Financial Data and Key Metrics Changes - 2025 Same Store NOI results matched initial guidance, but the path to those results was not straightforward, with stronger rental growth in the first half followed by a deceleration in the latter half of the year [4][5] - The company purchased approximately $206 million of its stock during Q4 2025, totaling $300 million in stock purchases for the year [10] - The normalized FFO per share for 2025 was $3.99, with a guidance midpoint for 2026 at $4.08, reflecting a 2.25% improvement [27] Business Line Data and Key Metrics Changes - The blended rate for Q4 was 0.5%, driven by a strong renewal rate of 4.5%, while new lease rates were negative across most markets except San Francisco [14] - Other income growth was slightly below expectations due to less income from the bulk internet rollout and bad debt net improvement [14] Market Data and Key Metrics Changes - Coastal markets, particularly New York and San Francisco, showed strong performance, while Southern California markets and expansion markets experienced muted growth [14][21] - The company expects a significant decline in competitive new supply, with deliveries projected to decrease by 35% or about 40,000 units in 2026 compared to 2025 [11][12] Company Strategy and Development Direction - The company remains committed to a diversified portfolio strategy, investing in renovations, acquisitions, and development activities selectively [9] - The focus is on maximizing shareholder returns through a well-earning renter portfolio across various metropolitan areas [7] - The company plans to sell properties with lower forward return profiles and use proceeds for stock buybacks, enhancing forward growth rates [10] Management's Comments on Operating Environment and Future Outlook - Management noted heightened policy and geopolitical uncertainty impacted consumer and employer confidence, leading to a slowdown in job and rent growth [5] - The outlook for 2026 includes a broad range of possible outcomes for the U.S. economy, with expectations for steady demand and improved supply conditions [6][12] - The company anticipates a return to a more normalized peak leasing season due to reduced competitive supply and stable job growth [17] Other Important Information - The company returned over $1.3 billion to shareholders in 2025 through dividends and stock repurchases [11] - The company expects Same Store expense growth in 2026 to range between 3%-4%, with controllable expenses remaining stable [25] Q&A Session Questions and Answers Question: Can you talk about the assets you're selling and the fund that repurchases? - The assets being sold are typically older, non-core properties with higher CapEx loads, which are expected to improve the growth rate of the existing portfolio [35] Question: Can you provide more color on your comment around the renewals at 4.5%? - The renewal quotes are around 6%, with confidence in landing at 4.5% due to a strong centralized process and low economic hardship among residents [42][44] Question: On the 2026 supply outlook, can you give us some background on how you come up with your competitive supply set? - The company uses both data from providers and a boots-on-the-ground approach to evaluate competitive supply, confirming a meaningful decline in 2026 [46][47] Question: Are you factoring in regulatory costs when assessing different markets? - Yes, the company considers litigation costs and regulatory conditions in its underwriting and portfolio allocation decisions [51][53] Question: What is the expected cadence of Same Store revenue growth through the year? - The second half of the year is expected to be stronger than the first, primarily due to reduced competitive supply [83]

"We delivered positive same-center sales growth this quarter, marking a clear inflection point for the business," said Thomas Shannon, Chief Executive Officer and Founder of Lucky Strike Entertainment. "Performance was driven by sustained strength in walk-in retail and league play, increased marketing investment to expand brand awareness and build momentum for the remainder of the year, and meaningful progress rebuilding our Events business. Same store Event sales turned positive in January 2026 for the fir ...

Financial Performance - Total Revenue increased by 40% from $1154614 thousand in FY24 to $1201333 thousand in FY25[38] - Same Store Revenue decreased by 37% from $1029251 thousand in FY24 to $990678 thousand in FY25[38] - Adjusted EBITDA increased from $361497 thousand in FY24 to $367687 thousand in FY25, with margins of 313% and 306% respectively[43] - Net loss was reduced from $83581 thousand in FY24 to $10022 thousand in FY25[43] Acquisitions and Capital Deployment - The company deployed $700 million of capital into acquisitions over the past three years[23] - Acquired AMF for $310 million in 2013, leading to an estimated value creation of $13-$15 billion[22] - Acquired Brunswick for $260 million in 2014, reducing the purchase price to $60 million after a Sale Leaseback transaction[22, 23, 26] Operational Metrics - The company has 370 operating locations as of August 2025[25] - The company owns 75 properties with an estimated value between $600 million and $700 million[35] - The company sold 260000 Summer Season Passes in FY25[20]

