CubeSmart (CUBE) 2024 Q2 法說會逐字稿

Thank you for standing by. My name is Kristina, and I will be your conference operator today. At this time, I would like to welcome everyone to the CubeSmart second quarter 2024 earnings call. (Operator Instructions)

謝謝你的支持。我叫克里斯蒂娜，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 CubeSmart 2024 年第二季財報電話會議。（操作員說明）

At this time, I'd like to turn the call over to Josh Schutzer, VP of Finance.

此時，我想將電話轉給財務副總裁 Josh Schutzer。

Thank you, Kristina, good morning, everyone. Welcome to CubeSmart second quarter 2024 earnings call. Participants on today's call include Chris Marr, President and Chief Executive Officer; and Tim Martin, Chief Financial Officer. Our prepared remarks will be followed by a Q&A session. In addition to our earnings release, which was issued yesterday evening, supplemental operating and financial data is available under the Investor Relations section of the company's website at www.cubesmart.com.

謝謝克里斯蒂娜，大家早安。歡迎參加 CubeSmart 2024 年第二季財報電話會議。今天電話會議的參與者包括總裁兼執行長 Chris Marr；和首席財務官蒂姆·馬丁。我們準備好的發言之後將進行問答環節。除了昨天晚上發布的收益報告外，還可以在公司網站 www.cubesmart.com 的投資者關係部分獲取補充營運和財務數據。

The company's remarks will include certain forward-looking statements regarding earnings and strategy that involve risks, uncertainties and other factors that may cause the actual results to differ materially from these forward-looking statements. The risks and factors that could cause our actual results to differ materially from forward-looking statements are provided in documents the company furnishes to filed with the Securities and Exchange Commission, specifically the Form 8-K we filed this morning together with our earnings release filed with the Form 8-K and the Risk Factors section of the company's annual report on Form 10-K.

該公司的言論將包括某些有關收益和策略的前瞻性陳述，這些陳述涉及風險、不確定性和其他可能導致實際結果與這些前瞻性陳述有重大差異的因素。本公司向美國證券交易委員會提交的文件中提供了可能導致我們的實際結果與前瞻性陳述存在重大差異的風險和因素，特別是我們今天早上提交的 8-K 表格以及我們提交的收益報告表格8- K 和公司年度報告表格10-K 的風險因素部分。

In addition, the company's remarks include reference to non-GAAP measures. A reconciliation between GAAP and non-GAAP measures can be found in the second quarter financial supplement posted on the company's website at www.cubesmart.com. I will now turn the call over to Chris.

此外，該公司的言論也提到了非公認會計原則措施。GAAP 與非 GAAP 指標之間的對帳可在公司網站 www.cubesmart.com 上發布的第二季財務補充資料中找到。我現在將把電話轉給克里斯。

Thanks, Josh. Good morning, thank you all for joining the second quarter earnings call. Overall operating trends for CubeSmart during the quarter were largely in line with our expectations. Our same-store portfolio experienced a 1.8% increase in rentals compared to the second quarter of 2023. Vacates in the same-store portfolio were flat to the second quarter of last year, asking rates in that same-store pool began the quarter down roughly 13% to the prior year and ended June negative 9.8% compared to the end of June last year.

謝謝，喬許。早安，感謝大家參加第二季財報電話會議。本季 CubeSmart 的整體營運趨勢基本上符合我們的預期。與 2023 年第二季相比，我們的同店組合租金成長了 1.8%。同店組合的空置率與去年第二季持平，本季開始時同店池的要價比去年同期下降了約 13%，與去年 6 月底相比，6 月底下降了 9.8% 。

Same-store occupancy ended June 91.9%, gaining 150 basis points during the quarter. We historically reach our seasonal peak in early August. Over the last few years, those peaks have been shifting earlier in July and this year, it now appears that peak occurred in late June. This aligns with the macro trends in the economy, housing and the consumer.

截至 6 月，同店入住率為 91.9%，本季成長 150 個基點。從歷史上看，我們在八月初達到季節性高峰。在過去的幾年中，這些高峰一直在 7 月初轉移，而今年，現在看來高峰出現在 6 月下旬。這符合經濟、住房和消費者的宏觀趨勢。

Performance trends by market were consistent with the first quarter. The urban markets of New York, the DMV, District of Columbia, Maryland, Virginia, Northern Virginia and Chicago were all stronger performers across key metrics. While we continue to see softness along the West Coast of Florida in Atlanta and Tucson, Arizona.

按市場劃分的業績趨勢與第一季一致。紐約、DMV、哥倫比亞特區、馬裡蘭州、維吉尼亞州、北維吉尼亞州和芝加哥的城市市場在關鍵指標上都表現強勁。同時，我們繼續看到佛羅裡達州西海岸的亞特蘭大和亞利桑那州圖森的經濟疲軟。

Within New York City, the boroughs continue to outperform the overall MSA as we are still feeling a bit of the residual impact of supply on our Long Island, Westchester and North Jersey stores. Our third-party management program continues to grow and our balance sheet remains in excellent condition.

在紐約市內，各行政區的表現繼續優於整個 MSA，因為我們仍然感受到供應對長島、威徹斯特和北澤西商店的一些殘餘影響。我們的第三方管理計劃持續成長，我們的資產負債表保持良好狀態。

Like to now turn the call over to our Chief Financial Officer, Tim Martin. Tim?

現在請把電話轉給我們的財務長提姆·馬丁。提姆？

Thanks, Chris. Good morning, everyone. Thanks for taking a few minutes out of your day to join us. No big surprises in the second quarter as our results were right in the middle of our expectations, same-store revenues grew 0.3% compared to last year with average occupancy for our same-store portfolio down about 110 basis points to 91.5%.

