National Storage REIT (NSR) Earnings Call Transcript & Summary

Good morning, all. I would like to begin by acknowledging the traditional custodians of the land on which we meet today as well as the traditional custodians of the land on which our centers are located across Australia and New Zealand. And I'll pay my respects to elders, past, present and emerging. On behalf of the Board for National Storage REIT, it is my pleasure to welcome you to the 2024 Annual General Meeting. My name is Anthony Keane, and I'm the Chairman of National Storage Holdings Limited, the shares of which are stapled to units in the National Storage Property Trust and listed on the Australian Securities Exchange as a National Storage REIT. Our business operates across every state and territory of Australia and throughout New Zealand. We're grateful to be part of the local fabric of so many local communities, and offer our thanks to all Australians and New Zealanders for their support as well as acknowledging the importance of diversity, tolerance and respect for each other on a range of issues in our daily lives. I'm also the Chairman of National Storage Financial Services Limited, the responsible entity of the National Storage Property Trust, and have been appointed as Chair of the meeting of unitholders of the trust, which will be run contemporaneously today. We are holding this year's AGM as a hybrid meeting. Securityholders were given the option to attend in person here in Brisbane or participate virtually through the Computershare meeting platform. The Computershare meeting platform will allow those securityholders, proxies and guests who elected to participate virtually to attend the meeting virtually. All attendees can watch a live webcast of the meeting. In addition, securityholders and proxies can ask questions and submit votes. For those attending online, we included the link in the Notice of Meeting published on the ASX to the virtual meeting online guide. That guide explains how to attend and participate in the AGM virtually. [Operator Instructions] This year, securityholders can also make comments or ask comments -- questions verbally through the questions and comments audio facility through the Computershare meeting platform. [Operator Instructions] Information about the audio facility, including how to access and use the facility is set out in the Notice of Meetings and in the virtual meeting online guide. Please note that while you can submit questions from now on, I will not address them until the relevant time in the meeting. Please also note that your questions may be moderated or it will receive multiple questions on one topic, amalgamated together. For those attending in person today, there will be an opportunity for comments and questions in respect to each item of business following the conclusion of item 8. Voting today will be conducted by way of a poll on all items of business. I will shortly open voting for all resolutions. I will start by outlining the procedure for voting in person. On entering the meetings, securityholders, representatives, attorneys and securityholders as well as proxy holders should have received a yellow voting card. Relevant voting instructions and all resolutions are printed on the voting cards. I encourage securityholders and their representatives to complete the voting cards after each item has been discussed. However, voting cards will only be collected at the conclusion of discussion of all items of business. To vote, simply place a mark in one of the for, against or abstain boxes for each resolution. If you mark the abstain box, your votes will not be counted for that resolution. If relevant, please indicate whether you're voting as an attorney or representative. At the time of voting, if you are uncertain about any of the voting procedures or require any assistance, please raise your hand and a representative from Computershare will be happy to help you. At the conclusion of the meetings, please ensure that you have marked your votes for the respective resolutions and then give your completed voting card to a representative of Computershare. I will now outline the procedure for voting online. If you're eligible to vote once voting opens, press the vote icon and all resolutions that are open for voting will be activated with voting options. To cast your vote, simply select one of the options. There is no need to hit the submit or enter button as the vote is automatically recorded. You will receive a voting confirmation notification on your screen. You can change your vote up until the time I declare voting closed. The meeting has been called under the Notice of Meeting to the 23rd of October 2024, the details of which were sent to all securityholders. If there's no objection, I propose to take the notice as read. A copy of the notice can be found on the National Storage Investor website, if required. It is now 10:05 a.m. Brisbane time, and I've been informed by our share registry, Computershare, that a quorum is present. So I formally declare the meetings open, and therefore, formally open the poll for voting on each relevant item of business now. I would now like to introduce the directors and senior executive team of the company. The nonexecutive directors: Howard Brenchley, Chair of the Audit Risk Committee and member of the Nomination and Remuneration Committees; Inma Beaumont, member of the Audit and Risk Nomination and Remuneration Committees; Scott Smith, Chair of Remuneration Committee, a member of the Audit and Risk and Nomination Committees. Our executive team members and Managing Director CEO, Andrew Catsoulis; our Chief Financial Officer and Chief Investment Officer, Stuart Owen; our General Counsel, Emily Ackland; and Head of Acquisition and Development, Nick Crang. Also our Company Secretary, Katherine Hammond, who also holds the position of Head of Risk and Compliance. Please note that Inma Beaumont is standing for reelection. Details of which are included in the Notice of Meeting. We have present also Simone Haslinger, who has been put forward as Nonexecutive Director at today's meeting. Welcome, Simone. Representatives of our auditor, Ernst & Young; our share registry, Computershare; and our lawyer's, Allens, are also present at the meeting today. This morning, I will provide a brief overview of our business and then I'll hand it over to Andrew for an operational update. We will then turn to the forming part of the meeting as set out in the Notice of Meetings. FY '24 marks NSR's 10th full year of operations post listing on the Australian Securities Exchange in December 2013. Since then, we have had grown from a modest 62 centers and market capitalization of $268 million to over 250 centers with market capitalization approaching $3.5 billion today. Our total assets are valued at in excess of $5 million and total returns