Q1 2026 U-Haul Holding Co Earnings Call
All lines are in listen only mode. Following the presentation, we will conduct a question and answer session.
Any time during this call are required immediate assistance. Please press star zero for the operator. This call is being recorded on Thursday August seven of 2025.
I would now like to turn the conference over to Sebastian Vegas. Please go ahead Sir.
Good morning, everyone. Thanks for joining us and welcome to the your holding company first quarter 2026 investor call.
Before we begin I'd like to remind everyone that certain of the statements. During this call, including without limitation statements regarding revenue expenses income and general growth of our business may constitute forward looking statements within the meaning of the safe Harbor provisions of section 27, a of the Security Act Securities Act of 1933 as amended and section 20 <unk>.
One E of the Securities Exchange Act of 1934 as amended.
Forward looking statements are inherently subject to risks and uncertainties.
Some of which cannot be predicted or quantified.
Certain factors could cause actual results to differ materially from those projected.
For a discussion of the risks and uncertainties that may affect the company's business and future operating results. Please refer to the Companys public SEC filings and Form 10-Q for the quarter ended June 32025, which is on file with the U S Securities and Exchange Commission.
I will now turn the call over to Jason Berg, Chief Financial Officer of U haul holding company.
Thanks Sebastian.
I'm speaking to you today from our offices here in Phoenix, Arizona.
Showing our chairman and CEO is unable to attend today's call. However, he is going to be available to speak to you at length and answer questions in two weeks at our annual Investor and analyst webcast.
We do have Sam showing the vice chairman of our board of directors here with us today to answer questions.
Yesterday, we reported first quarter earnings of $142 million compared to $195 million for the same quarter last year.
In terms of EPS of <unk> 73 per nonvoting share this quarter versus a dollar per nonvoting share last year at this time.
Earnings before interest taxes, and depreciation that I'll refer to this as adjusted EBITDA and our moving and storage segment increased 6% or nearly $31 million for the <unk>.
<unk> driven by strong revenue growth across our product lines.
All of our product lines.
Included in our release and our financial supplement as a reconciliation of adjusted EBITDA to GAAP earnings.
The largest difference between adjusted EBITDA and GAAP earnings as depreciation and this is also the cause of the largest negative variance in earnings year over year.
During the first quarter of this year, we swung to a $22 million loss on the disposal retired rental equipment as compared to an $8 million gain last year.
Cargo vans that we purchased over the last two years that are now being sold came.
Came into the fleet with higher initial cost and the current market resale values are not reflecting this.
Hence, resulting in a loss.
We have increased the pace of depreciation of the remaining units to reflect this new reality.
Additionally, we have depreciation from increasing the size of the box truck fleet by approximately 8600 units compared to June of last year.
Pricing on new cargo vans for the upcoming model year indicate some nominal improvement.
Of the 27% decline in earnings per share in the first quarter 'twenty, one census from fleet depreciation and 12.
This from the increase in losses on rental equipment.
Sales.
For the first quarter, our equipment rental revenue results had a $44 million increase just over 4%.
Revenue per transaction increased for both our in town and one way markets compared to the first quarter of last year.
Overall transactions largely held steady with what we saw in the first quarter of last year.
For the month of July we've seen revenue continued to trend positively compared to the same period last year, but we haven't yet seen a big improvement in transactions.
Capital expenditures for new rental equipment in the first quarter were 585 million Thats, a $46 million increase compared to the same time last year.
This increase was spread across acquisitions of box trucks trailers and towing devices in carnival fans.
Self storage continues to be positive storage revenues were up $19 million, which is about a 9% increase for the quarter.
Average revenue per foot continued to improve across the entire portfolio just over 1%, while our same store portfolio was up but it was up just under 1% per occupied foot.
Our same store occupancy decreased by 100 basis points to just under 93%.
In July we took on an effort system wide to increase the number of available rooms at our existing locations.
By focusing on delinquent units.
While this effort will not affect revenue directly as we don't record any revenue until it's collected it.
Will serve to reduce our reported occupancy level.
Few points, if we don't refill all of those rooms.
Time for September reporting.
And our financial supplement you will see that we have a slide that shows where future storage revenue growth is coming from.
The future revenue growth from our existing portfolio has increased this is partially from us making these rooms now available to paying customers.
During the first quarter of this year, we invested $294 million.
Real estate acquisitions, along with self storage in U box warehouse development.
That's down $108 million from the first quarter of last year.
During the three months, we added 15 locations with storage and that's about $1 2 million, new net rentable square feet.
