Life Storage, Inc. (NYSE:LSI) Q3 2017 Earnings Conference Call - Final Transcript

Nov 01, 2017 • 09:00 am ET

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Life Storage, Inc. (NYSE:LSI) Q3 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Life Storage Third Quarter 2017 Earnings Release Conference Call. At this time, all participants are in a listen only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Diane Piegza, Vice President of Investor Relations. Thank you, Ms. Piegza. You may begin.

Executive
Diane Piegza

Thank you, and welcome to our third quarter 2017 conference call. Leading today's discussion will be David Rogers, Chief Executive Office and also on the call is Andy Gregoire, our Chief Financial Officer. As a reminder, the following discussion and answers to your questions contain forward-looking statements. Our actual results may differ from those projected due to risks and uncertainties with the company's business.

Additional information regarding these factors can be found in the company's latest SEC filings. In addition to our press release, we have added a financial supplement which is available on the Investor Relations Page at Life Storage. During today's question-and-answer session, we ask that all of our participants limit themselves to two questions to allow time for everyone who wishes to participate. If you need to ask a follow-on question, please re-queue. At this time, I'll turn the call over to Dave.

Executive
David Rogers

Thanks, Diane, and welcome, everyone, to our call. Last night, we reported adjusted FFO of $1.39 for the third quarter against a pretty tough year-over-year comp. Some comments on our results. We achieved record high third quarter occupancy on both a weighted average and quarter end basis of 92.7%. We grew our joint-venture portfolio with the acquisition of three high-quality properties in Atlanta, and we continue to add stores to our third-party management platform.

Perhaps, most importantly, we've made great strides, especially in the past couple of few weeks in improving the positioning of the Life Storage brand on the web. Of course, the big story in Q3 was the one-two punch of hurricanes Harvey and Irma. Almost 150 of our stores in the Houston and Florida markets were impacted, but most were back in business within days. However, seven - four wholly owned and three joint-venture stores were flooded and had to be taken out of service. We had customer goods removed and then the buildings had to be repaired, scrubbed and sanitized. We gratefully acknowledge the tremendous effort of our field staff in the affected markets. Notwithstanding that many were under great personal duress as their own homes and lives were upended, they and others from all over the company pitched in to help our customers and safeguard our stores.

As of today, six of the stores taken offline are back in business and renting to customers. One joint venture store remains closed. Andy will have more on the damages, financial impact and the upcoming changes to the same-store pool, but aside from the charges to cover the repairs, there was no effect on operating results in the quarter. We do expect a continued increase in demand for the next several quarters, especially in Houston,