Extra Space Storage Inc. Reports 2025 Fourth Quarter and Year-End Results

Rhea-AI Summary

Extra Space Storage (NYSE: EXR) reported results for the three months and year ended December 31, 2025. Net income per diluted share was $1.36 in Q4 2025 and $4.59 for full-year 2025, a 13.9% annual increase. FFO was $1.99 per share in Q4 and $7.90 for 2025; Core FFO was $2.08 (Q4) and $8.21 (2025). Same-store revenue grew 0.1% for 2025 while same-store NOI fell (1.7)%. The company closed $483.6M of operating-store acquisitions and completed a $342.2M buyout of JV interests. Ending same-store occupancy was 92.6% and the company repurchased $149.5M of shares in 2025.

Positive

• Net income per diluted share +13.9% to $4.59 for full-year 2025
• Closed $483.6M of operating-store acquisitions (41 stores) in 2025
• Purchased JV partners' interests for $342.2M, adding 28 wholly owned properties
• Originated $409.4M in mortgage and mezzanine bridge loans during 2025

Negative

• Same-store net operating income declined (1.7)% for full-year 2025
• Ending same-store occupancy fell to 92.6% as of December 31, 2025 from 93.3%
• Total same-store operating expenses increased 4.9% year-over-year in 2025

Key Figures

Q4 2025 EPS: $1.36 per diluted share Q4 2025 Core FFO: $2.08 per diluted share 2025 Core FFO: $8.21 per diluted share +5 more

8 metrics

Q4 2025 EPS $1.36 per diluted share Net income attributable to common stockholders, up 9.7% YoY

Q4 2025 Core FFO $2.08 per diluted share Core FFO per share, up 2.5% YoY

2025 Core FFO $8.21 per diluted share Full-year 2025 Core FFO per share, up 1.1% YoY

2025 same-store NOI (1.7)% change Full-year same-store net operating income vs prior year

Same-store occupancy 92.6% Ending same-store occupancy as of December 31, 2025

2025 acquisitions $483.6 million Cost of 41 wholly-owned operating stores acquired in 2025

2025 share repurchase 1,158,244 shares for $149.5 million Full-year common stock repurchases at $129.10 average price

2026 Core FFO guidance $8.05–$8.35 Company’s 2026 Core FFO per share outlook range

Market Reality Check

Price: $146.09 Vol: Volume 395,773 is well be...

low vol

$146.09 Last Close

Volume Volume 395,773 is well below the 20-day average of 1,377,911, indicating muted trading interest ahead of/around the release. low

Technical Shares at $145.18, trading above the 200-day MA of $141.8, showing a pre-existing upward bias into the print.

Peers on Argus

EXR was down 0.15% while key peers were mixed: PSA +0.14%, PLD +0.37%, REXR +0.3...

EXR was down 0.15% while key peers were mixed: PSA +0.14%, PLD +0.37%, REXR +0.32%, LINE -3.02%, CUBE -0.21%. This points to a company-specific reaction rather than a uniform sector move.

Historical Context

5 past events · Latest: Feb 13 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 13	Dividend declaration	Positive	+1.0%	Announced Q1 2026 cash dividend of $1.62 per share.
Jan 22	Tax reporting update	Neutral	-1.6%	Provided detailed 2025 dividend tax allocations for shareholders’ filings.
Jan 20	Earnings call scheduling	Neutral	-0.1%	Set date and time for Q4 and year-end 2025 earnings release and call.
Jan 05	Management promotion	Positive	+3.3%	Promoted Noah Springer to President, expanding oversight of operations.
Nov 20	Dividend declaration	Positive	+2.1%	Declared fourth quarter 2025 dividend of $1.62 per share.

Pattern Detected

Recent EXR headlines (dividends, tax info, management changes) have generally seen benign-to-positive price alignment, with no instances of clear negative divergence.

Recent Company History

Over the past several months, EXR’s news flow has centered on capital returns and corporate housekeeping. Dividend announcements at $1.62 per share around Nov 20, 2025 and Feb 13, 2026 both saw modest positive price reactions. Administrative items like tax reporting details and earnings date scheduling produced negligible moves. A leadership promotion to President on Jan 5, 2026 coincided with a stronger uptick. Against this backdrop, the 2025 year-end results extend a narrative of steady operations and consistent shareholder distributions.

Market Pulse Summary

This announcement details steady 2025 performance, with net income per diluted share at $4.59 and Co...