We currently have approximately $6 5 million new square feet being developed across a 124 projects.
Our U box revenue results are included in other revenue in our 10-Q filing in this line item increased $21 million.
Of which U box is a large part.
U box revenue by itself was up about 16%.
We continue to have success, increasing new box moving transactions as well as increasing the number of these containers that customers are keeping in storage.
Moving and storage operating expenses increased $44 million for the quarter as a percent of revenue we were even with the first quarter of last year.
The largest components of the increase were personnel, which was up $20 million.
Liability costs were up 17, and we did see an increase in fleet repair and maintenance due to the increased size of the fleet that was up about $5 million.
As of June at the end of June this year cash along with the availability from our existing corporate revolver at the moving and storage segment totaled $1 billion $191 million.
We are holding our 19th annual virtual analyst and Investor meeting on Thursday August 21 at 11, a M at two o'clock eastern time.
This is an opportunity to interact directly with company representatives through a live video webcast, which you can find it at investors <unk> Dot com.
As well as increasing the number of these containers that customers are keeping in storage.
Once again, we'll have a brief presentation by the company.
Moving and storage operating expenses increased $44 million for the quarter as a percent of revenue we were even with the first quarter of last year.
Followed by a question and answer session.
Please feel free to submit questions to us early.
Through the Investor website are sending nodes Sebastian.
The largest components of the increase were personnel, which was up $20 million.
Or you can just submit them live during the webcast will be won't be good either way.
Liability costs were up 17, and we did see an increase in fleet repair and maintenance due to the increased size of the fleet that was up about $5 million.
With that I'd like to hand, the call back to our operator, Chloe to begin the question and answer portion of the call.
Thank you we will now begin the question answer session to ask a question you May Press Star then one on your Touchtone phone.
As of June end of June this year cash along with the availability from our existing corporate revolver at the moving and storage segment totaled $1 billion $191 million.
You see a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press the pound key.
We are holding our 19th annual virtual analyst and Investor meeting on Thursday August 21 at 11, a M at two o'clock eastern time.
Just a moment to compile the Q&A roster.
Okay.
Our first question comes from the line of Stephen Boston from Zacks. Your line is open.
This is an opportunity to interact directly with company representatives through a live video webcast, which you can find it at investors got U haul dot com.
Thank you and good morning.
Good morning.
Once again, we'll have a brief presentation by the company.
Yeah.
I had some questions specifically for Joe, but I also have one specifically for Sam.
Followed by a question and answer session.
Please feel free to submit questions to us early.
Through the Investor website are sending new Sebastian or you can just submit them live during the webcast will be won't be good either way.
<unk> My question is for Joe until the Investor Conference.
The top line is improving.
With that I'd like to hand, the call back to our operator, Chloe to begin the question and answer portion of the call.
<unk> expected and I had one specific question about U box, which I know Sam hedge.
Thank you well now begin the question first question you asked a question you May press alright.
U box once again has achieved double digit growth this quarter.
And it's through that tried and true formula of U haul that by adding capacity and then specifically in the case of U box, increasing warehouse space, along with the number of containers and the number of <unk>.
One on your touch on time.
Speaker, please pick up your handset before pressing.
So we draw your question please press the pound key.
Just a moment to compile the Q&A roster.
Okay.
Delivery equipment.
Okay.
Our first question comes from the line of Stephen Boston from Jefferies. Your line is open.
This is a growing area.
Assume.
Ultimately will be broken out as a segment as it reaches 10% of revenues.
Thank you and good morning.
Good morning.
How much potential do you still think there's left the new box.
Hum.
The question was specifically for Joe, but I also have one specifically for Sam.
It's.
Been growing.
The way my questions for Joe until the Investor Conference.
Do you think like 10% done at 25% done.
Is it just too early to tell.
The top line is improving like Joe expected and I had one specific question about new box.
Well thanks for the question Steve This is Sam talking.
I think you start off some wise observations.
I know Sam heads.
Of course, it's way too early to tell him on the more optimistic side.
U box once again has achieved double digit growth this quarter.
I don't see why there is any reason that you box couldnt be as big as U haul is today.
And it's through that tried and true formula of U haul.
Adding capacity and then specifically in the case of U box, increasing warehouse space, along with the number of containers and the number of <unk>.
<unk>.
I think we're just at the infancy I think you're you really can't start answering that question until you start to get some real clarity on.
Delivery equipment.
This is a growing area.
From the consumer.
If they understand with this product and service really is of course, we're so blessed with traditional U haul that.
Zoom.
