when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Wes Galladay with Baird. Wes, please go ahead.

Hey everyone, just a question on the acquisition pipeline that you're seeing. Are you expecting to transact around a similar cap rate of the 5.9 that you did in the quarter?

Yeah, well, the answer I think is, you know, yes. I think that's kind of what our target is. I think if I step back, I want to kind of reinforce that, you know, we do believe this is a solid, you know, acquisition cycle. It is here. And it's driven by primarily individuals that have built or bought during COVID heyday. And now a lot of them are, quite frankly, over their skis. And so this result is a wave of high-quality properties that are coming up for sale because owners are effectively out of options. And so today we are seeing a lot of attractive opportunities out there on the stabilized front, U.S. and Canada. U.S. kind of at that mid five and a half, and it's more between a four to five, I would say, in a lot of the Canadian markets. Pricing, though, I think in broker market acquisitions are still a little high. I think there are deals out there. I think a lot of off-market deals seem to be the most attractive right now if you can find those. Given where we sit in leverage, which I think is incredibly important to kind of address with respect to that question, we did reduce our cash flow leverage again this quarter, even while deploying capital. And so we have raised our full-year capital deployment guidance to between $55 million and $75 million range. And we definitely have room to be more active if the right opportunities, you know, present themselves. And so I do want to be clear that, you know, we're not going to just chase volume or size for its sake. You know, we're obviously focusing on acquisitions that can be accretive to the platform. And as we said before, we want to reemphasize, you know, $300 million of acquisitions actually move our market cap by about 10%. So that's meaningful growth for SmartStop, SmartStop self-storage, which, you know, is much different than our peers. They have to chase much larger asset sizes. And so it's an overall, I think, very solid acquisition environment. Okay, thanks for that.

And just one, I guess, housekeeping question. You do have a $2 million one-time fee that you're going to earn from the funds consolidating. Would that be included in your third-party management guide?

Hey, Wes, it's Korak. Yeah, so that'll be included in the managed REIT guidance, which falls under the managed platform.

And I would expect that to hit in the fourth quarter. and that and for what of course that was that was a consideration uh in the initial guidance as well all right i appreciate it thanks your next question comes from the line of victor fedev with scotia bank victor please go ahead thank you and hello everyone so your same story i margin expanded 150 basis points here a year up from 30 basis points last quarter so how much of that improvement is actually sustainable operating leverage from increased market density versus more temporary benefits such as insurance and repair and maintenance savings? And where do you see the biggest opportunity for farther margin expansion going forward?

Yeah, thanks, Victor. This is James. I'll jump in there. So just to touch on some of the savings we saw from an operating expense perspective in the second quarter, as we mentioned, it was on a number of line items. So payroll was there, repairs and maintenance, property insurance, and utilities as well. So in terms of what's structurally happening in those operating expense savings, obviously we had our property insurance renewal that occurred in April, and so that's part of a just general softening in that particular market, and that's going to carry forward through the rest of this year. In addition, repairs and maintenance, that was largely a comp consideration, although we are doing a good job of inspecting and expecting those dollars. I think the larger story is in the payroll section, right, where we were down about 2.3 percent for the quarter. And we believe that's part of the overall clustering story that we've been talking about pretty consistently about margins improving as we add. So one of the examples we like to talk about is in the Denver market in particular, our operating expenses were down substantially. It was almost entirely attributable to payroll. And if you notice, when we took over the Argus platform in October of last year, we increased our overall presence in that market by about four times, right? And so going from nine properties to over 50 between owned and managed is really helping drive some of those economies of scale and clustering that we've originally talked about.

Makes sense. And then my second question is on your assumptions for mowing rates and occupancy for the remainder of the year, and how can you end up being on the, for example, upper end of your AFF upper share range?

