Extra Space Storage Inc (EXR) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Q3 2023 Extra Space Storage and Earnings Conference Call. (Operator Instructions) Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jeff Norman. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 2023 年第三季額外空間儲存和收益電話會議。 （操作員指示）請注意，今天的會議正在錄製中。我現在想把會議交給今天的發言人傑夫諾曼。請繼續。

Thank you, Kevin. Welcome to Extra Space Storage's Third Quarter 2023 Earnings Call. In addition to our press release, we have furnished unaudited supplemental financial information on our website. Please remember that management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act. Actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with the company's business. These forward-looking statements are qualified by the cautionary statements contained in the company's latest filings with the SEC, which we encourage our listeners to review.

謝謝你，凱文。歡迎參加 Extra Space Storage 2023 年第三季財報電話會議。除了我們的新聞稿外，我們還在我們的網站上提供了未經審計的補充財務資訊。請記住，管理層準備好的評論和對您問題的回答可能包含《私人證券訴訟改革法案》中定義的前瞻性陳述。由於與公司業務相關的風險和不確定性，實際結果可能與我們的前瞻性陳述中明示或暗示的結果有重大差異。這些前瞻性陳述受到該公司向美國證券交易委員會提交的最新文件中包含的警示性陳述的限制，我們鼓勵聽眾仔細閱讀這些陳述。

Forward-looking statements represent management's estimates as of today, November 8, 2023. The company assumes no obligation to revise or update any forward-looking statements because of changing market conditions or other circumstances after the date of this conference call.

前瞻性陳述代表管理階層截至今天（2023 年 11 月 8 日）的估計。本公司不承擔因本次電話會議日期後市場狀況或其他情況變化而修改或更新任何前瞻性陳述的義務。

I would now like to turn the call over to Joe Margolis, Chief Executive Officer.

我現在想將電話轉給執行長喬·馬戈利斯 (Joe Margolis)。

Thanks, Jeff, and thank you, everyone, for joining today's call. We had a busy third quarter. In July, we successfully completed our merger with Life Storage adding over 1,200 stores to our portfolio and over 2,300 new members to team Extra Space. The transition is going very smoothly, and I am proud of the teamwork and innovation our employees are demonstrating through the merger.

謝謝傑夫，也謝謝大家參加今天的電話會議。我們度過了忙碌的第三季。 7 月，我們成功完成了與 Life Storage 的合併，為我們的投資組合增加了 1,200 多家商店，並為 Extra Space 團隊增加了 2,300 多名新成員。過渡進展非常順利，我為我們的員工透過合併所展現的團隊合作和創新感到自豪。

Our combined portfolio of 3,651 stores provides greater diversification, stability, revenue opportunities, and operational efficiencies that I believe will improve our property level and external growth for years to come. From a performance standpoint, the third quarter was generally in line with expectations. Revenue growth moderation for the Extra Space same-store pool flattened meaningfully during the third quarter and our 1.9% same-store revenue increase was modestly ahead of our expectations. Revenue growth was driven by high average occupancy in the quarter of 94.4%. Existing customer behavior continued to be strong with solid length of stay, muted vacates and continued acceptance of rate increases.

我們由 3,651 家商店組成的組合組合提供了更大的多元化、穩定性、收入機會和營運效率，我相信這將在未來幾年改善我們的財產水平和外部成長。從業績來看，第三季整體符合預期。第三季 Extra Space 同店營收成長放緩，同店營收成長 1.9%，略高於我們的預期。本季 94.4% 的高平均入住率推動了營收成長。現有的客戶行為依然強勁，停留時間較長，退房率較低，且持續接受加價。

Rental volume was also steady year-over-year, albeit at lower new customer rates. Expenses came in higher than our estimates, offsetting the revenue outperformance. This was driven by higher-than-expected property tax increases. The higher-than-projected expenses resulted in a modest miss in our same-store NOI, which was offset by a beat in G&A, resulting in core FFO of $2.02. This was in line with our internal forecast. Short-term dilution from the merger with LSI was consistent with our estimates for the third quarter. We have achieved our target G&A synergy run rate of $23 million and we'll continue to gain additional synergies as we further integrate the team, platform and portfolio.

儘管新客戶率較低，但租賃量也較去年同期穩定。費用高於我們的預期，抵銷了收入的優異表現。這是由於財產稅增幅高於預期所致。高於預期的費用導致我們的同店 NOI 略有下降，但 G&A 的成長抵消了這一影響，導致核心 FFO 為 2.02 美元。這符合我們的內部預測。與 LSI 合併帶來的短期稀釋與我們對第三季的預測一致。我們已經實現了 2300 萬美元的 G&A 協同運行率目標，隨著我們進一步整合團隊、平台和產品組合，我們將繼續獲得額外的協同效應。

We have also started to realize property level revenue synergies as we move existing LSI customers to rates more consistent with the Extra Space portfolio. The incremental FFO contribution from these improvements is partially offset initially by lower occupancy at the LSI properties due to catch up auctions and lower new customer rates to drive rental demand. However, once we achieve stronger new customer rates and build occupancy, the benefit to FFO will ramp up and we remain confident we will reach our total expected synergy run rate in the first quarter of 2024.

隨著我們將現有 LSI 客戶的費率與 Extra Space 產品組合更加一致，我們也開始實現房地產層面的收入綜效。這些改進帶來的增量 FFO 貢獻最初被 LSI 物業的入住率下降（由於趕上拍賣和降低新客戶率以推動租賃需求）所部分抵消。然而，一旦我們實現更強勁的新客戶率和入住率，FFO 的效益將會上升，我們仍然有信心在 2024 年第一季達到預期的整體協同運作率。

We have slowed our acquisition pace given the LSI merger, but we continue to be very active in third-party management, adding 49 new stores gross in the third quarter, not including the LSI managed stores. Year-to-date, outside of the LSI merger, we have added 151 stores gross to the managed platform with only 17 departures. We have also continued to have steady bridge loan volume despite the difficult interest rate environment.

鑑於 LSI 合併，我們放慢了收購步伐，但我們在第三方管理方面繼續非常積極，第三季新增 49 家門市，其中不包括 LSI 管理的門市。今年迄今為止，除了 LSI 合併之外，我們已向託管平台添加了 151 家商店，其中只有 17 家出發。儘管利率環境困難，我們仍持續維持穩定的過橋貸款量。

In short, property level performance is in line with expectations. The integration of the Life Storage properties is on track, and we continue to be active in our capital-light external growth channels. As a result, we have tightened our annual core FFO guidance for 2023, maintaining the same midpoint. We will remain focused on maximizing performance at all of our stores and executing our integration plan in the fourth quarter. As we have interacted with our shareholders throughout the quarter, it has been hard to miss the serious concerns people have about wars, the economy, interest rates, consumer health, sector demand and our stock price. We absolutely share those concerns.