Ultimately will be broken out as a segment as it reaches 10% of revenues.
If you're six or <unk> 96.
How much potential do you still.
You know exactly what you holidays and what it does and when you see it parked on the side of the road you know exactly what it is therefore, the customers and quite there the consumers and quite there with with the U box portable moving and storage model. When they do I think you'll really be able to answer. The question you have but but I think.
I think there is left in the U box.
It is.
Been growing.
Do you think you'd like 10% or 25% done or is it just too early to tell.
Well thanks for the question Steve This is Sam talking.
Thank you you start off some wise observations.
The market is quite large and as time goes on.
Of course, it's way too early to tell him on the more optimistic side.
You'll see it.
I don't see why there is any reason that you box couldnt be as big as is U haul is today.
Continue to grow as a pillar of fuel oil company.
Let me just ask it.
Slightly different way.
And.
I think we're just at the infancy I think you're you really can't start answering that question until you start to get some real clarity on.
Yeah.
Of the number of locations that you have.
Across the United States.
How many.
From the consumer.
<unk> functionality for U box.
If they understand with this product and service really is of course, we're so blessed with traditional U haul.
What they are the same questions sure. So it depends what you're defining as a U haul any of course most of the time and you can within the company, we look at our outlets, including our dealers.
If your <unk>.
Six or <unk> 96.
No exactly what new haul is and what it does and when you see it.
Parked on the side of the road you know exactly what it is therefore, the customers and quite their consumers and quite there with with the U box portable moving and storage model when they do I think you'll really be able to to answer the.
So if you want to make the calculation from that Youre looking at.
Somewhere between.
<unk>, 5% and 10%.
If youre looking based on company stores, Youre looking a little closer around half or so.
<unk>.
But I think it's market is quite large.
Needless to say it.
And as time goes on.
That's that's.
You'll see it.
Not necessarily.
Continue to grow as a pillar of few oil companies.
Assuming that you've got adequate build out of the U box product piggyback at those locations. So for example.
Let me just ask you.
Deferring.
Wei.
You take.
Yeah.
Rather large market like Phoenix, Youre still barely scratching the surface of the capability that we need to service the customer and.
The number of locations that you have.
Across the United States.
How many.
<unk> functionality for you Buck.
We're going to we're just going to have to keep building it out.
What their same questions sure. So it depends what you're defining as a <unk>.
<unk>.
If what you are trying to do is make a projection to say should this double triple quadruple tenex youre your youre going in the right direction.
<unk> haul any of course, most of the time and you gain within the company, we look at our outlets, including our dealers.
So if you want to make the calculation from that Youre looking at.
Yeah.
Alright. Thank you for taking my question and the other questions had to do with Joes experience because he has been.
Somewhere between.
<unk>, 5% and 10%.
If youre looking based on company stores Youre looking a little closer at around half.
Running the company quite a long time and wanted to get into some depreciation cycles in first and inflationary cycles were personnel costs are I'll say bids for the analyst comp.
So.
Needless to say it.
That's that's not necessarily.
Okay Steve.
Right.
Assuming that you've got adequate build out of the U box product piggyback at those locations. So for example.
Yeah.
We will be happy to answer those then.
Alright, Thank you for taking my question.
Youre welcome.
Our next question comes from the line of Steven Ramsey from Thompson Research Group. Your line is now open.
Or would you take.
Rather large market like Phoenix, you still barely scratching the surface of the capability that we need to service the customer and so.
Hi, Good morning, I wanted to start with.
Good morning, I wanted to start with U box.
So we're going to we're just going to have to keep building it out in and.
And I would just assume that transactions in U box is more associated with one weight boots are you able to see if you box one way moves are growing faster than that.
If what youre trying to do is make a projection to say should this double triple quadruple tenex youre.
Sure you are going the right direction.
Okay.
The rental segment, one way moves or said another way with one way transactions being up is that a rising tide for U box.
Alright. Thank you for taking my question and the other questions had to do with Joes experience because he has been <unk>.
Running the company I'm quite a long time and wanted to get into some of the depreciation cycles in first and inflationary cycles, where personnel costs are I'll save those for the analyst comp.
This is Jason I'll start and just set the scene with the.
The truck one way transactions trucking those have been.
Okay.
<unk>.
From flat to up just slightly up 10, or 20000 transactions in a quarter or so.
We'll be happy to answer those down.
Alright, Thank you for taking my question.
Youre welcome.
Yeah.
Sandra Juxtapose has experience with with U box, one way transactions.
Our next question comes from the line of Steven Ramsey from Thompson Research Group. Your line is open.
