Good day, ladies, and gentlemen, and welcome to the Life Storage Fourth Quarter Earnings Release. At this time, all participants have been placed on a listen-only mode, and the floor will be opened for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Alex Gress, Vice President of Life Storage. Sir, the floor is yours. Good morning, and thank you for joining us today for the Fourth Quarter 2021 Earnings Conference Call of Life Storage. Leading today's discussion will be Joe Saffire, Chief Executive Officer of Life Storage, and Andy Gregoire, Chief Financial Officer. We're also joined in the room here today with David Dodman, Chief Operating Officer. Following prepared remarks, management will accept questions from registered financial analysts. As a reminder, the following discussion and answers to your questions contain forward-looking statements that are subject to risks and uncertainties and represent management estimates as of today, February 25, 2022. The company assumes no obligation to revise or update any forward-looking statement because of the changing market conditions or other circumstances after the date of this conference call. Additional information regarding these factors can be found in the company's public SEC filings. In addition to the press release distributed yesterday, we furnished our supplemental package with additional detail on our results, which may be found on the investor relations section on our website at lifestorage.com. As a reminder, during today's question- and- answer session, we ask that you please limit yourselves to two questions to allow time for everyone who wishes to participate. Please requeue with any follow-up questions thereafter. At this time, I'll turn the call over to Joe. Thanks, Alex, and good morning, everyone. I am pleased to report an outstanding fourth quarter, during which we averaged 94.2% occupancy, which is 110 basis points higher than last year. Average asking rates for the quarter were 26% higher than the same period from last year, and we continue to see strong demand and pricing power through most of our markets. For the year, in addition to an outstanding operating performance, we also achieved record acquisition volume closing on $2.3 billion in wholly owned and joint venture acquisitions, which added 144 properties to our platform. Of this amount, $1.7 billion and 112 stores were wholly owned acquisitions, representing nearly a 20% growth in our wholly owned portfolio. These acquisitions represent a nice mix of both markets and maturity, with about 25% still in lease-up and approximately 75% in the Sun Belt markets. We continue to expand in key markets such as Austin, Atlanta, Tampa, Miami, Phoenix, San Diego, and New York City. Despite 25% still in lease-up, we expect to achieve a blended year-one cap rate in the mid-four range. Today, we own and operate just under 1,100 storage facilities across 35 states. With regards to third-party management, on a gross basis, we added 29 stores in the fourth quarter and 103 stores for the year, with a total of 367 stores at the end of 2021. This portfolio of managed stores continues to provide a strong pipeline of acquisitions as we acquired 31 managed stores during the year, representing nearly 1/3 of our wholly owned acquisition volume. We are off to a strong start in 2022, with January month-end occupancy of 93.6%, which is 80 basis points higher than January 2021. Asking rates for January are up 26% year- over- year. Similar to last year, we are also starting off the year with a very strong acquisition pipeline, with $483 million already closed or under contract. With regards to guidance for 2022, we estimate our adjusted funds from operations per share to be at the midpoint of $5.98 for the year, which would be 18% growth over 2021. Before I hand the call over to Andy, I am proud to announce that Forbes Magazine has recently named Life Storage as one of the best midsize employers for 2022. We have also been recognized by Sustainalytics for our environmental, social, and governance efforts as an ESG regional top-rated company. Lastly, just last week, I recently joined over 2,000 other CEOs in signing the CEO Action Pledge for Diversity and Inclusion. With that, I will hand the call over to Andy, who will go into more details on our performance for the quarter and the year and also our 2022 financial guidance. Thanks, Joe. Last night, we reported adjusted quarterly funds from operations of $1.41 per share for the fourth quarter, an increase of 31.8% over the same quarter last year, and well above the high end of our guidance. The sequential increase in FFO from Q3- Q4 was a result of excellent same-store performance and acquisitions performing above our expectations. Fourth quarter same-store revenue increased 16.9% year-over-year, driven by rental rates and occupancy gains. Though we did see the return to normal seasonal trends in the past couple of months, we remain highly occupied, with average same-store occupancy up 110 basis points compared to the same quarter last year. This elevated occupancy has allowed us to continue to be more aggressive with rates on new and existing customers, leading to a significant increase in our in-place rates per square foot. Same-store achieved rates were up 15.2% year-over-year in the fourth quarter, representing the continuation of substantial acceleration in achieved rates from 1% in the first quarter to 8% in the second quarter and 14% in the third quarter. Same-store