Q1 2024 CubeSmart Earnings Call

Operator: Good morning, ladies and gentlemen, and welcome to the CubeSmart first quarter 2024 earnings call. At this time, all lines are in a listen-only mode.

Good morning, ladies and gentlemen, and welcome to the keeps my first quarter 'twenty 'twenty four earnings call. At this time all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session.

Operator: Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Friday, April 26, 2024. I would now like to turn the conference over to Mr. Josh Schutzer, Vice President of Finance. Please go ahead.

If at any time during this call you are quietly needed assistance. Please press star zero for the operator.

This call is being recorded on Friday April 26 2024.

I would now like to turn the conference over to Mr. Josh <unk> Vice President of Finance. Please go ahead Sir.

Joshua Schutzer: Thank you, Lara. Good morning, everyone.

Josh: Thank you or good morning, everyone welcome to <unk> first quarter 2024 earnings call.

Joshua Schutzer: Welcome to CubeSmart's first quarter 2024 earnings call. Participants on today's call include Chris Marr, President and Chief Executive Officer, and Tim Martin, Chief Financial Officer. Our prepared remarks will be followed by a Q&A.

Josh: It just depends on today's call include Chris Marr, President and Chief Executive Officer, and Tim Martin Chief Financial Officer.

Speaker Change: Our prepared remarks will be followed by a Q&A session.

Joshua Schutzer: In addition to our earnings release, which was issued yesterday evening, supplemental operating and financial data is available under the investor relations section of the company's website at www.cubesmart.com. The company's remarks will include certain forward-looking statements regarding earnings and strategy that involve risks, uncertainties, and other factors that may cause the actual results to differ materially from these forward-looking statements. The risks and factors that could cause our actual results to differ materially from forward-looking statements are provided in documents the company furnishes to, or files with, the Securities and Exchange Commission, specifically the Form 8K we filed this morning, together with our earnings release filed with the Form 8K, and the Risk Factors section of the company's annual report on Form 10K.

Josh: In addition to our earnings release, which was issued yesterday evening supplemental operating and financial data is available under the Investor Relations section of the company's website at Www Dot Cube Smart dock.

Josh: Company's remarks will include certain forward looking statements regarding earnings and strategy that involve risks uncertainties and other factors that may cause the actual results to differ materially from these forward looking statements.

Josh: The risks and factors that could cause our actual results to differ materially from forward looking statements are provided in documents the company furnishes to or files with the Securities and Exchange Commission specifically the form 8-K, we filed this morning together with our earnings release filed with the form 8-K, and the risk factors section of the company's annual report on Form 10-K.

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

Josh: In addition, the company's remarks include reference to non-GAAP measures a reconciliation between GAAP and non-GAAP measures can be found in the first quarter financial supplement posted on the company's website at Www Dot Cube Smart Docs I'll now turn the call over to Chris.

Christopher P. Marr: Thank you, Josh. Good morning, and thank you all for joining the call. As it was well into the first quarter when we shared our thoughts on our 2024 and first quarter guidance, as one would expect, our first quarter performance metrics were in line with our expectations. Rental rates to new customers followed their historic pattern, reaching their seasonal low in mid-February before beginning their gradual move up into the end of March. Our key metrics related to consumer health, those being write-offs, receivables, and units at auction, all remained in line with historic norms.

Christopher P. Marr: Thank you Josh good morning, and thank you all for joining the call.

Christopher P. Marr: As it was well into the first quarter when we shared our thoughts on our 2024 and first quarter guidance as one would expect our first quarter performance metrics were in line with our expectations.

Christopher P. Marr: Rental rates to new customers, followed their historic pattern, reaching their seasonal low in mid February before beginning their gradual move up into the end of March.

Christopher P. Marr: Our key metrics related to consumer health those being write offs receivables units at auction all remained in line with historic norms.

Christopher P. Marr: Against the backdrop of a healthy consumer and typical first-quarter seasonality and asking rates, our existing customer rate increases during the quarter were consistent in both timing and magnitude. However, demand activity during the quarter varied by market. Our more urban-oriented markets, such as the New York MSA and its Connecticut suburbs, Chicago, and Boston, experienced growth in year-over-year rentals. San Diego County also experienced positive year-over-year rental volume, no doubt continuing to benefit from the Storage West transaction. Sunbelt markets such as Atlanta and all of our major Florida markets experienced a decline in year-over-year rental rates.

Christopher P. Marr: Against the backdrop of a healthy consumer and typical first quarter seasonality and asking rates are existing customer rate increases during the quarter were consistent in both timing and magnitude.

Christopher P. Marr: Demand activity during the quarter varied by market.

Christopher P. Marr: More urban oriented markets, such as the New York, MSA, and its Connecticut suburbs, Chicago, and Boston experienced growth and year over year rentals.

Christopher P. Marr: San Diego County, also experienced positive year over year rental volumes no doubt continuing to benefit from the storage west transaction.

Christopher P. Marr: Sunbelt markets, such as Atlanta, and all of our major Florida markets experienced a decline in year over year rentals.

Christopher P. Marr: Some supply-impacted markets, such as Northern Virginia and Nashville, seem to be bottoming out from that supply impact and are beginning to show signs of stabilization. Phoenix is also showing signs of turning the corner with positive year-over-year growth in rentals and occupancy, albeit at rental rates well below 2023 levels. Meanwhile, Tucson continues to struggle to find its footing while being impacted by new supply.

Christopher P. Marr: Some supply impacted markets, such as northern Virginia, Nashville seemed to be bottoming out from that supply impact and are beginning to show signs of stabilization.

Christopher P. Marr: Phoenix is also showing signs of turning the corner with positive year over year growth in rentals and occupancy, albeit at rental rates well below 2023 levels.

Christopher P. Marr: Tucson continues to struggle.

Christopher P. Marr: To find its footing.

While being impacted by new supply.

Christopher P. Marr: New York continues to be our top-performing market with consistent positive performance metrics across the boroughs and positive and improving performance in supply-impacted Staten Island and North Jersey. Overall, trends are more constructive in our urban stores, which tend to attract a customer looking for a solution for their smaller living. As we move through April, trends thus far have our negative rate and occupancy gaps to last year narrowing from their first quarter levels. As we expected entering the year, the environment over the next three months will be highly impactful on how the entire year plays out.

Christopher P. Marr: New York continues to be our top performing market with consistent positive performance metrics across the boroughs and positive and improving performance in supply impacted Staten Island in North Jersey.

Christopher P. Marr: Overall trends are more constructive in our urban stores, which tend to attract the customer solving for their smaller living space.

Christopher P. Marr: As we moved through April.

Christopher P. Marr: Thus far have our negative rate and occupancy gap to last year narrowing from their first quarter levels.

Christopher P. Marr: As we expected entering the year the environment over the next three months will be highly impactful on how the entire year plays out.

Christopher P. Marr: The macroeconomic data over the last few months has certainly been very volatile. It seems every week we receive conflicting data, most recently an unexpected slowdown in first quarter GDP growth. Other industries, such as intermodal transportation, warehouse leasing, used car dealers, and home retailers, have expressed cautionary views on consumer demand. One factor that makes our business so resilient is that there are countless life events that create demand for self storage.

Christopher P. Marr: The macroeconomic data over the last few months has certainly been very volatile. It seems every week, we received conflicting data most recently an unexpected slowdown in first quarter GDP growth.

Christopher P. Marr: Other industries, such as intermodal transportation.

Christopher P. Marr: Warehouse leasing used car dealer its own retailers have expressed cautionary views on consumer demand.

Christopher P. Marr: One factor that makes our business. So resilient is that there are countless life events that create demand for self storage.

Christopher P. Marr: Obviously, one demand driver of the many for our industry is single-family home sales. In the last few months, the housing data has also been in. According to Realtor.com, the number of homes actively listed for sale in February was 15% higher than the same month last year. I also note that the week of April 14 is the optimal time to list your home for sale, as the third week of April brings the best combination of housing market factors for sellers. On the other hand, March home sales were disappointing, and mortgage rates have climbed above 7%.

Christopher P. Marr: Obviously, one demand driver.

Christopher P. Marr: Of the many for our industry as single family home sales.

Christopher P. Marr: Over the last few months the housing data has also been inconsistent.

Christopher P. Marr: According to a realtor dot com the number of homes actively listed for sale in February was 15% higher than the same month last year.

I also note that the week of April 14 is the optimal time to list your home for sale as the third week of April brings the best combination of housing market factors for sellers.

Christopher P. Marr: The other hand March home sales were disappointing and mortgage rates have climbed above 7%.

Christopher P. Marr: Then you have yesterday's Commerce Department report and a possible positive sign for the housing market, residential investment surged 13.9%, its largest increase since the fourth quarter of 2020. So while housing stats are certainly volatile, the consensus remains for modestly increased activity over the historical lows experienced in 2020. Another of the many demand drivers for our product is movement within multifamily housing. In the multifamily sector, headwinds from new supply are contributing to rents that are flat or slightly declining in Sunbelt markets.

Christopher P. Marr: Then you have Yesterdays Commerce Department report and a possible positive sign for the housing market residential investment surge 13, 9% its largest increase since the fourth quarter of 2020.

Christopher P. Marr: So while housing starts are certainly volatile consensus remains for modestly increased activity over the historical lows experienced in 2023.

Christopher P. Marr: Another of the many demand drivers for our product is movement within multifamily housing.

Christopher P. Marr: In the multifamily sector headwinds from new supply or contributing to rents that are flat or slightly declining in sunbelt markets. According to real page rents are down year over year in Atlanta, Nashville, Austin, Dallas, Orlando, and Fort Lauderdale, which may spur existing apartment renters to move or increased demand from first time renters.

