Peter Stubbs

Thanks, Joe, and hello, everyone. As Joe mentioned, we had a good quarter, driven by occupancy gains, G&A savings and external growth. October to date same-store occupancy is 94.3%, an 80 basis point improvement over last year. In the third quarter, the average new customer move-in rate was negative 9% year over year.
Due to strong occupancy and performance to date, we are raising the bottom end of the Extra Space same-store revenue guidance by 75 basis points, bringing the midpoint to a positive 0.125%. Despite meaningful savings in controllable expense categories, increases in property taxes have made it necessary for us to raise our expense guidance by 25 basis points.
We have also raised the bottom end of our NOI guidance by 75 basis points, bringing the midpoint to negative 1.375%. The Life Storage same-store revenue improved by 0.4% year over year and we saw seasonal declines in occupancy for the Life Storage same-store pool finishing the quarter at 92.9%. This represents an increase of 200 basis points year over year.
October occupancy has increased to 93.2%, 210 basis points over last year. For the Life Storage same-store pool, the sequential change in average move-in rate from the second quarter to the third quarter was negative 1%, much better than normal seasonal declines.
Lower-than-expected pricing power to new customers in the Life Storage same-store pool has led to the reduction in our revenue expectations for the year. We have reduced our annual same-store revenue guidance by 50 basis points at the midpoint. This is partially offset by lower controllable expenses for these properties.
As a result, we are revising our expense guidance downward by 100 basis points at the midpoint. And consequently, we have adjusted life storage same-store NOI guidance to a range of negative 1.5% to positive 0.5% for the year.
Given the steady volume of bridge loans, we have raised the 2024 average outstanding loan guidance and increased our expected interest income. We've also lowered our estimates for G&A and increased our tenant reinsurance guidance.
Interest expense has been updated to account for higher bridge loan volume and an increase in our acquisition guidance. As a result of these revisions, we've raised the lower end of our FFO guidance by $0.05 per share from $7.95 per share to $8 per share, a modest increase at the midpoint.
Our revisions to guidance exclude the impact of Hurricane Milton as we are still assessing the full extent of property damage and tenant insurance claims. We've sustained damage at several REITs and managed properties and three REIT stores remain closed.
As of today, we are currently estimating total property damage and tenant insurance claims to be $10 million or more. Major hurricane costs have historically been added back to our core FFO. Therefore, these amounts have not been contemplated in our guidance.
We've also seen an increase in rental activity and a pause existing customer rate increases in certain markets. We will report full details related to Hurricane Milton with our fourth quarter earnings.
And with that, Michelle, let's open things up for questions.

Question and Answer Session

Operator

(Operator Instructions) Michael Goldsmith, UBS.

Michael Goldsmith

I think in the opening remarks, you said that you're just starting to see the evidence of the benefit of being of a single brand. Can you provide a little bit more detail in terms of what you're seeing -- what have you accomplished so far, what you're seeing? And what gives you confidence that you'll be able to continue to drive the benefit from this brand consolidation?

Joseph Margolis

Sure. Happy to, Michael. Thank you for the question. So just to be clear, we're in very early stages here, right? We did change to the extra-base brand late in the third quarter. So we're several weeks in.
But that being said, we see a slightly better SEO performance from the what was once the Life Storage stores. Some improvement in the low color map section, but lesser than the SEO. The former LSI store conversion rate is better on the Extra Space website than it was on the LSI website.
And we're starting to see some modest savings in paid marketing spend. Now what gives us confidence is when we closed the merger in 2023 and decided to test two brands, we took a pool of 143 Life stores and converted them to Extra Space, and we watch the pattern of improvement of those stores over time.
And we know that it doesn't happen immediately, but over a period of a number of months, up to six months, we will see those converted stores perform as well as stores that have always been branded Extra Space. So we see no reason why the stores we just converted won't act just like those stores and follow the same pattern of improvement, and we're encouraged that we're starting to see the green shoots.

Michael Goldsmith

And my follow-up question is, there's still a pretty wide range for the core FFO guidance and what's implied for the fourth quarter, but can -- what is implied at the midpoint does suggest a material deceleration from the third to the fourth quarter.
Now some of that, I assume, is related to seasonality, but is there any other factors or dynamics at play, which would weigh on the results in the fourth quarter relative to the third quarter?

