U-Haul Holding (UHAL) 27 May 212021 Q4 Earnings call transcript

Good day. And welcome to the AMERCO Fourth Quarter Fiscal 2021 Year End Investor Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. to conference like Reyes. to now would turn over the Sebastien I go Please ahead.

thank us investor for the morning you Good and joining quarter XXXX AMERCO fiscal today. year end call. fourth to Welcome

like to this income constitute during without and Before we growth including begin, remind that our the call, revenue, certain regarding statements forward-looking of everyone limitation, general statements of expenses, may I’d business, Section of XXA XXXX, meaning the amended. the of and of as Securities within provisions as Section Safe Exchange statements of Securities of the Act amended, XXXX, Act XXE the Harbor of

inherently risks materially be differ could Forward-looking subject statements which Certain actual of cause uncertainties, from cannot those are or factors quantified. to and projected. to some results predicted

affect Form and refer of and will which U.S. For the results, please Exchange for operating XX-K is Officer AMERCO’s the I business Berg, Chief March a the on that discussion of XX, to future Securities Financial Commission. AMERCO. year risks call Jason the ended and with XXXX, over to turn file may now uncertainties

and open that or we questions-and-answers. am $X.XX in when tax effects which go recorded Sebastien. for quarter quarter Security million, period XXXX. a to Phoenix, we I recognize to benefit morning. a per to fourth the you go I this compared Aid, I minutes $X.XX the you the and fiscal of $X.XX remarks Coronavirus a to share $XXX share Yesterday in few Act. over though we fiscal want then was of same that Relief of was Thanks, reported the Arizona XXXX Economic did have of of additional and CARES want the for from when ahead we that prepared speaking remind it earnings I up that will fourth share, as

fiscal XXXX measurement the I results of This our of look share. losses fourth in excluding for adjusted useful per that another at to So this quarter believe is supplemental earnings item. $X.XX

the year of XXXX, we fiscal share. earnings reported full net a For of $XX.XX

$XX.XX. the unadjusted XXXX, number For fiscal was

if share fiscal exclude in Act aforementioned benefit, However, the full $XX.XX. XXXX earnings were tax per the year CARES you our for

a in this release of have our as well. We reconciliation press

comments Let full increase an on for quarter or XX% year versus the XX% experienced equipment a revenue. We few $XXX rental or with me our up of we the and last period million the finished start approximately $XXX million. fourth year same

across transaction digits. town rates transactions the and For quarter year, increase most per and way and fourth we increases Average our categories. miles revenue one and the double in increased in One strong. full way saw our both remains

corporate account increase business we year. Compared revenue a of increased and number last Our strong refer to experienced period in might or last many quarter and for mile the locations the independent as same retail for dealers. year the to the what

you may decrease COVID began it we during to first XX% experience equipment recall, a of fiscal the that effects we As had was XXXX revenues. and quarter the rental in of

May comparative on down new to million of a continued fiscal no in $XXX million XXXX. a revenue equipment trends this fashion. We saw fiscal weakness beginning are rental We and were XXXX. for into year, on now such expenditures in fact, months $X,XXX April strong a run in Capital current That’s and those very basis. on from

them. on are the That’s rotation plan we sales fleet projection $X.X and manufacturers, again situation and rental upon facing COVID for fleet. plan proceeds any now before in microchip availability expected Capital Between this for is to expenditures are to against dependent billion normalize manufacturer approximately that the to delays XXXX. increase the XXXX schedule. to reduce fiscal netting fiscal original Our our was spending capital working truck our

this million from retired proceeds about below million. $XXX So a levels. of Sales year’s sales volume total of sales was fiscal to speaking last for equipment by XXXX last proceeds, year rental $XXX decreased

availability allow unit equipment The expect Should related in volume coming of increased price per filling quarter to improved. sales this quarter fourth the I units. for see of sales another our us However, our year, and would new good for planned fiscal the proceeds self-storage to purchases XXXX. was complete

quarter Looking this our same increased occupied occupied To an you we the rooms reported during that into occupied at to of rooms we call over year. the months. context, count at the previous March XX unit end to year’s in put last XX,XXX compared last increase time had of fourth just XX,XXX had I units

the XX% year. last and increased revenues filling more rooms million April to a pace the were into rooms May. was Storage accelerate of about than We rooms of for continued increased improvement or year is for This pace the filled XX,XXX that which by $XX XX%. under filling $XX or million, have we -- has quarter, XX% and year full full up just the for revenue

