CubeSmart — Call Transcript 2025

Ladies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today. At this time, I'd like to welcome you to the CubeSmart Third Quarter 2025 Earnings Call. All lines have been placed on mute to prevent any background noise, and after the speakers are marked, there will be a question-and-answer session. If you would like to ask a question at that time, please press star then the number one on your telephone keypad. If you would like to withdraw your question at any time, please press star one again. I'll now turn the call over to Josh Schutzer, Vice President of Finance. Thank you, Colby. Good morning, everyone. Welcome to CubeSmart's third quarter 2025 earnings call. Participants on today's call include Chris Marr, President and Chief Executive Officer, and Tim Martin, Chief Financial Officer. Our prepared remarks will be followed by a Q&A session. In addition to our earnings release, which was issued yesterday evening, supplemental and financial data is available under the Investor Relations section of the company's website at www.cubesmart.com. The company's remarks will include certain forward-looking statements regarding earnings and strategy that involve risks, uncertainties, and other factors that may cause the actual results to differ materially from these forward-looking statements. The risks and factors that could cause our actual results to differ materially from forward-looking statements are provided in documents the company furnishes to or files with the Securities and Exchange Commission, specifically the Form 8-K we filed this morning, together with our earnings release filed with the Form 8-K, and the risk factors section in the company's annual report on Form 10-K. In addition, the company's remarks include reference to non-GAAP measures. The reconciliation between GAAP and non-GAAP measures can be found in the third quarter financial supplement posted on the company's website at www.cubesmart.com. I'll now turn the call over to Chris. Thank you, Josh. Happy Halloween, and welcome, everyone, to our third quarter call. It was a very solid third quarter for Cube, which resulted in guidance increases across our key, same-store, and earnings metrics. Across all markets, our existing customer KPIs remain strong, with key credit and attrition metrics remaining consistent within historical normal ranges. We are continuing to feel diminishing headwinds from new supply as the stores placed in service over the last three years lease up, and the forward pipeline continues shrinking. As evident by two consecutive quarters of improved guidance expectations, the year has played out a bit better than we expected, which we attribute to the lessening impact of new supply, a more constructive pricing environment during our busy rental season, and the continued health of the consumer. We foresee continued gradual improvement in operational metrics. We are not anticipating a catalyst for a sharp reacceleration. We are prepared and operating under the expectation that the stabilizing trends, as well as deliveries of new stores, will vary by market. Market-level performance was similar to what we have been discussing for the last couple of quarters. Top performers continue to be the more urban, Mid-Atlantic, and Northeast markets. The East Coast of Florida is experiencing stabilizing trends, and some of the Sun Belt markets are still finding their footing. In summary, it's a slow, steady stabilization without a catalyst for rapid acceleration, just like we laid out when we entered the year. We've seen some better pricing power that started earlier in the year for the reasons I've previously shared, while overall demand levels are mostly stable but not growing significantly. It takes time for improving fundamentals to flow through to revenue, with only 4% to 5% monthly customer churn, and this was the first quarter since Q1 2022 where move-in rates in the same-store portfolio were positive year over year. Assuming these stabilizing trends continue through the end of the year, we should be on improved footing heading into 2026. Now, I'd like to turn the call over to our Chief Financial Officer, Tim Martin, for his commentary. Thanks, Chris. Good morning, and thank you to everyone for taking the time to join us today. For the quarter, we performed in line with our expectations, reporting FFO per share as adjusted of $0.65. Same-store revenues declined 1% compared to last year, with average occupancy for our same-store portfolio down 80 basis points to 89.9%. Same-store operating expenses grew just 0.3% over last year, again reflecting our keen focus on expense control. We saw favorable year-over-year variances in utilities expenses and in property insurance following our successful renewal back in May, which we discussed last quarter. Negative 1% revenue growth combined with 0.3% expense growth yielded negative 1.5% same-store NOI growth for the quarter. From an external growth perspective, we're starting to see a little momentum here late in the year as we're under contract to acquire three stores in the fourth quarter. We also completed and opened our joint venture development in Port Chester, New York, during the quarter and are scheduled to open our project in New Rochelle, New York, during the fourth quarter. On the third-party management front, we had another productive quarter, adding 46 stores to our platform, bringing us to 863 stores under management at quarter end. On the balance sheet, we successfully completed our issuance of $450 million of 10-year senior unsecured notes on August 20. The offering has a yield to maturity of 5.29% and was our first time back to the market in four years. We were delighted with the execution and delighted with the support we received from our fixed-income investor base. Our 2025 notes mature later this month, and we intend to satisfy those initially through borrowings under our unsecured credit facility and then ultimately term that out by accessing the bond market again in the coming months. Our leverage levels remain quite conservative, with net debt to EBITDA at 4.7x at quarter end. From a guidance perspective, we updated our full-year expectations and underlying assumptions in our press release last evening. Highlights of the guidance changes include a penny raise at the midpoint of our FFO per share as adjusted. On same-store revenue growth, we improved the midpoint of our guidance range. Our expense growth guidance range improved as well, with a revised midpoint of 1.5% for the year. All of that translates into improved same-store NOI expectations for the year, with a revised midpoint of negative 1.25%. Picking up on Chris's comments, we expect trends to continue to stabilize through the remainder of the year, putting us on better footing heading into 2026 than where we entered this year. Our guidance implies negative revenue growth in Q4, although acceleration from Q3 at the midpoint. While we're still not anticipating things snapping all the way back to normalized levels of growth quickly, we're seeing encouraging signs that are starting to flow through the portfolio. Thanks again for joining us on the call this morning. Happy Halloween. At this time, Colby, let's open up the call for some questions. Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star then the number one on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question at any time, simply press star one again. Thank you. Your first question comes from the line of Samir Khanal with Bank of America. The line is open. Good morning, everybody. Hey, Chris. How are you thinking about the balance between rate and occupancy right now in an environment where demand seems to be stable as you try to get that new customer in the door? Thanks. Ultimately, the systems are focusing in on maximizing the revenue from each customer and trying to find that balance. It varies by market. When you think about those two levers, rate and occupancy, you have the elasticity of demand that one has to deal with. When we look at those markets that we would describe as having been solid for a while, kind of the rock stars in this part of the cycle where you're getting both rate and occupancy, I'd call out New York City, Washington, D.C. MSA, Chicago. You have those markets that are stabilizing, so their rate and occupancy are moving in a good direction, albeit still perhaps down year over year. Those examples would be Miami and LA Los Angeles. Those markets that are still trying to find their footing, where again, the systems every day are trying to navigate through that dynamic of new move-in customer rate versus occupancy and testing is the demand there at any price. Those would be the same markets we've talked about all year: Atlanta, Phoenix, Cape Coral, Charlotte, the Sun Belt market. It really varies quite a lot by market as the systems try to find that balance. Maybe as a follow-up here, I know you talked about move-in rates that were positive in the quarter, kind of 2.5%, better on rate versus occupancy. Can you provide some color around October as well, what you're seeing, kind of trends in October? Thanks. Yeah. The occupancy gap to last year has contracted from the end of the third quarter. As of yesterday, we're down 100 basis points from where we were at this point last year. The average rent-on-rentals, that 2.5% that you quoted for the quarter in October, is kind of in that 1.92% kind of range. Okay, thanks a lot. Your next question comes from the line of Nicholas Yulico from Scotiabank. The line is open. Hello. This is Victor Fede on with Nihilicom. On your last call, you said that most demand still comes from traditional search, and you're working with your partners for Gemini integration. What percentage of leads and bookings are now AI-influenced today, and how does overall the cost per AI leads compare to traditional search engine leads so far? Yeah, the leads coming through the LLMs, which is primarily ChatGPT at this point for us, are about less than 1%. Got it. You also mentioned last call that the merchant builder exit wave is kind of coming to the market. I am just trying to understand whether it has intensified recently and what does it mean for you and for your potential acquisition pool. I'm sorry. I think we got a little bit more clarity on the question, if we could. Merchant builder sellers? Yeah, sellers. Whether you can see now more of them or not really versus, for example, Q2. Yeah. No, I haven't really seen a change. Again, there's no, and there typically isn't significant duress in our sector. I think what you have is folks who may have opened a store in 2022 where they were underwriting cash flows based on the spectacular storage performance during COVID are clearly not meeting their pro formas. I think what we're finding is everyone's just looking for ways to extend out and anticipate stabilizing trends and better times ahead. Financial institutions, for the most part, are cooperating. Got it. Thank you. Thanks. Your next question comes from Todd Thomas with KeyBanc Capital Markets. Your line is open. Hi. Thanks. Good morning. Chris, Tim, your comments about the improving trends and third quarter being the first period of higher move-in rents, and it seems like that continued in October. Your guidance assumes an improving revenue growth trend in fourth quarter, albeit still negative. You mentioned that. Your comments overall suggesting that trend of improving revenue growth, early sort of read into 2026, is it fair to assume that you would expect all else equal that trend to continue from here, just given the 4% to 5% churn and the time it takes for that to translate to revenue growth? Is that how you're thinking about it at this point in the cycle? Yeah. As you think, I mean, as you think about 2026. Macro, again, assuming that consumer health remains where it is, the economy continues to do okay. We would anticipate that the trend from Q3 to Q4, and again, we talked about in Q2 that Q3 had a little bit of an anomaly and that was going to create that decel from the prior quarter. Yeah, that trend should continue. Again, do we inflect positive in same-store revenue growth? As we sit here today? Yes. When might that occur? Again, as we sit here today, I would conservatively expect that's probably the back half of 2026. Okay. Some of your peers, I think, ran promotions or implemented newer discounting strategies during the quarter. I was just wondering if you can speak to whether Cube participated or what discounting strategies might have been implemented during the peak season and how you're thinking about pricing, promotions, and discounting in the off-peak season as occupancy typically pulls back a bit here. Yeah. I guess there was some new vernacular introduced recently with this gross net kind of concept. The 2.5% gross move-in rate year-over-year growth that we saw is, for us, it is also the net. We have not had any change in our discounting. Okay. Are you changing your promotional offerings, though, or changing your discount strategies at all? No. Okay. All right. Thank you. Thanks, Todd. Your next question comes from the line of Juan Sanabria with BMO Capital Markets. Your line is open. Hi. Good morning. Thanks for the time. Just on the acquisition side, a couple of your peers have become more aggressive, talking about more opportunities or deal flow. Just curious what you're seeing and/or willingness or appetite to increase the external investments. Thanks, Juan. Appreciate the question. I guess we have three stores under contract, so that's movement in the right direction. I think what we have seen and we've talked about here for the past several quarters is a pretty consistent view from the buying side of the table as to what return thresholds look like. I don't think that's changed much at all. It hasn't for us. I don't think it's changed much for others either. I think the change is that the seller side of the equation has gotten a little bit more constructive from the buyer's perspective, and you're starting to see things move a little bit. I think you saw that from some of our peers. I think you see that from us with the three stores that we have under contract. I wouldn't say there's any earth-shattering move other than the market becomes a little bit more constructive as the gap between buyer and seller has shrunk to the point where you're starting to see some things get done. Just as a follow-up, your rent per occupied square foot was strong in the quarter, up 2.4% quarter-over-quarter, flat year over year, better than peers. What do you think allowed you to push that in place rate, relative to the industry a bit stronger? I think, again, everybody's system, I assume, is trying to do the same thing, which is find that balance between the levels of demand that are out there for storage and then pricing to capture that customer as well as the marketing tools to capture that customer. I think some of it is portfolio construct, again, where we are at this part of the cycle. Our strategy and our quality focus, I think, is very helpful to our results. Part of it actually is just sort of the normal seasonality that one would expect to see from Q2 into Q3. Your next question comes from the line of Eric Wolfe with Citi. The line is open. Hey, thanks for taking my questions. I think you said a moment ago that, conservatively, same-store revenue might not turn positive until the back half of 2026. If you're already at 2% to 3% move-in rate growth, is there some reason to believe that stays there, that you wouldn't just go to 2% to 3% same-store revenue growth? Is there some kind of offset on the ECRI? I'm just trying to understand why, if you're already at, call it, positive move-in rents today, it's going to take until the back half of 2026 to be positive on same-store revenue. Yeah, I mean, not sarcastically, it's math. We are in a business where 4% to 5% of our existing customers churn on a monthly basis. Barring, again, some sort of change to the good on the demand side, which we don't foresee a catalyst for, it just takes time. You will just gradually see that slightly negative same-store revenue growth begin to move in a positive direction. Exactly when that crossover occurs, we're not providing guidance at this point, and we don't do quarterly guidance from a same-store perspective. I think, to be fair, at this point on October 31, what I shared is kind of the conservative outlook at the moment. Got it. I guess to the move-in rents that you provide in the South, does that include promotions? I'm probably asking because I'm just thinking through if we continue to see just positive move-in rent growth, like, I don't know, say 2% to 3% or 2% to 4%, does that eventually translate into kind of 2% to 4% same-store revenue growth? I know occupancy obviously plays a factor, to your point, but I guess I'm just wondering about if you can really just kind of take these move-in rent growths and then assume you're going to get a similar ECRI component to it and take that as a leading indicator of where same-store revenue growth is going, or we're