nuance an is In cases, performance cash different arrangement something However, we one be on where the may of split than our there may XX%-XX%. is share. In some partner outside through other certain

this us and you into methodology a for And That of term removing effect -- just XX%-XX% we're split. showing earnings. basically a drives that the like allocating the use, GAAP-specific straightforward more

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

your We've of call out accelerating peers number what specific and that that to any out? or percentage are across you are bottom markets heard your reaccelerate. of portfolio? some from Are starting markets your of a markets seeing to Maybe

question. the for Thanks thanks being Michael, here. for

the tougher Vegas. in Las of had we mentioned would slower And believe the activity we like it part our We comp. Those And about have over you, the we markets that the Southeast, had from we're X last happy months. are the facing think markets. that that tell year been some markets the think, sequentially, I also Florida, look as think Sunbelt year well. was to the as Phoenix, particularly respond. half of we was net our Atlanta be sledding, mentioned. supply I markets those Sarasota, like move-in first toughest If going year-over-year a it, we of as rental and to we volume we

success it we I markets, markets those Midwest. of Texas look so out. in markets, supplier we and had to the some through look at but we've look at you as recover, slower We've think have the -- And called good at as good the had most as that success the

we call Christi our that think I remarks. Corpus opening in

more think, did of the and some I also those, stable. been so have highs little And bit pandemic they've not a

recover. other muted I this of be to factors of are that cycle I transition think well us. last and again, us But through going some the and Sunbelt exposures slower with for little performing are as we for that some think went housing to of those bit going -- that more a the and on

And of work? the at and the with the had influx pause the the thinking provided JV market transaction my time when the and redeploying being, transactions to capital. them did about of an you you think you follow-up start you with a are But can do the seemingly number then put year sales to is, sale of proceeds for these how

question. markets. and touched we in the properties that help that things us $XX we're drive operate efficiencies -- opening we're I our little remarks. existing certainly way do in and now those really in We have Yes. the Good and Where looking bit will contract in density on we million a portfolio, adding under right markets. to our to scale have and

we're $XXX million now. We have in right negotiations with about that

like. And you, at to back starting at tell year, more for would we year we're the we see thought, we -- opportunities. I so half this the we find continue sure, to that as opportunities And of looked

have I are scale a some again, great found in, in for operate earlier that these good that the are logical in we us. properties. and in we great markets buyer fact for is have positive and think the these And and sign opportunities efficiency we've a year

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

or regards cap to indicative are that. continue rates? questioning you And types the re-up yields not to be we that same a it's been this the now buyback of with think would market do of or with your you I where that that current assets? kind wanted of assume Should depleted? guess, fully Just for And subset of your line the acquisitions. targeted is

jump Juan, I'll this. on Brandon in and maybe finishes

where when you at looking that targeting seasoned that rate, look property probably to one, today. we talking cap purchase, as old it's a value for, you of each type unit, down the what's management we're component looking is property Obviously, at start the there a you it we're is it, different assets so on rates. or a property buying add, is have is different it's better -- a think a we're owner? I of a hard how opportunity, I pin may how is And mid-X% think it, range cap who you there is you're to versus think from opportunity would where really

range. internally have around certainly But that modeling we been mid-X%

were the As you towards remember, the assets we sold itself. X% cap

certainly X% of and assets are these capital get when on to we X.X% at a to it so it redeploying And buying. we some this redeploying that growth makes we thinking sense sold lot opportunity we're us and

the As the on our repurchase authorization to far as current we program. share were able share, obviously fulfill

part I investment share that think is of our activity. repurchase

buying ways and we capital I deploy sense. several to think our look this back shares that at company from makes

again, tool if thought authorized would And appropriate. so at But I opportunities use as we we anything this it a think that have time. our investment was don't we in