Peter Stubbs

No, Michael, the biggest difference is just property performance in the fourth quarter, and then it will obviously depend on where you are in that range.

Operator

Todd Thomas, KeyBanc Capital Markets.

Todd Thomas

I just wanted to stick with that line of questioning a little bit, but move to the same-store pool -- just curious there, the guidance implies continued deceleration in the fourth quarter for both the EXR and LSI portfolios. Can you just talk a little bit about whether you have line of sight toward stabilization, just given the ability to drive customer traffic to the portfolio and the higher occupancy rates that you've been able to maintain across both portfolios.

Peter Stubbs

Yes, Todd, it's Scott. So it depends a bit on where you are in that range of guidance. I'll start with the Extra Space pool. It does imply that it is slightly negative at the midpoint. If you're at the high end, it's obviously slightly positive at the low end, it's slightly negative, but there is some stabilization in there. It's fairly flat in the fourth quarter.
The Life Storage pool, again, depending on where you are in the range, at the midpoint, slightly negative to slightly positive at the high end and more negative at the low end, but it does not show significant deceleration either. It's not dropping way down.
It's also not a NIKE solution on its way. Some of the Life Storage has a little noise in it month by month because it's a difficult comp with October being our strongest month as that's when many of the ECRIs hit last year.

Todd Thomas

Okay. That's helpful. And then I just wanted to ask about the hurricanes, just given the comments that you made, I realize it's early and you're still sorting through what's happened in the aftermath a little bit.
Can you just talk about the uptick in rental activity that you mentioned that you're seeing in some of the impacted areas and how that plays out with the pause in ECRIs in some of these markets or states given the state of emergencies and perhaps you can share some occupancy statistics to help provide some color around some of the changes in rental activity that you're seeing in some of those impacted MSAs.

Peter Stubbs

Yes. So we have seen an uptick in rentals, particularly in the Life Storage pool. The occupancies, for instance, have jumped from 92%, 93% to 96% at some of those stores. It's store by store. It's obviously going to be better on the West Coast. You see more of a benefit there than in Miami. Typical hurricane customer is going to stay on average, I think, about 10 months.
So we would expect to benefit from that. State of emergencies, obviously, we're following them. We are implementing those on a store-by-store level, so it's not on a market level. So we would expect to see some benefit from hurricane occupancy, but that typically offsets the damage or partially offset what we spend in the hurricane damage.

Operator

Caitlin Burrows, Goldman Sachs.

Caitlin Burrows

Maybe on the acquisition side, it sounds like you're active and expecting to stay active. I was wondering if you could give some more color on who's selling. And I know in the past, a hurdle had been on the pricing expectations. So just the volume that you're seeing and to the extent that the pricing is now being better agreed upon on the buyer and seller side?

Joseph Margolis

Sure. It's a good question, but I'm not sure I have a market-wide answer, right? We see a lot more activity. But until transactions get actually closed and reported. It's hard to tell what's true and what's actually activity.
I know from Extra Space side, we have a number of discussions underway. Some on-market, some off-market, that we're very confident we'll end up as accretive transactions.

Caitlin Burrows

Okay. And then maybe as we think about move-in rents, we know about the headwinds that the sector has been facing, but I guess if you consider properties where the move-in rate trends have been relatively stronger. Is there anything that you could point out that's different there?
Is it less supply, easier comps? I know you've talked about that in the past, like in urban versus not urban indication of like housing impacts or regional, but anything else you can mention on the stronger move in properties versus not as strong.

Joseph Margolis

I think the two factors you mentioned are the most important factors. One is new supply in markets where there's been heavy supply deliveries. It's just harder. And then secondly is the comps. If a market like Atlanta or Phoenix has had several years of very, very strong revenue growth, it's hard to have additional years of very strong revenue growth.
And particularly, the markets that have both of those factors are probably the toughest markets. But it's cyclical, right? Real estate, cyclical. Markets are cyclical, and that's why we believe in a highly diversified portfolio. So we have exposure to some markets that are on different ends of the cycle.

