Q3 2020 National Storage Affiliates Trust Earnings Call

Greetings and welcome to the National storage affiliates third quarter 2020 earnings analyst call.

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I will now turn the conference over to our host.

George Hoagland, Vice President Investor Relations. Thank you you may begin.

We'd like to thank you for joining us today for the third quarter 2020 earnings conference call National storage affiliates Trust.

Now that the presidential campaign is over we'd like to remind you that self storage is available to save those I didn't hear a science, but another run in four years and if Donald junior ever pursues a campaign post Trump signed some t. shirts, maybe work storing away too.

In addition to the press release distributed yesterday, we filed an 8-K, what that C. C containing our supplemental package with additional detail on our results, which may be found in the Investor Relations section on our website at national storage affiliates dotcom.

Today's call management's prepared remarks and answers to your questions may contain forward looking statements that are subject to risks and uncertainties, including the uncertainty related to the scope severity and duration of the COVID-19 pandemic and the actions taken to contain or mitigate the direct and indirect economic impact.

The company cautions that actual results may differ materially from those projected in any forward looking statement.

For additional details concerning our forward looking statements. Please refer to our public filings with the FCC.

We also encourage listeners to review the definitions and reconciliations of non-GAAP financial measures such as FFO core FFO and net operating income contained in the supplemental information package available on the Investor Relations section on our website and in our SEC filings.

On the line with me here today are and assays CEO Jamere Fisher COO, Dave Kramer and CFO Brandon to Gosh you follow.

Following prepared remarks management will accept questions from registered financial analyst I will now turn the call over to Tammy.

Thanks, George and thank you everyone for joining our call today I'll begin by acknowledging our pros and our many team members who worked so diligently to deliver our strong third quarter results provide us and to provide a solid momentum for continued improvement in the fourth quarter and into 2021.

A quick rebound just slightly positive same store NOI. After just one quarter of negative growth attests to the resilience of the self storage sector as well as the strength of both our portfolio and our pro structure.

We are benefiting from increased customer demand for storage.

And by a handful of factors, which include the timing of our peak leasing leasing season shifted to later in the year given the pandemic related restrictions on movement earlier in the year.

And increased customer demand as a result of endemic and recession related needs.

During work from home, which is causing people to clear out a room for a home office and spending more time on household projects in general right.

Learning is likely driving the need to clear space for home classroom.

Our idea circumstances, including financial hardship are causing people to double up or move back to a parents' home, placing their furniture and other items into storage.

We're also seeing certain businesses store inventory of furniture as they create extra open space for social distancing purposes.

And finally, a migration shift to suburban secondary and tertiary markets. It has benefited our portfolio, which is heavily weighted in those markets.

This increased demand accelerated over the course of the third quarter throughout October and continues into November our core AFFO per share increased 10% in the third quarter compared to the third quarter last year.

This growth is primarily driven by a combination our ongoing.

Robust acquisition volume, which is consistently accretive to AFFO per share in the internalization of our secure care approach in April with 2020.

Our outstanding performance, despite the pandemic and related economic turbulence gave us the confidence to increase our third quarter dividend to 34 cents a share representing growth of 6.3% year over year and as you saw in our release, we also reinstated full year 2020 guidance, which.

Brendan will address in more detail, but I'd point out that the top end of our guidance on where oh per share of $1.68 is the same as the top end of the range and our recalled that guy.

The midpoint of our reinstated 2020 core FFO per share guidance is above analyst consensus and represents 8% growth over 2019.

In the context of a pandemic and recession. This serves to remind investors and analysts fundamental strength of the self storage sector and the benefits of both our differentiated pro structure and our exposure to secondary and tertiary markets.

On the supply front we're.

We're seeing completion trending down on a year over year basis, well an increase in abandoned project is reducing the forward pipeline.

Dirty forecast the total deliveries will steadily decline through 2024.

However, we think will continue to be headwinds from new supply in Portland, Phoenix, certain submarkets in Dallas and West Florida.

Fortunately, though the current boost in demand is alleviating some of that pressure, especially in Portland.

On the acquisitions front transitional activity is strong and we currently have a solid pipeline of about $300 million of properties under contract or L y.

We expect to close nearly half a year end and it's also worth noting that these pending acquisitions will put us somewhere near the middle of rigid.

Original pretty cold that acquisition guidance.