Juan, And is I'll jump in. Brandon. just this

some just And some bias on acquisitions, JVs, repurchases, yield about other leverage, also about to mean, about to on to of comment year on management point end debt other Dave's capital to my those and comfort, maintain talking be repurchases the currently. just stretch of that long share deals yield towards would the X the might thing a would allows that range the my us gives only that earlier the obviously then here, do target. the I remarks lower I everything add and X.Xx using we'll in us that and on acquisitions, on to the is fees now for I are EBITDA we're X.Xx net we've time deployment, to So had thing and remarks earlier

the rate, occupancy just how seasonality, then and comp of tough could increase just in seems slope trending? that's out you both you And it And from called last saw April. disappointing, you on is on like the comment maybe a Great. great

thoughts? on there curious just So stacks how that your commentary initial to relative your up on

Yes.

balance the and to what always we're we're about think talk I trying revenue. we solving

what a type that, trying that we're the would we're there a finding do. rate. really and environment, what what attracting, you at a occupancy that's good through at looking and those we're of of that, many to of is on what's rentals. team But And piece what that finding things far so is unit competitive we're what converting type asking sharp opportunities as done we're and a of being we're is work we I piece to a global is opportunities so piece reason as It's tell little that, a to hard into looking comment job more rate, conversion discount renting. navigate rate but of have it's customer we're how we're coming our because the And as has is a are

in what And rental so we February achieve. trough pleased the the were we're with in very to we finished from to where seasonal and April, activity able

of price you And little the tell up base. existing through with than some bit ability work really tenant wanted. came ECRI and we're point that that stronger than is program, in backing maybe have to can we I our our would sharper a which ever

And the discount make or to it so we're what cycle. up how have looking upfront on at rate maybe quicker upfront we an we ECRI an the in give and of offset

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

I mean how ago. you second that about comparable versus And portfolio? and outperformance areas wanted up just gone last far? were talked wondering about of your of has it thus occupancy-based answer on testing I was type a is follow providing talking to just quarter, last your I there. the models, just any you

Thanks joining. question. Good for Yes.

And our size, size. testing. the unit talk of success unit to seeing again, the as about And it -- it's goes are in business down again areas. advantage that's We not we

we've And some seen so success. yes,

would that we're the in tell expanding test us. some can rate the tell as commentary I for areas program would we activity thought you, as pulled so a we've Street We and bit program, successful not work -- in. back and we little we found not success put on we for it have was around whole, sharper pricing, you I us. and we have But little that have right of and expanded pressure being where we areas a that's the a in like, did said had when

in expect February. trough wondering then into increases I your baked sounds And of bit third second it. occupancy guidance in of terms what's what It for like would sort Got in came this the And you into occupancy just typical a in was year quarter. a quarter? year? this the the your sort quarter, of

in maybe Eric, it wouldn't peak. large, XXX to year. XXX in mean starting But the at year-over-year numbers, really was easier uptick back our bit and that year for basis midpoint is basis gain baked and flattish to yes What half. on us that points some it's Brandon. but quarter sequentially seasonal the is year, as basis most in you're the uncommon we I for years by guidance the And XXX mean, was you off a summer. points from comp be to a of went. first our XXX, more as over spring occupancy little flat the this I for what saw of valley prior like into means the negative the

you year. throughout So narrows the that gap go as

that rent not either. on add very were Brandon's also point, would to assertive we growth I I think to

rent, trade to And occupancy. we're so certainly pick to trying up models, we're on in as off back we're anything testing these trying

up little to we occupancy And we when level the that around, about guidance balance trying talking on occupancy initial Street to so you're to if that's a have number bit give move find. we're what the rate, moves the

the to on last Eric, thesis we occupancy, expecting muted like related year, experienced the just And housing. demand was really more Right.

out. back than And that's nothing I worse mean so in wildly we February. things played thought how better far, or about

