Earnings call transcript: U-Haul Holding Q1 2026 misses EPS forecast

U-Haul Holding Co (UHAL) reported its Q1 FY2026 earnings, revealing a significant miss on its earnings per share (EPS) forecast. The company posted an EPS of $0.68, falling short of the expected $1.21, marking a 43.8% negative surprise. Despite this, revenue surpassed forecasts, reaching $1.63 billion against an anticipated $1.60 billion. Following the announcement, U-Haul’s stock price saw a modest increase, closing at $56.72, up 2.65% from the previous session. According to InvestingPro data, the company maintains a market capitalization of $10.21 billion and trades at a P/E ratio of 32.47, suggesting a premium valuation compared to industry peers.

Key Takeaways

• EPS fell short of expectations by 43.8%, coming in at $0.68.
• Revenue exceeded forecasts, reaching $1.63 billion.
• Stock price rose 2.65% to $56.72 post-earnings announcement.
• U Box revenue increased by 16%.
• The company added 15 new storage locations.

Company Performance

U-Haul Holding Co reported a decline in earnings for Q1 FY2026, with net income dropping to $142 million from $195 million in the same quarter last year. Despite this, the company managed to grow its equipment rental revenue by 4%, and its U Box segment saw a 16% increase in revenue, reflecting strong demand in the portable storage market. InvestingPro analysis reveals the company’s overall revenue growth rate stands at 4.91%, with EBITDA reaching $1.71 billion in the last twelve months. InvestingPro subscribers have access to 8 additional key insights about U-Haul’s financial health and growth prospects.

Financial Highlights

• Revenue: $1.63 billion, up from the forecast of $1.60 billion.
• Earnings per share: $0.68, down from $1.21 forecast.
• Adjusted EBITDA in the Moving and Storage segment increased by 6% to nearly $31 million.
• Capital expenditures for new rental equipment rose to $585 million.

Earnings vs. Forecast

U-Haul’s EPS of $0.68 missed the forecast of $1.21 by a significant margin, a 43.8% negative surprise. This miss contrasts with the company’s historical performance, where it has typically met or exceeded expectations. However, the revenue exceeded expectations by 1.88%, signaling strong sales performance.

Market Reaction

Despite the earnings miss, U-Haul’s stock price increased by 2.65%, closing at $56.72. This movement suggests that investors may have been encouraged by the company’s revenue growth and strategic initiatives, particularly in the U Box segment. The stock remains near its 52-week low of $56.28, indicating room for recovery.

Outlook & Guidance

Looking forward, U-Haul plans to continue expanding its storage and moving capabilities. The company is developing 124 projects with approximately 6.5 million new square feet. It anticipates maintaining 4.5-6 million square feet of annual storage development, which could significantly boost future revenues. InvestingPro data shows the company maintains a healthy current ratio of 1.78, indicating sufficient liquidity to fund its expansion plans. However, investors should note that U-Haul operates with a substantial debt burden of $7.29 billion, which could impact its growth trajectory. Get access to U-Haul’s comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.

Executive Commentary

Vice Chairman Sam Schoen expressed optimism about U Box’s growth potential, stating, "I don’t see why there’s any reason that U Box couldn’t be as big as U-Haul is today." CFO Jason Berg highlighted strategic equipment placement, saying, "We’re going through the process of placing this new equipment in places that we think it’s gonna be productive."

Risks and Challenges

• Increased personnel costs, up by $20 million, could pressure margins.
• Liability costs have risen by $17 million, potentially impacting profitability.
• Fleet repair and maintenance costs increased by $5 million.
• The competitive landscape in the portable storage market remains intense.
• Economic uncertainties could affect consumer spending on moving and storage services.

Q&A

During the Q&A session, analysts inquired about the growth potential of the U Box segment and transaction volume trends. Discussions also focused on storage development costs and the potential for additional revenue from increasing storage occupancy rates.

This comprehensive analysis highlights U-Haul Holding Co’s challenges and opportunities as it navigates a competitive and evolving market landscape.

