Core Viewpoint - StorageVault Canada Inc. reported strong second quarter results for 2025, highlighting a 6.6% growth in same-store revenue and a 5.2% increase in net operating income (NOI), alongside a 5.4% rise in adjusted funds from operations (AFFO) per common share, despite sector challenges [1][2][3] Financial Performance - Revenue for Q2 2025 reached $83.5 million, up from $74.1 million in Q2 2024, marking a 12.7% increase. NOI grew to $55.2 million from $49.9 million, a 10.6% increase [2][3][4] - For the first half of 2025, revenue increased to $159.8 million from $145.5 million, a 9.8% rise, while NOI grew to $102.9 million from $94.2 million, a 9.2% increase [6][7] - Funds from operations (FFO) for Q2 2025 were $20.3 million, a 3.4% increase from $19.7 million in Q2 2024. AFFO was $22.9 million, up 3.0% from $22.3 million [3][4][7] Operational Insights - The company experienced operational and interest expenses related to lease-up stores acquired in fiscal 2024, which impacted FFO and AFFO results. However, it anticipates an additional annual NOI of $8.3 million from these acquisitions over the next three years [4][10] - The company is focused on maintaining cost control while maximizing revenues, NOI, and free cash flow, and plans to be disciplined in asset purchases [1][10] Dividend Announcement - StorageVault announced a 0.5% increase in its Q3 2025 dividend to $0.002976 per common share [9] Strategic Focus - The company aims to own and operate storage facilities in top Canadian markets, with a strategy centered on acquisitions, organic growth, and expansion of existing stores and services [10][19]

Strategic Initiatives and Internalization - NSA sold a $540 million portfolio of 71 non-core assets to a private buyer[12] - NSA contributed 56 assets valued at $346.5 million into a new joint venture (2024 JV)[12] - A new joint venture (2023 JV) was formed with $400 million of committed equity capital for acquisitions, implying $1 billion of buying power with leverage up to 60%, and acquired 18 properties totaling approximately $148 million YTD[12] - Since launching the program in 2022, NSA repurchased 18.2 million common shares totaling $675 million, retiring 12% of total common shares and OP units outstanding[12] - NSA internalized its PRO structure, effective as of July 1, 2024, acquiring management agreements, intellectual property, and tenant insurance program rights for $94.9 million, consisting of 1,548,866 OP units and $32.6 million in cash[13] Financial Performance and Portfolio - NSA's total enterprise value is $10.3 billion[55] - Q3 2024 same store NOI growth was -5.3% year-over-year[55] - Q3 2024 core FFO/share growth was -7.5% year-over-year[55] - NSA's dividend rate has grown 73% over the past five years (Q4 2024 vs Q4 2019)[72] Market Position and Growth Strategy - NSA defines the Sunbelt as the following states: AL, AR, AZ, CA, FL, GA, LA, MS, NC, NM, NV, OK, SC, TN and TX, and 66% of NSA's stores are in the Sunbelt[59, 60]

Investment Rating - The report maintains a Neutral rating for Big Yellow (BYG.L) with a 12-month price target of 1,110p, implying a 12.5% upside from the current price of 987p [1]. Core Insights - Revenue growth is expected to decelerate, with occupancy forecasted to remain stable at around 80.3% to 81% for FY26E and FY27E, compared to 79.1% in FY24/25. Rate growth has moderated to 3.2% year-on-year, down from a peak of 8.6% [2][3]. - The balance sheet is solid, with a net debt to EBITDA ratio of 3.1x, an interest coverage ratio of 6.1x, and a loan-to-value ratio of 12.8%, the lowest in the sector. The development pipeline includes 14 sites, with 9 under construction, expected to generate a net operating income (NOI) of £36.6 million [3]. - Valuation appears fair, trading at a 6.3% earnings yield, above its long-term average of 4.6%, and at a 31% discount to net tangible assets (NTA), below its long-term average of 0% [4]. Revenue and Earnings Forecast - Revenue is projected to grow from £177.8 million in FY25 to £216.5 million in FY28, with adjusted EPS estimates for FY26E to FY28E showing minimal changes of 0% to -2% [1][14]. - The forecasted EPS for FY26E is 59.55p, with a dividend yield expected to increase from 4.2% in FY25 to 5.2% in FY28 [11][14]. Financial Metrics - The report highlights that the average net achieved rent per square foot has declined to 3.2% year-on-year, down from a peak of 8.6% [20]. - The company’s leverage is noted to be the lowest among its peers, with a net debt to property value ratio of 13% [22]. Market Context - The demand environment remains subdued, with forward demand indicators showing a 3% year-on-year decline in prospect numbers for FY24/25 and a decrease in Google searches for self-storage options [2][18]. - The broader UK economic context is characterized by low growth and global macroeconomic uncertainty, which may continue to impact occupancy and revenue growth [2][25].