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

First, follow-up. quick just a

a of little at comps about the XX% easier. talking So end the getting April,

what's on narrow? like to gap Sorry look Has missed basis? continued it, but that if a I the year-over-year

earlier month It that at we stayed moving Saturdays in -- around. year, hard year, about Todd. week, it there snapshot, Saturdays and a X flat X this you fairly this part monthly this last look The stuff was April in when X April, there's talking were Mondays it,

we start momentum activity. you occupancy there. see about through really of so again, the up. to days before We're But picking we're some quarter it's there rental the in it, pieces And of look gain talking at April. is really noise did know second around of amount happy We rental have and the we with moving amount

XX% basis ended month. Todd. we we then to to the XX uncommon end of were the points than near not lose And higher Intra-month, that XX flat, and

gross we bit last also the pleased So It pleased meant little with volume. volume of I were was a with rental higher was versus -- move-out there year. some of

too But many April but So think for we'll conclusions. saw portends next there have it's what the early little and we April, more to to start a more few just generally was maybe I there's making last than bit of wait mobility and see. -- activity, that months

refinance B I the the that It's appreciate Okay. it. with you What to or to can -- us And tranche C million XXXX update Got it next the in on plan the plan swap Brandon, year. on us But both just and the expiration. give like? loans, looks the in July 'XX remind term Yes. tranche total. an related comments -- $XXX the you and then,

sure. Yes,

got term, -- $XXX we've So got million. we've tranche that's B, the near

refinance obviously option can debt B. So X-month have well. out got we've We capacity do extension on on we there -- some to We our seek place can as line. a tranche

would of referring C stack it on that that the you're All that to. us our with 'XX banks. top January So tranche

your group. with this So close constant we're bank -- to got in and stay dialogue you environment,

we're that the year. throughout that to continue we'll and do So doing certainly

market. bank very base or debt to replacement debt with successful placement put been group out accessing we've the our in be it some is case private then And there, the

So that remains an option us. for

that XX% X% has it, opportunity Our at, -- to secured to the We're debt stack it's levels XX% range. as call debt return currently. a total there's that been our percent historically to of

there and in majority opportunity 'XX, we'll of I half lot second that me. expect probably the address excuse the of of 'XX a -- So

to Okay. here. discussion And then the acquisition just back

we intend So there in of the be any sheet last announced to that terms growth be venture that in that joint majority executing PROs pipeline on since were is should in balance anticipate? to you acquisitions acquire in captive assets expected the the of then pipeline acquisitions, quarter. what And sort the through Will that it what to been IPO had the the that on sounds has happens of XXXX? like you the NSA

Well, yes, good three-part, I'll try to make sure I cover them all.

I weighted balance do to of this sheet. out, on sold activity want we a we you'll want think it's good of redeploy our to will is probably year. JV XXXX of see the of I environment. cost because us, the majority to for acquisitions some good purchase at year, be a in way properties last to not that towards as would stuff a XXXX rule take have us the going capital properties care we're and today's for some We mechanism

put of the those bucket. place And opportunity, see what we property So we'll in sit type you'll through. come balance the we'll to that and right try property for right to it the the think

pipeline. pipeline, to As cost in of still obviously, buyer. It captive the and the a us -- doesn't that missed. still pipeline that capital environment. then stuff working mean there I'm third there's far seller sorry, the with mean it. and part tougher we're bringing between time was in still out not for finding doesn't work there. just captive opportunities. bid-ask slower off little it's as from God, We've had still And not been today's evaluating, today's I if We're the capital It It's a

And in latest I the the being a I really the what's No, bringing them the that to I catalyst But of pipeline. while maturities executing less properties those sort There PROs, at sort that of these What's a the it guess, active assets, recall, in was debt. sheet? was we're or meantime, maturity. captive What lot of has to them size? of been terms think for NSA latest acquire pipeline had I the say guess to around there about are on able sort the if leverage the balance captive of there? that

Understood.