Analysis

This announcement details steady 2025 performance, with net income per diluted share at $4.59 and Core FFO per share at $8.21, alongside high occupancy of 92.6%. Same-store NOI softness at (1.7)% and slightly lower occupancy contrast with ongoing acquisitions and share repurchases. The 2026 Core FFO outlook of $8.05–$8.35 highlights measured growth expectations. Investors may watch same-store revenue, expense trends, and returns from acquisitions and bridge loans as key markers of execution.

Key Terms

funds from operations, net operating income, certificate of occupancy store, bridge loans, +3 more

7 terms

funds from operations financial

"Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.99 per diluted share."

Funds from operations (FFO) measures the cash a real estate-focused company generates from its core property operations by adjusting net income to add back non-cash expenses like building depreciation and removing one-time gains or losses from property sales. Investors use FFO like a household’s monthly take-home pay—it's a clearer view of ongoing cash available to pay dividends, maintain properties and fund growth than raw accounting profit.

net operating income financial

"same-store net operating income ("NOI") increased by 0.1% compared to the same period in the prior year."

Net operating income is the profit a business makes from its core operations after subtracting the costs directly related to running those operations, but before accounting for taxes, interest, or other expenses. It shows how efficiently a company is generating income from its main activities. Investors use this figure to assess the company's operational performance and profitability.

certificate of occupancy store technical

"acquired one store at completion of construction ("Certificate of Occupancy store" or "C of O store")"

A certificate of occupancy for a store is an official local government document that confirms a retail space has passed inspections and is legally approved to be used for business. For investors it matters because it affects whether a location can open, be leased, sold or repurposed—think of it like a “driver’s license” for a building that reduces legal, safety and financial risks tied to operating a store.

bridge loans financial

"Originated $80.4 million in mortgage and mezzanine bridge loans and sold $16.2 million in mortgage bridge loans."

A bridge loan is a short-term loan used to cover immediate cash needs until a company secures longer-term financing or completes a sale. Like a temporary bridge that gets you across a river while a permanent bridge is built, it keeps operations moving but often comes with higher interest or stricter terms, so investors watch them for signs of cash stress, possible extra costs, or changes in ownership and dilution risk.

commercial paper program financial

"the Company's commercial paper program had total capacity of $1.0 billion, with $680.0 million in outstanding issuances."

A commercial paper program is a formal way a company issues very short-term IOUs to raise quick cash, typically for days to months, without using a bank loan. Investors care because it shows how the company manages short-term funding and how trustworthy it appears—like watching whether someone keeps using and repaying a credit card; frequent use or higher costs can signal cash strain, while smooth issuance suggests healthy liquidity.

weighted average interest rate financial

"The combined weighted average interest rate was 4.3% with a weighted average maturity of approximately 4.5 years."

A weighted average interest rate is the combined interest rate for a group of loans, bonds, or debt instruments calculated so that larger balances count more than smaller ones — like averaging prices in a shopping cart but giving more weight to items you buy more of. Investors care because it shows the true overall cost of borrowing or the blended yield on a portfolio: changes affect a company’s interest expense, cash flow and profit margins, and therefore its valuation and risk profile.

sofr financial

"Weighted average one-month SOFR | 3.46 % | | 3.46 %"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

AI-generated analysis. Not financial advice.

SALT LAKE CITY, Feb. 19, 2026 /PRNewswire/ -- Extra Space Storage Inc. (NYSE: EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a member of the S&P 500 index, announced operating results for the three months and year ended December 31, 2025.

Highlights for the three months ended December 31, 2025:

• Achieved net income attributable to common stockholders of $1.36 per diluted share, representing a 9.7% increase compared to the same period in the prior year.
• Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.99 per diluted share. FFO, excluding adjustments ("Core FFO"), was $2.08 per diluted share, representing a 2.5% increase compared to the same period in the prior year.
• Same-store revenue increased by 0.4% and same-store net operating income ("NOI") increased by 0.1% compared to the same period in the prior year.
• Reported ending same-store occupancy of 92.6% as of December 31, 2025, compared to 93.3% as of December 31, 2024.
• Acquired 27 operating stores for a total cost of $304.8 million.
• In conjunction with joint venture partners, acquired seven operating stores for a total cost of approximately $106.9 million, of which the Company invested $10.7 million.
• Repurchased 1,089,659 shares of common stock for $140.9 million at an average share price of $129.32.
• Originated $80.4 million in mortgage and mezzanine bridge loans and sold $16.2 million in mortgage bridge loans.
• Added 78 stores (45 stores net) to the Company's third-party management platform. As of December 31, 2025, the Company managed 1,856 stores for third parties and 407 stores in unconsolidated joint ventures, for a total of 2,263 managed stores.
• Paid a quarterly dividend of $1.62 per share.