簡言之，房地產層面的表現符合預期。 Life Storage 資產的整合已步入正軌，我們將繼續積極參與輕資本外部成長管道。因此，我們收緊了 2023 年年度核心 FFO 指導，維持相同的中點。我們將繼續專注於最大限度地提高所有商店的業績並在第四季度執行我們的整合計劃。當我們在整個季度與股東互動時，很難忽視人們對戰爭、經濟、利率、消費者健康、產業需求和我們股價的嚴重擔憂。我們絕對有同樣的擔憂。

That said, I think it is important to step back and not lose sight of where we stand today. Storage has consistently proven to be a remarkably durable asset class and Extra Space Storage has the largest and most diverse portfolio in the industry. Occupancy averaged over 94% in the quarter, and it remains very healthy. New customer rates, while not as strong as last year, remained 12% higher than 2019 pre-pandemic levels and customer health remains strong. New supply continues to moderate and the headwinds to future new development are substantial and increasing. Our external growth drivers continue to fire on all cylinders, and I am confident in our ability to further scale our platform. And finally, I believe we have the strongest team and operating platform in the industry. It is still a great time to be in storage, and I believe the future of Extra Space remains very bright.

也就是說，我認為重要的是退後一步，不要忽視我們今天的立場。儲存已被證明是一種非常耐用的資產類別，而 Extra Space Storage 擁有業內最大、最多樣化的產品組合。本季平均入住率超過 94%，仍然非常健康。新客戶率雖然不如去年那麼強勁，但仍比 2019 年大流行前的水平高出 12%，而且客戶健康狀況依然強勁。新供應持續放緩，未來新開發的阻力巨大且不斷增加。我們的外部成長動力持續全速運轉，我對我們進一步擴展平台的能力充滿信心。最後，我相信我們擁有業界最強大的團隊和營運平台。現在仍然是儲存的好時機，我相信 Extra Space 的未來仍然非常光明。

I will now turn the call over to Scott.

我現在將把電話轉給斯科特。

Thanks, Joe, and hello, everyone. As Joe mentioned, we would characterize the third quarter as in line, meeting our internal FFO projections, the modest miss in property NOI due to higher noncontrollable expenses was offset by beats in interest income and G&A. Achieved rates to new customers were down an average of 11.8% year-over-year in the third quarter, gapping widest in August and tightening modestly in September and further in October to a negative 10.8%. Given the easier September and October comps, we would have liked to have seen that gap narrow more, but we continue to have a headwind from new customer rates.

謝謝喬，大家好。正如 Joe 所提到的，我們將第三季度描述為符合我們的內部 FFO 預測，由於不可控制費用增加而導致的財產 NOI 的小幅下滑被利息收入和一般管理費用的超預期所抵消。第三季新客戶獲得率平均年減 11.8%，其中 8 月差距最大，9 月小幅收緊，10 月進一步收窄至負 10.8%。鑑於 9 月和 10 月比較容易，我們希望看到差距進一步縮小，但我們仍面臨新客戶費率的不利影響。

Fortunately, lower year-over-year vacates and strong existing customer health continues to more than offset the headwind and revenue performance as a whole continues to hold up. Weighing these factors as we forecast revenue for the fourth quarter, new customer rate improvement hasn't been compelling enough for us to raise the high end of our same-store revenue guidance range, but existing customer performance has been steady enough to remove our most cautious scenarios from our full year revenue guide. As a result, we increased the bottom end of our same-store revenue by 25 basis points to a range of 2.75% to 3.5% for the full year.

幸運的是，同比下降的空缺率和強勁的現有客戶健康狀況繼續抵消了不利因素，整體收入表現繼續保持強勁。在我們預測第四季度收入時權衡這些因素，新客戶率的改善不足以讓我們提高同店收入指導範圍的上限，但現有客戶表現已經足夠穩定，足以消除我們最我們的全年收入指南中的謹慎情景。因此，我們將全年同店營收下限提高了 25 個基點，達到 2.75% 至 3.5% 的範圍。

On the expense front, we felt greater-than-expected pressure from property taxes, primarily in Illinois, Georgia and Florida. We also had significant increases in property insurance premiums. We updated our annual same-store expense guidance to recognize actual Q3 expenses as well as a higher run rate for property taxes resulting in a revised same-store expense range of 4% to 5% for the full year. This results in a tightening of the same-store NOI range of 25 basis points at both the high end and the low end of the range, maintaining a midpoint of 2.75%.

在支出方面，我們感受到財產稅的壓力大於預期，主要是在伊利諾州、喬治亞州和佛羅裡達州。財產保險保費也大幅增加。我們更新了年度同店費用指引，以確認第三季度的實際費用以及更高的財產稅運行率，從而將全年同店費用範圍調整為 4% 至 5%。這導致同店 NOI 範圍的高端和低端均收緊 25 個基點，維持 2.75% 的中點。

Turning to the balance sheet. We drew on our line of credit and an undrawn term loan of $1 billion to pay closing costs and to retire Life Storage's debt that we did not assume. With the merger, we assume $2.4 billion in Life Storage's publicly traded bonds at the same coupons and maturities. With the assumption of these bonds, we mark the debt to market, and we have broken out the noncash interest expense, which has been added back to core FFO.

轉向資產負債表。我們利用信用額度和 10 億美元未提取的定期貸款來支付結算費用並償還 Life Storage 未承擔的債務。合併後，我們假設 Life Storage 公開交易的債券規模為 24 億美元，票面利率和期限相同。假設這些債券，我們將債務標記為市場，並且我們已經細分了非現金利息費用，該費用已添加回核心 FFO。

Upon completion of the merger and the assumption of debt, S&P Global upgraded its credit rating on Extra Space to BBB+, which will drive future interest expense savings for the company. Details to our updated debt stack and revised interest rate spreads on our credit facility are included in our supplemental.

合併完成並承擔債務後，S&P Global 將 Extra Space 的信用評級提升至 BBB+，這將推動該公司未來節省利息費用。我們更新的債務堆疊和修訂後的信貸額度利差的詳細資訊包含在我們的補充資料中。

Last quarter, we provided freestanding guidance for Extra Space Storage and then provided separate details related to the anticipated dilution associated with the merger. In last night's earnings release, we updated our 2023 FFO guidance ranges for the combined portfolio. The same-store performance ranges I previously referenced applied to the Extra Space same-store pool as we have not added the Life Storage properties to the pool -- Life Storage stores to the pool. Separate disclosures related to the performance of the Life Storage stores are included in our supplemental financials. Our core FFO range, which includes the short-term dilutive impact of the LSI merger as well as an add-back for transaction and transition expenses was tightened to $8.05 to $8.20 per share, maintaining the previous midpoint. We have also provided updates to key assumptions for the combined company.

上季度，我們為額外空間儲存提供了獨立的指導，然後提供了與合併相關的預期稀釋相關的單獨細節。在昨晚的財報發布中，我們更新了合併投資組合的 2023 年 FFO 指導範圍。我之前引用的同儲存效能範圍適用於額外空間同儲存池，因為我們尚未將 Life Storage 屬性新增至池中 - Life Storage 儲存到池中。與 Life Storage 商店業績相關的單獨揭露包含在我們的補充財務中。我們的核心 FFO 範圍（包括 LSI 合併的短期攤薄影響以及交易和過渡費用的加回）收緊至每股 8.05 美元至 8.20 美元，維持先前的中點。我們也提供了合併後公司關鍵假設的更新。

As Joe mentioned, our performance was in line with our expectations coming into the quarter and the integration of Life Storage remains on track. We continue to believe storage as an asset class is among the most resilient in the REIT space. We believe our operating platform and highly diversified portfolio has become even stronger through the Life Storage merger and it is positioned for outsized future growth.

正如 Joe 所提到的，我們的業績符合我們對本季的預期，而 Life Storage 的整合仍在按計劃進行。我們仍然相信儲存作為一種資產類別是房地產投資信託領域最具彈性的資產類別之一。我們相信，透過 Life Storage 合併，我們的營運平台和高度多元化的投資組合變得更加強大，並為未來的大幅成長做好了準備。

And with that, Kevin, let's open it up for questions.