Full transcript - U-Haul Holding Co (UHAL) Q1 2026:

Conference Operator: Good morning, ladies and gentlemen, and welcome to the U Haul Holding Company First Quarter Fiscal twenty twenty six Investor Call Conference. This call is being recorded on Thursday, 08/07/2025. I would now like to turn the conference over to Sebastian Vergas. Please go ahead, sir.

Sebastian Vergas, Unspecified Executive, U Haul Holding Company: Good morning, everyone. Thanks for joining us. Welcome to the U Haul Holding Company first quarter twenty twenty six investor call. Before we begin, I’d like to remind everyone that certain of the statements during this call, including without limitation, statements regarding revenue, expenses, income and general growth of our business may constitute forward looking statements within the meaning of the Safe Harbor provisions of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. Forward looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified.

Certain factors could cause actual results to differ materially from those projected. For a discussion of the risks and uncertainties that may affect the company’s business and future operating results, please refer to the company’s public SEC filings and Form 10 Q for the quarter ended 06/30/2025, which is on file with the U. S. Securities and Exchange Commission. I will now turn the call over to Jason Berg, Chief Financial Officer of U Haul Holding Company.

Jason Berg, Chief Financial Officer, U Haul Holding Company: Thanks, Sebastien. I’m speaking to you today from our offices here in Phoenix, Arizona. Joe Schoen, our Chairman and CEO is unable to attend today’s call. However, he is going to be available to speak to you at length and answer questions in two weeks at our annual investor and analyst webcast. We do have Sam Schoen, the Vice Chairman of our Board of Directors here with us today to answer questions.

Yesterday, we reported first quarter earnings of $142,000,000 compared to $195,000,000 for the same quarter last year. In terms of EPS, that’s $0.73 per non voting share this quarter versus $1 per non voting share last year at this time. Earnings before interest taxes and depreciation that I’ll refer to this as adjusted EBITDA and our Moving and Storage segment increased 6% or nearly $31,000,000 for the quarter, driven by strong revenue growth across our product lines all of our product lines. Included in our release and our financial supplement is a reconciliation of adjusted EBITDA to GAAP earnings. The largest difference between adjusted EBITDA and GAAP earnings is depreciation and this is also the cause of the largest negative variance in earnings year over year.

During the first quarter of this year, we swung to a $22,000,000 loss on the disposal of retired rental equipment as compared to an $8,000,000 gain last year. Cargo vans that we purchased over the last two years that are now being sold came into the fleet with higher initial costs and the current market resale values are not reflecting this, hence resulting in a loss. We have increased the pace of depreciation of the remaining units to reflect this new reality. Additionally, we have depreciation from increasing the size of the box truck fleet by approximately 8,600 units compared to June. Pricing on new cargo vans for the upcoming model year indicates some nominal improvement.

Of the $0.27 decline in earnings per share in the first quarter, zero two one is from fleet depreciation and $0.12 is from the increase in losses on rental equipment sales. For the first quarter, our equipment rental revenue results had a $44,000,000 increase, just over 4%. Revenue per transaction increased for both our in town and one way markets compared to the first quarter of last year. Overall transactions largely held steady with what we saw in the first quarter of last year. For the month of July, we’ve seen revenue continue to trend positively compared to the same period last year, but we haven’t yet seen a big improvement in transactions.

Capital expenditures for new rental equipment in the first quarter were $585,000,000 that’s a $46,000,000 increase compared to the same time last year. This increase was spread across acquisitions of box trucks, trailers, towing devices and cargo vans. Self storage continues to be positive. Storage revenues were up $19,000,000 which is about a 9% increase for the quarter. Average revenue per foot continued to improve across the entire portfolio, up just over 1%, while our same store portfolio was up, but it was up just under 1% per occupied foot.