operating expenses grew only 1.9% for the quarter versus last year's same quarter. The largest negative variances occurred in marketing costs, office, and repairs and maintenance expenses. These increases were partially offset by a 3.2% decrease in real estate taxes and a 2.2% decrease in payroll and benefits. We were able to successfully challenge property tax assessments and also received over $1 million in refunds on previously paid property taxes. The net effect of the same-store revenue and expense performance was a 410 basis point expansion in quarterly net operating income margin to 72.4%, resulting in 23.9% year-over-year growth in same-store NOI for the fourth quarter. With this improved performance, we again increased our dividend 16% in January as we continue to share growth in FFO with our shareholders. This increase follows our 16% dividend bump this past October. Turning to the balance sheet. We supported our acquisition activity and liquidity position by issuing equity securities and closing a bond offering during the fourth quarter. Specifically, we issued an additional $212 million of common stock via our ATM program during the quarter and closed on $600 million of 10-year, 2.4% senior unsecured notes that priced in late September. Our net debt to recurring EBITDA ratio was 4.5 x at quarter end, down from 5.4 x at the same quarter end last year. Our debt service coverage increased to a healthy 5.5 x at December 31st, up from 4.7 x from the same quarter end a year ago. We had $500 million available on our line of credit at year-end, and we have no significant debt maturities until April of 2024, when $175 million becomes due, and our average debt maturity is 6.8 years. In addition, at December 31st, 100% of our debt was fixed rate. Regarding 2022 guidance, we expect same-store revenue to grow between 9.5% and 10.5%, a majority of which will be driven by improved rental rates. Excluding property taxes, we expect other expenses to increase between 4.5% and 5.5%, while property taxes are expected to increase 6.25%-7.25%. The cumulative effect of these assumptions should result in 11.5%-12.5% growth in same-store NOI. We expect our wholly-owned acquisitions to be between $550 million and $650 million. Based on this outlook, we anticipate Adjusted FFO per share for 2022 to be between $5.93 and $6.03, or 17.9% growth over the prior year at the midpoint. With that, operator, we will now open the call for questions. Thank you. Ladies, and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star one on your phone now. We do ask that if you are listening by a speakerphone, that you please pick up your handset for optimum sound quality. If you wish to leave the queue, you may press star two. Once again, if you have any questions or comments, please press star one on your phone now. Our first question today is coming from Todd Thomas at KeyBanc Capital Markets. Your line is live. You may begin. Hi. Thanks. Good morning. Question, first about the first quarter, FFO guidance. I'm just trying to get a handle on the run rate coming off of the fourth quarter a bit. So first quarter guidance, $1.36-$1.40 relative to $1.41 in the quarter. I know there's some seasonality, but you have the full benefit of the fourth quarter acquisitions. The third-party management platform was steady. It actually grew a little bit overall sequentially. Just curious, maybe if you can talk about where we might expect to see the run rate pull back. Sure. Good morning, Todd. It's Andy. The first quarter, a couple of things. We had such a benefit in the fourth quarter from property taxes, some $3 million benefit in the fourth quarter. Obviously that goes away in the first quarter. That's probably the biggest issue in the first quarter compared to the fourth quarter. Besides that, we have our normal property tax increases year-over-year, payroll and benefits. It's a big time of year for snow removal, obviously. That's normally the big difference between Q4 and Q1, those few items. Okay. Are you able to share where occupancy is today in the portfolio and what that looks like year-over-year? Andy, can you provide a little bit of context around the occupancy assumptions that the guidance you know assumes throughout the year? Maybe talk about what you're anticipating you know for occupancy, you know peak you know during the peak rental season and maybe peak-to-trough back half of the year? Sure. Yeah, today we're at 93.7%. It's about 50 basis points above last February at this time last year. A slight decrease from January. January, we had an 80 basis points gap, so that's where we are today. Our guidance assumes our occupancy matches up with last year in the summertime, so we peaked out at just below 96% last year, and that's what our guidance assumes we do. We expect in our guidance that the peak to trough is a little bit steeper in the guidance versus 2021. July was our peak last year through December. It was 210 basis points, and we're slightly more than that decreasing in the guidance. Okay. That's helpful. Just one last question or maybe a clarification. If we look in the supplement at the 4.5 x leverage on a net debt to recurring EBITDA basis, does that take into account and adjust for the acquisitions completed in the quarter? Yes, it does, Todd. Okay. All right. Great. Thank you. Welcome. Thank you. Our next question today is coming from Elvis Rodriguez at Bank of America. Your line is live. You may begin. Congrats on the quarter