Extra Space Storage Inc (EXR) 2025 Q2 法說會逐字稿

Good afternoon ladies and gentlemen, and welcome to the Extra Space Storage Inc. Q2, 2025 earnings conference call. (Operator Instructions) I would now like to turn the conference over to Jared Conley, Vice President of Investor Relations. Please go ahead.

女士們、先生們，下午好，歡迎參加 Extra Space Storage Inc. 2025 年第二季財報電話會議。（操作員指示）現在，我想將會議交給投資者關係副總裁 Jared Conley。請繼續。

Thank you, Joel, and welcome to Extra Space Storage's second quarter 2025 earnings call. In addition to our press release, we have furnished unaudited supplemental financial admission 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.

謝謝你，喬爾，歡迎參加 Extra Space Storage 2025 年第二季財報電話會議。除了新聞稿之外，我們還在我們的網站上提供了未經審計的補充財務報表。請記住，管理層準備的評論和對您的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。

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 businesses. 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.

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所明示或暗示的結果有重大差異。這些前瞻性陳述受到公司向美國證券交易委員會提交的最新文件中所包含的警示性聲明的限制，我們鼓勵聽眾閱讀這些聲明。

Forward-looking statements represent management estimates as of today, July 31, 2025. The company has no obligation to revise or update any forward-looking statements because of the changing market conditions or other circumstances after the date of this conference call. I would now like to turn the call over to Joe Margolis, Chief Executive Officer.

前瞻性陳述代表截至 2025 年 7 月 31 日的管理階層估計。本公司沒有義務因本次電話會議召開日後市場條件的變化或其他情況而修改或更新任何前瞻性陳述。現在我想將電話轉給執行長喬·馬戈利斯 (Joe Margolis)。

Thank you for joining us today. We had a solid second quarter. Our operational momentum continued with same store occupancy reaching 94.6%, up 60 basis points year over year, and 120 basis points sequentially from the first quarter.

感謝您今天加入我們。我們第二季表現穩健。我們的營運動能持續良好，同店入住率達到 94.6%，較去年同期成長 60 個基點，較上季成長 120 個基點。

We were also able to achieve positive year over year rate growth to new customers for the first time since March 2022. We are encouraged by positive rate trends, even though the progress is developing more gradually than we initially expected, resulting in flat same store revenue growth in the quarter.

自 2022 年 3 月以來，我們也首次實現了新客戶數量較去年同期成長。儘管進展比我們最初預期的要緩慢，導致本季同店營收成長持平，但積極的利率趨勢令我們感到鼓舞。

While incoming customer price sensitivity is still apparent, rate growth is now positive, and we are trending in the right direction. As we look forward, our measured price, elevated occupancy, and the easing of new supply pressure positions us well to capitalize on improving market fundamentals as our team continue to execute efficiently across all operational areas.

雖然新客戶的價格敏感度仍然很明顯，但利率成長目前是正成長，而且我們正朝著正確的方向發展。展望未來，隨著我們的團隊繼續在所有營運領域高效執行，我們合理的價格、更高的入住率以及新供應壓力的緩解使我們能夠充分利用不斷改善的市場基本面。

During the second quarter, we executed on strategic opportunities across our diversified platform. We completed only one acquisition for $12 million demonstrating our commitment to prudent and disciplined capital allocation in the high price market. We also have two joint venture partners' interests in 27 properties for $326 million at attractive valuations driven by our partners' liquidity needs and favorable partnership terms.

在第二季度，我們透過多元化平台實施了策略機會。我們僅完成了一項價值 1200 萬美元的收購，顯示了我們致力於在高價市場進行審慎和嚴格的資本配置。我們還擁有兩個合資夥伴對 27 處房產的權益，總價值 3.26 億美元，估值具有吸引力，這得益於我們合作夥伴的流動性需求和優惠的合作條款。

Our bridge loan program continued gaining market traction, generating 158 million in new originations. Simultaneously, our third party management program added 93 stores with net growth of 74 properties, expanding our managed portfolio to 1749 stores, providing more scale and efficiency to our sector leading platform.

我們的過橋貸款計劃繼續獲得市場關注，產生了 1.58 億美元的新貸款。同時，我們的第三方管理計畫增加了 93 家門市，淨成長了 74 個物業，使我們的管理組合擴大到 1749 家門市，為我們業界領先的平台提供了更大的規模和效率。

Our multi-channel approach combining opportunistic acquisitions and capital light activities demonstrates our ability to create value and grow accretively regardless of market conditions, positioning us to capitalize on opportunities as they emerge.

我們採用多通路方式，結合機會性收購和輕資本活動，證明了我們無論在何種市場條件下都能創造價值並實現增值成長的能力，使我們能夠抓住出現的機會。

The self-storage sector continues to demonstrate its resilience, and our business model remains strong. Our portfolio's geographic diversification continues to serve us well, growth markets helping to offset softer conditions in regions impacted by new supply or state of emergency restrictions. This balanced market exposure provides protection against localized economic fluctuations.

自助倉儲產業持續展現其韌性，我們的商業模式依然強勁。我們的投資組合的地理多樣化繼續為我們帶來良好的服務，成長型市場有助於抵消受新供應或緊急狀態限制影響的地區疲軟狀況。這種平衡的市場風險可以防止局部經濟波動。

Operationally, our key metrics remain solid. Our same store occupancy of 94.6% reflects the effectiveness of our customer acquisition systems. New customer rates are showing encouraging trends, though these improvements will take time to fully materialize in our revenue growth.

從營運角度來看，我們的關鍵指標依然穩健。我們的同店入住率為 94.6%，反映了我們的客戶獲取系統的有效性。新客戶率呈現出令人鼓舞的趨勢，儘管這些改善需要時間才能完全體現在我們的收入成長中。

Moveout activity and delinquency rates continue to track at normal levels, demonstrating the stability of our customer base during this period of economic uncertainty. Based on these trends in our first half performance, we are maintaining the midpoint of our full year core FFO guidance of $8.15 per share.

搬出活動和拖欠率繼續保持在正常水平，顯示在經濟不確定時期我們的客戶群保持穩定。根據我們上半年業績的這些趨勢，我們維持全年核心 FFO 指導的中點，即每股 8.15 美元。

While near-term revenue growth remains muted, our revenue management system, operational discipline, and investment strategy positioned as well to navigate current conditions and capitalize on emerging opportunities. We remain focused on balancing pricing and occupancy to maximize revenue while pursuing strategic growth that enhances long-term shareholder value.

雖然短期收入成長仍然緩慢，但我們的收入管理系統、營運紀律和投資策略也能夠應對當前情況並利用新興機會。我們仍然專注於平衡定價和入住率以實現收入最大化，同時追求提高長期股東價值的策略成長。

I will now turn the time over to our Chief Financial Officer. The last 34 earnings calls, I've turned this over to [Scott Stubp], who has always provided balanced, accurate, transparent, and helpful commentary. Scott has been a great asset to extra space storage and instrumental in reshaping our balance sheet. And most importantly, a great part to me, and I appreciate all of Scott's contributions.

現在我將時間交給我們的財務長。在過去的 34 次財報電話會議上，我都把這個問題交給了 [Scott Stubp]，他總是能提供平衡、準確、透明且有用的評論。斯科特對於額外空間儲存來說是一筆寶貴的財富，並且在重塑我們的資產負債表方面發揮了重要作用。最重要的是，這對我來說非常重要，我感謝斯科特的所有貢獻。

Our new CFO, Jeff Norman is joining us for the first time as our newly promoted CFO. Jeff has been with the company for 13 years, most recently was serving as a senior Vice President responsible for our capital markets, treasury, and risk management teams. I look forward to having him as a part of our executive team and his continued contributions leading our accounting and financing functions.

我們的新任財務長 Jeff Norman 首次加入我們，擔任我們新晉升的財務長。傑夫在公司工作 13 年，最近擔任高級副總裁，負責我們的資本市場、財務和風險管理團隊。我期待他成為我們執行團隊的一員，並繼續領導我們的會計和融資職能。

Thanks, Joe and hello, everyone. Our performance through the first half of the year is in line with our full year estimates. Second quarter same store revenue came modestly below our internal expectations due to new customer rate growth, improving more gradually from Q1 to Q2 than in the previous three quarters. However, our flat same store revenue was augmented by stronger than expected tenant insurance income and management fee income.