凱文，接下來讓我們開始提問。

(Operator Instructions) Our first question comes from Michael Goldsmith with UBS.

（操作員說明）我們的第一個問題來自瑞銀集團的麥可‧戈德史密斯。

Your updated same-store revenue outlook implies positive fourth quarter same-store revenue growth of 0.8% at the midpoint. And you took the low end of the full year guidance range up slightly. So should we interpret the increase in guidance is confidence that you will hit this range? And what have you seen from street rates in October and expect in November and December to meet this range?

更新後的同店營收前景意味著第四季同店營收中點將成長 0.8%。您將全年指導範圍的低端略有上調。那麼，我們是否應該將指導的增加解釋為您有信心達到這個範圍？您從 10 月的街頭價格中看到了什麼，並預計 11 月和 12 月會達到這個範圍？

Yes, Michael, your assumptions are correct. It does imply at the midpoint that it's positive for the entire quarter. And we obviously have October, largely, we know what October was. And so we're confident that we should hit those numbers.

是的，邁克爾，你的假設是正確的。它確實意味著在中點它對整個季度都是積極的。顯然我們有十月，很大程度上，我們知道十月是什麼。因此，我們有信心能夠達到這些數字。

Got it. And my next question is about how Life Storage portfolio is responding to the Extra Space strategy in part of the revenue synergies from the deal is based on the ability to roll out the Extra Space, rental growth algorithm. So can you walk through how the Life Storage customer is responding to lower street rates and also how the Life Storage customer is responding to the elevated ECRIs?

知道了。我的下一個問題是 Life Storage 產品組合如何回應 Extra Space 策略，該交易的部分收入協同效應基於推出 Extra Space 租金成長演算法的能力。那麼，您能否介紹一下 Life Storage 客戶如何應對較低的街道費率以及 Life Storage 客戶如何應對較高的 ECRI？

Great question. So the short answer is everything is going as planned. We have begun sending out the ECRI notices to the Life Storage customers, and they are accepting them at the same rate or maybe even slightly better rate than Extra Space customers. We have headwinds of catch-up auctions and the slightly elevated vacates from the ECRI notices, the occupancy on the LSI portfolio. So we have discounted rates on the web, in particular, to protect that occupancy while we do that. And that's been very successful, and we've actually seen a slight uptick in occupancy in the LSI portfolio. So we're really happy with how the strategy is playing out, and we continue to monitor it and make sure there's no bumps in the road.

很好的問題。所以簡短的回答是一切都按計劃進行。我們已經開始向 Life Storage 客戶發送 ECRI 通知，他們的接受率與 Extra Space 客戶相同，甚至可能稍微好一點。我們面臨追趕拍賣的不利因素，以及 ECRI 通知中的空置率略有上升，以及 LSI 投資組合的佔用率。因此，我們在網路上提供折扣價格，特別是為了在我們這樣做時保護入住率。這非常成功，我們實際上看到 LSI 產品組合的佔用率略有上升。因此，我們對該策略的實施感到非常滿意，並且我們將繼續對其進行監控並確保道路上沒有任何障礙。

Next question comes from Jeffrey Spector with Bank of America.

下一個問題來自美國銀行的傑弗裡·斯佩克特。

Joe, you mentioned that as you're integrating and now operating the LSI assets you're using street rate to build up that occupancy. How should we think about that over the coming months? How long will that take place? And given the existing overlap with the EXR portfolio, is that creating some of the drag, let's say, on street rate in markets?

Joe，您提到，當您正在整合並經營 LSI 資產時，您正在使用街道費率來建立佔用率。在接下來的幾個月裡我們該如何考慮這個問題？這會發生多久？考慮到與 EXR 投資組合現有的重疊，這是否會對市場的街價造成一些拖累？

So I might describe it a little differently. We're using rate, I think, to protect occupancy more. We don't really expect to make significant gains in occupancy until we're done correcting the rates and getting through the auctions. So we gained some occupancy, but it's certainly not spiking, and we probably don't expect that until next rental season.

所以我可能會稍微不同地描述它。我認為，我們正在使用費率來更多地保護入住率。在我們完成價格修正並完成拍賣之前，我們並不真正期望在入住率方面取得顯著的成長。因此，我們獲得了一些入住率，但肯定不會飆升，而且我們可能預計要到下一個租賃季節才會出現這種情況。

With respect to effect on Extra Space stores, that's very market specific, and I don't think very significant.

至於對 Extra Space 商店的影響，這是非常特定於市場的，我認為這不是很重要。

And then on the existing customer, you mentioned again the strength there. Can you characterize pricing power today versus, let's say, 6 months ago? And then can you quantify the length of stay versus the vacates?

然後關於現有客戶，您再次提到了那裡的實力。您能否描述一下今天與 6 個月前相比的定價能力？然後你能量化停留時間與離開時間的關係嗎？

So I don't think pricing power to new customers is significantly different than 6 months ago. And I guess I'd say the same thing about pricing power to existing customers, which is very strong. It is also the same, right? We're not seeing a greater amount of ECRI induced vacates. And I'm sorry, what was the second part of the question?

因此，我認為新客戶的定價能力與 6 個月前相比沒有顯著差異。我想我也會對現有客戶的定價權說同樣的話，這是非常強大的。也是一樣的吧？我們沒有看到 ECRI 導致的空缺數量增加。抱歉，問題的第二部分是什麼？

If you were able to quantify the vacates versus the length of stay?

您是否能夠量化休假與停留時間的關係？

I'm not sure I understand the question.

我不確定我是否理解這個問題。

Where is length of stay today? You had mentioned that the length of stay remains strong and vacates are down. Sorry.

今天的停留時間是哪裡？您曾提到，停留時間仍然很長，而空出率卻在下降。對不起。

No, I should've understood what you were saying. So lots of different ways to measure length of stay. Our average in-place customer is about 34.4 months, which is up a month year-over-year. Our existing customers who have been in the store for 12 months is 61%. That's down a little bit as we continue to normalize from those COVID highs at that metric. We've also lost a little bit of our 24-month customers. That's about 45% now, but still higher than pre-COVID. Is that helpful?

不，我應該明白你在說什麼。有很多不同的方法來衡量停留時間。我們的平均就地客戶約 34.4 個月，較去年同期成長一個月。我們現有的顧客在店裡待了12個月的比例是61%。隨著我們繼續從新冠病毒高點的指標正常化，這一數字有所下降。我們也失去了一些 24 個月的客戶。現在這個比例約為 45%，但仍高於新冠疫情之前的水平。有幫助嗎？

Our next question comes from Kassandra Fieber with Truist Securities.

我們的下一個問題來自 Truist Securities 的 Kassandra Fieber。

So in the quarter, you showed an improved pace of same-store revenue and same-store NOI deceleration. Is that because of easier comps? Or do you think rates have somewhat stabilized at current levels? I'm just trying to better understand if this improves deceleration is sustainable? Or if we should expect a steeper deceleration in 2024?

因此，在本季度，同店收入和同店 NOI 減速的速度有所改善。這是因為比較容易嗎？或者您認為利率已經穩定在當前水準？我只是想更了解這是否可以改善減速是否可持續？或者我們應該預期 2024 年會出現更大幅度的減速？

Yes. So comps throughout this year have gotten easier as we've moved through. In terms of how it came out versus what we were expecting, it was pretty similar to what we were expecting. As we mentioned earlier, we don't expect things to go negative in the fourth quarter and that sets us up for what we hope to be a good 2024.