Operator

Joshua Dennerlein, Bank of America Securities. Okay. Spenser Allaway, Green Street.

Spenser Allaway

Maybe just piggybacking off (inaudible) question. Did you guys happen to provide the cap rates on the transactions you guys closed in the quarter? And sorry if you did.

Joseph Margolis

I don't think we did provide cap rates on the transactions we closed. I could tell you for all of the deals that we've approved this year, the up -- we've had 10 wholly owned operating deals with first year yield in the low fives, about 13 months to stabilization and a 6.5 average stabilized yield. The same thing with remote stores. We've done nine wholly owned remote stores, very similar returns.
And then our JV deals, we have had eight JV deals, five operating stores. First year yields at 10, stabilized yields at 12%, and that's because of the economic benefit of the joint venture. And then we approved three developments at 8.6 development yield.

Spenser Allaway

Great. And then as it relates to the rebranding of the legacy LSI assets, can you just remind us what the costs have been to date for that endeavor?

Joseph Margolis

Gosh, I don't have cost to date numbers. It's probably pretty modest because what we've done (inaudible) is put banners up at the stores and then the rest has been digital. We expect total cost of about $117 million, but that includes $20 million of nonbranding capital costs that were delayed pending the test and the decision which store to go. So the store needed to be repainted and we decided not to be painted until we knew which color to be painted.

Jeff Norman

Our underwriting for the deal, we assumed $75,000 of property or $90 million. So it was obviously in our returns when we announced the deal.

Operator

Juan Sanabria, BMO Capital Markets.

Juan Sanabria

Just a quick one to start. I know you gave the October occupancies. But can you give us a sense of where the new customers came in the door at relative to last year?

Peter Stubbs

So our average rate to new customers for the quarter was negative 9% year over year, and our average new customer rate in October was negative 8%. So I think some people have wondered or rates getting stronger. Are they significantly better?
We would tell you that October feels a lot like September and August and any difference on a month-by-month basis is caused more by a comp than seeing significant changes so far. And that's on the EXR pool.

Juan Sanabria

Okay. And then just on the guidance for LSI. I was a little bit confused about the commentary in the prepared remarks, you said that seasonality. Correct me if I'm wrong, I thought it was better than expected, but yet guidance is cut with lower pricing power. So just hoping you could help square those two different comments that you've made previously?

Joseph Margolis

Yes. So LSI, I mean, has not performed as expected this year, right? We've cut revenue guidance now twice for those stores. And really, three things have contributed to that. One is that the markets in 2024 is weaker than we projected in the beginning of the year. That just is.
And then secondly, the markets that LSI has disproportionate concentration have performed disproportionately weaker. So think of Florida, where LSI has a larger concentration than Extra Space proportionately. And then the third thing is we didn't get the benefit of the dual brand that we expected.
And that's why we made the decision this summer to move to the single brand and hope to get the expected benefit from that. So those are the three largest factors that led to us having to reduce revenue guidance for LSI.

Juan Sanabria

Okay. So it sounds like maybe some of the overweight (inaudible) Florida markets deteriorated a bit more than you expected in the back half of the summer, early fall? Would that be fair to say?

Joseph Margolis

That's very fair to say, yes. (technical difficulty)

Jeff Spector

I guess first question is going back to the fourth quarter and what's assumed in guidance. Can you just give us a feel for occupancy, how to think about that in the fourth quarter?

Sorry, who is this?

Nick Yulico

This is Nick Yulico, Scotiabank.

Joseph Margolis

So Nick, we had technical difficulties, and we couldn't hear anything. So -- but we're back now. And if you wouldn't mind repeating the question, we can jump right back into it. Sorry about that.

Nick Yulico

Yes, sure. Sure. So just the question is going back to the fourth quarter and what's assumed in guidance. Can you give us a feel for how occupancy is expected to trend?

Peter Stubbs

Yes. Nick, so it's Scott. We typically don't model occupancy and rate. It's more modeling revenue -- and so we would tell you that there's not extreme revenue drop off and not extreme revenue growth is all that we can really say there.

