Public Storage (NYSE:PSA) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 12:00 pm ET

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Public Storage (NYSE:PSA) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Executive
Tom Boyle

than what we saw in the second and third quarters, but we did have lower move-in volumes. The move-in volumes were down 3.5% in the quarter compared to roughly flat in the second and third quarter. So while move-in volumes were down 3.5%, we continue to be benefited by lengthening stays of existing tenants and continued very good performance by existing tenants. And so move-out volumes were down 1.5% as well. So continued good good trends there amongst initial or existing tenants, but the initial acquisition of customers remains challenging in this operating environment.

Analyst
Shirley Wu

Got it. Thanks guys.

Executive
Tom Boyle

Yes.

Operator
Operator

Our next question comes from the line of Jeremy Metz of BMO Capital Markets.

Analyst
Jeremy Metz

Hey, Joe. Hey, Tom. Joe, I wanted to go back to NSR. I understand you can't comment on the process here. I understand you can't comment on the process here and that's not where the question is related. I guess, as I think about what you have going on in the U.S., you have a lot going on in the developments and expansions. You've been increasingly active on acquisitions. You have the broader capex program, you initiated a while back, and that's still ongoing. You got some tech initiatives. We all know about supply in the market, the pressure on revenues and expenses. I guess, you take all that together, why would now be the time to look to make a move outside the U.S. in a big way?

Executive
Joseph D. Russell

Well, Jeremy, I appreciate, and you did a good job characterizing the variety of things that we're looking to do from a capital allocation standpoint. So as an entity, we have and always will be inquisitive along a number of different fronts, whether it's within our borders here or where opportunities may lie outside of our borders. You can see that from, obviously, the investment that we made into the Shurgard platform a number of years ago. We have talked over the years about, again, the outlook and the desire on our part to continue to vet and understand markets outside of our borders. And with that, we're going to continue to look for those opportunities as they arise. Looking at the things you talked specifically about, yes, we have had over the last year, in particular particularly, strong uptick in the amount of volume that we've done, particularly tied to acquisitions. We're seeing a healthy amount of attractive opportunities that continue to lead to the kind of volume that we did in 2019 where we bought approximately $430 million of acquisitions, 44 separate properties.

And again, that's higher than the volume that we've done in the prior four years. So we continue to vet and leverage our relationships, leverage the amount of opportunities that we're seeing out in the market, and we're seeing good trends. We also have a decent backlog of acquisition activity going into 2020. So we continue to be equally focused on everything that happens right here within the United States. And then from