是的。因此，隨著我們的進展，今年的比賽變得更加容易。就結果與我們的預期而言，它與我們的預期非常相似。正如我們之前提到的，我們預計第四季度的情況不會出現負面影響，這為我們期待 2024 年的美好前景奠定了基礎。

I think our occupancy is holding up well and not going negative, I think, is a positive thing.

我認為我們的入住率保持良好，沒有出現負數，我認為這是一件積極的事情。

Got it. And then shifting gears a little bit. Can you talk about or can you give us your thoughts around your balance sheet and your variable rate debt. Right now, approximately 30% of your debt is variable. Do you have any plans to decrease your exposure there? Or are you planning on keeping the portion of your variable debt where it is?

知道了。然後稍微換檔。您能談談您對資產負債表和浮動利率債務的看法嗎？目前，大約 30% 的債務是可變的。您有計劃減少在那裡的曝光嗎？或者您打算將可變債務部分保留在原樣嗎？

So our variable rate debt actually picked up slightly in the quarter as we completed the merger. With the merger, we had to pay off some fixed rate debt. You had private placement bonds on Life Storage that weren't allowed to be prepaid. To do that, we've used a bridge loan, a $1 billion bridge, that's a 2-year loan, and we will be terming that out over the next 1 to 2 years. So we will be bringing that down. If you look at our variable rate debt net of the variable rate borrowings, it's about 75%. But again, we'll be bringing those down, variable receivables.

因此，隨著我們完成合併，我們的可變利率債務實際上在本季略有上升。透過合併，我們必須償還一些固定利率債務。您在 Life Storage 上擁有不允許預付的私募債券。為此，我們使用了過橋貸款，一筆 10 億美元的過橋貸款，為期 2 年，我們將在未來 1 到 2 年內償還該貸款。所以我們會降低這一點。如果你看看我們的浮動利率債務扣除浮動利率借款後的淨值，大約是 75%。但同樣，我們將降低這些可變應收帳款。

Next question comes from Todd Thomas with KeyBanc Capital Markets.

下一個問題來自 KeyBanc Capital Markets 的 Todd Thomas。

This is A.J. on for Todd. Real quick, could you just provide an occupancy update for October and what that looks like year-over-year?

這是 A.J.托德。很快，您能否提供 10 月份的入住率更新以及同比情況？

For the 2 portfolios, Extra Space, the same-store portfolio ended October at 93.9%. It's a 1% gap from where we were last year. The Life Storage occupancy is 90.8% compared to last year, and that has actually narrowed the gap slightly. Our occupancy calculation is slightly different than the way Life Storage calculated. We're going with our occupancy calculation going forward as they excluded or made adjustments that we don't make on an ongoing basis.

對於Extra Space這2個投資組合，截至10月的同店投資組合為93.9%。與去年相比，差距為 1%。與去年相比，生命儲藏室的入住率為90.8%，差距實際上略有縮小。我們的入住率計算方式與 Life Storage 的計算方式略有不同。我們將繼續進行入住率計算，因為他們排除或進行了我們不會持續進行的調整。

And what is that year-over-year?

與去年同期相比是多少？

It's narrowing and I actually don't have last year's in front of me right now.

它正在縮小，而我現在實際上已經沒有去年的了。

We haven't adjusted last year's Life Storage occupancy to reflect our methodology.

我們沒有調整去年的 Life Storage 佔用率來反映我們的方法。

Good to know. And then my second question. So you provided a little color around the $100 million of synergies. You noted that you have met the $23 million in G&A synergies. We see some gains in tenant insurance. How should we think about the opportunity to meet or exceed the $100 million guidance over the next several months?

很高興知道。然後是我的第二個問題。因此，您為 1 億美元的協同效應提供了一些色彩。您指出您已經實現了 2300 萬美元的一般管理費用綜效。我們看到租戶保險取得了一些進展。我們該如何看待未來幾個月達到或超過 1 億美元指導目標的機會？

So I think we have a significant opportunity to exceed the G&A synergy of $23 million. Our original guidance for that was $140 million. Our original Extra Space guidance at the beginning of the year before this merger was contemplated. Our current midpoint guidance for G&A is $150 million. So it's not quite $10 million every 6 months of additional G&A because we closed the merger on July 20. G&A is not smooth. G&A is higher in the first quarter. It's not perfectly spread out through the 4 years -- the 4 quarters. And we still have some hiring to do to fill in some spots. But clearly, we're going to be ahead of our $23 million run rate.

因此，我認為我們有很大機會超越 2300 萬美元的一般管理費用綜效。我們最初的指導金額是 1.4 億美元。我們在這次合併之前的年初就考慮了最初的 Extra Space 指導。我們目前的 G&A 指導中位數是 1.5 億美元。因此，每 6 個月的額外 G&A 還不到 1000 萬美元，因為我們在 7 月 20 日結束了合併。G&A 並不順利。第一季的一般費用較高。它並沒有完美地分佈在 4 年（即 4 個季度）中。我們仍然需要招募一些人員來填補一些空缺。但顯然，我們將超出 2300 萬美元的運行速度。

And then on the tenant insurance synergies, how much more upside do you see there? And can you -- as you continue to transition the LSI customer to EXR's policy and pricing?

那麼在租戶保險綜效方面，您認為還有多少好處呢？當您繼續將 LSI 客戶轉變為 EXR 的政策和定價時，您能做到嗎？

So we've achieved very little of that synergy because the only extra space tenant insurance policies we're selling now are to new customers. Existing customers will not convert from the Life Storage insurance policy to the Extra Space insurance policy until starting January 1 of 2024, and that was for both regulatory and contractual reasons. But that will be somewhat of a light switch, right? We'll send out the notice, people get them and they'll be on the extra space policy, which is more robust in terms of coverage but also has a higher premium.

因此，我們幾乎沒有實現這種協同效應，因為我們現在出售的唯一額外空間租戶保險單是向新客戶出售的。基於監管和合約原因，現有客戶在 2024 年 1 月 1 日之前不會從 Life Storage 保單轉換為 Extra Space 保單。但這有點像電燈開關，對嗎？我們將發出通知，人們收到通知後，他們將享受額外空間政策，該政策的覆蓋範圍更廣，但保費也更高。

Our next question comes from Juan Sanabria with BMO Capital Markets.

我們的下一個問題來自 BMO 資本市場的胡安·薩納布里亞 (Juan Sanabria)。

Just wanted to kind of piggyback on a couple of questions that have already been asked. I guess on the sequential deceleration that it moderated in the third quarter, it's expected to moderate even further. Should we think that, that continues into 2024 as you stand here today based on what you know and I'm not asking you to give '24 guidance. But I guess what the market is really wondering is have we passed the worst particularly given where comps are as we look into '24. Just curious on your thoughts on what you could share there.