Yes U box one way transactions are are leading the way they are exceeding our truck rental transactions as a percentage.
Hi, Good morning, I wanted to start with.
Good morning, I wanted to start with U box.
As far as a rising tide I think they are decoupled in many ways I certainly don't look at the performance of the one way shipping of U box product.
And I would just assume that transactions in U box is more associated with one way boots are you able to see if you box one way moves are growing faster than the.
The rental segment, one way moves or said another way with one way transactions being up is that a rising tide for U box.
And and and juxtapose that against the truck rental numbers and say well, while we only have so much we can go we're capped or.
One number is dragging down the other I don't necessarily see it that way.
This is Jason I'll start just set the scene with the.
I think what you should expect is for U box.
The truck one way transactions truck those have been.
Performance as a percentage to exceed the truck rental gains that we're able to make there is there is little doubt of that.
From flat to up just slightly up 10, or 20000 transactions in a quarter or so.
Okay.
Okay. That's helpful and then.
Sam to juxtapose his experience with with U box, one way transactions.
I wanted to think about the margin profile of the business 35.
Yes U box one way transactions are are leading the way theyre exceeding our truck rental transactions as a percentage.
Virtually flattish year over year, even with moving transactions up and then storage and U box with a higher margin profile also growing faster can you maybe dissect what is causing.
Uh huh.
As far as a rising tide I think they are decoupled and in many ways I certainly don't look at the performance of the one way shipping of U box product.
Margin trends in the quarter or if it's better to reflect over the recent past and maybe the puts and takes to the company margin.
And and and and juxtapose that against the truck rental numbers and say well, while we only have so much we can go we're capped or.
Sure. This is Jason I'll start with that.
We put a new slide in the Investor deck this time around that.
One number is dragging down the other I don't necessarily see it that way.
This shows.
I think what you should expect is for U box.
Proxy for cash flow, which will be adjusted EBITDA, the EBITDA margin and then the.
Performance as a percentage to exceed the truck rental gains that we're able to make there is there is little doubt of that.
The share of equipment rental revenue.
Versus the share of storage revenue and we don't have U box revenue in there yet but.
Okay. That's helpful and then.
But the two newer revenue line storage.
Wanted to think about the margin profile of the business, 35% virtually flattish year over year, even with moving transactions up and then storage and U box with a higher margin profile also growing faster can you maybe dissect what is causing.
Which is strange calling that newer but that's newer.
Than the original equipment rental revenue.
Both of those when we include those in new projects. It has the effect of increasing the projected return now as you know and you've been to some of our facilities, you'll see how everything kind of intra inter acts and interrelated, it's very hard for us to two.
Our margin trends in the quarter or if it's better to reflect over the recent past and maybe the puts and takes to the company margin.
To break it out separately.
But we certainly have seen that.
Sure. This is Jason I'll start with that.
When we add more of each of those products to a location.
We put a new slide in the Investor deck this time around that.
Our profitability improves.
This shows.
[noise] proxy for cash flow, which will be adjusted EBITDA, the EBITDA margin and then to.
Okay. That's helpful and then maybe to think about the.
The share of equipment rental revenue.
Some of the dynamics playing out in the storage segment a lot of new.
Versus the share of storage revenue and you don't have U box revenue in there yet but.
Facilities and units in the total base.
But the two newer revenue line storage.
Maybe as a headwind to the margin profile of the slides in the last couple of quarters have been helpful to see that can you maybe talk about the glide path there.
Which is strange calling that newer but it's newer than than the original equipment rental revenue.
Both of those when we include those in new projects. It has the effect of increasing the projected return now as you know and you've been to some of our facilities, you'll see how everything kind of intra inter acts and interrelated, it's very hard for us too.
How units getting soaked up can be positive to margin certain thresholds.
That need to be hit too.
Elevate the margin within the storage business.
Yes.
To break it out separately.
Slide in the deck that we have that shows where future storage revenue was coming from there is there is a portion of that that shows <unk>.
But we certainly have seen that.
When we add more of each of those products to a location.
<unk> revenue from existing locations or what we call non same store locations as long as that haven't hit 90% in <unk>.
Our profitability improves.
That number taking it from where it is today to where it would be at 90% is somewhere it's going to be somewhere around $260 million.
Okay. That's helpful and then maybe to think about the.
Some of the dynamics playing out in the storage segment a lot of new.
Give or take by the time, we get there there is likely going to be rate increases that will be a little bit more.
Facilities and units in the total base.
Those are at locations, where we've opened.
