Joe Margolis: Sure. So right now, about half of our customers, a little more, 51% of our customers tell us that they’re moving. I mean they’re buying a home, right, 45% of those 51% are moving from apartment to apartment. That was — the peak of that was 61% in the third quarter of 2021. So my — we don’t have enough data, right? We can only ask so many questions and have the tenant answer the surveys. My gut tells me fewer people are moving because they’re buying a house, but more people are moving because they’re renting house or because they’re moving apartment to apartment or for other home transition reasons. So down somewhat from the peak, but still a meaningful portion of our customers.
Ronald Kamdem: Great. And then my second question was just on the guidance. There was a lot of moving pieces from sort of the first quarter, the initial guidance and the guidance that you gave today. I know you reiterated, but interest costs are higher interest income is also higher and so forth. And then if I think about where you are in 1Q on the same-store NOI, whether it’s a legacy EXR or LSI, it seems like the EXR portfolio needs to decelerate to get to the middle of the NOI guidance, while the LSI will accelerate. It just — I guess when you — the question is really was the lack of the raise, yeah, there’s a peak leasing season aspect of it too, but is it just there’s so many pieces that are changing right now that it’s hard to like the range of outcome is still so wide that it’s hard to have conviction in raising? Thanks.
Scott Stubbs: So we have not seen anything that is significantly different than what we saw 60 days ago. So that’s really the catalyst for us, not changing again. In terms of the items that we did change, they were interest rate based, which we changed our SOFR assumption from 4.75% to 5.2%. That’s based on the forward curve. And when you obviously lock into that or update your guidance. And then we updated it for volume of bridge loans and a small change in our management fees. All of those netted to a very small delta, which caused your FFO to stay the same. But we really don’t have the information yet to be able to give strong conviction that things are better or worse than what we originally estimated for our properties.
Ronald Camden: Thanks so much.
Joe Margolis: Thanks Ron.
Operator: Thank you. Our next question comes from Eric Luebchow with Wells Fargo. Your line is open.
Eric Luebchow: Great. Thanks for the question. I know you talked about the current gap between LSI and EXR for new customers, but any color you could provide on the gap between the in-place customer at those two? How far apart they are? And how long you think it will take to get to the target to hit your revenue synergies?
Scott Stubbs: You’re talking the gap on the specifically the Life Storage tenants. The negative roll down or which gap you were talking about?
Eric Luebchow: I was talking about like the in-place rental rate per square foot gap.
Joe Margolis: So when we underwrote this deal we looked at this in a number of different ways. And I think the most meaningful way is we found 109 Life Storage stores that had an extra space competitor of like type, right, multistory climate control or whatever it was similar type within the trade area, and we compared rates of those stores. And right now that gap is about 8% between those stores. We also looked at it at a portfolio level and at a market level and different. But I think that kind of like-for-like store is the best comparison.
Eric Luebchow: Okay, great. That’s helpful. I know we touched on this in a few different questions. But as you look generally at the supply picture across many of your markets, do you think based on construction starts things will improve even more into 2025? And are there any markets that you’d highlight that are still you think we’ll continue to deal with elevated levels of supply whether that’s like a Phoenix, Atlanta, a few markets in Florida you touched on as well that would be helpful? Thanks.
Joe Margolis: Sure. So we look at supply by looking at our same-store pool and how many stores within our same-store pool will have new supply delivered. In the first quarter, 3% of our same-store pool stores had new supply delivered in their trade area. And that’s right on our estimate of 11%, 12%, 13% for the year that’s down 30% from 2023 deliveries. I think the headwinds to development, equity dollars, debt dollars, debt costs, construction costs, entitlement periods, all the things that are making the ability to put together a pro forma with rent growth in it, I think all of those items are going to continue to provide a headwind to self-storage development. There certainly are markets Northern New Jersey, some of the Florida markets that do have new supply issues and we’ll have to work through those.
Eric Luebchow: Thanks for the questions.
Operator: Thank you. Our next question comes from Michael Mueller with JPMorgan. Your line is open.
Michael Mueller: Yes, I have a follow-up question on LSI and kind of a sequencing. Talked about potentially closing the occupancy gap this summer and then kind of moving closing the rate gap maybe in the second half of the year. And I guess the question is, when you’re talking about closing the rate gap, are you talking about resetting pricing and then starting the process of letting them flow through the system? Or say by year-end you could be a parity in-place portfolio to in-place portfolio?
Scott Stubbs: It’s — Mike it’s really a combination of both. The first thing you had to move is the street rates or your achieved rate coming in. So, it’s at parity with the Extra Space. So, the new customer would then be paying the same amount than the other differential in the achieved rate — or I mean in your rent per square foot that’s at the store, that will come over time as we do existing customer rate increases.
Michael Mueller: Got it, okay. Understand. Thank you.
Operator: Thank you. Our next question comes from Omotayo Okusanya with Deutsche Bank. Your line is open.
Omotayo Okusanya: Yes. Good afternoon. First question is just around ECRIs. I’m taking a look at your revenues per occupied — kind of in the 20s. Again so that means a typical time by 10 units someone’s streaming like $220 a month, which isn’t an insignificant bill. I mean probably outside of your mortgage and your card payments is probably one of the higher bills one would be paying. So, when I look at that I just kind of asked what is that ability to keep pushing ECRIs kind of 10%, 12%, 15% without that becoming such a huge piece of someone’s monthly payments that start to push back?