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $210.5 million, a decrease of 17.3% compared to Q1 2024 [8][13] - Adjusted EBITDA for the quarter was $38.4 million, down 42.1% year-over-year, resulting in an adjusted EBITDA margin of 18.2%, a decrease of approximately 790 basis points from the prior year [15] - Adjusted net income was $17.7 million, a decrease of 51.6% from the previous year, with adjusted EPS at $0.13 [16] Business Line Data and Key Metrics Changes - The self-storage segment saw a revenue decline of 23.1%, attributed to reduced volume due to economic uncertainty [8][13] - New construction revenues decreased by 25.5%, primarily due to project delays linked to high interest rates [13] - The R3 segment experienced a revenue increase of 19.3%, although retail big box conversions and facility expansions were down nearly 50% [13][15] - The international segment's revenues increased by $6.5 million or 44.2% compared to the prior year, benefiting from normalizing market conditions [14] Market Data and Key Metrics Changes - The company noted ongoing macroeconomic volatility impacting customer liquidity and capital deployment [6][9] - The backlog and pipeline showed growth despite market uncertainty, indicating stability in demand for self-storage solutions [7][20] - Tariff impacts are expected to be low single-digit millions for 2025, with potential ongoing annual impacts estimated at $10 million to $12 million beyond 2025 [11][12] Company Strategy and Development Direction - The company is focused on operational excellence and disciplined capital allocation while investing for long-term success [6][7] - A cost reduction plan is in place, expected to yield annual pre-tax savings of approximately $10 million to $12 million by the end of 2025 [10][15] - The company anticipates a shift in customer focus towards optimizing and upgrading existing properties rather than new construction [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the self-storage industry, citing strong underlying demand drivers [12][20] - The company expects results to strengthen in the latter half of 2025, with an increase in R3 project activity [18][19] - Management acknowledged the challenges posed by high interest rates but noted that project timelines are beginning to normalize [26][49] Other Important Information - The company generated cash from operating activities of $48.3 million and free cash flow of $41.9 million in the quarter, representing a free cash flow conversion of 170% of adjusted net income [16][17] - The company repurchased 600,000 shares for $5.1 million during the quarter, with $16.3 million remaining on its share repurchase authorization [17][18] Q&A Session Summary Question: What is the latest on project delays and order activity in the pipeline? - Management noted that projects are moving through the pipeline, with steady growth in both orders and backlog since the beginning of the year [26][28] Question: How is pricing being affected by tariffs and steel inflation? - Management indicated that pricing impacts are expected to blend into the year, with Q1 not as affected due to existing inventory [29][30] Question: What is the expected cadence of cost savings from structural reductions? - Management expects to reach a full run rate for cost savings by the end of Q2, with various initiatives in place to drive these savings [53][54] Question: How is the R3 segment performing and what are the expectations for retail conversions? - Management observed an increase in R3 project activity and expects steady state performance in retail conversions moving forward [40][41] Question: Are there signs of stabilization in the commercial segment? - Management confirmed stabilization in the commercial segment, with growth in certain product lines, although the commercial sheet door sector remains depressed [47]

Financial Data and Key Metrics Changes - Core FFO per share for Q1 2025 was reported at $0.54, a 10% decline from the prior year due to decreased same store NOI and increased interest expense [11] - Same store revenues declined by 3%, driven by a 190 basis point decrease in average occupancy and a 1% decrease in average revenue per square foot [11][12] - Expense growth was 3.7%, primarily due to increases in marketing, repairs and maintenance, and utilities, partially offset by a decrease in personnel costs [11][12] Business Line Data and Key Metrics Changes - The existing customer base remains healthy, with a successful ECRI program and a length of stay above historical averages [6] - Contract rates increased approximately 5% in April compared to Q1 levels, while occupancy increased by 20 basis points to 83.8% [7][11] - Same store NOI growth was negative 5.7%, but showed sequential improvement from the previous quarter [12] Market Data and Key Metrics Changes - Portland and Houston markets showed positive revenue growth, with Portland being a top performer due to successful pricing and ECRI program implementation [8][10] - The company closed on three