to securityholders sit at more than 300% over this period. This includes a compound annual growth rate for both our underlying earnings and total revenue of over 20% per annum over the last 10 years, making us one of the best and most consistently performing A-REITs over this period. And FY '24 earnings have demonstrated both resilience and embedded capacity for growth of NSR's business, increasing by 9% this year to $154 million, with record total revenue of $355 million. NSR's NTA increased by $0.04 to $2.52 as the value of NSR's portfolio rose by 11% to $4.7 billion with valuation uplift again driven predominantly by improved operational performance and an unchanged weighted average portfolio capitalization rate of 5.91% across our property portfolio. NSR achieving these results in such a challenging economic environment is a testament to both the strength of our business and the relentless pursuit of excellence by our hardworking team of over 650 dedicated people. Underpinning this performance outcome has been our ability to drive growth in both the average rate achieved across its centers, up 7% to $339; and REVPAM, up 3.1% to $275. Pleasingly, this REVPAM growth was predominantly achieved through the second half of FY '24, up 5.1% over this period on an annualized basis. Our total built capacity has increased significantly in FY '24 to almost 1.4 million square meters of lettable area, an increase of over 9% in this financial year alone. This increase has been achieved through a combination of ongoing acquisition and development activity with 12 existing center acquisitions accounting for approximately 50,000 square meters of lettable area and the completion of 11 new developments comprising 73,000 square meters of additional [ lettable area ]. Importantly, NSR is well positioned to continue this growth trajectory into FY '25 and beyond. End of June 2024, our short-term development pipeline comprised of 222,000 square meters of lettable area across 28 projects, either development application approved or already under construction. Our total development pipeline stands at an impressive 46 projects comprised of over 382,000 square meters of lettable area, including those projects, currently under constructions, projects and development approvals and new projects in the concept design and planning phases. The importance of this acquisition and development pipeline cannot be overstated. These new acquisitions and developments, combined with strong organic growth from our existing portfolio, have underpinned our growth in earnings in the past, and will continue to support our growth well into the future. FY '24 also marked more a number of other milestones, with NSR entering into 2 significant capital partnerships and development arrangements. The first with MAAS Group will enable NSR to strengthen its coverage through important growth areas across New South Wales and the ACT. The second being the new GIC-NSR Ventures Fund has been established to pursue the development and operation of new self-storage centers in Australia in a cost-effective and capital-efficient manner. NSR will hold an approximate 25% interest in the fund while GIC holding the remaining 75%. The JV has identified 10 foundation assets, which have been either recently completed or are currently under construction by NSR and these assets are now owned by the Fund. The Fund plans to deploy an initial amount of $270 million, and the parties have agreed to work together to identify future potential opportunities. The Fund will assist NSR in expediting its development activities in a capital-efficient manner and will enable NSR to recycle capital currently employed in these developments into new acquisition and development activities. The fund has successfully received all necessary approvals and was settled on the 1st of October '24. NSR's focus on capital management is one of the keys to the company's success with gearing at 30 June 2024 at a prudent 26.6% with an ICR of 3.2x. Capital repatriated from the settlement of the Fund has further strengthened NSR's balance sheet. During the course of FY '24, NSR has again extended and improved the headroom, scope and tenor of its debt facilities. NSR has increased its total debt facilities to $1.84 billion with $450 million of FY '25 debt maturities extended. NSR now has an average debt term to maturity of 3.3 years, while having increased its proportion of debt hedged from 37% in June '23 to 43% in June 2024. NSR has approximately $1 billion of headroom before it reaches the upper end of its targeted gearing range. As a result, our capital management strategy remains conservative and the company is very well positioned to execute its strategic growth initiatives from an ongoing acquisition and development perspective. And our 4 pillars of growth strategy includes the following core principles: organic growth, optimize occupancy and rate growth on an individual center basis combined with prudent cost management. Acquisitions, developments and expansions, a centralized acquisition and development team with a diversified delivery pipeline to expedite and simplify the project delivery process and maximize returns. Technology and automation, leadership in development and implementation of innovative technology and automation. And fourthly, sustainably, instilling trust and confidence that we are building a resilient and sustainable business for our stakeholders. NSR enters FY 2025 as the self-storage industry leader in the provision of innovative storage solutions throughout Australia and New Zealand. Our development and acquisition capabilities are best in class and unrivaled in this region, and we've adopted world's best practice in utilizing sustainable and efficient construction methodologies. We are well positioned to both consolidate our existing business through the relentless pursuit of excellence in our systems and processes, and to accelerate our growth through our unrivaled pipeline of new development and acquisition opportunities. Our new capital partnerships will underpin the acceleration and implementation of our growth strategies. NSR's operational platform is highly scalable and significantly advantaged by being the largest owner-operated fully internally managed, storage-specific REIT in the Southern Hemisphere, with a portfolio of 260 centers across Australia and New Zealand. Our core focus remains to grow and improve our business in order to maximize return to securityholders. As always, we remain deeply indebted to and are sincerely grateful for the support of all NSR's stakeholders, including our securityholders, our hard-working team members, the executive and Board as well, of course, our customers without whom we would not have a business. I'd now like to introduce Managing Director, Andrew Catsoulis, to report on activities for the year.