Hey, Victor, it's Korak. So I'll just kind of talk through some of the operating assumptions, not too dissimilar from what we talked about last quarter. So, you know, in terms of the move in rent trends and web trends, some markets, as you can see, have already turned positive. Other supply markets are still a little bit negative. We still think by the end of the year, by the end of rental season, you know, in that fourth quarter, I think we're going to start to see a broader inflection. From an occupancy standpoint, you know, slightly negative relative to 2025 based on where we're sitting today. And ECRIs, you know, add are better than 2025 levels, right, given the strength and the health of the existing customer. You know, our length of stay continues to increase and our bad debts are relatively muted. And then, of course, from a supply perspective, we've talked about this, but, you know, the supply impact continues to decrease through the rest of the year and into 27 and 28. In terms of, you know, talking about hitting the top end of our guidance, I'm just going to start on the revenue growth side because that's obviously the most material piece to the overall AFFO. So if you look back to 2025, and I'm going to talk a little bit about the cadence and then talk about the magnitude there. If you look back to 2025, our 3Q revenue growth was 2.5%, while 4Q was only up about 40 basis points. So a fairly lumpy year-over-year comp that we have in the second half of the year, which would in itself dictate, you know, the fourth quarter growth would be higher than third quarter. The other pieces that work there, of course, the Asheville Occupancy Comp, which laps on October 1st, and the California ECRI restriction lift that'll have a more positive impact on the fourth quarter than the third quarter. So again, those data points, just from a modeling perspective, would support a higher growth rate in the fourth quarter versus the third quarter. When you think about kind of the deceleration that you would calculate baked into the midpoint of guidance in terms of same-store revenue growth, I think one of the lessons that we've learned over the past 24 to 36 months in storage is that periods of volatility or choppiness can pop up, right? It happened a few times in 2025. It happened in March and April of this year with some geopolitical noise, right? This summer, we've been relatively unscathed, right? Knock on wood, of course. So if you think about, you know, our guidance this year, we're assuming, you know, that there is going to be some more periods of some volatility as we head into slow season here. we're assigning a probability that there could be some choppiness in the back half of the year. But I think if we don't get that volatility and we see a more normal offseason, I think we feel pretty good about hitting the top end of that revenue range. Again, that's the biggest piece of the overall FFO story. I think if you go down the individual line items, right, there's probably – if we get some acquisitions in the amount of trees, that can help out as well. But right now, we're pretty comfortable with the midpoint of the guidance. Got it. Thank you.

Thanks, Richard. Your next question comes from the line of Eric Libchau with Wells Fargo. Eric, please go ahead.

Thanks for taking the question. I wanted to ask a little bit more about Asheville. A couple of properties contributed as part of the eminent domain proceeding and the occupancy falloff, as you alluded to, is improving. So maybe you could talk about what you're seeing on the ground in Asheville. Obviously, I know the comps get easier in Q4, but what are your plans there to perhaps grow your presence over time? I know it was your best performing market, I believe, in 2025.

Absolutely. Let me let me kind of talk a little bit about the Asheville market and then I'll flip it over to James, talk about the kind of eminent domain and new development that we have. Many, you know, we've been in the Asheville market for a pretty long time. It's been about 10 years. And so we know that market incredibly well. And as you said, the Asheville was our best-performing market in 2025 with a 6% same-score revenue growth. We're obviously facing some tough occupancy comps in 2026, but the year-over-year occupancy gap has narrowed dramatically since December. And it's averaging down, as we've said, about 230 basis points year-over-year in the second quarter. And so occupancy currently is a solid 91, you know, 0.8%. The web rates in the market have been stronger than we've anticipated at the beginning of the year. And they're actually now positive year over year as we've moved into July. And so I think what we're seeing is a fairly traditional cadence of occupancy for a natural disaster, you know, of this kind. And now we've moved into kind of the post-natural disaster stabilized occupancy level. Overall, we still expect Asheville to be a relative underperformer in 2026, specifically through the end of the third quarter. Now, that said, the portfolio is performing slightly better than expected currently in July. James?