assets totaling approximately $40 million and sold two properties for $10 million during the quarter [9] Company Strategy and Development Direction - The company is focused on operational improvements and realizing benefits from consolidated operating platforms and upgraded marketing tools [6][10] - There is a disciplined approach to acquisitions amidst economic uncertainty, with expectations for more transactions in the coming months [9] - The self-storage sector is viewed as resilient, with significant investor interest demonstrated by recent IPOs in the sector [10] Management's Comments on Operating Environment and Future Outlook - Management believes they have found a trough in fundamentals and are encouraged by the trajectory of contract rents and improving supply outlook [9][10] - The company expects a moderately better spring leasing season than last year, with improving pricing power and occupancy through summer months [16] - Management remains cautious about the impact of economic conditions and tariffs but has not seen direct effects on business so far [9][10] Other Important Information - The company has no debt maturities in 2025 and a current revolver balance of $444 million, providing approximately $500 million of availability [13] - New disclosures in the supplemental package include contract rent per square foot for in-place customers and move-ins/move-outs to assist with modeling [15] Q&A Session Summary Question: Can you provide perspective on the increase in contract rates and occupancy? - Management noted sequential improvement in contract rates and occupancy, with positive trends in move-in rates and overall revenue maximization efforts [18][19] Question: What are the expectations for revenue growth in the second half of the year? - Management indicated that while the second quarter is expected to be negative for revenue and NOI year-over-year, they anticipate positive growth in the back half of the year [26][27] Question: How are promotions and discounts trending for new tenants? - Management confirmed that concessions remain within expected ranges, with a slight increase in promotional discount usage to attract new tenants [56] Question: What is the current state of the transaction market? - Management reported steady deal flow and a disciplined approach to acquisitions, with expectations for material movement on dispositions [41][44] Question: How is the company addressing occupancy challenges? - Management stated that vacate activity remains muted compared to last year, and they are focused on balancing revenue and occupancy strategies [70][71] Question: What are the current demand drivers for self-storage? - Management highlighted various demand drivers, including transitions, small business needs, and residential storage requirements, while noting challenges due to low home sales [96][98]

Financial Data and Key Metrics Changes - The company reported FFO per share of $0.64, which was a penny above the high end of guidance [6][10] - Same store revenue growth decreased by 0.4% year over year, an improvement from a decline of 1.6% in the previous quarter [8][10] - Average occupancy for the same store portfolio was down 50 basis points to 89.5%, narrowing from a decline of 120 basis points in the fourth quarter [9][10] - Same store operating expenses grew by only 0.6% year over year, better than expectations [10][12] Business Line Data and Key Metrics Changes - The company closed on the acquisition of the remaining 80% interest in a joint venture, acquiring a portfolio of 28 early-stage lease-up stores [11] - The third-party management platform added 33 stores, ending the quarter with 869 third-party stores under management [12] Market Data and Key Metrics Changes - Strong markets such as New York City boroughs, Chicago, and Washington D.C. continue to show strength, while supply-impacted markets like Northern New Jersey, Phoenix, and Atlanta are stabilizing [7][12] - In Texas markets, Dallas is facing challenges due to supply and pricing decisions, while Austin shows signs of recovery [34][35] Company Strategy and Development Direction - The company remains focused on optimizing its platform while maintaining high customer service standards [6][10] - The management expressed confidence in the long-term health of the self-storage industry due to the quality and geographic diversity of its portfolio [7][12] - The company is cautious about the economic environment, maintaining a conservative outlook for gradual improvement in operational metrics in 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainty in the economy affecting consumer decisions, which could impact storage demand [13] - The company does not foresee improvement in the housing market and expects a gradual recovery without sharp reacceleration [13] - Management highlighted the resilience of the self-storage business, noting that demand drivers include everyday life events and business needs [18][19] Other Important Information - The balance sheet remains strong with