blended in all-in rate The third last fourth our from rate this XX% occupancy increase. quarter the year. an row, For to quarter a XX% went experienced year

new added just fiscal the XXXX. over XX,XXX portfolio rooms during We into have

in million. For estate from XXXX and XXXX spent we was development new self-storage That fiscal when warehouse U-Box we and fiscal in of down $XXX invested real acquisitions space. $XXX million

yet that We We million the XX pipeline into square to still in a investments. Our new development. increase fiscal about development not are bit. the bare XXXX square goal going feet have in starting we add at pace of now currently active to feet accelerate acquisition about million are properties our have and X.X minimum a is phase see beginning approximately X.X would to that

worth improve million three $XXX while moving and towing and All major our revenue quarter. the approximately are supplies, storage for April hitches and sales quarter. have saw accessories, of expenses the lines products propane increased for These product of increased Retail XX% quarter. increases during the moving lines volume May. and and In escrow. segment, the operating continuing into to in acquisitions currently We

improvement see year. operating the the an to continued both full in and for margin for our We quarter

our the expenses which Operating revenue margin cost from total in operating quarter If is improvements the total higher of quarter either EBITDA year. you GAAP at usual. $XX than we full million, increased margin or and posted the fourth look for

However, within costs the the entire year. are the fiscal evaluated some of context quarter included better that

the saw For back -- last the increase fiscal operating the increase operating for and the smallest across look year costs. XXXX, years costs was we we it in in you full saw second smallest since XXXX if XX

ownership make costs operating additional to has many increased the the $X for Operating Our that $XXX rotate gone quarter our million able of earnings did call is repair maintenance depreciation our as in expense revenue earnings the relation third and to they rental fleet new quarter quarterly quarterly We increase. to trucks, maintenance had storage some we three to decrease for $XX largest in we have haven’t we up in that were below and reflected miles see quarter the fourth was need portion quarter. on plan. did liability fleet bringing in charge the recognized in the that been preventative the highlighted the checks a of remained increased the at is a the personnel, also has about and as that increased as press there contribution but stock $XXX increases, I to in -- maintenance million. I million, that to alluded by categories, segment our and rate as release in million going employee in being is moving fleet costs. now

hand storage improve and loan cash of totaled the to segment We facilities moving million. that, call the the March, our continue $X,XXX begin at availability from you. to to of position at the Thank and I With operator, question-and-answer the like portion existing back liquidity to call. end cash would and Tom, a

Ralston Zacks. the Please go Thank from comes Steven you. [Operator ahead. with question Instructions] And first

Good morning.

Good morning, Steve.

I there. the like Great going really don’t delve to topline get that. area involved comments into you the at could It and a I your with little and way more am everything’s margin. your cost bit want about seems looking

that had at you going detail and even may increased just stock of just to operating personnel harder go it you amount also Could the ownership out on on expenses, that? program forward seems more abnormal have Looking an like employees. you you that acquire costs the if ex be it into

I’d Yeah. happy too. Sure. be

for total and $XX up absolute million. personnel in the dollars little a over was On probably quarter it the

this So didn’t half cost, was run year. of last of close that which ESOP quarter through to the fourth

of probably cost evaluated XX put months, roughly to -- context. a million the a that’s XX-month was better just that’s $XX in of for kind in and into it So up number maybe context our over the period personal

We also largely bonus but improved our number results. Also compensation calculated some million, probably to had to in field. close that’s an the the $XX was quarters up upon additional based bonus

still picked to to increase absolute of arguably the was overall even $XX our So quarter. with extra revenue, around that -- ESOP in an we numbers personnel $XX if to expense led dollars. it compare just million somewhere million margin It in you up

On repair working maintenance maintenance and and a we up we working get side, we -- are had on to repair are year, little such a costs. busy bit the caught

are third of fourth those Those getting took repair in million. and into some little place maintenance So the the costs out costs arguably quarter up got the the shops quarter. checked in began $XX over a equipment and

non-capitalized like we building still maintenance look to $XX We had, significant property increases down $X about and tune repair million. the for Other million. maintenance, those are utility you quarter are costs about year the taxes, the of at and on cost for up if