只是想順便回答幾個已經被問到的問題。我猜想，鑑於第三季經濟成長放緩，預計將進一步放緩。如果我們認為這種情況會持續到 2024 年，當你今天站在這裡時，根據你所知道的情況，我並不是要求你提供 24 小時的指導。但我想市場真正想知道的是我們是否已經度過了最糟糕的時期，特別是考慮到我們在 24 年的研究中的比較情況。只是好奇你對在那裡可以分享什麼的想法。

Okay. If you look at our deceleration through the year, I mean we've clearly moderated that deceleration. Our fourth quarter guidance implies that it continues fairly flat from where we are today. 2024 we'll be ready, obviously, to give the full year guidance in February. But I think we're set up to be -- we're in a good spot. We'd like to see new customer rates get stronger, but existing customers are holding up very well. 2024 also has easier comps compared to what we had this year.

好的。如果你看看我們今年的減速，我的意思是我們已經明顯減緩了這種減速。我們的第四季度指引表明，與今天的情況相比，它繼續相當平穩。顯然，到 2024 年，我們將做好準備，在 2 月給予全年指導。但我認為我們已經做好了準備——我們處於一個很好的位置。我們希望看到新客戶率變得更高，但現有客戶的表現也非常好。與今年相比，2024 年的比賽也更容易。

And then can I just ask on the LSI occupancy front is part of the synergies that you guys are assuming that you're able to make up the difference in occupancy between the EXR and LSI portfolio? And I guess -- if so, what does that entail doing to close that gap? Or are you happy keeping the portfolios running at different occupancy levels. Just curious on how that should evolve.

然後我可以問一下，LSI 佔用率是你們認為能夠彌補 EXR 和 LSI 產品組合之間佔用率差異的綜效的一部分嗎？我想——如果是這樣，需要採取什麼措施來縮小這一差距？或者您是否樂意將投資組合保持在不同的入住率等級。只是好奇這應該如何發展。

So I'll tell you how we underwrote the transaction to get to underwritten synergies and really how we get there, mix of occupancy and revenue, we don't really care as much as long as we get the dollars. So, we at underwriting, we observed on average a 2% gap in occupancy and about a 15% gap in rate and to get to our $65 million of property synergies, we underwrote 0 improvement in occupancy and about a 7% improvement in rate. So our opportunity to do better is to achieve better than those assumptions. Sorry for stating the obvious.

因此，我將告訴您我們如何承保交易以實現承保協同效應，以及我們如何實現這一目標，即入住率和收入的結合，只要我們獲得美元，我們並不真正關心。因此，在承保方面，我們觀察到入住率平均有2% 的差距，入住率大約有15% 的差距，為了實現6500 萬美元的房地產協同效應，我們承保了入住率的0 改善和大約7% 的入住率改善。因此，我們做得更好的機會就是取得比這些假設更好的成績。很抱歉說出顯而易見的事。

I guess this is a quick. So would you want to discount further at LSI to close that gap? Or are you happy kind of running 2 different occupancies across the different portfolios.

我想這是一個快速的。那麼您是否希望 LSI 進一步打折以縮小這一差距？或者您是否樂意在不同的投資組合中經營 2 個不同的房間。

Jeff, are you still there?

傑夫，你還在嗎？

Thank you, everybody, for your patience. One, I'm not sure where you lost it in the middle of Joe's response. Could you give us a reprompting before we answer the question?

謝謝大家的耐心等待。第一，我不確定你在喬的回答中哪裡丟失了它。在我們回答問題之前，您能再給我們一個提示嗎？

Sure. My addendum was is the goal to close eventually that occupancy gap? Or are you happy, I guess, running different levels of occupancy across the 2 portfolios?

當然。我的附錄是最終縮小入住率差距的目標是什麼？或者我猜您對在兩個投資組合中運行不同水平的入住率感到滿意嗎？

So the portfolios will be run on the same platform, right, despite the 2 brands, it's going to be the same customer acquisition systems, the same pricing algorithms, the same sales process. So eventually, the two portfolios should run very similarly. We don't have a strategy of running a higher occupancy, Extra Space store and a lower occupancy Life Storage store. Everything is going to be run on 1 platform to maximize revenue.

因此，這些產品組合將在同一個平台上運行，對吧，儘管有兩個品牌，但它們將是相同的客戶獲取系統、相同的定價演算法、相同的銷售流程。因此最終，這兩個投資組合的運作情況應該會非常相似。我們沒有運行更高佔用率的 Extra Space 商店和更低佔用率的 Life Storage 商店的策略。一切都將在同一個平台上運行，以實現收入最大化。

Our next question comes from Spenser Allaway from Green Street.

我們的下一個問題來自 Green Street 的 Spenser Allaway。

I know you commented in your opening remarks that you're focused on your asset-light initiatives right now. But can you just walk through where you're seeing specifically the best returns in terms of your use of capital right now?

我知道您在開場白中評論說，您現在專注於輕資產計劃。但是，您能具體介紹一下您目前在資本運用上看到的最佳回報嗎？

So the best returns on capital continues to be a redevelopment of existing stores. Those returns are high-single, low-double-digit returns. You can add units where you already own the land, you already have the office, you already have entitlements and we are very excited to now have 1,200 more stores to look at and try to find additional opportunities to put storage in parking lots or make single story storage, multistory storage. The challenge with those are they're relatively small in terms of dollar investment, so you have to do a lot of them, but we have a team and a process and a program and we expect to do a lot more of those in the future.

因此，最好的資本回報仍然是現有商店的重建。這些回報率是高個位數、低兩位數回報。您可以在已經擁有土地、辦公室、權利的地方添加單元，我們很高興現在有 1,200 多家商店可供考察，並嘗試尋找更多機會在停車場放置存儲空間或製作單一的存儲空間。故事存儲，多層存儲。這些挑戰在於，就美元投資而言，它們相對較小，所以你必須做很多這樣的事情，但我們有一個團隊、一個流程和一個計劃，我們預計將來會做更多這樣的事情。

Another -- our bridge loan program also provides very high return on capital. The whole note rate is 10% now, average is 10% now. And when we sell the A note, the rate on the B notes is into the teens and that does not include the economic benefit of managing the property, which we lend on. So that also is a very good use of capital, particularly because we can control the capital by selling or not selling the A note.

另一個 - 我們的過橋貸款計劃還提供非常高的資本回報率。現在全票利率是10%，現在平均利率是10%。當我們出售 A 票據時，B 票據的利率高達十幾歲，這還不包括我們借出的管理財產的經濟利益。因此，這也是一種很好的資本利用方式，特別是因為我們可以透過出售或不出售 A 票據來控制資本。

And then do you have a sense for EXR assets that are now in a competing radius of newly acquired LSI assets, you have a sense of what the average delta would be for the in-place rents for the EXR versus the legacy LSI assets?

然後，您是否了解現在處於新收購的 LSI 資產競爭半徑內的 EXR 資產？您是否了解 EXR 與傳統 LSI 資產的就地租金的平均增量是多少？

So I think our best sense is one of the ways we underwrote this transaction is, we identified 106 or 109 LSI stores that had one or more Extra Space store that was in a very tight geographical radius with a similar type store in terms of single-story drive-up or multistory and we felt was a truly competitive store. And at the time of underwriting, the delta in rate was about 15% for those stores.

因此，我認為我們最好的感覺是，我們承保這筆交易的方式之一是，我們確定了106 或109 個LSI 商店，這些商店擁有一個或多個Extra Space 商店，這些商店位於非常狹窄的地理半徑內，並且在單一方面具有類似類型的商店。我們認為這是一家真正有競爭力的商店。在承保時，這些商店的費率增量約為 15%。

Our next question comes from Smedes Rose from Citi.