a net debt to EBITDA ratio of 4.8 times [12] - The company is monitoring the impact of macroeconomic factors on its operations and is prepared to adjust strategies accordingly [13][54] Q&A Session Summary Question: What are the drivers of demand in the current environment? - Management indicated that demand is driven by everyday life events and business needs, despite a slow housing market [18] Question: What was occupancy in April? - Occupancy ended at 89.9% in April, showing a slight improvement [21] Question: How does the company view the leasing season? - Management expects a muted leasing season compared to pre-pandemic levels, with no significant growth anticipated [30] Question: What is the outlook for Texas markets? - Management noted that while Austin is recovering, Dallas faces challenges due to supply and competitive pricing [34][35] Question: How is the company managing expenses? - The company has been proactive in managing staffing and operational expenses, leading to better-than-expected results [50] Question: What is the strategy for acquisitions? - The company is open to acquisitions but faces challenges due to market volatility and seller expectations [53][54] Question: How does the company view potential recession impacts? - Management believes the self-storage business is resilient during economic downturns, with demand potentially increasing due to life changes [88][90]

Financial Data and Key Metrics Changes - The company reported a core FFO per share growth of more than 2% for the quarter, representing a 200 basis point improvement sequentially compared to the previous quarter [7][16] - Same store occupancy gap improved from down 80 basis points at the end of December to down 30 basis points by the end of March [6][7] - Revenue growth in the same store pool turned positive after two years of deceleration, while revenue growth in the non-same store pool accelerated to nearly 11% [7][15] Business Line Data and Key Metrics Changes - Move-in volumes increased over 2%, indicating stronger customer conversion and engagement [6][7] - Same store expenses grew by only 30 basis points, reflecting effective cost control measures [15][92] - The company delivered $144 million of development during the quarter, with a robust pipeline of approximately $650 million expected over the next two years [13][14] Market Data and Key Metrics Changes - The self-storage industry is experiencing favorable dynamics, with demand driven by customer events that occur across various economic conditions [11] - Move-in rents have declined significantly, aligning with levels not seen since February 2013, indicating a potential for future rent increases as demand improves [12][11] - The company noted that occupancy improved in April, with a decrease in move-out volumes contributing to this trend [22][23] Company Strategy and Development Direction - The company is focused on digital transformation, with 85% of customer interactions now occurring through digital channels, enhancing operational efficiency [9][68] - The acquisition strategy is active, with $184 million in properties acquired or under contract, indicating a strong growth trajectory [10][13] - The company is well-positioned to capitalize on both domestic and international growth opportunities, including a proposal to acquire Abacus Storage King in Australia and New Zealand [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the self-storage industry, noting that it tends to perform well even in challenging economic conditions [11][102] - The company is monitoring customer behavior closely, especially in light of macroeconomic volatility, but has seen encouraging trends in customer payment patterns and occupancy [21][72] - The guidance for 2025 remains unchanged, with expectations of continued stabilization and growth in the portfolio [16][72] Other Important Information - The company anticipates a 100 basis point impact on same store revenue growth for the year due to fire-related pricing restrictions in Los Angeles, which will be back half weighted [16][50] - Retained cash flow is expected to increase by 50% to approximately $600 million, which will be reinvested into development and acquisitions [14][115] Q&A Session Summary Question: Can you help us gauge the level of conservatism in the guidance? - Management noted that move-in volumes were strong, and customer behavior in April was categorized as very good, with payment patterns remaining solid [21][22] Question: Can you comment on the private capital raising environment for storage? - Management indicated that while institutional capital remains interested in the sector, transaction volumes have been light in 2024 and into 2025 [26][27] Question: What are the trends in revenue and advertising? - Management reported consistent positive trends in search and advertising, with higher web visits and sales calls indicating increased demand [32] Question: What is the impact of rent restrictions in LA? - Management confirmed that the impact of rent restrictions will grow over time, with an anticipated 100 basis point impact on same store revenue [50][90] Question: How is the company managing expenses? - Management reaffirmed the overall expense outlook, noting good expense control in the first quarter but expecting some elements to not persist [92] Question: How is the ECRI program performing? - The ECRI program is performing well, with consistent price sensitivity and stable costs to replace tenants [98] Question: How does the company view the demand for third-party management services? - Management expressed optimism about the growth of the third-party management business, noting good adoption and demand [82][84]

