Financial Data and Key Metrics Changes - The company reported a debt to EBITDA ratio of just over 1 times and fixed charge coverage around 8 times, with over $700 million in cash on the balance sheet, indicating a strong financial position to capitalize on potential opportunities [25][70]. - April rent collections were consistent with the prior year, with approximately 95% of April rent collected, reflecting stability in the customer base [37][20]. Business Line Data and Key Metrics Changes - Move-in activity decreased by 17% in April, despite a 20% reduction in rental rates aimed at driving volume [32][33]. - Move-out volumes were down 9% in April, indicating a potential delay in customer transitions due to the pandemic [34]. Market Data and Key Metrics Changes - The Northeast region experienced slower move-in rates compared to other regions, while the West Coast and Texas showed more stable move-in volumes, albeit still down [39][40]. - Overall search volumes and inbound sales calls decreased by 25% and 7% respectively in April, reflecting reduced customer engagement [32]. Company Strategy and Development Direction - The company emphasized its focus on safety and customer service during the pandemic, implementing contactless rental options and supporting frontline employees [10][11]. - The management indicated a readiness to capture potential acquisition opportunities arising from distressed assets in the market, particularly as some owners may struggle due to high debt levels [23][25]. Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the predictability of the current environment, noting that the pandemic presents unique challenges compared to previous economic cycles [17][21]. - The company remains optimistic about the resilience of its product type, citing historical performance during economic downturns [18][20]. Other Important Information - The company has paused existing tenant rent increases through the second quarter, reflecting a strategic decision to support customers during the pandemic [42][43]. - Capital spending has been adjusted from approximately $250 million to $175 million for the year, focusing on essential upgrades and maintenance [92][94]. Q&A Session Summary Question: Can you discuss the stability of the sector amidst COVID-19? - Management acknowledged the unique challenges posed by the pandemic but highlighted the ongoing demand for self-storage, with 82,000 customers moved in during April, albeit down from previous months [18][20]. Question: What is the current state of the balance sheet and opportunities? - The balance sheet is strong, with a debt to EBITDA ratio of just over 1 times and significant cash reserves, positioning the company well for potential acquisitions [25][70]. Question: How did occupancy and move-in trends perform in April? - Occupancy at the end of April was up 30 basis points, but down year-over-year when accounting for units that may have been auctioned previously [87]. Question: What are the trends in different regions? - The Northeast has seen slower move-in rates, while the West Coast and Texas have held up better, with some markets requiring rental rate reductions to drive volume [39][40]. Question: How is the company managing employee compensation during the pandemic? - The company has increased hourly wages and provided additional support to employees, reflecting a commitment to frontline workers during challenging times [44][56]. Question: What is the company's stance on share buybacks? - The company has authorization for stock buybacks and is considering this as part of its capital allocation strategy, particularly in light of potential acquisition opportunities [83].

Financial Data and Key Metrics Changes - The company reported a steady revenue growth range between $1.2 million to $1.5 million over the last few quarters, with expectations for similar performance in Q2 2019 [9][10] - Move-in rates decreased by 1% in Q1, marking the best performance in move-in rates seen in some time, while street rates increased slightly by over 1% [15][17] - The company experienced a modest deterioration in rent roll down, but noted it was one of the better performances in rent roll down deceleration [15] Business Line Data and Key Metrics Changes - The company observed good operating trends with consistent contract rent growth and occupancy through the quarter, supported by a strong labor market [10][11] - The marketing spend increased year-over-year, driven by a competitive environment and the need to acquire customers in markets impacted by new supply [35][36] Market Data and Key Metrics Changes - The company noted a commanding year of deliveries in 2019, with expectations of 400 to 500 properties and approximately 30 million square feet of new supply [21][22] - Certain markets like Washington D.C. and Chicago showed improved occupancy trends, with occupancy up 180 basis points and 160 basis points year-over-year, respectively [38] Company Strategy and Development Direction - The company is focusing on navigating through new supply in various markets and is optimistic about the traction and capabilities being developed [14] - The company is actively pursuing acquisitions, having exceeded acquisition volume from all of 2018 in the early part of 2019, including properties acquired out of bankruptcy [24][25] - The company is rolling out a fifth-generation reinvestment program, with an anticipated capital investment of approximately $100 million in 2019, aiming to enhance properties across its portfolio [75][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue trends for 2019, particularly as the company enters the seasonally busy move-in period [13] - The management highlighted that while there are challenges in certain markets due to new supply, they are seeing resilience in demand and occupancy gains in others [20][90] - The company expects to see inflationary pressure on payroll costs moving forward, but is implementing strategies to maintain productivity [84][85] Other Important Information - The company has issued both preferred and bonds as financing tools, maintaining a strong balance sheet with approximately $600 million in cash available for growth [64][108] - The company is seeing a competitive increase in customer acquisition costs, with cost per click up in the double digits [70] Q&A Session Summary Question: Revenue growth outlook amidst new supply - Management noted steady revenue growth and positive customer trends, with expectations for continued performance into Q2 2019 [9][10] Question: Broader views on supply for 2019 and 2020 - Management indicated no change in outlook, with 2019 expected to see significant deliveries, but noted a shift in supply dynamics in certain markets [21][22] Question: Marketing expenses and their impact - Management confirmed increased marketing spend is a response to competitive dynamics, with positive demand response observed [35][36] Question: Development pipeline activity - Management clarified that while the development pipeline decreased, it was due to timing rather than a slowdown in activity, with ongoing redevelopment efforts [41][42] Question: Balance sheet and financing strategy - Management expressed a preference for long-term financing through preferreds and bonds, with no immediate plans for short-term debt [62][108]

Public Storage (NYSE:PSA) Q4 2018 Results Conference Call February 27, 2019 1:00 PM ET Company Participants Ryan Burke - Vice President of Investor Relations Joe Russell - Chief Executive Officer Tom Boyle - Chief Financial Office Conference Call Participants Ronald Kamdem - Morgan Stanley Todd Thomas - KeyBanc Capital Markets Smedes Rose - Citi Ki Bin Kim - SunTrust Eric Frankel - Green Street Advisors Mike Mueller - JPMorgan Jonathan Hughes - Raymond James Operator Ladies and gentlemen, thank you for stan ...