I want if the look of on at think XXX probably XXX of $X to depending to you $X.X billion. the pipeline top the if captive in you billion, value we at stack, -- it, properties north how there's look

captive think that I transaction. about the they're kind looking of most of in pipeline, you think if tax-deferred for that some folks are

they'd some so type preferred is not have I And captive the They're And method pipeline out OP would you is third unit, the it to parties. right? want of not tell to selling so shrinking.

been debt of lot that. Amount coming of around hasn't There transactions a due.

that a group. fine. felt pressure We haven't lot that of in They've been

And so I exist. think the opportunities still

think had find at But we've around to hard this been it. it's where time, a us of discussions I just it a lot both place for in point works for parties.

Morgan Stanley. Our next question Kamdem is from the Ron with line of

X Just quick ones.

way a slice would the performance more of color there to in any portfolio? helpful? little some be more performance of other the to rest of portfolio, and dice the buckets, sort COVID winners of versus a of bit sort the there provide on thematic is terms maybe that of Or is In the way

us, those all that I'll Atlanta, mean have back mean I I a cooling were red the comparison give degree, have I half think certainly, to some definitely we're Ron, is the off. in Riverside with in what during the cooled you And hot dealing happening that short. markets 'XX of that Yes, 'XX. was throughout for still off it some against the of pandemic. and

performance see They as quarter. There any other those. didn't maybe given into certainly that that so you not strong the that perform. as still year-over-year markets are for strong, And plays performed but really

steady that of more opening like be are [indiscernible] to been Dave? have And some Any those going Dave remarks. so all other the other cited Eddies throughout. And in comments, those markets the

some portfolio I'd housing, around about this that benefited of bought lower movement of also who that people we markets say, if from markets. around do the in houses think have sits probably you rate lack the single-family interest

portfolio versus see stores may a positioned. pulled more meaningful So of into you recover moved Sunbelt single-family the Florida, of transition. I markets. moved that and activity our these slower tell little they And where ahead exposure. our some until these purchase. be home we're a happy change we housing rest maybe of they They their I we're We think see some bit I went you, ahead into with to that would until environment, around around think like

continue these portfolio want Brandon's and that we the We -- what we've a I portfolio, hot, little to they're fine, unbelievable our XX I would red, But positioning do. new call, think the point, what exposure able Sunbelt new some And to the we about to know, to normal we come call other going it's now had also to our XX and run exactly wait got of to going it. a things reality. red, of don't X do markets And take just months are there. markets diversity to back as bit to and we're back for to

you're if of of peak is to what on something rates? season leasing trying higher about Great. given That's mostly of and in just I on my same-store bit it comment could second else versus little the Or brings? revenue helpful. on NOI, a And wait how you guess sort Is there XQ. sort assume just of demand are sort you're just the of deceleration line. a question of quickly was just And there? would the then basically guidance you because sort turnover sort where see from that home same-store thinking

in Yes, the year-over-year we both NOI is certainly, part, implied the year I there's no is same-store Ron, correct. introducing than growth guidance for revenue when the gave so same-store of February. we full that were There guide the and QX first lower than on numbers different midpoint the mean, deceleration. you're

We Still maybe then the trough fourth quarter. of the and accelerates. and just year last we in improving year growth that's terms growth expected that really but how budgeted maybe to that middle have in this the of throughout that year. of you all in negative dynamic comp quarter-by-quarter year-over-year, And the the

-- weeks mortgage last like relief rates to we'll some -- part April X picked year, in data stuff I the than second On mobility that we bit like But response probably how in the from up. my weeks It's and regarding then today was a right? encouraging. little we have X of your housing, question, is saw we how early not got things in general back different look, now, they feel felt feel ago. year said I'm late sure a we of I Todd's the But in mean,

would mortgage rates. that in Obviously, things. the highs So be seeing despite apartment for you've and that other XXXX renters got you're new

in aren't moving maintain stay. we as moving there's the gives to and That's people a us portfolio has length what in-place longer -- space us is the that much, as ECRI. much, If lot rates. So just benefit others power with people also out you allowed a the who in and know, of what have aren't also of and that's as protect

line Wolfe the from is Carl Research. of question next Our with Keegan

Maybe just first 'XX deliveries on we new supply, how 'XX? think should and about your in in markets

markets, I slowing lot we a were you think they do is tone of And pace years ago. off new think think if our slowing into are our new look are down X the we general deliveries deliveries nationally.

