Extra Space Storage Inc. (NYSE:EXR) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 01:00 pm ET


Extra Space Storage Inc. (NYSE:EXR) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Q2 2020 Extra Space Storage, Inc. Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. Jeff Norman. Thank you. Please go ahead, sir.

Jeffrey Norman

Thank you, Oren. Welcome to Extra Space Storage's Second Quarter 2020 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, August 5, 2020. 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'd now like to turn the call over to Joe Margolis, Chief Executive Officer.

Joseph D. Margolis

Thank you, Jeff, and thank you, everyone, for joining us on today's call. The second quarter presented unique challenges to our country, our industry and Extra Space. I am incredibly thankful to our employees who have continued to operate our stores, service our customers, grow our company, strengthen our balance sheet and to do all the day-to-day blocking and tackling that allows us to optimize our performance. All this good work was done in unusual and sometimes difficult working situations and often with added personal and family stress and uncertainty. It is said that crisis does not create character but reveals character. And I could not be prouder of the character the Extra Space team has shown during these past several months. This quarter also presented a stark reminder of racial injustice in our country. Approximately 40% of our teammates are black or other people of color. And I am proud that recruiting, developing and retaining diverse talent has been a focus of our company for many years and is not a new initiative.

However, the tragic events of the last two months reinforced to me that while Extra Space is a values-driven company with a great inclusive culture, we can do better. In response, we have enhanced our existing diversity and inclusion initiatives and have taken several concrete steps to improve as a company. These steps are consistent with our company values. And I'm committed that our response will not be limited to making statements or temporary steps, but we'll be continuing and substantive. Turning to our performance in the second quarter. Most importantly, we were able to grow FFO in the quarter on a year-over-year basis. We have started to see several positive trends on which Scott will provide further detail. Our platform is able to find and capture high-value