mistakenly not including promotions or not including something else into that calculation. I'll jump in. If you think about your premise there of 2% to 3%, 2% to 4% type year-over-year improvement in pricing, and you held everything else constant, then ultimately, after, call it 12 months when you've churned 5% of your portfolio each month at that type of churn, then eventually that's where you would get to. It would probably be helped a little bit then by some of those other factors. You probably get a little bit more out of your ECRIs. You probably get a little bit of occupancy if you're in that environment. If you have that type of pricing power, normal pricing power over a prolonged period of time. Back to Chris's point earlier here, it just takes time to flow through because it's 4% to 5% a month, and it builds and builds and builds. If you had that for a prolonged period of time, I think that's ultimately where you get to from a revenue growth perspective, plus or minus. Thanks. Does the move-in rents include promotions, or is that a separate calculation we should make? I think it was up like mid-2s this quarter. Is that flat with promotions? Yeah. That 2.5% is gross, and for us is the same as the net because our promotions have not changed, the amount or the magnitude. Got it. Thank you. Thanks. Your next question comes from the line of Michael Griffin with Evercore ISI. The line is open. Great. Thanks. Chris, maybe you can expand a bit on whether or not you've seen any changes in new customer behavior. I mean, it seems like if you're able to raise these new customer rents, maybe there's less price sensitivity or customers shopping around. I know it's always a topical point with storage, but any incremental home buyer customers coming back, or is it still they haven't really materialized yet? Yeah. I think what you're finding is you're just able to get rate in these markets that are not typically the home buyer and seller movement markets. You're leading year-over-year improvement in rate to new customers, Manhattan, Queens, Brooklyn, Chicago, Washington, DC. The laggards where you're just still trying to find your footing in terms of where is that balance and at what rate can you get that customer to convert continue to be Atlanta, Phoenix, Charlotte, some in Texas. Some of the major Texas markets are moving in that direction as well. It really is just market from our perspective, which then sort of ties into your question, which is its customer use case. Thanks. Appreciate the context there. I'm sorry. One last piece of this. Ultimately, it's still when we talk about supply and those headwinds are diminishing across the portfolio, but that also varies pretty significantly by market. Not surprising, those Sun Belt markets that, A, tended to rely historically on a little bit more of that home buyer and seller are also the markets that continue to get deliveries. While deliveries overall are down, they are still occurring all too frequently in Atlanta, in Phoenix, in the West Coast of Florida. It is kind of a double whammy for those Sun Belt markets, so to say. Yes. Great. Maybe next, just on sort of the ECRIs and outlook there. I realize that the rent roll-downs, the move-in, the move-out is still pretty wide. Has your strategy changed there at all? Have customers become more sensitive to rate increases, or are they typically still willing to accept them, and you're able to push strategically where you can? Yeah. The customer health, which we continue to really focus in on, and again, varies by economic strata and parts of the country, generally across the portfolio, continues to be very good. We have not seen any change in customer behavior as it relates to ECRIs, and our overall approach has been consistent throughout 2025. Great. That's it for me. Thanks for the time. Thank you. Your next question comes from the line of Ravi Vaidya with Mizuho. The line's open. Hi there. Good morning. Hope you guys are doing well. I wanted to ask for the third-party management platform. I saw a couple of stores came off on a net basis. Is there something that, looking ahead, should be expected to increase again, or maybe who are some of the new private operators that you're partnering with, and how can that be used as a hedge for higher supply? Thanks. Yeah. I appreciate the question. On our third-party management platform, we talk about the stores that we add to the platform because that's ultimately what we control. Our new business development team is looking for opportunities to add owners, to add stores to the platform. This year, we have exceeded adding 130 stores for at least the eighth consecutive year. That part of the business remains healthy. The part that is very difficult to predict is when stores are going to leave the platform. Part of this year's churn was self-inflicted earlier in the year when we bought 28 stores that were in that third-party managed bucket. You just have a lot of stores that are leaving the platform. Most often, that is because they have transacted. They have sold to somebody that either self-manages or has a different relationship. Trying to predict the net growth in the store count on the third-party management platform is an impossible task. We control what we can control. When stores leave the platform, we've talked about in the past, we feel like it's a job well done. We've helped that owner create the value. We've stabilized and improved performance. In most cases, we set them up to achieve their desired results as they transact and sell the asset to someone else. Got it. That's helpful. Thank you. Thank you. Your next question comes from the line of Spenser Glimcher from Green Street. The line is open. Thank you. Maybe just going back to the acquisition front, are there certain markets or geographies that you guys are more comfortable underwriting just due to greater stabilization of fundamentals? On the flip side, are there any markets that are sort of redlined right now just because there's still too much operational uncertainty, maybe outside of the obvious supply-heavy markets? Yeah. I mean, just the nuanced responses, we're comfortable underwriting it everywhere. I think embedded in our underwriting are obviously going to be different risk hurdles based on some of those characteristics that you would refer to. Perhaps the best deal that we can find right now would be in a market that's more challenged because others don't see maybe what we see. We don't have a bias necessarily to blacklist a particular market because of supply as an example or some other criteria. What we would do in that standpoint is to make sure that from a risk-adjusted standpoint, we're getting paid to take on that uncertainty. Those markets create more challenge from an underwriting standpoint to try to look at where rates are today, perhaps, and where rates might be in a year or two. It is a challenging but not impossible underwrite when you have a store in particular because it's such a micro-market business. When you have a store that is competing against new supply, to be able to have confidence in your ability to project where rates in that small market are going to stabilize once that new supply leases up is a challenge. It's the fun part of the investments team and what they do because those deals that have a little bit of hair on them are the most challenging but also very interesting and perhaps the place that you can make a really nice risk-adjusted return. We're not avoiding markets, but certainly considering all of those risk factors. Okay. That's very helpful. Can you just share what stabilized cap rates you guys are underwriting on the three assets you're acquiring in 4Q? Yeah. Those three assets are a little bit of a mixed bag between stable and not stable. Going in, when you look across the three, we're going in in the low fives and stabilizing across the board fairly early on in year two or three, right around a six across the board for those three opportunities. Okay, thank you so much. Thank you. Your next question comes from Brendan Lynch from Barclays. The line is open. Great. Thank you for taking my question. New York City continues to perform quite well, and it continues to outperform other large markets in the Northeast. Maybe you can just kind of compare and contrast what is leading to that outperformance. Obviously, there's a lot of supply issues in the Sun Belt. Maybe it's the same in the Northeast. Just kind of any color that you can provide on New York relative to some of these other markets in the region. Yep. It's going to be partly what you just said. The boroughs really have nonexistent new supply impact, so you're really stable from that perspective. You have a more need-based customer, and then obviously, we have a very significant position there and one in which the asset quality is extremely high. We just have everything in our favor in a market that in this part of the cycle is just doing very well. Other Northeast, Philadelphia, Boston, a little bit of a mixture there. You've got supply as opposed to the boroughs, and you have a little bit more of a mix in the customer base. It's not quite Sun Belt-like, but you do have a little bit more of that mover, so to speak, than you might have in, say, the Bronx. I think it's kind of a combination of those two things. You see that similarly in urban Chicago. You see it in a few of the other urban markets. Great. Thanks, Chris. Maybe just sticking with New York City, you've got the new development coming there. It's a relatively small investment. I think it's $19 million. Maybe just talk about what would allow you to get more assertive or aggressive on development in the New York City area. It's really looking for opportunities that are located in a spot that would be complementary to our existing portfolio and, frankly, would have a need from a demand standpoint for there to be new product. Obviously, it's not as easy to pencil out deals in the boroughs as it used to be because the tax incentives aren't there any longer. There are opportunities somewhere, but the fruit is pretty high up in the tree. For us to find an opportunity, it's going to be something that we're pretty excited about. Great. That's it. Thank you. Your next question comes from the line of Eric Luebchow from Wells Fargo. Your line is open. Thanks for the question. Can you comment a little bit on any trends you're seeing on your average length of stay? It seems like vacates have been kind of muted across the industry this year. Obviously, it helps from a roll-down perspective, but perhaps takes a little bit longer for some of these better moving rates to flow through the portfolio. Any commentary on that would be helpful. Sure. When you think about those trends, I would macro say they're consistent, still elevated. Our customers who have been with us greater than a year, that's up 50 basis points year over year. If you kind of compare it to pre-COVID, third quarter of 2019, it's plus 260 basis points. Customers who have been with us greater than two years, which is about 40% of our customers, that's actually down year over year, about 140 basis points, but up 50 basis points from what we saw in 3Q 2019. Continue to be pretty consistent. Have come down a bit off of peak, but still elevated relative to historical metrics. I appreciate that. I know you provided a little bit of directional commentary on 2026, but just trying to take maybe more of the bull case. Obviously, if we get a housing catalyst, if we see a pickup in customer mobility, moving rates continue to find stability, start growing. Do you think it's reasonable we could get back to more historical levels of growth by maybe the second half of next year, certainly into 2027, and then potentially even higher beyond that, especially given some of the supply delivery commentary? Just wanted to get your temperature on what you see over the next few years and not just into 2026. Yeah. I do see that bull case as playing out the way you described. It's sort of finding that catalyst for demand. If that occurs, housing being the easiest thing to point at, we continue to have a healthy consumer. I think you then start to see consistent performance from those solid markets that we've experienced here over the last couple of quarters. Those steady eddies continue, and you're overall helped by the fact that the Charlottes and the Nashville, etc., of the world should rebound quite nicely. I think we're well positioned from obviously to get the rate. We've shown that we can do that through this cycle, increasingly more so over the last couple of months. On the occupancy side, then you get the pickup there as well. To your point, you could see, and I would expect if those conditions were to occur, you would see more elevated performance. Okay. I appreciate it. Thanks, guys. Thank you. Your next question comes from the line of Michael Mueller with JPMorgan. Your line is open. Yeah. Hi. I just go back to development supply. I mean, what's your gut feeling tell you about how quickly supply may come back in some of the markets as they improve over the next couple of years? I mean, do you see a lot of competitive projects near you where people are just kind of waiting for the right time to kick off, or do you think you're going to have a little bit longer of a runway without meaningful supply? I think that crystal ball is complicated and maybe a little fuzzy. I think it will be slower. I think that you have a couple of factors. Again, we still have elevated cost. I think it will, to our point, be a more gradual recovery in move-in rates. You'll still have to see some progress there. I think the developers, again, who have opened in 2022 and are sort of trying to figure out how to hang on at this point, may not be likely to want to get back into it again until they deal with exiting the store that they have. Ultimately, the primary lenders to the space for the developers, those local and regional banks, have to be, if they continue to be constructive in terms of how they think about underwriting and how they think about providing that leverage, I think that should constrain things as well. At least you look out through next year, probably at least the first half of 2027, I think we'll continue to see some restraint. There are the markets I've called out that appear to have no guardrails, but I think we'll continue to see some constraint. If you just think practically, if it picks back up again, it takes six months to sort of get everything going and then another 12 months to build. You're 18 months out from whenever that happens. Got it. Okay. Thank you. Your next question comes from the line of Michael Goldsmith with UBS. Your line is open. Good morning. Thanks a lot for taking my questions. Move-in rate was up 2.5% during the quarter, apparently both on a gross and a net basis, but came down in October. How did the move-in trend during the quarter? Did it peak in October, or did it peak kind of earlier during the period? Is that how it normally plays out? Thanks. Yeah. The move-in trend was historically normal. You see kind of that peak in July, and then trends tend to sequentially start to slow down. Again, I think the message here is that the road is a bit windy. We've got markets that are continuing to move in a fairly straight line in an upward trajectory. There are markets, again, pick on the Sun Belt, where the road's a little bit more windy. Overall, I would say kind of consistent with the last couple of years is what we've seen. Got it. You've said on the call maybe a couple of times, just really stabilizing trends and encouraging signs. By stabilizing trends, are you referring to same-store revenue growth, and by encouraging signs, you're suggesting the move-in rate? Is that kind of what you're pointing to? Yeah. The top-line metric, same-store revenue growth, we'll just kind of beat the drum again. It takes time for that to move given the relatively low churn in the customer base. When we talk about stabilizing trends, we're talking about move-in rates and demand levels, which have been weaker than historical but fairly consistent, and occupancy. It's more of the KPIs that are happening every day, which will then gradually bleed into the same-store revenue result, which will then gradually move that in a positive direction. Thank you very much. Port Chester looks great. Good luck in the fourth quarter. Thank you. Super excited about that. Appreciate it. We have units available if you'd like to be a guest. I'm good, thanks. Thank you. With no further questions in queue, I'd like to turn the conference back over to Chris Marr for closing remarks. Okay. Thank you, everybody, for participating. Stabilizing trends, encouraged by the direction overall that the portfolio is moving. Assuming these continue, we expect to be on improved footing heading into 2026. We look forward to seeing some of you at upcoming conferences. Next time we're on a quarterly call, we'll share our specific expectations for 2026. Thank you all. Happy Halloween. This concludes today's conference call. You may now disconnect.