我們的下一個問題來自花旗銀行的 Smedes Rose。

I just wanted to ask you on the LSI portfolio, you mentioned a number of catch-up options. And just it I guess, a little less familiar with that. I'm just wondering, is that a significant part of the portfolio? Will that make a significant difference, I guess, as those customers are, I guess, cleared out who are nonpaying and putting in new customers? .

我只是想問您有關 LSI 產品組合的問題，您提到了一些追趕選項。我想，就是這樣，對此不太熟悉。我只是想知道，這是投資組合的重要組成部分嗎？我想，這會產生重大影響嗎？因為這些客戶，我想，已經清除了那些不付款的人，並引入了新客戶？ 。

I mean it's a standard practice when we buy a store not to rely on the prior owner's auction process because we don't caught up in a noncompliant auction. So we start the auction process over again, and that leads to a several month lag. So we have several months of units, nonpaying units, we have to auction out, recover those units, and we re-let them. It's temporary and in the overall scheme of things, I think not significant, although it does provide some occupancy pressure in the short run.

我的意思是，當我們購買商店時，不要依賴前任所有者的拍賣流程，這是一種標準做法，因為我們不會陷入不合規的拍賣。因此，我們重新開始拍賣過程，這導致了幾個月的延遲。因此，我們有幾個月的單位，非付款單位，我們必須拍賣，收回這些單位，然後重新出租它們。這是暫時的，從整體來看，我認為這並不重要，儘管它確實在短期內帶來了一些入住壓力。

(inaudible) picking over. Yes, sorry go ahead.

（聽不清楚）挑選。是的，抱歉，繼續。

IT doesn't really impact your bad debt either because you've already accrued the bad debt reserve. So there's no impact there, but it does impact occupancy.

IT 也不會真正影響您的壞賬，因為您已經累積了壞帳準備金。所以那裡沒有影響，但確實影響了入住率。

And then I just -- you mentioned higher property taxes in the quarter. And I just -- as you -- for your larger expense lines just looking into next year is there -- similar broad sense of how we might be thinking about wages and benefits for pace of growth slowing at all? Is it maybe what are you thinking about for kind of the pace of tax -- property tax increases? Any sort of thoughts there you could share?

然後我只是 - 你提到了本季更高的財產稅。我只是 - 和你一樣 - 對於你更大的支出線只是展望明年 - 是否有類似的廣泛意義，我們如何考慮增長速度放緩的工資和福利？您是否正在考慮稅收的節奏——財產稅的增加？有什麼想法可以分享嗎？

Yes. So we actually thought it had decreased some in the 6-month numbers. I think we were looking pretty good. We won some appeals. We were a little bit surprised on how our actuals came in for Florida and Georgia and Illinois versus the estimates we've made using property tax consultants. We hope that the worst of the property tax reassessments are behind us, but every year is a new year with the local municipalities.

是的。所以我們實際上認為 6 個月的數字有所下降。我覺得我們看起來不錯。我們贏得了一些上訴。我們對佛羅裡達州、喬治亞州和伊利諾伊州的實際數據與我們使用財產稅顧問做出的估計結果的比較感到有點驚訝。我們希望最糟糕的財產稅重新評估已經過去，但對於當地市政當局來說，每年都是新的一年。

And on wages and benefits, how is that pacing?

在薪資和福利方面，節奏如何？

Wages and benefits, we've actually had it slow some. We don't see the wage pressure that we saw the last couple of years. We saw higher slightly earlier in the year as we had more hours compared to prior years when it was difficult to hire. Today, it's much easier to hire. Our applicant flow is significantly better and we're not seeing the wage pressure we've seen over the last couple of years.

工資和福利，我們實際上已經放慢了一些。我們沒有看到過去幾年的薪資壓力。今年早些時候，我們的業績略有上升，因為與前幾年招聘困難時相比，我們的工作時間更多。如今，招募變得更加容易。我們的申請者流量顯著改善，而且我們沒有看到過去幾年出現的薪資壓力。

Next question comes from Ronald Kamdem with Morgan Stanley.

下一個問題來自摩根士丹利的羅納德·卡姆德姆。

Just 2 quick ones for me. Just going back to the same-store revenue number of close to 1% in 4Q, is the messaging -- I think this got asked earlier, but is the messaging that essentially, unless you sort of see things take a turn to the downside, wouldn't expect that number to get sort of worse going into next year? Or is it sort of still wait and see? I'm just trying to figure out if 4Q is sort of a good run rate looking forward from here without asking for guidance.

對我來說只有 2 個快速的。回到第四季度接近 1% 的同店收入數字，這就是資訊——我想這已經被問到了，但本質上，資訊是，除非你看到事情轉向下行，預計明年這個數字會變得更糟嗎？還是仍在觀望？我只是想弄清楚第四季度是否是一個良好的運行率，從這裡開始，而不需要尋求指導。

Yes. So we think it's a good run rate, the estimate we've given for the quarter. Obviously, October is done. It's too early to tell for next year.

是的。因此，我們認為這是一個很好的運行率，這是我們對該季度給出的估計。顯然，十月已經結束了。現在判斷明年的情況還為時過早。

Great. And then doubling back on the sort of the expense line items. Obviously, you took the same-store up for EXR. I see sort of LSI at 4.5% as well. Maybe can you talk about just doubling down on whether it's marketing expenses or insurance. Is there anything either one timing in nature this year that we should be mindful of? Or are these sort of decent run rates?

偉大的。然後再對費用項目進行排序。顯然，您在同一家商店購買了 EXR。我認為 LSI 也達到 4.5%。也許你可以談談加倍投入行銷費用還是保險費用。今年的自然時機有什麼是我們該注意的嗎？或者這些運行率是不錯的嗎？

So Life Storage, the big increase year-over-year came from more personnel and the payroll line item. Our managers, on average, make more, and we have more hours allocated to our stores, and that's how we get the premium rates that we get. So we are operating them more like we operate our stores. The other thing that's different from their historical same-store numbers is we have allocated call center and a technology charge to the stores that they historically had in their G&A. So we went back to their historical numbers and added those in, too.

因此，Life Storage 的同比大幅增長來自更多的人員和工資項目。平均而言，我們的經理賺得更多，而且我們分配給商店的時間也更多，這就是我們獲得溢價的方式。因此，我們經營它們更像是經營我們的商店。與他們歷史上的同店數量不同的另一件事是，我們在 G&A 中向他們歷史上擁有的商店分配了呼叫中心和技術費用。所以我們回到了他們的歷史數字並將其也添加進來。

Our next question comes from Caitlin Burrows with Goldman Sachs.

我們的下一個問題來自高盛的凱特琳·伯羅斯。

I was wondering maybe -- I don't think anybody's asked about supply yet. So we've seen it fall off in other sectors, new starts. So I was wondering if you could comment on what you're seeing now? Have you noticed any projects either getting -- taking longer, getting pushed out or any new ones getting started, just kind of what you're seeing on the new supply side.

我想知道也許——我認為還沒有人問過供應問題。所以我們看到它在其他領域下降，新的開始。所以我想知道你是否可以對你現在所看到的發表評論？您是否注意到任何項目要么花費更長的時間，要么被推出，或者任何新的項目開始，就像您在新的供應方面看到的那樣。

Sure, great question. So we continue to see moderation in new supply. The peak was maybe 2018 and every year since then, it's moderated. We expect deliveries in 2023 to be kind of similar to 2022. But after that, likely to be more moderation. The headwinds to new supply in terms of interest rates and debt capital, equity capital, availability, construction costs, entitlement period, underwriting forward revenue growth are pretty significant and drop out rates for projects that you can see on yard and all those other reports are really high and a lot of projects we see in these reports end up not getting built.