Maybe as a headwind to the margin profile of the slides in the last couple of quarters have been helpful to see that can you maybe talk about the glide path there.
And the expense load has largely been recognized in our financial statements. So that additional revenue.
Yeah.
A very rough estimate will be maybe 80% of that give or take is going to flow to the bottom line.
How units getting soaked up can be positive to margin certain thresholds that.
At some locations that will be more than that at some of the newer locations that might not be all of that.
That need to be hit to elevate the margin within the storage business.
<unk>.
But as a general rule of thumb to give you a sense so.
Yes.
On the slide in the deck that we have that shows where future storage revenue is coming from there is there is a portion of that that shows.
A lot of the headwinds that we're facing right now on the EBITDA margin.
Or on the GAAP operating margin.
Storage revenue from existing locations or what we call non same store locations as long as that haven't hit 90%.
Our truck related.
It's.
And that number taking it from where it is today to where it would be at 90% is somewhere it's going to be somewhere around $260 million.
Okay.
The liability costs associated with the fleet.
<unk> seen an increase in the.
Give or take by the time, we get there there's likely going to be rate increases that will be a little bit more.
Severity of claims.
We're seeing more accidents I think the fleet is in really good condition as far as accidents go but the severity of those that were running into is a little bit more significantly we're building reserves backup.
Those are at locations, where we've opened and the expense load has largely been recognized in our financial statements. So that additional revenue.
And thats affecting the margin in that does hit earnings and EBITDA for both of those and then for the earnings cycle.
Yeah.
A very rough estimate will be maybe 80% of that give or take is going to flow to the bottom line.
At some locations there'll be more than that at some of the newer locations that might not be all of that.
Depreciation headwinds that we're facing we're going to have to work.
Through this.
But as a general rule of thumb to give you a sense so.
Cohort of trucks that.
Cargo vans, we purchased last two years and then.
Likely after this year the spend on the box truck fleet will begin to slow a bit.
A lot of the headwinds that we're facing right now on the EBITDA margin.
Or on the GAAP operating margin.
And then we should.
Peak on depreciation and then hopefully trend back down.
Our truck related.
Piano.
The liability cost associated with the fleet.
Okay. That's helpful. Jason and the last quick one for me.
We've seen an increase in the.
When looking at the pending and developed storage square footage currently at $14 8 million, that's been sliding down for a few quarters.
Severity of claims.
I think we're seeing more accidents I think the fleet is in real good condition as far as access go but the severity of those that were running into is a little bit more significantly we're building reserves back up.
A number that you had.
But to kind of gradually keep coming down over the next few quarters or is there a level of developed and pending square footage that you think it is a minimum level that we do not want to go longer.
And that is affecting the margin then that does hit earnings and EBITDA.
Both of those and then for the earnings cycle.
Depreciation headwinds that we're facing we're going to have to work.
Okay.
There certainly is an amount that we don't want to go under I don't think we're close to that right now.
Through this.
Cohort of trucks.
Cargo vans, we purchased last few years and then.
What we've been trying to do is slow the spend.
Likely after this year the spend on the box truck fleet will begin to slow a bit.
Not because we don't believe in self storage or not because we don't want to expand but because we want to be rational in our capital allocation and make sure that we have enough.
And then we should.
Peak on depreciation and then hopefully trend back down.
Enough to last us and with the way that the fleet has been chewing up some capital during this timeframe, we're pulling back a little bit on real estate spend.
Okay. That's helpful. Jason and the last quick one for me.
Looking at the pending and developed storage square footage currently at $14 8 million that's been sliding down for a few quarters is that a number that you had.
But you don't want to pull back too much where you have what happened to us during COVID-19, where we shut a bunch of stuff down and then it takes a while to start it back up and you get kind of this unusual amount.
But to kind of gradually keep coming down over the next few quarters or is there a level of developed and pending square footage that you think it's a minimum level that we do not want to go under.
If we could stay somewhere in the.
It's a four five to 6 million square foot range. Each year I think that's something that operationally, we've proven that we can handle and if we do that.
Spending is likely to continue to decrease.
Okay.
Okay.
There certainly is an amount that we don't want to go under I don't think we are close to that right now.
That's great color. Thank you.
Okay.
Okay.
What we've been trying to do is slow the spend.
Our next question is from <unk>.
From Wolfe Research your line is now open.
Not because we don't believe in self storage or not because we don't want to expand but because we want to be.
Hey, good morning, everyone and thank you for taking the question. So really just wanted to double click first on the <unk>.
