Self storage- Financial Lending update 09 2023

[Henry Clark]

Just doing an update/ checkin with our major bank.   For reference they are a regional state bank.  Federal lending limit around $20mm per customer as a reference point.

Asked how is the financing outlook from their banks standpoint.

1.   They aren’t calling any loans yet.

2. Most of the Covid money has now been spent so they don’t have those large deposits they need to loan out.  Thus tighter with lending.

3.  Customers whose 5 year balloons are coming due they are taking them to longer amortization’s.  Say 10 out to 20 to get the cash to flow properly if needed.

4.  New loans, unless you’re already doing business and have deposits with them, they are passing on new loans.  
5.  We have two or three projects we may pull the trigger on.  They are set to go with them as long as the financials look good on the project. 

No real change in our banking.  But that is due to our bank loyalty and not shopping every loan.  Plus they know us and our risk reward levels.