“We ended the quarter in a place where contract rents would be growing at the start of April at a similar level. So I think — we’ve been encouraged by customer trends… really a combination of a tougher move environment, balanced really by continued good performance by existing tenant base.” Those thoughts are according to Public Storage CFO, Tom Boyle.
On the REIT’s Q1 earnings call, Boyle noted that “in our existing tenants, we see move-outs down and length of stay modestly increasing and there are all being supported by a strong labor market out there in the broader macro economy.” He added that he has seen good operating trends and reasonable a steady contract rent growth and occupancy through the quarter.
Up next was Joe Russell, CEO, who noted that the other things that the REIT has been seeing and is pleased to see is, “we’re maneuvering through and navigating through what continues to be commanding arena of new supply in certain markets, some of that’s been shifting out of markets that have been more heavily burdened say over the last two or three years.”
Russell added that while “We still got other markets ahead of us that are likely to see somewhat similar impact going into ’19 and 2020. But we’re feeling better and we like what we’re seeing relative to the traction and the capabilities that we’re putting into many parts of the business to maneuver through this environment.”