謝謝，克里斯。大家，早安。感謝您抽出幾分鐘時間加入我們。第二季並沒有什麼大驚喜，因為我們的業績正好符合我們的預期，同店營收比去年成長了 0.3%，同店投資組合的平均入住率下降了約 110 個基點至 91.5%。

Same-store operating expenses grew 4.2% over last year, driven by continued pressure on property insurance as well as a bit of a timing issue related to repair and maintenance costs relative to the timing of those costs last year. So 0.3% revenue growth combined with 4.2% expense growth yielded negative 1.2% same-store NOI growth. And we reported FFO per share as adjusted of $0.64 for the quarter, which was the midpoint of our guidance range.

同店營業費用較去年增加 4.2%，因為財產保險持續面臨壓力，以及與去年這些成本發生時間相關的維修和維護成本相關的時間問題。因此，0.3% 的營收成長加上 4.2% 的費用成長導致同店 NOI 負成長 1.2%。我們報告本季調整後的每股 FFO 為 0.64 美元，這是我們指引範圍的中點。

From an external growth perspective, we opened two development projects in New York for a total cost of $61.8 million. We continued our disciplined approach to finding external growth opportunities on balance sheet. On the third-party management front, we had another productive quarter, adding 39 stores to our platform, bringing us to 879 stores under management at quarter end.

從外部成長的角度來看，我們在紐約開設了兩個開發項目，總成本為 6,180 萬美元。我們繼續採用嚴格的方法在資產負債表上尋找外部成長機會。在第三方管理方面，我們又度過了一個富有成效的季度，在我們的平台上增加了 39 家商店，使我們在季度末管理的商店達到 879 家。

Our balance sheet position remains strong 4.3 times debt to EBITDA and effectively no floating rate exposure. We're really well positioned to support external growth opportunities with our available line of credit, access to liquidity and our leverage capacity.

我們的資產負債表狀況依然強勁，債務佔 EBITDA 的 4.3 倍，而且實際上沒有浮動利率風險。我們確實處於有利位置，可以利用我們的可用信貸額度、流動性和槓桿能力來支持外部成長機會。

Looking forward to the second half of the year. Details of our 2024 earnings guidance and related assumptions were included in our release last night, we narrowed the guidance ranges for same-store revenue expenses and NOI. The high end of our initial revenue guide implied an improvement in the housing market, which hasn't materialized. Taking that along with our performance through the rental season, resulted in us narrowing our revenue guide to our current outlook of negative 0.75% to positive 0.25% growth for the year.

期待下半年。我們昨晚發布的報告中包含了 2024 年盈利指引和相關假設的詳細信息，我們縮小了同店收入支出和 NOI 的指引範圍。我們最初收入指南的高端意味著房地產市場有所改善，但這一情況尚未實現。考慮到這一點，再加上我們整個租賃季的表現，我們將收入指引縮小到目前的預期，即今年負增長 0.75% 至正增長 0.25%。

We improved our expectation for same-store expense growth based on year-to-date results as well as some slightly improved expectations for real estate taxes this year. When you bring those components down to same-store NOI, the result is a narrowing of that range from negative 4% to 0% growth down to the middle of that range, with our revised guidance at negative 3% to negative 1% growth. And then a very similar narrowing of our range on FFO per share as a result.

根據年初至今的業績，我們提高了對同店費用成長的預期，並對今年的房地產稅預期略有提高。當你將這些組成部分降低到同店 NOI 時，結果是該範圍從負 4% 到 0% 的增長縮小到該範圍的中間，我們修訂後的指導為負 3% 到負 1% 的增長。結果，我們對每股 FFO 的區間也進行了非常類似的縮小。

That concludes our prepared remarks. Thanks again for joining us on the call this morning. At this time, Kristina, let's open the call for questions.

我們準備好的演講到此結束。再次感謝您今天早上參加我們的電話會議。現在，克里斯蒂娜，我們開始提問。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Josh Dennerlein, Bank of America.

喬許‧丹納林，美國銀行。

Josh, are you there? Josh, just to make sure your line is not muted on your end. Again, your line is open. Okay, we're going to move on to the next question.

喬什，你在嗎？喬希，只是為了確保您的線路沒有靜音。再次，您的線路已開通。好的，我們將繼續下一個問題。

Spenser Allaway, Green Street Advisors.

史賓塞‧阿拉維，格林街顧問公司。

Thank you, Alan. Thanks for the color and regards to move-in rates during the quarter. Can you provide an update on where move-in rents have trended thus far into 3Q? And if you have any additional color you could share on how ECRIs have been trending and customer sensitivity would be great.

謝謝你，艾倫。感謝您的顏色和本季入住率的問候。能否提供第三季入住租金趨勢的最新資訊？如果您有任何其他顏色可以分享 ECRI 的趨勢和客戶敏感性，那就太好了。

Sure. Thanks, Spencer. So the rate gap in July -- to last year's July moved down about 100 basis points from where we ended June, so high negative 10% range. In terms of the existing customer base -- the existing customer continues to be pretty healthy. We see length of stay, customers who have been with us for longer than two years, continue to be higher than pre-pandemic levels. The auction activity that we see receivables and the offs, while all slightly increasing from what we saw at this point last year, all remain at or in line with pre-COVID levels. So at this point in the year continue to feel positive about the health of our existing customer base.