During the third quarter, we acquired four wholly owned properties for a total investment of $24 million in subsequent to quarter end, we acquired two additional stores valued at $9 billion.

Three of these assets were from our captive pipeline, which remains a strong source of acquisition up to an opportunities for the future.

We are extremely well positioned to take advantage of additional acquisition opportunity with full capacity on our revolver. Following our private placement of $160 million, depending proceeds from our forward equity offering and oki equity that serves as attractive acquisition currency.

We're encouraged by our third quarter results and the momentum we saw early in the fourth quarter.

Things have clearly moved in the right direction, which gives us the confidence to reinstate our guidance for full year 2020, and also gives us optimism heading into 2021.

I'll now turn the call over to Brendan to discuss operating results and balance sheet activity.

Thank you Tammy yes.

Yesterday afternoon, we reported core FFO per share or 44 cents trip.

This represents an increase of 10% over the prior year period.

Tammy mentioned this growth was fueled by a combination of strong acquisition volume over the past year and accretion from the internalization of secure.

For the third quarter same store NOI increased 0.2% over prior year driven.

Driven by flat same store revenues and a 0.4% decline in property operating expenses.

Same store occupancy averaged 91.1% during the third quarter.

An increase of 100 basis points compared to the same period in 2019.

This occupancy improvement was offset by an average rental revenue per occupied square foot decreased 1.4% year over year.

One new wants to point out is that the rental revenue per square foot metric includes auction admin and late fees, which accounted for approximately 90 basis points of that decline with the remainder attributable to rental rate declines.

Similar to last quarter same store opex growth benefited from diligent cost control measures across the board.

Specifically personnel costs declined 2.7% as we optimize staffing hours early in the quarter.

Those expenses starting to normalize towards the end of the quarter.

Utilities declined 4%.

Partially attributable to the benefits from our led lighting initiative.

And repairs and maintenance costs decreased 2.4%.

These favorable expense controls were partially offset by property taxes grew 2.2% from the prior year period.

Next let me give some color on the positive trends continued in October.

Move in volume continued to be higher year over year on move outs continues to be lower which drove same store occupancy at the end of October and 92.4%, which.

Which is up 420 basis points compared to the end of October 2019.

And up 50 basis points sequentially from the end of September.

This is an all time high level of occupancy for our same store portfolio.

As for Street rates.

They turned positive in October just under a percent year over year versus down about 3% in Q3.

Our customer acquisition strategies are clearly proving effective capturing demand, while we remain disciplined on starting rate and discount.

Now lets Tami noted with only one quarter of the year remaining we've reinstated for your 2020 guidance, which includes positive growth for both revenue and in Hawaii, and our same store pool.

For full year 2020, we expect the following.

Fourth AFFO per share of $1.66 to $1.68 or.

Were 8.4% growth over prior year at the midpoint.

Same store revenue growth, 0.75% to 1.25%.

Opex growth of 1.5% to 2%.

And why growth was 0.25% to 1%.

And wholly owned acquisitions of $400 million to $500 million.

Additional guidance assumptions are outlined in our earnings release.

I like to highlight that we have a challenging year over year expense comp in the fourth quarter, primarily due to favorable property tax adjustments last year, which will mute same store NOI growth for the quarter, but.

But importantly, mid point of our revenue range implies growth of over 2% for the fourth quarter.

These positive expectations should set us up well for continued strong performance in 2021, assuming the current fundamental recovery is not derailed by a resurgence of cobot infections or material impacts on our business from the economic recession.

Now turning to the balance sheet.

In September we entered into an equity forward sale agreement to issue 4.9 million common shares for proceeds of approximately $160 million.

We have six months from the time of the agreement to settle the forward and we plan to use proceeds primarily to fund acquisitions.

Further evidencing our access to multiple sources of capital during the third quarter, we issued 182000 shares of common stock through our ATM program.

At an average price of $34.36 per share for gross proceeds of $6.3 million.

We also issued $3.4 million of Opie NSP units in connection with our acquisition activity.

Subsequent to quarter end, we funded our previously announced $250 million private placement, which extends our weighted average maturity to six years lowers our average fixed rate borrowing cost and replenishes the capacity on our $500 million revolver.

Our balance sheet is well positioned with only $4 million of debt maturing through 2022 healthy.

Healthy access to multiple sources of capital and a net debt to EBITDA ratio of 6.0 times at the end of the third quarter down from 6.3 times at the end of the second quarter.