Highlights for the year ended December 31, 2025:

• Achieved net income attributable to common stockholders of $4.59 per diluted share, representing a 13.9% increase compared to the same period in the prior year.  
• Achieved FFO of $7.90 per diluted share, and Core FFO of $8.21 per diluted share, representing a 1.1% increase compared to the same period in the prior year.
• Same-store revenue increased by 0.1% and same-store NOI decreased by (1.7)% compared to the same period in the prior year.
• Acquired 41 operating stores for a total cost of $483.6 million.
• Acquired the interest of our joint venture partners in three separate partnerships for $342.2 million. The Company now wholly owns the 28 properties previously owned by these entities. Also acquired six additional properties by exchanging ownership interest in 17 properties from an existing joint venture.
• In conjunction with joint venture partners, acquired ten operating stores, completed the development of two stores, acquired one store at completion of construction ("Certificate of Occupancy store" or "C of O store") for a total cost of approximately $183.6 million, of which the Company invested $53.5 million.
• Repurchased 1,158,244 shares of common stock for $149.5 million at an average share price of $129.10.
• Originated $409.4 million in mortgage and mezzanine bridge loans and sold $122.1 million in mortgage bridge loans.
• Added 379 stores (281 stores net) to the Company's third-party management platform. 

Joe Margolis, CEO of the Company, stated: "The team delivered steady results in 2025, achieving industry-leading occupancy and new customer rate growth, resulting in positive same-store revenue growth. Core FFO per share grew 1.1%, driven by the strength of our third-party management and bridge loan platform. Our joint venture relationships and disciplined capital allocation enabled us to source creative, off-market investment opportunities that will generate attractive long-term future returns.

As we look ahead to 2026, we are seeing positive trends. We believe customer rates are strengthening, new supply is moderating, and our portfolio is well-positioned to benefit as the operating environment improves. Along with the steady contributions from our ancillary businesses, we expect to deliver improving results in the coming year."

FFO Per Share:

The following table (unaudited) outlines the Company's FFO and Core FFO for the three months and year ended December 31, 2025 and 2024.  The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data):

	For the Three Months Ended December 31,								For the Year Ended December 31,
	2025				2024				2025				2024
			(per share)1				(per share)1				(per share)1				(per share)1
Net income attributable to common stockholders	$    287,395		$       1.36		$   262,487		$           1.24		$   973,999		$       4.59		$    854,681		$      4.03
Impact of the difference in weighted average number of shares – diluted2			(0.06)				(0.05)				(0.19)				(0.17)
Adjustments:
Real estate depreciation	166,741		0.75		156,027		0.70		655,452		2.95		618,189		2.78
Amortization of intangibles	2,975		0.01		28,305		0.13		20,316		0.09		113,886		0.51
Loss (gain) on real estate assets held for sale and sold, net	6,079		0.03		(37,714)		(0.17)		76,310		0.34		25,906		0.12
Unconsolidated joint venture real estate depreciation and amortization	8,852		0.04		8,907		0.04		32,748		0.15		32,678		0.15
Unconsolidated joint venture gain on sale of real estate assets and sale of a joint venture interest	(45,167)		(0.20)		—		—		(54,521)		(0.25)		(13,730)		(0.06)
Income allocated to Operating     Partnership and other noncontrolling interests	13,469		0.06		15,314		0.07		48,539		0.22		45,551		0.21
FFO	$    440,344		$       1.99		$   433,326		$           1.96		$ 1,752,843		$       7.90		$ 1,677,161		$      7.57
Adjustments:
Non-cash interest expense related to amortization of discount on unsecured senior notes, net	12,350		0.05		11,157		0.05		47,519		0.22		43,720		0.20
Amortization of other intangibles related to the Life Storage Merger, net of tax benefit	3,917		0.02		5,761		0.02		16,283		0.07		26,959		0.12
Acceleration of share-based compensation expense due to executive officer retirement	4,200		0.02		—		—		4,200		0.02		—		—
Impairment of Life Storage trade name	—		—		—		—		—		—		51,763		0.23
CORE FFO	$    460,811		$       2.08		$   450,244		$           2.03		$ 1,820,845		$       8.21		$ 1,799,603		$      8.12
Weighted average number of shares – diluted3	221,727,769				221,329,035				221,891,065				221,623,954

(1)	Per share amounts may not recalculate due to rounding.
(2)	The adjustment to account for the difference between the number of shares used to calculate earnings per share and the number of shares used to calculate FFO per share. Earnings per share is calculated using the two-class method, which uses a lower number of shares than the calculation for FFO per share and Core FFO per share, which are calculated assuming full redemption of all OP units as described in note (3).
(3)	Extra Space Storage LP (the "Operating Partnership") has outstanding preferred and common Operating Partnership units ("OP units"). These OP units can be redeemed for cash or, at the Company's election, shares of the Company's common stock. Redemption of all OP units for common stock has been assumed for purposes of calculating the weighted average number of shares — diluted, as presented above. The computation of weighted average number of shares — diluted, for FFO per share and Core FFO per share also includes the effect of share-based compensation plans.