當然。謝謝，史賓塞。因此，7 月的利率差距與去年 7 月相比，比 6 月底的利率差距下降了約 100 個基點，負利率區間高達 10%。就現有客戶群而言，現有客戶仍然相當健康。我們看到，與我們合作超過兩年的客戶的停留時間繼續高於疫情前的水平。我們看到的應收帳款和折扣的拍賣活動雖然比我們去年此時看到的略有增加，但都保持在或與新冠疫情前的水平一致。因此，在今年的這個時候，我們繼續對我們現有客戶群的健康狀況感到樂觀。

Okay, great. Thanks. That's all for me.

好的，太好了。謝謝。這就是我的全部。

Thanks.

謝謝。

Steve Sakwa, Evercore ISI.

Steve Sakwa，Evercore ISI。

Hi there. Good morning. Thanks for taking my question. I'm Sanket on for Steve. We had a question around expense growth. You guys got a lowered the guidance for expense growth. Can you elaborate more on different competence or where you are seeing less pressure on the expense side?

你好呀。早安.感謝您提出我的問題。我是史蒂夫的桑基特。我們有一個關於費用成長的問題。你們降低了費用增長的指導。您能否詳細說明不同的能力，或是您認為哪些方面的費用壓力較小？

Yeah, thanks for the question. So on our revised and improved expense guidance, part of it is our year to date performance is reflected in there. And then the forward-looking item that has changed a bit is what I mentioned in prepared remarks, which is on the real estate tax line item. We have a bit of a different additional information in three of our large states that gives us our revised outlook for real estate tax growth to not be quite as high as we would have included in our original guidance range.

是的，謝謝你的提問。因此，在我們修訂和改進的費用指導中，部分是我們今年迄今為止的業績反映在那裡。然後，前瞻性的項目發生了一些變化，就是我在準備好的發言中提到的，即房地產稅項目。我們在三個大州獲得了一些不同的附加信息，這些信息使我們對房地產稅增長的預期修正後不會像我們最初的指導範圍那樣高。

Sounds good. Thank you. That's it for me.

聽起來不錯。謝謝。對我來說就是這樣。

Thanks so much.

非常感謝。

Eric Wolfe, Citigroup.

埃里克·沃爾夫，花旗集團。

Thanks. It's Nick Joseph here with Eric. Just follow up on the ECRI question. Is there -- has been any change in customers' willingness to accept the higher ECRIs? We're hearing about softening on consumer, so just curious if you're feeling that at all on the ECRIs.

謝謝。這是尼克約瑟夫和艾瑞克。只需跟進 ECRI 問題即可。客戶接受更高 ECRI 的意願是否有任何變化？我們聽說消費者的態度有所軟化，所以很好奇您是否對 ECRI 有這種感覺。

Yes, Eric, thanks for the question. So we watch that very carefully in terms of the metrics that I responded to the Spencer's question, but as well as looking at behavioral patterns of the existing customer post receiving that rent increase. And we have not seen any discernible change and behavior as those existing customers have received a rate increase. But to your point on where we are with the consumer. Certainly, it's something that we pay very, very close attention to. But at this point, no discernible change.

是的，艾瑞克，謝謝你的提問。因此，我們根據我回答斯賓塞問題的指標非常仔細地觀察這一點，同時也觀察接受租金上漲的現有客戶貼文的行為模式。我們還沒有看到任何明顯的變化和行為，因為現有客戶的費率有所提高。但請談談我們與消費者的關係。當然，這是我們非常非常密切關注的事情。但此時，沒有明顯的變化。

Thanks. That's helpful. And then maybe just on New York City obviously continues to outperform. So just hoping you could talk about the trends you're seeing there. How did you think this outperformance and sustainable?

謝謝。這很有幫助。然後也許只是紐約市顯然繼續表現出色。所以只是希望你能談談你在那裡看到的趨勢。您認為這種優異的表現和永續性如何？

So again, we would expect to see some deceleration in the New York market as we move through the balance of this year, just given where our fundamentals are, as we've discussed across the country, very resilient customer, customer who tends to stay longer. Obviously, rents a smaller amount of space and tends to use that cube on a more regular basis. Also, a nice combination of small business and blocks around our store who are long-term customers.

因此，我們預計，隨著今年餘下的時間，紐約市場會出現一些減速，正如我們在全國範圍內討論的那樣，考慮到我們的基本面，非常有彈性的客戶，傾向於留下來的客戶更長。顯然，租用的空間較小，並且傾向於更頻繁地使用該立方體。此外，小型企業和我們商店周圍街區的長期客戶完美結合。

We certainly see softness in New York as it relates to the locker size, the smallest size cubes. That is where obviously the consumer can remove their possessions and literally carry them down the street if they wish to switch up. And we've seen incredibly aggressive pricing from some of our competitors, particularly in Manhattan on those really small-sized cubes. But outside of that, business continues to be very positive.

我們當然在紐約看到了柔軟性，因為它與儲物櫃的大小（最小的立方體）有關。顯然，如果消費者想要更換，他們可以移除他們的物品，並把它們帶到街上。我們已經看到一些競爭對手的定價非常激進，特別是在曼哈頓的那些非常小的立方體上。但除此之外，業務仍然非常積極。

In terms of by borough, in the Bronx where we have not seen any additional supply since [boy], probably going on now a year and a half, you see good solid kind of mid-six same-store revenue growth in the second quarter of Brooklyn, which in fact does have some residual impact of supply, but has seen some pretty good trends around consumer behavior and demand, actually posted the highest same-store revenue growth of the boroughs in the quarter.