Speaker 12: Ladies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today. At this time, I'd like to welcome you to the CubeSmart Third Quarter 2025 Earnings Call. All lines have been placed on mute to prevent any background noise, and after the speakers are marked, there will be a question-and-answer session. If you would like to ask a question at that time, please press star then the number one on your telephone keypad. If you would like to withdraw your question at any time, please press star one again. Ladies and gentlemen, thank you for standing by. ladies and gentlemen thank you for standing by My name is Colby, and I'll be your conference operator today. my name is colby and i'll be your conference operator today At this time, I'd like to welcome you to the CubeSmart Third Quarter 2025 Earnings Call. at this time i'd like to welcome you to the cubesmart third quarter 2025 earnings call All lines have been placed on mute to prevent any background noise, and after the speakers are marked, there will be a question-and-answer session. all lines have been placed on mute to prevent any background noise and after the speakers are marked there will be a question-and-answer session If you would like to ask a question at that time, please press star then the number one on your telephone keypad. if you would like to ask a question at that time please press star then the number one on your telephone keypad If you would like to withdraw your question at any time, please press star one again. if you would like to withdraw your question at any time please press star one again I'll now turn the call over to Josh Schutzer, Vice President of Finance. I'll now turn the call over to Josh Schutzer, Vice President of Finance. i'll now turn the call over to josh schutzer vice president of finance

Speaker 5: Thank you, Colby. Good morning, everyone. Welcome to CubeSmart's third quarter 2025 earnings call. Participants on today's call include Chris Marr, President and Chief Executive Officer, and Tim Martin, Chief Financial Officer. Our prepared remarks will be followed by a Q&A session. In addition to our earnings release, which was issued yesterday evening, supplemental and financial data is available under the Investor Relations section of the company's website at www.cubesmart.com. The company's remarks will include certain forward-looking statements regarding earnings and strategy that involve risks, uncertainties, and other factors that may cause the actual results to differ materially from these forward-looking statements. Thank you, Colby. thank you colby Good morning, everyone. good morning everyone Welcome to CubeSmart's third quarter 2025 earnings call. welcome to cubesmart's third quarter 2025 earnings call Participants on today's call include Chris Marr, President and Chief Executive Officer, and Tim Martin, Chief Financial Officer. participants on today's call include chris marr president and chief executive officer and tim martin chief financial officer Our prepared remarks will be followed by a Q&A session. our prepared remarks will be followed by a q&a session In addition to our earnings release, which was issued yesterday evening, supplemental and financial data is available under the Investor Relations section of the company's website at www.cubesmart.com. in addition to our earnings release which was issued yesterday evening supplemental and financial data is available under the investor relations section of the company's website at www.cubesmart.com The company's remarks will include certain forward-looking statements regarding earnings and strategy that involve risks, uncertainties, and other factors that may cause the actual results to differ materially from these forward-looking statements. the company's remarks will include certain forward-looking statements regarding earnings and strategy that involve risks uncertainties and other factors that may cause the actual results to differ materially from these forward-looking statements The risks and factors that could cause our actual results to differ materially from forward-looking statements are provided in documents the company furnishes to or files with the Securities and Exchange Commission, specifically the Form 8-K we filed this morning, together with our earnings release filed with the Form 8-K, and the risk factors section in the company's annual report on Form 10-K. In addition, the company's remarks include reference to non-GAAP measures. The reconciliation between GAAP and non-GAAP measures can be found in the third quarter financial supplement posted on the company's website at www.cubesmart.com. The risks and factors that could cause our actual results to differ materially from forward-looking statements are provided in documents the company furnishes to or files with the Securities and Exchange Commission, specifically the Form 8-K we filed this morning, together with our earnings release filed with the Form 8-K, and the risk factors section in the company's annual report on Form 10-K. the risks and factors that could cause our actual results to differ materially from forward-looking statements are provided in documents the company furnishes to or files with the securities and exchange commission specifically the form 8-k we filed this morning together with our earnings release filed with the form 8-k and the risk factors section in the company's annual report on form 10-k In addition, the company's remarks include reference to non-GAAP measures. in addition the company's remarks include reference to non-gaap measures The reconciliation between GAAP and non-GAAP measures can be found in the third quarter financial supplement posted on the company's website at www.cubesmart.com. the reconciliation between gaap and non-gaap measures can be found in the third quarter financial supplement posted on the company's website at www.cubesmart.com I'll now turn the call over to Chris. I'll now turn the call over to Chris. i'll now turn the call over to chris

Speaker 7: Thank you, Josh. Happy Halloween, and welcome, everyone, to our third quarter call. It was a very solid third quarter for Cube, which resulted in guidance increases across our key, same-store, and earnings metrics. Across all markets, our existing customer KPIs remain strong, with key credit and attrition metrics remaining consistent within historical normal ranges. We are continuing to feel diminishing headwinds from new supply as the stores placed in service over the last three years lease up, and the forward pipeline continues shrinking. As evident by two consecutive quarters of improved guidance expectations, the year has played out a bit better than we expected, which we attribute to the lessening impact of new supply, a more constructive pricing environment during our busy rental season, and the continued health of the consumer. We foresee continued gradual improvement in operational metrics. We are not anticipating a catalyst for a sharp reacceleration. Thank you, Josh. thank you josh Happy Halloween, and welcome, everyone, to our third quarter call. happy halloween and welcome everyone to our third quarter call It was a very solid third quarter for Cube, which resulted in guidance increases across our key, same-store, and earnings metrics. it was a very solid third quarter for cube which resulted in guidance increases across our key same-store and earnings metrics Across all markets, our existing customer KPIs remain strong, with key credit and attrition metrics remaining consistent within historical normal ranges. across all markets our existing customer kpis remain strong with key credit and attrition metrics remaining consistent within historical normal ranges We are continuing to feel diminishing headwinds from new supply as the stores placed in service over the last three years lease up, and the forward pipeline continues shrinking. we are continuing to feel diminishing headwinds from new supply as the stores placed in service over the last three years lease up and the forward pipeline continues shrinking As evident by two consecutive quarters of improved guidance expectations, the year has played out a bit better than we expected, which we attribute to the lessening impact of new supply, a more constructive pricing environment during our busy rental season, and the continued health of the consumer. as evident by two consecutive quarters of improved guidance expectations the year has played out a bit better than we expected which we attribute to the lessening impact of new supply a more constructive pricing environment during our busy rental season and the continued health of the consumer We foresee continued gradual improvement in operational metrics. we foresee continued gradual improvement in operational metrics We are not anticipating a catalyst for a sharp reacceleration. we are not anticipating a catalyst for a sharp reacceleration We are prepared and operating under the expectation that the stabilizing trends, as well as deliveries of new stores, will vary by market. Market-level performance was similar to what we have been discussing for the last couple of quarters. Top performers continue to be the more urban, Mid-Atlantic, and Northeast markets. The East Coast of Florida is experiencing stabilizing trends, and some of the Sun Belt markets are still finding their footing. In summary, it's a slow, steady stabilization without a catalyst for rapid acceleration, just like we laid out when we entered the year. We've seen some better pricing power that started earlier in the year for the reasons I've previously shared, while overall demand levels are mostly stable but not growing significantly. We are prepared and operating under the expectation that the stabilizing trends, as well as deliveries of new stores, will vary by market. we are prepared and operating under the expectation that the stabilizing trends as well as deliveries of new stores will vary by market Market-level performance was similar to what we have been discussing for the last couple of quarters. market-level performance was similar to what we have been discussing for the last couple of quarters Top performers continue to be the more urban, Mid-Atlantic, and Northeast markets. top performers continue to be the more urban mid-atlantic and northeast markets The East Coast of Florida is experiencing stabilizing trends, and some of the Sun Belt markets are still finding their footing. the east coast of florida is experiencing stabilizing trends and some of the sun belt markets are still finding their footing In summary, it's a slow, steady stabilization without a catalyst for rapid acceleration, just like we laid out when we entered the year. in summary it's a slow steady stabilization without a catalyst for rapid acceleration just like we laid out when we entered the year We've seen some better pricing power that started earlier in the year for the reasons I've previously shared, while overall demand levels are mostly stable but not growing significantly. we've seen some better pricing power that started earlier in the year for the reasons i've previously shared while overall demand levels are mostly stable but not growing significantly It takes time for improving fundamentals to flow through to revenue, with only 4% to 5% monthly customer churn, and this was the first quarter since Q1 2022 where move-in rates in the same-store portfolio were positive year over year. Assuming these stabilizing trends continue through the end of the year, we should be on improved footing heading into 2026. Now, I'd like to turn the call over to our Chief Financial Officer, Tim Martin, for his commentary. It takes time for improving fundamentals to flow through to revenue, with only 4% to 5% monthly customer churn, and this was the first quarter since Q1 2022 where move-in rates in the same-store portfolio were positive year over year. it takes time for improving fundamentals to flow through to revenue with only 4% to 5% monthly customer churn and this was the first quarter since q1 2022 where move-in rates in the same-store portfolio were positive year over year Assuming these stabilizing trends continue through the end of the year, we should be on improved footing heading into 2026. assuming these stabilizing trends continue through the end of the year we should be on improved footing heading into 2026 Now, I'd like to turn the call over to our Chief Financial Officer, Tim Martin, for his commentary. now i'd like to turn the call over to our chief financial officer tim martin for his commentary

Speaker 2: Thanks, Chris. Good morning, and thank you to everyone for taking the time to join us today. For the quarter, we performed in line with our expectations, reporting FFO per share as adjusted of $0.65. Same-store revenues declined 1% compared to last year, with average occupancy for our same-store portfolio down 80 basis points to 89.9%. Same-store operating expenses grew just 0.3% over last year, again reflecting our keen focus on expense control. We saw favorable year-over-year variances in utilities expenses and in property insurance following our successful renewal back in May, which we discussed last quarter. Negative 1% revenue growth combined with 0.3% expense growth yielded negative 1.5% same-store NOI growth for the quarter. From an external growth perspective, we're starting to see a little momentum here late in the year as we're under contract to acquire three stores in the fourth quarter. Thanks, Chris. thanks chris Good morning, and thank you to everyone for taking the time to join us today. good morning and thank you to everyone for taking the time to join us today For the quarter, we performed in line with our expectations, reporting FFO per share as adjusted of $0.65. for the quarter we performed in line with our expectations reporting ffo per share as adjusted of $0.65 Same-store revenues declined 1% compared to last year, with average occupancy for our same-store portfolio down 80 basis points to 89.9%. same-store revenues declined 1% compared to last year with average occupancy for our same-store portfolio down 80 basis points to 89.9% Same-store operating expenses grew just 0.3% over last year, again reflecting our keen focus on expense control. same-store operating expenses grew just 0.3% over last year again reflecting our keen focus on expense control We saw favorable year-over-year variances in utilities expenses and in property insurance following our successful renewal back in May, which we discussed last quarter. we saw favorable year-over-year variances in utilities expenses and in property insurance following our successful renewal back in may which we discussed last quarter Negative 1% revenue growth combined with 0.3% expense growth yielded negative 1.5% same-store NOI growth for the quarter. negative 1% revenue growth combined with 0.3% expense growth yielded negative 1.5% same-store noi growth for the quarter From an external growth perspective, we're starting to see a little momentum here late in the year as we're under contract to acquire three stores in the fourth quarter. from an external growth perspective we're starting to see a little momentum here late in the year as we're under contract to acquire three stores in the fourth quarter We also completed and opened our joint venture development in Port Chester, New York, during the quarter and are scheduled to open our project in New Rochelle, New York, during the fourth quarter. On the third-party management front, we had another productive quarter, adding 46 stores to our platform, bringing us to 863 stores under management at quarter end. On the balance sheet, we successfully completed our issuance of $450 million of 10-year senior unsecured notes on August 20. The offering has a yield to maturity of 5.29% and was our first time back to the market in four years. We were delighted with the execution and delighted with the support we received from our fixed-income investor base. We also completed and opened our joint venture development in Port Chester, New York, during the quarter and are scheduled to open our project in New Rochelle, New York, during the fourth quarter. we also completed and opened our joint venture development in port chester new york during the quarter and are scheduled to open our project in new rochelle new york during the fourth quarter On the third-party management front, we had another productive quarter, adding 46 stores to our platform, bringing us to 863 stores under management at quarter end. on the third-party management front we had another productive quarter adding 46 stores to our platform bringing us to 863 stores under management at quarter end On the balance sheet, we successfully completed our issuance of $450 million of 10-year senior unsecured notes on August 20. on the balance sheet we successfully completed our issuance of $450 million of 10-year senior unsecured notes on august 20 The offering has a yield to maturity of 5.29% and was our first time back to the market in four years. the offering has a yield to maturity of 5.29% and was our first time back to the market in four years We were delighted with the execution and delighted with the support we received from our fixed-income investor base. we were delighted with the execution and delighted with the support we received from our fixed-income investor base Our 2025 notes mature later this month, and we intend to satisfy those initially through borrowings under our unsecured credit facility and then ultimately term that out by accessing the bond market again in the coming months. Our leverage levels remain quite conservative, with net debt to EBITDA at 4.7x at quarter end. From a guidance perspective, we updated our full-year expectations and underlying assumptions in our press release last evening. Highlights of the guidance changes include a penny raise at the midpoint of our FFO per share as adjusted. On same-store revenue growth, we improved the midpoint of our guidance range. Our expense growth guidance range improved as well, with a revised midpoint of 1.5% for the year. All of that translates into improved same-store NOI expectations for the year, with a revised midpoint of negative 1.25%. Our 2025 notes mature later this month, and we intend to satisfy those initially through borrowings under our unsecured credit facility and then ultimately term that out by accessing the bond market again in the coming months. our 2025 notes mature later this month and we intend to satisfy those initially through borrowings under our unsecured credit facility and then ultimately term that out by accessing the bond market again in the coming months Our leverage levels remain quite conservative, with net debt to EBITDA at 4.7x at quarter end. our leverage levels remain quite conservative with net debt to ebitda at 4.7x at quarter end From a guidance perspective, we updated our full-year expectations and underlying assumptions in our press release last evening. from a guidance perspective we updated our full-year expectations and underlying assumptions in our press release last evening Highlights of the guidance changes include a penny raise at the midpoint of our FFO per share as adjusted. highlights of the guidance changes include a penny raise at the midpoint of our ffo per share as adjusted On same-store revenue growth, we improved the midpoint of our guidance range. on same-store revenue growth we improved the midpoint of our guidance range Our expense growth guidance range improved as well, with a revised midpoint of 1.5% for the year. our expense growth guidance range improved as well with a revised midpoint of 1.5% for the year All of that translates into improved same-store NOI expectations for the year, with a revised midpoint of negative 1.25%. all of that translates into improved same-store noi expectations for the year with a revised midpoint of negative 1.25% Picking up on Chris's comments, we expect trends to continue to stabilize through the remainder of the year, putting us on better footing heading into 2026 than where we entered this year. Our guidance implies negative revenue growth in Q4, although acceleration from Q3 at the midpoint. While we're still not anticipating things snapping all the way back to normalized levels of growth quickly, we're seeing encouraging signs that are starting to flow through the portfolio. Thanks again for joining us on the call this morning. Happy Halloween. At this time, Colby, let's open up the call for some questions. Picking up on Chris's comments, we expect trends to continue to stabilize through the remainder of the year, putting us on better footing heading into 2026 than where we entered this year. picking up on chris's comments we expect trends to continue to stabilize through the remainder of the year putting us on better footing heading into 2026 than where we entered this year Our guidance implies negative revenue growth in Q4, although acceleration from Q3 at the midpoint. our guidance implies negative revenue growth in q4 although acceleration from q3 at the midpoint While we're still not anticipating things snapping all the way back to normalized levels of growth quickly, we're seeing encouraging signs that are starting to flow through the portfolio. while we're still not anticipating things snapping all the way back to normalized levels of growth quickly we're seeing encouraging signs that are starting to flow through the portfolio Thanks again for joining us on the call this morning. thanks again for joining us on the call this morning Happy Halloween. happy halloween At this time, Colby, let's open up the call for some questions. at this time colby let's open up the call for some questions

