Extra Space Storage(EXR)2024-10-30 20:05Financial Data and Key Metrics Changes - The company reported a same-store occupancy rate of 94.3% at the end of the quarter, an increase of 80 basis points year-over-year [12][13] - The average new customer move-in rate was negative 9% year-over-year, indicating a decline in pricing power [12][46] - The company raised the bottom end of its FFO guidance by 7.95 to 334 million deployed in acquisitions year-to-date and an expectation to remain active in the bridge loan market [10][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to optimize performance in a challenging market and is well-positioned to benefit when market fundamentals improve [71] - The company anticipates that the occupancy levels will remain higher than historical averages, which will support future pricing power [56][71] - Management acknowledged the impact of Hurricane Milton, estimating total property damage and tenant insurance claims to be $10 million or more, but noted that these costs would not be included in their guidance [18][19] Other Important Information - The company has lowered its G&A guidance for the year, reflecting ongoing efforts to find efficiencies [11] - The company is still assessing the full extent of property damage from Hurricane Milton, with three REIT stores remaining closed [18] Q&A Session Summary Question: Benefits of Single Brand - Management noted early signs of improved SEO performance and modest savings in paid marketing spend since transitioning to a single brand [21][22] Question: Fourth Quarter Guidance - Management indicated that the primary difference in guidance for Q4 is property performance, with expectations for stabilization [25][28] Question: Hurricane Impact on Rentals - An uptick in rentals was observed in impacted areas, with occupancy rates increasing significantly in some stores [31] Question: Acquisition Activity - Management confirmed ongoing discussions for acquisitions, with a focus on accretive transactions [34] Question: Move-In Rates - The average move-in rate for new customers was negative 9% year-over-year, with no significant changes expected in October [46] Question: Pricing Power and Demand - Management emphasized the need to understand various economic factors affecting pricing power and demand for storage [83] Question: ECRI Program - Management stated that both LSI and EXR pools are on the same ECRI program, with no significant differences in pace or amount [88] Question: Bridge Loan Program - The company has been active in bridge loan originations, with expectations to remain active despite some downward pressure from upcoming maturities [92]