Extra Space Storage, Inc. (NYSE:EXR) Q3 2023 Earnings Conference Call November 8, 2023 1:00 PM ET

Company Participants

Joseph Margolis - CEO & Director

Jeffrey Norman - SVP, Capital Markets

Scott Stubbs - EVP & CFO

Conference Call Participants

Juan Sanabria - BMO Capital Markets

Keegan Carl - Wolfe Research

Michael Goldsmith - UBS

Spenser Allaway - Green Street Advisors

Jeffrey Spector - Bank of America Merrill Lynch

Samir Khanal - Evercore ISI

Michael Mueller - JPMorgan Chase & Co.

Caitlin Burrows - Goldman Sachs Group

Smedes Rose - Citigroup

Ronald Kamdem - Morgan Stanley

Operator

Good day, and thank you for standing by. Welcome to the Q3 2023 Extra Space Storage and Earnings Conference Call. [Operator Instructions]. Please be advised as being recorded. I would now like to hand the conference over to your speaker today, Jeff Norman. Please go ahead.

Jeffrey Norman

Thank you, Kevin. Welcome to Extra Space Storage's Third Quarter 2023 Earnings Call. In addition to our press release, we have furnished unaudited supplemental financial information on our website. Please remember that management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act. Actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with the company's business. These forward-looking statements are qualified by the cautionary statements contained in the company's latest filings with the SEC, which we encourage our listeners to review.

Forward-looking statements represent management's estimates as of today, November 8, 2023. The company assumes no obligation to revise or update any forward-looking statements because of changing market conditions or other circumstances after the date of this conference call.

I would now like to turn the call over to Joe Margolis, Chief Executive Officer.

Joseph Margolis

Thanks, Jeff, and thank you, everyone, for joining today's call. We had a busy third quarter. In July, we successfully completed our merger with Life Storage adding over 1,200 stores to our portfolio and over 2,300 new members to team Extra Space. The transition is going very smoothly, and I am proud of the teamwork and innovation our employees are demonstrating through the merger.

Our combined portfolio of 3,651 stores provides greater diversification, stability, revenue opportunities, operational efficiencies that I believe will improve our property level and external growth for years to come. From a performance standpoint, the third quarter was generally in line with expectations. Revenue growth moderation for the Extra Space same-store pool flattened meaningfully during the third quarter and our 1.9% same-store revenue increase was modestly ahead of our expectations. Revenue growth was driven by high average occupancy in the quarter of 94.4%. Existing customer behavior continued to be strong with solid length of stay, muted vacates and continued acceptance of rate increases.