Speaker 12: Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star then the number one on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question at any time, simply press star one again. Thank you. Your first question comes from the line of Samir Khanal with Bank of America. The line is open. Thank you. thank you We will now begin the question-and-answer session. we will now begin the question-and-answer session If you would like to ask a question, please press star then the number one on your telephone keypad to raise your hand and enter the queue. if you would like to ask a question please press star then the number one on your telephone keypad to raise your hand and enter the queue If you would like to withdraw your question at any time, simply press star one again. if you would like to withdraw your question at any time simply press star one again Thank you. thank you Your first question comes from the line of Samir Khanal with Bank of America. your first question comes from the line of samir khanal with bank of america The line is open. the line is open

Speaker 3: Good morning, everybody. Hey, Chris. How are you thinking about the balance between rate and occupancy right now in an environment where demand seems to be stable as you try to get that new customer in the door? Thanks. Good morning, everybody. good morning everybody Hey, Chris. hey chris How are you thinking about the balance between rate and occupancy right now in an environment where demand seems to be stable as you try to get that new customer in the door? how are you thinking about the balance between rate and occupancy right now in an environment where demand seems to be stable as you try to get that new customer in the door Thanks. thanks

Speaker 7: Ultimately, the systems are focusing in on maximizing the revenue from each customer and trying to find that balance. It varies by market. When you think about those two levers, rate and occupancy, you have the elasticity of demand that one has to deal with. When we look at those markets that we would describe as having been solid for a while, kind of the rock stars in this part of the cycle where you're getting both rate and occupancy, I'd call out New York City, Washington, D.C. MSA, Chicago. You have those markets that are stabilizing, so their rate and occupancy are moving in a good direction, albeit still perhaps down year over year. Those examples would be Miami and LA Los Angeles. Ultimately, the systems are focusing in on maximizing the revenue from each customer and trying to find that balance. ultimately the systems are focusing in on maximizing the revenue from each customer and trying to find that balance It varies by market. it varies by market When you think about those two levers, rate and occupancy, you have the elasticity of demand that one has to deal with. when you think about those two levers rate and occupancy you have the elasticity of demand that one has to deal with When we look at those markets that we would describe as having been solid for a while, kind of the rock stars in this part of the cycle where you're getting both rate and occupancy, I'd call out New York City, Washington, D.C. when we look at those markets that we would describe as having been solid for a while kind of the rock stars in this part of the cycle where you're getting both rate and occupancy i'd call out new york city washington d.c MSA, Chicago. msa chicago You have those markets that are stabilizing, so their rate and occupancy are moving in a good direction, albeit still perhaps down year over year. you have those markets that are stabilizing so their rate and occupancy are moving in a good direction albeit still perhaps down year over year Those examples would be Miami and LA Los Angeles. those examples would be miami and la los angeles Those markets that are still trying to find their footing, where again, the systems every day are trying to navigate through that dynamic of new move-in customer rate versus occupancy and testing is the demand there at any price. Those would be the same markets we've talked about all year: Atlanta, Phoenix, Cape Coral, Charlotte, the Sun Belt market. It really varies quite a lot by market as the systems try to find that balance. Those markets that are still trying to find their footing, where again, the systems every day are trying to navigate through that dynamic of new move-in customer rate versus occupancy and testing is the demand there at any price. those markets that are still trying to find their footing where again the systems every day are trying to navigate through that dynamic of new move-in customer rate versus occupancy and testing is the demand there at any price Those would be the same markets we've talked about all year: Atlanta, Phoenix, Cape Coral, Charlotte, the Sun Belt market. those would be the same markets we've talked about all year atlanta phoenix cape coral charlotte the sun belt market It really varies quite a lot by market as the systems try to find that balance. it really varies quite a lot by market as the systems try to find that balance

Speaker 3: Maybe as a follow-up here, I know you talked about move-in rates that were positive in the quarter, kind of 2.5%, better on rate versus occupancy. Can you provide some color around October as well, what you're seeing, kind of trends in October? Thanks. Maybe as a follow-up here, I know you talked about move-in rates that were positive in the quarter, kind of 2.5%, better on rate versus occupancy. maybe as a follow-up here i know you talked about move-in rates that were positive in the quarter kind of 2.5% better on rate versus occupancy Can you provide some color around October as well, what you're seeing, kind of trends in October? can you provide some color around october as well what you're seeing kind of trends in october Thanks. thanks

Speaker 7: Yeah. The occupancy gap to last year has contracted from the end of the third quarter. As of yesterday, we're down 100 basis points from where we were at this point last year. The average rent-on-rentals, that 2.5% that you quoted for the quarter in October, is kind of in that 1.92% kind of range. Yeah. yeah The occupancy gap to last year has contracted from the end of the third quarter. the occupancy gap to last year has contracted from the end of the third quarter As of yesterday, we're down 100 basis points from where we were at this point last year. as of yesterday we're down 100 basis points from where we were at this point last year The average rent-on-rentals, that 2.5% that you quoted for the quarter in October, is kind of in that 1.92% kind of range. the average rent-on-rentals that 2.5% that you quoted for the quarter in october is kind of in that 1.92% kind of range

Speaker 3: Okay, thanks a lot. Okay, thanks a lot. okay thanks a lot

Speaker 12: Your next question comes from the line of Nicholas Yulico from Scotiabank. The line is open. Your next question comes from the line of Nicholas Yulico from Scotiabank. your next question comes from the line of nicholas yulico from scotiabank The line is open. the line is open Hello. This is Victor Fede on with Nihilicom. On your last call, you said that most demand still comes from traditional search, and you're working with your partners for Gemini integration. What percentage of leads and bookings are now AI-influenced today, and how does overall the cost per AI leads compare to traditional search engine leads so far? Hello. hello This is Victor Fede on with Nihilicom. this is victor fede on with nihilicom On your last call, you said that most demand still comes from traditional search, and you're working with your partners for Gemini integration. on your last call you said that most demand still comes from traditional search and you're working with your partners for gemini integration What percentage of leads and bookings are now AI-influenced today, and how does overall the cost per AI leads compare to traditional search engine leads so far? what percentage of leads and bookings are now ai-influenced today and how does overall the cost per ai leads compare to traditional search engine leads so far

Speaker 7: Yeah, the leads coming through the LLMs, which is primarily ChatGPT at this point for us, are about less than 1%. Yeah, the leads coming through the LLMs, which is primarily ChatGPT at this point for us, are about less than 1%. yeah the leads coming through the llms which is primarily chatgpt at this point for us are about less than 1% Got it. You also mentioned last call that the merchant builder exit wave is kind of coming to the market. I am just trying to understand whether it has intensified recently and what does it mean for you and for your potential acquisition pool. Got it. got it You also mentioned last call that the merchant builder exit wave is kind of coming to the market. I am just trying to understand whether it has intensified recently and what does it mean for you and for your potential acquisition pool. you also mentioned last call that the merchant builder exit wave is kind of coming to the market. i am just trying to understand whether it has intensified recently and what does it mean for you and for your potential acquisition pool I'm sorry. I think we got a little bit more clarity on the question, if we could. Merchant builder sellers? I'm sorry. i'm sorry I think we got a little bit more clarity on the question, if we could. i think we got a little bit more clarity on the question if we could Merchant builder sellers? merchant builder sellers Yeah, sellers. Whether you can see now more of them or not really versus, for example, Q2. Yeah, sellers. yeah sellers Whether you can see now more of them or not really versus, for example, Q2. whether you can see now more of them or not really versus for example q2 Yeah. No, I haven't really seen a change. Again, there's no, and there typically isn't significant duress in our sector. I think what you have is folks who may have opened a store in 2022 where they were underwriting cash flows based on the spectacular storage performance during COVID are clearly not meeting their pro formas. I think what we're finding is everyone's just looking for ways to extend out and anticipate stabilizing trends and better times ahead. Financial institutions, for the most part, are cooperating. Yeah. yeah No, I haven't really seen a change. no i haven't really seen a change Again, there's no, and there typically isn't significant duress in our sector. again there's no and there typically isn't significant duress in our sector I think what you have is folks who may have opened a store in 2022 where they were underwriting cash flows based on the spectacular storage performance during COVID are clearly not meeting their pro formas. i think what you have is folks who may have opened a store in 2022 where they were underwriting cash flows based on the spectacular storage performance during covid are clearly not meeting their pro formas I think what we're finding is everyone's just looking for ways to extend out and anticipate stabilizing trends and better times ahead. i think what we're finding is everyone's just looking for ways to extend out and anticipate stabilizing trends and better times ahead Financial institutions, for the most part, are cooperating. financial institutions for the most part are cooperating Got it. Thank you. Got it. got it Thank you. thank you Thanks. Thanks. thanks

Speaker 12: Your next question comes from Todd Thomas with KeyBanc Capital Markets. Your line is open. Your next question comes from Todd Thomas with KeyBanc Capital Markets. your next question comes from todd thomas with keybanc capital markets Your line is open. your line is open