Our same store occupancy decreased by 100 basis points to just under 93%. In July, we took on an effort system wide to increase the number of available rooms at our existing locations by focusing on delinquent units. While this effort will not affect revenue directly as we don’t record any revenue until it’s collected, it will serve to reduce our reported occupancy level a few points if we don’t refill all of those rooms in time for September reporting. In our financial supplement, you will see that we have a slide that shows where future storage revenue growth is coming from. And the future revenue growth from our existing portfolio has increased.

This is partially from us making these rooms now available to paying customers. During the first quarter of this year, we invested two ninety four million dollars in real estate acquisitions along with self storage and U Box warehouse development. That’s down $108,000,000 from the first quarter of last year. During the three months, we added 15 locations with storage and it’s about 1,200,000 new net rentable square feet. We currently have approximately 6,500,000 new square feet being developed across 124 projects.

Our U Box revenue results are included in other revenue in our 10 Q filing and this line item increased $21,000,000 of which U Box is a large part. U Box revenue by itself was up about 16%. We continue to have success increasing U Box moving transactions as well as increasing the number of these containers that customers are keeping in storage. Moving and Storage operating expenses increased $44,000,000 for the quarter. As a percent of revenue, we were even with the first quarter of last year.

The largest components of the increase were personnel, which was up $20,000,000 liability costs were up 17,000,000 and we did see an increase in fleet repair and maintenance due to the increased size of the fleet that was up about $5,000,000 As of June, the June this year, cash along with availability from our existing corporate revolver at the Movies and Storage segment totaled $1,191,000,000 We are holding our nineteenth Annual Virtual Analyst and Investor Meeting on Thursday, August 21 at 11AM at 02:00 Eastern Time. This is an opportunity to interact directly with company representatives through a live video webcast, which you can find at investors.uall.com. Once again, we’ll have a brief presentation by the company followed by a question and answer session. Please feel free to submit questions to us early through the investor website or sending them to Sebastian or you can just submit them live during the webcast will be good either way. With that, I’d like to hand the call back to our operator, Chloe, to begin the question and answer portion of the call.

Conference Operator: Thank you. We will now begin the question and answer session. Our first question comes from the line of Steven Rothman from Zacks. Your line is open.

Steven Rothman, Analyst, Zacks: Thank you and good morning.

Andy Liu, Analyst, Wolfe Research: Good morning.

Jason Berg, Chief Financial Officer, U Haul Holding Company: I

Steven Rothman, Analyst, Zacks: had some questions specifically for Joe, but I also have one specifically for Sam. I’ll delay my questions for Joe until the investor conference. The top line is improving, like Joe expected, and I had one specific question about Ubox, which I know Sam heads. Ubox once again has achieved double digit growth in this quarter, and it’s through that tried and true formula of U Haul that by adding capacity and then specifically in the case of Ubox increasing warehouse space along with the number of containers and the number of delivery equipment. This is a growing area, and I assume, ultimately, will be broken out as a segment as it reaches 10% of revenues.

How much potential do you still think there’s left in U Box? It’s growing.

Jason Berg, Chief Financial Officer, U Haul Holding Company: Do you

Steven Rothman, Analyst, Zacks: think it’s, like, 10% done or 25% done, or is it just too early to tell?

Sam Schoen, Vice Chairman of Board of Directors, U Haul Holding Company: Well, thanks for the question, Steve. This is Sam talking. I think you you start off some wise observations. Of course, it’s way too early to tell. I’m on the more optimistic side.

I don’t see why there’s any reason that Ubox couldn’t be as big as as U Haul is today. And I think we’re just at the infancy. I think you’re at you’re you really can’t start answering that question until you start to get some real clarity on, from the consumer, of if they understand what this product and service really is. Of course, we’re so blessed with traditional U Haul that if you’re six or 96, you’re you know exactly what U Haul is and what it does. And when you see it parked on the side of the road, you know exactly what it’s there for.