Joseph Margolis

I would expect we're going to continue to operate at higher than historical occupancy levels.

Nick Yulico

Okay. All right. And then the other question is just going back to LSI and the synergies. I know you've changed the revenue outlook. But I guess going back to those -- the June nonrevenue pieces on the synergies, can you just give us a feel for latest thoughts on how you're trending versus those expectations?

Joseph Margolis

Sure. Happy to. So we were targeting $100 million in synergies in three categories: G&A, tenant insurance and properties. And we're doing very, very well in the ones that we control. So G&A, we're now looking at about $53 million worth of synergies, well, well in excess of our initial estimate.
Pet insurance, we're looking at about $27 million of synergies. And then from the properties, it depends on where you are in the range of guidance anywhere from 0 to 10. So overall, about $80 million to $90 million of the $100 million. And we believe we originally targeted $65 million in the property synergies.
We do believe we can eventually get there -- we just need some market improvement, move to the single brand and some time and we'll get there. And of course, these $100 million of synergies doesn't include all the other benefits of the merger.
The increase in our management business, in our bridge loan business, the many procurement and IT contracts we've renegotiated due to our new scale and got savings there value-add projects that we've identified and started to execute at the Life Storage properties. So the $100 million relates to just those three categories, not the total benefit of the merger.

Operator

Eric Wolfe, Citi.

Eric Wolfe

Maybe just a follow-up on LSI. I think last quarter you mentioned that you expected your Life Storage portfolio to outperform your legacy EHR portfolio in 2025. I was just curious if that's still the case or if some of the weakness in the Sunbelt markets has changed that view.

Joseph Margolis

No. Life Storage portfolio is outperforming the Extra Space portfolio this year, and I would expect it to do the same next year.

Eric Wolfe

And that's not just across the same markets, right, it's across -- that's comparing one directly versus the other, meaning LSI, like the same-store pool versus the other same-store pool? Am I right about that?

Joseph Margolis

Yes. Correct.

Eric Wolfe

And then you mentioned in your release and just a moment ago about occupancy being stronger than it normally is through the rest of the year. So I guess, what are you looking for to try to dial up move-in rates? Like what would it take over the next, say, three to six months, you have strong occupancy. So like what else are you looking for to try to get more aggressive on moving rates.

Joseph Margolis

So I'm sorry if I'm going to state the obvious. We talk about aggregate data here. But every night, the algorithms look at every unit type in every building and adjust rates. So as we speak today, there are rates in certain unit sizes in certain buildings in certain markets that are moving up.
And the algorithm looks at many, many very historical data, number of move in, number of vacates and a bunch of projected performance to make those decisions. And the aggregate of all of those decisions is what we report, but it's not like any group of us sitting here in Salt Lake City and look for a few macro things and decide we're going to increase rates 5% or decrease rates 2%.

Eric Wolfe

Right. Yes, I'm not -- I completely understand that. I guess from our perspective, you're just looking at occupancy and see that it's relatively full and better than it normally is. And so I don't know if there's some demand. I'm just trying to understand the algorithm like what demand indicators.
I don't know if you can list a couple that are maybe lower than normal or otherwise suggesting that you need to be cautious on moving rates. And I get that there's many factors you're looking at and your projections in the future? I'm just trying to understand generally what the main ones are.

Joseph Margolis

Okay. Sure. Let me give you a better answer then. Hopefully, a better answer. So one thing that we're constantly doing is the algorithms will produce a price for a unit type in a building. And we will always have a test running where a certain number of stores will add 5% to that algorithm number and a certain number of stories will subtract 5% from that algorithm number.
So we'll be able to tell at these different price bands, right? The algorithm produced price bands, 5% higher, 5% lower, and you look at number of rentals, rate, cost to acquire that customer, ECRI and length of stay and come up with a customer value.
And that will tell us that the algorithm produced number, produces the best long-term revenue. Or if we intervened and went 5% lower or 5% higher, where we would do better. And that's an ongoing test we run to help us understand if the algorithm rhythmic produce prices is, in fact, producing the best result for us. Is that helpful?

Eric Wolfe

Yes. That's helpful.