謝謝，喬，大家好。我們上半年的業績與全年預期一致。由於新客戶率成長，第二季同店營收略低於我們的內部預期，與前三個季度相比，第一季至第二季的改善更為緩慢。然而，我們的同店收入持平，但因租戶保險收入和管理費收入強於預期而有所增長。

Interest income and interest expense were both greater due to a higher than forecasted silver curve. So as Joe mentioned, while the progress in new customer rates is a little slower than expected, our operating model continues to generate stable cash flows and maintain consistent performance metrics, and our ancillary streams are making meaningful contributions to FFO.

由於白銀曲線高於預測，利息收入和利息支出均增加。因此，正如喬所提到的，雖然新客戶率的進展比預期要慢一些，但我們的營運模式繼續產生穩定的現金流並保持一致的績效指標，我們的輔助流正在為 FFO 做出有意義的貢獻。

To expenses, we experienced higher than normal year over year increases. Same store expenses increased by 8.6%, driven by outsized increases in property taxes, specifically in the legacy life storage properties located in California, Georgia, Illinois, and Texas.

就支出而言，我們的年增幅高於正常水準。同店支出增加了 8.6%，主要是因為財產稅大幅增加，特別是位於加州、喬治亞州、伊利諾州和德州的傳統生活倉儲物業。

Although higher than normal, property taxes were generally in line with internal estimates through the first two quarters, and our full year outlook anticipates total expense growth, including property tax growth, to normalize the back half of the year.

儘管高於正常水平，但前兩個季度的房產稅總體上與內部估計相符，我們預計全年總支出增長（包括房產稅增長）將在下半年恢復正常。

Our balance sheet continues to demonstrate strength and flexibility. With 89% of our debt maintained at fixed rates, including the hedging impact of our variable rate receivables. We've maintained our weighted average interest rate at 4.4% with an average maturity of 4.3 years.

我們的資產負債表繼續展現實力和靈活性。我們的 89% 債務維持在固定利率，包括浮動利率應收帳款的避險影響。我們將加權平均利率維持在 4.4%，平均期限為 4.3 年。

Our measured approach to leverage, complemented by our well-structured debt maturities and diverse funding sources provides us with the stability to pursue strategic opportunities while effectively managing our position in the current interest rate environment.

我們採取審慎的槓桿方法，輔以結構良好的債務期限和多樣化的資金來源，為我們提供了尋求策略機會的穩定性，同時有效地管理了我們在當前利率環境下的地位。

Given our inline performance in the first half of the year and gradually improving fundamentals, we are tightening our full year core FFO and same stored guidance ranges and maintaining our existing midpoints. This results in core FFO guidance of $8.05 to $8.25 per share. For our same store portfolio, we anticipate revenue growth between negative 0.5% and positive 1% for the full year.

鑑於我們上半年的業績表現和基本面的逐步改善，我們正在收緊全年核心 FFO 和相同的儲存指導範圍，並維持現有的中點。這導致核心 FFO 指導價為每股 8.05 美元至 8.25 美元。對於我們的同店組合，我們預計全年營收成長率在負 0.5% 至正 1% 之間。

Our same store guide includes potential acceleration in the second half, particularly in the fourth quarter, as improving new customer rates begin to take effect. Operating expenses are projected to grow between 4% and 5%, which, as I mentioned, implies expense, growth, moderation in the back half of the year, especially with property taxes.

我們的同店銷售指南顯示，隨著新客戶率的提高開始產生效果，下半年，尤其是第四季度，同店銷售可能會加速成長。預計營運費用將增加 4% 至 5%，正如我所提到的，這意味著下半年的費用、成長和放緩，尤其是財產稅。

We've updated our interest income and expense projections to account for the current interest rate environment and recent debt activities. Our diversified portfolio, sophisticated operating platform, and strong balance sheet continued to provide a solid foundation as we execute on our strategy through current market conditions, maintaining our focus on long-term value creation. With that operator, let's open it up for questions.

我們已更新利息收入和支出預測，以反映當前的利率環境和近期的債務活動。我們多元化的投資組合、先進的營運平台和強勁的資產負債表繼續為我們在當前市場條件下執行策略提供了堅實的基礎，並保持了對長期價值創造的關注。有了這個操作員，我們就可以開始提問了。

Thank you, ladies and gentlemen, we will now begin the question and answer session. (Operator Instructions) Michael Goldsmith, UBS.

謝謝各位，女士們、先生們，我們現在開始問答環節。（操作員指示）瑞銀集團的邁克爾·戈德史密斯。

Good morning. Thanks for taking my question. Can you provide an update on how street rates and occupancy have trended into July and how that compares to June and the second quarter. Thank you.

早安.感謝您回答我的問題。您能否提供一下 7 月份街道價格和入住率的最新趨勢以及與 6 月份和第二季度相比的情況？謝謝。

So Michael, from an occupancy perspective, sequentially occupancy remained flat, so it continued in July at 94.6%, which year over year is a positive delta about 50 basis points. New customer rate improved on a year over year basis it was up a little more than 2%, so seeing positive trends there. And our move in, move out GAAP also compressed with those rates picking up. So positive indicators on all fronts in July.

因此，邁克爾，從入住率的角度來看，入住率環比保持平穩，7 月份入住率繼續保持在 94.6%，與去年同期相比增長了約 50 個基點。新客戶率較去年增加，增幅略高於 2%，呈現正向趨勢。我們的遷入、遷出 GAAP 也隨著這些比率的上升而壓縮。因此，七月各方面的指標都呈現正向態勢。

Thanks for that and then just to build on that, right, like street rates have now turned positive, in the commentary before you talked about trends accelerating through the year and feeling that in particular in the fourth quarter, is that just a function of, it takes a little bit of, there's only a few percentage points of customers that that turn over every quarter and so it just takes a little bit of time to start to feel that benefit of the street rate, the positive street rate growth, or if there's something else that is, that makes kind of the fourth quarter when you start to really feel the benefit, and start to feel things in flat. Thanks.

謝謝你，然後在此基礎上，對，就像街道費率現在已經轉為正值一樣，在你之前的評論中，你談到了全年趨勢的加速，特別是在第四季度，這只是一個函數，它需要一點點，每個季度只有幾個百分點的客戶流動率，所以只需要一點時間就能開始感受到街道上持平謝謝。

You're exactly right, Michael. That, that's spot on. All other things equal as we're seeing those positive new customer rates begin to roll through. It just takes time for the snowball to build as you keep adding, more and more sequential quarters of positive rate growth. It begins to flow through to revenue. So it does take time, but it starts to, compound and improve as you get into the fourth quarter.

你說得完全正確，麥可。就是這樣，完全正確。在其他條件相同的情況下，我們看到新客戶率開始呈現正成長。隨著利率連續幾季呈正成長，雪球效應需要時間才能逐漸增加。它開始流入收入。所以這確實需要時間，但當進入第四季度時，它會開始復合和改善。

Thank you very much. Good luck in the back half.

非常感謝。祝你後半段好運。

Thanks, Michael. Salil Mehta, Green Street Advisors.

謝謝，麥可。Salil Mehta，格林街顧問公司。

Hi guys, good morning and thanks for taking my question. So just looking at the net rental rate growth, seeing, I believe, like close to a percent decrease in overall rental rate. But with moving rates roughly flat to positive, would I be correct in asserting that net decrease to [ECRIs] or this perhaps be attributed from the rent restrictions in LA? Any color here would be super helpful.

大家好，早安，感謝您回答我的問題。因此，僅從淨租金率成長來看，我相信整體租金率下降了近百分之一。但是，隨著移動利率大致持平至正值，我是否可以正確地斷言[ECRIs]的淨減少，或者這可能歸因於洛杉磯的租金限制？這裡的任何顏色都會非常有用。

Yeah, you are seeing higher headwind in LA, but I think more than ECRI. It's just a fun function of move out. You still have a roll down net rolled down with move out, which drags on your overall in place rent per square foot. So I would say that's a more significant driver than any change from an ECRI perspective, really, that's been pretty constant on year over year basis.

是的，你看到洛杉磯的逆風更大，但我認為比 ECRI 更大。這只是一個有趣的搬出功能。隨著搬出，您仍然需要支付滾存淨額，這會拖累您每平方英尺的整體租金。因此，我想說，從 ECRI 的角度來看，這是一個比任何變化都更重要的驅動因素，實際上，它在逐年的基礎上保持相當穩定。

Thank you.

謝謝。

You bet. Thank you.