Our a our $X retail liability up have Shipping, insurance product been we lot shipping locations. costs more about million. to are

million. were a We probably are more shipping costs so been also to $X U-Boxes, shipping close up just lot

in the the me at uneven expense XX is reasonable say -- But I the of perspective. months So personnel would course our anything across I a is numbers concerns of We a look kind expense think don’t I that. structural see of timing year. that from

are my lack lot you Thank truck took through are the additions metal on Also amount follow-up also to costs that even the details challenges there of of roof. the we fleet, there supply, going know especially the questions. one for of a away well, the and of

quite the impacting there there a of fleet. truck when get on Could comment inventory inflation even some a things So you that? new resolved will of your to bit make seems be be

Sure.

more have next to now we costs have to I going and able so deliver. for We been equipment to years. our this year. when going are Right of be the last the than over think, of up availability about cost The just part XX they cost, year the into equipment for X% per going most are concerned X%

our with the think deal competition, are I to chain. versus uniquely fleet So supply qualified we hiccups in

you as equipment it as the established ages, are much year. this new have we able most. than to, organization in with think, wanted where I as equipment If the saw we repair we don’t deal We get to better

so grow to right is planning -- thousand a fleet are are somewhere are year. the see cancelations of to and plan for model that itself far we this year at little the low available far So would of we fleet the fleshes say that so now they I X,XXX on. the on maybe end and year if a looking maybe rest over will our our it’s few coming out trucks X,XXX current we how trucks early

All like is just self-storage about like, are topline, control, to back trucks to that self-moving the any repositioning because on comments it’s, that’s want especially right. to side, undesirable circle forward-looking capacity. in locations? the you And I and Any good would increasing that but on management then the planning cruise make of to say

last run They want we which point areas. talking have that point getting trucks that, we Well, where tackling getting really here months have months, the to a folks it. the have certainly internally blocking never progress the made you basic. is the everything who areas reposition our three and want to I so basic them. yeah, I would last progress to with say in to made But is they where it’s equipment do. significant down of will you what of I over California. in folks And talked six trucks on Southern where in those our hit

that. that equipment Nashville. We have could be oversupply excess some made still towards area have of areas Texas Florida. relieving have like a need probably still equipment. where in We parts is always of always an something progress equipment to in going some the northeast But the some of in We use there’s little out we bit

I some think good in we progress areas. made have

and place uniquely serve prevent would I anything being this now see year us able in So increases. from that to don’t revenue right customers recognize

Thank you my taking for questions.

Thank you.

Jamie comes Wilen The next Please question with go Wilen ahead. Management. from

Hey, Jason. Nice quarter.

Hi, Thanks. Jamie.

out business. not on quite First you ton Do a to with these take was works you negatives sounded in you and that of end. world you in release little positive. comment future Investor coming this the hire That’s it the things, Relations come would like actually had a you positives encourage in press an an to way I up and two math firm releases. write the put a to press quarter a

So actually achieving during year. there been some have that you you can positives you got accentuate of and the the how past

So I last the truck with obviously Was start of your have year. level than were year this first will profits higher you significantly for rental, truck the ever had in --- rental? were profitability you highest

great a I my fiscal before the say say, don’t to at over that last Certainly years, question. back, That’s top going back have head XXXX. of five the going

absolute like XXXX am as couple other dollars think that might compare a of I both XXXX. we years a I measurement. to peak in fiscal I common have years. yes. to kind had think I am thinking it of, I that thinking size trying am XXXX, against of

Would show your that rental is highest is a good thing business at you and well look the achieved? this how been have to it not have truck ever to

Yeah.

And press included really newswires the a release but CARES didn’t out $X up, pick -- indeed the that the provision. the year’s when year gain for Okay. a last or for the share quarter, tax quarter Act came from just it and

clarity that Indeed as have good might that recognized do should significantly think might as and and have earnings I helped quarter been the looked as them were. your up they were such. profits in more have

I am fleet is pleased at truck about the As I look utilization. what rental, really

driving lot to here the you we look How fleet nearly year. is to been increased and to had has volume, in of down force. double Joe forced the going this achieve said, as are a utilization utilization trucks fleet difference have We in at and do for what always utilization fleet buying in future? you have profits have we been the slow caused

the just is lot to before a got comment whole pretax press I there want to the on Well, of you question there. release.

adhere attempt non-GAAP providing SEC to the am to we sensitive measurements adjusted So what or share. the of people I of and letter per to expects earnings very

So I in say to that’s am one it are saying, what if you. wrong, for But you something going I trouble the Jamie. get I not appreciate

aren’t to help So I I adjusted reading where it it I if am that. sensitive I I that. to place try a the little put can’t earnings. paragraph. in appreciate same people

year. we this utilization the On yes, utilization question, saw improved

blue utilization We get have had more years we so has on utilization we where on a sky per been how much out higher, truck have still basis can of the equipment.