Yeah, Eric, as you mentioned, we did have two properties, and we disclosed this in our earnings release. We had two properties that were subject to eminent domain proceedings in Asheville. There was a large portion of one property, about 80% of that asset, that was taken in the second quarter, and a small portion of a second property that was taken subsequent quarter, and that was about 20% of that property. The way these proceedings work is that you receive an initial payment, and then there is a legal process to determine the final value for those pieces of land that are taken. In addition, the North Carolina Department of Transportation is coordinating with us to relocate existing customers in the affected buildings, and so some of that supply is coming The other thing that we wanted to note is, as you may recall, we did have a loss of a property as a result of the flooding that occurred. But we are excited to announce that in early 2027, we will be breaking ground to rebuild that asset. And this property will be about 83% larger than the original property that was destroyed. It's likely a late 2027, early 2028 delivery. So, you know, we are reinvesting back into this market with some of the supply that's coming back offline as a result of the flood and these eminent domain proceedings.

Thanks, guys, for that. And just one follow-up for me. Maybe we could just chat a little bit about Canada and the GTA market. I know that's also going through some pretty tough comps versus last year, but maybe you could talk about what you're seeing in terms of the fundamentals in Canada and once we get past these tougher comps, how you think growth will trend. And then related to that, one of your largest competitors is moving into the Canadian market through a pending acquisition. So, just wondering if that changes competitive dynamics at all or if you feel pretty confident in your trajectory there. Thank you.

Yeah, great question. Again, a lot of those questions. So, let me first just start by, you know, talking about our same-store portfolio. Our Canadian self-storage same-store portfolio, it consists of 13 season-stabilized properties, but they're all in the greater Toronto area. And as we say, the GTA, it represents about 1.1 million square feet. The same store revenue for this pool was down 1% on a constant currency basis in the second quarter, but we did have a tough comp at 2%. However, that was meaningful tougher than the United States. And so when you take a look at our joint venture properties with smart centers. We have 10 properties, 900 square feet. They're currently at 92.3%. And these skew towards more recently stabilized assets. Well, we were able to grow revenues at 6.7% and NOI growth of 9.4% in the quarter. So at the end of July, the GTA's same-store occupancy was 92.2%. Yes, it was down 60 basis points year over year, but it actually compares favorably to the U.S. And so for the full year, we do expect that the GTA will run modestly below the U.S. portfolio, primarily a function of tougher comps for 2025. The GTA delivered approximately 2.7% same-store revenue growth last year and about 100 basis points ahead of the US. So part of what we believe looks like relative softness this year is a flip side of the GTA's outperformance for last year. And quite frankly, the revenue growth in our GTA portfolio has been about three times that of the US portfolio over the last 36 months. New supply, we have to talk about in the GTA, we think it's peaked and will moderate over the next two plus years. We know that pretty well because SmartStop is the single largest developer in the market and which will certainly strengthen, I think, our foothold on the GTA. Now, in terms of demand, as you brought up, the Canadian consumer is pretty healthy. You know, our Canadian bad debt is currently less than half of the U.S. levels and improving year over year. Now, macro uncertainty tied to events like the war tariffs have caused some hesitation and delay in the rental decisions. And you concentrate that in only certain pockets. It's not throughout the GTA. There's certain pockets. But other Canadian markets are showing steadier trends. So for an instance, our Alberta portfolio has grown occupancy by 15% in the past, you know, two quarters. And so the structural demand drivers, such as aging and downsizing population, shrinking home sizes, and continued urban densification, it remains intact. Population growth, we believe, is expected to resume as the immigration policy normalizes. And we're also seeing, I think, a very unique environment as a window for disciplined external growth. We're evaluating currently numerous acquisitions and joint venture opportunities in this market. And so, look, we remain absolutely committed to the GTA and our growing Canadian portfolio. And I will also say that I want to emphasize our GTA portfolio is irreplaceable real estate that has been built over the past 16 years. Now, having said that, there's no question we're getting a lot of questions with public storage and their acquisition at PS Canada. And so I think my comments are that having another competitor like Publicum in Canada, I think it really just underscores, and it's a true testament to our Canadian vision and strategy. And it certainly validates why we entered this market 16 years ago. And so we've been competing with them in the U.S. now for the last 22 years. And so there's no question it's going to be a more competitive environment, but we welcome it. And that's one thing I think you can guarantee on SmartSoft self-storage is that we're competitors. And so I think we'll rise to the occasion. Great.