Christopher P. Marr: According to RealPage, rents are down year-over-year in Atlanta, Nashville, Austin, Dallas, Orlando, and Fort Lauderdale, which may spur existing apartment renters to move or increase demand from first-time renters. Both are good for our industry. On the supply side of the equation, new store openings in our top markets continue their pattern of declining every year since 2019. In short, the period between now and the end of July will be both illuminating and impactful on our expectations for full year 2024 performance.

Christopher P. Marr: Both are good for our industry.

Christopher P. Marr: On the supply side of the equation new store openings in our top markets continue their pattern of declining every year since their 2019 peak.

Christopher P. Marr: In short the period between now and the end of July will be both illuminating and impactful on our expectations for full year 2020 for performance.

Christopher P. Marr: We remain confident in the long term fundamental drivers of our business continuing to generate solid growth.

You for listening and I will now turn it over to Tim Martin, Our Chief Financial Officer for his insights into our first quarter Tim.

Thanks, Chris Good morning, everyone. Thanks for taking a few minutes out of your data spending with US first quarter results were right down the middle of what we were expecting for the quarter.

Christopher P. Marr: We remain confident in the long-term fundamental drivers of our business, continuing to generate solid growth. Thank you for listening. And I will now turn it over to Tim Martin, our Chief Financial Officer, for his insights into our first quarter.

Timothy M. Martin: Same store revenues were flat compared to last year with average occupancy for our same store portfolio down about 130 basis points to 94%.

Timothy M. Martin: Same store operating expenses grew 5% over last year, driven by continued pressure on property insurance as well as a good bit more snow removal cost. This year when you compare that to last year.

Timothy M. Martin: Thanks, Chris. Good morning, everyone. Thanks for taking a few minutes out of your day to spend it with us.

Timothy M. Martin: First quarter results were right down the middle of what we were expecting for the quarter. Same store revenues were flat compared to last year, with average occupancy for our same store portfolio down about 130 basis points to 90.4%. Same store operating expenses grew 5% over last year, driven by continued pressure on property insurance, as well as a good bit more snow removal costs this year when you compare that to last year.

Timothy M. Martin: Offsetting those were lower marketing expenses relative to last year, but as we've discussed in past quarters. That's a line item that will bounce around a little bit depending on what opportunities, we're seeing in the market to be efficient and to maximize our return on that spend.

Timothy M. Martin: Flat revenue growth combined with 5% expense growth yielded a negative one 9% same store NOI growth for the quarter and we reported <unk> per share at the midpoint of our range at 64 cents for the quarter.

On the external growth front, we closed on the previously announced acquisition of a two store portfolio in Connecticut for $22 million.

Timothy M. Martin: Offsetting those were lower marketing expenses relative to last year, but as we've discussed in past quarters, that's a line item that will bounce around a little bit depending on what opportunities we're seeing in the market to be efficient and to maximize our return on that spend. Flat revenue growth combined with 5% expense growth yielded negative 1.9% same-store NOI growth for the quarter, and we reported FFO per share at the midpoint of our range at $0.64 for the quarter.

Timothy M. Martin: We continued our disciplined approach to finding external growth opportunities that make sense for us on balance sheet.

Timothy M. Martin: On the third party management front, we had a record first quarter, adding 68 stores to our platform that has the most third party stores added in a quarter since our debut in the third party management business 14 years ago.

Timothy M. Martin: As a result, our third party platform grew to 860 stores under management at quarter end.

Timothy M. Martin: Balance sheet remains in excellent shape nothing to do there in the short to medium term other than to continue to look for growth opportunities to utilize the liquidity and leverage capacity, we've created over the last several years.

Timothy M. Martin: On the external growth front, we closed on the previously announced acquisition of a two-store portfolio in Connecticut for $20.2 million. We continued our disciplined approach to finding external growth opportunities that make sense for us on the balance sheet. On the third party management front, we had a record first quarter, adding 68 stores to our platform. That's the most third-party stores added in a quarter since our debut in the third party management business 14 years ago.

Timothy M. Martin: Details of our 2024 earnings guidance and related assumptions were included in our release last night, our forward guidance for the year remains consistent with the guidance we provided in late February.

Timothy M. Martin: Thanks again for joining us on the call. This morning at this time Lara why don't we open up the call for some questions.

Lara: Thank you, Sir ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by the number one on your Touchtone filing you'll hear a prompt that you hadn't had been waste should you wish to decline from the polling process. Please press star followed by the number killed.

Timothy M. Martin: As a result, our third-party platform grew to 860 stores under management at quarter end, and our balance sheet remains in excellent shape; there is nothing to do there in the short to medium term other than to continue to look for growth opportunities to utilize the liquidity and leverage capacity we've created over the last several. Details of our 2024 earnings guidance and related assumptions were included in our release last night. Our forward guidance for the year remains consistent with the guidance we provided in late February. Thanks again for joining us on the call this morning. At this time, Lara, why don't we open up the call for some?

Lara: Using a speaker phone please lift your handset before pressing any key.

Lara: Our first question comes from the line of Spencer Alloway from Green Street. Please go ahead.

Spencer Alloway: Yeah. Thank you.

Spencer Alloway: Just wondering if you could provide some color on how moving rents are trending thus far into the second quarter and just any color you can share just if there's any trends geographically.

Spencer Alloway: Just any color on move in rents that will be great. Thank you.

Spencer Alloway: Sure Spencer. Thanks, So new customer rates in April are down 11% from last April and improvement from the 13% at the end of Q1 and they were at 14% negative in Q4, So we're seeing now.

Spencer Alloway: Combination of what occurred last year, and obviously, a little bit of improvement this year in.

Operator: Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touchstone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number 2. If you are using a speakerphone, please lift your hands up before pressing any button. Our first question comes from the line of Spenser Allaway from Green Street. Please go ahead. Yeah, thank you.

Spencer Alloway: In that negative gap.

Spencer Alloway: New customer rates.

Speaker Change: Okay, great. Thank you and then.

Speaker Change: Are you able to provide them a share of the initial cap rate on the two assets that were acquired in the quarter.

Speaker Change: Yes, theyre stabilized assets that we know well.

Speaker Change: Low sixes.

Speaker Change: Okay. Thank you so much.

Speaker Change: Thanks.

Our next question comes from the line of Michael Goldsmith from UBS. Please go ahead.

Michael Goldsmith: Good morning, Thanks, a lot, particularly my question. My first question just on demand and how that trended through the quarter.

Spenser Bowes Allaway: I was just wondering if you could provide some color on how...

Michael Goldsmith: I think when you reported fourth quarter and provided guidance you had good visibility into let's say like solid trends how did the rest of March play out and what have you seen on the demand side.

Christopher P. Marr: Sure, Spenser, thanks. So, new customer rates in April are down 11% from last April, an improvement from the 13% at the end of Q1, and they were at 14% negative in Q4. So we're seeing a combination of what occurred last year and, obviously, a little bit of improvement this year in that negative gap on new customers. Great, thank you. And then.

Michael Goldsmith: During April.

Speaker Change: Yes, Michael as I as I said, it's market by market as it went through the quarter. We saw consistently strong demand in those more urban oriented market. So.

Speaker Change: Both quarter over quarter are continuing into April on the positive side in the New York MSA in Connecticut suburb of Chicago, Boston, San Diego County.

Phoenix and then the the markets that.

Christopher P. Marr: Yeah, they're stabilized assets that we know well, and it's in the low six.

Speaker Change: You are having a little bit more challenge on the demand side, primarily all of the major Florida markets Atlanta.

Operator: Our next question comes from the line of Michael Goldsmith from UBS. Please go ahead.

Speaker Change: And then some of the smaller sunbelt market. So again, if you will if you think about it the markets that had.

Michael Goldsmith: Good morning. Thanks a lot for taking my question. My first question is just on demand and how that trended through the quarter. You know, I think, when you reported the fourth quarter and provided guidance, you had good visibility into what seemed like solid trends. How did the rest of March play out? And what have you seen on the demand side during

Speaker Change: The largest uplift through COVID-19 or now the ones that are.

Speaker Change: Closer towards the bottom of that chart and those markets that were more lower beta during COVID-19 are at the top of that.

Speaker Change: Thanks for that Chris and my follow up is just on the guidance.

Speaker Change: First quarter came in in line with expectations.

Speaker Change: Given what you see now is that given what you've seen kind of since you last guided how how has that environment changed your outlook for the year. I mean, you didn't you didn't move it but.

Christopher P. Marr: Yeah, Michael, as I said, it's, it's market by market, as it went through the quarter, we saw consistently strong demand in those more urban oriented markets. So growth quarter over quarter continuing into April on the positive side in the New York MSA and Connecticut suburbs, Chicago, Boston, San Diego County, Phoenix, and then the markets that you're having a little bit more challenges on the demand side, primarily all the major Florida markets, Atlanta, and then some of the smaller Sunbelt markets.

Speaker Change: Sure.

Speaker Change: As you think about the moving pieces of it is has anything changed on how you expect the rest of the year to play out or is it just still too early given the kind of the.

Speaker Change: The week to week nature of the business recently and.

Speaker Change: Which doesn't provide you the level of insight you need to really update.

Speaker Change: Update your expectations.

Yes, Michael the latter part of your question is exactly where we are.

Speaker Change: We provided that guidance with a range of expectations six weeks ago and nothing's happened in the last six weeks.

Christopher P. Marr: So again, if you think about it, the markets that had the largest uplift through COVID are now the ones that are closer to the bottom of that chart, and those markets that were more low beta during COVID are at the top.

Speaker Change: That would cause us to change that view as we sit here.

Speaker Change: Bill in April we have the whole summer rental season ahead of us as Chris mentioned and you alluded to.

Michael Goldsmith: Thanks for that, Chris, and my follow-up question is just on the guidance. You know, the first quarter came in in line with expectations. Just given what you've seen now, given what you've seen kind of since your last guided tour, you know, how has that environment changed your outlook for the year? I mean, you didn't you didn't move it, but you know, as you think about the moving pieces of it, has anything changed on how you expect the rest of the year to play out?