Operating Results and Same-Store Performance:

The following table (unaudited) outlines the Company's same-store performance for the three months and year ended December 31, 2025 and 2024 (amounts shown in thousands, except store count data)¹:

	For the Three Months Ended December 31,				Percent		For the Year Ended December 31,				Percent
	2025		2024		Change		2025		2024		Change
Same-store property revenues2
Net rental income	$      639,489		$     636,530		0.5 %		$ 2,549,537		$ 2,540,782		0.3 %
Other income	24,744		25,278		(2.1) %		99,277		104,752		(5.2) %
Total same-store revenues	$      664,233		$     661,808		0.4 %		$ 2,648,814		$ 2,645,534		0.1 %
Same-store operating expenses2
Payroll and benefits	$        42,387		$       39,983		6.0 %		$   164,241		$   158,699		3.5 %
Marketing	14,763		13,781		7.1 %		63,166		60,059		5.2 %
Office expense3	19,727		19,765		(0.2) %		80,381		80,565		(0.2) %
Property operating expense4	16,032		16,950		(5.4) %		69,649		69,108		0.8 %
Repairs and maintenance	13,782		12,547		9.8 %		55,391		51,742		7.1 %
Property taxes	73,079		75,654		(3.4) %		298,563		277,569		7.6 %
Insurance	8,559		7,619		12.3 %		32,626		30,586		6.7 %
Total same-store operating expenses	$      188,329		$     186,299		1.1 %		$   764,017		$   728,328		4.9 %
Same-store net operating income2	$      475,904		$     475,509		0.1 %		$ 1,884,797		$ 1,917,206		(1.7) %
Same-store square foot occupancy as of quarter      end	92.6 %		93.3 %				92.6 %		93.3 %
Average same-store square foot occupancy	93.1 %		93.6 %				93.7 %		93.3 %
Properties included in same-store5	1,804		1,804				1,804		1,804

(1)	A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income."
(2)	Same-store revenues, operating expenses and net operating income do not include tenant reinsurance revenue or expense.
(3)	Includes general office expenses, computer, bank fees, and credit card merchant fees.
(4)	Includes utilities and miscellaneous other store expenses.
(5)	On January 1, 2025, the Company updated the property count of the same-store pool from 1,071 to 1,829 stores. In the year ended December 31, 2025, 25 properties were sold, reducing the same-store pool to 1,804 stores.

Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three months and year ended December 31, 2025 and 2024 are provided in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.

Investment and Property Management Activity:

The following table (unaudited) outlines the Company's acquisitions and developments that are closed, completed or under agreement (dollars in thousands). 

		Closed/Completed through  December 31, 2025				Closed /Completed or Scheduled to Still Close/Complete in 2026				Total 2026
Wholly-Owned Investment1		Stores		Price		Stores		Price		Stores		Price
Operating Stores2		41		$         483,561		1		$           12,500		1		$           12,500
Buyout of JV Partners' Interest in Operating Stores		28		342,150		—		—		—		—
EXR Investment in Wholly- Owned Stores		69		825,711		1		12,500		1		12,500
Joint Venture Investment1
EXR Investment in JV Acquisition of      Operating Stores		10		24,495		4		2,730		4		2,730
EXR Investment in JV Development and C of O		3		29,031		8		58,091		8		58,091
EXR Investment in Joint Ventures		13		53,526		12		60,821		12		60,821
Total EXR Investment		82		$         879,237		13		$           73,321		13		$            73,321

(1)	The locations of C of O and development stores and joint venture ownership interest details are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
(2)	Includes the buyout of a partner's interest in one existing consolidated joint venture in the year ended December 31, 2025.

The projected developments and acquisitions under agreement described above are subject to customary closing conditions and no assurance can be provided that these developments and acquisitions will be completed on the terms described, or at all.

Property Sales:

During the three months ended December 31, 2025, the Company sold its interest in nine of ten properties held in a joint venture, resulting in a net gain of $45.2 million, and the Company continues to manage these properties. The Company purchased the interest of its partner in the remaining property for $15.8 million. During the quarter the Company also completed the sale of 26 properties previously held for sale. Additionally, the Company listed one property as held for sale.  