And so positive a sign. that's

of up similar, it amount up that tell the keeping fill track in radius. we form entries the some in around some number the around much. I that of Fill are really amount coming I -- in that percentage and of look properties. so XXXX. X-mile is and was is pressure I fill in way new down would that amount think moving of And we off is falling entries can it from of is new you percentage of isn't stores facing up be pretty at properties where mean, store our

in we pressure fill decline up. so and amount feeling see And our stores from of a stores

up, of we're think it coming had the new about that, I in if better supply pressure years. to wrap specific, I all that's feeling right? so certainly, And But market

You've to some and markets going heard delivery feel been believe be are Atlanta, more that's of those and out around us believe today them. going pressure talk pressure call others. to markets. the product We about Phoenix in it. on there's than grow they'll There We put

the third-party on are just And at NAREIT was in one potential to guess then today? your start up I you things if guys where ago, that think came management you our own I changing a that platform. back gears, of guys year meeting for roughly the

a That's good really question.

-- team really platforms, heard looking really about talking last our people, You've platform, us platform, at our XX process the or X, looking talent. and months, at over our improving

in additive operating We to would months evaluate our our continue website, we have around these for our the grow be look the our systems, company XX done and company. things that last platforms, some really to major to of lifts to X all data center, how position call things this us to

PROs management. Certainly, today, our third-party do

had We JVs. And have around. we've that's so access something obviously

though an on So tell have out. call our would look something ourselves, manage don't the say it's I on we would talk others. there on it. an platform? we in the have points. of we our that tell even what we lot a something for do all stuff I and the have it's you -- but we you, to you we and ownership, discussion built for It's reporting horizon. that And I'd all we systems exact a about right I is date at deprecate be ask it's time third-party might would

that to spread addition from Keegan, MSAs. sold we've the across would QX tie XX platforms was in optimization XX strategies right? our said, stores I the that Dave you speaking all So mean been in call, different QX, that we And initiatives, I that I the and comments portfolio last the remember if out with, in mean,

your it's I to going the in and And provide to platform have we where efforts, market And And think areas the path going we seriously presence. [indiscernible] consider forward areas to market in or so densifying going that's certainly don't -- we're trimming to in point. for to dominance systems where us we're strong addition do.

Wes from Baird. next The is line question Golladay the with of

Quick retire they're one more sense or think the next within you see? -- some so? them, talking get see PROs. the over to the with the do when may the you Or on it Do environment current year one you call opportunities they to about excited

I the they a being like would growth. would today. thanks with us to to more for environment little like question, conducive and -- external be Good be certainly perspective, think from they the PROs

in you of on and the been part on performance and and business improving finding business think think how properties acquisitions. this all and I heritage long those we've acquiring the as value was about

where And list, has patience so and certainly, very, the the at of have this has been I a been very the top think PROs time been good patient. being

very into found would been just then and outside look on can acquiring date. captive the puts also I they later REIT. They've opportunities, also move they've to the that outside you, that evaluate we good some out, pipeline they REIT tell been our a stuff money have found about properties and at

but been active. great. they've So been We they've been appreciate and patient, also much, them very they've

properties I easier So it question acquire to see answer think is your love be the little NSA. to sure to they'd a short within

Okay. you would and may call not at deviation? put in And Are the comment 'XX? earlier had or the looking 'XX the then Can And cause the flow JV about on we exactly sensitivity be that? some you cash XX%. that what

which to the was but to hit the at Yes. we driver but scenario big going us fees. some of Sure. guidance of a a base guarantee, certain we mover. be our needle it's earn like which those Wes, metrics then not strongly if at levels. predesigned performance, partner, is and contributed with those money that we're being 'XX operating return the not the value in that really incremental of all on of ability to And have the providing yield, possibility, assets, in minimum it our currently we the kind going not not assure around it's That's just meaningful a to

out but return we save certain liquidity comments JVs, been And handicapping that event, a like the I'll to our beyond of X years. existing have achievable a a provided structure partner, And about once has disproportionate where share get comments goals, promote we for likelihood XXXX. save the They I'll then upside. our then then are upon

