Andy Liu's questions to U-Haul Holding Co (UHAL) leadership • Q1 2026
Question
Andy Liu from Wolfe Research, LLC sought clarification on monthly transaction volume trends during the quarter, the potential bottom-line impact of future storage revenue, the development cost per square foot for storage, and the calculation method for the stated 10% development yield.
Answer
Jason Berg, CFO, explained that year-over-year transaction volumes have been largely flat, with revenue gains driven by pricing. He clarified that after adjusting for non-productive capital and U-Box warehouse space, the all-in development cost for storage is closer to $150 per square foot. Berg stated the 10% yield represents an unlevered IRR over a 7-10 year horizon, which translates to a cap rate of approximately 7.5-8%. He also estimated that about 80% of revenue from filling existing non-same-store locations would flow to the bottom line.