You know, the customer isn’t quite there. The consumer isn’t quite there with with the U Box portable moving and storage model. When they do, I think you’ll really be able to to to answer the question you have. But but I I think it’s it’s the market’s quite large. And as time goes on, you’ll you’ll see it continue to grow as a pillar of of U Haul company.

Steven Rothman, Analyst, Zacks: Let me just ask you in a slightly different way. What of the number of locations that you have across The United States, how many have functionality for Ubox?

Sam Schoen, Vice Chairman of Board of Directors, U Haul Holding Company: What percentage? Question. Sure. So it depends what what you’re defining as a as a U Haul entity. Of course, most of the time in you in within the company, we look at our outlets including our dealers.

So if you wanna make the calculation from that, you’re looking at, you know, somewhere between, you know, 510%. If you’re looking based on company stores, you’re looking a little closer around half. So, you know, needless to say, it that’s that’s not necessarily assuming that you’ve got adequate build out of the Ubox product piggybacked at those locations. So for example, there you take a rather large market like Phoenix, you’re still barely scratching the surface of of the capability that we need to service the customer. And we’re gonna we’re just gonna have to keep building it out.

And and if if if what you’re trying to do is make a projection to say, should this double, triple, quadruple, 10 x, you’re you’re going the right direction.

Steven Rothman, Analyst, Zacks: Alright. Thank you for taking my question. And the other questions had to do with Joe’s experience because he’s been running the company for quite a long time and wanted to get into some depreciation cycles and first and inflationary cycles where personnel costs are. I’ll save those for the analyst comp.

Jason Berg, Chief Financial Officer, U Haul Holding Company: Okay, Steve. We’ll be happy to answer those then.

Steven Rothman, Analyst, Zacks: All right. Thank you for taking my question.

Jason Berg, Chief Financial Officer, U Haul Holding Company: You’re welcome.

Conference Operator: Our next question comes from the line of Steven Ramsey from Thompson Research Group. Your line is open.

Steven Ramsey, Analyst, Thompson Research Group: Hi, good morning. I wanted to start with UBox. And I would just assume that transactions in UBox is more associated with one way moves. Are you able to see if U Box one way moves are growing faster than the the the rental segment one way moves? Or said another way, with one way transactions being up, is that a rising tide for Ubox?

Jason Berg, Chief Financial Officer, U Haul Holding Company: Well, this is Jason. I’ll start and just set the the scene with the the truck one way transactions. Truck and trailer, those have been from flat to up just slightly, you know, up up 10 or 20,000 transactions in a quarter. So I’ll send to just to post his experience with with U Box one way transactions.

Sam Schoen, Vice Chairman of Board of Directors, U Haul Holding Company: Yeah. U Box one way transactions are are are leading the way. They’re exceeding our truck rental transactions as a percentage. I I as far as a rising tide, I think they’re decoupled in in in many ways. I certainly don’t look at the performance of the one way shipping of U Box product and juxtapose it against the the truck rental numbers and say, well, well, you know, we only have so much we can go or capped or, you know, one number of is dragging down the other.

I don’t necessarily see it that way. And, I think what you you should expect is for U Box, performance as a percentage to exceed the truck rental gains that we’re able to make. There’s there’s little doubt of that.

Steven Ramsey, Analyst, Thompson Research Group: Okay. That that’s helpful. And and then, wanted to, think about the margin profile of the business, 35, virtually flattish year over year even with moving transactions up and then storage and U Box with a higher margin profile also growing faster. Can you maybe dissect what is causing margin trends in the quarter or if it’s better to reflect over the recent past and maybe the puts and takes to the company margin?

Jason Berg, Chief Financial Officer, U Haul Holding Company: Sure. This is Jason. I’ll start with that. We put a new slide in the in the investor deck this time around that that shows proxy for cash flow, which should be adjusted EBITDA, the EBITDA margin, and then the share of equipment rental revenue, versus the share of storage revenue. And and we don’t have U Box revenue in there yet, but but the the two newer revenue lines storage, which is strange calling that newer, but it it’s newer than than the original equipment rental revenue.

