Q1 2024 Extra Space Storage Inc Earnings Call Transcript
Key Points
- Occupancy rates improved sequentially each month, ending the quarter at 93.2%, a 50 basis point increase year-over-year.
- Average move-in rate grew by approximately 8% from January, contributing to a 1% lift in same-store revenue performance.
- Life Storage same-store properties showed a revenue gain of 1.7% year-over-year, aligning with internal projections.
- Extra Space Storage expanded its capital-light external growth activities, adding $164 million in new bridge loans, significantly ahead of projections.
- The company successfully added 97 third-party managed stores gross and 72 stores net, maintaining the fastest-growing third-party management platform in the industry.
- Same-store expense growth increased by 5.5% year-over-year, driven by higher costs in payroll and repairs and maintenance.
- Life Storage same-store expenses rose by 6.7% year-over-year, although this was below internal projections.
- The transaction market remains muted, with a significant bid-ask spread and limited distress in storage leading to fewer transactions.
- Street rates for new customers are still negative compared to the previous year, indicating ongoing pricing challenges.
- The company faces uncertainty in predicting the recovery of the housing market and its impact on storage demand.
Good day, and thank you for standing by. Welcome to the First Quarter 2024 Extra Space Storage Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to Jared Conley, Vice President of Investor Relations. Please go ahead.
Thank you, Michelle. Welcome to Extra Space Storage's First Quarter 2024 Earnings Call. In addition to our press release, we have furnished unaudited supplemental financial information on our website. Please remember that management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act. Actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with the company's business. These forward-looking statements are qualified by the cautionary statements contained in the company's latest filings with the SEC, which we encourage our listeners to review.
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