The strength and flexibility of our balance sheet positions us well to take advantage of the pick up in acquisition activity we're seeing.

We remain committed to delivering our investors stable cash flow from an outstanding property type combined with disciplined external growth through accretive acquisitions.

Thanks again for joining our call today, let's now turn it back to the operator to take your questions operator.

Thank you.

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Our first question comes from Neil Malkin with capital One Securities. Please state your question.

Hey, everyone. Good morning.

Sure George first stop you know with your comment about the storage study, maybe you should check to see if there is any missing mail in ballots in there.

[laughter] somebody asked focus.

Are you bought that creating some big [laughter] yeah.

I hear you. So first one you mentioned I think Brandon that it's about 2% implied a growth for the fourth quarter I'm. Just wondering if you could maybe elaborate.

Elaborate a little bit about what the assumptions are I'm assuming you.

Occupancy higher year over year will help and and I imagine you know is it.

The renewals being in full force accelerating street rate growth any of those things that you could walk through that'd be great.

Yeah, Neal I mean, you you you pretty well captured at all there, but all I will try to add some color I mean, the cadence of revenue growth. As we went through Q3 was such that we were negative to start the quarter and then positive to give you that flat growth and so we have very solid trajectory going into Q4.

I spoke about the occupancy.

At the end of the month for October which is an all time high it's certainly the peak for.

2020, and you know we're typically.

Declining and our occupancy sequentially.

At this point in the game. So so it's really you know those things, which I think you summarized but but im just reinforcing here that we're seeing a.

Street rates as I mentioned, you know it turned slightly positive in October. So that's that's in lock step with the velocity of leasing and right now we're just not seeing any signs of abating.

So we're very very optimistic about about Q4 and heading into 21, they have anything to add so I would agree I think what you touched on is important and we're happy with rental velocities. The move outs are remaining muted as well. So we think thats a positive sign.

The team is very focused on what we can do with in place rate changes and looking to street rates.

And Neil I guess, the one other thing I'd say is that we talked last quarter about the various ways that weve been restricted.

But by and large across our portfolio were there's there's very very few geography is where we're we're restricted on things you still have some price gouging and rate restrictions or caps predominantly in California. So we're dealing with that the state of Oregon for the entirety of Q3, we still had restrictions on the ability to charge.

Late fees and run our auction process, but starting in Q4 some of those activities can resume and so that that also plays into.

The color commentary on October and going forward.

Gotcha alright. Thanks.

And then another question I had is just based on your credit card info about.

About the people who are moving and they think point to maybe accelerating in migration from some of those higher price coastal cities now that working from home is very widely accepted.

Any any commentary or any anything you've discerned I'm looking that that I'm just to maybe see the trends are or where how or where people are moving that'd be that'd be great.

You know, we certainly you've heard the stories anecdotally, we we've seen some of this materialize there is nothing really.

Substantial in our credit card material. It says we're seeing a tremendous amount now, but you look at Florida, Phoenix, Nevada. Those places, we've certainly seen some uptick from that inward migration into those states.

But nothing Thats in my opinion really tipped the scales through the credit card now that we're studying.

Again, all the storylines exist like can be put in her prepared.

Prepared comments I mean, it's.

All all of the factors that are going on with you know the pandemic in some of the things that we've seen.

Okay. I appreciate that last one from me sounds good about the alkali acquisition that and the portfolio or I'm, sorry that you have queued up maybe can you talk about the pricing and then the composition of that in terms of you know portfolios one offs.

Pricing all those things thanks.

Sure Hi, Neal this is tammy yeah. So so we have about $300 million of deals in the pipeline I either under contract or under Ella line moving forward contract, we saw a little bit of a flurry of activity. We thought it might have to do with a potential changes in tax law.

But the activity continues so so we're encouraged by that.

For us, it's mostly a one off deal a there are a couple of smaller portfolios.

I think we do have an opportunity to look at any portfolio that hits the market but.

Pricing is right.

Right around the six six cap range I'd say.

Some for portfolios, it's a little bit lower than that and and one offs, especially when assets come out of the captive pipeline a little bit higher than that.

So that's kind of the long and short of it.

Thanks.

Thanks Neil.

Our next question comes from Smedes Rose with Citi. Please state your question.

Hi, Thanks.