Okay.

a know I capital it have is I requires don’t because these but profit operating cash break depreciation? in after side, self-storage the you the depreciation On things things out, in once amount humongous of we little actual expenditures? realize large the Do of flow there. an we way built are have

after yes, the assumption based depreciation we assets, don’t I against lenders to we best -- out, you upon tell since that I profitable. even those lent do and, reporting money are us Sure. break the is can have how they

on you given that Okay. what XXX capital what you charge an depreciation would normally facility light on basis facility whatever the would self-storage million $X versus could shed be expenditures annual a be? some on annual your unit build, And

It’s I the know tip my tongue, a question. don’t off good Jamie. of that

Okay. But depreciation XX% what’s -- is it or?

we depreciation which maybe we GAAP a from different depreciation depreciation we allowed aggregation those on as we more bit. basis, have On a We of lot us really properties little bit, much to do assets and a of as of benefits conversion that depreciate accelerated as allocate is depreciate. of us we beneficial ago would a us quicker. down that to probably tax years tax possible.\ have I a studies. GAAP we that as But on little On five particular the to the There towards on say, storage slows those as that It front did focus cash that in as assets well allocated focused a conversion our to for very is facility much can cost that law properties, attempt load cost perspective.

of And are self-storage depreciated accelerated life over assets of basis? a of with percentage the then the what the first five years the

have our, at would That one haven’t of don’t -- go my example of question I studies. first at looked I I top of that, not recently Jamie. with of get that recall cost head, I your an off kind segregation that the

Okay.

You were of most said paying in you you I had about believe $XXX pipeline. you tell and this? million location of EBITDA the us Could the acquisition multiple these the for of

-- about as XX of I New nine Mexico, Colorado, last locations off say, those deals am what those as think, top I rate the mean California, really properties. ups in somewhere my probably Florida. would closer on they the storage the X.X% goes, out over or probably and into I would deals that the over X.X% XX translates I projected are is facilities months, on Sure. spread or we the XX thinking say did we That conversion cap existing X% or to Well, are I bought place place. around spread purchases XX all the XX% far that say It’s head X.X%. spread. to and on grounds I for rate projected was all to cap

be -- up ramping an are outside future? you your managing in I is self-storage the more now units, for Okay. program going affiliate that also units so to UHAL

ramping That for been the to -- up now existing that’s affiliate we in place close years. program are XX

seen management, yet. us actual have as third-party doing no, that As not far I

quarters? to where be previous you and into the I truck the on that of to both self-storage at last revenues in been rate said look both the a business, believe Okay. have growth question Very or is And good. both exceeding rental you sides equal then look you May, revenues as April and

complicated the of until from It’s -- XX because we had June here, to June revenue. last get Yeah. March up decreased going through days

up So well, years some maybe by growth, improvement am next ago to to course, two quarter, come the okay, the comparisons in compared be it’s going I outsized time going of to you get what’s and to because, are April show quarter we say, average think to, look does to to years of need with revenue from strong was the compared easy order seeing first an want two May did years last average. ago I two growth improvement and when ago you we and But how still say to if take our we even growth year. real

try work up. no a I have it. that will disappoint we will I something how find you in to to but present to So doubt I of find try doing some way way will that, I

always one And had last mature of -- over one running and the a they of Okay. units self-storage percentage one units, facilities figure you are existing self-storage, the for running what the percentage XX%. done with capacity the

have Yeah. is been That of what But -- of well, locations is -- have kind couple I over that I XX%. going a are so measurements. to

XX% last locations time occupancy were that’s year. The about we at balance locations XXX last was So this right from occupancy. year improvement our locations average sheet, on now of at compared have XX.X%, XX% those at is XX% are to more we occupancy XXX-basis-point over where which

Okay.

see Within like are moving rates occupancy industry little up as are Do the a you rates moving bit it seems as well? that up.

are -- that, rate rents to the I how see estimate would compared before. year maybe Yeah. the year. X% that would rents we And at March, the up, filling I say to based our average stronger growth asking asking the X.X% rents were same end this of some rooms will up Yes. upon

Nicely much, appreciate Jason. you Thank Okay. it. very done. I

Thanks. Jamie. You are welcome,

go Partners. next with Craig Instructions] Artisan question Inman [Operator comes The from Please ahead.