Speaker Change: And so we still have that range of expectations that.

Speaker Change: We introduced six weeks ago.

Speaker Change: Thank you very much.

Speaker Change: Thanks.

Our next question comes from the line of Samir Khanal from Evercore ISI. Please go ahead.

Samir Upadhyay Khanal: Hey, Chris maybe on guidance again.

Samir Upadhyay Khanal: I know in the last call you spoke about the high end.

Samir Upadhyay Khanal: You mean assume some sort of improvement in the housing market I guess, given what rates have done.

Michael Goldsmith: Or is it just still too early, given the kind of week to week nature of the business recently and which doesn't provide you with the level of insight you need to really update your expectations? Yeah, Michael, the latter part.

Samir Upadhyay Khanal: I mean, how do you think about the high end today and my question is if the housing market does not improve.

Samir Upadhyay Khanal: You feel that there is enough in that sort of ECR I push to make up for that difference. Thanks.

Samir Upadhyay Khanal: So as I mentioned in my in my in my earlier preface remarks. The housing market is one driver I mean, the beauty of our business and why we're so resilient is that everyday life events are what creates a demand for storage and so those everyday life events.

Timothy M. Martin: Yeah, Michael, the latter part of your question is exactly where we are. You know, we provided that guidance with a range of expectations six weeks ago. And nothing's happened in the last six weeks that would, you know, that would cause us to change that view as we sit here. Still in April, we have the whole summer rental season ahead of us, as Chris mentioned and you alluded to. And so, you know, we still have that range of expectations that we introduced six weeks ago.

Samir Upadhyay Khanal: And certainly movement within multifamily continue to exist. So our focus is on.

Attacking what we can control, which is making sure we're efficient.

Capturing the customers, who have identified a need for self storage and converting them to.

Samir Upadhyay Khanal: To become a cube smart customer. So again the housing market is one of those factors our range of expectations, certainly implies varying degrees of demand across the spectrum.

Operator: Our next question comes from the line of Samir Khanal from Evercore ISI; please go ahead.

Samir Upadhyay Khanal: Hey Chris, maybe on guidance again, you know in the last call you spoke about the high end. I mean, how do you think about the high end today? And my question is, if the housing market does not improve, do you feel that there's enough in that sort of ECRI push to make up for that difference?

Samir Upadhyay Khanal: At both ends and as we sit here again at the very very early stages of the busy season, we still see those bookends of our expectations as where we think the likely outcome for the year will be.

Christopher P. Marr: Thanks.

Christopher P. Marr: As I mentioned in my earlier preface remarks, the housing market is one driver, and the beauty of our business and why we're so resilient is that everyday life events are what creates a demand for storage. And so those everyday life events and certainly movement within multifamily continue to exist.

Samir Upadhyay Khanal: Again, as I mentioned in the facts as I.

Samir Upadhyay Khanal: I understand them.

Samir Upadhyay Khanal: Third week of April as your peak listing for existing home sales. If you think about that how cells quickly you're closing late may it sits on the market for a couple of weeks you're well into June.

Christopher P. Marr: So, our focus is on attacking what we can control, which is making sure we're efficient in capturing the customers who have identified a need for self-storage and converting them to become a CubeSmart customers. So, again, the housing market is one of those factors. Our range of expectations, you know, certainly implies varying degrees of demand across the spectrum at both ends. And as we sit here, again, at the very, very early stages of the busy season, we still see those, you know, bookends of our expectations as where we think the likely outcome for the year will be.

Samir Upadhyay Khanal: And that's when we would expect to see the busy season for US May June July and obviously as Tim said, that's going to be very impactful on how we see the whole year play out.

Speaker Change: Okay got it and I guess my second question, Tim is on the advertising expense I mean that was down roughly about 15%.

This was a little bit surprising to me given that demand is still remains challenged here I guess, maybe talk around that strategy. Thanks.

Speaker Change: Yes, sorry, I'll I'll jump in for Tim There when you think about the evolution of our investments over the last couple of years and continuing as we go forward into refining.

Christopher P. Marr: You know, again, as I mentioned, the facts as I understand them, the third week of April is your peak listing for existing home sales. If you think about that house sales quickly, you're closing in late May. It sits on the market for a couple weeks. You're well into June. And that's when we would expect to see, you know, the busy season for us, May, June, July. And obviously, as Tim said, that's going to be very impactful on how we see the whole year play out.

Speaker Change: The technology and the customer data platform that we have.

Speaker Change: CDP is increasing and increasing efficiency of aid for new customer acquisition, and we're beginning to see the fruits of that so we're we're able to avoid wasted advertising on those obvious suppression segments exclude those customers for whom again there within.

Christopher P. Marr: Okay, got it. And I guess my second question, Tim, is on advertising expense. I mean, that was down roughly by 15%. You know, that was a little bit surprising to me, given that demand still remains challenging. I guess, you know, maybe we can talk about that strategy. Thanks.

Speaker Change: A set amount of time of rental we're able to be more targeted through automated personalization using AI using machine learning to make sure that we can try and segment and identify that customer on the front end and target.

Speaker Change: The response to their inquiry that has the highest potential conversion rate and we're seeing the benefits of that in.

Christopher P. Marr: Yeah, sorry, I'll jump in for Tim there. You know, when you think about the evolution of our investments over the last couple of years and continuing as we go forward into refining the technology and the customer data platform that we have, you know, that CDP is increasing, increasing efficiency of aid for new customer acquisition, and we're beginning to see the fruits of that. So we're, you know, we're able to avoid wasted advertising on those obvious suppression segments, exclude those customers for whom, again, they're there within a set amount of time of rental. We're able to be more targeted through automated personalization, using AI, using machine learning to make sure that we can try and segment and identify that customer on the front end and target the response to their inquiry that has the highest potential conversion rate.

Speaker Change: And the ROI that we're achieving on marketing now all that being said I would not it does not mean to imply that over the course of the year that our marketing spend will not grow from the levels that we had in 2023, but it absolutely is reflective of all of the investment we've made in our CVP and other things over the last couple of years Star.

Going to bear fruit.

Speaker Change: Okay.

Speaker Change: That's it for me Thanks, Chris.

Speaker Change: Our next question comes from the line of Todd Thomas from Keybanc Capital markets. Please go ahead.

Todd Michael Thomas: Hi, Thanks, Good morning, Chris I, just wanted to follow up first on move in rents I appreciate the detail early on here.

Todd Michael Thomas: In the call that you provided.

Todd Michael Thomas: I think you mentioned that the move out to move in spread narrowed through April.

Todd Michael Thomas: You just quantify that what.

Todd Michael Thomas: Where that is today, what the change look like.

Todd Michael Thomas: Sort of throughout the quarter and into April and where that stands today.

Speaker Change: Yes, Todd just to just to be clear what I, what I had talked about was just the new customer rates, so that new customer move in on a quarter over quarter basis was down about 14% in Q4, and then 13 in Q1 11 in April in terms of just that delta between the customer moving out.

Christopher P. Marr: And we're seeing the benefits of that in the ROI that we're achieving on marketing. Now, all that being said, I would not, it does not mean to imply that, over the course of the year, our marketing spend will not grow from the levels that we had in 2023. But it absolutely is reflective of all of the investment we've made in our CDP and other things over the last couple of years starting to bear fruit.

Speaker Change: And the customer moving in that continues to be around 33%, 34% and that has not really moved all that much sense.

Samir Upadhyay Khanal: That's it for me. Thanks, Chris.

Speaker Change: What we reported last quarter as we get into the more seasonal timeframe here, where obviously our rates to new customers are moving up then we do expect that gap to narrow as we move through the busy season.

Operator: Our next question comes from the line of Todd Thomas from KeyBank Capital Markets. Please go ahead.

Todd Michael Thomas: Hi, thanks. Good morning.

Christopher P. Marr: Chris, I just wanted to follow up first on move-in rents. I appreciate the detail early on in the call that you provided. You know, I think you mentioned that the move-out to move-in spread narrowed through April. Can you just quantify that, where that is today, what the change looked like sort of throughout the quarter and into April, and where that stands today?

Speaker Change: Yes.

Speaker Change: Okay got it and then.

Speaker Change: Then the.

Speaker Change: The occupancy build.

Speaker Change: Yes.

Speaker Change: During the period it appears as though it was a little bit below average when compared to prior years, just moving from that.

Speaker Change: Quarter average to the quarter end can you speak to where occupancy is today and and also vacate activity was a little bit higher year over year are you seeing any change at all and in terms of move outs.

Christopher P. Marr: Yeah, Todd, just to be clear, what I had talked about was just the new customer rate. So that new customer move-in on a quarter-over-quarter basis was down about 14% in Q4 and then 13% in Q1, and 11% in April. In terms of just that delta between the customer moving out and the customer moving in, that continues to be around 33%, 34%, and that has not really moved all that much since what we reported last quarter. As we get into the more seasonal timeframe here, where obviously, our rates to new customers are moving up, then we do expect that gap to narrow as we move through the business cycle.

Speaker Change: And can you talk about vacate activity, how that trended throughout the quarter and thus far into April.

Speaker Change: Yeah as we've moved through April.

Speaker Change: We've seen as I mentioned, both the year over year gap in occupancy and we just talked about the year over year gap in rate contracting same thing on the occupancy side. So today, we sit at 98%.

Speaker Change: Up 40 bps from the end of March and that gap to last year as contracted back to about 120 basis points.

Speaker Change: Month to date rentals in April are flat to last year, and then when we see on the move outside.

Speaker Change: Move outs continue to while they obviously bounce around by market, but are fairly in line with what we saw last year.