Good morning, everyone. My name is Andrew Catsoulis, and I'm Managing Director and CEO of National Storage REIT. I would like to add my own welcome to the welcome by Anthony to both everyone in the room today and everyone joining us virtually and online. And as a preemptive matter, I'd just like to thank all the stakeholders, particularly our hardworking team, many of whom were in the room. So our Board, my fellow executive and the hardworking head office team that diligently undertakes their roles to execute the strategies that the Board and executive put in place in order to achieve the outcomes that you've seen across previous years, particularly financial year '24 and into 25, and I'll be touching on some of those today and also extend that thank you to our teams in the many disparate locations across Australia and New Zealand who work in demanding and at times thankless situations. So we're deeply grateful to the entire team for their hard work that allows us the privilege of presenting the results today. So I'll turn to a brief discussion of our year-end review, starting with the financial year '24 results. We achieved an IFRS profit of $230.3 million, reflecting underlying earnings of $154.2 million. That's up 8.7% year-on-year. Underlying earnings per security of $0.113, which was in line with the previous year's guidance. Our NTA sits at $2.52 per stapled security, that's up 1.6% year-on-year. And that's all predominantly unchanged weighted average loan capitalization rate, reflecting the fact that an improvement in intangible assets has essentially come from improved operational business performance across the portfolio. Our total shareholder return in financial year '24 was 6.4% and Group REVPAM increased by 3.1% to $275.4. From an FY '25 outlook perspective, we've provided guidance of underlying earnings per security minimum $0.118, representing underlying earnings growth of $163 million. Next page. Now turning to Q1 operational update. Our focus remains on active management of rate and occupancy to achieve optimal revenue outcomes. Our reportable group, as an important note, has increased from 206 to 208 centers at this time. Group REVPAM is essentially unchanged at $274 as at 30 September '24. And on Q1-on-Q1 basis, '24 to '25, that represents a 4% improvement. Occupancy across the 25 letup centers, open as of 30 June '24, grew 2.9% to 55.3% in Q1, contributing positively to underlying earnings. Operational initiatives and automation continue to deliver improvements to both the customer experience and also achieving cost-out efficiencies. You see a table below on Page 9 of the presentation regarding Group REVPAM, occupancy, rate across the relevant periods. Next page, please. We now touch on the acquisition and development outcomes both for FY '24 and FY '25 Q1 to date. So we were very happy to complete 11 projects in FY '24, adding 73,500 meters of net lettable area. We have 28 projects under construction or with DA obtained, planned for delivery over the next 24 months, and those projects will deliver in excess of 220,000 square meters of additional net lettable area over the next 24 months. From an acquisitions perspective, 29 acquisitions totaling $250 million were transacted. This includes 12 operating storage centers and importantly, the freehold of 5 previous leasehold centers. And then freeholding of legacy leasehold centers from which we operate has been a consistent strategy over recent years providing additional optionality and opportunities in terms of how we deal with those historical leasehold centers going forward once they've been freeholded. In addition to that, we have acquired 10 development sites in FY '24 for future growth. Our focus remains on high-quality acquisitions with value accretion opportunities in terms of upside. The scalability of NSR's operating platform continues to drive efficiencies across our business. Now turning to FY '25 and provide a brief update. In terms of Q1 '25, we have already undertaken 9 acquisitions, totaling $95 million, which was settled in '25 Q1. That comprise the 3 storage centers and 6 development sites, and our pipeline still remains strong. 