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]

Financial Data and Key Metrics Changes - The company raised its outlook for 2025 based on stabilizing operations and accelerated acquisitions, which reached $785 million closed or under contract year to date [6][10] - Same store revenue growth increased for the second consecutive quarter, with rental rates up 0.6% and occupancy gap improving to down 40 basis points [13][14] - Core FFO grew by 1.2% in the quarter, with FFO growth accelerating by 240 basis points from the second quarter of last year [14] Business Line Data and Key Metrics Changes - The non same store pool is expected to generate approximately $470 million of high growth NOI in 2025, with an additional $110 million coming through stabilization in 2026 and beyond [9][10] - Ancillary businesses, including tenant insurance and third-party management, are expanding and contributing positively to revenue [9][10] Market Data and Key Metrics Changes - The West Coast markets, including Washington D.C. and Chicago, showed same store revenue growth in the 2% to 4% range [8] - Los Angeles is expected to return to higher growth once fire-related pricing restrictions end, with current impacts unchanged [8][21] Company Strategy and Development Direction - The company is focused on capital allocation and capital access, with over $1.1 billion in acquisitions and development announced for the year [11] - The company is positioned for international growth, with successful operations in Europe and potential partnerships in Australia and New Zealand [10][125] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the storage fundamentals, particularly in Los Angeles, despite current restrictions [21][34] - The overall transaction market is up year over year by 10% to 15%, with expectations for robust second-half transactions [22][24] Other Important Information - The company is actively monitoring legislative efforts in California that could impact the business, maintaining a proactive posture [76][78] - The company is investing in solar energy to offset utility costs, which will positively impact its expense profile [109][110] Q&A Session Summary Question: Update on July operating trends and guidance implications - Management indicated that July trends are consistent with expectations, with occupancy gaps tightening and rental rates down in mid-single digits [19][21] Question: Insights on acquisition pipelines and market dynamics - The transaction market is showing increased activity, with a focus on submarket-specific opportunities rather than broad geographic trends [22][26] Question: Impact of move-in volume on pricing - Management noted that move-in rents are down slightly, but overall industry demand is improving, which should support future pricing [30][31] Question: Trends in Los Angeles market - Despite current restrictions, management remains confident in the long-term performance of the Los Angeles market [34][35] Question: Changes in underwriting approaches and market conditions - Management highlighted ongoing improvements in various markets, with a focus on submarket dynamics for investment opportunities [38][39] Question: Same store revenue growth guidance - Management provided a range for same store revenue growth, indicating potential scenarios based on occupancy and rental rates [45][47] Question: Seasonal expectations for the back half of the year - Management expects similar seasonal trends as previous years, with continued competition for new customers [52][53] Question: Expectations for LA revenue growth in the second half - Management anticipates a decline in LA revenue due to pricing restrictions, but remains optimistic about future recovery [61][62] Question: Insights on tenant insurance performance - The tenant insurance program is seeing strong adoption and higher premiums, contributing positively to ancillary revenue [118][119] Question: International growth opportunities - Management expressed confidence in leveraging successful strategies from Europe to potential markets in Australia and New Zealand [125][126]

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]

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% 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]