Todd Michael Thomas: Okay, got it. And then the occupancy build, you know, during the period, it appears as though it was a little bit below average when compared to prior years, just moving from the quarter average to the quarter end. Can you speak to where occupancy is today? And also, vacant activity was a little bit higher year over year? Are you seeing any change at all in terms of move outs? And can you talk about vacant activity, how that trended throughout the quarter and thus far into April?

Speaker Change: The period of time, certainly coming out of Covid, where we saw increasingly longer lengths of stay that's really started to trend closer back to stabilization and in some cohorts, we're seeing that start to contract a little bit.

Speaker Change: Okay.

Speaker Change: It does.

Speaker Change: Normalization there in terms of length of stay or maybe.

Speaker Change: Little bit of an uptick in <unk>.

Speaker Change: Kate activity does that does that give you pause at all in terms of the company's ECR strategy or or or have you rethink at all.

Christopher P. Marr: Yeah, as we've moved through April, we've seen, as I mentioned, both the year over year gap in occupancy, and we just talked about the year over year gap and rate contracting, same thing on the occupancy side. So today we sit at 90.8%, up 40 bips from the end of March, and that gap last year has contracted back to about 120 basis points. Month-to-date rental prices in April are flat compared to last year.

Speaker Change: You know that the pricing for existing customers around the sensitivity there to rate increases.

Speaker Change: So obviously something that we continue to.

Speaker Change: Pay very very close attention to.

Speaker Change: But the overall length of stay.

Speaker Change: While they are down a bit from all time highs they remain well ahead of historical levels.

Speaker Change: Customers in our portfolio for over a year, 62% two years, just over 44%, so down a little bit seasonally but still three to 500 basis points above historical averages. So.

Christopher P. Marr: And then when we look at the move outside, you know, move outs continue to, well, they obviously bounce around by market but are fairly in line with what we saw last year. The period of time, certainly coming out of COVID where we saw increasingly longer lengths of stay, that's really started to trend closer to stabilization. And in some cohorts, you know, we're seeing that start to contract a little bit.

Speaker Change: Customer behavior that we're witnessing.

Speaker Change: Does not at the moment and give us any cause to.

Speaker Change: To alter our sort of it.

Speaker Change: <unk> strategy as it relates to.

Speaker Change: Two increases for that existing customer cohort.

Speaker Change: Okay. Thank you.

Speaker Change: Thanks Todd.

Todd Michael Thomas: Okay. Does the normalization there in terms of length of stay or maybe, you know, a little bit of an uptick in vacate activity give you pause at all in terms of the company's ECRI strategy, or have you rethink at all, the pricing for existing customers around, you know, the sensitivity there to rate increases? So obviously something that we

Speaker Change: Our next question comes from the line of Jeff Spector from Bank of America go ahead. Please.

Jeffrey Alan Spector: Great. Thank you Chris My first question just given your length of experience as I think about the conversations so far and started this peak leasing season.

Jeffrey Alan Spector: Feels like there's a lot of uncertainty.

Go back to pre Covid.

Jeffrey Alan Spector: Is this in line with historically, what you would normally see entering spring leasing or would you say it is fair based on your comments on the week to week changes in the economic data that's still the 24 spring leasing season.

Christopher P. Marr: So, obviously, something that we continue to pay very, very close attention to, but the overall lengths of stay, while they're down a bit from all-time highs, they remain well ahead of historical levels. Customers in our portfolio for over a year, 62 percent, two years, just over 44 percent, so down a little bit seasonally, but still, you know, three to five hundred basis points above historical averages, so the customer behavior that we're witnessing does not, at the moment, give us any cause to alter our recent strategy as it relates to increases for that existing customer cohort.

Jeffrey Alan Spector: Uncertainty is still high.

Speaker Change: Yes, Jeff I think it's fair to say that the uncertainty is quite high.

Speaker Change: I chuckle, a little bit because I'm trying to think about what's a normal rate. We would have sat here in 2018, 2019, and while the demand was normal we had such elevated supply.

Speaker Change: That.

Speaker Change: Our concern was are you going to are you going to have enough demand to be able to fill up all the development that has come online and obviously, we had at the beginning of Covid, which was which was quite dysfunctional and then the surge in demand that we saw in.

Operator: Our next question comes from the line of Jeff Spector from Bank of America. Go ahead, Jeff.

Jeffrey Alan Spector: Great, thank you. Chris, my first question, just given your length of experience, as I think about the conversation so far and the start of this peak leasing season, you know, it still feels like there's a lot of uncertainty. If you go back to pre-COVID, is this in line with historically what you would normally see entering spring leasing, or would you say it is fair based on your comments on the week-to-week changes in the economic data that, still, the 24 spring leasing season, you know, uncertainty is still high?

Late 'twenty and all $3 21 to the early parts of 'twenty two.

Speaker Change: The fact that interest rates remained elevated the fact that we have.

Speaker Change: The housing market that we've spoken about AD Nauseum certainly that's one segment of everyday life events that that is challenged at the moment in terms of mobility. So if I had to sit and look back at a normal trend over my 30 years in doing.

Christopher P. Marr: Yeah, Jeff, I think it's fair to say that the uncertainty is quite high. I chuckled a little bit because I'm trying to think about what's normal, right?

Speaker Change: I would say, we're obviously missing or not quite yet seeing that one segment. So it does feel a little bit more muted across the country than what we would have seen in <unk>.

Christopher P. Marr: We would have sat here in 2018-2019, and while the demand was normal, we had such elevated supply that, you know, the concern was, are you going to have enough demand to be able to fill up all the developments that had come online? And obviously, we had the beginning of COVID, which was, which was quite dysfunctional. And then the surge in demand that we saw in late 20 and all through 21, to the early parts of 22.

Speaker Change: Whatever we would define as a more normal environment.

Speaker Change: But that uncertainty is.

Speaker Change: So again.

Speaker Change: It's kind of where we are here. The next couple of months are going to be as I said very informative.

Speaker Change: Thank you that's helpful. And then I just want to clarify again I have that's the higher end of the guidance reflects a stronger spring leasing season and improving price sensitivity.

Speaker Change: Is that correct is that still the case that the higher end reflects that.

Speaker Change: It is Jeff that you hope your recollection is correct.

Christopher P. Marr: The fact that interest rates remained elevated, the fact that we have I... The housing market that we've spoken about ad nauseum, certainly that's one segment of, you know, everyday life events that is challenged at the moment in terms of mobility. So if I had to sit and look back at a normal trend over, you know, my 30 years of doing this, I would say we're obviously missing or not quite yet seeing that one segment.

Speaker Change: Okay. Thanks, and then third if I could just ask I'm curious on Florida in particular with the markets that benefited from the pandemic and movement.

Just given there is still such strong there's still healthy population growth in these markets, it's definitely slowed but still population growth.

Christopher P. Marr: So it does feel a little bit more muted across the country than what we would have seen in, you know, whatever we would define as a more normal environment. But that uncertainty is... So again, that's kind of why where we are here the next couple of months are going to be, you know, as I said, very informative.

Speaker Change: Can you provide some insights on what you think is happening in some of these markets that.

Speaker Change: There is there are more challenged because you didn't cite them necessarily as supply for you. Chris you. Specifically said these are markets that saw the big boom during the pandemic.

Jeffrey Alan Spector: Thank you. That's helpful. And then I just want to clarify again. I understand that the higher end of the guidance reflects a stronger spring leasing season and improving price sensitivity. Is that correct? Is that still the case that the higher end reflects that?

Christopher P. Marr: Alright, Yes, I think what Youre seeing is a combination of things.

Christopher P. Marr: In Florida, you obviously have.

Christopher P. Marr: Reduced inbound movement.

Christopher P. Marr: From what we saw in the Covid couple of years.

Christopher P. Marr: You had supply.

Christopher P. Marr: On the West Coast of Florida pretty significant Miami.

Christopher P. Marr: It is, Jeff, if your recollection is correct.

Christopher P. Marr: That was introduced in 19 2021 that had that had benefited from all of that inbound COVID-19 customers, but it's still there and is still.

Jeffrey Alan Spector: Okay, thanks. And then third, if I could just ask, I'm curious, on Florida in particular, or the markets that benefited from the pandemic and movement, just given there's still such a strong, there is still healthy population growth in these markets. It's definitely slowed, but there is still population growth. I guess, can you provide some insights on what you think is happening in some of these markets where they're more challenged? Because you didn't cite them necessarily as supply, but Chris, you specifically said these are markets that saw a big boom during the pandemic. Yeah, I think what you're saying is

Christopher P. Marr: Weighing a bit on those markets you had natural disasters in terms of like the Cape Coral area huge benefit from the hurricane.

Christopher P. Marr: And now you are on the other side of that.

You have.

Christopher P. Marr: Pricing in Florida from some of our larger competitors that has not been super constructive over the last couple of quarters. So I think there's just a variety of factors that are that are impacting Florida as it starts to come down off of what was just tremendous performance for two years.

Speaker Change: Great. Thank you.

Christopher P. Marr: Yeah, I think what you're saying is a combination of things in Florida. You obviously have reduced inbound movement from what we saw in the COVID couple of years. You had supply on the west coast of Florida, pretty significant. Miami, that was introduced in 19-2021, that benefited from all of those inbound COVID customers, but it's still there and is still weighing a bit on those markets. You had natural disasters, in terms of like the Cape Coral area, huge benefit from the hurricane, and now you're on the other side of that.

Speaker Change: Our next question comes from the line of Eric Wolfe from Citi, Canada Go ahead. Please.

Eric Wolfe: Hey, good morning.

Eric Wolfe: As part of your guidance it looks like Youre expecting the second half of the year to step up to 68 cents of quarterly core <unk> versus 64 cents in the first half.

I was just wondering if you could talk about what's driving that increase in the back half of the year.

Eric Wolfe: And it's pretty natural trend line for for US historically in our sector overall that the back half tends to tend to the step up from the front half just naturally naturally with the.