2 development projects have been completed in Q1, and they represent state-of-the-art centers in New South Wales and Queensland, adding 11,500 square meters of net lettable area. And you'll see the table at the bottom of that page indicates that we have a total of 50 centers between centers under construction, centers for DA obtained and centers in the concept and design planning, and that will deliver over time. 418,500 square meters of additional net lettable area, and that provides a very important platform for future growth of the business as a result. Next slide, please. I'll briefly touch on the self-storage ventures fund, which is a partnership between National Storage REIT and GIC to pursue development and operation of self-storage centers in Australia in a capital-efficient fashion. This transaction settled on 1st October 2024. And in regard to that partnership, it's an arrangement whereby NSR owns approximately 25% and GIC owns approximately 75% of the ventures fund, with an initial term of not less than 5 years. Implementation assets sourced from NSR's development portfolio have been included in the tranche of assets, which are of course on that fund. And the JV is expected to deploy $270 million over the next 12 to 18 months. And so generate important management fees from identifying, acquiring and developing and managing the JV assets on an ongoing basis. And the parties have agreed to work together to identify future opportunities. From an NSR perspective, the fund provides important capital recycling opportunities in terms of managing its deployment of NSR's capital into new and existing developments and acquisitions moving forward. Next slide, please. I'll briefly speak about capital management. In particular the highly successful convertible bond whereby $300 million exchangeable notes were issued. As part of that process, NSR announced its Baa2 investment-grade credit rating received from Moody's, and that credit rating has a stable outlook. This was our inaugural issuance in terms of exchangeable notes or $300 million with a 5-year term. The -- some of features of that convertible bond included a 3.625% coupon approximately 1.5% inside NSR's average drawn cost of debt, a 5-year term and importantly, that extends our average maturity profile of the debt. And an initial conversion price of $3.08, which represents a 30% premium to the reference share price. This instrument diversifies and extends NSR's debt maturity profile and also increases our proportion of fixed rate debt. As mentioned, the Baa2 credit rating with a stable outlook gives an insight into NSR's investment-grade credit metrics and provides enhanced future debt market optionality. And you'll see on the right-hand side of that page, graphs depicting our debt maturity profile in future years as well as our fixed rate profile. Next page, please. I'll now talk briefly about NSR's ongoing innovation and automation initiatives. We've segmented these into 6 key areas starting with customer interaction. So we've initiated an AI-led customer interaction quality review, working with multiple vendors on Automated Contact Evaluations of our contact center agents to ensure highest levels for customer service and satisfaction being provided to our new and existing customers. Secondly, from a security perspective, we're implementing intelligent security solutions and working with key partners to enable AI analysis of cyber threats and physical property threats. On customer segmentation perspective, the use of machining learning technology to better understand our customers and our potential customers is an important aspect of our business planning going forward. And it's all about delivering the right solutions to the right customers at the right time. In terms of analytics, we have a strong focus on data analytics and AI-enabled analytics. Extensive structuring of the data and data definition works are in progress, with an objective to enable instant insights, powered by AI. And again, this helps us to better understand and service our significant customer base. Finally, in terms of software development, we're undertaking process of AI-assisted system software development that have seen an increase in our developer productivity in terms of our internal software generation. Next page, please. I'll now provide an update on our sustainability initiatives. Our 2024 sustainability report has been released and sustainability is a core pillar of the group's strategy. As announced in our FY '24 results, NSR is committed to reducing and offsetting its Scope 1 and Scope 2 emissions by 2030. And the 2024 sustainability report demonstrates continued progress in delivering on our sustainability objectives for the period to 31 March of 2024. These initiatives resulted in 4,030-megawatt hours generated from our solar over that period. That's only in excess of 130 solar PV systems on centers across Australia; a 3.1% reduction in total carbon emissions; 36.2% of all Australian waste diverted from landfill, 92% represents the recycled content in our cardboard boxes. We've supported over the last 12 months, 234 community partners, and we have an ongoing focus on cybersecurity, technology and automation. That concludes my update, and I'll pass back to Anthony for the procedural matters.