Speaker 10: Hi. Thanks. Good morning. Chris, Tim, your comments about the improving trends and third quarter being the first period of higher move-in rents, and it seems like that continued in October. Your guidance assumes an improving revenue growth trend in fourth quarter, albeit still negative. You mentioned that. Your comments overall suggesting that trend of improving revenue growth, early sort of read into 2026, is it fair to assume that you would expect all else equal that trend to continue from here, just given the 4% to 5% churn and the time it takes for that to translate to revenue growth? Is that how you're thinking about it at this point in the cycle? Hi. hi Thanks. thanks Good morning. good morning Chris, Tim, your comments about the improving trends and third quarter being the first period of higher move-in rents, and it seems like that continued in October. chris tim your comments about the improving trends and third quarter being the first period of higher move-in rents and it seems like that continued in october Your guidance assumes an improving revenue growth trend in fourth quarter, albeit still negative. your guidance assumes an improving revenue growth trend in fourth quarter albeit still negative You mentioned that. you mentioned that Your comments overall suggesting that trend of improving revenue growth, early sort of read into 2026, is it fair to assume that you would expect all else equal that trend to continue from here, just given the 4% to 5% churn and the time it takes for that to translate to revenue growth? your comments overall suggesting that trend of improving revenue growth early sort of read into 2026 is it fair to assume that you would expect all else equal that trend to continue from here just given the 4% to 5% churn and the time it takes for that to translate to revenue growth Is that how you're thinking about it at this point in the cycle? is that how you're thinking about it at this point in the cycle

Speaker 7: Yeah. As you think, I mean, as you think about 2026. Macro, again, assuming that consumer health remains where it is, the economy continues to do okay. We would anticipate that the trend from Q3 to Q4, and again, we talked about in Q2 that Q3 had a little bit of an anomaly and that was going to create that decel from the prior quarter. Yeah, that trend should continue. Again, do we inflect positive in same-store revenue growth? As we sit here today? Yes. When might that occur? Again, as we sit here today, I would conservatively expect that's probably the back half of 2026. Yeah. yeah As you think, I mean, as you think about 2026. as you think i mean as you think about 2026 Macro, again, assuming that consumer health remains where it is, the economy continues to do okay. macro again assuming that consumer health remains where it is the economy continues to do okay We would anticipate that the trend from Q3 to Q4, and again, we talked about in Q2 that Q3 had a little bit of an anomaly and that was going to create that decel from the prior quarter. we would anticipate that the trend from q3 to q4 and again we talked about in q2 that q3 had a little bit of an anomaly and that was going to create that decel from the prior quarter Yeah, that trend should continue. yeah that trend should continue Again, do we inflect positive in same-store revenue growth? again do we inflect positive in same-store revenue growth As we sit here today? as we sit here today Yes. yes When might that occur? when might that occur Again, as we sit here today, I would conservatively expect that's probably the back half of 2026. again as we sit here today i would conservatively expect that's probably the back half of 2026

Speaker 10: Okay. Some of your peers, I think, ran promotions or implemented newer discounting strategies during the quarter. I was just wondering if you can speak to whether Cube participated or what discounting strategies might have been implemented during the peak season and how you're thinking about pricing, promotions, and discounting in the off-peak season as occupancy typically pulls back a bit here. Okay. okay Some of your peers, I think, ran promotions or implemented newer discounting strategies during the quarter. some of your peers i think ran promotions or implemented newer discounting strategies during the quarter I was just wondering if you can speak to whether Cube participated or what discounting strategies might have been implemented during the peak season and how you're thinking about pricing, promotions, and discounting in the off-peak season as occupancy typically pulls back a bit here. i was just wondering if you can speak to whether cube participated or what discounting strategies might have been implemented during the peak season and how you're thinking about pricing promotions and discounting in the off-peak season as occupancy typically pulls back a bit here

Speaker 7: Yeah. I guess there was some new vernacular introduced recently with this gross net kind of concept. The 2.5% gross move-in rate year-over-year growth that we saw is, for us, it is also the net. We have not had any change in our discounting. Yeah. yeah I guess there was some new vernacular introduced recently with this gross net kind of concept. i guess there was some new vernacular introduced recently with this gross net kind of concept The 2.5% gross move-in rate year-over-year growth that we saw is, for us, it is also the net. the 2.5% gross move-in rate year-over-year growth that we saw is for us it is also the net We have not had any change in our discounting. we have not had any change in our discounting

Speaker 10: Okay. Are you changing your promotional offerings, though, or changing your discount strategies at all? Okay. okay Are you changing your promotional offerings, though, or changing your discount strategies at all? are you changing your promotional offerings though or changing your discount strategies at all

Speaker 7: No. No. no

Speaker 10: Okay. All right. Thank you. Okay. okay All right. all right Thank you. thank you

Speaker 7: Thanks, Todd. Thanks, Todd. thanks todd

Speaker 12: Your next question comes from the line of Juan Sanabria with BMO Capital Markets. Your line is open. Your next question comes from the line of Juan Sanabria with BMO Capital Markets. your next question comes from the line of juan sanabria with bmo capital markets Your line is open. your line is open

Speaker 13: Hi. Good morning. Thanks for the time. Just on the acquisition side, a couple of your peers have become more aggressive, talking about more opportunities or deal flow. Just curious what you're seeing and/or willingness or appetite to increase the external investments. Hi. hi Good morning. good morning Thanks for the time. thanks for the time Just on the acquisition side, a couple of your peers have become more aggressive, talking about more opportunities or deal flow. just on the acquisition side a couple of your peers have become more aggressive talking about more opportunities or deal flow Just curious what you're seeing and/or willingness or appetite to increase the external investments. just curious what you're seeing and/or willingness or appetite to increase the external investments

Speaker 2: Thanks, Juan. Appreciate the question. I guess we have three stores under contract, so that's movement in the right direction. I think what we have seen and we've talked about here for the past several quarters is a pretty consistent view from the buying side of the table as to what return thresholds look like. I don't think that's changed much at all. It hasn't for us. I don't think it's changed much for others either. I think the change is that the seller side of the equation has gotten a little bit more constructive from the buyer's perspective, and you're starting to see things move a little bit. I think you saw that from some of our peers. I think you see that from us with the three stores that we have under contract. Thanks, Juan. thanks juan Appreciate the question. appreciate the question I guess we have three stores under contract, so that's movement in the right direction. i guess we have three stores under contract so that's movement in the right direction I think what we have seen and we've talked about here for the past several quarters is a pretty consistent view from the buying side of the table as to what return thresholds look like. i think what we have seen and we've talked about here for the past several quarters is a pretty consistent view from the buying side of the table as to what return thresholds look like I don't think that's changed much at all. i don't think that's changed much at all It hasn't for us. it hasn't for us I don't think it's changed much for others either. i don't think it's changed much for others either I think the change is that the seller side of the equation has gotten a little bit more constructive from the buyer's perspective, and you're starting to see things move a little bit. i think the change is that the seller side of the equation has gotten a little bit more constructive from the buyer's perspective and you're starting to see things move a little bit I think you saw that from some of our peers. i think you saw that from some of our peers I think you see that from us with the three stores that we have under contract. i think you see that from us with the three stores that we have under contract I wouldn't say there's any earth-shattering move other than the market becomes a little bit more constructive as the gap between buyer and seller has shrunk to the point where you're starting to see some things get done. I wouldn't say there's any earth-shattering move other than the market becomes a little bit more constructive as the gap between buyer and seller has shrunk to the point where you're starting to see some things get done. i wouldn't say there's any earth-shattering move other than the market becomes a little bit more constructive as the gap between buyer and seller has shrunk to the point where you're starting to see some things get done

Speaker 13: Just as a follow-up, your rent per occupied square foot was strong in the quarter, up 2.4% quarter-over-quarter, flat year over year, better than peers. What do you think allowed you to push that in place rate, relative to the industry a bit stronger? Just as a follow-up, your rent per occupied square foot was strong in the quarter, up 2.4% quarter- over- quarter, flat year over year, better than peers. just as a follow-up your rent per occupied square foot was strong in the quarter up 2.4% quarter- over- quarter flat year over year better than peers What do you think allowed you to push that in place rate, relative to the industry a bit stronger? what do you think allowed you to push that in place rate relative to the industry a bit stronger

Speaker 7: I think, again, everybody's system, I assume, is trying to do the same thing, which is find that balance between the levels of demand that are out there for storage and then pricing to capture that customer as well as the marketing tools to capture that customer. I think some of it is portfolio construct, again, where we are at this part of the cycle. Our strategy and our quality focus, I think, is very helpful to our results. Part of it actually is just sort of the normal seasonality that one would expect to see from Q2 into Q3. I think, again, everybody's system, I assume, is trying to do the same thing, which is find that balance between the levels of demand that are out there for storage and then pricing to capture that customer as well as the marketing tools to capture that customer. i think again everybody's system i assume is trying to do the same thing which is find that balance between the levels of demand that are out there for storage and then pricing to capture that customer as well as the marketing tools to capture that customer I think some of it is portfolio construct, again, where we are at this part of the cycle. i think some of it is portfolio construct again where we are at this part of the cycle Our strategy and our quality focus, I think, is very helpful to our results. our strategy and our quality focus i think is very helpful to our results Part of it actually is just sort of the normal seasonality that one would expect to see from Q2 into Q3. part of it actually is just sort of the normal seasonality that one would expect to see from q2 into q3

Speaker 12: Your next question comes from the line of Eric Wolfe with Citi. The line is open. Your next question comes from the line of Eric Wolfe with Citi. your next question comes from the line of eric wolfe with citi The line is open. the line is open

Speaker 4: Hey, thanks for taking my questions. I think you said a moment ago that, conservatively, same-store revenue might not turn positive until the back half of 2026. If you're already at 2% to 3% move-in rate growth, is there some reason to believe that stays there, that you wouldn't just go to 2% to 3% same-store revenue growth? Is there some kind of offset on the ECRI? I'm just trying to understand why, if you're already at, call it, positive move-in rents today, it's going to take until the back half of 2026 to be positive on same-store revenue. Hey, thanks for taking my questions. hey thanks for taking my questions I think you said a moment ago that, conservatively, same-store revenue might not turn positive until the back half of 2026. i think you said a moment ago that conservatively same-store revenue might not turn positive until the back half of 2026 If you're already at 2% to 3% move-in rate growth, is there some reason to believe that stays there, that you wouldn't just go to 2% to 3% same-store revenue growth? if you're already at 2% to 3% move-in rate growth is there some reason to believe that stays there that you wouldn't just go to 2% to 3% same-store revenue growth Is there some kind of offset on the ECRI? is there some kind of offset on the ecri I'm just trying to understand why, if you're already at, call it, positive move-in rents today, it's going to take until the back half of 2026 to be positive on same-store revenue. i'm just trying to understand why if you're already at call it positive move-in rents today it's going to take until the back half of 2026 to be positive on same-store revenue

Speaker 7: Yeah, I mean, not sarcastically, it's math. We are in a business where 4% to 5% of our existing customers churn on a monthly basis. Barring, again, some sort of change to the good on the demand side, which we don't foresee a catalyst for, it just takes time. You will just gradually see that slightly negative same-store revenue growth begin to move in a positive direction. Exactly when that crossover occurs, we're not providing guidance at this point, and we don't do quarterly guidance from a same-store perspective. I think, to be fair, at this point on October 31, what I shared is kind of the conservative outlook at the moment. Yeah, I mean, not sarcastically, it's math. yeah i mean not sarcastically it's math We are in a business where 4% to 5% of our existing customers churn on a monthly basis. we are in a business where 4% to 5% of our existing customers churn on a monthly basis Barring, again, some sort of change to the good on the demand side, which we don't foresee a catalyst for, it just takes time. barring again some sort of change to the good on the demand side which we don't foresee a catalyst for it just takes time You will just gradually see that slightly negative same-store revenue growth begin to move in a positive direction. you will just gradually see that slightly negative same-store revenue growth begin to move in a positive direction Exactly when that crossover occurs, we're not providing guidance at this point, and we don't do quarterly guidance from a same-store perspective. exactly when that crossover occurs we're not providing guidance at this point and we don't do quarterly guidance from a same-store perspective I think, to be fair, at this point on October 31, what I shared is kind of the conservative outlook at the moment. i think to be fair at this point on october 31 what i shared is kind of the conservative outlook at the moment

Speaker 4: Got it. I guess to the move-in rents that you provide in the South, does that include promotions? I'm probably asking because I'm just thinking through if we continue to see just positive move-in rent growth, like, I don't know, say 2% to 3% or 2% to 4%, does that eventually translate into kind of 2% to 4% same-store revenue growth? I know occupancy obviously plays a factor, to your point, but I guess I'm just wondering about if you can really just kind of take these move-in rent growths and then assume you're going to get a similar ECRI component to it and take that as a leading indicator of where same-store revenue growth is going, or we're mistakenly not including promotions or not including something else into that calculation. Got it. got it I guess to the move-in rents that you provide in the South, does that include promotions? i guess to the move-in rents that you provide in the south does that include promotions I'm probably asking because I'm just thinking through if we continue to see just positive move-in rent growth, like, I don't know, say 2% to 3% or 2% to 4%, does that eventually translate into kind of 2% to 4% same-store revenue growth? i'm probably asking because i'm just thinking through if we continue to see just positive move-in rent growth like i don't know say 2% to 3% or 2% to 4% does that eventually translate into kind of 2% to 4% same-store revenue growth I know occupancy obviously plays a factor, to your point, but I guess I'm just wondering about if you can really just kind of take these move-in rent growths and then assume you're going to get a similar ECRI component to it and take that as a leading indicator of where same-store revenue growth is going, or we're mistakenly not including promotions or not including something else into that calculation. i know occupancy obviously plays a factor to your point but i guess i'm just wondering about if you can really just kind of take these move-in rent growths and then assume you're going to get a similar ecri component to it and take that as a leading indicator of where same-store revenue growth is going or we're mistakenly not including promotions or not including something else into that calculation