Thank you, guys. Your next question comes from the line of RJ Milligan with Raymond James. RJ, please go ahead.

Yeah. Good morning to you guys. Good afternoon. I wanted to follow up on the question about the margin opportunity. I'm just curious, how much more margin expansion is there available by pulling internal levers versus how much more margin expansion can you get through expanding scale?

Yeah, RJ, this is James. I'll jump in there. So as we've consistently said, you know, since our IPO, in pockets and in markets, MSAs, where we have those 10 or more properties, we tend to have margins that are about – that we see an improvement of about 300 basis points. And so, for example, with the Argus transaction, because I mentioned the Denver expansion, there were three markets where we tipped over that 10 property mark when we transitioned from September 30th to October 1st of last year with that onboarding. And so we still believe that there's a lot of margin expansion to be realized as those programs and those platforms continue to integrate and as we continue to grow both on balance sheet within joint ventures and within third-party management. And so that coupled with items such as property insurance renewals that are favorable, our solar initiative, which is ongoing and producing results in reduced utilities. So we continue to be driving on all aspects of that.

Well, and I would just add, if we continue to perform and outperform on our same-store pool, that will naturally contribute to additional margin expansion.

Thanks for that. And then you guys talked a little bit about the acquisition opportunities, but thinking about maybe other external growth areas. Can you maybe give an update on the bridge lending joint venture?

Hey, RJ, it's Korak. First of all, great to have you back in the world of self-storage. The lending access kind of pipeline for us remains very attractive. We've talked previously about a pipeline in excess of $100 million with target yields in the 10% to 14% range. typically structured as mezzanine or preferred. That pipeline remains. As of June 30th, we have a book of about $20 million, all pref at this point on six properties, all of which we have property management on. We closed another $3 million pref after the quarter end, and the blended yield of everything we have today is just under 11%. So we're actively also working on an A note, B note approach, or a stretch senior type approach, where we would sell off a 50% to 60% NLTV A note to another party. So really a broad array of arrows in the quiver for us at this point as the pipeline is really dictating both approaches. As we saw again this quarter, the platform tends to generate third-party management assignments on the underlying property. So really a symbiotic relationship there, creating really strong, attractive returns on a capital-like basis. Additionally, the program we expect will inherently create a natural pipeline for future acquisitions at some point. We like the risk-adjusted returns on these deals a lot, the deals we're going after, but are certainly sensitive to the quality of the underlying properties and the sponsor and the impact on leverage and, of course, overall earnings quality. But I think you'll see us take a more balanced approach to building out this program. That's great.

Thank you, guys. Your next question comes from the line of Spencer Glimcher with Green Street. Spencer, please go ahead.

Thank you. So pricing regulation specifically as it relates to surveillance pricing has become a real theme for the sector this year. And we've actually seen some regulation passed in New York. So I'm just curious how you're thinking about that risk to your revenue management systems. And then separately, just given how large your Toronto footprint is, are you guys seeing any similar regulatory moves in Canada at all?

Yeah, I'll touch on the U.S. in particular. I mean, obviously, we don't have any direct exposure to the New York City areas that were affected by some of the recent movements from a political perspective there. However, it's a topic we're consistently monitoring and evaluating and we're working with local self-storage association groups and task force to make sure we're staying abreast of everything going on. And that being said, I think it is it is important to note that everyone has their own proprietary pricing systems. Right. And so our algorithms are different than, you know, other publicly traded peers as well as private operators. And so we're making decisions on our own with our own systems that are constantly evolving and changing. And so and at the end of the day, this is still a month to month business structurally.