就各行政區而言，在布朗克斯，自[男孩]以來我們沒有看到任何額外的供應，可能已經持續了一年半，你會看到第二季度六家同店收入的穩健增長布魯克林實際上確實對供應產生了一些殘餘影響，但在消費者行為和需求方面出現了一些相當好的趨勢，該地區實際上在本季度公佈了各行政區最高的同店收入增長。

And then in Queens, again, a little bit of a different market. You have a little more single-family homes there, a little bit more space, continues to be a good performer, right behind the Bronx. Staten Island, we only have a small presence there, it's seen some supply. And then Manhattan is competitive, certainly has seen supply. We have our one store there on 55th Street, doing well. But certainly I think Manhattan is a little bit of a different animal at this moment given the supply.

然後在皇后區，又出現了一些不同的市場。那裡有更多的單戶住宅，更多的空間，繼續表現良好，就在布朗克斯後面。史泰登島，我們在那裡只有一小部分存在，但有一些供應。然後曼哈頓具有競爭力，當然也看到了供應。我們在 55 街有一家商店，生意很好。但當然，我認為考慮到供應，曼哈頓目前有點不同。

You move out into the New Jersey, Westchester, Long Island, feeling good that New Jersey is stabilizing after the supply impact, still have a little ways to go in Long Island and Westchester is doing fine. So that's kind of the New York MSA in the boroughs in a nutshell.

你搬到新澤西州、威徹斯特、長島，感覺新澤西在供應影響後正在穩定，感覺很好，在長島還有一點路要走，威徹斯特做得很好。簡而言之，這就是紐約各行政區的 MSA。

Thank you. That's very helpful.

謝謝。這非常有幫助。

Michael Goldsmith, UBS.

麥可‧戈德史密斯，瑞銀集團。

Good morning. Thanks for taking my question. As the new customers seemingly more price sensitive, are you seeing any major changes to conversion rates are balking at the final page of online checkout? And with that, how has top-of-funnel demand trended? Thanks.

早安.感謝您提出我的問題。由於新客戶似乎對價格更加敏感，您是否發現線上結帳的最後一頁對轉換率的重大變化猶豫不決？那麼，漏斗頂部的需求趨勢如何？謝謝。

Yeah. Thanks, Michael. No change in conversion rate as the customer goes through the funnel, whether that be online or in a call to our sales center. So we have seen that be fairly constant over the last three or four quarters from a top of funnel demand perspective. Again, I think it's indicative of how we thought about guidance back in February and kind of where we are today.

是的。謝謝，麥可。當客戶通過管道時，無論是在線上還是致電我們的銷售中心，轉換率都不會改變。因此，從漏斗需求頂部的角度來看，我們看到過去三、四個季度的情況相當穩定。再說一次，我認為這表明了我們對二月份指導的看法以及我們今天的處境。

We're not seeing the demand levels, the improvement in the single-family home for sale market that would have driven us towards the more bullish end of our expectations as we described them back in February. Conversely, were not seeing the combination of factors that would have taken us towards the more bearish end.

我們沒有看到需求水準以及單戶住宅待售市場的改善，而這本來會促使我們朝著我們在二月份所描述的預期更加樂觀的方向發展。相反，我們沒有看到多種因素的結合，這些因素會讓我們走向更悲觀的結局。

So it just sort of navigate as you would expect, given the macro background just a little bit less movement, which is creating a little bit less top of funnel demand, particularly in the markets I called out is soft. The combination of new supply along with a little bit less demand and movement inquiries in that Tampa to Naples corridor has made that West Coast of Florida, particularly challenging here over the last couple of months.

因此，考慮到宏觀背景的變動稍微少一點，它就像你所期望的那樣導航，這導致漏斗頂部的需求減少了一點，特別是在我所說的疲軟的市場中。坦帕至那不勒斯走廊的新增供應加上需求和運輸查詢的減少，使得佛羅裡達州西海岸在過去幾個月中尤其面臨挑戰。

Got it. And as a follow-up, Tim, you feel like other income grew pretty materially during the quarter. Can you walk through what's in that line and what influence the strong growth this quarter? Thanks.

知道了。作為後續行動，蒂姆，您覺得本季其他收入大幅成長。您能詳細介紹一下這方面的內容以及影響本季強勁成長的因素嗎？謝謝。

Thanks, Michael. So a couple of drivers of the growth in other property related income. We've been able to generate some additional fee income across a variety of categories as we continuously refine our fee structure and our approach. Those fees include administrative late and payment convenient fees. We also capture our solar credits on that line item. And so some of that growth reflects the benefits of our expanded solar program. So it's a combination of those things that are leading to some nice growth in that line Item.

謝謝，麥可。因此，其他財產相關收入成長的幾個驅動因素。隨著我們不斷完善我們的費用結構和方法，我們已經能夠在各個類別中產生一些額外的費用收入。這些費用包括行政滯納金和支付便利費。我們也在該行項目上獲取太陽能積分。因此，這種增長在一定程度上反映了我們擴大的太陽能計劃的好處。因此，這些因素的結合導致了該訂單項目的良好成長。

Did that have an influence on the New York market? Because that kind of accelerated pretty materially in the quarter.

這對紐約市場有影響嗎？因為這種情況在本季大幅加速。

Yeah. I mean, I guess on a relative basis that had a little bit more proportionate impact there, but it's somewhat similar trends across the portfolio. The changes that we have made are universal across all markets.

是的。我的意思是，我認為相對而言，這方面的影響更大一些，但整個投資組合的趨勢有些相似。我們所做的改變在所有市場都是普遍的。

Thank you. Very much.

謝謝。非常。

Appreciate it.

欣賞它。

Hang Seng, JPMorgan.

恆生銀行、摩根大通。

Yeah. Hey, guys. You've kept advertising expense relatively stable for the past year or so. I'm just kind of wondering what your thoughts are on that category and why not spend more to potentially get more inbound and more customers?