I just wanted to ask you a little more about the percentage change as you saw in the quarter and move in and move outs and did you see it sounds like you did see maybe a slowdown in and move out activity and do you think about that sort of normalizing as we get back to more normal world or you know how how should you.

How should we think about maybe.

Maybe occupancy going forward.

It's a great question and I do agree with move out activity is moving a little bit more towards normal as we saw coming out of the third quarter. You know thus far you know October a little more it's still muted, but it's starting to move more towards normal on the encouraging thing is rental velocity has stayed very high and so you know.

I think that's a it's a nice trend I think the rental wants it will stay high but I do agree it move outs will move a little bit more towards normal as we as we go through the end of this fourth quarter and into next year.

Okay, and then you put in the guidance for this year, so or will you now be reinstituting guidance you going forward.

I don't have any reason to think that we wouldn't I mean, that's something that we have done since our IPO.

Based on everything we know right now Smedes I would fully expect that we'll we'll put guidance out for 2021 out with our yearend earnings release in February.

Okay Fine and then.

Tell me I just wanted to ask you to I don't know what how much you can say, but it seems like this simply self storage portfolio that recently traded would've been a nice complement to assets that you had purchased earlier, what's the scope of that deal just kind of too large for the company to contemplate or was it just a.

Matter of pricing or I don't know what you can maybe just kind of I'd be interested to hear your thoughts on that.

No not at all I mean, I I think it's safe to say that we have an opportunity to look at any portfolio that that hit the market and I certainly that that was it looks like a great portfolio.

Yes, the pricing it looked to me was quite aggressive and I you know for us, it's a matter of remaining disciplined and and acquiring assets and portfolios, they're accretive over the long term for our shareholders.

Do you see institutional capital coming in when you're looking at smaller deals or is it mostly in these kind of larger portfolio type transactions, just sort of thinking about you know people who are coming to the table as you're trying to get acquisitions done.

We're seeing more institutional capital really transaction the transaction I think that our pro structure gives us some opportunities to see deals that others me or you know probably don't see that gives us an advantage in the acquisitions market and to a certain extent some of the markets that that where we've been focused over the years.

Ours are not as appealing to the institutional capital, but its definitely competitive there's no question about it.

Okay. Okay. Thank you appreciate it.

Thank you.

Our next question comes from Juan Sanabria with BMO capital markets. Please state your question.

Hi.

Thanks for the time, just just curious from your acquisition funding, how you're thinking about.

Funding that give any of your balance sheet today is.

And your willingness to kind of use equity at this point and door lever up to two affects your interest transaction.

Hey, Juan it's Brandon. Thanks for the question. So you know weve positioned ourselves throughout this year to be ready for for exactly what we're seeing this this fourth quarter and going into 21 with the pick up an acquisition volume we did as I mentioned in the opening remarks, you know get funding on our private placement transaction, which takes down the river.

Of our balance to completely undrawn today so.

So we have $500 million on the revolver, we have $160 million equity deal yet to fund and we have through March to to take that down so.

Putting it in relation to the $300 million of acquisition activity Tami spoke about you know that that will be equity funded by about half and then we'll certainly use that revolver and then going into 21 it'll be the same strategy that we've stated we run a net debt to EBITDA range of 5.5 to six and half times, we've been less than that through this year.

And expect the same going forward.

Great. Thanks, and then just a question on the deals you have sourced and.

Well those to the pro structure Cadthree hundred million that you referenced.

It's a combination of assets coming out of the captive pipeline assets that were identified in sourced by our pros and assets that are underwritten by our corporate acquisitions seem so it's and it's relatively.

Relatively evenly across the board except to the extent you're looking at portfolios that obviously from a volume standpoint start to take up less space.

And then just finally, just on the up front.

Pumps to existing customers.

With the occupancy being at all time high levels are you more likely to push kind of a boundary there and see if you could become more aggressive maybe kicking people up to street or even maybe higher kinda quicker.

Just your thoughts on that would be appreciated.

That's a good question. We are we're evaluating all those those scenarios. We have some test programs that are been pretty aggressive we certainly feel like it's a good opportunity for us to maximize as much as we can now we did a good job coming out of the no increases in the second quarter, we used the third quarter to really work hard at trying to get caught up and thats carrying a little.

Going into the fourth quarter.

Yes, I think we're looking at all those all those pieces and we're pushing where we can.

Thank you.

Our next question comes from Todd Thomas with Keybanc capital markets. Please state your question.