Financial Data and Key Metrics Changes - The company reported a core FFO per share growth of more than 2% for the quarter, with a 200 basis point improvement sequentially compared to the previous quarter [6][15]. - Same store occupancy gap improved from down 80 basis points at the end of December to down 30 basis points by the end of March [6]. - Revenue growth in the same store pool turned positive after two years of deceleration, while revenue growth in the non-same store pool accelerated to nearly 11% [6][14]. Business Line Data and Key Metrics Changes - Move-in volumes increased over 2%, indicating stronger customer conversion and engagement [5]. - Same store revenues turned positive after three consecutive quarters of declines, driven by higher rental rates [14]. - Same store expenses were well controlled, with only 30 basis points of growth, attributed to operational initiatives and moderated advertising spend [14]. Market Data and Key Metrics Changes - The company noted favorable industry dynamics, stating that self-storage is resilient to changing economic conditions due to its needs-based nature [9][10]. - Move-in rents have declined significantly, aligning with levels not seen since February 2013, which positions the company to benefit from rising rents and occupancy in an improving demand environment [11]. Company Strategy and Development Direction - The company is focused on digital transformation, with 85% of customer interactions now digital, and is utilizing AI to optimize staffing [7]. - The acquisition strategy is active, with $184 million in properties acquired or under contract, significantly ahead of the previous year's $35 million [8][12]. - The company is exploring international growth opportunities, exemplified by the proposal to acquire Abacus Storage King in Australia and New Zealand [8][12]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the self-storage industry, noting strong consumer trends and good payment patterns despite macroeconomic uncertainties [21][70]. - The company anticipates a 100 basis point impact on same store revenue growth due to fire-related pricing restrictions in Los Angeles, which will be back half weighted [15][48]. - Management is closely monitoring customer behavior and market conditions, indicating a cautious but optimistic outlook for the remainder of the year [70][71]. Other Important Information - The company expects retained cash flow to increase by 50% to approximately $600 million, which will be reinvested into development and acquisitions [13][108]. - The company is committed to maintaining operational efficiency through payroll optimizations and investments in solar power generation [88]. Q&A Session Summary Question: Level of conservatism in guidance - Management indicated that the guidance reflects a cautious outlook, with move-in rates down approximately 5% year-to-date, but positive trends in occupancy and move-in volumes were noted [20][22]. Question: Private capital raising environment for storage - Management acknowledged increased institutional interest in the sector, despite light transaction volumes in 2024 and early 2025 [25][26]. Question: Revenue indicators and advertising trends - Consistent positive trends in search and advertising indicators were reported, with year-over-year improvements in web visits and sales calls [31]. Question: Move-in rate strategy - Management explained that fluctuations in move-in rates are expected by market and month, with a focus on optimizing revenue [39][40]. Question: Development landscape and cost increases - The company noted a continued deceleration in national development completions, which is seen as healthy for the industry [42]. Question: Rent restrictions in LA - Management confirmed that the fire-related state of emergencies will last until early 2026, impacting revenue growth [47][48]. Question: Peak leasing season expectations - The company does not anticipate a significant uptick in peak leasing activity compared to previous years, given the current market conditions [50]. Question: ECRI program performance - The ECRI program is performing well, with stable price sensitivity and replacement costs observed [92]. Question: Business customer trends - Business customers make up approximately 15% of the portfolio, with no significant changes noted in their behavior [112][115].