Can you Jason. Hey, me, okay? hear

Yeah.

start on will the I the side guess, CapEx for I trucks.

what year, gross was it that right? You is indicated $X.X billion, this

happen. are thinking what into going to going That’s we it’s Yeah.

Okay.

pre-pandemic obviously, One of business grew X% in of range. the X% that to things, kind the

five And margin revenue And utilization last the so or in op we improvement during forward of which months. the you improvement. [ph] pulled certainly years is nine kind this and growth years four of saw period, the

revenue we we So how situation where too get many a get that waiting to to future building of are and on the kind into we are do come? for I where of we trucks back sense have soon, that dynamic? want not too the

Well, it’s about to act.

we we program. right to things the all two in So needed we accomplish we are to program, get old in normalized have of the in we order the now that trucks rotate trying this because rotation back get weren’t able a trying year ones. to to One to fleet that are

middle where I amount And to nominally. opportunity see mean certain of increase. of a to would get it’s box up be of then on. caught like we going that there’s we the truck So the not to that size have the fleet increase we dramatic that in a an

plan going And that best CapEx right year No. I equipment. we to going would that our $XXX around million. is under are be XXX% to a think that next be base we indication to total somewhere But sure a use we on be growth demand? are are able that

If you stop that that I were and But today. we worked out happy have was slowed. self-storage go we that should it back XX in then months we are that advantage here we pretty and and some that should to buying capacity our the having stop buying that that to of we in environment business the discussions are serendipitously we all trucks think

the have ourselves of an position for and put out, planned sometimes doesn’t, it. take a think hadn’t we that on we I environment good sometimes can into it So works we advantage that

utilization Yeah. OpEx No. and where the the see I just picture through fleeted. we didn’t us were revenue was as It came expand of and a over how gave much.

out. had we years for from worked maybe I now weren’t it’s had just we asking today, am that pressured For returns and don’t But over margins fleeted three pressured and and was I get sense you trying waiting go we fleet thinking are about of a to want to all are that? years how to more three over if just again. back for

how. are and and will to aware of thoughtful we we that be point, are your as Craig, understand - completely I and we about as know we careful trying this

too, to you so. got I know there’s you answer, I play mean, no win as to No. but know, Yeah.

paying take here the attention. we look, have advantage rate -- opening have once were to right? who who the [Audio mean… Yeah. were close trying been that been with other that And normal, That’s chance of I once -- Gap] an people that there’s were

Okay.

Maybe to normal point little we have more have should where bit gotten a what been.

little exactly is. seen activity we you miles I think couldn’t that that tell have I had I more why more an So bit effect. But driven transaction a been think per that’s with and

So right now I are think holding. rates in towns

think way able I take offer -- all convenience credit that rate have one of that benefited on been it get and the we to we for the us.

remembering I returning with much Okay. think, One thing had interestingly I less too up from customers, wanted get the higher of product the dealers -- on kind the pushing damage customers much of am P&C immediately? issues side, the that Is for year-over-year. revenues insurance one correctly paid on the were ended remember, not there and repair very uptake being to is, later, we product

Yeah.

just gap is just And would I -- volumes P&C there, more? thought a a have followed little

is money. little lag a Yeah. month in reporting. three Well, There’s there a

on report to mean, trailing XX-month required a calendar basis. are I basis, on companies insurance a year our So

catching think didn’t I we that were same that… have growth two So quarters -- they are are the that --

I got Yeah. it.

…moving and transactions. storage

start a there’s lag then that on a I little there up of So bit a catch bit. think we little to will

Okay.

and the still our customers, as it, equipment at and look penetration using rate they product. the insurance otherwise, our storage take are on I But rate customers from sharing

concerned too that. not am I So about

I think are thriving. still the programs

maybe think causing is that it to lag little look I bit three-month a of...

Okay.

… was.

so to and single-digit are side, pressure high able labor, on self-storage, development the the up? for ground get those values, sense. rates still just land cap That on makes And you conversions Okay. costs, on

things to been. still mean, have changed in adjust But time, we materially We from I are may completing here, at our projects. have we if this approach. point

more new view bare you time the a by building. into are oftentimes of we with there. we are buying from year are I on think what sober little get today, bit be projects out going costs land the that to are a likely a we actually A

It’s to can between go inflationary now and if transitory hard then. folks lot change or Cost maybe say. you a are some pressures. of these believe, could up So

additional point. We where today but have would our figure are at up we in have to built model, were projected that if costs into from to out things further trend they that then

Okay.

already the So the or still enough is before is stuff because you up developments keep out, gone -- -- but in penciling bought going. rates that have stuff had to the owned

Yeah.