Operator

Joshua Dennerlein, Bank of America.

Jeff Spector

This is Jeff Spector for Josh. Sorry, we had technical difficulty before. And I apologize if you already discussed this, Joe, you talked about occupancy and the strength in occupancy trajectory. And just given the time of the year, I know we typically like to ask, how are you feeling right now as we're entering November, and how does that -- how do you feel the year will end?
And how does it bode heading into '25 compared to, let's say, prior years. And I know we had a number of years where there wasn't seasonality, but if you go back pre-COVID, right, how does this compare in terms of now this high occupancy level and then thoughts into '25.

Joseph Margolis

So I feel good that our people and processes and systems are optimizing performance in a difficult market. I feel better if it wasn't a difficult market, but I can't control that. But I feel really good that everything we're doing, the strategies we're implementing, the tests that we're undertaking is squeezing as much juice out of the fruit as we possibly can. I also feel very good that at a high level of occupancy when the market turns and the market will turn.
We are in a really good position to benefit from that quickly. I feel good that everything we see confirms moderation in new supply. So that makes me feel good as well. So I certainly feel better if we're having 6% revenue growth, but we're not going to have that this year. And all we can do is make the best of it and position ourselves well for the future.

Jeff Spector

Okay. That's fair. And then my second question is again on LSI. You talked about the lack of pricing power there, and I keep thinking about your -- you want to again, use the EXR systems fully into the LSI portfolio. And you're saying it's outperforming. But again, there seems to be some weakness there, right?
It feels like at least tell me if I'm wrong, between that LSI customer possibly versus the EXR customer. So what gives confidence that you can really push on that LSI customer as we enter '25. So again, I think of those markets as more tertiary, secondary markets, that consumer is more squeezed today than ever.

Joseph Margolis

So we don't see that difference in consumer. We think the storage consumer is the storage consumer, whether regardless of what product they go to the -- their behavior is very similar. We don't see significant difference in bad debt or reaction to ECRI or other behavior between markets? So I don't -- I'm not sure I agree with the thesis there.

Peter Stubbs

And Jeff, I'd maybe point to a couple of other things. One is we went into this with a 400 basis point delta in occupancy that we had to make up. So we went in with softer rates partly to gain occupancy there. Recently, we switched our algorithm over time, that will even things out.
In addition, you had a brand and a thesis going in where we thought the dual brand was going to compensate, and we would actually have higher growth as a result of the dual brand. We haven't found that and we now believe that it's going to do better on a single brand. That change just happens. So we're still optimistic and feel like it's been tough timing, and we think that there's still a lot of good growth in that portfolio.

Operator

Eric Luebcow, Wells Fargo.

Eric Luebchow

I appreciate you taking the question. Maybe could you comment a little bit on the move in to move-out spread, I think it had been the negative 30% range, maybe a little bit north of that.
And then as you look out over the next one to two years, I mean, where do you think that spread has to go to get back to what would be a more typical same-store growth rate based on your current pacing of ECRIs? Is it negative 20%, negative 15%. Maybe any color there would be helpful.

Peter Stubbs

Yes. So for the quarter, we averaged just over 30%. Moving into October, you were mid- to upper 30s, which is the growth from the second to the third quarter is common at this time of the year, you typically -- that spread usually does get larger. I think it will depend a little bit on how strong the market comes back and what we do with pricing strategy.
Today, we found the most effective way to attract new customers is with the lowest rate. It's possible that changes as the market strengthens. So it's hard to comment on that until we see it and have confidence on which pricing strategy is going to work best.

Eric Luebchow

Got you. I appreciate that. And just a follow-up on rate is between the LSI and EXR properties, I guess, more for like-for-like markets, how much of a spread you still have remaining there? And as you work through this new branding strategy, when you think that can continue to close or hit parity?

Joseph Margolis

So on like-for-like properties, our spread is about 6% today, and it was closer to the 16 at closing. And there's no reason that, that should be zero at one point. when you look at like-for-like markets, we haven't made as much progress.
We've only closed about 2% of the rate gap, although we have closed the occupancy gap meaningfully for those stores. And I don't think we'll ever get to parity there, but we will close some more of the rate gap.