Yeah, I would also just add that I think there's probably some more risk with organizations using off-the-shelf pricing software that's aggregating a lot of different owners. I think that was one of the issues with respect that we saw kind of in the multifamily side. And so our overall pricing side is just taking into account supply and demand factors, not taking into account personal data from individuals that can be and are highly sensitive. In concert with that, we've seen in areas, let's say in Montreal, where there were some regulatory concerns with respect to how rentals were being offered up and their discounts and promotions. But as we went through that, what we've found, it was more or less about just making sure that you were transparent to the consumer with respect to your presenting what your price is, that the price can go up, and being clear on any additional fees in the first month and clear what the ongoing overall expense is going to be in the second and third month. And so I think as an industry, I think what I what I've seen, I think it's been amazing is that they're adapting to being as transparent as possible. And more importantly, as you have individuals that may have questions or concerns is having the proper culture, people and environment to deal with that on a one on one basis and not allowing people to to not have kind of a voice. And I think that, you know, the industry is doing a great job from that perspective.

Okay, great. Thanks for all of that color. And then I know you provided a lot of commentary and color on the expense side and the savings you experienced this quarter. Is there anything that's been kind of achieved on the AI side that's helping you with cost savings?

You know, as we said from an AI perspective, it's kind of one of our pillars within the DECA initiative, and that is something that's obviously continually evolving within our organization. There is no question that there are areas where I think we can enhance revenue, and I think there's areas that, you know, we can see some cost savings. I think that we're kind of in the early stages, you know, of addressing and developing the technology to do that. So I can't say that, you know, right now that we have implemented some of the AI strategies yet with respect to cost savings. And some of those, you know, have to do with, you know, from an accounting perspective, they do have to do with our call center. I think some of that is some of the low-hanging fruit. In addition, you know, kind of having an analysis of employees and hours and being able to kind of move individuals around appropriately, you know, within, you know, an AI kind of focused structure. And so I think some of those cost savings we're going to see, you know, over more of a, you know, midterm type of timeframe versus the short term. We've got to be very thoughtful. It's in, you know, we believe and we're all in on artificial intelligence, but we've just seen too often that some of these companies are just trying to sell, you know, axes and picks and shovels to people that are trying to find gold. And what we're trying to do is have a very thoughtful approach and making sure that every dollar that we spend, that we can follow it through to the ultimate savings and or revenue enhancement that we believe it can achieve.

Great. Thank you so much.

Your next question comes from the line of Todd Thomas with KeyBank Capital Markets. Todd, please go ahead.

Yeah. Hi, thanks. A couple of follow-ups, I guess. I wanted to go back first to the PS Canada and public storage transaction. I'm curious, you know, what the overlap is like with SmartStops Canada portfolio. And then do you think that PSA's ownership could lead to, you know, a different operating or revenue management strategy than you've historically seen in those markets?

Hey, Todd, it's Korak. So I'll answer the first question about the overlap. It's primarily all of our GTA portfolio, both in the same store and the joint venture pools there. So it's a decent amount of overlap, less so in the Alberta pools, but certainly in the GTA. In terms of strategy, Todd, I mean, it's really tough for us to sit here and comment on another company's strategy. We can learn from history, but we also, you know, don't know. It's a new market for PS, so we're not going to sit – I can't sit here and confidently, you know, call out what they're going to do or what the impact could be.

Okay.

And then in terms of, you know, some of the updates around July, I appreciate some of that. Heard the occupancy and, I think, web rates, but looked like, you know, move-in rents improved throughout the quarter. looked like June was a stronger month than what you reported for April and May. And I was just curious if you could talk about that a little bit and also what move-in rents looked like in July.

Yeah, sure, Todd. I'll start with the second quarter and then go into July. So the second quarter, we were able to hold web rates fairly steady. We were down about 3.5% year over year for the course of the entirety of the second quarter. We do have some new disclosure in the SUP, as I'm sure you've seen. So you can see the move-in rates per square foot for the quarter were down about 4.4% year over year. That is an apples-to-apples stat with the rent-off that we disclose in the SUP. And so that was an improvement from the first quarter. Concessions were up modestly in the first quarter, in the second quarter, I'm sorry. So we continue to use that tool a little bit more. As we move into July, July ended up being a pretty good overall month for us. We ran a very successful 4th of July in Canada day sale. Web reservations were up 6.7%. Rentals were up 7.2%. And again, this is across both the U.S. and Canada. Our concession usage actually declined year over year. And as you probably heard, web rates were actually up 1% year over year in July. The move-in rents were down a little bit, down about 5% year over year. But at the end of July, we were at an occupancy of 92.1 down, you know, 65-ish basis points year-over-year. But our in-place rates were up over 2% year-over-year. So it's a fairly consistent theme with human in terms of balancing the rate and occupancy. So I think we're fairly encouraged as we enter the, you know, the shoulder seasons. Okay.