and year, guys. Quick question on the external growth. Joe, perhaps you can share the strategy around guiding to $600 million, yet you're almost at $500 million in deals through February. Can you talk about what you're seeing? Are deals drying up, or what are you seeing on the external market? Is it pricing that's giving you pause on coming out with a larger acquisition guidance? Thanks. Sure. Hi, Elvis. You know, it's always something that's really difficult to predict despite coming off, you know, a record year and, obviously some real large portfolios that came to market. You know, right now we're not seeing really any of those large deals come to market. It has been a little quiet from a broker perspective. We're fortunate that we've been working on a number of deals that we've been able to get under contract for the first quarter and have a nice pipeline, but it's getting a little bit more. It's always difficult to predict and I think just with the uncertainties of cost of capital and rising interest rates and, you know, some uncertainty out there, it's just a little bit more difficult. I think we'd probably be a little bit more comfortable if we saw some more portfolios come to market. Not that we would, you know, necessarily win them, but it has been a little bit of quiet. We've seen a little bit of, you know, quietness from that perspective. You know, we feel comfortable with the guidance. Obviously we'll adjust it as we did last year if things pick up. We'll focus on what we have under contract and try to get those, you know, closed by the end of the quarter. Just, if I may, on the micro-fulfillment business, are you able to share, you know, sort of your outlook for store openings there this year? You know, any potential for you know, Life Storage to share more disclosure on that business in the future? Thanks. Yeah. The micro-fulfillment, obviously, that's the newer piece that we've been working on for the last, you know, 12, 18 months, the what we call the Lightspeed product, and that is the e-commerce solution for smaller and medium-sized companies. You know, last year was really building out, you know, the national presence, so we've got Atlanta, Vegas, Chicago, Columbus. We just opened up L.A. this month, and we really at this point want to see how we do with acquiring customers and attracting customers in that space before we really start building these out a little bit further. It's still in a beta phase in my view. It's a great feature. Obviously, demand is out there. There's a lot of competition for it. We're fully occupied, which, you know, we're not in a hurry to build out 7,000-8,000 sq ft of spaces when we're fully occupied in most of our stores. We feel pretty good about what we're doing. I think this, you know, first six months of the year, we'll see how we do in attracting customers. We've been successful at it. We had over, I think, nearly 30,000 shipments in December. And, you know, obviously a Christmas peak. In January this year, we're up about 35% in shipments. The business is growing, but we're not yet there to do, you know, full ramp up of the micro-fulfillments just yet. We wanna see what 2022 turns out in terms of attracting customers. Great. Thanks for the update. Mm-hmm. Thank you. Our next question today is coming from Samir Khanal at Evercore. Your line is live. You may begin. Hi, Andy. Just curious on some of the breakdown for expenses for next year. You provided a little bit of color on property operating expenses, but just trying to get a little bit of understanding on some of the other line items. Sure. Samir, you know, payroll is, you know, we're seeing some pressures on that line item in the same store group. So you're probably 4%-5% is a good run rate there year-over-year. Marketing, about 8% increase is what we're looking at. I think we detailed what we're looking for for property taxes, 6.25%-7.25%. And utilities probably 5% is in the budget. Otherwise, everything is pretty much in the 2%-3% range. Got it. Joe, just shifting to the acquisition pipeline. I know, you know, you talked a little bit earlier, but just in terms of maybe give us an idea of sort of the markets you're focused on. I know you're, you know, you've been sort of active on the West Coast as well, but certainly more in the Sun Belt markets now. Trying to understand where the focus is and sort of what the pipeline looks like for you. Yeah. Well, I just touched upon the pipeline, obviously a pretty decent one that we're working through right now, Samir. Obviously, our strategy for the last few years is to, you know, find deals in markets with strong demographics and strong street rates. That really has been the focus. The Sun Belt, obviously, is an area we like. We were really successful last year with 70% of our properties in the Sun Belt, especially, you know, Florida markets have been, you know, we found some really nice deals there. For the year so far, you know, California, we were a little bit light last year. For the, you know, our pipeline right now, we closed on six in California, and we have another three under contract, so a real good start for us in those markets, which are always areas that we wanna add scale to. Other than that, Samir, it's the usual markets that we'll, you know, be opportunistic. If there's good opportunities and, you know, especially with our managed portfolio, if an owner's ready to sell and we're in that market, we'll gladly bolt on to any of the markets we're currently