當然。謝謝。

Samir Khanal, Bank of America Securities.

薩米爾·卡納爾，美國銀行證券公司。

Yes, good afternoon everybody. George, Jeff, you sound, in the opening comments you talked about the progress is being made. But you also said it's sort of gradual and maybe, I don't want to use the word softness, but it feels like maybe it's a bit lighter than you expected. Maybe let's just talk or expand around that, I guess. What do you think is sort of driving that that gradual sort of movement here?

是的，大家下午好。喬治、傑夫，你們在開場白中談到了正在取得的進展。但您也說這是一種漸進的過程，也許，我不想用「柔軟」這個詞，但感覺可能比您預期的要輕一些。我想，也許我們可以就此進行討論或擴展。您認為是什麼推動了這種漸進式的運動？

Well, this is, I think there's several things, one is mentioned at the previous question, we turned 5% or 6% of our customers a month. So it takes time for improvement in rate to build up in the rent roll and show it. . We also have a roll down, and that's, again takes time to work against that.

嗯，這是，我認為有幾件事，其中一件事是在上一個問題中提到的，我們每個月的客戶流失率為 5% 或 6%。因此，租金率的提高需要一定的時間才能在租金單上反映出來。。我們還有一個下降趨勢，這又需要時間來解決這個問題。

But this isn't a month to month business, right? The, this is a long-term business. The trends we're seeing are positive, to be positive in new customer rate for the first time since March 2022 is a meaningful inflection point, and we're look, we rode down the hill and we're looking forward to riding up the hill now.

但這不是按月計費的生意，對嗎？這是一項長期業務。我們看到的趨勢是正面的，自 2022 年 3 月以來新客戶率首次呈正成長，這是一個有意義的轉折點，我們看，我們已經走下坡路，現在我們期待著爬上坡路。

Okay, got it. And I guess just some comments if you can make on LSI the impact that that portfolio is having on same story, is it in line with your expectation? Has it been below your expectation sort of year-to-date? Because I know that portfolio also had, exposure to Florida, right? And maybe that's taken a bit longer to come back to normalization, maybe talk around kind of the LSI portfolio and the impact it's having. Thanks.

好的，明白了。我想您可以對 LSI 做出一些評論，看看該投資組合對同一故事的影響是否符合您的預期？今年迄今的表現是否低於您的預期？因為我知道該投資組合也涉及佛羅裡達州，對嗎？也許需要更長的時間才能恢復正常，也許可以討論 LSI 產品組合及其產生的影響。謝謝。

No, so the LSI portfolio is performing as expected. Rates are improving faster than the extra space rates, but that's what we expected. We believe the additions to the same store pool, which is, over 95% LSI, will add 60 basis points to the same store performance this year. So on track in all respects.

不，所以 LSI 投資組合的表現符合預期。費率的提高速度比額外空間費率的提高速度要快，但這正是我們所預料的。我們相信，同店新增顧客（超過 95% 的 LSI）將使今年的同店業績增加 60 個基點。因此各方面都進展順利。

I would just add, not specific to LSI but your comment about, the Sun Belt in general, I think is, it is correct that those have been the markets that have been disproportionately impacted by new supply. They're also a little bit of victims of tough comps after multiple years of really strong NOI growth, and now they're taking a little bit of a breather and those are tougher markets, but long term, we're very bullish on the [Sun Belt].

我想補充一點，不是針對 LSI，而是你對陽光地帶總體的評論，我認為，這些市場確實受到了新供應的不成比例的影響。在經歷了多年強勁的淨利潤成長之後，他們也成為了艱難競爭的受害者，現在他們正在稍事休息，而這些市場更加艱難，但從長遠來看，我們非常看好[陽光地帶]。

And in general on having a highly diversified portfolio with exposure to all of the growth markets throughout the country. So today, a little more of a headwind for us than some of our mid-Atlantic markets, Chicago, Northwest, they're all doing a little better, but over longer periods of time, as Joe alluded to, we have a lot of confidence in our portfolio construct.

整體而言，我們的投資組合高度多元化，涵蓋全國所有成長市場。因此，今天，對我們來說，比起我們的一些中大西洋市場、芝加哥、西北地區，逆風更大一些，它們的表現都更好一些，但從更長的一段時間來看，正如喬提到的，我們對我們的投資組合構建非常有信心。

Thanks a lot guys.

非常感謝大家。

Thanks Samir.

謝謝薩米爾。

Todd Thomas, Key Banc Capital Markets.

托馬斯 (Todd Thomas)，Key Banc Capital Markets。

Hi, thanks. First question, I just wanted to follow up, maybe you can sort of help flush this out a little bit, moving rent trends inflected positive in the quarter for the first time in a few years, you mentioned that they improved a little further to 2% in July.

你好，謝謝。第一個問題，我只是想跟進一下，也許您可以稍微幫助澄清一下，本季度的移動租金趨勢幾年來首次出現正增長，您提到 7 月份進一步改善至 2%。

I understand it takes a little time to flow through, but you also gained occupancy through June. You're still at 94.6% in July. So it sort of sounds like, stable to slightly. Improving conditions, a little bit through the balance of the summer here. Can you just sort of help, flush that out a little bit and maybe, comment on what you're seeing that, pointed you to sort of the comments around conditions being a little bit, slower here?

我知道這需要一點時間才能完成，但您在六月也獲得了入住率。7 月仍為 94.6%。因此，這聽起來有點像是，而且稍微穩定。隨著夏季的到來，這裡的條件逐漸改善。您能否幫忙稍微解釋一下，並評論一下您所看到的情況，指出這裡的條件有點慢？

Yeah, I think, I mean we give a range for same sort of revenue growth and there's assumptions all throughout that range. So, speaking to the midpoint based where we finished the first half, and if you were to solve the midpoint, it suggestion implies relative flat performance year over year in the back of the year to just slightly positive.

是的，我認為，我的意思是我們給出了相同類型的收入成長的範圍，並且在整個範圍內都有假設。因此，說到我們上半年結束的中點，如果你要解決中點問題，它意味著今年下半年的表現與去年同期相比相對持平，略微呈正增長。

A modest acceleration in the back half of the year and then at the high end that would imply more acceleration, bottom end a little bit of deceleration. And all of those factors we believe are on the table, but all the trends we're seeing right now, are looking positive. I think that's probably worth mentioning Todd in terms of just trying to square up the numbers.

下半年會出現適度加速，高端則意味著進一步加速，低端則略有減速。我們相信所有這些因素都存在，但我們現在看到的所有趨勢都是正面的。我認為就試圖平衡數字而言，可能值得提一下托德。

Our actual net rental income was 20 basis points in the quarter, and then that was partially offset by our other income line items which include bad debt. And administrative fees. Administrative fees are a little lower year over year because rental volumes are a little lower year over year because our occupancy is so high.

本季我們的實際淨租金收入為 20 個基點，但被包括壞帳在內的其他收入項目部分抵銷。以及行政費用。由於我們的入住率很高，所以租金量逐年下降，因此管理費也逐年下降。

And bad debt is a excuse me, late fees are a little lower because bad debt is lower, which indicates a healthy in-place customer. So while a headwind year over year, from the same store revenue standpoint, again, these are actually trends we think are positive for the industry.

壞帳是個藉口，滯納金會低一點，因為壞帳較低，這表示現有客戶很健康。因此，儘管同比出現逆風，但從同店收入的角度來看，我們認為這些趨勢實際上對行業有利。

Okay, that's helpful. And then Joe, you commented on, being, prudent with regards to acquisitions, sounds like you're on the sidelines a little bit until, pricing adjusts. I'm just curious if you can elaborate a little bit on pricing and that, comment, sort of what kind of pricing adjustments you'd like to see before growing a bit more acquisitive here.

好的，這很有幫助。然後喬，你評論說，在收購方面要謹慎，聽起來你在價格調整之前有點袖手旁觀。我只是好奇您是否可以詳細說明定價問題，並評論一下，在進行更多的收購之前，您希望看到什麼樣的價格調整。

Yeah, thanks, Todd. I don't want to give the impression on the sidelines at all. We have, investment team that looks at every deal that's in the market, looks at all the deals that we manage that end up on the market. We almost always get a first shot at those. We underwrite them all. We look real hard at it.