Thanks, Andrew. So some procedural matters. In respect to voting at today's meeting, on a poll, each member voting through the portal in person or their proxy, attorney or corporate representative has one vote for each security held. Only one vote is allowed per joint holding. If more than one joint holder tenders a vote, the vote of the member named first in the register must be accepted to the exclusion of the others. If a proxy has been directed to vote in a particular manner, if the proxy entitled to vote, he or she must vote in accordance with that direction. And for some items of business, certain votes will be disregarded as explained in the voting excluding statements in the Notice of Meetings. As Chair of this meeting, I advise that I intend to vote all undirected proxies in favor of the resolutions in items 2 to 8, and I now declare the voting open. Formalities. I will now move on to the formal part of the business -- of the meeting. There are 8 items on the agenda. Item 1 relates to the financial statements and does not require a vote. Item 2 to 8 are all for resolutions for consideration today, meaning that in order for each resolution to be passed, more than 50% of the votes cast on the resolution must be in favor of it. The Notice of Meetings invited all securityholders to submit any written questions electronically either prior to today's meeting or through the portal during the meeting. As mentioned earlier, we will respond to written and verbal questions following the conclusion of item 8. Item 1, financial statements and reports, company and the trust. The first item of ordinary business listed in the Notice of Meeting is to receive and consider the financial statements of the company and the trust for the year ended 2024 and the reports of the directors and auditors. Wade Hansen from EY, the entity's auditor, is in attendance with us at this meeting and questions may be directed to him through me relevant to the conduct of the audit and the preparation and content of the auditor's report, the accounting policies adopted by the company and the trust and the independence of the auditor. It is not necessary for the meeting to formally approve the financial statements or reports. This item gives securityholders the opportunity to ask questions about the company and the trust and the operational performance of the REIT. Please submit any comments or questions you may have in relation to the financial report, the director's report, the auditor's report on the operations of the company and the trust so that we can respond at the end of the meeting. I will now move to item 2. The next item of the agenda today is to present securityholders with the remuneration report for the financial year ended 2024. I'd like to make a few introductory comments and put the report into context. The remuneration report looks back at the remuneration arrangements over the 2024 financial year and relates to the remuneration of key management personnel and fees paid to directors during the year. The remuneration report contained in the FY '24 annual report provides securityholders with detailed disclosure regarding the terms of and rationale behind the company's remuneration framework. We believe we have developed policies, which balance the need to attract and retain senior executives with value for securityholders. The objective of the remuneration policy is to ensure that the company's remuneration is competitive, reflects the responsibilities of the offices and ensures that the company can attract and retain directors and key management personnel with the skills and capabilities required to deliver the REIT's objectives. Our policies demonstrate the relationship between performance and remuneration and aim to motivate senior executives to pursue the long-term growth and success of the company. The Board believes it has a successful remuneration structure that creates incentives for high-performance executives, and which delivers financial rewards to them when the company increases earnings and value. Please note that a vote on item 2 is advisory only and is not binding. However, any discussion on this item and the outcome of the nonbinding vote will be taken into consideration by the Board. In light of this context, I hereby propose to move that the remuneration report for the financial year ended 30th of June 2024, as detailed in the company's annual report be adopted. Details of valid proxies received by the company on this resolution appear on the screen. A voting exclusion applies to this item are set out in the Notice of Meetings. The voting exclusion means no key management personnel or members of the senior management team or any of the closely related parties may vote on this resolution. We move to the resolution ordinary business item 3, being the reelection of Inma Beaumont as Director. Ms. Beaumont's biography is set out in the Notice of Meetings. For the company to meet the requirements of the ASX listing rules and the company's constitution, there must be an election of directors at each general meeting. Ms. Beaumont has offered to retire as a director of the company and offers herself for reelection as a director of the company. The company accepts Ms. Beaumont's retirement. In accordance with Rule 11.3(b) of the constitution, the directors of the company, except for Ms. Beaumont, who is abstaining from this resolution, recommend Ms. Beaumont be reelected as a director of the company and recommend the securityholders vote in favor of this resolution. Details of valid proxies received by the company on this resolution appear on the screen. We now move to the resolution ordinary business item 4, being the election of Simone Haslinger as a director. Ms. Haslinger's biography is set out in the Notice of Meetings. Subsequent to the publication of the Notice of Meetings, Ms. Haslinger was appointed as a Nonexecutive Director of ASX DroneShield Limited. In accordance with Rule 11.6 of the constitution that the registered company recommends Ms. Haslinger being elected as a director of the company. And Ms. Haslinger offers herself for election as a director of the company. The directors recommend that securityholders vote in favor of this resolution. Details of valid proxies received by the company on this resolution appear on the screen. We move to the resolution ordinary business item 5, being the approval to issue 160,363 stapled securities to Andrew Catsoulis on behalf of the company and the trust as payment for the equity component of the short-term incentive and long-term incentive payments awarded to Andrew Catsoulis for remuneration for the financial year ended 30th of June 2024, on the terms set out in the explanatory notes of the Notice Of Meetings. Details of valid proxies received by the company on this resolution appear on the screen. A voting exclusion applies to this item are set out in the Notice of Meeting. The voting exclusion means that Mr. Catsoulis or any other person who will obtain a material benefit as a result of the issuance of securities, except to benefit solely by reason of being a holder of stapled securities or any associate of those persons, any person who is a key management personnel or any of their closely related parties may not vote on this resolution. We move to the resolution ordinary business item 6, being the approval to issue 453,800 performance rights to Andrew Catsoulis on behalf of the company and the trust under NSR equity incentive plan in respect of the equity component of FY '27 LTI award on the terms set out in the explanatory notes from the Notice of Meetings. Details of valid proxies received by the company on this resolution appear on the screen. A voting exclusion applies to this item are set out in the Notice of Meetings. The voting exclusion means that Mr. Catsoulis, who is eligible to participate in the NSR equity incentive plan, an associate of Mr. Catsoulis or any person who is a key management personnel or any of their closely related parties may not vote on this resolution. We move to the resolution ordinary business item 7, being the approval to increase the aggregate amount of remuneration that may be paid in any financial year commencing on or after the 1st of July 2024 to the company's nonexecutive directors for their services as directors by $300,000 from $1.2 million to $1.5 million. Details of valid proxies received by the company on this resolution appear on the screen. A voting exclusion applies to this item as set out in the Notice of Meetings. We move to the resolution ordinary business item 8, being the ratification of the issue of convertible notes on National Storage Finance Pty Ltd to raise $300 million to fund the repayment of existing debt facilities and for general corporate purposes on the terms set out in the explanatory notes of the Notice of Meetings in accordance with ASX Listing Rule 7.4. Details on valid proxies received by the company on this resolution appear on the screen. A voting exclusion applies to this item as set out in the Notice of Meetings. We will now answer questions relating to resolutions on 1 to 8 that have been submitted throughout the meeting and welcome securityholders to ask additional questions.