Bridge Loans:

During the three months ended December 31, 2025, the Company originated $80.4 million in bridge loans and sold two bridge loans for $16.2 million.  Outstanding balances of the Company's bridge loans were approximately $1.5 billion at the end of the quarter. The Company has an additional $57.7 million in bridge loans that have closed subsequent to quarter end or are under agreement to close in 2026.  Additional details related to the Company's loan activity and balances held are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.

Property Management:

As of December 31, 2025, the Company managed 1,856 stores for third-party owners and 407 stores owned in unconsolidated joint ventures, for a total of 2,263 stores under management.  The Company is the largest self-storage management company in the United States.

Balance Sheet:

During the three months ended December 31, 2025, the Company repurchased 1,089,659 shares of common stock for $140.9 million at an average price of $129.32 per share using its stock repurchase program, and as of December 31, 2025, the Company had authorization to purchase up to $350.5 million under the program. 

During the three months ended December 31, 2025, the Company did not issue any shares on its ATM program, and as of December 31, 2025, the Company had $800.0 million available for issuance.

As of December 31, 2025, the Company's commercial paper program had total capacity of $1.0 billion, with $680.0 million in outstanding issuances.

As of December 31, 2025, the Company's percentage of fixed-rate debt to total debt was 82.1%. Net of the impact of variable rate receivables, the effective fixed-rate debt to total debt was 92.7%.  The weighted average interest rates of the Company's fixed and variable-rate debt were 4.2% and 4.8%, respectively. The combined weighted average interest rate was 4.3% with a weighted average maturity of approximately 4.5 years.  Full details related to the Company's debt schedule are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.

Dividends:

On December 31, 2025, the Company paid a fourth quarter common stock dividend of $1.62 per share to stockholders of record at the close of business on December 15, 2025.

Outlook:

The following table outlines the Company's Core FFO estimates and assumptions for the year ending December 31, 2026.

	Ranges for 2026 Annual Assumptions				Notes
	(February 19, 2026)
	Low		High
Core FFO	$8.05		$8.35
Dilution per share from C of O and value add acquisitions	$0.18		$0.18
Same-store revenue growth	(0.50) %		1.50 %		Same-store pool of 1,871 stores
Same-store expense growth	2.00 %		3.50 %		Same-store pool of 1,871 stores
Same-store NOI growth	(2.25) %		1.25 %		Same-store pool of 1,871 stores
Weighted average one-month SOFR	3.46 %		3.46 %
Net tenant reinsurance income	$289,000,000		$292,000,000
Management fees and other income	$138,000,000		$139,500,000
Interest income	$149,500,000		$151,000,000		Includes interest from bridge loans and dividends from NexPoint preferred investment
General and administrative expenses	$190,500,000		$192,500,000		Includes non-cash compensation
Equity in earnings of real estate ventures	$63,500,000		$64,500,000		Includes dividends from SmartStop preferred investments
Interest expense	$590,000,000		$595,000,000		Excludes non-cash interest expense shown below
Non-cash interest expense related to amortization of discount on unsecured    senior notes, net	$42,000,000		$43,000,000		Amortization of debt mark-to-market; excluded from Core FFO
Income Tax Expense	$47,000,000		$48,000,000		Taxes associated with the Company's taxable REIT subsidiary
Acquisitions	$200,000,000		$200,000,000		Includes wholly-owned acquisitions and the Company's investment in joint ventures
Bridge loans outstanding	$1,475,000,000		$1,475,000,000		Represents the Company's average retained loan balances for the year
Weighted average share count	221,100,000		221,100,000		Assumes redemption of all OP units for common stock

(1)

A reconciliation of net income outlook to same-store net operating income outlook is provided later in this release entitled "Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income."  The reconciliation includes details related to same-store revenue and same-store expense outlooks.  A reconciliation of net income per share outlook to funds from operations per share outlook is provided later in this release entitled "Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share."

FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company's estimates are forward-looking and based on management's view of current and future market conditions. The Company's actual results may differ materially from these estimates.

Supplemental Financial Information:

Supplemental unaudited financial information regarding the Company's performance can be found on the Company's website at www.extraspace.com. Under the "Company Info" navigation menu on the home page, click on "Investor Relations," then under the "Financials" navigation menu click on "Quarterly Results." This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets.