是的，謝謝，托德。我根本不想給人留下旁觀者的印象。我們有一個投資團隊，負責關注市場上的每一筆交易，並關注我們管理的所有最終進入市場的交易。我們幾乎總是能搶先實現這些目標。我們為所有這些提供承保。我們非常認真地研究它。

But we're not going to execute on deals that are, sub 5 caps stabilizing in the 5s. It just doesn't do any good for our shareholders for us to do that. So we're going to look at everything. We're going to wait for pricing gets to a level that we feel is a creative.

但我們不會執行低於 5 個上限並穩定在 5 個上限的交易。我們這樣做對我們的股東沒有任何好處。所以我們要檢視一切。我們將等待定價達到我們認為有創意的水平。

And in the meantime, we're going to use all of our other tools, be it bridge loans, restructuring, buying out JV, doing other activities, making new preferred investments, which we did one this year to make a creative investments while being prudent allocators of capital.

同時，我們將使用所有其他工具，無論是過橋貸款、重組、收購合資企業、開展其他活動、進行新的優先投資，我們今年就進行了一項新的優先投資，以便在謹慎配置資本的同時進行創造性投資。

Okay, thank you.

好的，謝謝。

Thanks Todd.

謝謝托德。

Ronald Kamden

羅納德·卡姆登

Hey, just starting with the expenses, I know we talked about property taxes last quarter, obviously continue to be pretty high over year now maybe a little bit more color on your expectation there and is this just a 2025 thing and how should we think about that going forward? Thanks.

嘿，先從費用開始，我知道我們上個季度討論了房產稅，顯然現在這筆稅額比去年同期仍然很高，也許您對這方面的預期會更詳細一些，這只是 2025 年的事情嗎？我們該如何看待未來的發展？謝謝。

Yeah, thanks for the question, Ron. You, you're exactly right. Certainly high year over year, the positive news is we, we've lapsed the com. So we took that pain and that markup, primarily driven by some of our life storage properties and in the second half of the year, we anticipate that coming down significantly.

是的，謝謝你的提問，羅恩。你，你說得完全正確。肯定是逐年增長，積極的消息是我們已經失去了聯繫。因此，我們承受了這種痛苦和加價，這主要是由我們的一些生活存儲資產所驅動的，並且在今年下半年，我們預計這一數字將大幅下降。

And in terms of all of our other expense line items, also expect to see on average as is indicated by our range relative to our first half performance, deceleration and expense growth in the back half of the year.

就我們所有其他費用項目而言，預計平均而言，正如我們上半年業績範圍所示，下半年將出現減速和費用增長。

Great, helpful. And then my second question was just going back to the comments about maybe the same store revenue being a little bit lighter than expected. I guess I just love some context in terms of just the top of the funnel demand and your expectations.

很棒，很有幫助。我的第二個問題是回到關於同店收入可能比預期略低的評論。我想我只是喜歡一些有關漏斗頂部需求和您的期望的背景。

Like, is it, does it mean that the market is maybe performing? Below sort of average for this environment or maybe your expectation was that you'd have a faster recovery that didn't happen. Just trying to get a sense of, what happened versus your expectations and what does that mean in terms of the health of that the customer of the market and everything. Thanks.

例如，這是否意味著市場可能正在表現良好？低於此環境的平均水平，或者也許您期望的是能夠更快地恢復，但這並沒有發生。只是想了解一下，與您的預期相比發生了什麼，以及這對市場客戶的健康以及一切意味著什麼。謝謝。

Sure, I would say, as Joe alluded to in one of his previous answers, it's not perfectly sequential month by month. We're not managing this month to month, but for the quarter, it did come in a little lighter than we would have expected relative to the rate progress we had seen in the previous three quarters.

當然，我想說，正如喬在他之前的回答中提到的那樣，它並不是逐月完美連續的。我們並不是逐月管理這個問題，但就本季而言，相對於前三個季度的利率進展，它確實比我們預期的要輕一些。

So a little lighter on the same store revenue side than we than we expected, a little better in some of the ancillary income streams which net put us right on target. As far as, how we then view that as it pertains to the health of the industry, I think we're more focused on forward indicators such as rental volume, new customer rates, as well as our existing customer behavior which all look positive.

因此，同店收入比我們預期的要少一些，一些輔助收入流則要好一些，這使我們達到了目標。至於我們如何看待它與行業健康狀況的關係，我認為我們更關注前瞻性指標，例如租賃量、新客戶率以及我們現有的客戶行為，這些指標看起來都是正面的。

Yeah, I wouldn't, the question around demand. I think demand is a little harder to measure using art historic tools because of the introduction of AI to search, which makes it harder to measure, Google search terms and things like that.

是的，我不會問有關需求的問題。我認為使用藝術歷史工具來衡量需求有點困難，因為人工智慧引入了搜索，這使得衡量谷歌搜尋字詞等變得更加困難。

So, our belief and experience is that demand is steady, that there is demand in the market. That our systems are able to cap capture a disproportionate share of that as indicated by our occupancy levels and that we, the market is not weakening, but if anything incrementally improved.

因此，我們的信念和經驗是需求是穩定的，市場上有需求。我們的系統能夠限制不成比例的份額，正如我們的入住率所顯示的那樣，而且我們的市場並沒有減弱，反而在逐步改善。

And, I think then when you layer on a gradually improving new supply outlook, that also gives us confidence that we'll continue to pick up pricing power and you see that at the market level. You can see the improvement and the rebound happening in the markets less impacted by new supply and then in some markets where new supply is more prevalent, it's going to take a little more time.

而且，我認為，當你逐步改善新的供應前景時，這也讓我們有信心繼續獲得定價權，你可以在市場層面看到這一點。您可以看到，受新供應影響較小的市場正在改善並出現反彈，而在一些新供應更為普遍的市場中，這還需要更多時間。

That's really helpful. Thanks so much.

這真的很有幫助。非常感謝。

Thanks, Ron.

謝謝，羅恩。

Juan Sanabria, BMO Capital Markets.

Juan Sanabria，BMO 資本市場。

Hi, thanks for the time. Just curious to see if we can talk a little bit about the pros and the loan book and what you're seeing there, and is there the expectation that you get any repayments? I know the next point press that's out there, just curious on any note repayments or how you think that business evolves in the second half and the '26.

你好，謝謝你抽出時間。只是好奇，我們是否可以談論優點和貸款帳簿以及您在那裡看到的情況，以及您是否期望獲得任何還款？我知道下一點新聞，只是好奇任何票據償還情況或您認為下半年和 26 年業務將如何發展。

So we're still seeing good demand for our bridge loan product. We slightly increased our guide as to how many loans we're going to keep on the balance sheet. Part of that is to offset the smartop preferred we were pre-paid in the early part of this quarter.

因此，我們仍然看到過橋貸款產品的需求旺盛。我們稍微提高了在資產負債表上保留多少貸款的指導。其中一部分是為了抵消我們在本季初預付的 smartop 優先股。

We have great flexibility to allocate capital to that program by holding or selling a notes, which allows us to react to other opportunities and, redirect capital in that way. I think the balances will be about what they are now, plus it's going forward, perhaps with a different mix of A's and B's inside that balance, but it's a good, a good healthy program that is a very helpful tool for us, particularly in this market environment. We have not been notified by any of our other preferred holders of a imminent pay payback.

我們可以透過持有或出售票據來靈活地為該計劃分配資金，這使我們能夠對其他機會做出反應，並以這種方式重新分配資金。我認為餘額將與現在差不多，而且它還會繼續發展，也許餘額中的 A 和 B 會有不同的組合，但這是一個很好的、很好的健康計劃，對我們來說是一個非常有用的工具，特別是在這個市場環境下。我們的任何其他優先股持有人尚未通知我們即將償還債務。

And then, curious how you guys are dispositions, if there's any pruning being considered with regards to maybe some exposure with life and just your strategy there. Yeah.

然後，我很好奇你們的性格如何，是否有考慮過修剪，也許是在生活中的一些接觸，以及你們的策略。是的。

So you might be asking because you saw we just put a 22 store portfolio on the market for sale. These are all, former LSI properties. When we merged with LSI, we said we were going to spend a couple of years improving the NOI of the properties, getting to know the portfolio, and then after two years, we would qualify for 1031 tax,10 exchange, treatment. And these are the properties we've selected to dispose of, to reshape and optimize the portfolio.

所以你可能會問，因為你看到我們剛剛將 22 家商店組合投放到市場上出售。這些都是以前的 LSI 財產。當我們與 LSI 合併時，我們說過要花幾年時間提高房產的淨營業利潤，了解投資組合，然後兩年後，我們將有資格享受 1031 稅收、10 交換待遇。這些是我們選擇處置、重塑和優化投資組合的資產。

Make any sense of what the dollar size and proceeds could be?