是的。大家好。在過去一年左右的時間裡，您的廣告費用保持相對穩定。我只是想知道您對該類別有何看法，為什麼不花更多的錢來吸引更多的入境和更多的客戶呢？

Yeah. Thanks for the question. So I think it depends upon the lens that you view that spend through. If you think about our spend and how we do it seasonally, but also as a percentage of revenues, we are fairly aggressive as it relates to our overall marketing spend. In terms of just the seasonal move, obviously, if you look at last year from Q1 to Q2, pretty significant uptick in spend. Similarly, pretty significant uptick in spend this year.

是的。謝謝你的提問。所以我認為這取決於你看待支出的角度。如果您考慮我們的支出以及我們如何季節性支出以及收入的百分比，您會發現我們相當激進，因為它與我們的整體行銷支出相關。就季節性變化而言，顯然，如果你看看去年第一季到第二季的情況，支出就會顯著增加。同樣，今年的支出也顯著增加。

I've said all along, I would expect that when we get to the end of the year, the marketing spend will be up a little bit higher than just pure inflationary levels continue to believe that that will be the case. But ultimately, it's an ROI based decision. We need to see an opportunity to generate those incremental rentals at a cost below the lifetime value of that customer for us to increase spend. And in pockets, we've seen that, and at times we've seen that when it is, we'll be aggressive, and when that opportunity is not there, we've tended to pull back a little bit.

我一直在說，我預計到年底時，行銷支出將比純粹的通膨水平略高一些，我仍然相信情況會如此。但最終，這是一個基於投資報酬率的決定。我們需要找到機會以低於客戶終身價值的成本產生增量租金，以便我們增加支出。在口袋裡，我們已經看到了這一點，有時我們也看到，當機會出現時，我們會變得激進，而當機會不存在時，我們往往會稍微退縮。

Got it. And for my follow-up, if there's been a lot, a lot higher expectations of the Fed cutting rates going into the end of the year, do you think that's enough for street rates potentially break even next year? Or do you think something more needs to happen to that to occur?

知道了。對於我的後續行動，如果人們對聯準會在年底降息的預期非常高，您認為這足以讓街頭利率明年達到收支平衡嗎？或者您認為需要發生更多事情才能實現這一點？

Yeah, that's a great question. Thanks for asking. So you could be in the optimistic camp to say if we really experienced I guess now they're counting on three and maybe one that's 50 basis points between now and the end of the year. There is an optimistic case to say, ultimately does that translate into what drives mortgage rates. And if we see a decline in mortgage rates as a result, there is a pent-up demand. I firmly believe for single-family home transactions.

是的，這是一個很好的問題。謝謝你的詢問。因此，你可能會持樂觀態度，說如果我們真的經歷過這種情況，我想他們現在指望從現在到年底之間會出現 3 個甚至 50 個基點。有一個樂觀的例子可以說，這最終會轉化為推動抵押貸款利率的因素。如果我們看到抵押貸款利率因此下降，就會出現被壓抑的需求。我堅信單戶住宅交易。

And this could be the catalyst or folks to feel a lot better about buying and selling a home, and if that is in fact, true, we may get some assistance late this year in terms of some transactions that may be in the normal history would have taken place in May and June, but take place late in the year, certainly could be a very good setup for and for 2025. So not counting on that, obviously in our expectations that Tim outlined, but certainly today has been an interesting day.

這可能是人們對買賣房屋感覺更好的催化劑，如果事實屬實，我們可能會在今年晚些時候在正常歷史中的一些交易方面獲得一些幫助已經在5 月和6 月舉行，但在今年晚些時候舉行，對於2025 年來說無疑是一個非常好的安排。因此，不指望這一點，顯然在蒂姆概述的我們的期望中，但今天肯定是有趣的一天。

Yeah. Thanks, Great weekend.

是的。謝謝，週末愉快。

Eric LoopCare, Wells Fargo.

Eric LoopCare，富國銀行。

Great. Thanks for taking the question. Maybe you could provide a little more color on what the transaction environment looks like. I know you've talked and past few calls about a pretty wide bid-ask spread, maybe narrowing a little bit, but it seems like most in the industry have said that activity still relatively quiet. So what does your pipeline look like today, where are you seeing cap rates for stabilized assets that fit your underwriting criteria? And in the absence of material M&A in the pipeline, how do you think about other forms of capital return between dividends and buybacks. Thank you.

偉大的。感謝您提出問題。也許您可以提供更多有關交易環境的資訊。我知道您在過去的幾次電話中談到過相當大的買賣價差，也許會縮小一點，但似乎業內大多數人都表示交易活動仍然相對平靜。那麼，您現在的管道是什麼樣的？在沒有重大併購的情況下，您如何看待股利和回購之間的其他形式的資本回報。謝謝。

Yeah, good morning, Eric. Thanks for the question. I wish I had something new and exciting to share with you. But we find ourselves in a very similar situation as we've been discussing here for what seems like many several straight quarters at this point is that is that we had seen and have seen a narrowing of the bid-ask spread. We have -- we've been pursuing some transactions where we're much closer to transacting than we had been. But obviously in our results, you saw that nothing got across the finish line.

是的，早上好，艾瑞克。謝謝你的提問。我希望有一些新的、令人興奮的東西可以與你們分享。但我們發現自己處於非常相似的情況，就像我們在這裡連續幾個季度討論的那樣，我們已經看到並且已經看到買賣差價縮小。我們一直在進行一些交易，我們比以前更接近交易。但顯然，在我們的結果中，您會發現沒有任何東西能夠衝過終點線。

Seasonally, acquisitions in our sector tend to be weighted to the back half of the year as sellers tend to like to put their books together and sell off of higher occupancy levels and peak rates for the year. So back half of the year, still a bit of an unknown, we are actively looking at a lot of different opportunities and there remains a bid-ask spread, albeit narrowed from where it had been several quarters ago.