Conference Call:

The Company will host a conference call at 1:00 p.m. Eastern Time on Friday, February 20, 2026, to discuss its financial results. Telephone participants may avoid any delays in joining the conference call by pre-registering for the call using the following link to receive a special dial-in number and PIN: https://events.q4inc.com/analyst/127770346?pwd=vGIh5v5J

A live webcast of the call will also be available on the Company's investor relations website at https://ir.extraspace.com. To listen to the live webcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

A replay of the call will be available for 30 days on the investor relations section of the Company's website beginning at 5:00 p.m. Eastern Time on February 20, 2026. 

Forward-Looking Statements:

Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include statements concerning the benefits of store acquisitions, developments, market conditions, our outlook and estimates for the year and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, the impact of broader economic trends on the storage industry, our plans or intentions relating to acquisitions and developments, and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:

• adverse changes in general economic conditions, the real estate industry and the markets in which we operate;
• potential liability for uninsured losses and environmental contamination;
• our ability to recover losses under our insurance policies;
• the impact of the regulatory environment as well as national, state and local laws and regulations, including, without limitation, those governing real estate investment trusts ("REITs"), tenant reinsurance and other aspects of our business, which could adversely affect our results;
• the effect of competition from new and existing stores or other storage alternatives, including increased or unanticipated competition for our properties, which could cause rents and occupancy rates to decline;
• failure to close pending acquisitions and developments on expected terms, or at all;
• risks associated with acquisitions, dispositions and development of properties, including increased development costs due to additional regulatory requirements related to climate change and other factors;
• reductions in asset valuations and related impairment charges;
• our reliance on information technologies, which are vulnerable to, among other things, attack from computer viruses and malware, hacking, cyberattacks and other unauthorized access or misuse, any of which could adversely affect our business and results;
• impacts from any outbreak of highly infectious or contagious diseases, including reduced demand for self-storage space and ancillary products and services such as tenant reinsurance, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results;
• economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan;
• our lack of sole decision-making authority with respect to our joint venture investments;
• disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow;
• availability of financing and capital, the levels of debt that we maintain and our credit ratings;
• changes in global financial markets, increases in interest rates and the impact of enacted and proposed U.S. tariffs on global economic conditions;
• the effect of recent or future changes to U.S. tax laws; and
• the failure to maintain our REIT status for U.S. federal income tax purposes.

All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

Definition of FFO:

FFO provides relevant and meaningful information about the Company's operating performance that is necessary, along with net income and cash flows, for an understanding of the Company's operating results. The Company believes FFO is a meaningful disclosure as a supplement to net income. Net income assumes that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company's real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of operating stores and impairment write downs of depreciable real estate assets, plus depreciation and amortization related to real estate and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. The Company believes that to further understand the Company's performance, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company's consolidated financial statements. FFO should not be considered a replacement of net income computed in accordance with GAAP.

For informational purposes, the Company also presents Core FFO.  Core FFO excludes revenues and expenses not core to our operations and transaction costs.  It also includes certain costs associated with the Life Storage Merger including non-cash interest related to the amortization of discount on unsecured senior notes and amortization of other intangibles, net of tax benefit.  Although the Company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding revenues and expenses not core to our operations and non-cash interest charges, stockholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Core FFO by the Company should not be considered a replacement of the NAREIT definition of FFO. The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company's performance, as an alternative to net cash flow from operating activities as a measure of liquidity, or as an indicator of the Company's ability to make cash distributions.

Definition of Same-Store:

The Company's same-store pool for the periods presented consists of 1,804 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented.  The Company considers a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to occupancy, rental revenue (growth), operating expenses (growth), net operating income (growth), etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments.  Same-store results should not be used as a basis for future same-store performance or for the performance of the Company's stores as a whole.

About Extra Space Storage Inc.:

Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2025, the Company owned and/or operated 4,281 self-storage stores in 43 states and Washington, D.C. The Company's stores comprise approximately 2.9 million units and approximately 330.4 million square feet of rentable space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.