您能理解美元規模和收益是多少嗎？

I, we'll have the market tell us what the sales price will be.

我，我們將讓市場告訴我們銷售價格是多少。

Fair enough. Thanks, Jos.

很公平。謝謝，喬斯。

Sure.

當然。

Michael Griffin, Evercore.

邁克爾·格里芬，Evercore。

Great, thanks. Maybe just starting on market performance, just looking at some of your top markets. I noticed that NYC and Chicago were maybe a little bit lighter, at least relative to maybe my expectations. I know one quarter doesn't make a trend, but anything to read into here, I mean, I imagine that that these kind of markets, would be expected to be better performers obviously relative to the Sun Belt, but still maybe maybe a little surprised to see them down year over year.

太好了，謝謝。也許只是從市場表現開始，只專注在一些主要市場。我注意到紐約和芝加哥可能稍微輕鬆一些，至少相對於我的預期而言。我知道一個季度並不能代表一種趨勢，但從這裡可以解讀出什麼，我的意思是，我認為這類市場的表現顯然會優於陽光地帶，但看到它們逐年下降，也許還是會有點驚訝。

So thanks for the question. From the same store revenue standpoint, the modestly negative same store rev in the New York MSA. More of that impact is northern New Jersey and Long Island, more so than the core boroughs, have been impacted more by new supply than for New York itself. And on Chicago, on the other hand, we actually saw some acceleration Q1 to Q2. In terms of same store revenue progress, so we're actually happy with Chicago, certainly would like it better and and more in line with your forecasts if they were higher, but we see positive trends in Chicago.

感謝您的提問。從同店收入的角度來看，紐約大都會統計區的同店收入略為負值。與核心行政區相比，新澤西州北部和長島受到的影響更大，新供應對它們的影響比紐約本身更大。另一方面，在芝加哥，我們實際上看到了第一季到第二季的一些加速。就同​​店收入進展而言，我們對芝加哥的情況確實感到滿意，如果情況更高的話，我們當然會希望它更好，也更符合您的預測，但我們看到了芝加哥的積極趨勢。

Thanks, Jeff. That's helpful context and maybe just more broad based question around, demand and future fundamental performance. I know we're still in this period of higher mortgage rates, lower housing velocity. I mean, Joe, it seems like to you it's more a supply question of when fundamentals inflect, but do you really need that housing market to come back for people to kind of sound the all clear and get kind of performance and fundamentals accelerating to maybe historical trends or just how are you thinking about the housing market in the context of storage demand?

謝謝，傑夫。這是很有幫助的背景，也許只是圍繞著需求和未來基本表現的更廣泛的問題。我知道我們仍處於抵押貸款利率較高、房屋流通速度較低的時期。我的意思是，喬，對你來說，這更像是一個供應問題，即基本面何時會發生轉變，但你是否真的需要房地產市場復甦，讓人們聽起來一切都清楚，並獲得某種表現和基本面加速到歷史趨勢，或者你是如何看待在存儲需求背景下的房地產市場的？

So I don't think we need the housing market to come back to, experience a recovery. I think it would be helpful. I think the slope will be better if we have a strong housing market. But, there's plenty of demand out there. We're starting to reacquire pricing power. I think we're on the other side of the trough. But clearly a housing, strong housing market is better than a weak housing market, but not necessary.

因此我認為我們不需要房地產市場恢復或復甦。我認為這會有幫助。我認為，如果我們擁有強勁的房地產市場，斜率將會更好。但是，市場上的需求量很大。我們開始重新取得定價權。我認為我們已經到了低谷的另一邊。但顯然，強勁的房地產市場比疲軟的房地產市場好，但不是必要的。

Great, that's it for me and Jeff, congrats on the promotion.

太好了，對我和傑夫來說就是這樣，恭喜你們升職。

I appreciate it.

我很感激。

Caitlin Burrows, Goldman Sachs.

凱特琳·伯羅斯，高盛。

Hi, this is [Jeremy Kee] on for Caitlin. I guess now that we're in peak leasing season, I guess how is seasonality expectations the last year and what do you think about for the second half of the year?

大家好，我是 [Jeremy Kee]，為 Caitlin 播報。我想現在我們正處於租賃旺季，我想去年的季節性預期如何？您對今年下半年有何看法？

Thanks. So, I would say in line with our expectations, last year we had a more muted rental season and we called for in our guidance something similar. We expected it to look pretty similar in '25 that it did to '24. We maintained higher occupancy throughout the shoulder seasons than we typically do.

謝謝。因此，我想說，根據我們的預期，去年我們的租賃季節比較平靜，我們在指導中也提出了類似的要求。我們預計 25 年的版本看起來會和 24 年的版本非常相似。在整個平季，我們的入住率都比平常高。

And our hope was that with that higher occupancy we outsized pricing power, especially with new customers. We saw to some extent, I think we had hoped to see a little bit more, but continue to see it marching in the right direction in July. So overall, Jeremy, I'd say in line with our expectations.

我們希望透過提高入住率來擴大我們的定價權，尤其是針對新客戶。我們在某種程度上看到了，我想我們希望看到更多一點，但在 7 月繼續看到它朝著正確的方向前進。所以總的來說，傑里米，我認為這符合我們的期望。

Got it thanks. And I guess just for like the existing customer, how are you seeing their activity, given that there's less, housing turnover that they're staying longer is that being able to push ECRIs more, yeah, anything on that be helpful, thanks.

明白了，謝謝。我想，對於現有客戶來說，您如何看待他們的活動，考慮到住房週轉率較低，他們停留的時間較長，是否能夠推動 ECRI 的進一步發展，是的，任何有關這方面的事情都會有所幫助，謝謝。

Yeah, great question. So one of the strengths of this business is the strength of the existing customer. We are seeing fewer vacates, increasing length of stay, as Jeff mentioned earlier, bad debt, it's below 2%, very healthy customers are accepting ECRI at the same rate that they have previously. So there's really no sign of weakness or danger with existing customer behavior. But thank you.

是的，很好的問題。因此，這項業務的優勢之一就是現有客戶的優勢。我們看到空置率下降，入住時間增加，正如 Jeff 之前提到的，壞帳率低於 2%，非常健康的客戶接受 ECRI 的比率與以前相同。因此，現有的客戶行為確實沒有任何軟弱或危險的跡象。但謝謝你。

Thank you.

謝謝。

Nicolas Yulico, Scotia Bank.

尼古拉斯尤利科，加拿大豐業銀行。

Hello. This is [Victor Fer] with Nicolas Yulico, and so you mentioned the disposition of these 22 LSI assets. Just trying to understand, excluding these assets, what would be the spread between LSI and legacy [EXR] rents? I think in early June you mentioned around 5% to 6% for the whole portfolio. Did you look at the portfolio excluding these positions.

你好。我是 [Victor Fer] 和 Nicolas Yulico，您提到了這 22 個 LSI 資產的處置。只是想了解一下，排除這些資產，LSI 和傳統 [EXR] 租金之間的差額是多少？我認為您在 6 月初提到整個投資組合的收益率約為 5% 到 6%。您是否查看過不包括這些部位的投資組合？

So I'm not done that. I've not done that analysis excluding these assets. So we could probably do that and get back to you, but I don't have that number.

所以我還沒完成那件事。我沒有做過排除這些資產的分析。所以我們可能可以這樣做並回覆您，但我沒有那個號碼。

And then broadly, is it still around 5% to 6% or it's contracted since June?

那麼總體而言，它仍然在 5% 到 6% 左右，還是自 6 月以來一直在收縮？

It's still about 5% to 6%.

仍然在5%到6%左右。

Got it. And then second question would be more like a broad on macro assumptions embedded in the second half '25 guidance. And from your point of view, what are the major catalysts to follow that might lead to hitting lower or higher end of SFO guidance?

知道了。第二個問題更像是對 25 年下半年指引中所包含的宏觀假設的廣泛討論。從您的角度來看，哪些主要催化劑可能會導致達到 SFO 指導的較低或較高水平？

Sure, so it the, given our high occupancy, it, it's hard to imagine that becoming an incremental driver from here to contribute to additional revenue growth acceleration. So I think your key driver at the high end would be stronger new customer rates and that's flowing through more quickly to to our revenue growth and the bottom end, probably a deterioration in occupancy, greater than normal seasonal, drop off in occupancy.

