Public Storage (PSA) Q2 2023 Earnings Call Transcript

Public Storage (NYSE:PSA.PK) Q2 2023 Earnings Call Transcript August 3, 2023 12:00 PM ET

Company Participants

Ryan Burke - Vice President of Investor Relations

Joseph Russell - President and Chief Executive Officer

Tom Boyle - Senior Vice President, Chief Financial Officer, and Chief Investment Officer

Conference Call Participants

Michael Goldsmith - UBS

Samir Khanal - Evercore

Todd Thomas - KeyBanc Capital Markets

Jeff Spector - Bank of America

Spenser Allaway - Green Street Advisors

Smedes Rose - Citigroup

Juan Sanabria - BMO Capital Markets

Ki Bin Kim - Truist Securities

Keegan Carl - Wolfe Research

Michael Mueller - J.P. Morgan

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Public Storage Second Quarter 2023 Earnings Call. [Operator Instructions]. It is now my pleasure to turn the floor over to Ryan Burke, Vice President of Investor Relations. Ryan, you may begin.

Ryan Burke

Thank you, Shelby. Hello, everyone. Thank you for joining us for our second quarter 2023 earnings call. I'm here with Joe Russell and Tom Boyle. Before we begin, we want to remind you that certain matters discussed during this call may constitute forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to certain economic risks and uncertainties. All forward-looking statements speak only as of today, August 3, 2023, and we assume no obligation to update, revise or supplement statements that become untrue because of subsequent events.

A reconciliation to GAAP of the non-GAAP financial measures we provide on this call is included in our earnings release. You can find our press release, supplement report, SEC reports, and an audio replay of this conference call on our website, publicstorage.com. [Operator Instructions].

With that, I'll turn the call over to Joe.

Joseph Russell

Thank you, Ryan, and thank you all for joining us today. As demonstrated by our second quarter performance and raised outlook for the year, Public Storage continues to maximize its competitive advantages across our platform with several key factors driving positive results, including a better-than-expected macro environment with higher odds of a soft landing; increased rental activity from our needs-oriented customer base; and execution across all aspects of our industry-leading platform. We are built to operate in all macro environments and we are proving just that.

Let me highlight three specific areas. First, we are driving record year-over-year growth in customer move-in volumes. Move-in volume growth has accelerated throughout the year, up nearly 14% in the second quarter. We have closed the year-over-year occupancy gap from down 220 basis points at the end of March to down 160 basis points at the end of June. We have the right team technologies and analytics to determine the appropriate mix of marketing, promotions, and rental rates to meet customer expectations in the current environment.