Life Storage, Inc. (NYSE:LSI) Q4 2022 Earnings Call Transcript

Michael Goldsmith: Got it. And just one more for me. You did a really nice job outlining your thoughts on the proposed acquisition and your case here. Have you received any approaches from any other interested parties?

Joseph Saffire: Michael, I can’t comment on that.

Operator: We will take one more question and your question is coming from Jon Petersen at Jefferies.

Jon Petersen: We just made the cut. Question on the margin. So I know some of your peers, I guess, Public Storage specifically breaks out direct and indirect expenses as part of their operating expenses. Can you just help us definitionally what do you guys put in OpEx? What do you put in G&A? And any commentary on how that differs from your peers would be helpful?

Alex Gress: Well, I won’t — it’s Alex. I won’t comment, obviously, on the peer definitions. For us, in our same-store NOI margin, it’s really direct operating expenses at the store level. Obviously, the payroll, property tax benefits, internet marketing, those utilities, those are the obvious line items. We don’t include in their supervisory costs. So our regional managers, our AVPs, our RVPs, centralized costs come out into our G&A.

Jon Petersen: Okay. And then maybe if I could just ask one more question on — since it’s the last one, on where we’re at, kind of in the process? Are you — are you — I know you hired bankers? Are you running a process? Are you actively considering all sorts of opportunities? Or it almost seems like the way you presented it you got this bid from PSA, not good enough, you’re just moving forward business as usual. Like how should we think about how you guys and the Board are evaluating maximizing shareholder value right now? Does it go beyond just operating the business?

Joseph Saffire: Well, as CEO, I’m executing on our strategy, to be quite honest. But as we’ve said a few times now, the Board is always open to and will regularly evaluate opportunities to enhance shareholder value as and when they come. I can’t really say more than that.

Operator: I will now turn the call over to Joseph Sapphire for closing remarks.

Joseph Saffire: Okay. Well, thank you, everyone, for joining us today. We look forward to continuing to engage with our shareholders as we focus on driving strong shareholder value. Please follow up with Brent, if you have any additional questions related to the unsolicited proposal.

Operator: This concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.