Okay. think Then some may it, about, mentioned call coming you some have offline, you I floating the should did how we exposure? think some buybacks, to rate swaps dispositions.

more be some buying may You assets.

floating over a in So the of exposure year. What of rate you the the lot moving think into the balance the calls do parts year?

remarks, mentioned about -- guess, me I way. variable opening million it as which revolver, only drawn current in the let exposure. our I rate on $XXX this Well, our We're say -- is

We million have of year. now into new enter fix expire could then, that. to or That and the the middle flowing between could swaps we go and swaps $XXX of that

that be So that. will replacement a takeout place

us. options are those to So

XX%. goes puts floating. in sometime as a variable burn less factor XX%. to to been up of the subject It comfortable total. around you in past million We've total just the XX%, debt of our let's $XXX that If swaps our that XX%, that, percent It to off, assume that's

by So over of stack you, end of XX% total our tell say I debt little to the between $X think if I the floating billion of I'd had could XX% and a be year. rate

line [Operator Bank. Instructions] Our next the question Omotayo is with from Deutsche Okusanya of

by JV? captive not do of Quick can't from can or any like way that acquired that question. pipeline The legally the Or potentially be there something you work? tax would because is the implications, PROs, that

touched could they anybody. on it want. sell if to they our they down They sell would -- and could it property -- to you think sell they could turn JV, point a it I the certainly, Well, the they to we well, captive wherever people decide could probably is the JV, pipeline could sell sell

primary looking really treatment the they're pipeline and for that think the unit is I that tax sellers. one group captive behind drivers the OP in of of

aspect it can't so to I in it JV guess the makes that, into And I spin answered. that hard. the answer We that is

outright managed, assets they they that captive Omotayo, only our thing just them. true. driver, is, a question And other is ownership don't the They control. which in the there's also referenced and But I or as in have completely also that a only may Todd, manage them maturities but PROs pipeline interest say would manage his maybe debt minority

and other they be to that those option. the an JV pattern could extent seller, So if changes cash be to if they're wanted owners, a tax the

less seen some and said, on different it's just wanted color but that arrangements. additional to provide think haven't We I Dave likely, some I the yet, of as

or delinquencies auctions, helpful. increasing of That's to delinquencies? maybe increasing overall auctions kind give credit, of you're then kind in seeing could regards decreasing on And also and you general what decreasing a tenant sense

real no bad the that's mean of changes X.X% delinquencies. revenue, the the of several previous as first track debt around a quarter in percent and range. been I in quarters Yes. terms historically We from

It's or those timing for with in significant levels payment changes QX. payment from seen much closely, certainly very customers. watching patterns in something we're they're So but haven't the line any

So healthy all base very intact. are customer indicators very,

solid A Great. work on capital allocation quarter. this front the

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

the it? that certain the components evaluated. broadly more to people, you internal on perpetual want a and certain that upgraded can you are imagine of go in for just focus I'd and I the maybe being platforms are this back to and operations are we a to process is But extent. And to transition where of end process the overall? the define, reaching extent focus

we've as good yes. development on. reaching question. the what end of categorize it of We're I worked cycle would current Really the

center AI updated and And so technology, And we've the platform here done our will around shortly. upgraded We've data we've it the center. operating our and data experience. the call web be and We've platform. upgraded capabilities upgraded

so And this a X were for very big of we touched list company. those, all which

can that accomplished. been worked we've of diligent all in be I've proud teams extremely hard more I extremely their and have The efforts.