Operator

Hongliang Zhang, JPMorgan.

Hong Zhang

I guess, my first question is, as you look towards next year, how do you think your pricing power and top of phone demand would compare to, I guess, this year and pre-COVID levels?

Joseph Margolis

Well, that's the crystal ball question, right? I think we need to understand interest rates. We need to understand the housing market. We need to understand the health of the economy and the consumer. And all of those things will drive into storage demand and our ability to push pricing. So I wish I had a crystal ball, but I don't.
I do know that -- and sorry to repeat myself, whatever environment we're faced with, we will be able to maximize performance and do well. And also that we have all of these other ancillary businesses and tools that can help support company performance in periods when perhaps the stores aren't doing as well.

Hong Zhang

Got it. And my second question is with the EXR, LSI -- with LSI working on our same brand as EXR, are there any quantifiable cost savings you'll realize over the near term, say marketing?

Joseph Margolis

So the easiest cost saving to quantify is we were spending on an annual run rate basis, $10 million more in paid search for the LSI stores to make up for the relative weakness in organic sections of the search.
So once we -- not immediately on day one, but once we get the LSI stores the parity with the extra space stores, we shouldn't have to spend that extra $10 million. And then the second savings, which is more difficult to quantify is with more stores on the Extra Space brand, the (inaudible) brand should be stronger, leading to additional marketing savings.

Operator

Ronald Kamdem, Morgan Stanley.

Jeff Spector

You have Jenny on for Ron. I just have two quick questions. The first is, can you please comment on the magnitude of ECRI for (inaudible)? Like do you put there at a similar like pace for both pools? Or you do like the EXR harder than the other one?

Joseph Margolis

So they're both on the same ECRI program now. So there's no difference in -- by original brand of the store in a pace or amount of ECRI.

Jeff Spector

I think the second one, actually, I'm really curious about your views or commentary on the moving rate because we know like moving rates continue to be weak. And do you think it's actually overcorrected by your model? And going forward, do you -- you give us a feeling that you prioritize occupancy over pricing, but if that's going to be continued your focus going forward in Q4 and '25?

Joseph Margolis

So we prioritized long-term revenue and whatever mix of occupancy and rate and the other various factors produced the long-term revenue. That's what we'll follow. Right now, the data is showing us to lean a little heavier into occupancy than we did. But if the data ever tells us something differently across the board or for a particular store or market, then we'll follow that.

Operator

Samir Khanal, Evercore ISI.

Samir Khanal

Joe, on your comments about ECRI, I know you talked about the magnitude being similar for both LSI and EXR now. But I mean, has there been any pushback at all that you're seeing from the customers at this point?

Joseph Margolis

So there's always what you would call, pushback from the customers, right? Some customers move out because the space got too expensive for them or some customers move out because when we notify them, their rate went up, they remind them they have storage and they don't need it anymore.
But we track that very carefully what percentage of customers are moving out because they got an ECRI notice, and we do that because every month, we keep a control group and track different behavior. So we know the excess move-outs were causing by our ECRI program, and it's within an acceptable range today and if it ever changes, then we can adjust our program accordingly.

Samir Khanal

Okay. Got it. And I guess my second question is around your bridge loan program. And you've been pretty active on that front this year as well right? It's led to higher interest income in the financials. So help us think through how to think about the volume or the program into next year? And what does that opportunity set look like?

Joseph Margolis

So we've had a very strong year in bridge loan originations. I think one of the reasons of that was we had a whole new group of LSI partners that we got to know and made a lot of bridge loans to them. So that was helpful. Another reason was the acquisition market was difficult. There was a bid-ask spread we've talked about.
So some owners decided instead of trying to sell in the current market, they'll get a bridge loan and try again in three years. So volumes were good. Next year, we have some meaningful maturities, some of those will extend, some will pay off and some will buy. So that will have some downward pressure on our book of business.
But we continue to remain -- I expect we'll continue to remain active and make new loans. It all depends on opportunities. We're not going to make bad loans just to keep our our book of business large, and we're not going to pass by opportunities because we think we've made too many bridge loans because we can always sell A notes which we've done to manage our exposure.