Speaker 2: I'll jump in. If you think about your premise there of 2% to 3%, 2% to 4% type year-over-year improvement in pricing, and you held everything else constant, then ultimately, after, call it 12 months when you've churned 5% of your portfolio each month at that type of churn, then eventually that's where you would get to. It would probably be helped a little bit then by some of those other factors. You probably get a little bit more out of your ECRIs. You probably get a little bit of occupancy if you're in that environment. If you have that type of pricing power, normal pricing power over a prolonged period of time. Back to Chris's point earlier here, it just takes time to flow through because it's 4% to 5% a month, and it builds and builds and builds. I'll jump in. i'll jump in If you think about your premise there of 2% to 3%, 2% to 4% type year-over-year improvement in pricing, and you held everything else constant, then ultimately, after, call it 12 months when you've churned 5% of your portfolio each month at that type of churn, then eventually that's where you would get to. if you think about your premise there of 2% to 3% 2% to 4% type year-over-year improvement in pricing and you held everything else constant then ultimately after call it 12 months when you've churned 5% of your portfolio each month at that type of churn then eventually that's where you would get to It would probably be helped a little bit then by some of those other factors. it would probably be helped a little bit then by some of those other factors You probably get a little bit more out of your ECRIs. you probably get a little bit more out of your ecris You probably get a little bit of occupancy if you're in that environment. you probably get a little bit of occupancy if you're in that environment If you have that type of pricing power, normal pricing power over a prolonged period of time. if you have that type of pricing power normal pricing power over a prolonged period of time Back to Chris's point earlier here, it just takes time to flow through because it's 4% to 5% a month, and it builds and builds and builds. back to chris's point earlier here it just takes time to flow through because it's 4% to 5% a month and it builds and builds and builds If you had that for a prolonged period of time, I think that's ultimately where you get to from a revenue growth perspective, plus or minus. If you had that for a prolonged period of time, I think that's ultimately where you get to from a revenue growth perspective, plus or minus. if you had that for a prolonged period of time i think that's ultimately where you get to from a revenue growth perspective plus or minus

Speaker 13: Thanks. Does the move-in rents include promotions, or is that a separate calculation we should make? I think it was up like mid-2s this quarter. Is that flat with promotions? Thanks. thanks Does the move-in rents include promotions, or is that a separate calculation we should make? does the move-in rents include promotions or is that a separate calculation we should make I think it was up like mid-2s this quarter. i think it was up like mid-2s this quarter Is that flat with promotions? is that flat with promotions

Speaker 7: Yeah. That 2.5% is gross, and for us is the same as the net because our promotions have not changed, the amount or the magnitude. Yeah. yeah That 2.5% is gross, and for us is the same as the net because our promotions have not changed, the amount or the magnitude. that 2.5% is gross and for us is the same as the net because our promotions have not changed the amount or the magnitude

Speaker 4: Got it. Thank you. Got it. got it Thank you. thank you

Speaker 7: Thanks. Thanks. thanks

Speaker 12: Your next question comes from the line of Michael Griffin with Evercore ISI. The line is open. Your next question comes from the line of Michael Griffin with Evercore ISI. your next question comes from the line of michael griffin with evercore isi The line is open. the line is open

Speaker 14: Great. Thanks. Chris, maybe you can expand a bit on whether or not you've seen any changes in new customer behavior. I mean, it seems like if you're able to raise these new customer rents, maybe there's less price sensitivity or customers shopping around. I know it's always a topical point with storage, but any incremental home buyer customers coming back, or is it still they haven't really materialized yet? Great. great Thanks. thanks Chris, maybe you can expand a bit on whether or not you've seen any changes in new customer behavior. chris maybe you can expand a bit on whether or not you've seen any changes in new customer behavior I mean, it seems like if you're able to raise these new customer rents, maybe there's less price sensitivity or customers shopping around. i mean it seems like if you're able to raise these new customer rents maybe there's less price sensitivity or customers shopping around I know it's always a topical point with storage, but any incremental home buyer customers coming back, or is it still they haven't really materialized yet? i know it's always a topical point with storage but any incremental home buyer customers coming back or is it still they haven't really materialized yet

Speaker 7: Yeah. I think what you're finding is you're just able to get rate in these markets that are not typically the home buyer and seller movement markets. You're leading year-over-year improvement in rate to new customers, Manhattan, Queens, Brooklyn, Chicago, Washington, DC. The laggards where you're just still trying to find your footing in terms of where is that balance and at what rate can you get that customer to convert continue to be Atlanta, Phoenix, Charlotte, some in Texas. Some of the major Texas markets are moving in that direction as well. It really is just market from our perspective, which then sort of ties into your question, which is its customer use case. Yeah. yeah I think what you're finding is you're just able to get rate in these markets that are not typically the home buyer and seller movement markets. i think what you're finding is you're just able to get rate in these markets that are not typically the home buyer and seller movement markets You're leading year-over-year improvement in rate to new customers, Manhattan, Queens, Brooklyn, Chicago, Washington, DC. you're leading year-over-year improvement in rate to new customers manhattan queens brooklyn chicago washington dc The laggards where you're just still trying to find your footing in terms of where is that balance and at what rate can you get that customer to convert continue to be Atlanta, Phoenix, Charlotte, some in Texas. the laggards where you're just still trying to find your footing in terms of where is that balance and at what rate can you get that customer to convert continue to be atlanta phoenix charlotte some in texas Some of the major Texas markets are moving in that direction as well. some of the major texas markets are moving in that direction as well It really is just market from our perspective, which then sort of ties into your question, which is its customer use case. it really is just market from our perspective which then sort of ties into your question which is its customer use case

Speaker 14: Thanks. Appreciate the context there. Thanks. thanks Appreciate the context there. appreciate the context there

Speaker 7: I'm sorry. One last piece of this. Ultimately, it's still when we talk about supply and those headwinds are diminishing across the portfolio, but that also varies pretty significantly by market. Not surprising, those Sun Belt markets that, A, tended to rely historically on a little bit more of that home buyer and seller are also the markets that continue to get deliveries. While deliveries overall are down, they are still occurring all too frequently in Atlanta, in Phoenix, in the West Coast of Florida. I'm sorry. i'm sorry One last piece of this. one last piece of this Ultimately, it's still when we talk about supply and those headwinds are diminishing across the portfolio, but that also varies pretty significantly by market. ultimately it's still when we talk about supply and those headwinds are diminishing across the portfolio but that also varies pretty significantly by market Not surprising, those Sun Belt markets that, A, tended to rely historically on a little bit more of that home buyer and seller are also the markets that continue to get deliveries. not surprising those sun belt markets that a tended to rely historically on a little bit more of that home buyer and seller are also the markets that continue to get deliveries While deliveries overall are down, they are still occurring all too frequently in Atlanta, in Phoenix, in the West Coast of Florida. while deliveries overall are down they are still occurring all too frequently in atlanta in phoenix in the west coast of florida

Speaker 14: It is kind of a double whammy for those Sun Belt markets, so to say. It is kind of a double whammy for those Sun Belt markets, so to say. it is kind of a double whammy for those sun belt markets so to say

Speaker 7: Yes. Yes. yes

Speaker 14: Great. Maybe next, just on sort of the ECRIs and outlook there. I realize that the rent roll-downs, the move-in, the move-out is still pretty wide. Has your strategy changed there at all? Have customers become more sensitive to rate increases, or are they typically still willing to accept them, and you're able to push strategically where you can? Great. great Maybe next, just on sort of the ECRIs and outlook there. maybe next just on sort of the ecris and outlook there I realize that the rent roll-downs, the move-in, the move-out is still pretty wide. i realize that the rent roll-downs the move-in the move-out is still pretty wide Has your strategy changed there at all? has your strategy changed there at all Have customers become more sensitive to rate increases, or are they typically still willing to accept them, and you're able to push strategically where you can? have customers become more sensitive to rate increases or are they typically still willing to accept them and you're able to push strategically where you can

Speaker 7: Yeah. The customer health, which we continue to really focus in on, and again, varies by economic strata and parts of the country, generally across the portfolio, continues to be very good. We have not seen any change in customer behavior as it relates to ECRIs, and our overall approach has been consistent throughout 2025. Yeah. yeah The customer health, which we continue to really focus in on, and again, varies by economic strata and parts of the country, generally across the portfolio, continues to be very good. the customer health which we continue to really focus in on and again varies by economic strata and parts of the country generally across the portfolio continues to be very good We have not seen any change in customer behavior as it relates to ECRIs, and our overall approach has been consistent throughout 2025. we have not seen any change in customer behavior as it relates to ecris and our overall approach has been consistent throughout 2025

Speaker 14: Great. That's it for me. Thanks for the time. Great. great That's it for me. that's it for me Thanks for the time. thanks for the time

Speaker 7: Thank you. Thank you . thank you

Speaker 12: Your next question comes from the line of Ravi Vaidya with Mizuho. The line's open. Your next question comes from the line of Ravi Vaidya with Mizuho. your next question comes from the line of ravi vaidya with mizuho The line's open. the line's open

Speaker 8: Hi there. Good morning. Hope you guys are doing well. I wanted to ask for the third-party management platform. I saw a couple of stores came off on a net basis. Is there something that, looking ahead, should be expected to increase again, or maybe who are some of the new private operators that you're partnering with, and how can that be used as a hedge for higher supply? Thanks. Hi there. hi there Good morning. good morning Hope you guys are doing well. hope you guys are doing well I wanted to ask for the third-party management platform. i wanted to ask for the third-party management platform I saw a couple of stores came off on a net basis. i saw a couple of stores came off on a net basis Is there something that, looking ahead, should be expected to increase again, or maybe who are some of the new private operators that you're partnering with, and how can that be used as a hedge for higher supply? is there something that looking ahead should be expected to increase again or maybe who are some of the new private operators that you're partnering with and how can that be used as a hedge for higher supply Thanks. thanks

Speaker 2: Yeah. I appreciate the question. On our third-party management platform, we talk about the stores that we add to the platform because that's ultimately what we control. Our new business development team is looking for opportunities to add owners, to add stores to the platform. This year, we have exceeded adding 130 stores for at least the eighth consecutive year. That part of the business remains healthy. The part that is very difficult to predict is when stores are going to leave the platform. Part of this year's churn was self-inflicted earlier in the year when we bought 28 stores that were in that third-party managed bucket. You just have a lot of stores that are leaving the platform. Most often, that is because they have transacted. They have sold to somebody that either self-manages or has a different relationship. Yeah. yeah I appreciate the question. i appreciate the question On our third-party management platform, we talk about the stores that we add to the platform because that's ultimately what we control. on our third-party management platform we talk about the stores that we add to the platform because that's ultimately what we control Our new business development team is looking for opportunities to add owners, to add stores to the platform. our new business development team is looking for opportunities to add owners to add stores to the platform This year, we have exceeded adding 130 stores for at least the eighth consecutive year. this year we have exceeded adding 130 stores for at least the eighth consecutive year That part of the business remains healthy. that part of the business remains healthy The part that is very difficult to predict is when stores are going to leave the platform. the part that is very difficult to predict is when stores are going to leave the platform Part of this year's churn was self-inflicted earlier in the year when we bought 28 stores that were in that third-party managed bucket. part of this year's churn was self-inflicted earlier in the year when we bought 28 stores that were in that third-party managed bucket You just have a lot of stores that are leaving the platform. you just have a lot of stores that are leaving the platform Most often, that is because they have transacted. most often that is because they have transacted They have sold to somebody that either self-manages or has a different relationship. they have sold to somebody that either self-manages or has a different relationship Trying to predict the net growth in the store count on the third-party management platform is an impossible task. We control what we can control. When stores leave the platform, we've talked about in the past, we feel like it's a job well done. We've helped that owner create the value. We've stabilized and improved performance. In most cases, we set them up to achieve their desired results as they transact and sell the asset to someone else. Trying to predict the net growth in the store count on the third-party management platform is an impossible task. trying to predict the net growth in the store count on the third-party management platform is an impossible task We control what we can control. we control what we can control When stores leave the platform, we've talked about in the past, we feel like it's a job well done. when stores leave the platform we've talked about in the past we feel like it's a job well done We've helped that owner create the value. we've helped that owner create the value We've stabilized and improved performance. we've stabilized and improved performance In most cases, we set them up to achieve their desired results as they transact and sell the asset to someone else. in most cases we set them up to achieve their desired results as they transact and sell the asset to someone else

Speaker 4: Got it. That's helpful. Thank you. Got it. got it That's helpful. that's helpful Thank you. thank you