Both of those, when when we include those in new projects, it has the effect of of increasing the projected return. Now as you know, when you’ve been to some of our facilities, you see how everything kind of inter interacts and interrelates. It’s very hard for us to to to break it out separately. But we certainly have seen that that when we add more of each of those products to a location, the profitability improves.

Steven Ramsey, Analyst, Thompson Research Group: Okay. That’s helpful. And then maybe just think about the some some of the dynamics playing out in the storage segment, a lot of new facilities and units in the total base, maybe as a headwind to the margin profile, the slides in the last couple of quarters have been helpful to see that. Can you maybe talk about the glide path there of how units getting soaked up can be positive to margin, certain thresholds that that need to be hit to elevate the margin within the storage business.

Jason Berg, Chief Financial Officer, U Haul Holding Company: Yeah. On on this on the slide in the in the deck that we have that shows where future storage revenue is coming from, there’s there’s a portion of that that shows storage revenue from existing locations or what we call non same store locations, ones that haven’t hit 90%. And and that number, taking it from where it is today to where it would be at 90%, is somewhere it’s gonna be somewhere around $260,000,000, give or take. You know, by the time we get there, there’s likely gonna be rate increases. There’ll be a little bit more.

Those are at locations where we’ve opened, and the expense load has largely been recognized in our financial statements. So that additional revenue, you know, a a very rough estimate would be maybe 80% of that, give or take, is gonna flow to the bottom line. At some locations, it’ll be more than that. At at some of the newer locations, it might not be all of that. But but as a general rule of thumb to give you a sense.

So a lot of the headwinds that we’re facing right now on the EBITDA margin or on the GAAP operating margin are are truck related. You know, it it’s the liability costs associated with the fleet. You know, we’ve we’ve seen an increase in in the severity of claims. I don’t think we’re seeing more accidents. I think the the the fleet is in real good condition as far as accidents go.

But the severity of those that that we’re running into is a little bit more significant. And we’re building reserves back up, and and and that’s affecting the margin. And does hit earnings and EBITDA for for both of those. And then for the earnings cycle, it’s it’s this depreciation headwind that that we’re facing. We’re gonna have to work through this cohort of trucks that cargo vans we purchased the last two years.

And then likely after this year, the spend on the box truck fleet will begin to slow a bit, And and then we should peak on depreciation and and then hopefully trend back down.

Steven Ramsey, Analyst, Thompson Research Group: Okay. That’s helpful, Jason. And last quick one for me. When looking at the pending and developed storage square footage currently at $14,800,000 that’s been sliding down for a few quarters, is that a number that you expect to kinda gradually keep coming down over the next few quarters? Or is there a level of developed and pending square footage that you think it’s a minimum level that we do not want to go under?

Jason Berg, Chief Financial Officer, U Haul Holding Company: There there there certainly is an amount that we don’t want to go under. I don’t think we’re close to that right now. What what we’re we’ve been trying to do is slow the spend, not because we don’t believe in self storage or not because we don’t want to expand, but because we want to be rational in our capital allocation and make sure that that we have enough enough to last us. And and with the way that the fleet has been showing up some capital during this time frame, we’re we’re pulling back a little bit on real estate spend. But you don’t wanna pull back too much where you have what happened to us during COVID where we we shut a bunch of stuff down and then it takes a while to start it back up and you get kind of this unusual amount.

If if we could stay somewhere in the, say, four and a half to 6,000,000 square foot range each year, I think that’s something that operationally we’ve proven that we can handle. And if we do that, spending is likely to continue to decrease.

Steven Ramsey, Analyst, Thompson Research Group: That’s great color. Thank you.

Conference Operator: Our next question is from Andy Liu from Wolfe Research. Your line is open.

Andy Liu, Analyst, Wolfe Research: Hey, appreciate it. Good morning, everyone. And thanks for taking the question. So really just wanted to double click first on the transaction volume that’s talked about kind of flat to maybe slightly up in the quarter. Just wondering if you guys noticed anything in terms of your speeches sort of like the month to month trends.