Be rational in our capital allocation and make sure that we have enough.
Transaction volume desktop.
Enough to last us and with the way that the fleet has been showing up some capital during this timeframe.
<unk>, maybe slightly up in the quarter just wondering if you guys noticed anything in terms of.
Like from one month right.
We're pulling back a little bit on real estate spend.
Flat in the quarter, but the month to month trends like improving through the quarter or is that kind of pretty steady for the quarter and any color would be helpful.
But you don't want to pull back too much where you have what happened to us during COVID-19, where we shut a bunch of stuff down and then it takes a while to start it back up and you get kind of this unusual amount. It if we could stay somewhere in the.
All of our comparisons are going to be year over year because.
Say for five to 6 million square foot range. Each year I think that's something that operationally, we've proven that we can handle and if we do that.
Our business doesn't really.
Compare well month to month, so our best quarter for moving is really our second quarter.
Spending is likely to continue to decrease.
The second best would be the first quarter that we just finished and then it goes third quarter and the fourth quarters are worst so we're always comparing with how we did the year before because largely moving activity.
That's great color. Thank you.
Yeah.
Our next question is from <unk> from Wolfe Research. Your line is now open.
To look the same year over year so.
Hey, good morning, everyone and thanks for taking the question. So really just wanted to double click on the.
While I mentioned for July as we're again seeing.
Revenue increase from.
Our transaction volume desktop.
The rates that we're having to charge because our cost of doing business has gone up.
No flat, maybe slightly up in the quarter. Just wondering if you guys noticed anything in terms of sort of like a one month right.
But we havent yet seen traction on the.
On transactions and we're going through a process right now I mentioned that the.
Flat in the quarter, but at the month to month trends kind of was it like improving through the quarter or is it you know kind of pretty steady for the quarter any kind of any color would be helpful.
The fleet the size of the fleet has increased I think.
From last year were up maybe 5700 trucks from last quarter, we're up about 5000 trucks.
Sure all of our comparisons are going to be year over year because.
Our business doesn't really.
But were also up.
Compare well month to month, so our best quarter for moving is really our second quarter.
Close to 800 locations compared to last year.
Between dealer locations and our company locations.
The second best would be the first quarter that we just finished and then it goes third quarter and the fourth quarters are worse. So we're always comparing with how we did the year before because largely moving activity.
So we're going through the process, which is fairly difficult.
Placing this new equipment in places that we think is going to be productive and opening dealers in doing that.
Efficient fashion and.
To look the same year over year so.
That's what we're working on now now if that doesn't work out the way that we think it is we'll probably end up increasing the sales of trucks and reduce the size of the fleet, but right now we think theres opportunity.
What I mentioned for July as we are again seeing.
Revenue increase from.
Rates that we're having to charge because our cost of doing business has gone up.
To use these trucks.
To give you a sense of the the challenge that we're facing in the last two years.
But we havent yet seen traction on the.
On transactions and we're going through a process right now I mentioned that.
The number of locations that we've added is equal to the size of our our second largest truck competitor right. So.
Fleet the size of the fleet has increased I think from.
And opening that many locations and distributing trucks across them and getting customers and our team to PPL to route customers both locations.
From last year were up maybe 5700 trucks from last quarter, we're up about 5000 trucks.
But were also up.
As a bit of a challenge and that's what we're working through right now and we're working through it at the same time that we're investing quite a bit in the fleet.
Close to 800 locations compared to last year.
Between dealer locations and our company locations.
Our plan is that all of this is going to pay off in the years to come.
So we're going through the process, which is fairly difficult.
Got it got it.
Placing this new equipment in places that we think it's going to be productive and opening dealers in doing that.
Sorry about that.
Question, a little clearer.
The monthly trend as how did April year over year.
And our efficient fashion and that's.
May year over year and your year over year is that have you been on a year over year.
That's what we're working on now now if that doesn't work out the way that we think it is we will probably end up increasing the sales of trucks and reduce the size of the fleet, but right now we think theres opportunity.
Flat for <unk>.
Or has it been maybe improving on a year over year basis from April.
Thank you.
To use these trucks.
Got it okay. Good afternoon.
I want to stress that one didnt I.
To give you a sense of the the challenge that we're facing in the last two years.
So.
The revenue has been steadily up year over year, I would say that the transactions. We have we have some on waste and some off leaks and and we deal with the same issue that we've dealt with since the very beginning of the company and that is people tend to move at the end of the month.
The number of locations that we've added is equal to the size of our our second largest truck competitor.
So.