Christopher P. Marr: You have pricing in Florida from some of our larger competitors that has not been super constructive over the last couple of quarters. So I think there's just a variety of factors that are impacting Florida as it starts to come down off of what was just tremendous performance for two years.

Eric Wolfe: The weighting of.

Eric Wolfe: Revenue increases throughout the summer rental season, so not a surprise and pretty consistent with past trends that the back half has more.

More earnings than the front half.

Eric Wolfe: Okay.

Speaker Change: If I think about sort of yes to your point I mean, you normally see.

Operator: Our next question comes from the line of Eric Wolfe from Citi, Canada. Go ahead.

Speaker Change: This step up in sort of realized rent per occupied foot in the third quarter versus second quarter. So I was just sort of curious based on what you're seeing thus far in terms of street rates.

Eric Wolfe: Hey, good morning. As part of your guidance, it looks like you're expecting the second half of the year to step up to 68 cents of quarterly core FFO versus 64 cents in the first half. I'm just wondering if you could talk about what's driving that increase in the back half of the year.

Speaker Change: You will see that that's sort of normal step up in the third quarter.

Speaker Change: I guess I'm effectively just trying to understand what you need to see from a street rates in ECR I perspective to get to that to that normal increase that you see in the third third quarter.

Speaker Change: I think we certainly would expect to see an increase in our ability to to push on rates to new customers as you get into the to the summer rental season, the range to which we're able to do that is.

Christopher P. Marr: It's a pretty natural trend line for us historically in our sector overall that the back half tends to step up from the front half just naturally with the weighting of revenue increases throughout the summer rental season. So it's not a surprise and pretty consistent with past trends that the back half has more earnings than the front half.

Speaker Change: It's going to be dependent on all the things we've been talking about on the call, thus far which is.

Eric Wolfe: Okay. And if I think about sort of, yeah, I mean, to your point, you normally see a nice step up and sort of realize rent per occupied foot in the third quarter versus the second quarter. So I was just sort of curious, you know, based on what you're seeing thus far, in terms of street rates, do you think you'll see that sort of normal step up in the third quarter? I guess I'm effectively just trying to understand what you need to see from a street rates and ECRI perspective to get to that normal increase that you see in the third quarter.

Speaker Change: The underpinning the range in our overall same store revenue guide is going to be to what extent are we able to to get closer to a more normal seasonality.

Speaker Change: On one end of the guidance on the other end of the guidance. If we have a repeat of what we saw last year that kind of defines the other side of it so.

Speaker Change: Answer is really consistent with our overall.

Same store revenue guide.

Speaker Change: It's just going to depend on all the things that we see here over the next couple of months.

Speaker Change: Okay, and then maybe just one other one if you look at the scraping data, which maybe isn't accurate but.

Speaker Change: Looks like the public Reits have sort of lower pricing in the non rights.

Christopher P. Marr: I think we certainly would expect to see an increase in our ability to push rates on new customers as you get into the, you know, summer rental season. The extent to which we're able to do that is going to be dependent on all the things that we've been talking about on the call thus far, which is, you know, underpinning the range in our overall same store revenue guide is going to be, to what extent are we able to get closer to a more normal seasonality.

Speaker Change: I guess is there any concern that you are.

Speaker Change: You sort of created a little bit of a race to bottom in terms of the street rates and I guess thinking long term about how you will evaluate the strategy of maybe having lower street rates beginning in a bit more aggressive ECR is versus the more traditional approach how will you evaluate whether this strategy is working or not.

Speaker Change: I think from our perspective, and then all of the data that we are.

Christopher P. Marr: On the one end of the guidance and on the other end of the guidance, if we have a repeat of what we saw last year, that kind of defines the other side of it. So the answer is really consistent with our overall same store revenue guidance. It's just going to depend on all the things that we see here over the next couple of months.

Speaker Change: Accessing and have been looking at over the past several years.

Speaker Change: As I mentioned that Youre seeing that sequential.

Speaker Change: The improvement in the year over year gap in rates, we're seeing rates.

Speaker Change: From the competition that we have within the trade ring of our stores.

Eric Wolfe: And then maybe just one other one, you know, if you look at the scraping data, which maybe isn't accurate, but you know, it looks like the public rates of sort of lower pricing, the non-REITs, I guess, is there any concern that, you know, you're sort of creating a little bit of a race to the bottom in terms of the street rates, and I guess thinking long term about, you know, how you'll evaluate the strategy of maybe having lower street rates at the beginning, a bit more aggressive ECRIs versus the more traditional approach, you know, how will you evaluate whether this strategy is working or not?

Speaker Change: Moving up seasonally as you would expect and we're seeing more constructive pricing in regards to individual strategies again.

Speaker Change: Objective two our revenue maximization system is to produce.

Speaker Change: The highest revenue that we can from each individual customer over their lifetime with us and will continue to.

Speaker Change: Fine tune the models and continue to look at different ways to achieve that but that's ultimately the objective.

Speaker Change: I think your comment about the non REIT operators.

Speaker Change: The reality is the gap in.

Christopher P. Marr: I think from our perspective and all of the data that we are accessing and have been looking at over the past several years, you know, as I mentioned, you're seeing that sequential improvement in the year-over-year gap in rates. We're seeing rates from the competition that we have within the trade ring of our stores moving up seasonally, as you would expect, and we're seeing more constructive pricing in regards to individual strategies.

Speaker Change: Number of customers and balance sheet capacity and the ability to.

Speaker Change: Execute on things as I described in terms of you know automate lookalike targeting and being able to deliver a more relevant and personal experience across omni channel. As it is just things that are larger companies can do that are very difficult for the smaller ones.

Speaker Change: Locate and therefore, youre always going to have that big operational gap between the Reits and the other competitors in the marketplace.

Speaker Change: That's helpful. Thank you.

Christopher P. Marr: Again, the objective of our revenue maximization system is to produce the highest revenue that we can from each individual customer over their lifetime with us, and we'll continue to fine-tune the models and continue to look at different ways to achieve that. But that's, you know, ultimately the objective. I think your comment about the non-read operators, the reality is the gap in the number of customers in balance sheet capacity and the ability to execute on things as I described in terms of, you know, automate lookalike targeting and being able to deliver a more relevant and personal experience across Omni channels.

Keybanc, Ken: Our next question comes from the line of Keybanc, Ken from two Securities go ahead. Please.

Ken: Thank you good morning.

Ken: Chris when you look at the move in rent trends its been the beginning of the year till now.

Ken: How does that compare to I know, it's difficult to say what normal is but a normal seasonal pattern.

Ken: Yeah, again, I think everything is a little bit more muted than what you would expect as to how it will kind of define normal.

Ken: Which which goes to my.

Ken: My comments.

Ken: At the beginning of the call around just the volatility and the customer the volatility in the data the volatility in the macroeconomic backdrop.

Christopher P. Marr: It's just things that the larger companies can do that are very difficult for the smaller ones to replicate, and therefore, you're always going to have that big operational gap between the REITs and the other competitors in the market.

Ken: And typically your realized rents with increase in <unk> versus <unk> It makes sense.

Ken: But given some of the volatility and.

Eric Wolfe: Thank you.

Operator: Our next question comes from the line of Ki-Bin Kim from True Securities. Go ahead, please.

Ken: Some weakness in pricing.

Ken: Do you think <unk> sequential rents realized can increase.

Speaker Change: Yeah, I think again I think that is possible.

Ki Bin Kim: Good morning, Chris. When you look at the moving rent trends from the beginning of the year until now, how does that compare to, I know it's difficult to say what normal is, but a normal seasonal pattern?

Speaker Change: Hi.

Speaker Change: As we sit here at the end of April we've got.

Speaker Change: <unk> got a lot of information, we're going to get over the next couple of months that will be as I said very instructive as to how the year plays out.

Christopher P. Marr: Yeah, again, I think everything is a little bit more muted than you would expect as to how we want to define normal. Which goes to, you know, my comments at the beginning of the call around just the volatility in the customer, the volatility in the data, the volatility in the macroeconomic factors.

Speaker Change: Thanks, Tom if I could squeeze a third one here.

Speaker Change: Obviously doing well for you guys, but it did slightly be felt from last quarter and two quarters ago. Just wondering if there. If you can provide any color and how we should think about this going forward.

Speaker Change: Yes, I am sorry to keep it at the very beginning there the connection sort of zapped, a little bit so I didn't hear the first part of your question.

Ki Bin Kim: And, you know, typically, your realized rents would increase in 2Q versus 1Q. That makes sense. But given some of the volatility and some weakness in pricing... Do you think in 2Q, sequential rents realized can increase?

Speaker Change: I think you are in New York City market is obviously doing well for you guys, but it has shown some deceleration over the past couple of quarters. So I was wondering if you can provide any color and just how we should think about this moving forward and New York City.

Speaker Change: Yeah, I mean, the New York market in total in New York City boroughs, specifically, we continue to expect will be the leader.

Christopher P. Marr: Yeah, I think again, I think that is possible. As we sit here at the end of April, you know, we've got a lot of information we're going to get over the next couple of months that will be, as I said, very instructive as to how the year plays out.

Speaker Change: Our portfolio in terms of those metrics around growth.

Speaker Change: How they progress.

Speaker Change: It is going to be highly <unk>.

Impactful by what the next couple of months look like but I think the trends that we're seeing in New York.

Speaker Change: <unk> are very positive to us.

Ki Bin Kim: And thanks. In fact, there's a third one here, you know, it's obviously doing well for you guys, but it did slightly decline from the last quarter and two quarters ago. Just wondering if you can provide any color and how we should think about this going forward.

Speaker Change: But some of the same pressure youre seeing in North Jersey as it relates to supply.

Speaker Change: Those continue to be there Westchester and long island also have a little bit of supplies of the boroughs continue to do quite well in our leading overall in the MSA the Westchester long Island, and North Jersey suburbs will bounce around here, a little bit as we deal with the impact of supply.

