We are implementing a variety of strategies to expand our reach. We continue to move more advertising dollars to the Internet, which lets us cast a wider net at a lower cost and generates more reservations online. At the same time, we are putting an emphasis on our ability to service national accounts such as pharmaceutical or logistics companies. The call center is already showing better close rates than our previous third-party provider and we believe it will only improve with time. Through highly-trained local sales managers, we are also building relationships with local businesses that need self storage. We plan to expand our third-party management program, under which we operate properties for a management fee as well as retaining tenant reinsurance income. The third-party management program, called 3Plus, will give us even greater national scale, along with a potential future acquisitions pipeline.
Looking ahead
As we look ahead, economic conditions are hard to predict. Much depends on how quickly our country works its way out of the recession. We will continue to be competitive with rates and discounting to attract new customers, which will suppress same-store revenue growth to an extent.
Despite the economic challenges, I remain confident in the fundamentals of Extra Space Storage. Our focus areas for 2009 are to further strengthen our balance sheet and to optimize the operational performance of the properties. We continue to benefit from the strength and continuity of our management team, our ability to seize new opportunities, and our national portfolio of properties in the best markets for self storage.
I would like to thank you for the opportunity to serve you as CEO and to work with our outstanding group of motivated and dedicated employees. The management team and I look forward to leading the company as it meets the challenges and captures the opportunities ahead. For Extra Space Storage, the time is now.
Sincerely,
Spencer F. Kirk, Chairman and CEO