Extra Space Storage Inc. Condensed Consolidated Balance Sheets (In thousands, except share data)
	December 31, 2025		December 31, 2024
	(Unaudited)
Assets:
Real estate assets, net	$            25,004,350		$          24,587,627
Real estate assets - operating lease right-of-use assets	732,176		689,803
Investments in unconsolidated real estate entities	1,066,783		1,332,338
Investments in debt securities and notes receivable	1,806,526		1,550,950
Cash and cash equivalents	138,920		138,222
Other assets, net	515,291		548,986
Total assets	$            29,264,046		$          28,847,926
Liabilities, Noncontrolling Interests and Equity:
Secured notes payable, net	$              1,079,565		$             1,010,541
Unsecured term loans, net	1,494,659		2,192,507
Unsecured senior notes, net	9,432,427		7,756,968
Revolving lines of credit and commercial paper	1,224,000		1,362,000
Operating lease liabilities	761,106		705,845
Cash distributions in unconsolidated real estate ventures	73,701		75,319
Accounts payable and accrued expenses	357,583		346,519
Other liabilities	516,969		538,865
Total liabilities	14,940,010		13,988,564
Commitments and contingencies
Noncontrolling Interests and Equity:
Extra Space Storage Inc. stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued      or outstanding	—		—
Common stock, $0.01 par value, 500,000,000 shares authorized, 211,155,322 and 211,995,510 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively	2,112		2,120
Additional paid-in capital	14,880,646		14,831,946
Accumulated other comprehensive income	(420)		12,806
Accumulated deficit	(1,449,172)		(899,337)
Total Extra Space Storage Inc. stockholders' equity	13,433,166		13,947,535
Noncontrolling interest represented by Preferred Operating Partnership units	53,827		76,092
Noncontrolling interests in Operating Partnership, net and other noncontrolling interests	837,043		835,735
Total noncontrolling interests and equity	14,324,036		14,859,362
Total liabilities, noncontrolling interests and equity	$            29,264,046		$          28,847,926

 

Consolidated Statement of Operations for the Three Months and Year Ended December 31, 2025 and 2024 (In thousands, except share and per share data) - Unaudited
	For the Three Months Ended December 31,				For the Year Ended December 31,
	2025		2024		2025		2024
Revenues:
Property rental	$         734,225		$      707,234		$      2,895,190		$    2,803,252
Tenant reinsurance	89,251		83,695		352,876		332,795
Management fees and other income	33,991		30,967		129,476		120,855
Total revenues	857,467		821,896		3,377,542		3,256,902
Expenses:
Property operations	231,459		221,111		918,148		831,566
Tenant reinsurance	17,031		18,240		68,873		73,886
General and administrative	51,938		44,025		186,343		167,398
Depreciation and amortization	180,089		196,202		715,177		783,023
Total expenses	480,517		479,578		1,888,541		1,855,873
(Loss) gain on real estate assets held for sale and sold, net	(6,079)		37,714		(76,310)		(25,906)
Impairment of Life Storage trade name	—		—		—		(51,763)
Income from operations	370,871		380,032		1,412,691		1,323,360
Interest expense	(149,436)		(138,479)		(587,613)		(551,354)
Non-cash interest expense related to amortization of discount on unsecured senior notes, net	(12,350)		(11,157)		(47,519)		(43,720)
Interest income	38,649		34,676		163,202		124,422
Income before equity in earnings and dividend income from unconsolidated real estate entities and income tax expense	247,734		265,072		940,761		852,708
Equity in earnings and dividend income from unconsolidated real estate entities	16,931		18,764		68,815		67,272
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate      assets and sale of a joint venture interest	45,167		—		54,521		13,730
Income tax expense	(8,968)		(6,035)		(41,559)		(33,478)
Net income	300,864		277,801		1,022,538		900,232
Net income allocated to Preferred Operating Partnership noncontrolling interests	(723)		(1,189)		(2,894)		(7,262)
Net income allocated to Operating Partnership and other noncontrolling interests	(12,746)		(14,125)		(45,645)		(38,289)
Net income attributable to common stockholders	$         287,395		$      262,487		$         973,999		$       854,681
Earnings per common share
Basic	$               1.36		$            1.24		$               4.59		$             4.03
Diluted	$               1.36		$            1.24		$               4.59		$             4.03
Weighted average number of shares
Basic	211,648,451		211,737,843		211,850,521		211,575,240
Diluted	221,052,557		211,737,843		211,850,521		211,577,680

  

Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three Months and Year Ended December 31, 2025 and 2024 (In thousands) - Unaudited
	For the Three Months Ended December 31,				For the Year Ended December 31,
	2025		2024		2025		2024
Net Income	$         300,864		$         277,801		$     1,022,538		$         900,232
Adjusted to exclude:
Loss (gain) on real estate assets held for sale and sold, net	6,079		(37,714)		76,310		25,906
Equity in earnings and dividend income from unconsolidated real estate entities	(16,931)		(18,764)		(68,815)		(67,272)
Equity in earnings of unconsolidated real estate ventures - gain on sale      of real estate assets and sale of a joint venture interest	(45,167)		—		(54,521)		(13,730)
Interest expense	149,436		138,479		587,613		551,354
Non-cash interest expense related to amortization of discount on unsecured senior notes, net	12,350		11,157		47,519		43,720
Depreciation and amortization	180,089		196,202		715,177		783,023
Impairment of Life Storage trade name	—		—		—		51,763
Income tax expense	8,968		6,035		41,559		33,478
General and administrative	51,938		44,025		186,343		167,398
Management fees, other income and interest income	(72,640)		(65,643)		(292,678)		(245,277)
Net tenant insurance	(72,220)		(65,455)		(284,003)		(258,909)
Non same-store rental revenue	(69,992)		(45,426)		(246,376)		(157,718)
Non same-store operating expense	43,130		34,812		154,131		103,238
Total same-store net operating income	$         475,904		$         475,509		$     1,884,797		$     1,917,206
Same-store rental revenues	664,233		661,808		2,648,814		2,645,534
Same-store operating expenses	188,329		186,299		764,017		728,328
Same-store net operating income	$         475,904		$         475,509		$     1,884,797		$     1,917,206

 

Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share —  for the Year Ending December 31, 2026 - Unaudited
		For the Year Ending December 31, 2026
		Low End		High End
Net income attributable to common stockholders per diluted share		$                         4.40		$                         4.70
Income allocated to noncontrolling interest - Preferred Operating Partnership and Operating Partnership		0.22		0.22
Net income attributable to common stockholders for diluted computations		4.62		4.92
Adjustments:
Real estate depreciation		3.02		3.02
Amortization of intangibles		0.05		0.05
Unconsolidated joint venture real estate depreciation and amortization		0.13		0.13
Funds from operations attributable to common stockholders		7.82		8.12
Adjustments:
Non-cash interest expense related to amortization of discount on unsecured senior notes, net		0.19		0.19
Amortization of other intangibles related to the Life Storage Merger, net of tax benefit		0.04		0.04
Core funds from operations attributable to common stockholders		$                         8.05		$                         8.35

 

Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending December 31, 2026 (In thousands) - Unaudited
	For the Year Ending December 31, 2026
	Low		High
Net Income	$                     1,000,500		$                     1,084,000
Adjusted to exclude:
Equity in earnings of unconsolidated joint ventures	(63,500)		(64,500)
Interest expense	595,000		590,000
Non-cash interest expense related to amortization of discount on      unsecured senior notes, net	43,000		42,000
Depreciation and amortization	713,500		713,500
Income tax expense	48,000		47,000
General and administrative	192,500		190,500
Management fees and other income	(138,000)		(139,500)
Interest income	(149,500)		(151,000)
Net tenant reinsurance income	(289,000)		(292,000)
Non same-store rental revenues	(219,000)		(220,000)
Non same-store operating expenses	144,500		144,000
Total same-store net operating income1	$                     1,878,000		$                     1,944,000
Same-store rental revenues1	2,693,000		2,747,000
Same-store operating expenses1	815,000		803,000
Total same-store net operating income1	$                     1,878,000		$                     1,944,000

(1)	Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2026 same-store pool of 1,871 stores.

 

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SOURCE Extra Space Storage Inc.

FAQ

What was Extra Space Storage's (EXR) net income per share for Q4 2025 and full-year 2025?

Q4 2025 net income per diluted share was $1.36, and full-year 2025 was $4.59. According to the company, full-year net income per diluted share rose 13.9% versus 2024.

How did EXR report FFO and Core FFO per share for the quarter and year ended December 31, 2025?

FFO was $1.99 per diluted share in Q4 2025; Core FFO was $2.08. According to the company, full-year FFO was $7.90 and Core FFO was $8.21 for 2025.

How much did Extra Space Storage spend on acquisitions in 2025 and what assets were bought (EXR)?

Extra Space closed 41 operating stores for $483.6M in 2025. According to the company, it also bought JV partner interests for $342.2M, converting 28 properties to wholly owned.

What was EXR's same-store performance and occupancy as of December 31, 2025?

Same-store revenue rose 0.1% for 2025 while same-store NOI declined (1.7)%. According to the company, ending same-store square foot occupancy was 92.6% as of December 31, 2025.

How large were EXR's share repurchases and what remaining authorization exists as of December 31, 2025?

The company repurchased 1,158,244 shares for $149.5M during 2025. According to the company, as of December 31, 2025 it had authorization to repurchase up to $350.5M under its program.

What is the size of Extra Space Storage's bridge loan business and outstanding balances at year-end 2025 (EXR)?

Outstanding bridge loans were approximately $1.5B at December 31, 2025. According to the company, it originated $409.4M in bridge loans during 2025 and sold $122.1M of loans.