In opening that many locations and distributing trucks across them and getting customers and our team to PPL to route customers at both locations.
So you get this cluster of transactions at the end of the month and depending upon how the calendar falls from year to year you can see these weird oddities. So looking at it over a three months period to tend to flatten some of that out and what I would say is we still haven't got traction.
As a bit of a challenge and that's what we're working through right now and we're working through it at the same time that we're investing.
A bit in the fleet.
Our plan is that all of this is going to pay off in the years to come.
Got it got it and.
Sorry about that my question, a little clearer and that monthly trend as how did April year over year got a lot of it may year over year and your year over year is that a good thing.
You want to look at it month over.
Versus last year or for the three months that the traction still hasnt hasnt hit.
And I'm not seeing that in July yet either but it's not like we're far off theres. Some weeks that were up on transactions. So we're right there.
Flat for all three months or has it may be improving on a year over year basis from April.
Right.
Got it okay. Good afternoon, Yeah I.
Well, we're right there.
I want to stress that one didnt I.
Okay got it got it. Thank you that's helpful and then kind of shifting over to the storage slide sorry, Stephanie guys.
So.
The revenue has been steadily up year over year, I would say that the transactions. We have we have some <unk> from some off leaks and and we deal with the same issue that we've dealt with since the very beginning of the company and that is people tend to move at the end of the month.
This is why I think that segment getting hey, guys. Its.
Pushing for a lot more focus on segments that really want to act on that slide on the future.
Revenue coming out on why you guys.
So you get this cluster of transactions at the end of the month and depending upon how the calendar falls from year to year you can see these weird oddities. So looking at it over a three month period to tend to flatten some of that out what I would say is we still haven't got traction.
What's the future will look like on a revenue basis have you guys looked at it maybe on an NOI on EBITDA basis kind of what that.
Future pipeline is I know you guys don't disclose volume mix.
To get a sense.
However, you want to look at it month over.
That is the revenue number how that hits the bottom line.
Month versus last year or for the three months that the traction is still hasnt hasnt hit.
Yes.
I answered a question for Chris.
For Stephen just now.
Non same store locations that are already open.
And I'm not seeing that in July yet either but it's not like we're far off theres. Some weeks that were up on transactions. So we're right there.
The additional revenue somewhere around I would say, 80% of that should probably fall to the bottom line.
Alright there.
You're asking about the other ones that haven't opened yet those are tougher because as a whole has most of them have all of our product lines embedded in so I don't have.
Yeah.
Okay got it got it. Thank you that's helpful and then kind of shifting over to the storage slide I mean as far as Stefan you guys.
His wife's here. So I think that segment getting you guys are pushing for a lot more focus on segments that really want to act on that slide on the future you know.
A clear answer to that.
To give you on that because.
Breaking out storage.
Revenue as part of that.
Revenue coming out of line you guys.
No it's not.
That's all I hear anything on.
<unk>.
That future will look like on a revenue basis have you guys looked at it maybe on an NOI on EBITDA basis kind of what that.
That's fine So then I guess.
Another way maybe on the development.
The spending side of that.
How much.
Pipeline is.
The cost for you.
So as far as volume, but just wanted to get a sense if.
This pipeline.
That is the revenue number because you know how that hits the bottom line.
Looked at.
Great.
If we look back period, you did about $5 $5 billion of investment he brought 26 million square feet.
Yes.
I answer the question for Chris.
For Stephen just now.
Non same store locations that are already open.
And then space online, so that kind of backs into light.
But I'm not sure yet.
The additional revenue somewhere around say, 80% of that should probably fall to the bottom line.
Okay.
Alright.
Yes, I don't know if I would I would be here. This long aside allowed a bunch of $220 a foot storage.
You're asking about the other ones that haven't opened yet those are tougher because as a whole has most of them have all of our product lines embedded in so I don't have.
Yes.
So that on that slide.
A clearer answer to that.
Five 8 billion.
To give you on that because.
<unk> represents the amount that we spent in that five years. So it's not exactly thats not for the that doesn't represent.
Breaking out storage.
Revenue as part of that.
No I'd say no not at all.
Represent the 26 million square feet that went on and it represents a big portion of it but.
That's all I agree with you on on that side, so kind of I guess.
Said another way maybe on the development.
I would say theres two complicated factors to that calculation one is.
The spending side of that you know kind of how much.
Because we do all of this development on balance sheet. There is a certain amount that we spent there.
The cost for you.
That isn't yet productive right. We bought the properties we've started considerably of construction in progress, but theyre not renting rooms yet.
Likewise as I looked at your slide right in it.