Financial Data and Key Metrics Changes - Same store NOI declined by 3.7% in the fourth quarter [12] - Same store revenue growth was negative 1.6% for the quarter, with occupancy levels dropping 120 basis points compared to last year [13] - FFO per share as adjusted was reported at $0.68 for the quarter, with a 2% increase in the quarterly dividend to an annualized $2.08 per share, representing a 4.9% dividend yield [14] Business Line Data and Key Metrics Changes - The year-over-year same store occupancy gap narrowed from negative 100 basis points at year-end 2024 to negative 50 basis points as of February [7] - Rents for new customer rentals improved their year-over-year negative gap from negative 10.3% in the fourth quarter to negative 7.4% recently [7] Market Data and Key Metrics Changes - Lower beta urban markets are outperforming the Sunbelt, with New York City expected to remain a bright spot [8] - The impact of new supply is expected to compete with approximately 24% of the same store portfolio, down from 27% last year [19] Company Strategy and Development Direction - The company is cautiously optimistic about the long-term health of the business, focusing on creative methods to grow externally [9] - The recent acquisition of an 80% interest in a joint venture is seen as a strategic move to bring properties onto the balance sheet [10][17] Management's Comments on Operating Environment and Future Outlook - Management noted that the last two years have been marked by overly optimistic forecasts regarding housing market improvements [9] - There is no near-term catalyst expected to sharply reaccelerate organic growth in 2025, with a focus on gradual improvements [8][9] Other Important Information - Real estate taxes grew by 17.5% in the fourth quarter compared to last year, influenced by significant refunds and tax reductions received in the previous year [13] - The company raised $85.6 million in net proceeds during the quarter through its ATM program to fund acquisitions [18] Q&A Session Summary Question: Inquiry about the JV transaction and future opportunities - Management indicated no imminent opportunities for other joint ventures, as the partner had a need-based motivation for selling [25][26] Question: Discussion on catalysts for demand acceleration - Management highlighted the need for clarity in mortgage rates and economic conditions to boost consumer confidence [32][34] Question: Concerns about potential street rate wars in 2025 - Management expressed cautious optimism, noting recent improvements in rates for new customers but emphasized the need for consistent trends [42][44] Question: Update on occupancy and performance trends - Management confirmed that occupancy levels have improved, with a negative gap of 50 basis points compared to last year [60] Question: Clarification on operating expenses and inflation - Management acknowledged that operating expenses are expected to run at inflationary levels, with no significant operational efficiencies anticipated [116]

Financial Data and Key Metrics Changes - The company achieved core FFO of $4.21 per share in Q4 2024, reflecting a 20 basis point increase year over year and a strong sequential improvement from a 300 basis point decline in Q3 2024 [15] - Same store revenues declined by 60 basis points year over year in Q4 2024, improving sequentially from a 130 basis point decline in the prior quarter [16] - Same store expenses increased by 90 basis points year over year, driven by property taxes, but offset by staffing optimization and additional expense controls [16] Business Line Data and Key Metrics Changes - The company reported that nearly all markets showed operational stabilization, with same store revenue growth improving sequentially for the first time in over two years [7][8] - The non-same store portfolio and ancillary businesses contributed positively to the overall performance, indicating strong operational fundamentals [7] Market Data and Key Metrics Changes - The company noted that move-in volumes were up 5% at the start of 2025, while move-in rates were down about 8%, indicating a net improvement in activity [27] - Occupancy was down about 40 basis points year over year, showing a slight improvement from an 80 basis point decline at the end of 2024 [27] Company Strategy and Development Direction - The company completed the "Property of Tomorrow" program, a multi-year investment of over $600 million aimed at rebranding its portfolio, which is expected to increase annual retained cash flow from $400 million in 2024 to approximately $600 million in 2025 [10] - The company is focused on digital transformation, with 85% of customer interactions now occurring through self-selected digital options, up from around 30% in 2019 [11] - A $740 million development pipeline is planned for delivery over the next two years, with expectations for increased acquisition activity in 2025 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of the industry and portfolio fundamentals, expecting sequential improvement to continue outside of Los Angeles in 2025 [6][10] - The company anticipates a core FFO per share guidance of $16.35 to $17 for 2025, with a slight decline in same store revenues expected due to pricing restrictions in Los Angeles [17][18] Other Important Information - The company is actively rolling out a solar program, achieving a 30% reduction in utility use across nearly 900 properties, which benefits both financial performance and environmental sustainability [12] - Management highlighted the importance of navigating competitive customer move-in dynamics while driving improvement across the portfolio [13] Q&A Session Summary Question: Can you talk about the assumptions on street rate? - Management noted that move-in rates are expected to be down 5% year over year on average, with occupancy down 10 basis points on average, reflecting improved demand stabilization [25][29] Question: What is driving the broader stabilization in markets? - Management indicated that moderate but improving market demand is a positive trend, with increased Google searches and optimized conversion techniques contributing to this stabilization [30][32] Question: Can you discuss the impact of the 100 basis point negative impact on same store revenue in Los Angeles? - Management explained that the primary driver of this impact is rate restrictions due to a state of emergency, with occupancy remaining healthy in the market [36][37] Question: What are the current cap rates for acquisitions? - Management stated that cap rates are settling around 5% to 6% for stabilized properties, with variations for lease-up assets [50] Question: How do you view the impact of consumer sentiment on demand and pricing? - Management observed that while retailers are experiencing a softer consumer, storage customers have remained resilient, and overall demand is expected to be similar to last year [116]