從季節性來看，我們行業的收購往往會集中在下半年，因為賣家往往喜歡將帳簿放在一起，並在當年較高的入住率和峰值價格的情況下出售。因此，今年下半年，仍然有點未知，我們正在積極尋找許多不同的機會，並且仍然存在買賣價差，儘管較幾個季度前有所收窄。

So as I talked last time we were together here on this call. It feels like we're getting closer, but we're not quite there yet. So really nothing new as it relates to alternative forms of capital. I mean, our dividend policy has been pretty consistent. We look -- we think our payout ratio is it pretty appropriate and we would think about dividend growth over time being plus or minus about the same growth we would see in cash flow.

正如我上次所說，我們在一起參加這次電話會議。感覺我們已經很接近了，但還沒有完全實現。因此，當它與資本的替代形式有關時，確實沒有什麼新鮮事。我的意思是，我們的股利政策非常一致。我們認為我們的派息率非常合適，我們會考慮隨著時間的推移，股息成長將與我們在現金流中看到的相同增長增加或減少。

And our most attractive opportunities are redevelopment opportunities. I wish we had more of them, but we do pursue those. We have a handful of things that we're still working on that are coming out of our storage West acquisition a couple of years ago that are some nice opportunities that we continue to pursue. They're not necessarily needle-moving, but that's an area of focus for us.

我們最有吸引力的機會是重建機會。我希望我們有更多這樣的東西，但我們確實追求這些。我們仍在努力做一些事情，這些事情是我們幾年前收購的 Storage West 所帶來的，這是我們繼續追求的一些很好的機會。它們不一定是針移動的，但這是我們關注的一個領域。

So we continue to underwrite look for great opportunities that are consistent with our investment strategy at returns that make sense for us. And we've been patient, we'll remain patient and are optimistic that. But some things are going to break loose here and hopefully sooner than later.

因此，我們繼續承保尋找符合我們投資策略的絕佳機會，以獲得對我們有意義的回報。我們一直很有耐心，我們將繼續保持耐心，並且對此持樂觀態度。但有些事情將會在這裡發生，而且希望越早越好。

Great. Thanks, Tim.

偉大的。謝謝，蒂姆。

Yep. Thank you.

是的。謝謝。

Juan Sanabria, BMO Capital Markets.

Juan Sanabria，BMO 資本市場。

This is Robin sitting here with Juan. On the FFO guidance, what drives the implied back half acceleration?

這是羅賓和胡安坐在這兒。在 FFO 指導上，是什麼驅動了隱含的後半部加速度？

The back half (inaudible) first half FFO per share versus second half FFO per share?

後半段（聽不清楚）上半年每股 FFO 與下半年每股 FFO 比較？

Yeah.

是的。

Yeah. Typically our seasonality of our business and the strength of the rental season results in second half of the year is almost every year. Higher FFO per share in the back half than in the front half. So that's a pretty seasonal norm for us. And this year is no exception to that norm.

是的。通常，我們的業務季節性和租賃季節的強度幾乎每年都會在下半年產生。後半段每股 FFO 高於前半段。所以這對我們來說是一個相當季節性的常態。今年也不例外。

Okay. And on a same-store revenues, what's the revised assumption on street rates? And when do you expect to hit parity year over year?

好的。就同​​店收入而言，街頭價格的修正假設是什麼？您預計什麼時候能夠實現同比持平？

So street rate question, the gap on street rates year over year and when we expect to hit parity.

因此，街道費率問題是，街道費率逐年差距以及我們預計何時達到平價。

Yeah, (multiple speakers) Yep, thanks. So again, I think when you look at the volatility that we're seeing in, certainly in the market this morning. It just goes to the difficulty in pinpointing that question with any specificity. I think that in our guidance as imply, we continue to track towards kind of where we thought we would be at the beginning of the year, the high end implied that we would see that parity sometime late summer. That's obviously off the table, and I think at this point, given where everything is, it's just going to be incredibly difficult to predict with any precision.

是的，（多個發言者）是的，謝謝。再說一次，我認為當你看到我們所看到的波動時，當然是今天早上市場上的波動。這只是導致很難具體地指出這個問題。我認為，在我們的指導中，我們將繼續朝著我們認為在年初的方向發展，高端意味著我們將在夏末的某個時候看到這種平價。這顯然是不可能的，而且我認為在這一點上，考慮到一切都在哪裡，要以任何精確度進行預測都將是非常困難的。

Our expectation at this point is that we do not see that parity in 2024 when we will see it in 2025, it's incredibly difficult to predict. As I said, if today's movements are indicative of any sort of relief on the mortgage side that could set up a nice backdrop for 2025, but too soon to tell.

我們目前的預期是，2024 年我們不會看到這種平價，而 2025 年我們會看到這種平價，這是非常難以預測的。正如我所說，今天的走勢是否表明抵押貸款方面出現了任何形式的緩解，這可能為 2025 年奠定良好的背景，但現在下結論還為時過早。

Got it. Thank you.

知道了。謝謝。

Thanks.

謝謝。

(Operator Instructions)

（操作員說明）

Todd Thomas, KeyBanc.

托德·托馬斯，KeyBanc。

Hi, thanks. Just a couple of quick questions from me. First, I think, Chris, you said that the peak rental season peaked in towards the end of June, a little bit earlier than in prior years. Any sense on sort of what really drove that specifically? And then sorry if I missed it, but did you speak about occupancy in July and how that compares year over year?