Financial Data and Key Metrics Changes - The company reported a core FFO of $2 per share, representing a 2% year-over-year increase [5][12] - Same store occupancy ended the quarter at 93.4%, an improvement of 100 basis points from Q1 2024 [5][10] - Same store revenue growth was positive at 0.3% [5] Business Line Data and Key Metrics Changes - The company completed $153.8 million in wholly owned acquisitions, adding 12 high-quality stores to its portfolio [7] - The Management Plus platform added 113 stores gross, achieving a net addition of 100 properties, bringing the third-party managed portfolio to 1,675 stores [8] Market Data and Key Metrics Changes - Street rates improved from negative 9% in Q3 last year to negative 6% by year-end, with an average slightly negative in Q1, but flat by the end of the quarter [20][21] - Occupancy in April was reported at 93.7%, a slight increase from the end of Q1 [44] Company Strategy and Development Direction - The company maintains its 2025 guidance, citing the self-storage sector's historical resilience during economic downturns [9][10] - The diversified portfolio is positioned to optimize performance across various economic cycles [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of operational metrics, including high same store occupancy and stable delinquency rates [10] - There are concerns about interest rates and economic uncertainty, but the company remains optimistic about its growth channels [9][10] Other Important Information - The company executed two bond offerings totaling $850 million, maintaining a conservative leverage profile with almost 90% of debt at fixed rates [13][14] - The company anticipates continued pressure from property taxes and uncontrollable costs [15] Q&A Session Summary Question: What is driving the improvement in street rates? - Management noted that street rates improved from negative 9% to negative 6%, with a flat trend into April, indicating a positive outlook [20][21] Question: Why did the company not raise guidance despite strong performance? - Management stated that there has been no change in customer behavior and that their systems are set to maximize revenue without needing daily instructions [26][27] Question: Can you provide an update on the impact of former Life Storage assets? - The rebranded Life Storage stores are seeing improved rentals and occupancy, with a 10.4% increase in rentals compared to the previous period [30][31] Question: What is the expected impact of property taxes on expenses? - Management indicated that property taxes and property insurance are expected to remain high, but they are actively managing these costs [50][51] Question: How is the company approaching potential recession impacts? - Management expressed confidence in their systems to optimize performance during downturns, noting that self-storage tends to perform well even in economic challenges [116][102] Question: What is the outlook for acquisitions and joint ventures? - The company has two joint venture buyouts agreed upon, which are expected to be accretive and good uses of capital [97][98]

Financial Data and Key Metrics Changes - The company reported a core FFO of $2 per share, representing a 2% increase year over year [4][11] - Same store occupancy remained at historically high levels, ending the quarter at 93.4%, an improvement of 100 basis points from Q1 2024 [4][11] - Same store revenue growth was positive at 0.3% [4] - Same store NOI decreased by 1.2% compared to Q1 2024 due to a divergence between controllable and uncontrollable costs [12] Business Line Data and Key Metrics Changes - The company completed $153.8 million in wholly owned acquisitions, adding 12 high-quality stores to its portfolio [5] - The Management Plus platform added 113 stores gross, achieving a net addition of 100 properties, bringing the third-party managed portfolio to 1,675 stores [6] Market Data and Key Metrics Changes - The company noted that street rates improved from negative 9% in Q3 last year to negative 6% at year-end, with an average slightly negative in Q1 but flat by the end of the quarter [20] - Occupancy in April was reported at 93.7%, a slight increase from the end of Q1 [42] Company Strategy and Development Direction - The company maintains a diversified portfolio with exposure to various market stages, which helps mitigate volatility [8] - The multichannel approach to external growth, including wholly owned acquisitions, joint ventures, bridge lending, and third-party management, continues to provide opportunities for expansion [7] - The company is focused on maximizing FFO through proven operational strategies and maintaining its industry-leading platform [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the self-storage sector's resilience during economic downturns due to its need-based demand drivers [7] - The company has not seen any change in customer health or behavior to date, with high same store occupancy and stable delinquency rates [9] - Management acknowledged concerns about interest rates and economic uncertainty but remains optimistic about the company's ability to execute its diversified investment strategy [7][9] Other Important Information - The company executed two bond offerings totaling $850 million, demonstrating continued access to public debt markets [12] - The company anticipates continued pressure from property taxes and uncontrollable costs, but expects to manage these through operational efficiencies [12][14] Q&A Session Summary Question: What is driving the improvement in street rates? - Management noted that street rates improved from negative 9% to negative 6%, with a slight average negative in Q1 but flat by the end of the quarter [20] Question: What instructions are being given for the spring leasing season? - Management stated there has been no change in strategy, focusing on maximizing revenue through established systems and processes [25][26] Question: Can you provide an update on the performance of former Life Storage assets? - Management reported that rentals at former Life Storage stores are up 10.4%, with improvements in both organic and local search results [28][30] Question: What are the acquisition yields for the quarter? - Initial yields for acquisitions ranged from 2.3% to 6.5%, stabilizing in the upper 6% to 7% [35] Question: How is the company managing expenses? - Management indicated that controllable expenses were reduced by 1.9% year over year, while uncontrollable expenses increased by 8% due to property tax pressure [12][48] Question: What is the outlook for demand in various markets? - Management indicated that markets absorbing supply, such as Atlanta and some Florida markets, may face more difficulty compared to those with less supply [105] Question: How does the company view international expansion? - The company is open to international opportunities but requires that they be accretive and scalable [129]