Financial Data and Key Metrics Changes - The company reported a solid second quarter with key performance indicators exceeding expectations, with a trough to peak occupancy growth of 190 basis points compared to 180 basis points last year [11] - Net effective rates for new customers increased by 28.3% compared to 15% in 2024, indicating constructive rate trends [11] - Same store revenue growth was down 0.5% year over year, with average occupancy for the same store portfolio down 80 basis points to 90.6% during the quarter [14][15] - FFO per share as adjusted was reported at $0.65, at the high end of guidance [16] Business Line Data and Key Metrics Changes - The company added 30 stores to its third-party management platform, bringing the total to 873 stores at quarter end [16] - Same store operating expenses grew by 1.2% over last year, reflecting strong expense controls [15] Market Data and Key Metrics Changes - Urban markets along the Acela Corridor and stores in Chicago continued to perform well, while markets in the Sunbelt, particularly Florida and Arizona, lagged due to reliance on housing mobility [12] - The New York MSA showed solid sequential acceleration in net rental income, with boroughs leading the way due to reduced new supply and strong consumer demand [13] Company Strategy and Development Direction - The company expects occupancy and move-in rates to approach parity by the end of the year, with a focus on improving operational trends through 2025 [13] - The company is evaluating acquisition opportunities but has not found compelling risk-adjusted returns in the current market [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged risks of volatility due to ongoing governmental and monetary policy decisions but expressed confidence in continued improvement in operational trends [13] - The company anticipates that same store revenue growth will be slightly more negative in the third quarter but expects improvements in the fourth quarter [19] Other Important Information - Balance sheet metrics remain strong with net debt to EBITDA at 4.7 times [16] - The company is focused on issuing long-term unsecured debt as it approaches the maturity of its senior unsecured notes [16] Q&A Session Summary Question: What were the assumptions at the top end of revenue guidance? - Management indicated that the top end assumed stronger overall demand, which has not materialized, leading to a narrowing of expectations [22] Question: Can you provide color on the New York boroughs and Northern New Jersey? - Positive trends in net rental income were noted, with Northern New Jersey gradually improving as supply is absorbed [26] Question: How does the 5% customer churn affect recovery? - Management explained that even with good months, the 5% churn means it takes time for improvements to reflect in revenue [32] Question: What is the outlook for the transaction market? - The company noted an increase in deal volume but remains cautious about pricing and risk-adjusted returns [35][102] Question: What are the expectations for same store revenue in the third quarter? - Management indicated that timing and volatility from previous adjustments would impact revenue, but overall trends are positive [49] Question: How are operating expenses trending in Austin? - Operating expenses were impacted by taxes and supply pressures, with a difficult comp from the previous year [70] Question: What is the appetite for acquisitions? - The company is focused on high-quality assets in top markets but is currently not seeing attractive pricing for acquisitions [105]

Financial Data and Key Metrics Changes - Same store occupancy reached 94.6%, up 60 basis points year over year and 120 basis points sequentially from the first quarter [4] - Flat same store revenue growth in the quarter, with positive year over year rate growth for new customers for the first time since March 2022 [4][11] - Core FFO guidance maintained at $8.15 per share, with same store revenue growth anticipated between negative 0.5% and positive 1% for the full year [7][13] Business Line Data and Key Metrics Changes - Completed one acquisition for $12 million and bought out two joint venture partners' interests in 27 properties for $326 million [5] - Bridge loan program generated $158 million in new originations, while third-party management program added 93 stores, expanding the managed portfolio to 1,749 stores [5][6] Market Data and Key Metrics Changes - Geographic diversification continues to benefit the portfolio, with growth markets offsetting softer conditions in regions affected by new supply or emergencies [6] - New customer rates improved year over year by over 2%, indicating positive trends in July [17] Company Strategy and Development Direction - The company is focused on balancing pricing and occupancy to maximize revenue while pursuing strategic growth to enhance long-term shareholder value [8] - A multichannel approach combining opportunistic acquisitions and capital-light activities is being employed to create value regardless of market conditions [6] Management's Comments on Operating Environment and Future Outlook - Management noted that while near-term revenue growth remains muted, operational discipline and investment strategy position the company well to navigate current conditions [8] - The company is optimistic about gradually improving fundamentals and expects potential acceleration in revenue growth in the second half of the year, particularly in the fourth quarter [13][31] Other Important Information - Same store expenses increased by 8.6%, primarily due to higher property taxes in certain states [12] - The company maintains a strong balance sheet with 89% of debt at fixed rates and a weighted average interest rate of 4.4% [12] Q&A Session Summary Question: Update on street rates and occupancy trends - Occupancy remained flat at 94.6% in July, with new customer rates up over 2% year over year [17] Question: Insights on net rental rate growth - Minor headwinds in LA, but the primary driver of net decrease is the move-out activity [21] Question: Comments on gradual progress and market performance - Positive trends in customer rates are expected to compound and improve revenue in the fourth quarter [19][25] Question: Performance of the LSI portfolio - The LSI portfolio is performing as expected, with rates improving faster than Extra Space rates [27] Question: Expectations for expenses and property taxes - Anticipated deceleration in expense growth in the second half of the year [39] Question: Demand and market health - Demand is steady, with occupancy levels indicating a healthy market despite challenges from new supply [41] Question: Insights on bridge loan products and repayments - Good demand for bridge loan products, with no imminent paybacks from preferred holders [47] Question: Competitive dynamics and acquisition strategy - The company remains active in evaluating acquisition opportunities but is disciplined regarding pricing [75] Question: Markets with easing supply headwinds - Markets like Portland, Seattle, Chicago, and Denver are seeing easing supply pressures, which is expected to improve revenue [81] Question: Third-party management program performance - Strong growth in the third-party management business, with new partners contributing to expansion [85] Question: Impact of AI on customer behavior - Increased use of AI in customer inquiries, leading to higher conversion rates on the website [71] Question: Future earnings growth expectations - Improvement in rate, moderation of vacates, and expiration of state emergencies are expected to aid recovery [109]