Operator

Omotayo Okusanya, Deutsche Bank.

Omotayo Okusanya

I just wanted to stay on the credit lending platform and the line of questioning there. Again, the loan that was sold this quarter, could you just talk a little bit about the characteristics of those loans, why you decided it made sense to sell it. And if we just confirm where you're doing this as you're selling eight pieces, but just so holding on to a residual.

Joseph Margolis

So we make a calculation of loans that are easy to sell. So for example, if we have a $20 million loan and $4 million or $5 million loans, it may make more sense to sell the A on the $20 million because it's one transaction as opposed to 4 separate transactions.
Also, our buyers have preferences for certain markets or where they have exposure where they don't. So clearly, the buyers have input into this as well. So there's no formula lookup table. It's more business judgment on which loans to sell. And I'm sorry, what was the second part of the question?

Omotayo Okusanya

For the loans (inaudible), do you sell the whole loan? Or are you holding onto a residual?

Joseph Margolis

Yes. I'm sorry. Yes, we sell the A piece and we keep the mess. So we do keep -- we keep residual. So the whole loan -- the whole capital stack is 100%. We're selling 55 or 60 and keeping the balance up to 75 or 80.

Omotayo Okusanya

Got you. That's helpful. And then just to talk a little bit about one of your other growth drivers, which is the third-party asset management. Again, you continue to grow in that space, and I know that each each management agreement is different and unique to each operator.
But just curious, again, if you could just talk thematically about anything that may be happening to improve profitability of that business as you continue to grow it?

Joseph Margolis

So we're continuing to grow the business for a couple of reasons. One is there's one less competitor out there, right? LSI was a competitor for this business, and they don't -- they're us now. We have develop relationships with all the owners who LSI used to manage for.
And for many of them, we're growing that relationship. Also, the operating environment is harder and when the operating environment is harder, more noninstitutional owners seek professional management, right? Our -- if you look at our occupancies compared to the occupancies and performance of the small operators. In general, we're significantly outperforming them.
And I also think we're growing the business because we do an excellent job in running the properties, communicating with our owners and providing great customer service. And because of that, we have a great reputation. So even though we are the most expensive in the business, more expensive and have very healthy margins, we're also growing the business faster than anyone else.

Operator

Ki Bin Kim, Truist.

Ki Bin Kim

Just a couple of quick follow-ups here. Could you comment on LSI street rate trends in the quarter and into October?

Peter Stubbs

So on a year over year basis, Ki Bin, we have a difficult time partly because on a year over year basis, we didn't manage them for the whole quarter, so we don't have perfect data on that. For the quarter, quarter over quarter, their rates are down 1%, so just on a quarter over quarter basis, you didn't see as much of a seasonal decline as you saw in the Extra Space portfolio.

Ki Bin Kim

Okay. And you mentioned that there's a 6% spread on a like-for-like basis. In order for that to close, do you ultimately need top of the funnel demand to be better? Or do you think on a single brand strategy and whatever else you guys are working on, do you think you can close that gap holding everything else constant.

Joseph Margolis

I think the latter. I think on the stores that are like-for-like, same quality store in the exact stream trade area, same type of store, once we're on a single brand and have some time, we'll close that gap.

Ki Bin Kim

Okay. And just last question on the bridge loans. Of the 300 plus or minus maturity for next year, roughly do you know what percent what extent?

Joseph Margolis

So half of those loans aren't maturing until November and December last year. So we have quite some time before we fully understand are they going to satisfy all the tests to extend or not. So it's hard to give an accurate percentage at this time.

Jeff Norman

(inaudible) to meet any of those requirements. So they still have a fair amount of time before maturity.

Operator

Now, I'm showing no further questions. So with that, I'll hand the call back over to management for closing remarks.

Joseph Margolis

Great. Thank you, everyone, for your interest in Extra Space and your time. I apologize for the technical difficulties we had today. We look forward to seeing everyone at the upcoming meetings. Have a great day.

Operator

Ladies and gentlemen, thank you for participating. This does conclude today's program, and you may now disconnect.