And then doing in more on Is I that self-storage? a are ran am that of terms little up M&A? place hearing right -- -- you sound in

mean, year, like, going it’s yeah, very, to XX very year four from minor to three Well, I year still part.

Okay.

that and that that better pencil stuff Jamie, building is see we you existing And most facilities we the that these is our deals big existing converting cap rates can of part buying. on most and ones, would are are expected time standalone difference them storage complimentary but are I those to footprint. a to are I that the of expensive. that the still of the for couple market the to kind say out much smaller than very And the mentioned

are because That’s the public out that asking, why was big where lot X.X% No. Right. -- is pulling even a I better guys of checkbook. than the their

think… I

Yeah.

facilities. same those And buying not deals… are oftentimes, We these

Yeah.

all the you presence the the rising tide is idea to market, them … then, in for a raises when in it’s going with ships market. that in existing UHAL that mix us

to meant out it’s help well. our facility existing So as

Okay.

to squeezed So you little of got ability get it? out a more

Yeah. If factored It that’s can and staff. something currently X.X%. the helps. has our But we it with into we staff that can buy existing run

That’s factored into the X.X%.

there. you not what see public guys that’s and big can they -- in mean, Because they where the I are operating are Okay.

curious I attractive was just how. are those cap So rates. more

Okay.

the IRS. it -- still think oh, waiting looks from that’s Are in Now, the the I for we K. refund on like that? It

It’s how they it’s of that. a or should is are we listening. money working There’s not they nothing. There But been just are up disagreement with the into government the back. whether go agency, in won’t and federal I with case them on getting there Yes. a get with -- details is disarray just no been challenge.

Okay. Well, more, dividend actually, obviously, the stepped I will quarter. last up ask one you will

decide or cash capital in to think ways you return any returning changes on a to XX-day I allocation basis, will shareholders?

our we see even that point cash you transcript the they -- to of and our Board to of is I paying or now, will do. want hears right. CapEx call, are right amount attention this given that that where always tell very strong will so read the All position we

want that way on we to go say I are on in some to I discussion. think But I the call. not flexibility. that going not either So either that way inclined that. I have in don’t am we say am to

read it, make get we cash. and they business paid in if generate are Well, money, to

up. kick the That’s for appreciate we So all me.

Thanks, Craig.

Thanks.

the now back closing session. turn This for like any to would concludes our remarks. question-and-answer over management conference to I

deferred Thanks, that of Tom. that largely Galbraith email business, confident I capital and expected than do to question. would sure efficient via wanted more was coming self-storage to hold anticipation Is his With and expenditures But So that simply play less you you as your ever and Capital much I of has in was, historically Advisors levels -- one there’s this I case? make continue cash that. I higher -- question been than build answer get your Kindred From have you actually to to answered Steve sheet year? before the storage be are want the submitted I and Are He pure possible? seem the companies? structure for on to Steve. as touch in an balance being efficient with increasing comparable question

first fund probably grow CapEx back us to at that look working We capital those coming expenditures use year, you of into $XXX of going are been cash our it. our the extended to for have If an I fleet time around that of business that million higher somewhere need plan. to capital we of for are anticipating the put of around period level it know a is

were light we million. of acquisitions. was this that $XXX closer million side, Two year $XXX number years to storage ago the On with

we think in up are ever I around end So have in million. year $XXX Development middle as numbers spent two the going acquisitions of a highest to The last year $XXX somewhere those was was far million. we go. spending as

use spend can the here depending how another upon these certainly that quickly will So get increase compared opportunity there projects is from this to land get we and year. into

Craig any It’s million. down capital, work balance to that us the going uses to investment down the debt to us in order time pandemic do to borrowing level the a help lock that some going front to next take good $XXX or for is now that mentioned. think decade. the between So as time low to would cost becomes into in get a that other fund cash on of back I possibility about still we if

question. So can you your hope follow that answers Otherwise Steve I up. that

for our So, I this quarter for call. call. you like of attending very that, all forward and Thank earnings you on to all thank August And much. your with first with speaking again you to Xth look time I’d

for The attending now today’s presentation. concluded. conference is you Thank

now may You disconnect.