in. Yeah. Just as a follow-up, do you get the sense that there is less portfolio deals today? I know there was a few last year, but kinda what's the sense in portfolio deals versus one-off this year? Yeah. I mean, it's still early, right? It's still early in the year. I think last year, you know, the industry saw the Big Easy Storage deal come out, and it took some time, and then some of the larger ones came up. You know, I think in general, you know, we haven't seen, you know, in the $100 million-$200 million range portfolios, we haven't seen a ton of those. For us, it's really been blocking and tackling and doing a lot of one-offs for, you know, 25 or so we have currently in our pipeline. Got it. Thanks so much. Thank you. Our next question today is coming from Juan Sanabria at BMO Capital Markets. Your line is live. You may begin. Hey, guys. Maybe just with the clarification, I think you said that for the acquisitions, I wasn't sure if it was fourth quarter for 2021 as a whole had cap rates for lease-up with a mid-4% blended yield. If that was for the year, if you could provide us with both that similar number in terms of lease-up and yield, year one yield expectations for the fourth quarter deals as well as kind of what you have executed on so far to start 2022? Sure, Juan. Yeah. The 4.5% was the blended cap rate for the full year. I don't believe the fourth quarter was really anything different from that. In the first quarter, it's more about a 4% cap, the blended yield, so a little bit tighter. Again, nine of those are in California, so you typically expect a lower cap rate in those markets. The mix is still roughly about 25% of what we have for the first quarter of lease-up versus stabilized. You know, they get a 4% cap, it still should be accretive in year one for us. Okay. Then I was just hoping maybe you could talk a little bit about supply and how your markets are trending if you think about your expectations in 2022 versus what you saw in 2021. In the kind of the intro you talked about most markets seeing strong demand. I'm just curious if there's some markets where you're starting to see maybe a quick normalization, if there's any commonalities with those, maybe not as quite robust markets, given that everything's still strong, but maybe some not quite as strong as others. Yeah. I mean, we've. You know, I think for the last couple quarters, we've anticipated that 2022 would be pretty flat to 2021, and our our view on that hasn't changed. We still see about 150 or 160 stores in our markets being delivered. That was kind of the number in 2021, and we are still expecting that similar amount in 2022. You probably heard on some other calls, it's just, you know, from a developer perspective, it's not easy, right? There might be demand, but, you know, things are taking longer to get entitled. The cost of construction is much higher. So I think some of that is holding off a wave of too much new supply. Really, you know, the markets that, you know, of our markets that we kind of watch with, you know, 10 or more stores, you know, it's the usual suspects, you know, currently Vegas, Phoenix, Orlando, that, you know, we're watching more closely. New York City a little bit, but that's a bigger geographic footprint for us, so we're not too concerned. Really 2022, you know, we've been consistent that we feel it should be a pretty good year in terms of supply. Nothing that we're too concerned about. Thank you, guys. Mm-hmm. Thank you. Our next question today is coming from Smedes Rose at Citi. Your line is live. You may begin. Hi. Thanks. I just wanted to ask a little bit about the financing of acquisitions going forward, just with the year-to-date pullback in shares. Should we assume that you would maybe use more debt at this point versus equity? Yeah. Smedes, if you look at how we funded 2021 acquisitions, with a combination of the ATM, a bond deal we did, and the OP units we issued, we had some 70% of our funding in 2021 was through equity. We're in a great spot. We're starting the year with $170 million or so of cash. Yeah, it would be a year of more leverage, but we do expect a mix, and I would in modeling out probably 35%-40% equity and the rest would be debt. Okay, thanks. I wanted to ask you, too, on the property tax expectations. It was just a little higher than what we were looking for. Maybe we were just low, but I'm just wondering if there are any particular markets where you're seeing more pressure on property tax versus others. Yeah, you know, obviously, the benefit we received in the fourth quarter, we had some great wins on some of the assessments and some refunds. Makes it for a tougher comp. Yeah, I would think probably that 6.8% or midpoint is higher than people would expect. But we're seeing some pressure in, you know, North Dallas, Collin County, Cuyahoga County in Ohio, the Atlanta area, and Cook County is a constant on our radar. Virginia also. Those are the ones we're seeing more pressure on the property tax line in 2022. Okay. Just my last question, are you seeing any changes in the way that customers are renting? Are they coming back more in person? Are they still using the touchless app, I guess, that you guys introduced? It's really held steady at around 30-35% for a while now. You know, that's a good thing. It hasn't gone down. You know, prior to COVID, it was more like 10-12%. It really has leveled out. You know, we're still working on some projects internally to try to get that number