Christopher P. Marr: I'm sorry, Keegan. At the very beginning, the connection sort of zapped a little bit, so I didn't hear the first part of your question.

Speaker Change: Okay. Thank you.

Speaker Change: Our next question comes from the line of Keegan Coe from Wolfe Research go ahead. Please.

Ki Bin Kim: I said your New York City market is obviously doing well for you guys, but it has shown some deceleration over the past couple quarters, so I was wondering if you could provide any color and just how we should think about this moving forward in New York City.

Keegan Grant Carl: Yes. Thanks for the time guys, maybe first I know you maintained your outlook on your same store revenue range, but I'm just curious if there's any change to your underlying assumptions on occupancy street rate nature, given the year to date performance.

Speaker Change: No really no change at all the first quarter as we mentioned came in right down the middle of the fairway from what we expected.

Christopher P. Marr: Yeah, I mean, the New York market in general and New York City boroughs specifically, we continue to expect will be, you know, the leader of our portfolio in terms of those metrics around growth. How they progress is going to be highly impactful on what the next couple of months look like. But I think the trends that we're seeing in New York are very positive for us. But some of the same pressures you're seeing in North Jersey as it relates to supply will continue to be there.

Speaker Change: And then and then again just to reiterate it again the expectation for the rest of the year is going to be highly dependent on the next couple of months, we haven't seen it yet so really really nothing has changed.

Speaker Change: And in the guidance range overall or frankly on any of the underlying assumptions that support it.

Got it and then shifting gears to play has been a pretty big.

Speaker Change: Focus on our discussion with investors just curious what youre seeing out there for the balance of this year 25 are there any markets in particular that you think your plans in Europe.

Christopher P. Marr: Westchester and Long Island also have a little bit of supply, so the boroughs continue to do quite well and are leading overall in the MSA. The Westchester, Long Island, and North Jersey suburbs will bounce around here a little bit as we deal with the impact of supply. Okay, thank you. Our next question comes from the line of...

Speaker Change: As this will be impacted outsized manner.

Speaker Change: Yes.

Speaker Change: Mentioned on the.

Speaker Change: On the on the opening remarks overall.

Supply continues to decline and remains pretty constructive in terms of.

Of.

Its impact on us I think when you again, there is supply it's not.

Operator: Our next question comes from Keegan Carl from Wolfe Research. Go ahead. Yeah, thanks for the time, guys. Maybe first, I know you've maintained your outlook on your same store revenue range, but I'm just curious if there's any change in your underlying assumptions.

Speaker Change: Not zero as it shouldnt be in a healthy economy.

Speaker Change: But when you think about individual markets, we would expect to continue to see some impact in Philadelphia in the Philadelphia suburbs as one that is seeing it I mentioned North Jersey.

Keegan Grant Carl: Now, really, no change at all. The first quarter, as we mentioned, came in right down the middle of the fairway from what we expected. And then again, just to reiterate it again, the expectation for the rest of the year is going to be highly dependent on the next couple of months. We haven't seen it yet. So really, nothing has changed in the guidance range overall or, frankly, any of the underlying assumptions that support it.

Speaker Change: Okay.

Speaker Change: I think when you when you look out across the rest of the country that will be.

Speaker Change: Pockets here and there.

Speaker Change: In terms of new development deliveries, but nothing.

Speaker Change: That stands out is extra.

Extremely impactful.

Speaker Change: Again, we have we have some markets where.

Speaker Change:

Speaker Change: Those those deliveries that that are on the docket may or may not actually happen just given.

Speaker Change: How much things have changed in terms of cost of capital and cost of raw materials.

Speaker Change: Got it thanks for the time guys.

Christopher P. Marr: Yeah, as I mentioned in the opening remarks, overall, supply continues to decline and remains pretty constructive in terms of its impact on us. I think when you again, there is supply, it's not, it's not zero, as it shouldn't be in a healthy economy.

Thanks.

Speaker Change: The next question comes from the line of Eric <unk> from Wells Fargo Go ahead. Please.

Eric Wolfe: Alright, great. Thanks for the thanks for the question.

Eric Wolfe: So I know last quarter, you said for potential acquisitions, youre seeing the bid ask spread narrow a bit versus last year, but just wondering given the recent backup in interest rates and market volatility.

Christopher P. Marr: But when you think about, you know, individual markets, we would expect to continue to see some impact in Philadelphia and the Philadelphia suburbs as one that is seeing it. I mentioned North Jersey. I think when you look out across the rest of the country, there'll be pockets here and there in terms of new development deliveries, but nothing, you know, that stands out as extremely impactful. You know, again, we have some markets where those deliveries that are on the docket may or may not actually happen, just given how much things have changed in terms of the cost of capital and the cost of raw materials.

Eric Wolfe: Are you finding it still pretty tough to find attractive.

Eric Wolfe: M&A opportunities in the market.

Yes.

Speaker Change: Yes, certainly we saw that there was a bit of a head fake.

Speaker Change: A couple of months back as rates were coming down and brokers were at that point signaling probably more more wishful thinking I guess from their perspective that there was going to be a lot of stuff coming to market and then that turned out to be a little bit of a head fake I think the challenge right now is that the bid ask spread.

Speaker Change: Is is pretty hard to gauge.

Speaker Change: Just because theres so little transaction volume at the moment I think folks are are generally speaking trying to.

Speaker Change: Take a couple of months here and see where things land all that said clearly there are some transactions that need to trade.

Operator: The next question comes from the line of Eric Luebchow from Wells Fargo. Go ahead.

Speaker Change: They are held in closed end funds or they are held in a structure, where where that group.

Eric Thomas Luebchow: Great, thanks for the question. So I know last quarter you said for potential acquisitions you were seeing the bid-ask spread narrow a bit versus last year, but just wondering, given the recent rise in interest rates and market volatility, are you finding it's still pretty tough to find attractive M&A opportunities in the market?

Speaker Change: Needs need some liquidity something's got to give it some client and.

Speaker Change: What we do is continue to.

Speaker Change: To work hard to underwrite every deal that we can get our hands on.

Speaker Change: And ultimately we want to put the balance sheet to work because we've created an awful lot of capacity to to fund external growth. When we find those opportunities. So if I had to guess I would say that the bid ask spread.

Christopher P. Marr: Yeah, certainly, we saw that there was a bit of a head fake. You know, a couple months back, as rates were coming down, and brokers were, at that point, probably signaling more, more wishful thinking, I guess, from their perspective, that there was going to be a lot of stuff coming to market. And then that turned out to be a little bit of a head fake.

Speaker Change: Hasnt got back out.

Speaker Change:

Speaker Change: But it really really difficult to say, there's just so little that's trading at the moment.

Speaker Change: We had we had also spoken to many brokers some of them would suggest that if you go back to a pre COVID-19 normal type of year that things that came across their desk that they would take to market. They would have an expectation that 80% to 85% of those deals would trade.

Christopher P. Marr: I think the challenge right now is that the bid-ask spread is pretty hard to gauge just because there's so little transaction volume at the moment. I think folks are, generally speaking, trying to take a couple months here and see where things land. All that said, clearly, there are some transactions that need to trade. Whether they're held in closed-end funds or they're held in a structure where that group needs some liquidity, something's got to give at some point.

Speaker Change: Those same brokers today see that about 25% to 30% of the things that they list actually trade.

Speaker Change: So even a lot of the stuff that you underwrite that you end up not being successful on Thats not that you are successful in somebody's bidding more than you. It just doesn't trade at all so difficult to evaluate from that perspective.

Speaker Change: Gotcha.

Speaker Change: Hopeful color I guess not to harp on the supply question too much but I think last quarter, you said across your whole portfolio about 27% of stores have been impacted by supply and I believe that is looking at like a trailing three year basis, if I recall correctly. So if you look at actual deliveries this year versus the previous two years, and then kind of what's.

Christopher P. Marr: And what we do is continue to work hard to underwrite every deal that we can get our hands on. And ultimately, we want to put the balance sheet to work because we've created an awful lot of capacity to fund external growth when we find those opportunities.

Eric Thomas Luebchow: So if I had to guess, I would say that the bid-ask spread hasn't got back out. But it's really difficult to say. There's just so little that's trading at the moment. We have also spoken to many brokers, and some of them would suggest that if you go back to a pre-COVID normal type of year, things that came across their desks that they would take to market, they would have an expectation that 80 to 85% of those deals would trade.

Speaker Change: Under construction are new starts do you think that 27% goes even lower in 'twenty five and 26, just based on what you see.

Shovels in the ground on new construction today.

Speaker Change: Yes based on what we see today and certainly in our top 15 markets, which generate about 75% of our revenues.

Eric Thomas Luebchow: Those same brokers today see that about 25 or 30 percent of the things that they list actually trade. So even a lot of the stuff that you underwrite that you end up not being successful on, it's not that you're successful and somebody's bidding more than you; it just doesn't trade at all. So it's difficult to evaluate from that.

Speaker Change: Would expect that that trend from 40% in 2021% to 35% and 22 down to 30% and 23, 27% in 2024 were to continue to decline as we get into 2025.

Eric Thomas Luebchow: Gotcha. That's a helpful caller.

Christopher P. Marr: I guess not to harp on the supply question too much, but I think last quarter you said across your whole portfolio, about 27% of stores had been impacted by supply. And I believe that is looking at it on a trailing three-year basis, if I recall correctly. So if you look at actual deliveries this year versus the previous two years, and then kind of what's under construction or new starts, do you think that 27% goes even lower in 2025 and 2026, just based on what you see, you know, shovels in the ground on new construction today?

Speaker Change: 26 at this point.

Speaker Change: Alright, Thank you gentlemen.

Speaker Change: Thanks.