Yeah, that's helpful. And then I guess along those lines with occupancy, you know, there was some commentary there But, you know, it's been unusually stable over the last several quarters, a little less seasonal improvement from 1Q to 2Q than we've typically seen. But, you know, also there was less seasonality in the back half of 25 as well. Um, you know, is that primarily a function of some market specific factors or, you know, is that sort of, uh, does that reflect, um, you know, kind of a deliberate operating strategy? And I'm just wondering, you know, how we should think about, um, you know, seasonality in the back half of, of 26 now, um, and, and, and sort of the earlier part of 27.

Yeah, Todd, it's a, it's a good observation because we, you're right. Our occupancy has been pretty steady, and that's been a target of ours is to be at that 92% physical occupancy level, give or take. And so moving into this second quarter, you know, there was a bit of a shift in our pricing systems and the way we were approaching things on a shift towards rate, as David alluded to with some of the web rates and the reduced promotions and things like that. So our annualized rent per occupant square foot was up 1.9% to kind of counteract the occupancy. To your point, there are market dynamics going on, most notably Asheville. And so if you strip out Asheville out of our same store pool for the second quarter, we were only down 45 basis points in occupancy, right? So there is some dilution going on and some gives and some takes as we go. But overall, we still feel good about our approach into this busy season. as we've consistently said, we want to be highly occupied, 92% plus, so that we can drive rate during busy season, which we've been doing. And then coming out of busy season, we do want to maintain a good base of occupancy. And so we are going to see some seasonal effects. But to your point, we're going to try and keep tenants in our storage units.

Okay. So it sounds like a more gradual return to seasonality, but perhaps still a little bit more muted in the back half of the year than what we would expect historically. Does that sound about right?

Yeah, I think that's how we're approaching the tail off of the busy season. That being said, our systems are dynamic, right? And if we see opportunities, they're going to respond to them. But yeah, I think that's how we're thinking about it today.

Okay. All right. Thank you.

Your next question comes from the line of Mike Mueller with JPM. Mike, please go ahead.

Yeah, hi. A couple more revenue questions. I guess first, when you're thinking about the move-in rate comps, when do you think you cross the positive territory there?

Hey, Mike. When we laid out the sort of building blocks to the guidance as it stands today, we're looking at move-in rate, kind of the inflection point later this year, Right. So, Dan, between the end of rental season and the end of the year, somewhere in that range.

OK. Got it. And then if you're looking at ECRI, can you give us a sense as to about, you know, what portion of your units get at least one increase during the year?

Yeah, I'd say it's probably the majority of our customers get a rate increase at least one time, once during the season. And that being said, you know, our most valuable customers are the ones that are going to be staying the longest. And so as they evolve in their customer journey, they are less likely to actually be receiving one of those ECRIs. And just as a reminder, you know, we're always testing. We're always monitoring our ECRI approach. We really haven't changed the cadence over the course of this year. and we continue to be in that, on average, sort of low 20s percents on a blended basis over the course of 2026.

Got it. Okay. Thank you.

Thanks, Mike. Your next question comes from the line of Juan Sanabria with BMO Capital Markets. Juan, please go ahead.

Hi, this is Robin Handel. I'm sitting here for Juan. I was just curious if we can provide an update on the potential timing of a daily partner in transaction and if you could share in the hurdles you've overcome to date?

Yeah, thank you. I would say the following, and we've been pretty consistent kind of with our communication. We are having numerous conversations that are ongoing, and we feel pretty good about the direction we're heading, the conversations we have. We do not have anything definitive to announce today, But if and when we have something announced on that front, you know, we'll do so. And it's going to represent incremental capacity on top of what's already embedded in the updated, you know, guidance. I think what we're finding is there are a lot of organizations in the U.S. and Canada that are very, very, you know, interested in allocating to storage. So it's not if from a smart stop perspective. It just went.