Okay. We'll begin by answering any questions from the floor, followed by written questions and verbal questions via telephone. So for those in the room that wish to ask a question, please raise your hand now to indicate your intention. Into online questions. I'll read the question and provide an answer or invite an appropriate person to speak to the answer. First question from Mr. [indiscernible]. To what extent have inflation and cost of living crisis affected NSR's financial results? The response to that is inflation cost of living has, of course, impact NSR's results. Increases in labor costs and government charges in particular have analyzed increase. However, NSR has been able to deliver increased efficiency in staffing model to moderate the impact of these increases. Top line revenue growth has meant that net operating income has continued to grow and delivered improved underlying earnings to the securityholders. Pleasingly, we are seeing these cost pressures reducing in recent times. Second question is from Mr. [ Stephen Mayne ]. The 5 main proxy advisers, ACSI, Ownership Matters, Glass Lewis, ISS and ASA recommend a vote against any of today's resolutions, including this rem report on in relation to [ previous question ]. If so what reason did they give? Please don't say they are confidential. It is standard for companies to be across this detail on the voting recommendations and inform shareholders relevant [indiscernible] in full, proxy advisory reports, of course. Our response to that is we did not receive reports from all 5 main proxy advisers that have been listed. We received 2 reports and they voted in favor of all resolutions. This is from [ Stephen Mayne ] in respect to item 8, the [ 5 ] issue in [ 2029 ]. Why are you seeking this approval? Next time you raise capital, will you take a pro rata renounceable approach? Will you treat all shareholders equally rather than selected pricing that don't respect the company rights of the [ 15 proxies ]? NSR policy is NSR is seeking this approval in order to clear its pricing capacity under Listing Rule 7.1. It's customary corporate governance to refresh this capacity to best position the company for the [ coming ] for any potential need for capital. NSR always considers the interest of shareholders in debt or equity raising and the [ ability of shareholders to pay. ] With respect to item 6, the prudent issue FY '27 performance rights. [ Factually summarize this past ] LTI grants as to what they have vested all that. Also, have you sold any securities in the company or are being -- on that relying on an incentive scheme to build with the equity position of the company. Please don't say look it up in the annual report and through ASX announcements. It's complicated and the CEO can factually summarize the situation in 60 seconds. The response is past LTI grants with strict components which have only been in place for the previous 2 years have fully vested. No securities have ever been sold. Yes, I have previously purchased some shares on market.