當然，考慮到我們的高入住率，很難想像它會成為從現在開始的增量驅動力，從而促進額外的收入成長加速。因此，我認為高端市場的主要驅動力是更強勁的新客戶率，這會更快地轉化為我們的收入成長，而低端市場的主要驅動力可能是入住率的下降，比正常的季節性入住率下降幅度更大。

All right, thank you.

好的，謝謝。

Eric Wolfe, Citi.

花旗銀行的埃里克·沃爾夫。

Hey, thanks. There's been a good amount of volatility in the stock recently. Can you just remind us how you look at buybacks versus your cost of capital and other uses of capital today? I think you bought a small amount of stock around 126 earlier this year, but, the opportunity went away quickly.

嘿，謝謝。最近該股票波動很大。您能否提醒我們一下，您如何看待回購與資本成本以及當今其他資本用途的關係？我認為您今年早些時候以 126 左右的價格購買了少量股票，但是機會很快就消失了。

Yeah, that was, an interesting day where we had about a two-hour window before, the President announced a pause on tariffs and we got out of our price band. So the Board of Directors, approves a certain band of pricing in which we'll use capital to repurchase our stock and as you point out, it's a capital allocation decision, and we've done it in the past and we're certainly not afraid to do it in the future.

是的，那是有趣的一天，在總統宣布暫停關稅之前，我們有大約兩個小時的時間，我們脫離了價格區間。因此，董事會批准了一定的定價區間，我們將使用資本回購股票，正如您所指出的，這是一個資本配置決策，我們過去已經這樣做了，而且我們當然也不怕在未來這樣做。

Right. And then you mentioned the impact of AI on search and how maybe that's not going to make sort of these Google search terms is a good proxy for demand. I guess do you have a sense for what percentage of your customers are using chat GPT or AI to find the best storage solution, versus like say this time last year or a couple of years ago. And do you think that makes customers a bit more sensitive on the front and the pricing just because they can sort of quickly analyze, the cheapest option within a certain area.

正確的。然後您提到了人工智慧對搜尋的影響，以及這可能不會使這些谷歌搜尋字詞成為需求的良好代表。我想您是否知道，與去年這個時候或幾年前相比，有多少比例的客戶正在使用聊天 GPT 或 AI 來尋找最佳儲存解決方案。您是否認為這會讓客戶對價格更加敏感，因為他們可以快速分析某個區域內最便宜的選擇。

Yeah, I, I'm going to apologize. I don't have a lot of good answers on this. This is changing so quickly, and we have a lot of people who are a lot smarter than me, spending a lot of time trying to figure it out. I mean, in the beginning of the year, 15% of searches came up with a, [AIO] at the beginning of it, and now that's over 65%, I think, in six or seven months.

是的，我，我要道歉。對此我沒有很多好的答案。這種情況變化得太快了，我們有很多比我聰明的人，花了很多時間試圖弄清楚這一點。我的意思是，在今年年初，15% 的搜尋以 [AIO] 開頭，而現在，我認為在六、七個月內，這個數字已經超過 65%。

So we're trying to understand and take advantage of the changes that are going on in the search landscape, but I do have confidence in our team and our ability to be out front in this.

因此，我們正在努力了解並利用搜尋領域正在發生的變化，但我確實對我們的團隊和我們在這方面處於領先地位的能力充滿信心。

Eric, one piece of color that I would add is, well it does definitely create some noise in the data in terms of searches. One thing that we've noticed is that a lot of the types of inquiries customers are putting into chat GBT and other AI models are more informational in nature, so if they were. Wondering what size of a unit to rent or the benefits of climate controlled versus not, etc.

艾瑞克，我想補充一點，它確實會在搜尋數據中產生一些噪音。我們注意到的一件事是，客戶在聊天 GBT 和其他 AI 模型中提出的許多類型的查詢本質上都更具資訊性，所以如果它們是這樣的話。想知道要租多大的房間，或是有氣候控制和無氣候控制的益處等等。

That's a good place to get those common answers, but customers that have the intent to transact still are tending to click through and go and are going to websites. So we've seen while it. Maybe it's a little murkier on just a total traffic from a traffic standpoint, the conversion rates for those customers that are clicking to the website have improved and increased. So, again, evolving very quickly like Joe mentioned, but something that we're tracking very closely.

這是獲取常見答案的好地方，但有交易意圖的客戶仍然傾向於點擊並訪問網站。所以我們已經看到了它。從流量的角度來看，總流量可能有點模糊，點擊網站的客戶的轉換率已經提高和增加。因此，正如喬所提到的那樣，事情發展非常快，但我們正在密切跟踪。

Got it. That's helpful. Thank you.

知道了。這很有幫助。謝謝。

Ravi Vaidya, Mizuho.

瑞穗的 Ravi Vaidya。

Hi guys. It appears that you guys are largely done for the year with acquisitions, and you mentioned earlier that pricing is getting tighter. I wanted to ask a bit more about the competitive dynamics. Are there more players coming to markets and maybe the bit spread narrowing? I would have thought that it would have maybe been more buyers on the sidelines, given the uncertainty and fundamentals, so just want to hear your thoughts on that.

嗨，大家好。看來你們今年的收購工作基本上已經完成，而且你們之前提到定價越來越緊。我想進一步詢問一下競爭動態。是否會有更多的參與者進入市場，價差可能會縮小？考慮到不確定性和基本面，我原本以為可能會有更多的買家在場外觀望，所以我想聽聽你對此的看法。

I'm sorry if I gave the impression that we're done with acquisitions. Maybe you're referencing our guidance versus what we have. We have, under contract. We're still very active at looking at everything, underwriting everything. We have capital, we have joint venture partners. If opportunities arise, we will execute on them. So we're not sending the investment team home for a vacation for the rest of the year.

如果我給人的印像是我們已經完成了收購，我很抱歉。也許您正在參考我們的指導而不是我們所擁有的。我們已經簽訂了合約。我們仍然非常積極地專注於一切、承保一切。我們有資本，有合資夥伴。如果機會出現，我們就會抓住它。因此，我們不會讓投資團隊在今年剩餘時間回家度假。

That being said, I would have thought cap rates would have moved more than they have given interest rates and and other factors, and they haven't, and there still are buyers out there transacting at what we consider to be high prices. And as long as that continues, we'll continue to remain disciplined, but in no way are we not in a position or not willing to execute on good good opportunities.

話雖如此，我原本以為，考慮到利率和其他因素，資本化率的變動幅度會比現在更大，但事實並非如此，仍然有買家以我們認為的高價進行交易。只要這種情況持續下去，我們就會繼續保持紀律，但我們絕對不會沒有能力或不願意抓住好的機會。

And Ravi I that as we think of guidance, some of the reasons not necessarily plugging in a lot of additional volume that hasn't been identified at this point of the year, it does take some time between negotiating and contracting deal and closing.

拉維，當我們考慮指導時，一些原因不一定是插入今年這個時候尚未確定的大量額外交易量，談判、簽訂合約和結束之間確實需要一些時間。

And then also the contribution to FFO for the remainder of the year if it's a late, Q3, Q4 close, it is going to be relatively immaterial on your overall FFO for the year. So from our perspective, it doesn't make sense to speculate too much on volume. We'd rather plug it in once we have something specific identified.

然後，如果第三季、第四季結束較晚，那麼對今年剩餘時間的 FFO 的貢獻對於您今年的整體 FFO 來說相對來說並不重要。因此從我們的角度來看，對交易量進行過多的猜測是沒有意義的。一旦我們確定了某些具體的東西，我們寧願把它插上去。

Got it. That's helpful. Right. I was just comparing what was, done or under contract it versus the guidance provided, but that additional color is helpful here, and just one more. I understand. Can you please identify some markets where you're starting to see supply headlines ease and thus expect pricing and revenue to improve on out.

知道了。這很有幫助。正確的。我只是將已經完成的或根據合約完成的與所提供的指導進行比較，但額外的顏色在這裡很有幫助，而且只是其中之一。我明白。您能否指出一些您開始看到供應頭條緩解並因此預計價格和收入將會改善的市場。

I apologize, Robbie, our phone cut out just a little bit there. Could you say that again? I caught the part about markets, but.