你好謝謝。我只想問幾個簡單的問題。首先，克里斯，你說過租賃旺季在六月底達到頂峰，比往年早一些。對真正推動這現象的具體原因有什麼感覺嗎？如果我錯過了，抱歉，但是您是否談到了 7 月份的入住率以及同比情況如何？

Thanks, Todd. So I think one of the reasons certainly has to tie back to the housing market and a dearth of transactions there. I think again, you typically see that home moved drag into July historically towards the end of July. And I think what we've seen over the last couple of years as the housing market has been slower than historical norms, it's just keep pushing that seasonality a little bit earlier into the process. Our occupancy as of July 31, was 91.4%.

謝謝，托德。因此，我認為原因之一肯定與房地產市場和交易稀缺有關。我再次想，從歷史上看，您通常會在七月底看到房屋搬到七月。我認為，過去幾年我們所看到的情況是，房地產市場的速度慢於歷史正常水平，只是不斷將季節性推向更早的階段。截至 7 月 31 日，我們的入住率為 91.4%。

Okay. And what's that look like year-over-year.

好的。與去年同期相比，情況如何？

Gap to July 31, of last year, it was down 1.3%.

與去年7月31日相比，下降了1.3%。

Okay. That's helpful. And then I just wanted to go back to the other property income. Tim you talked about of the components there, some of the fees, the solar credits. I think your tenant protection fees run through that too. Is that all in the same store your comments about some of that or was that or just regarding the consolidated other property income line?

好的。這很有幫助。然後我只想回到其他財產收入。提姆，您談到了那裡的組件、一些費用、太陽能積分。我認為你的房客保護費也包含在內。您對其中一些的評論是否都在同一家商店中，或者只是關於合併的其他財產收入線？

My comments will focus on the same-store component, the tenant insurance that you referred to is not in our same store. Fees -- the variety of fees that I mentioned, the solar credit are in same store and they were what I was alluding to tenant insurance not so much.

我的評論將集中在同店部分，您提到的租戶保險不在我們同一家店。費用——我提到的各種費用，太陽能信貸都在同一家商店，它們是我所提到的租戶保險的費用。

Okay, got it. And then I'm just curious about the growth in that line for the same-store. In the first quarter, there was not really a big contribution to same-store revenue growth. This quarter, it did have a big impact and it increased $2 million sequentially.

好，知道了。然後我只是好奇同一家商店的該系列產品的成長情況。第一季度，同店營收成長的貢獻其實並不大。本季度，它確實產生了很大的影響，環比增加了 200 萬美元。

So had a decent impact on the growth rate year-over-year, but also just the run rate in general. Did something happen specific to the quarter and is it expected to be maintained at this level moving forward or should we reflect that in the run rate going forward and think about an adjustment heading into the third quarter?

因此，這對同比增長率產生了相當大的影響，但也對整體運行率產生了相當大的影響。本季度是否發生了特定的事情，預計未來會維持在這個水平，還是我們應該在未來的運行率中反映這一點，並考慮進入第三季度進行調整？

Yeah, I think many of the changes that we made were not one-time changes that are going to be a second quarter blip up and then return back to prior levels. Our expectation is that line item should, there's going to be seasonality trends to it. But that line item year-over-year, we should see some continued outsized growth in that line item over the next couple of quarters.

是的，我認為我們所做的許多改變都不是一次性的，不會在第二季度突然出現然後回到之前的水平。我們的期望是訂單項目應該有季節性趨勢。但與去年同期相比，我們應該會在接下來的幾季看到該訂單項目持續大幅成長。

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

好的。好的。這很有幫助。謝謝。

Sure.

當然。

Brendan Lynch, Barclays.

布倫丹·林奇，巴克萊銀行。

Great. Thanks for taking my question. You mentioned in the prepared remarks about the peak season, or the demand peaking in June versus the traditional August. If you were to expect this to occur next year, how would it inform your street rate and ECRI approach?

偉大的。感謝您提出我的問題。您在準備好的評論中提到了旺季，或者說六月與傳統八月的需求高峰。如果您預計明年會發生這種情況，它將如何影響您的街道費率和 ECRI 方法？

Yes, thanks for the question. I think the concept then is when do you have that customer peak, that then translates primarily into occupancy and rent rate for new customers and then when does that begin its seasonal decline? As we think about the drivers of that for next year, absolutely, it will have to inform where we believe that will occur. That then translates into how do we see the seasonal trends in the back half of the year in terms of both that occupancy and that rate.

是的，謝謝你的提問。我認為這個概念是什麼時候達到客戶高峰，然後主要轉換為新客戶的入住率和租金率，然後什麼時候開始季節性下降？當我們考慮明年的驅動因素時，絕對必須告訴我們我們認為這種情況將會發生在哪裡。然後，這轉化為我們如何看待下半年入住率和比率的季節性趨勢。

So it's a factor in terms of how we would think about budgeting for our stores in 2025. But I think again, its -- we're going to be fortunate to have more information here, August, September, October, before we have to kind of dig into those budgets.

因此，這是我們如何考慮 2025 年商店預算的因素。但我再次認為，在我們必須深入研究這些預算之前，我們將很幸運能夠在八月、九月、十月獲得更多資訊。

Okay. That's helpful. Thank you. And then on the fees that you're pushing on clients, how much more aggressive do you think you can be before facing customer resistance? I would imagine this is something that is AB tested to kind of fill out where customers are? And maybe just a related question. At what point do customers become aware that they're going to be facing these fees relative to when they're signing up for a unit.