當然，很好的問題。因此，我們繼續看到新供應量放緩。高峰可能是 2018 年，此後每年都會放緩。我們預計 2023 年的交付量將與 2022 年類似。但在那之後，交付量可能會更加溫和。在利率和債務資本、股權資本、可用性、建築成本、權利期限、承保遠期收入增長方面，新供應的阻力相當大，而且您可以在船廠看到的項目和所有其他報告的退出率非常高，我們在這些報告中看到的許多項目最終都沒有建成。

And just to that last point, would you say that the dropout rate is more significant today than it has been in like the past? Because of maybe those factors you mentioned?

對於最後一點，您是否會說今天的輟學率比過去更顯著？也許是因為你提到的那些因素？

Many of us were at a conference in New York a couple of weeks ago where one of the leading brokers in the industry said, he thinks the dropout rate is 70% to 90%. I don't have the statistics for that, but that's an observation from someone who's very, very close to the industry.

幾週前，我們中的許多人參加了在紐約舉行的一次會議，一位業內領先的經紀人表示，他認為退出率是 70% 到 90%。我沒有這方面的統計數據，但這是來自非常非常熟悉該行業的人的觀察。

Got it. And then maybe just a quick 1 on the transaction side. You mentioned that EXR has pulled out recently, especially to focus on the LSI merger, which makes sense. I guess, could you comment more broadly on the transaction market? Kind of our properties trading, have cap rates stabilized? Has the bid-ask spread close? Or is it still pretty quiet in storage also?

知道了。然後也許只是交易方面的快速 1。您提到EXR最近退出了，特別是專注於LSI合併，這是有道理的。我想，您能否對交易市場進行更廣泛的評論？我們的房地產交易，上限利率穩定了嗎？買賣差價已接近嗎？或者它在儲藏室裡仍然很安靜嗎？

Yes, I would characterize it as quiet. There are very few transactions that we see end up making. Many transactions, people bring our portfolios and they don't end up transacting. That's an indication of a bid-ask spread. And the transactions we do see that happen, there's it seems to be some story either on the buyer side, why it was a special buy for them or on the seller side. But I don't think there's enough of a market where I could tell you what market cap rates are. It's just very quiet and very circumstantial.

是的，我會把它形容為安靜。我們最終看到的交易很少。在許多交易中，人們帶來了我們的投資組合，但他們最終並沒有進行交易。這表示買賣價差。我們確實看到這種情況發生的交易，無論是在買方方面，還是在賣方方面，似乎都有一些故事，為什麼這對他們來說是一次特殊的購買。但我認為沒有足夠的市場可以讓我告訴你市值是多少。它只是非常安靜而且非常環境。

Our next question comes from Samir Khanal with Evercore.

我們的下一個問題來自 Evercore 的 Samir Khanal。

Joe, when I look at some of your top markets, the Texas markets, Florida, they're holding up quite well this year and from a revenue growth perspective. And I guess how are you thinking about those Sunbelt markets into next year, the markets which got a boost in the last few years? I mean, do they give back in '24? How are you thinking about that?

喬，當我觀察你們的一些頂級市場（德克薩斯州市場、佛羅裡達州）時，從收入成長的角度來看，它們今年表現得相當不錯。我想您如何看待明年的陽光地帶市場，這些市場在過去幾年中得到了提振？我的意思是，他們會在 24 年回饋社會嗎？你覺得怎麼樣？

There's 2 things, I think, to think about. One is -- maybe 3 things. One is job growth. Job growth is maybe the #1 indicator of storage performance. And those Sunbelt markets still have job growth, and that's an important factor. On the flip side, when a market has a couple of years of 20%, 30% plus revenue growth, it's really difficult to keep up. So it may look like it's giving back because it's not growing as fast, but it's still a healthy market, and it's just coming up against a tough comp.

我認為有兩件事需要考慮。一是──也許有三件事。一是就業成長。就業成長可能是儲存效能的第一指標。這些陽光地帶市場仍有就業成長，這是一個重要因素。另一方面，當一個市場連續幾年保持 20%、30% 以上的收入成長時，要跟上確實很難。因此，它可能看起來像是在回饋，因為它的成長速度沒有那麼快，但它仍然是一個健康的市場，而且它只是面臨著嚴峻的競爭。

And then lastly, which is a little bit of the wildcard is the housing market. I firmly believe the housing market will come back. It's got two people can't stay in their houses forever, life events happen, just when and how quickly is going to be a factor that will inform our performance next year.

最後，有點不確定的是房地產市場。我堅信房地產市場將會復甦。兩個人不能永遠待在自己的房子裡，生活中的事件會發生，何時以及多快將成為影響我們明年表現的因素。

And then just as a follow-up from prior questions. You mentioned the 15% gap I think, between rents for the LSI and the EXR portfolio on underwriting. And I just want to clarify, did you say the gap is about 7% today?

然後作為之前問題的後續。我認為您提到了 LSI 和 EXR 投資組合承保租金之間存在 15% 的差距。只是想澄清一下，你說今天的差距是7%左右嗎？

No, I said we underwrote 7% to achieve our underwritten synergies. So we underwrote not closing the occupancy gap at all and only closing about half of the rate gap and that if we can do those 2 things, that will give us our $65 million synergies from the properties.

不，我說我們承保了 7%，以實現承保綜效。因此，我們承諾根本不會縮小入住率差距，而只會縮小大約一半的費率差距，如果我們能做到這兩件事，這將為我們帶來 6500 萬美元的物業協同效應。

And then finally, on just maybe ECRIs. I mean, how much has that pace of, I guess, increases moderated at this point? I mean I'm just trying to think if you have macro conditions that sort of stay similar as it is, I mean, if you think that moderates further in '24. How are you thinking about that?

最後，也許只是 ECRI。我的意思是，我猜目前成長速度已經放緩了多少？我的意思是，我只是想想想宏觀條件是否與現在保持相似，我的意思是，如果你認為這種情況在 24 年會進一步緩和。你覺得怎麼樣？

Maybe not as much as might be -- we might assume because one of the big drivers of ECRI is the gap between the discounted web rate the customer comes in and the actual market rate for that unit. So while we're in a period of time now where we're offering significant discounts for customers to come into the web that gives us the opportunity to catch them up through ECRI and get them to what the true market rate is.

也許沒有那麼多——我們可能會假設，因為 ECRI 的一大驅動因素是客戶進入的折扣網路費率與該單位的實際市場費率之間的差距。因此，雖然我們現在正處於為進入網路的客戶提供大幅折扣的時期，但這使我們有機會透過 ECRI 趕上他們並讓他們了解真實的市場價格。

Our next question comes from Michael Mueller with JPMorgan.

我們的下一個問題來自摩根大通的邁克爾·穆勒。

I'm curious, what are the early observations on operating 2 brands versus 1 brand so far?

我很好奇，到目前為止，經營 2 個品牌與 1 個品牌的早期觀察結果是什麼？

So it's very early. We don't have any firm conclusions. I think the most important thing that we see is we have increased our digital footprint. So when you're in one of those saturated markets where we're operating 2 brands and you search for storage near me or whatever generic storage starts you use. You will find both Extra Space and Life Storage branded stores come up on the search, sometimes also a Storage Express store. So we are getting more digital real estate. That's kind of the main assumption to the success of the program, but it's very early, and we have quite a ways to go before we can draw definitive conclusions.