羅比，很抱歉，我們的電話剛才斷了一點。你能再說一次嗎？我了解了有關市場的部分，但是。

Sure, sorry about that. Maybe just some markets we're starting to see supply headwinds ease a bit and maybe where you expect to see a greater acceleration of stand to revenue as a result of that.

當然，對此我很抱歉。也許只是在某些市場，我們開始看到供應逆風有所緩解，也許您預計因此會看到收入成長的更大加速。

Yes, thanks for repeating the question, Ravi. It's in general, the markets that were earlier to the new supply cycle. So a few examples I would give are Portland, Seattle, Chicago, Denver, have seen pressures from new supply ease, and generally speaking, those are also the markets where you've seen revenue pick up earlier. You also have certain markets that I think we would classify as having been pretty steady. Throughout the cycle, didn't see as much new supply and it's just been a little more stable, I think Boston and Washington DC fit squarely in in that category.

是的，謝謝你重複這個問題，拉維。總體而言，這是新供應週期早期的市場。我想舉幾個例子，波特蘭、西雅圖、芝加哥、丹佛等地的新供應壓力有所緩解，一般來說，這些市場的收入也早前有所回升。我認為某些市場也相當穩定。在整個週期中，沒有看到太多的新供應，而且只是稍微穩定一些，我認為波士頓和華盛頓特區完全屬於這個類別。

Got it. Thanks so much, guys.

知道了。非常感謝大家。

Thank you. Eric Luebchow, Wells Fargo.

謝謝。艾瑞克‧盧布喬（Eric Luebchow），富國銀行。

I appreciate it. Maybe you could you touch on the 30 p.m. program. I it looks like you added a 174 net, talk about, where you're seeing the string from, and are you seeing, any, new opportunities from partners of the LSI portfolio that maybe gives you, the ability to keep growing there.

我很感激。也許您可以談談晚上 30 點的節目。看起來您添加了 174 個網絡，請談談您從哪裡看到的字串，以及您是否看到了來自 LSI 產品組合合作夥伴的任何新機會，這些機會可能使您能夠繼續在那裡發展。

Yeah, thank you for the question. So we've had two fantastic quarters growing our management plus business, our third party management business, as you mentioned, we've added 174 stores net this year, and some of that is from new partners that we were introduced to through the LSI merger. It's been one of the benefits of the merger, as well as bridge loans, making bridge loans to those partners as well. So, it's been a great 6 months of the year. I think it's largely due to a difficult operating environment where private operators come to the realization, or their equity partners do or their lenders do, that they need professional management. They need the best operator in the business managing their stores.

是的，謝謝你的提問。因此，我們經歷了兩個出色的季度，我們的管理加業務、我們的第三方管理業務取得了成長，正如您所提到的，我們今年淨增了 174 家門市，其中一些是透過 LSI 合併引入的新合作夥伴。這是合併的好處之一，還有過橋貸款，也為這些合作夥伴提供過橋貸款。所以，這是一年中很棒的六個月。我認為這主要是由於經營環境艱難，私人業者、其股權合作夥伴或貸款人意識到，他們需要專業的管理。他們需要業內最好的經營者來管理他們的商店。

I would not be surprised if the second half of the year we grow, we continue to grow but grow at a slower pace as the transaction market is picking up, and we probably will see some exits from the portfolio, but I think this is a great growth area from the company, for the company and not only adds directly.

如果下半年我們繼續成長，但隨著交易市場的回暖，成長速度會有所放緩，我不會感到驚訝，我們可能會看到一些投資組合的退出，但我認為這對公司來說是一個巨大的成長領域，對公司來說不僅僅是直接增加。

Management fees and tenant insurance, but also provides these and ancillary benefits of opportunities to purchase and opportunities to make loans.

管理費和租戶保險，也提供這些以及購買機會和貸款機會的附帶好處。

Appreciate that, Joe. And I guess just one follow up, apologize if I missed it, but I think you had talked about top of funnel demand measured by search on your last call being, up year over year. So just wondering how it's trended, the last couple months, given some of the macro uncertainty that's out in the market, for the second half of the year. Thank you.

非常感謝，喬。我還有一個問題想問，如果沒注意到的話請見諒。我記得你上次電話會議中提到過，透過搜尋衡量的漏斗頂端需求是年增的。所以我只是想知道，考慮到市場上存在的一些宏觀不確定性，過去幾個月下半年的趨勢如何。謝謝。

Yeah, sure. So, if you look at top of funnel by generic Google search terms, it remains elevated compared to prior years, but we believe some of this elevation, and we don't know how much is due to AI search, people doing multiple searches, and it's not an increase in customers.

是的，當然。因此，如果您透過通用 Google 搜尋字詞查看漏斗頂部，它與前幾年相比仍然較高，但我們認為這種上升有一定程度，我們不知道有多少是由於人工智慧搜尋、人們進行多次搜索，而不是客戶數量的增加。

So we see a increase in generic search terms. We don't see a proportional increase of people coming to our website. As Jeff mentioned, we see a higher conversion rate of folks when they do get to the website, which tells us, which suggests to us. That those customers are better educated. They've asked more questions through AI. They know more what they want, and then when they get to our website, they convert at a higher level. That's kind of our early observations in a changing environment.

因此，我們看到通用搜尋詞增加。我們沒有看到造訪我們網站的人數成比例地增加。正如傑夫所提到的，我們看到，當人們造訪網站時，他們的轉換率更高，這告訴我們，也給了我們建議。這些顧客受過更好的教育。他們透過人工智慧提出了更多問題。他們更清楚自己想要什麼，然後當他們造訪我們的網站時，他們的轉換率會更高。這是我們在不斷變化的環境中所做的早期觀察。

Okay, great. Thank you.

好的，太好了。謝謝。

Michael Mueller, JP Morgan.

摩根大通的邁克爾·穆勒。

Yeah, hi. I know it's not black and white in terms of what's a consumer versus a business user, but do you have a sense if one of those categories is clearly ahead of the others in terms of seeing better demand and for a follow up when it comes to ERI pushback, are you getting more pushback from one of those categories versus the other as well?

是的，你好。我知道，對於消費者和商業用戶而言，這並不是黑白分明的，但是您是否感覺到，如果其中一個類別在需求方面明顯領先於其他類別，並且在 ERI 阻力方面有後續行動，那麼您是否會從其中一個類別中受到比其他類別更多的阻力？

So it's a hard question to answer because the business consumer is not a monolithic entity, right? There's national pharmaceutical chains with big balance sheets, and there's the local landscaper who's much more akin to a retail customer. I think you're, you kind of what's behind your question I think is correct, is the big national businesses stay longer.

所以這個問題很難回答，因為商業消費者不是一個單一的實體，對嗎？有資產負債表龐大的全國性製藥連鎖店，也有更像零售客戶的當地園藝師。我認為你的問題背後的含義是正確的，那就是大型全國性企業會停留更長時間。

React better to ECRI and are better overall customers or maybe some of the small local businesses are not as different as the retail customer.

對 ECRI 的反應更好，並且是更好的整體客戶，或者也許一些小型本地企業與零售客戶沒有那麼大的差異。

Got it. Okay. That was it. Thank you.

知道了。好的。就是這樣。謝謝。

Thanks Mike.

謝謝邁克。

Alex Murphy Truist Securities.

亞歷克斯墨菲 Truist 證券。

Hi, thank you for taking my question. Given that same store revenue was flat and NOI declined by around 3%, are there any specific levers management is considering to improve property level margins going into the back half of 2025?

你好，謝謝你回答我的問題。鑑於同店收入持平，淨營業利潤下降約 3%，管理層是否正在考慮採取任何具體措施來提高 2025 年下半年的物業水平利潤率？

I think the main one will be on the expense side. Margins were suppressed in the first half of the year because of higher than normal expenses, and as we continue to push on the revenue side, it also gives us an opportunity for additional margin expansion.

我認為主要問題在於費用方面。由於費用高於正常水平，上半年利潤率受到抑制，隨著我們繼續努力提高收入，這也為我們提供了進一步擴大利潤率的機會。

One example would be our marketing spend. We get a higher return on that spend. It's something that we can measure and see the returns on it. And as we can deploy those marketing dollars, if we're seeing a positive return, we'll keep doing it. So there are different levers you can pull in terms of marketing, discounting, pricing, and we're always evaluating all of the levers to try to maximize revenue. Thank you.