Thank you. And then on the momentum building in your third-party platform, one store added now in Canada, but down on the net space. Just curious if you can elaborate and provide some color.

Absolutely. Well, so far, you know, we're very happy with the Argus third-party management platform. We think the receptivity thus far to the smart stock from the current owner's base and the potential new owners remain strong. Now, with any acquisition, you have different phases of integration to our platform. So phase one for us was understanding the people and the entrepreneurial owners at Argus. Two, phase two was introducing our people, the SmartStop people, SmartStop culture, the SmartStop platform. And then three, as some of those private label Argus individuals, entrepreneurial individuals moved over to SmartStop, getting those testimonials for the strength of the SmartStop and or the SmartStop legacy platform. And so overall, owners have been very impressed with the top of the funnel. I think that's one of the biggest comments that we get. and in addition to our communication, our tech platform, and not losing sight of those entrepreneurial owners. And so the property performance has materially improved with those owners that have moved on our platform. So we're kind of in phase four now. It's that broader migration onto the SmartStop platform. But, you know, we still want to provide options to meet the entrepreneurial spirit, you know, of our owners. And so we're currently coming out of phase three into phase four, and I think September will start to kickstart phase four as we kind of roll off of the rental season. We move into, you know, the SSA Las Vegas meeting. Now, having said that, we do continue to see new contracts being signed across the spectrum of options, and we're encouraged by the adoption of the SmartStop branded and legacy platforms. Now, the broader pattern that we've called out this last quarter, private label owners are seeing stronger lead flow once they're on the SmartStop platform, and they're gradually migrating towards either the legacy of the full SmartStop brand. And this is continuing, and we're, you know, each and every month, we're starting to see these owners transfer. You know, at this time, I wouldn't move up any kind of timeline when the full margin synergies will show up in our P&L. I think that's been more of a 2027 story as the technology migration and the rebranding work works its way through the portfolio. But we're starting to see some early signs of this. In addition, the underlying signs of owner satisfaction, lead generation are consistent with what gives us confidence in the longer, you know, dated, you know, payoff with respect to Argus 3 p.m. And so we did have some offboards on the private label platform, but we're seeing improvement in the overall quality of the managed portfolio. So the average square feet of storage for each onboard store was approximately 73% larger than our offboards. And so we had 90,000 net rentable square feet of onboards as compared to 52,000 net rentable square feet for the offboards. So the larger stores plus the stronger demographics mean these onboarded stores will have higher overall revenues than the offboards. In addition, as we've announced, we've onboarded our first third-party management property in Canada in Q2, and that's obviously one small step with respect to our expansion and the third party in Canada. But interesting enough, we do have some Canadian owners of U.S. properties that are actually so happy with what we're doing for them in the U.S. there are discussions with respect to their Canadian properties. And so six of the properties that we've onboarded, which I think is important, are current bridge-ledging customers. And I think that demonstrates the symbiotic relationship between our bridge program and also our third-party management. And lastly, I think one of the biggest benefits that we're seeing out of Argus is the benefit of scale in terms of margin. And so we've kind of talked about that through the call with respect to, you know, the Denver presence and how that has impacted not only our entrepreneurial owners, but also, you know, our own same-store margins. And so, you know, the year-to-date, just want to reinforce that those Denver margins are up 430 basis points. So I think overall, you know, we're far along within the integration. We still have a lot of work to do, but we're very, very happy about the progress thus far.

Thank you.

Thanks, Rob. There are no further questions at this time. I will now turn the call back to Michael Schwartz for closing remarks. Michael, please go ahead.

Thank you, Operator.

Well, SmartStop self-storage had a phenomenal second quarter. I want to thank you for your time and interest in SmartStop self-storage, a smarter way to store. Have a great day.

This concludes today's call. Thank you for attending. You may now disconnect.