Speaker Change: Our next question comes from the line of Hawaii, San Gabriel from BMO Capital markets. Please go ahead.

Speaker Change: Hi.

Speaker Change: Just wanted to ask about.

Speaker Change: The pace or predictability of demand kind of through April year to date.

Speaker Change: You talked about kind of the back end of last year.

Speaker Change: More comfortable about normal customer behavior.

Speaker Change: Just curious.

Speaker Change: What you would say to some of the privates that said January and February were stronger March seems to kind of fall off a bit and whether you experienced that and if the customer behavior is still.

Christopher P. Marr: Yes, based on what we see today, and, you know, certainly in our top 15 markets, which generate about 75% of our revenues, we would expect that, you know, that trend from 40% in 2021 to 35% in 2022, down to 30% in 2023, 27% in 2024, would continue to decline as we get into 2025 and 26.

Speaker Change: <unk> Court normal as you see here, which was the case at the end of last year.

Speaker Change: I think in terms of demand across the portfolio versus our expectations. The first quarter played out as Tim said right down the middle of the fairway, there wasn't and identifiable nor expected catalyst to alter demand trends daring.

Speaker Change: The first quarter.

Speaker Change: Again versus our expectations things played out right down the middle.

Speaker Change: As I mentioned April year to months.

Eric Thomas Luebchow: All right. Thank you, gentlemen. Thank you.

Speaker Change: Month to date I gave you the occupancy info and rentals are flat to last year so trends.

Operator: Our next question comes from the line of Juan Sanabria from BMO Capital Markets. Go ahead.

Speaker Change: There is nothing from the trends in the first three months plus.

Juan Carlos Sanabria: I just wanted to ask about the pace or predictability of demand kind of through April year to date. You talked about kind of the back-to-normal quote-unquote normal as you see it, which was the case at the end of last year.

Speaker Change: The 26 days of April that are giving us any particular insight into what's going to happen over the next three months. So.

Speaker Change: Not to be a broken record, but the next three months are going to be highly enlightening and very impactful on how we think about the year.

Christopher P. Marr: I think in terms of demand across the portfolio versus our expectations, the first quarter played out, as Tim said, right down the middle of the fairway. There wasn't an identifiable nor expected catalyst to alter demand trends during the first quarter. So again, versus our expectations, things played out right down the middle.

Speaker Change: And then just.

Speaker Change: The government put out.

Speaker Change: New overtime pay rules, just I know storage as a whole has been very efficient in the use of labor hours. Just curious if theres anything we should be thinking about with regards to those new overtime rules and the impact on storage opex costs going forward.

Christopher P. Marr: As I mentioned, April, year to month to date, I gave you the occupancy info, and rental rates are flat compared to last year. So trends, there's nothing from the trends in the first three months plus the 26 days of April that are giving us any particular insight into what's going to happen over the next three months. So not to be a broken record, but you know, the next three months are going to be highly enlightening and very impactful on how we think about the year.

Speaker Change: And nothing nothing specific.

Speaker Change: Related to the new rules.

Speaker Change: As it relates to our business. Obviously, we are competing for talent in our stores with retailers and other businesses that.

Speaker Change: I have the same types of skill sets as we.

Juan Carlos Sanabria: And then, uh, the government put out new overtime pay rules. I know storage as a whole has been very efficient in the use of labor ban hours. Just curious if there's anything we should be thinking about with regard to those new overtime rules and the impact on storage OPEX costs going forward.

Speaker Change: Value in our.

Speaker Change: Store and district team mates.

Speaker Change: And that continues to be a pretty competitive environment, but.

Speaker Change: From our perspective.

Speaker Change: Nothing has really changed in terms of that environment.

Speaker Change: And just last one last one for me on the third party management very strong first quarter.

Christopher P. Marr: and nothing specific related to the new rules as it relates to our business. Now, obviously, we are competing for talent in our stores with retailers and other businesses that have the same types of skill sets as we value in our store and district teammates, and that continues to be a pretty competitive environment, but from our perspective, nothing has really changed in terms of that environment.

Speaker Change: What's the visibility for the balance of the year and should we expect that kind of above trend growth to continue for the foreseeable future.

Speaker Change: Yes. So we did have thanks. So let me just have the opportunity to say it a second time, but 68 stores in the first quarter was was the most that we've on boarded and 14 years in a single quarter. So that was fantastic we have a very healthy pipeline.

Christopher P. Marr: And just one last one for me. On third-party management, a very strong first quarter. What's the visibility for the balance of the year, and should we expect that kind of above-trend growth to continue for the foreseeable future?

Speaker Change: This will surely be your number eight of us being able to add at least 130, new stores to the platform I think on the other side. When you think about churn on the third party management platform, which is which is a normal and healthy thing.

Christopher P. Marr: Yeah, so we did have, thanks for letting me just have the opportunity to say it a second time, but 68 stores in the first quarter were the most that we've onboarded in 14 years in a single quarter. So that was fantastic.

Because of the transaction market is slow we do have an expectation that fewer stores will leave the portfolio because the transaction market is muted.

Christopher P. Marr: We have a very healthy pipeline. This will surely be year number eight of us being able to add at least 130 new stores to the platform. I think on the other hand, when you think about churn on the third-party management platform, which is a normal and healthy thing because the transaction market is slow, we do have an expectation that fewer stores will leave the portfolio because the transaction market is slow. So we expect to have another very productive year on the third-party management front.

Speaker Change: So we expect to have.

Speaker Change: Another.

Speaker Change: Very productive year on the third party management front. The reality is that is.

Speaker Change: When you have times like this where the operating environment isn't normal and it becomes more challenging.

Speaker Change: Existing owners are more likely to recognize the need and the value that a sophisticated operating platform like ours provides.

Speaker Change: So the math around.

Speaker Change: Around the value of our services becomes a lot easier for those folks when times get a little bit challenging.

Christopher P. Marr: The reality is that when you have times like this where the operating environment isn't normal, and it becomes more challenging, existing owners are more likely to recognize the need and the value that a sophisticated operating platform like ours provides. And so the math around the value of our services becomes a lot easier for those folks when times get a little bit challenging. So, it's bad news that fundamentals aren't as robust as they were in 2021 and 2022.

Speaker Change: So bad news that fundamentals arent as robust as they were in 2021 and 'twenty two good news as it allows those of US who have a lot of great.

Speaker Change: Great tools and data.

Speaker Change: Really well staffed and powerful platform to really show that value at times like this.

Speaker Change: From times, where everybody is doing well.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Brendan Lynch from Barclays Go ahead. Please.

Christopher P. Marr: The good news is it allows those of us who have a lot of great tools and data and a really well-staffed and powerful platform to really show that value at times like this, apart from times when everybody else is doing it.

Brendan Lynch: Great. Thanks for taking the question I wanted to circle back to the.

Brendan Lynch: Advertising spend being down.

Brendan Lynch: Youre talking about the improved conversion rates and return on invested capital improving can you just quantify maybe the order of magnitude.

Operator: Our next question comes from the line of Brendan Lynch.

Brendan James Lynch: Great, thanks for taking the question. I wanted to circle back to the advertising spend being down and you talking about the improved conversion rates and return on invested capital improving. Can you just quantify maybe the order of magnitude that you have seen so far in those changes and what the potential opportunity is going forward?

That you have seen so far and those changes and what the potential opportunity is going forward.

Speaker Change: Sure. So when I think about taking it backwards when you think about the potential opportunity going forward. It continues to be a focus on how can we use.

Speaker Change: The tools that are available.

Christopher P. Marr: Sure. So, when I think about, you know, taking it backwards, when you think about the potential opportunity going forward, it continues to be a focus on how can we use the tools that are available to us, both through our CDP, as well as through things like, you know, Google's Performance Max, which is, you know, an AI-powered campaign, help supplement our traditional paid search campaigns by [inaudible] things like that under the hood that we continue to work on and refine to make our marketing spend as efficient as possible.

Speaker Change: To us both through our CDP as well as through.

Speaker Change: Things like Google's.

Speaker Change: Performance, Max which is an AI powered campaign.

Speaker Change: Supplement our traditional paid search campaigns by <unk>.

Speaker Change: Exposing those qualified users to cube smart ads across multiple <unk>.

Speaker Change: <unk> placements and there are countless.

Speaker Change: Things like that under the Hood that we continue to work on and refine to make our.

Speaker Change: Marketing spend as efficient as possible and I think that we are in the early stages of beginning to see the benefits.

Christopher P. Marr: And I think that we are in the early stages of beginning to see the benefits of those investments that we've made historically and those that we'll continue to make here over the next couple of years. In terms of just numbers, when you think about web visits, they are up. 6% or so over where they were last year. The conversion rate is about 530 basis points better than it was last year. We're reducing our cost per click by a magnitude of around 9%.

Speaker Change: Of those investments that we've made historically and those that will continue to make here over the next couple of years.

Speaker Change: In terms of just numbers when you think about web visits are up.

Speaker Change: 6% or so over where they were last year the conversion rate's about 530 basis points better than it was last year.

Speaker Change: We're reducing our cost per click spy and the magnitude of around 9%. So.

Christopher P. Marr: So those are some data points against that, but it is a rapidly changing environment. Obviously, we do. The impact of the removal of cooking has now been somewhat deferred into next year, but that will also change the landscape for those of us who rely heavily on digital marketing for customer capture. So exciting stuff going on here at Cube, and I think in the digital world in general, and we're highly focused on finding ways for it to reduce our costs and help improve customer capture and revenue maximization.

Speaker Change: Those are some some data points against that but it is.

Speaker Change: A rapidly changing environment, obviously, we have.

Speaker Change: The impact of the removal of <unk>.

Speaker Change: Cooking.

Speaker Change: That has now been somewhat deferred into next year, but that will also change the landscape for those of US who rely heavily on digital marketing for customer capture so exciting stuff going on here at cube and I think in the <unk>.