我們的行銷支出就是一個例子。我們從這筆支出中獲得了更高的回報。這是我們可以衡量並看到其回報的東西。當我們能夠部署這些行銷資金時，如果我們看到積極的回報，我們就會繼續這樣做。因此，在行銷、折扣、定價方面，您可以利用不同的槓桿，並且我們始終在評估所有槓桿，以嘗試最大化收入。謝謝。

(Operator Instructions) Salil Mehta, Green Street Advisors.

（操作員指示）Salil Mehta，Green Street Advisors。

Hi guys, and thanks for taking my second question here. I'd like to just touch a bit more on market and reaching performance. It looks like Sunbelt areas which have been kind of beaten up. They look to finally be turning the corner and achieving some sort of stabilization. Does this ring true? And what are you guys expecting from markets in this region in the future?

大家好，感謝您回答我的第二個問題。我想再多談談市場和業績表現。它看起來就像是遭到破壞的陽光地帶。他們看起來終於要渡過難關並實現某種程度的穩定。這聽起來是真的嗎？你們對該地區未來的市場有何期待？

In terms of absolute performance is you're indicating, those are our tough tougher markets. From a sequential improvement standpoint, I think it's going to be a market by market situation, and I think it's highly tied to new supply and the rate at which supply has been delivered is absorbed, as well as how quickly or how much additional supply is still to be delivered in those markets.

就您所指出的絕對表現而言，這些都是我們面臨的更嚴峻的市場。從連續改善的角度來看，我認為這將是一個市場情況，我認為這與新供應和供應交付被吸收的速度以及這些市場仍需交付的速度或數量密切相關。

So, apologies for the more theoretical answer, but I think it just depends on the market and in the individual dynamics of each market. And while this may be obvious for us, these markets are micromarkets, much smaller than MSAs, so it can even vary where new supply is being delivered relative to our specific properties.

因此，對於更理論化的答案，我深表歉意，但我認為這取決於市場以及每個市場的個人動態。雖然這對我們來說顯而易見，但這些市場是微型市場，比 MSA 小得多，因此相對於我們的特定房產，新供應的交付地點甚至可能有所不同。

Thanks for the call.

謝謝您的來電。

Brendan Lynch, Barclays.

巴克萊銀行的布倫丹·林奇。

Great, thanks for taking my question and Jeff, congrats on the new role. Thanks for follow up about AI.

太好了，謝謝你回答我的問題，傑夫，恭喜你獲得新職位。感謝您對 AI 的關注。

It's come up a few times on the call. In the past, obviously Google took the the majority of your marketing spending. You just talk about how you might be distributing some of that marketing spending between chat GBT and Grock and any other AI models that might be out there.

這個問題在通話中出現過幾次。過去，谷歌顯然佔據了大部分的行銷支出。您剛剛談到如何在聊天 GBT 和 Grock 以及任何其他可能存在的 AI 模型之間分配部分行銷支出。

It's an easy answer today, but maybe not tomorrow. So far, the companies have not tried to monetize their AI platforms. So we spend zero on it, but I know it wasn't free to buildchat GPT, so I'm sure that will come in the future. But, right now, it's, almost all our dollars go to Google.

今天這個問題很容易回答，但明天可能就不是了。到目前為止，這些公司還沒有嘗試將其人工智慧平台貨幣化。所以我們對此沒有花費任何錢，但我知道建立 GPT 聊天並不是免費的，所以我相信未來會發生這種情況。但是，現在，我們幾乎所有的錢都流向了Google。

Okay, great. Thanks for the color. And then Jeff, you had mentioned that the shoulder season, in the spring was a bit better in terms of occupancy. Should we extrapolate anything from that in terms of how the shoulder season might play out in the fall on the other side of the equation. Thanks.

好的，太好了。謝謝你的顏色。然後傑夫，你提到春季的平季入住率會好一些。我們是否應該從中推斷秋季平季可能如何發展？謝謝。

I think we were more aggressive with new customer rates to maintain that higher occupancy. Our models found that to be a better solution for maximizing revenue, and so that's what we did, and I think we'll continue to monitor it as we go into the fall. Right now rental volume continues to be healthy. We've been able to maintain our occupancy in in July.

我認為我們在新客戶價格方面採取了更積極的措施，以保持較高的入住率。我們的模型發現這是最大化收入的更好的解決方案，所以我們就這麼做了，我認為我們會在秋天繼續監控它。目前租賃量持續保持健康。七月我們的入住率仍然能夠維持。

And I would anticipate that we'll still have high occupancy relative to any historical levels, but the question will be, what the balance is in terms of Taking rate versus holding occupancy, which we'll continue to evaluate as we go, and that's really one of the significant advantages of having such a large portfolio. We can test these things in relatively short periods of time and get real-time feedback as far as what the customer is willing to accept. Great, thanks for the call.

我預計我們的入住率相對於任何歷史水平仍將很高，但問題是，在收取費用與保持入住率方面，平衡點在哪裡，我們會繼續評估，而這確實是擁有如此龐大的投資組合的顯著優勢之一。我們可以在相對較短的時間內測試這些東西，並就客戶願意接受的內容獲得即時回饋。太好了，謝謝你的來電。

You bet. Thanks, Bren.

當然。謝謝，布倫。

Omotayo Okusanya, Deutsche Bank.

Omotayo Okusanya，德意志銀行。

Yes. Good morning, Jeff, congrats, that my question is around you guys talk, you talked about kind of fundamental stabilizing, even, some operating metrics are infecting positively, but it takes some time to actually hit the bottom line. And so I guess when we kind of think about when we kind of start to see maybe some better earnings going forward.

是的。早安，傑夫，恭喜，我的問題是關於你們的談話，你們談到了基本面的穩定，甚至一些營運指標正在產生積極的影響，但實際上需要一些時間才能觸及底線。所以我想當我們開始思考何時才能看到未來更好的收益。

I mean, does that have to boil down to Street rate just moving up even more aggressively to, 10% increases, is it more of a case of somehow, move out volume kind of slows down, given the negative mark to market associated with it right now. Just trying to get a sense of when some other stabilization or inflection, we can really kind of start seeing it in the bottom line.

我的意思是，這是否必須歸結為街頭利率進一步大幅上漲至 10%，考慮到目前與之相關的負面市場價格，這是否更像是某種程度上遷出量有所放緩的情況。只是想了解何時出現其他穩定或拐點，我們才能真正開始在底線上看到它。

I mean, I think there's a lot of factors that could help us, including improvement in rate, which we're starting to see, moderation of vacates, improving length of stay, exploration of states, some states of emergencies. Those things will all help us improve the slope of the recovery.

我的意思是，我認為有很多因素可以幫助我們，包括我們開始看到的利率的提高、騰空的適度化、停留時間的延長、狀態的探索、一些緊急狀態。這些都將幫助我們提高復甦的勢頭。

And with timing kind of being.

並且具有時間上的安排。

CBD. I think timing is TBD.

CBD。我認為時間還有待確定。

I think a good example of that is the question earlier about housing, is it necessary to continue marching in the right direction? No, would accelerate our pace, absolutely. So I think there's a number of examples like that where the cadence will dictated by the conditions in the environment. Thank you.

我認為一個很好的例子就是之前關於住房的問題，是否有必要繼續朝著正確的方向前進？不，絕對會加快我們的步伐。所以我認為有很多這樣的例子，其中節奏將由環境條件決定。謝謝。

You bet. Thanks, SAM.

當然。謝謝，SAM。

There are no further questions at this time. I will now turn the call over to [Joe Margoki], CEO for closing remarks.

目前沒有其他問題。現在我將把電話轉給執行長 [Joe Margoki] 做結束語。

Thank you. Thank you everyone for your time and interest in extra space storage. I was surprised by the reaction to our release and want to make sure that, I emphasize the strength of the company. We have a very high occupancy. We have turned to positive year over year revenue growth.

謝謝。感謝大家對額外空間儲存所付出的時間和興趣。我對我們發布的反應感到驚訝，並想確保強調公司的實力。我們的入住率非常高。我們的收入已實現同比增長。

Our insular businesses are growing at a very fast pace. We have a platform that is poised and able to take advantage of any opportunity that goes forward. We've maintained our guidance and we're looking forward to the rest of the year in 2026 for better things to come. Thank you again for your time.

我們的島嶼業務正在以非常快的速度成長。我們擁有一個隨時準備好並能夠利用任何未來機會的平台。我們一直保持著我們的指導方針，並期待 2026 年剩餘時間會有更好的發展。再次感謝您抽出時間。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，並請您斷開線路。