Hi, Thanks. Good afternoon, just first following back up on a investments.

You know I'm just curious in terms of the you know funding those acquisitions.

The forward equity to be.

Used sort of dollar for dollar.

With the first 150 million or so that you expect to close before the end of the year is that how we should think about funding those are or will you look to settle those.

Sort of on the evenly over the next several months.

Yes, Todd this is Brandon if I would think about it more like a 50% matching also the shift kind of nicely with the 300 million that Tammy mentioned on the 160.

I will tell you that with this volume that we're seeing there is theres definitely sellers.

That are motivated to close in 2020.

Largely due to the potential tax law changes and so we're working to to accommodate that provided obviously, we should get through our normal diligence process. So some of the expected funding of that forward will depend on how successful we are in closing.

Some of that and you know by the end of December versus something that could creep into January.

Okay, and then it sounds like you're still seeing stabilized deal pricing in the 6% range, which is which is about where where you've been buying you know for some time now it.

It seems that you know are you starting to see some cap rate compression at all on single assets and what do you think that the premium is for a portfolio today, what's the difference in pricing look like.

So I think the pricing, we're definitely seeing some cap rate compression. There. There's no question about that and but I would say that it's very market specific I and so I <unk> in that.

Bigger markets the more dense markets that cap rates are a little bit lower and I in some of the secondary and tertiary markets were still seeing cap rates in that in the six plus range.

[noise] portfolio premiums are probably in the 75 to 125 basis point range as that that's how we're seeing it and thinking about it right now.

Okay, and then just a a question on the simply transaction I guess and they're being you know sort of a new entrant in the space.

You know and there have been many new entrants in the space over the last several years, you know quite a bit of capital coming into self storage.

But do you think that the landscape changes at all now do you think it becomes.

More competitive for for acquisitions.

For you to compete with with sort of a platform buyer and sort of Blackstone in the next year.

The Blackstone has been acquiring assets and trying to deploy capital in self storage for us.

For a couple of years now and so you know we're used to seeing them with this new platform that they've acquired they certainly maybe a more aggressive but ultimately.

Ultimately the I. I think there are buyers like the rest of US now they have the advantage of using more leverage and I and they will be aggressive we're we're.

We're not kidding ourselves, but but I think that our I honestly think that our our pro structure will continue to give us an advantage.

That combined with our focus on the secondary and tertiary markets. So we're well we'll stay focused I guess, maybe maybe next quarter will be you know, we'll be able to give you a better answer on that and see what happens over the next couple of months.

Hi, I.

I guess I don't know for sure what their strategy it will be in terms of deploying capital but.

I think they're going to try to close before the end of the year as I understood. It and so maybe the beginning of next year is when we when we started you know face off with those guys.

Alright, great. Thank you.

Thanks, Tom.

Thank you and just a reminder to everyone to ask a question press star one on your telephone keypad to remove yourself from the queue Press star two.

Our next question comes from Ronald Camden with Morgan Stanley. Please state your question.

Hey, I've two quick ones from me just staying on the acquisitions just a.

I keep beating a dead horse I guess, but maybe can you talk a little bit more about sort of the pipeline I know historically, you've only looked at you know mostly stabilized assets with with maybe a few in lease up but has.

Has that changed at all or is there sort of a 500 million 600 million dollar opportunity every year in your markets to do stabilized assets or what is that mix what could that look like sort of going forward is this environment gets a little bit more competitive.

Well, there's still a lot of assets to acquire out there that you know if there you know.

Using round numbers that there are 50000 self storage facilities in the United States and call. It 18, 20% or are controlled by the top four or five operators.

We have I think we still have a pretty good run way to acquire a assets and that four to 600 million dollar range and and and so from from our perspective, where we are focused on stabilized assets in and yes. We are seeing deals that include non stabilized.

Non stabilized assets and we're open to acquiring we've always been open to acquiring it's just not our core strategy.

And I guess the only other thing I would point out is is one differentiating factor about Ns day is our captive pipeline and and so you know if you said, we have 140 assets valued at around $1 billion overtime.

Overtime. We are now we believe we'll have an opportunity to acquire those assets so between our strategy for external growth.

With the acquisition of third party deals and through our captive pipeline I think we'll be able to hit our targets in that you know I said $4 million to $600 million range and I guess I don't want to wrap up without pointing out that we also have an opportunity to add another one to three pro and I that timing is all very unpredictable.

