Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide some color on how move-in rents are trending thus far into the second quarter?
A: Christopher P. Marr - CubeSmart - CEO, President & Trustee: New customer rates in April are down 11% from last April, showing an improvement from the 13% at the end of Q1, and they were at 14% negative in Q4. We're seeing a combination of what occurred last year and a bit of improvement this year in that negative gap on new customer rates.
Q: How did demand trend over the quarter, and what have you seen during April?
A: Christopher P. Marr - CubeSmart - CEO, President & Trustee: Demand varied by market. Urban-oriented markets like New York MSA, Chicago, and Boston saw growth in year-over-year rentals. Sun Belt markets and some supply-impacted markets like Northern Virginia and Nashville experienced declines but are showing signs of stabilization.
Q: Given the current economic environment, how has your outlook for the year changed?
A: Timothy M. Martin - CubeSmart - CFO & Treasurer: Our guidance remains consistent with what we provided earlier. The next three months will be highly impactful on how the entire year plays out, but nothing in the past six weeks has prompted a change in our view.
Q: Can you discuss the initial cap rate on the two assets acquired this quarter?
A: Timothy M. Martin - CubeSmart - CFO & Treasurer: The assets are stabilized and well-known to us, with an initial cap rate in the low 6s.
Q: How are advertising expenses trending given the current demand challenges?
A: Christopher P. Marr - CubeSmart - CEO, President & Trustee: Our advertising expenses are down about 15% due to increased efficiency in our customer data platform and other technological investments, which improve our paid new customer acquisition.
Q: How is the occupancy build during this period compared to previous years?
A: Christopher P. Marr - CubeSmart - CEO, President & Trustee: Occupancy is at 90.8%, up from the end of March, with the year-over-year gap narrowing. Move-out activity is in line with last year, and the length of stay for customers is trending closer to stabilization.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
