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TheStreet Open House

Extra Space Storage CEO Discusses Q3 2010 Results - Earnings Call Transcript

Karl Haas

Thanks Spencer. During the quarter we achieved same store net operating income growth around 7.8% driven by both top line growth and by improving operating efficiencies. Occupancy ended the quarter at 180 basis points compared to last year, 180 basis points above to prior year. With improved occupancy and similar pricing compared to the prior year, combined with decreases in bad debt and discount, we achieved 3.9% same store revenue growth this quarter. While the market is still challenging, we are seeing rentals and vacate comparable to prior years.

We’ve experienced some softness in the pricing to new customers, but continued to have strong pricing power with existing customers. On the expense front, we benefited from the successful tax appeal in 2010 and improved operational efficiency. We’ve continued to aggressively manage all expense categories achieving a 2.6% reduction in controllable expenses.

An example of our operational efficiency is in our customer delinquency mailings where through our relatively simple modification we have reduced our expense almost 50%. Through focus on uses in reductions and retrofits, we are also seeing our utility expenses stay under control and expect even to have more savings as we get further into our retrofit programs.

We continue to push on all of our operational growth levers, but recognized that there are challenges that will likely make our recovery in a moderate way. We will also maximize all opportunities and expect to produce the possible results. In short we will make the most of what the market offers. With that, I would like to turn it over to Kent.

Kent Christensen

Thanks. Last night we reported FFO per share of $0.24 including $0.03 of development dilution and a $0.02 charge related to the write off of a long term office lease with a subtenant that we assumed in the acquisition of Storage USA in 2005.

Read the rest of this transcript for free on seekingalpha.com

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