It’s been flat in the quarter, but had the month month trends kinda was, like, improving through the quarter, or is it, you know, kinda pretty steady through the quarter? Any kind of any color would be helpful.

Jason Berg, Chief Financial Officer, U Haul Holding Company: Sure. All of our comparisons are gonna be year over year because our our business doesn’t really compare well month to month. So, you know, our our our best quarter for moving is really our second quarter. The second best would be the first quarter that we just finished, and then it goes third quarter, and the fourth quarter is our worst. So we’re always comparing with how we did the year before because largely moving activity tends to look the same year over year.

So what I mentioned for July is we we’re we’re again seeing revenue increase from rates that we’re having to charge because our cost of doing business has gone up. But we haven’t yet seen traction on the on on transactions. And and we’re going through a process right now. I mentioned that the the fleet the size of the fleet has increased. I think from last year, we’re up maybe 5,700 trucks.

From last quarter, we’re up about 5,000 trucks. But we’re also up, you know, close to 800 locations compared to last year between dealer locations and and our company locations. So we’re we’re going through the process, which is fairly difficult of placing this new equipment in places that we think it’s gonna be productive and and opening dealers and doing that in in a efficient fashion. And that’s that’s what we’re working on now. Now if that doesn’t work out the way that we think it is, we’ll probably end up increasing the sales of trucks and reduce the the size of the fleet.

But right now, we think there’s opportunity to to use these trucks. You know, to to give you a sense of the the challenge that we’re facing, in the last two years, the number of locations that we’ve added is is equal to the size of our our second largest truck competitor. Right? So, you know, in in in opening that many locations distributing trucks across them and getting customers and our team to be able to route customers to those locations is a bit of a challenge, and that’s what we’re working through right now. And we’re working through it at the same time that we’re investing quite a bit in the fleet.

But our our plan is that all of this is going to pay off in in the years to come.

Andy Liu, Analyst, Wolfe Research: Got it. Got it. And sorry about that. I probably should have made my question a little clearer. And that, like, I meant monthly trend as in, you know, how did April year over year go?

How did May year over year and June year over year? Is that has it been kinda year over year flat for all three months, or has it been, you know, maybe improving on a year over year basis from April through through June?

Jason Berg, Chief Financial Officer, U Haul Holding Company: Got it. Okay. After. Yeah. I I went I went to stray on that one, didn’t I?

So the revenue has been steadily up year over year. I would say that transactions, we have we have some on weeks and some off weeks, and and and we’re we deal with the same issue that we’ve dealt with since the very beginning of the company, and that is people tend to move at the end of the month. So you you get this cluster of transactions at the end of the month. And depending upon how the calendar falls from year to year, you can see these weird oddities. So looking at it over a three month period, you tend to flatten some of that out.

And what I would say is we still haven’t got traction, however you wanna look at it, month over you know, month versus last year or for the three months, the the traction still hasn’t hasn’t hit. And and I’m not seeing that in in July yet either, but it’s not like we’re far off. There’s some weeks that we’re up on transactions, so we’re we’re right there. We’re we’re right there.

Andy Liu, Analyst, Wolfe Research: Okay. Got it. Got it. Thank you. That’s helpful.

And then I kinda shifting over to the storage slide. Mean, the storage stuff, I know you guys, you know, see I use slides here. So I think that segment’s getting you guys are pushing for a little more focus on a segment. So I really want to ask on that slide on the future revenue coming out online, you guys gave what the future would look like on a revenue basis. Have you guys looked at it maybe on even an NOI or an EBITDA basis?

I don’t know what that, you know, future pipeline is. Or, you know, I know you guys don’t disclose margin, just wanna get a sense of, you know, if that is the revenue number, just, you know, how that hits the bottom line.