Five year look back period, you did about $5 $5 billion of investment he brought 26 million square feet of new space on line, so that kind of backs into light.
For the last couple of years that numbers run about a $1 seven we're probably about a.
What are your thoughts, but I'm not sure yet.
One 1 billion $6 90.
That's a good proxy or what are the same point for it.
In.
Capital, we've invested that isn't really producing revenue right now and.
Yes, I don't know if.
That would be or the pharma side about a bunch of $220 a foot storage.
And I would say five years ago that number was probably closer to.
Yes.
$1 billion.
Yeah.
So then I would take $650 million out of.
So that on that slide five 8 billion.
The numerator because that really is extra money spent on assets that aren't productive yet.
<unk> represents the amount that we spent in that five years. So it's not exactly that's not.
And then the part that's a little also challenging.
That doesn't represent the 26 million square feet that went on and it represents a big portion of it but.
Figure out is that also includes building U box warehouse space.
I'd say, there's two complicating factors to that calculation one is.
And if you were to convert the amount of covered spaces that we've added the last five years to storage.
Because we do all of this development on balance sheet. There is a certain amount that we spent there.
Square foot because each one of those boxes.
That isn't yet productive right. We bought the properties we've started construction in progress, but theyre not renting rooms yet.
Is a five by storage room.
That's going to add somewhere between eight to 9 million square feet of self storage space.
For the last couple of years that number has run about $1 billion seven we're probably about a.
No.
And in reality, what the number could get too for our investment per foot should be much closer to say 150 a foot.
One 1 billion $6 90.
Long.
In.
Story to get to the short answer which is it should be about 150.
Capital, we've invested that isn't really producing revenue right now.
Okay got it got it Super helpful. And then I started last question for me I know you guys you know what I asked last quarter as well.
And I would say five years ago that number was probably closer to.
$1 billion.
Then I would take.
Yeah the only.
You guys did on these forced the moment you guys mentioned Eric of course, it's like I think it was like.
$650 million out of.
The numerator because that really is extra money spent on assets that aren't productive yet.
10% right. So it would be so just curious how you guys. What was that 10% number is that 10% on the one.
And then the part that's a little also challenging.
First square foot span.
To figure out is that also includes building U box warehouse space.
Are you just preference or is there.
Let's say you're using to calculate the 10%.
And if you were to convert the amount of covered spaces that we've added the last five years to storage.
Yes, that's going to be the Unlevered IRR. So you take your total investment in the property.
Therefore, because each one of those boxes.
And we're looking out.
Is a five by storage room.
I think it's seven to 10 years within capping it at the end of that timeframe and looking to see how it performs over that timeframe.
That's going to add somewhere between eight to 9 million square feet of self storage space.
So in reality, what the numbers should get too for our investment per foot should be much closer to say $150. That's a long.
If you were to try to convert that to a cap rate, it's probably going to be somewhere between 758.
Story to get to the short answer which is it should be about 150.
Okay Awesome Super helpful. Thanks, So much for taking my question.
A great day.
Okay got it got a super helpful. And then I started last question for me I know you guys you know what I asked last quarter as well.
You too thank you.
There are no further questions at this time I would now like to share on the conference back over to management for any closing remarks.
Yeah the only.
You guys get on these forced a moment you guys mentioned I mean of course, it's like I think it was like.
Well this is Jason <unk>.
Right. So it will be so just curious how you guys. Both up 1% number is that 10% on the one.
Hope everyone's just holding the questions for the annual Investor day, which is going to be in about two weeks.
Per square foot span.
If you have any any feedback in between please feel free to shoot to us otherwise we will.
And you just referenced or is that was there.
That figure using calculate the 10%.
We look forward to seeing you then thank you very much.
Yes, that's going to be the Unlevered IRR. So you take the total investment in the property.
This concludes today's conference call. Thank you for participating you may now disconnect.
And we're looking out.
I think it's seven to 10 years within capping it at the end of that timeframe and looking to see how it performs over that timeframe.
If you were trying to convert that to a cap rate, it's probably going to be somewhere between 758.
Okay Awesome Super helpful. Thanks, So much for taking my question.
A great day.
You too thank you.
There are no further questions at this time I would now like to share the conference back over to management for any closing remarks.
Well this is Jason I hope everyone's just holding the questions for the annual Investor day, which is going to be in about two weeks.
If you have any any feedback in between please feel free to shoot to us otherwise we will.
We look forward to seeing you then thank you very much.
This concludes today's conference call. Thank you for participating you may now disconnect.
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