Public Storage

Ladies and gentlemen, thank you for standing by, and welcome to the Public Storage First Quarter 2022 Earnings Call. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you have a question at any time, please press star 1 on your telephone keypad. If you wish to remove yourself from the queue, please press the pound key. It is now my pleasure to turn the floor over to Ryan Burke, Vice President of Investor Relations. Ryan, you may begin.

Thank you, Katie. Hello, everyone. Thank you for joining us for our first quarter 2022 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, May 4th, 2022, and we assume no obligation to update, revise, or supplement statements to 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 at publicstorage.com. We do ask that you initially limit yourself to two questions. After that, of course, please feel free to jump back in queue. With that, I'll turn the call over to Joe.

Good morning, and thank you for joining us. Before I hand the call over to Tom to discuss specific Q1 metrics, I will highlight five areas that are setting the stage for a robust 2022. First, market to market, business remains very strong. Now that we are four months into the year, we continue to see elevated demand from new customers across the portfolio. Existing customers are also extending average length of stay. We have healthy pricing dynamics and with move-in rates of 15% and our existing customer rate increase program performing very well. Second, the traditional busy season is taking hold. Inventory is tight with vacancy at about 5%. We see outsized demand for vacant units throughout the markets. Both consumers and business customers are aggressively seeking space, along with more traditional drivers for this time of year, which include home sales and college students. Home affordability, hybrid work environments, and a tight commercial market are clearly additive to our performance metrics. Third, our large Non-same-store portfolio, now 515 assets across 50 million square feet, is growing significantly from a revenue and occupancy standpoint. Non-same-store NOI nearly tripled during the quarter. These assets are highly complementary to our market presence and continue to deliver exceptional returns with outsized move-in activity due to average occupancy of 86%. Of note, the $1.8 billion easy storage portfolio we acquired a year ago has already achieved the yield we anticipated after year two. The recently acquired $1.5 billion all storage portfolio is performing ahead of expectations as well. Fourth, as anticipated, fewer assets have entered the sales market this year. Year-to-date, we have closed or are under contract for 21 assets, totaling approximately $275 million. Our industry-leading development platform increased to $833 million. The forecast of relatively stable national deliveries for 2022 and 2023 remains intact, as we anticipate approximately 500 to 600 assets will be delivered each of the next two years. And fifth, our industry-leading digital customer experience continues to be embraced by new tenants. This includes digital leasing, centralized property access, as well as our PS app. In March, we reached a significant milestone with our one millionth e-rental move-in. Today, more than half of our customers are choosing e-rental, giving them a desirable digital option to lease a unit. Our ongoing investments in the public storage digital platform are improving both customer experience and employee efficiency. Clearly, a win-win. Now to Tom.