Speaker Change: The digital World in General and we're highly focused on finding ways for it to reduce our costs and help improve.

Speaker Change: Customer capture and revenue maximization.

Brendan James Lynch: Great, that's helpful. And one more on expense items. Property insurance. Is the increase most acute in markets with weather risk, or is it pretty even across the board? And do you have just property insurance, or do you also have business disruption insurance as well?

Speaker Change: Great that's helpful and one more on.

Speaker Change: Expense items.

Speaker Change: Property insurance.

The increase is the most acute in markets with weather risk or is it pretty even across the board and do you have just property insurance or do you also have business disruption insurance as well.

Christopher P. Marr: It's difficult to answer the first question because we have an approach across the entirety of our portfolio. So getting visibility into, into, you know, market by market, it's a little bit challenging because it's quoted for the entirety of the portfolio. Obviously, it's going to be influenced by those areas that are more impacted by some of the recent activity and some of the other pressures just more broadly on commercial costs of insurance, Florida comes to mind. Um, and then there was. We do have business interruption as part of our overall coverage. Okay.

Speaker Change: It's difficult to it's difficult to answer the first question because we have a.

Approaches across the entirety of our portfolio, so getting visibility into into market by market, it's a little bit challenging because it's quoted for the entirety of the portfolio. Obviously is going to be it's going to be influenced by those areas that are more impacted by.

Speaker Change: By some of the recent activity in some of the other pressures just more broadly on commercial cost of <unk>.

Speaker Change: Insurance, Florida comes to mind.

Speaker Change: And then.

Speaker Change: Business disruption alternative.

Speaker Change: We do have business interruption as part of as part of our overall coverage.

Brendan James Lynch: Okay, great. Thanks for the call.

Speaker Change: Okay, great. Thanks for the color.

Operator: Our next question comes from the line of Tayo Okunsanye from Deutsche Bank. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Tayo Okusanya from Deutsche Bank. Please go ahead.

Tayo Okunsanye: Good morning. Thanks for taking my question. There was a comment earlier on just about eCRI trends in terms of frequency and magnitude kind of being similar to kind of where you've been experiencing them. Could you just provide a little bit more color around that in terms of, you know, ECR is generally up. Again, you know, still in the teens or high double digits, or give us a sense of what's happening there and if anything is changing in terms of just frequency, how quickly you're doing it, especially for new tenant capture.

Tayo Okusanya: Hi, Yes. Good morning, Thanks for taking my question.

Tayo Okusanya: There was a comment earlier on just about cri trends in terms of.

Tayo Okusanya: Frequency and magnitude kind of being able to kind of where you were you had been experiencing could you just provide a little bit more color around that in terms of.

Tayo Okusanya: CRA is generally up again.

Tayo Okusanya: Again, it's still in that.

Tayo Okusanya: Teens or high low double digits or give us a sense of what's happening there and if anything is changing in terms of just frequency of how quickly youre doing it, especially for kind of new tenant capture.

Christopher P. Marr: Sure, uh, over the last, uh... Three quarters or so, there's really been no change to the magnitude or the frequency of that program for Cube, and it continues to be running on average at about that mid-teens level in terms of the average increase that a customer may receive across the portfolio.

Tayo Okusanya: Sure.

Tayo Okusanya: Over the last.

Speaker Change: Let me quarters, or so theres really been no change.

Speaker Change: Change to the magnitude or the frequency of that program for you.

Speaker Change: It continues to be running on average at about that mid teens level in terms of the average increase that a customer may receive across the portfolio.

Tayo Okunsanye: Gotcha, that's helpful. And then in terms of just customer behavior, whether it's activity you're seeing with credit card payments or payments by other means, anything changing on that end? Any kind of increases in bad debt? Any kind of increases in delinquencies or anything of that nature?

Speaker Change: Gotcha Thats helpful.

Speaker Change: In terms of just the customer behavior weather activity.

Speaker Change: Activity to begin with.

Speaker Change: At payment so.

Speaker Change: Payments by other means.

Speaker Change: <unk> changing on that and any kind of increases in bad debt any kind of increase season.

Delinquencies or anything of that nature.

Christopher P. Marr: No, nothing. Nothing in terms of change and trends in our customers and our existing customer health as it relates to, you know, those areas of credit for the self storage business looking at units going to auction or customers, greater than 30 days past due, write-offs, et cetera. All trends continue to be in line with history.

No nothing.

Speaker Change: Nothing in terms of change in trends.

Speaker Change: In our customer and our existing customer health as it relates to that.

Speaker Change: The areas of credit for the self storage business looking at units going to auction and our customers.

Speaker Change: Greater than 30 days past due write offs et cetera are all trends continue to be in line with history.

Tayo Okunsanye: Great, thank you. Our next question comes from the line of...

Great. Thank you.

Thanks.

Speaker Change: Our next question comes from the line of Mike Mueller from Jpmorgan go ahead. Please.

Operator: Our next question comes from the line of Mike Mueller from J.P. Morgan. Go ahead. Yeah, hi. Just a really quick one.

Michael William Mueller: Yes, hi.

Michael William Mueller: Just a really quick one for the I guess, the port Chester development. It looks like the timing was pushed back a few quarters just curious what happened there.

Michael William Mueller: [inaudible] Nothing of particular note other than development timeframes, which are always subject to change.

Michael William Mueller: Typical of any development.

Michael William Mueller: As a pretty normal thing that things get pushed back.

Speaker Change: A variety of factors, including.

Operator: Our next question comes from the line of Michael Goldsmith from UBS. Go ahead.

Speaker Change: Just timing of getting permits the timing of getting certain subs in there nothing.

Michael Goldsmith: Two quick clarifications. First, on street rates, you know, we talked about the year-over-year change. Are you able to provide some kind of what the sequential change in street rates were for March and for April?

Speaker Change: Nothing of particular note other than development Timeframes are always are always subject to change.

Speaker Change: Got it okay.

Speaker Change: That was it I appreciate it thank you.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Michael Goldsmith from UBS go ahead. Please.

Hey, Dave.

Michael Goldsmith: Two quick clarifications first on street rates.

Christopher P. Marr: Yeah, Michael, I don't I'm sorry, I don't happen to have that sequential change at my fingertips, other than it continued to move sequentially up over that time period. I don't have the exact

Michael Goldsmith: We talked about the year over year change are you able to provide.

Michael Goldsmith: What the sequential change in street rates were for March and for April.

Dave: Yes, Michael.

Dave: Sorry, I don't happen to have that sequential change.

Speaker Change: My fingertips.

Speaker Change: Other than continuing to move sequentially up over that time period I don't have the exact number.

Michael Goldsmith: That's fine; I'll follow up. And then, just another clarification, I think you said that it's possible rates could improve sequentially in the second quarter. Are those street rates, or are those in place rates?

Michael Goldsmith: That's fine I'll follow up and then.

Michael Goldsmith: Just another clarification I think you said that it's possible rates improved sequentially in the second quarter is that street rates are set in place rents.

Christopher P. Marr: Street rates should continue to grow during the second quarter. I should realize rents will continue to improve through the course of the year.

Michael Goldsmith: Street rates should continue to grow during the <unk>.

Michael Goldsmith: Second quarter.

Michael Goldsmith: And should I should realized rents continue to improve through the course of the year.

Christopher P. Marr: This concludes our question and answer portion of the day. There are no further questions at this time. I'd now like to turn the call back over to Mr. Chris Marr for his final closing comments.

Speaker Change: Got it thank you very much.

Speaker Change: Thanks, Michael.

Speaker Change: This concludes our question and answer the question of the day. There are no further questions. At this time I would now like to turn the call back over to Mr. Chris Meyer for final closing comments.

Christopher P. Marr: Thank you. Thank you everyone for participating in the call. I think the industry as a whole continues to demonstrate its resilience. Our customers come to find us for everyday life events. And I think our industry continues to deliver a valuable service to help remove some of the stress from those everyday life events and provide folks with a safe and secure place to store their cherished possessions until they need them back. So, we're confident in the long-term growth of our industry, confident in Cube, and maximizing the opportunities that are presented to us.

Christopher P. Marr: Thank you. Thank you everyone for participating in the call I think the industry as a whole continues to demonstrate its resilience.

Speaker Change: Our customers come.

Christopher P. Marr: To find us with everyday life events, and I think our industry continues to deliver a valuable service to help.

Christopher P. Marr: Remove some of the stress from those everyday life events and provide folks with a safe and secure place to store their cherished possessions until they need them back. So we're confident in the long term.

Christopher P. Marr: Growth of our industry confident and cube of maximizing the opportunities that are presented to US obviously there are economic.

Christopher P. Marr: Obviously, there are economic factors and other things that are outside of our control, but what we can control is our focus on delivering that perfect rental every single time to our cherished customer base. And that's what you can be assured we are keenly focused on here, especially over the next several months of our busy season. So, thank you all for participating, and we look forward to seeing you in person or speaking to you again at the end of the second quarter. Take care.

Christopher P. Marr: Economic factors and other things that are outside of our control, but what we can control is focused on delivering that perfect rental every single time to our cherished customer base and that's what you can be assured we are keenly focused on here over especially over the next several months.

Christopher P. Marr: Of our busy season. So thank you all for participating and we look forward to seeing you in person or speaking to you again at the end of the second quarter take care.

Operator: Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line. Have a lovely day.

Christopher P. Marr: Yes.

Thank you ladies and gentlemen. This concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines have a lovely day.

Christopher P. Marr: Yes.

Christopher P. Marr: Yeah.

Christopher P. Marr: Okay.

Christopher P. Marr: Yes.

Christopher P. Marr: Yeah.

Christopher P. Marr: Okay.

Christopher P. Marr: Yes.

Christopher P. Marr: Yes.

Christopher P. Marr: Yes.

Christopher P. Marr: Yes.