that And so really tools platform. foundation on the to talent the solidly utilizing this got the next excel. -- having really into built to launches for developed and The us this we've and line of we we've developed really forward company's as we've chapter technology really, use me, life the look

it, like looks well. talk Can center increase had That's part helpful. the it you some for that? imagine XX% then call maybe in went as paying spending. that as Great. And clicks you about of considerations about a components I'd marketing into

our on them. touched marketing call our you expense. center included Yes, in is mean I

to about how around environment. I continue revenue. center back and look our think the stores in staff come we with the that points and we at a as obviously, call has The marketing to as very change. we and to touch think technology continue the implement comfortable our stores, percentage very competitive today, customer spend level it you're And we're a a as of we payroll

Digitally, more of digital more experience. a to moving people we're

where in much transacting And was the about past. digitally have the we is than of on they meeting how customers I want with customer volume talking Our a they are more function transact. to also center the that us call

around because not We'll [indiscernible] this it And some big we of digital at so search piece those things. the annualize that tougher costs, year. marketing and Google start were of hard that was is those spending paid level and spend, the the is search, that a not around year, as last comp it to from as paid go costs

as quarter, look third quarter, Really, as today. is we the comp spend, we and second start as will it not into year-over-year pronounced head really annualize that to that

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

of with additional generate like is well. grades customers of sounds revenue little as reflected rates a place, you to some management your your occupancy, to some lower web it offering in in So put new you're which more and in systems of some being rates dynamic terms new

promotions learnings give month So how early strategy to rent? X of other any free types that might like on progressing compared you that is

is Yes. it's of I in months us the sensitivity than more did Really I start of discovering on top -- we're you, think don't year mattering question. would it the and that rental and good is the all tell now ago. a process is It's price new X the customer even to ago what

look to looking level reduction, consumer at from their entry little bit are however, And price a for want discount so the sharper promotion, you that.

to little an more around that focused we off then finding X what X rent months make a to first here's do a maybe that. bit this back we off as little have or promotion it's you and up to a around to it where far the bit trying for for a and half the piece your more consumer, is months success off looking program. been and -- X/X that then We get going on and But more months with are the used little XX% lowering it's little the next of industry now to that ECRI implement easier entry off as as through primarily we or your for discount, rate are X XX% visibility of

pretty easy XX- little a those that's standpoint, easy period consumer the as of pretty pressure takes increases and far after being of sale, or of to XX-day a bit understand off as us. large And point with

we decreases bit little so this. And maybe around testing a probably path of rate with and as promotions steep we're heading finding we're not use are where a more and

can excited see and we having And can how environment, react I would and and a tell points so really how having I'm around time, we testing you, about technology, and the been the nimble having be. the the long test we have we data what testing, can I've

farther a we're again, customers. excited way thing to are ever where to learn the we to the trying find We good of used also when be be It's and down to we much good about. hopefully, path track in. new find can It's efficiencies best a

I back sticky. also do very, We to been long had base our shift want length very stays. existing to customer has of

our flip of attracting has accepting the ECRI on side customers, And of lot customer the base technology, stable in and -- very so that program place. is healthy, really really existing that we attracting talk we a about been but have

guess one I just Great, And follow-up. Dave.

seems early you've a I summer. Just the based same-store from and just spring like of kind do think uplift rents late just and don't of to wanted early of to March, typical assumption troughs in assumes spring in seasonal what have to confirm, we the And April? on guidance right confirm revenue winter moving that your that. seen the you midpoint through

scenarios. maybe Yes. a we Eric. correct, That's variety I modeled mean of

that a to rate what like change would those And bit incorporate we've that so that the feel of seen assumptions. had should said. in norms we some those like makes in agree us little to I far with typical but need nothing uptick due nothing years. Yes, So seasonality, or of in would historical you we've

session. reached call turn Hoglund the time, back comments. George of the question-and-answer end closing this I'll to At our we've for

for We Thank at continued many NSA month. all appreciate in you and today. of your look interest next forward joining Conference seeing call Week you the the to REIT

Thank conference. you. conclude will This today's

have at you day. may wonderful Thank and this a for You disconnect your your time. lines participation