Jason Berg, Chief Financial Officer, U Haul Holding Company: Yeah. You know, I I I answered the question for for Steven just now. On the on the non same store locations that are already open, the the the additional revenue somewhere around, I wouldn’t say, 80% of that should probably fall to to the bottom line. If if you’re asking about the the the other ones that haven’t opened yet, those are tougher because as a whole as most of them have all of our product lines embedded in. So I I don’t have a a a clear answer to to give you on that because we for I mean, breaking out storage, revenue is part of that.

Andy Liu, Analyst, Wolfe Research: No. No. No. It’s all it’s all I’m curious if you’re on, on that front. So kinda guess, ask it another way, maybe on the development, you know, the the the spending side of it, you know, kinda how much does it cost for you to, you know, put this pipeline up?

Because I looked at, you know, your slides. Right? And if you have a five year look back period, you did about 5 and a half billion dollars of investment, and you brought 26,000,000 square feet of new space online. So that kind of backs into, like, $200 a foot. I’m not sure if if that’s, like, a good proxy for for this thing going for it.

Jason Berg, Chief Financial Officer, U Haul Holding Company: Yeah. I I I don’t know if I I would be I would be here this long if I allowed a bunch of $220 a foot storage to to

Andy Liu, Analyst, Wolfe Research: Yeah. That’s for sure.

Jason Berg, Chief Financial Officer, U Haul Holding Company: So that on that slide, the the 5,800,000,000.0 is represents the amount that we spent in that 5 years. So it’s it’s not exact that that’s not for the that doesn’t represent the the 26,000,000 square feet that went on. It represents a big portion of it, but the the I I’d say there’s two complicating factors to that calculation. One is because we do all this development on balance sheet, there’s a certain amount that we’ve spent that isn’t yet productive. Right?

We’ve we’ve bought the properties. We’ve started we have construction in progress, but they’re not renting rooms yet. For the last couple years, that number has run about a a billion 7. We’re we’re probably about a a billion $6.90 in in capital we’ve invested that isn’t really producing revenue right now. And I would say five years ago, that number was probably closer to a billion.

So then I would take 650,000,000 out of the numerator because that that really is extra money to spend on assets that aren’t productive yet. And then the part that’s a little also challenging to to figure out is that also includes building Ubox warehouse space. And if if you were to convert the amount of covered spaces that we’ve added the last five years to storage square foot because each one of those boxes is a is a five by eight storage room. That’s gonna add somewhere between eight to 9,000,000 square feet of self storage space. So in in reality, what the number should get to for our investment per foot should be much closer to, say, a 150 a foot.

Is that that’s the long story to get to the short answer, which is it should be about a 150.

Andy Liu, Analyst, Wolfe Research: Okay. Got it. Got it. Super helpful. And then I sorry.

Last question for me. I know you guys you know, had asked last quarter as well. The, development you know, the yield that you guys get on these stores development, you guys mentioned it was closer to, like I think it was, 10%. Right? So it’ll be so I’m just just curious how you guys quote that 10% number.

Is that 10% on the one fifty of per square foot spend that you just that you just referenced? Or is there or is there a different method you’re using to calculate the 10%?

Jason Berg, Chief Financial Officer, U Haul Holding Company: Yeah. That that’s gonna be the the unlevered IRR. So you take your total investment in the property, and we’re looking out. I think it’s seven to ten years, we’ve been capping it at at the end of that time frame and and looking to see how how it performs over that time frame. If you were to try to convert that to a cap rate, it’s probably gonna be somewhere between seven and a half, eight.

Andy Liu, Analyst, Wolfe Research: There

Conference Operator: are no further questions at this time. I would now like to turn the conference back over to management for the closing remarks.

Jason Berg, Chief Financial Officer, U Haul Holding Company: Well, this is Jason. I hope everyone’s just holding their questions for the Annual Investor Day, which is going to be in about two weeks. If you have any feedback in between, please feel free to shoot it to us. Otherwise, we we look forward to seeing you then. Thank you very much.

Conference Operator: This concludes today’s conference call. Thank you for participating. You may

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.