Speaker 7: Thank you. Thank you. thank you

Speaker 12: Your next question comes from the line of Spenser Glimcher from Green Street. The line is open. Your next question comes from the line of Spenser Glimcher from Green Street. your next question comes from the line of spenser glimcher from green street The line is open. the line is open

Speaker 16: Thank you. Maybe just going back to the acquisition front, are there certain markets or geographies that you guys are more comfortable underwriting just due to greater stabilization of fundamentals? On the flip side, are there any markets that are sort of redlined right now just because there's still too much operational uncertainty, maybe outside of the obvious supply-heavy markets? Thank you. thank you Maybe just going back to the acquisition front, are there certain markets or geographies that you guys are more comfortable underwriting just due to greater stabilization of fundamentals? maybe just going back to the acquisition front are there certain markets or geographies that you guys are more comfortable underwriting just due to greater stabilization of fundamentals On the flip side, are there any markets that are sort of redlined right now just because there's still too much operational uncertainty, maybe outside of the obvious supply-heavy markets? on the flip side are there any markets that are sort of redlined right now just because there's still too much operational uncertainty maybe outside of the obvious supply-heavy markets

Speaker 2: Yeah. I mean, just the nuanced responses, we're comfortable underwriting it everywhere. I think embedded in our underwriting are obviously going to be different risk hurdles based on some of those characteristics that you would refer to. Perhaps the best deal that we can find right now would be in a market that's more challenged because others don't see maybe what we see. We don't have a bias necessarily to blacklist a particular market because of supply as an example or some other criteria. What we would do in that standpoint is to make sure that from a risk-adjusted standpoint, we're getting paid to take on that uncertainty. Those markets create more challenge from an underwriting standpoint to try to look at where rates are today, perhaps, and where rates might be in a year or two. Yeah. yeah I mean, just the nuanced responses, we're comfortable underwriting it everywhere. i mean just the nuanced responses we're comfortable underwriting it everywhere I think embedded in our underwriting are obviously going to be different risk hurdles based on some of those characteristics that you would refer to. i think embedded in our underwriting are obviously going to be different risk hurdles based on some of those characteristics that you would refer to Perhaps the best deal that we can find right now would be in a market that's more challenged because others don't see maybe what we see. perhaps the best deal that we can find right now would be in a market that's more challenged because others don't see maybe what we see We don't have a bias necessarily to blacklist a particular market because of supply as an example or some other criteria. we don't have a bias necessarily to blacklist a particular market because of supply as an example or some other criteria What we would do in that standpoint is to make sure that from a risk-adjusted standpoint, we're getting paid to take on that uncertainty. what we would do in that standpoint is to make sure that from a risk-adjusted standpoint we're getting paid to take on that uncertainty Those markets create more challenge from an underwriting standpoint to try to look at where rates are today, perhaps, and where rates might be in a year or two. those markets create more challenge from an underwriting standpoint to try to look at where rates are today perhaps and where rates might be in a year or two It is a challenging but not impossible underwrite when you have a store in particular because it's such a micro-market business. When you have a store that is competing against new supply, to be able to have confidence in your ability to project where rates in that small market are going to stabilize once that new supply leases up is a challenge. It's the fun part of the investments team and what they do because those deals that have a little bit of hair on them are the most challenging but also very interesting and perhaps the place that you can make a really nice risk-adjusted return. We're not avoiding markets, but certainly considering all of those risk factors. It is a challenging but not impossible underwrite when you have a store in particular because it's such a micro-market business. it is a challenging but not impossible underwrite when you have a store in particular because it's such a micro-market business When you have a store that is competing against new supply, to be able to have confidence in your ability to project where rates in that small market are going to stabilize once that new supply leases up is a challenge. when you have a store that is competing against new supply to be able to have confidence in your ability to project where rates in that small market are going to stabilize once that new supply leases up is a challenge It's the fun part of the investments team and what they do because those deals that have a little bit of hair on them are the most challenging but also very interesting and perhaps the place that you can make a really nice risk-adjusted return. it's the fun part of the investments team and what they do because those deals that have a little bit of hair on them are the most challenging but also very interesting and perhaps the place that you can make a really nice risk-adjusted return We're not avoiding markets, but certainly considering all of those risk factors. we're not avoiding markets but certainly considering all of those risk factors

Speaker 16: Okay. That's very helpful. Can you just share what stabilized cap rates you guys are underwriting on the three assets you're acquiring in 4Q? Okay. okay That's very helpful. that's very helpful Can you just share what stabilized cap rates you guys are underwriting on the three assets you're acquiring in 4Q? can you just share what stabilized cap rates you guys are underwriting on the three assets you're acquiring in 4q

Speaker 2: Yeah. Those three assets are a little bit of a mixed bag between stable and not stable. Going in, when you look across the three, we're going in in the low fives and stabilizing across the board fairly early on in year two or three, right around a six across the board for those three opportunities. Yeah. yeah Those three assets are a little bit of a mixed bag between stable and not stable. those three assets are a little bit of a mixed bag between stable and not stable Going in, when you look across the three, we're going in in the low fives and stabilizing across the board fairly early on in year two or three, right around a six across the board for those three opportunities. going in when you look across the three we're going in in the low fives and stabilizing across the board fairly early on in year two or three right around a six across the board for those three opportunities

Speaker 14: Okay, thank you so much. Okay, thank you so much. okay thank you so much

Speaker 7: Thank you. Thank you. thank you

Speaker 12: Your next question comes from Brendan Lynch from Barclays. The line is open. Your next question comes from Brendan Lynch from Barclays. your next question comes from brendan lynch from barclays The line is open. the line is open

Speaker 9: Great. Thank you for taking my question. New York City continues to perform quite well, and it continues to outperform other large markets in the Northeast. Maybe you can just kind of compare and contrast what is leading to that outperformance. Obviously, there's a lot of supply issues in the Sun Belt. Maybe it's the same in the Northeast. Just kind of any color that you can provide on New York relative to some of these other markets in the region. Great. great Thank you for taking my question. thank you for taking my question New York City continues to perform quite well, and it continues to outperform other large markets in the Northeast. new york city continues to perform quite well and it continues to outperform other large markets in the northeast Maybe you can just kind of compare and contrast what is leading to that outperformance. maybe you can just kind of compare and contrast what is leading to that outperformance Obviously, there's a lot of supply issues in the Sun Belt. obviously there's a lot of supply issues in the sun belt Maybe it's the same in the Northeast. maybe it's the same in the northeast Just kind of any color that you can provide on New York relative to some of these other markets in the region. just kind of any color that you can provide on new york relative to some of these other markets in the region

Speaker 7: Yep. It's going to be partly what you just said. The boroughs really have nonexistent new supply impact, so you're really stable from that perspective. You have a more need-based customer, and then obviously, we have a very significant position there and one in which the asset quality is extremely high. We just have everything in our favor in a market that in this part of the cycle is just doing very well. Other Northeast, Philadelphia, Boston, a little bit of a mixture there. You've got supply as opposed to the boroughs, and you have a little bit more of a mix in the customer base. It's not quite Sun Belt-like, but you do have a little bit more of that mover, so to speak, than you might have in, say, the Bronx. I think it's kind of a combination of those two things. You see that similarly in urban Chicago. You see it in a few of the other urban markets. Yep. yep It's going to be partly what you just said. it's going to be partly what you just said The boroughs really have nonexistent new supply impact, so you're really stable from that perspective. the boroughs really have nonexistent new supply impact so you're really stable from that perspective You have a more need-based customer, and then obviously, we have a very significant position there and one in which the asset quality is extremely high. you have a more need-based customer and then obviously we have a very significant position there and one in which the asset quality is extremely high We just have everything in our favor in a market that in this part of the cycle is just doing very well. we just have everything in our favor in a market that in this part of the cycle is just doing very well Other Northeast, Philadelphia, Boston, a little bit of a mixture there. other northeast philadelphia boston a little bit of a mixture there You've got supply as opposed to the boroughs, and you have a little bit more of a mix in the customer base. you've got supply as opposed to the boroughs and you have a little bit more of a mix in the customer base It's not quite Sun Belt-like, but you do have a little bit more of that mover, so to speak, than you might have in, say, the Bronx. it's not quite sun belt-like but you do have a little bit more of that mover so to speak than you might have in say the bronx I think it's kind of a combination of those two things. i think it's kind of a combination of those two things You see that similarly in urban Chicago. you see that similarly in urban chicago You see it in a few of the other urban markets. you see it in a few of the other urban markets

Speaker 9: Great. Thanks, Chris. Maybe just sticking with New York City, you've got the new development coming there. It's a relatively small investment. I think it's $19 million. Maybe just talk about what would allow you to get more assertive or aggressive on development in the New York City area. Great. great Thanks, Chris. thanks chris Maybe just sticking with New York City, you've got the new development coming there. maybe just sticking with new york city you've got the new development coming there It's a relatively small investment. it's a relatively small investment I think it's $19 million. i think it's $19 million Maybe just talk about what would allow you to get more assertive or aggressive on development in the New York City area. maybe just talk about what would allow you to get more assertive or aggressive on development in the new york city area

Speaker 2: It's really looking for opportunities that are located in a spot that would be complementary to our existing portfolio and, frankly, would have a need from a demand standpoint for there to be new product. Obviously, it's not as easy to pencil out deals in the boroughs as it used to be because the tax incentives aren't there any longer. There are opportunities somewhere, but the fruit is pretty high up in the tree. For us to find an opportunity, it's going to be something that we're pretty excited about. It's really looking for opportunities that are located in a spot that would be complementary to our existing portfolio and, frankly, would have a need from a demand standpoint for there to be new product. it's really looking for opportunities that are located in a spot that would be complementary to our existing portfolio and frankly would have a need from a demand standpoint for there to be new product Obviously, it's not as easy to pencil out deals in the boroughs as it used to be because the tax incentives aren't there any longer. obviously it's not as easy to pencil out deals in the boroughs as it used to be because the tax incentives aren't there any longer There are opportunities somewhere, but the fruit is pretty high up in the tree. there are opportunities somewhere but the fruit is pretty high up in the tree For us to find an opportunity, it's going to be something that we're pretty excited about. for us to find an opportunity it's going to be something that we're pretty excited about

Speaker 9: Great. That's it. Great. great That's it . that's it

Speaker 7: Thank you. Thank you. thank you

Speaker 12: Your next question comes from the line of Eric Luebchow from Wells Fargo. Your line is open. Your next question comes from the line of Eric Luebchow from Wells Fargo. your next question comes from the line of eric luebchow from wells fargo Your line is open. your line is open

Speaker 1: Thanks for the question. Can you comment a little bit on any trends you're seeing on your average length of stay? It seems like vacates have been kind of muted across the industry this year. Obviously, it helps from a roll-down perspective, but perhaps takes a little bit longer for some of these better moving rates to flow through the portfolio. Any commentary on that would be helpful. Thanks for the question. thanks for the question Can you comment a little bit on any trends you're seeing on your average length of stay? can you comment a little bit on any trends you're seeing on your average length of stay It seems like vacates have been kind of muted across the industry this year. it seems like vacates have been kind of muted across the industry this year Obviously, it helps from a roll-down perspective, but perhaps takes a little bit longer for some of these better moving rates to flow through the portfolio. obviously it helps from a roll-down perspective but perhaps takes a little bit longer for some of these better moving rates to flow through the portfolio Any commentary on that would be helpful. any commentary on that would be helpful

Speaker 7: Sure. When you think about those trends, I would macro say they're consistent, still elevated. Our customers who have been with us greater than a year, that's up 50 basis points year over year. If you kind of compare it to pre-COVID, third quarter of 2019, it's plus 260 basis points. Customers who have been with us greater than two years, which is about 40% of our customers, that's actually down year over year, about 140 basis points, but up 50 basis points from what we saw in 3Q 2019. Continue to be pretty consistent. Have come down a bit off of peak, but still elevated relative to historical metrics. Sure. sure When you think about those trends, I would macro say they're consistent, still elevated. when you think about those trends i would macro say they're consistent still elevated Our customers who have been with us greater than a year, that's up 50 basis points year over year. our customers who have been with us greater than a year that's up 50 basis points year over year If you kind of compare it to pre-COVID, third quarter of 2019, it's plus 260 basis points . if you kind of compare it to pre-covid third quarter of 2019 it's plus 260 basis points Customers who have been with us greater than two years, which is about 40% of our customers, that's actually down year over year, about 140 basis points , but up 50 basis points from what we saw in 3Q 2019. customers who have been with us greater than two years which is about 40% of our customers that's actually down year over year about 140 basis points but up 50 basis points from what we saw in 3q 2019 Continue to be pretty consistent. continue to be pretty consistent Have come down a bit off of peak, but still elevated relative to historical metrics. have come down a bit off of peak but still elevated relative to historical metrics