That's great. And you took less than 60 seconds.

Thank you. Given NSR size, is the ACCC looming as a constraint on further expansion. Our response to that is NSR has approximately 17% market share by area. All acquisitions and developments are assessed for competition issues to mitigate any potential competition issues. This question from Mr. [ Stephen Mayne ] on the remuneration report. There was a 9% [ process side ] on the proxies for this rem report item, which proxy adviser recommended against and do you know what the issue was? Corporate voting is not a [ sacred ballot ] in Australia. So have you investigated who voted against and why? Our response is that no proxy adviser recommended against the remuneration report. We have and will investigate where possible those who voted against report to determine reasons for such a vote and take on this reason to conduct -- to continue to improve the company's remuneration structures as appropriate.

[indiscernible] We'll take that offline to respond.

So that means more questions?

There's one other. Let me direct, but we're trying to find another one.

Thank you.

Questions really specifically at National Storage [indiscernible] is most grown. [indiscernible] It's more general question [indiscernible].

[indiscernible] Any other questions?

[indiscernible] commentary on like other contents. I don't have a question. Thank you so much for taking a moment.

Are there any other questions online?

Chair, there's no verbal question from shareholders at this time.

Okay. So I think we've given sufficient time for questions. So I think we might move on. So that concludes our discussion on the items of business. In a couple of minutes, I'll close the voting system and formally ask [ Jensen ] to act as returning officer to count the votes following the expiry of that period. Can you please ensure that you cast your vote on all resolutions. If you're in person, please ensure that your voting cards have been completed for each resolution for you today. Representatives from our share registry, Computershare, will collect your completed card voting -- your completed voting card shortly. If you are uncertain about any of the voting procedures or require any assistance, please see Computershare staff at the registration desk who will be happy to help you. If you're voting via the online portal, please remember to click on the submit vote at the bottom of the resolution to submit your voting card. I'll now pause to allow you time to finalize your votes. [Voting]

I now declare voting closed. The results of the poll on items 2 to 8 will be released to the ASX shortly and made available on our website today. So in conclusion, thank you for your continued support and for your attendance today. That concludes the official business of the meeting, and I now declare the National Storage REIT 2024 AGM closed. Thank you, and good morning. I think there is coffee [indiscernible] outside. So thank you again.