up. You know, I think we will probably achieve some momentum to get more customers to do it online. It may be just a little bit more of kind of getting them more to use Rent Now. Obviously, with our stores open and people more comfortable, you know, the tendency to go in and talk to someone at the counter is still there. But we still think there's opportunity to improve that. Okay. Thank you, Joe. Okay. Thank you. Our next question today is coming from Keegan Carl at Berenberg Capital Markets. Your line is live. You may begin. Hey, guys. Thanks for taking the questions. First, just on the business customer side of things, can you maybe give us some comparison on how the demand levels would compare relative to the start of 2021? You know, obviously, business customers have always been using self-storage, Keegan. Obviously, we have a strategy to attract more of them. We like them. There's a lot of reasons we, you know, have been doing Warehouse Anywhere to attract more businesses. The demand has been growing. It's hard to put a number on it, but just with, you know, the increase in getting goods, you know, for the last mile, build up of inventory because of COVID, we have seen a tick up in business customers, which is a good thing. What we're trying to do is, you know, make it a little bit more easier for a business to choose self-storage. We're giving them the tools that they need, whether it's, you know, a forklift, inventory tracking, pick, pack, and shippers, that sort of thing. That's really what's behind Warehouse Anywhere, providing the tools to attract more businesses to use our stores and our partner stores in the long run. It's walk before you run. Obviously, we're building out the micro-fulfillment centers. You know, we got the regional distribution that I talked about a few minutes ago, and we'll see how we do with that. But in terms of our enterprise product, you know, attracting larger companies in the medical device field or in the field service industry, you know, that's really what they need. They need connections to ERP systems. They need inventory tracking and so forth. Those are the tools that we've been working on for the last few years. Obviously, that'll help us attract more businesses in the future. Got it. Just kind of on the topic of conversation on Lightspeed, you know, I know it's kind of tough to answer this, but can you maybe give us an update on how it's trending relative to your initial expectations as far as lease-up and demand? Would you say it's you know, above, in line, or below? I would say it's what we expected. We knew we had to get into this business, you know. To get into this business, you have to first build out the foundation, and that's what we really focused on in 2021. Really now it's spending a little bit of money on marketing to attract those customers to your proposition. There's a lot of competition in that space, you know, if you take a look at it. We think we have a very good solution. We don't need to win too much market share. Obviously, we wanna fill out the micro-fulfillment centers and we're doing that slowly, but there's still capacity, and there's still opportunity. We wanna, again, walk before we run this year, attract some more customers, and then, you know, it's quite easy for us to start rolling these things out. If we need a second one in Chicago or if we need a, you know, a new one in Dallas, we can do that relatively quickly. But I like where we are with this business. Let's see how we do. Let's see if we can compete, and then we'll go from there. Got it. Thanks for your time, guys. Sure. Thank you. Once again, ladies, and gentlemen, if you have any questions or comments, please press star one on your phone now. Our next question is coming from Mike Mueller at JP Morgan. Your line is live. You may begin. Thanks. Hi. Just a quick one. What's the typical occupancy profile of the lease-up assets that you're buying? And when you look at the product that you're under contract for in 1Q, what's the rough average occupancy there for those assets? Sure. Typically, we like to buy. When we say lease-up, it's typically later in lease-up. I would say between 50% and 80% occupancy is the typical range. We don't. You know, we might do an occasional C of O where it might make sense, but you know, we don't wanna take too much dilution early on. I think the first quarter is roughly about that. Of the lease-up to 25% or so that are in lease-up, it's in that range. Got it. Okay. That was it. Thank you. Okay. Thank you. Our next question is coming from Kevin Stein at Stifel. Your line is live. You may begin. Hey, good morning. I was just wondering if you had how many% or what% of customers are below street rate right now and how that compares to last year? Yeah, Kevin. About 50% of our customers are below the street rate, and that's about 10% more than were a year ago at this time. Okay, thanks. Welcome. Thank you. We have no further questions in the queue at this time. I will now turn the floor back over to management for any closing remarks. Well, thank you, everybody. Appreciate you taking the time to dial in this morning. For those who asked questions, we appreciate it. We look really forward to heading down to the conference in Miami in a few weeks and finally seeing some of you face-to-face. Thank you. Thank you, ladies, and gentlemen. This does conclude today's event. You may disconnect at this time, and have a wonderful day. We thank you for your participation.