Extra Space Storage(US:EXR)2025-04-30 17:00Financial 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]