所以現在還很早。我們沒有任何確定的結論。我認為我們看到的最重要的事情是我們增加了數位足跡。因此，當您處於我們經營兩個品牌的飽和市場之一時，您會搜尋我附近的儲存空間或您使用的任何通用儲存。您會發現搜尋中同時出現 Extra Space 和 Life Storage 品牌商店，有時也會出現 Storage Express 商店。所以我們正在獲得更多的數位房地產。這是該計劃成功的主要假設，但現在還為時過早，在得出明確的結論之前，我們還有很長的路要走。

And then maybe one other quick expense question. And I know this isn't a huge line item in the grand scheme of things. But the growth in insurance expenses, how should we think about that over the next few years in terms of how outsized they could be or relative to the overall expense pool?

也許還有另一個快速的費用問題。我知道這在宏偉的計劃中並不是一個巨大的項目。但是保險費用的成長，我們應該如何考慮未來幾年保險費用的規模或相對於整體費用池的規模？

I think it will bend a little bit on claims. You had a really rough year in Florida this past year. Overall, if you had -- anything wind related in Florida saw a 100-plus percent increase in lots of areas. So I think it will depend some on events that happen but you've also seen a rise in interest rate caused those pools not to be as deep as they found other sources to put other places and put that money. So making sure that we have competitive bids, adding the Life Storage properties will help us because we have a new group of insurers that we haven't used in the past. And so hopefully, we should be able to bring that down and not see the kind of increases we've seen in this year.

我認為它會在索賠方面稍微彎曲一些。去年你在佛羅裡達度過了非常艱難的一年。總的來說，佛羅裡達州許多地區與風有關的任何事情都增加了 100% 以上。因此，我認為這將取決於發生的事件，但你也看到利率上升導致這些資金池的深度不如他們找到其他來源來放置其他地方並放置這些錢。因此，確保我們的出價具有競爭力，而增加 Life Storage 屬性將對我們有所幫助，因為我們擁有一組我們過去未曾使用過的新保險公司。因此，希望我們能夠降低這一數字，而不會出現今年那樣的成長。

Our next question comes from Keegan Carl with Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Keegan Carl。

I guess maybe first on occupancy, where do you expect your year-over-year occupancy delta versus last year to trend for the balance of the year?

我想也許首先是入住率，您預計今年剩餘時間的入住率與去年相比的變化趨勢如何？

We're assuming about a 100 basis point gap through this year. And then obviously, moving into 2024, I think that gap gets easier.

我們假設今年的差距約為 100 個基點。顯然，進入 2024 年，我認為這種差距會變得更容易。

Got it. And then shifting gears here, I feel like these 2 platforms have kind of gotten lost in the shuffle just given the Life Storage. I'm just curious if you could provide any update on the Bar Gold and storage Express platforms. What are you guys seeing as far as internal and external growth opportunities?

知道了。然後在這裡換檔，我覺得這兩個平台在生命儲存的洗牌中迷失了方向。我只是好奇您是否可以提供有關 Bar Gold 和 storage Express 平台的任何更新。你們對內部和外部成長機會有何看法？

Sure. So Bar Gold, I would say, is glass is half full and half empty. The half full is we've done a really, really good job of institutionalizing and integrating the operations there. And we're significantly outperforming budget on the expense side, where I think we have more wood to chop is the growth side of that. We are growing bar gold at historical rates at the rates that Bar Gold grew before we bought it. And we really want to turn some attention to that and try to grow it at a faster rate. Some of that, I think, is just us getting to know the business, getting to know the people and understanding it and some of it is, frankly, attention on Storage Express and then Life Storage.

當然。所以我想說，金條就是半滿半空的玻璃杯。半滿是我們在製度化和整合那裡的業務方面做得非常非常好。我們在支出方面的表現明顯超出了預算，我認為我們有更多的木材需要砍伐，這是成長方面的。我們正在以歷史速度成長金條，也就是我們購買金條之前的成長速度。我們真的想對此給予一些關注，並嘗試以更快的速度成長。我認為，其中一些只是我們了解業務、了解人員並理解它，坦率地說，其中一些是對 Storage Express 和 Life Storage 的關注。

Storage Express is -- I think we made a lot of progress. It was actually, in some ways, harder to integrate Storage Express because it was a different platform, a different way of doing business. I mean we got all of the 1,200 Life Stores on our operating platform breeze in 19 days. It took us 6 months with 107 Storage Express stores because it's a different way of operating. There's just different software systems procedures. So we're doing very well on the integration front. We have bought several small remotely managed stores in our traditional markets, not in the more rural markets they operate in. They trade at 7% yield. So we feel they're good purchases. And we're learning a lot.

我認為 Storage Express 取得了很大進展。實際上，在某些方面，整合 Storage Express 更困難，因為它是一個不同的平台，不同的開展業務的方式。我的意思是，我們在 19 天內就在我們的營運平台上輕鬆獲得了所有 1,200 家 Life Stores。我們花了 6 個月的時間管理 107 個 Storage Express 商店，因為這是一種不同的運作方式。只是軟體系統程式不同。所以我們在整合方面做得非常好。我們在傳統市場購買了幾家小型遠端管理商店，而不是在他們經營的農村市場。他們的交易收益率為 7%。所以我們覺得它們是很好的購買。我們學到了很多。

We're learning about exactly what should be a remote store partially manned. What are the various attributes, distance from an Extra Space store, population, rent per square foot, saturation that makes it work and makes it doesn't work. We have opened up our third-party management platform. We've just signed up a 60-property portfolio to be run remotely. We have a large, large pipeline of remotely managed stores for our Management Plus platform. So I think similar to Bar Gold, the growth of that platform was slowed by our attention to the Life Storage deal. We used that time to learn things, which I think is good. And as we move forward, I expect that growth to accelerate.

我們正在了解什麼是部分有人值守的遠端商店。使其有效和無效的各種屬性是什麼，距離 Extra Space 商店的距離、人口、每平方英尺租金、飽和度。我們開放了第三方管理平台。我們剛剛簽署了一個包含 60 處房產的遠端營運組合。我們的 Management Plus 平台擁有大量遠端管理商店。因此，我認為與 Bar Gold 類似，該平台的成長因我們對 Life Storage 交易的關注而放緩。我們利用這段時間來學習東西，我認為這很好。隨著我們的前進，我預計這種增長將會加速。

I'm not showing any further questions at this time. I'd like to turn the call back over to Joe Margolis for any closing remarks.

我目前不會提出任何進一步的問題。我想將電話轉回給喬·馬戈利斯，讓其結束語。

Great. Thank you, everyone, for your time today. I hope the message was clear that things are going as expected. Our integration and realization of synergies are proceeding very well, and we look forward to seeing many, many of you in Los Angeles next week. Thank you very much.

偉大的。謝謝大家今天抽出時間。我希望傳達的訊息很明確：事情正在按預期進行。我們的整合和協同效應的實現進展順利，我們期待下週在洛杉磯見到你們中的許多人。非常感謝。

Ladies and gentlemen, this does conclude today's presentation. You may now disconnect, and have a wonderful day.

女士們、先生們，今天的演講到此結束。您現在可以斷開連接，並度過美好的一天。