Speaker 10: I appreciate that. I know you provided a little bit of directional commentary on 2026, but just trying to take maybe more of the bull case. Obviously, if we get a housing catalyst, if we see a pickup in customer mobility, moving rates continue to find stability, start growing. Do you think it's reasonable we could get back to more historical levels of growth by maybe the second half of next year, certainly into 2027, and then potentially even higher beyond that, especially given some of the supply delivery commentary? Just wanted to get your temperature on what you see over the next few years and not just into 2026. I appreciate that. i appreciate that I know you provided a little bit of directional commentary on 2026, but just trying to take maybe more of the bull case. i know you provided a little bit of directional commentary on 2026 but just trying to take maybe more of the bull case Obviously, if we get a housing catalyst, if we see a pickup in customer mobility, moving rates continue to find stability, start growing. obviously if we get a housing catalyst if we see a pickup in customer mobility moving rates continue to find stability start growing Do you think it's reasonable we could get back to more historical levels of growth by maybe the second half of next year, certainly into 2027, and then potentially even higher beyond that, especially given some of the supply delivery commentary? do you think it's reasonable we could get back to more historical levels of growth by maybe the second half of next year certainly into 2027 and then potentially even higher beyond that especially given some of the supply delivery commentary Just wanted to get your temperature on what you see over the next few years and not just into 2026. just wanted to get your temperature on what you see over the next few years and not just into 2026

Speaker 7: Yeah. I do see that bull case as playing out the way you described. It's sort of finding that catalyst for demand. If that occurs, housing being the easiest thing to point at, we continue to have a healthy consumer. I think you then start to see consistent performance from those solid markets that we've experienced here over the last couple of quarters. Those steady eddies continue, and you're overall helped by the fact that the Charlottes and the Nashville, etc., of the world should rebound quite nicely. I think we're well positioned from obviously to get the rate. We've shown that we can do that through this cycle, increasingly more so over the last couple of months. Yeah. yeah I do see that bull case as playing out the way you described. i do see that bull case as playing out the way you described It's sort of finding that catalyst for demand. it's sort of finding that catalyst for demand If that occurs, housing being the easiest thing to point at, we continue to have a healthy consumer. if that occurs housing being the easiest thing to point at we continue to have a healthy consumer I think you then start to see consistent performance from those solid markets that we've experienced here over the last couple of quarters. i think you then start to see consistent performance from those solid markets that we've experienced here over the last couple of quarters Those steady eddies continue, and you're overall helped by the fact that the Charlottes and the Nashville, etc., of the world should rebound quite nicely. those steady eddies continue and you're overall helped by the fact that the charlottes and the nashville etc., of the world should rebound quite nicely I think we're well positioned from obviously to get the rate. i think we're well positioned from obviously to get the rate We've shown that we can do that through this cycle, increasingly more so over the last couple of months. we've shown that we can do that through this cycle increasingly more so over the last couple of months On the occupancy side, then you get the pickup there as well. To your point, you could see, and I would expect if those conditions were to occur, you would see more elevated performance. On the occupancy side, then you get the pickup there as well. on the occupancy side then you get the pickup there as well To your point, you could see, and I would expect if those conditions were to occur, you would see more elevated performance. to your point you could see and i would expect if those conditions were to occur you would see more elevated performance

Speaker 1: Okay. I appreciate it. Thanks, guys. Okay. okay I appreciate it. i appreciate it Thanks, guys. thanks guys

Speaker 7: Thank you. Thank you. thank you

Speaker 12: Your next question comes from the line of Michael Mueller with JPMorgan. Your line is open. Your next question comes from the line of Michael Mueller with JPMorgan. your next question comes from the line of michael mueller with jpmorgan Your line is open. your line is open

Speaker 6: Yeah. Hi. I just go back to development supply. I mean, what's your gut feeling tell you about how quickly supply may come back in some of the markets as they improve over the next couple of years? I mean, do you see a lot of competitive projects near you where people are just kind of waiting for the right time to kick off, or do you think you're going to have a little bit longer of a runway without meaningful supply? Yeah. yeah Hi. hi I just go back to development supply. i just go back to development supply I mean, what's your gut feeling tell you about how quickly supply may come back in some of the markets as they improve over the next couple of years? i mean what's your gut feeling tell you about how quickly supply may come back in some of the markets as they improve over the next couple of years I mean, do you see a lot of competitive projects near you where people are just kind of waiting for the right time to kick off, or do you think you're going to have a little bit longer of a runway without meaningful supply? i mean do you see a lot of competitive projects near you where people are just kind of waiting for the right time to kick off or do you think you're going to have a little bit longer of a runway without meaningful supply

Speaker 7: I think that crystal ball is complicated and maybe a little fuzzy. I think it will be slower. I think that you have a couple of factors. Again, we still have elevated cost. I think it will, to our point, be a more gradual recovery in move-in rates. You'll still have to see some progress there. I think the developers, again, who have opened in 2022 and are sort of trying to figure out how to hang on at this point, may not be likely to want to get back into it again until they deal with exiting the store that they have. I think that crystal ball is complicated and maybe a little fuzzy. i think that crystal ball is complicated and maybe a little fuzzy I think it will be slower. i think it will be slower I think that you have a couple of factors. i think that you have a couple of factors Again, we still have elevated cost. again we still have elevated cost I think it will, to our point, be a more gradual recovery in move-in rates. i think it will to our point be a more gradual recovery in move-in rates You'll still have to see some progress there. you'll still have to see some progress there I think the developers, again, who have opened in 2022 and are sort of trying to figure out how to hang on at this point, may not be likely to want to get back into it again until they deal with exiting the store that they have. i think the developers again who have opened in 2022 and are sort of trying to figure out how to hang on at this point may not be likely to want to get back into it again until they deal with exiting the store that they have Ultimately, the primary lenders to the space for the developers, those local and regional banks, have to be, if they continue to be constructive in terms of how they think about underwriting and how they think about providing that leverage, I think that should constrain things as well. At least you look out through next year, probably at least the first half of 2027, I think we'll continue to see some restraint. There are the markets I've called out that appear to have no guardrails, but I think we'll continue to see some constraint. If you just think practically, if it picks back up again, it takes six months to sort of get everything going and then another 12 months to build. You're 18 months out from whenever that happens. Ultimately, the primary lenders to the space for the developers, those local and regional banks, have to be, if they continue to be constructive in terms of how they think about underwriting and how they think about providing that leverage, I think that should constrain things as well. ultimately the primary lenders to the space for the developers those local and regional banks have to be if they continue to be constructive in terms of how they think about underwriting and how they think about providing that leverage i think that should constrain things as well At least you look out through next year, probably at least the first half of 2027, I think we'll continue to see some restraint. at least you look out through next year probably at least the first half of 2027 i think we'll continue to see some restraint There are the markets I've called out that appear to have no guardrails, but I think we'll continue to see some constraint. there are the markets i've called out that appear to have no guardrails but i think we'll continue to see some constraint If you just think practically, if it picks back up again, it takes six months to sort of get everything going and then another 12 months to build. if you just think practically if it picks back up again it takes six months to sort of get everything going and then another 12 months to build You're 18 months out from whenever that happens. you're 18 months out from whenever that happens

Speaker 6: Got it. Okay. Thank you. Got it. got it Okay. okay Thank you. thank you

Speaker 12: Your next question comes from the line of Michael Goldsmith with UBS. Your line is open. Your next question comes from the line of Michael Goldsmith with UBS. your next question comes from the line of michael goldsmith with ubs Your line is open. your line is open

Speaker 15: Good morning. Thanks a lot for taking my questions. Move-in rate was up 2.5% during the quarter, apparently both on a gross and a net basis, but came down in October. How did the move-in trend during the quarter? Did it peak in October, or did it peak kind of earlier during the period? Is that how it normally plays out? Thanks. Good morning. good morning Thanks a lot for taking my questions. thanks a lot for taking my questions Move-in rate was up 2.5% during the quarter, apparently both on a gross and a net basis, but came down in October. move-in rate was up 2.5% during the quarter apparently both on a gross and a net basis but came down in october How did the move-in trend during the quarter? how did the move-in trend during the quarter Did it peak in October, or did it peak kind of earlier during the period? did it peak in october or did it peak kind of earlier during the period Is that how it normally plays out? is that how it normally plays out Thanks. thanks

Speaker 7: Yeah. The move-in trend was historically normal. You see kind of that peak in July, and then trends tend to sequentially start to slow down. Again, I think the message here is that the road is a bit windy. We've got markets that are continuing to move in a fairly straight line in an upward trajectory. There are markets, again, pick on the Sun Belt, where the road's a little bit more windy. Overall, I would say kind of consistent with the last couple of years is what we've seen. Yeah. yeah The move-in trend was historically normal. the move-in trend was historically normal You see kind of that peak in July, and then trends tend to sequentially start to slow down. you see kind of that peak in july and then trends tend to sequentially start to slow down Again, I think the message here is that the road is a bit windy. again i think the message here is that the road is a bit windy We've got markets that are continuing to move in a fairly straight line in an upward trajectory. we've got markets that are continuing to move in a fairly straight line in an upward trajectory There are markets, again, pick on the Sun Belt, where the road's a little bit more windy. there are markets again pick on the sun belt where the road's a little bit more windy Overall, I would say kind of consistent with the last couple of years is what we've seen. overall i would say kind of consistent with the last couple of years is what we've seen

Speaker 15: Got it. You've said on the call maybe a couple of times, just really stabilizing trends and encouraging signs. By stabilizing trends, are you referring to same-store revenue growth, and by encouraging signs, you're suggesting the move-in rate? Is that kind of what you're pointing to? Got it. got it You've said on the call maybe a couple of times, just really stabilizing trends and encouraging signs. you've said on the call maybe a couple of times just really stabilizing trends and encouraging signs By stabilizing trends, are you referring to same-store revenue growth, and by encouraging signs, you're suggesting the move-in rate? by stabilizing trends are you referring to same-store revenue growth and by encouraging signs you're suggesting the move-in rate Is that kind of what you're pointing to? is that kind of what you're pointing to

Speaker 7: Yeah. The top-line metric, same-store revenue growth, we'll just kind of beat the drum again. It takes time for that to move given the relatively low churn in the customer base. When we talk about stabilizing trends, we're talking about move-in rates and demand levels, which have been weaker than historical but fairly consistent, and occupancy. It's more of the KPIs that are happening every day, which will then gradually bleed into the same-store revenue result, which will then gradually move that in a positive direction. Yeah. yeah The top-line metric, same-store revenue growth, we'll just kind of beat the drum again. the top-line metric same-store revenue growth we'll just kind of beat the drum again It takes time for that to move given the relatively low churn in the customer base. it takes time for that to move given the relatively low churn in the customer base When we talk about stabilizing trends, we're talking about move-in rates and demand levels, which have been weaker than historical but fairly consistent, and occupancy. when we talk about stabilizing trends we're talking about move-in rates and demand levels which have been weaker than historical but fairly consistent and occupancy It's more of the KPIs that are happening every day, which will then gradually bleed into the same-store revenue result, which will then gradually move that in a positive direction. it's more of the kpis that are happening every day which will then gradually bleed into the same-store revenue result which will then gradually move that in a positive direction

Speaker 15: Thank you very much. Port Chester looks great. Good luck in the fourth quarter. Thank you very much. thank you very much Port Chester looks great. port chester looks great Good luck in the fourth quarter. good luck in the fourth quarter

Speaker 7: Thank you. Super excited about that. Thank you. thank you Super excited about that. super excited about that

Speaker 2: Appreciate it. We have units available if you'd like to be a guest. Appreciate it. appreciate it we We have units available if you'd like to be a guest. we have units available if you'd like to be a guest

Speaker 15: I'm good, thanks. I'm good, thanks. i'm good thanks

Speaker 12: Thank you. With no further questions in queue, I'd like to turn the conference back over to Chris Marr for closing remarks. Thank you. thank you With no further questions in queue, I'd like to turn the conference back over to Chris Marr for closing remarks. with no further questions in queue i'd like to turn the conference back over to chris marr for closing remarks

Speaker 7: Okay. Thank you, everybody, for participating. Stabilizing trends, encouraged by the direction overall that the portfolio is moving. Assuming these continue, we expect to be on improved footing heading into 2026. We look forward to seeing some of you at upcoming conferences. Next time we're on a quarterly call, we'll share our specific expectations for 2026. Thank you all. Happy Halloween. Okay. okay Thank you, everybody, for participating. thank you everybody for participating Stabilizing trends, encouraged by the direction overall that the portfolio is moving. stabilizing trends encouraged by the direction overall that the portfolio is moving Assuming these continue, we expect to be on improved footing heading into 2026. assuming these continue we expect to be on improved footing heading into 2026 We look forward to seeing some of you at upcoming conferences. we look forward to seeing some of you at upcoming conferences Next time we're on a quarterly call, we'll share our specific expectations for 2026. next time we're on a quarterly call we'll share our specific expectations for 2026 Thank you all. thank you all Happy Halloween. happy halloween

Speaker 12: This concludes today's conference call. You may now disconnect. This concludes today's conference call. this concludes today's conference call You may now disconnect. you may now disconnect