We're always in conversations with a handful of private operators and we do think we have room.

For a couple more operators to join the team. So I think that does allow us to differentiate ourselves in our external growth strategy.

Great. That's helpful. And then just circling back to some of your opening comments I think tried some really helpful color just them adequately about maybe what's what's driving the strength in demand that we've all seen you know whether you know small businesses or work from home more people, leaving the cities and so forth.

My question is really you know as we sort of think of next year, presumably you have a vaccine and things normalize our power how is the company thinking about which.

Which of those demand drivers are.

Sort of a one time versus which could go away and the other piece of that is what's the market maybe not thinking about that could be a potential demand driver on you know again in a more sort of normalized environment. Thanks.

That's a great question.

It as hopefully we get a vaccine and then we start to go back to what the new normal is I don't think there's any guarantees and everybody goes rushing back to work work from all may stick I'm.

Certainly you might see classrooms come back to normal you would see the restaurant owners and some of the small businesses build to the pool so their items back.

So I like the diversity in our portfolio and so we don't particularly think we have one particular market is going to go quickly rushing back or you're going to see a significant occupancy drop because of where we're at and where we're located in the country. So we do think there is some stickiness here, we think long term.

New people, who got introduced to self storage has never used it before I understand the convenience of it understand the benefit of it which we think is a long term positive.

And so as you know it's hard to know how soon it's going to come in and how quickly it's going to come but I think for US we were pretty happy with where we're positioned.

And you know you look at housing market, you look a job market and you look at you know some of its relocation has gone out of the country I think that also favors our portfolio and and in.

In the long term through next year.

Think helps us as we move forward.

Great helpful. Thank you.

Thank you.

Thank you our next question comes from.

Bin Kim with Truest. Please state your question.

[laughter].

Hi, good afternoon.

Just sticking with the whole pro commentary what are the prospects of internalizing any pros over the next year.

Yeah, Hi, Ki bin this is Tammy you know I'm back at the time of our IPO, we talked about the notion that that maybe half of our pros would be retired within 10 years, so that would put us out to call. It 2025.

This year when with the internalization of secure care our largest pro.

I think well they did what secured debt as they demonstrated how it could work and how it would play out to other process right.

Right now today I can't tell you that that we have any indication than any other pros are planning to retire.

But I will say the success of the of the secure care internalization I show, some leadership and some opportunity.

But no way of predicting when it might happen.

Yes, I would wrap up by saying I don't have any reason to think that what we thought back at the time of the IPO won't still happen maybe half of our pros.

It will be retired by 2025, but again no no clear line of sight on that today okay.

And.

In terms of the existing customer rate increase program I was wondering if you could just put it in perspective.

I know you and although there are companies have reengaged that but there's a little bit of a timing element right. When you send that out it.

I've got one quick and I mean, it doesn't turn on right away so in the third quarter.

I guess from the eligible pool of customers that should've gotten one.

How many actually got one.

And if that actually converted to cash flow.

That's a good question given as Dave I'm you know so we certainly at the time of the third quarter and it really came in the latter part of the third quarter July was really testing the waters August we ramped up in September we got going really full gone on and getting things put.

Put in place and getting [noise].

You know our rate increases to happen.

Thank you know as we look into the fourth quarter. The revenue piece of it will start to come into play more and more in the fourth quarter as it takes.

Typically 35 to 40 days.

To get the you know the rate increases to really fully implement and get and taking care of and so you know we have been aggressive we admit assertive I think what's also in front of US is in the fourth quarter, we do believe because of occupancy levels and what is the metrics. We're seeing will be continue to be pretty aggressive through the fourth quarter, which.

Typically historically hasn't been a strong strong quarter for <unk>.

Your your really big push in IP RC and so that's I guess, that's the way we look at it. We're certainly testing we're looking in that light, we think fourth quarter has still opportunities.

Okay. Thank you.

Thank you.

Thank you there are no further questions at this time I'll turn the call back to Tamara Fischer for closing remarks. Thank you.

Thank you and now that the Bell is running the party is over and I'd like to thank everyone again for your interest and then say Andrew reiterate we're pleased with our third quarter results and the fact that self storage continues to demonstrate its resilience in the face of challenging time.

We're optimistic about the fourth quarter and we're looking forward to 2021, he safe and healthy everyone Bye.

Thank you. This concludes today's conference all parties may disconnect have a good day.