好的。這很有幫助。謝謝。然後，在您向客戶收取的費用方面，您認為在面臨客戶阻力之前您可以採取多積極的態度？我想這是經過 AB 測試來填滿客戶所在位置的東西？也許只是一個相關的問題。客戶什麼時候會意識到他們將面臨這些與他們簽約單位時相關的費用。

Yeah, I think the fees are disclosed and increasingly disclosed as it relates to fees that are, again, a variety of things ranging from the administrative fee that a customer pays in their first, when they initially rent. And that really ties in with when you think about an administrative fee, it is really part and parcel to the initial rental. It gets mixed in with rental rate and how you think about that, how you think about any type of promotion or discount, administrative fee, all that stuff goes together for us. It happens to be recorded on a different line item, but it's all part of that initial cost which is disclosed and very available for a customer to understand.

是的，我認為這些費用已經被披露，而且越來越多地被披露，因為它涉及到各種費用，包括客戶最初租賃時首先支付的管理費。當您考慮管理費時，這確實與初始租金的重要組成部分有關。它與租金率以及您對租金的看法、您對任何類型的促銷或折扣、管理費的看法混在一起，所有這些東西對我們來說都是在一起的。它恰好記錄在不同的行項目上，但它都是初始成本的一部分，並且已公開且非常容易讓客戶理解。

The other fees that are late fees or payment convenience fees are all disclosed at the time and are highly visible to the customer from a how much can the customer take. I mean, that's consistent with anything else as it relates to how much can we push on rate for new customers. What are the opportunities to increase rates to existing customers.

其他費用，如滯納金或支付便利費，均在當時披露，並且從客戶可以收取的金額中對客戶高度可見。我的意思是，這與其他任何事情都是一致的，因為它關係到我們可以為新客戶提高多少價格。有哪些機會可以提高現有客戶的費率？

These just fall into that same category, you're constantly looking for continued refinement and optimization across all of those different revenue streams. And we found some opportunities to be a little bit more efficient, a little bit more profitable on some of those line items, which is what you're seeing flow through into the results.

這些都屬於同一類別，您不斷地在所有這些不同的收入流中尋求持續的改進和優化。我們發現了一些機會，可以在其中一些訂單項目上提高效率，提高利潤，這就是您所看到的結果。

Great. Thank you.

偉大的。謝謝。

Appreciate it.

欣賞它。

Josh Dennerlein, Bank of America.

喬許‧丹納林，美國銀行。

Yeah, Hey, guys. Thanks for the time. I guess I'm just trying to think through like the evolution of the in-place rent per occupied square foot from here. I guess moving rates, it seems like they're under pressure, but the existing customer seems fine. So just kind of any kind of like gives or takes we should think about on how this metric goes up and down from here?

是的，嘿，夥計們。謝謝你的時間。我想我只是想思考一下從這裡開始每平方英尺的就地租金的演變。我猜想移動費率，似乎他們面臨壓力，但現有客戶似乎很好。因此，無論是給予或索取，我們都應該考慮這個指標如何從這裡上升和下降？

Yeah, Josh, ultimately for the industry, we need to see the rate for the new customer moving in go up. And again, absent seeing that you're going to see overall results and then that continue to be in line with what we've experienced thus far this year. So again, what's going to drive that is a combination of things. Certainly market forces and competition are one, supply is another and consumer health and behavior, third and demand drivers afford. So some combination of those four factors will ultimately lead to, again this closing of the gap between current rates for new customers moving in and where they had been last year.

是的，喬什，最終對於這個行業來說，我們需要看到新客戶的入住率上升。再說一遍，沒有看到你將看到整體結果，然後繼續與我們今年迄今為止所經歷的情況一致。再說一遍，推動這一趨勢的是多種因素的結合。當然，市場力量和競爭是其中之一，供應是另一個，消費者的健康和行為是第三，需求驅動因素是可以負擔的。因此，這四個因素的某種結合最終將再次導致新客戶目前的入住率與去年的水平之間的差距縮小。

And again, we've had the question as to when that'll happen, don't quite have that crystal ball refined, but it will. And at that point, then you will go back to having that nice blend of new customers coming in at a higher rate year over year and the growth that you get from that, that also then tends to have a bit of a positive effect on the asking increases for the existing customer base and then you kind of get back into that 20-year trend of self-storage revenue growth. But ultimately, we need to see the combination of those four things work in some way together to get that new customer rates up.

再說一次，我們有一個問題，什麼時候會發生，水晶球還沒有完全完善，但它會發生。到那時，您將重新獲得新客戶以逐年更高的速度進入的良好組合以及從中獲得的增長，這也往往會對要求增加現有客戶群，然後你就會回到20 年來自助存儲收入增長的趨勢。但最終，我們需要看到這四件事以某種方式結合在一起，以提高新客戶的價格。

Okay. I appreciate that. That's good for me. Thank you.

好的。我很感激。這對我有好處。謝謝。

Thank you.

謝謝。

(Operator Instructions) Thank you. We have no further questions. I'll turn the call back over to Chris Marr.

（操作員說明）謝謝。我們沒有其他問題了。我會把電話轉回給克里斯馬爾。

Thank you. Thanks, everyone, for participating in this second quarter call. We look forward to seeing many of you in the early fall, and we'll speak to everyone again when we report from the third quarter. Thank you and enjoy the rest of the summer.

謝謝。感謝大家參與第二季的電話會議。我們期待在初秋見到你們中的許多人，當我們報告第三季時，我們將再次與大家交談。謝謝你，享受夏天剩下的時光。

Thank you. This does conclude today's conference call. You may now disconnect. Have a great day.

謝謝。今天的電話會議到此結束。您現在可以斷開連線。祝你有美好的一天。