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| Statement |
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| As Joe noted, this marks our eighth consecutive quarter of double-digit same-store NOI growth |
| Spenser Allaway As noted in your opening remarks, you had really impressive rental rate growth in the quarter |
| Yes, obviously, we're very pleased with the quarter results |
| And I think we're continuing to see pretty good website traffic growth |
| This marks the eighth straight quarter of double-digit same-store revenue and net operating income growth |
| As the environment normalizes, our solid performance has remained broad-based with 25 of our top 2040 markets achieving 9% or greater revenue growth |
| These results highlight the value of our portfolio strategy over the past few years, which has allowed us to capitalize on strong regional trends |
| We're pretty pleased with what we're seeing |
| Our customer base continues to show resilience with 49% of our customers having stayed with us 2 years or more |
| Yes, I mean, for us, our customer retention continues to be really positive |
| I think we were very pleased |
| But right now, I think we felt comfortable sticking with what we have out there, feel good about what we have and feel we should be able to achieve that |
| I am pleased to report we delivered another strong quarterly performance across all segments of our business |
| I am very proud of what we have all achieved together and I'm incredibly excited about the opportunities ahead |
| So we think those are really good indications of the resilience and stickiness of the self-storage customer for us and likely the entire space |
| The strong adjusted FFO performance was a result of robust same-store results and acquisition performance |
| Q1 from the move-in side was -- it's certainly an interesting quarter |
| First quarter same-store revenue increased 10.5% over the first quarter of 2022, primarily driven by a 13.6% growth and achieved rates over last year |
| It's early in May, but we're seeing some nice month-to-month continued growth in street rates to pick up another 2% or so |
| We typically try to get most of them done in the first half of the year, and we’re on track with that and feel good about the results |
| I mean, very strong January |
| Pleased with what we're seeing in early, I would say, last week or so in terms of rate and move-in volume activity |
| And so a little bit higher than what we had certainly thought, but in a good way, was that 13.6% year-over-year growth and achieved rates which gave us a little bit more of a beat to the upside coming out of our same-store pool |
| So early signs are strong |
| I think we are kind of pleased with what we're seeing so far |
| The net effect of that same-store revenue and expense performance was a 140 basis point expansion and quarterly same-store net operating income margin to 71.5%, resulting in year-over-year growth in same-store NOI of 12.8% for the first quarter |
| Going back to the comments we said a few minutes ago, the self-storage consumer remains very resilient and sticky, and the ability to absorb ECRI, those rate increases, very much remains |
| So I like that -- so we like that trade because we've commented earlier on the stickiness, the resilience of our customer base |
| And we're seeing some nice indications |
| So the Phoenix, Florida's West Coast, again, doing very, very well for us, kind of separate themselves a bit from some of the other markets such as the Northeast |
| Statement |
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| And the challenge continues to remain for us and everybody, the conversion of that traffic growth into true reservations |
| The backdrop being theoretical crisis in the banking world and March just being a challenging month from an economic perspective |
| And then consistent with what you heard from the other REITs, it's certainly move-in volume slowed down in February and March |
| As we kind of said earlier, Michael, I mean, we know March was kind of a challenging month for the environment, given the backdrop of what was happening outside the storage space |
| As we look at move-outs going from March to April and what we saw in April, move-outs are actually going down |
| So I think a lot of people saw just general slowness in March |
| But year-over-year, still down about 14%, 15% range |
| They're down 4.5% month-over-month, comparing March to April |
| That's a really tough, tough comparison on a year-over-year basis |
| Sorry if I missed this, but quarter end was down about 30 basis points from the quarter average, and I was just curious if that was anticipated |
| And kind of expected, given what's going on in the economy and housing that may be up and down a little bit, but nothing that's worrying us right now |
| Joe Saffire Yes, the actual asking rate, street rates, Ki Bin, were down for the quarter, about 14% |
| Now we still had a record quarter, but we saw that slowdown in February, March |
| As I said in my opening -- looking at the first question, pleasantly surprised with move-outs being down year-over-year in April, which is a nice thing to see |
| But yes, a little softening in the quarter in Vegas and Phoenix, to call them out |
| When I look at some of your markets, right, Atlanta, Vegas, Phoenix, I mean, occupancy drops were -- I think it was like 400 bps or so year-over-year |
| No, I mean very much -- yes, we expect through the course of Q1 that occupancy was going to come down a little bit as we pushed on rates and expected those move-outs and then March happened to be flat |
| But nothing too significant |
| Michael Goldsmith Guys, did you see any price sensitivity of the customer during the quarter? Clearly, right, there was a bit of a slowdown in March |
| But nothing unusual right now |
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