Extra Space Storage Inc. Reports 2025 Second Quarter Results
Extra Space Storage (NYSE:EXR) reported its Q2 2025 results with net income of $1.18 per diluted share, up 34.1% year-over-year. The company achieved Core FFO of $2.05 per diluted share, representing a slight decrease of 0.5% compared to Q2 2024.
Key operational metrics showed same-store revenue remaining flat while same-store NOI decreased by 3.1%. The company maintained strong occupancy at 94.6% as of June 30, 2025. During Q2, EXR acquired one operating store for $12.1M and bought out joint venture partners' interests in 27 properties for $326.4M.
The company continued expanding its management platform, adding 93 stores in Q2, now managing a total of 2,163 stores. EXR maintained its quarterly dividend at $1.62 per share and has kept its annual FFO and same-store guidance unchanged at the midpoints.
Extra Space Storage (NYSE:EXR) ha comunicato i risultati del secondo trimestre 2025 con un utile netto di 1,18 dollari per azione diluita, in aumento del 34,1% rispetto allo stesso periodo dell'anno precedente. La società ha registrato un Core FFO di 2,05 dollari per azione diluita, con una lieve diminuzione dello 0,5% rispetto al secondo trimestre 2024.
I principali indicatori operativi hanno mostrato un fatturato a parità di punti vendita stabile, mentre il NOI a parità di punti vendita è diminuito del 3,1%. L'occupazione è rimasta solida al 94,6% al 30 giugno 2025. Nel secondo trimestre, EXR ha acquisito un negozio operativo per 12,1 milioni di dollari e ha rilevato le quote dei partner in joint venture in 27 proprietà per 326,4 milioni di dollari.
La società ha continuato ad espandere la propria piattaforma di gestione, aggiungendo 93 negozi nel secondo trimestre, portando il totale gestito a 2.163 negozi. EXR ha mantenuto il dividendo trimestrale a 1,62 dollari per azione e ha confermato le previsioni annuali di FFO e di fatturato a parità di punti vendita, mantenendole invariate ai valori medi.
Extra Space Storage (NYSE:EXR) informó sus resultados del segundo trimestre de 2025 con un ingreso neto de 1,18 dólares por acción diluida, un aumento del 34,1% interanual. La compañía logró un Core FFO de 2,05 dólares por acción diluida, lo que representa una ligera disminución del 0,5% en comparación con el segundo trimestre de 2024.
Los principales indicadores operativos mostraron que los ingresos en tiendas comparables se mantuvieron estables, mientras que el NOI en tiendas comparables disminuyó un 3,1%. La empresa mantuvo una ocupación sólida del 94,6% al 30 de junio de 2025. Durante el segundo trimestre, EXR adquirió una tienda operativa por 12,1 millones de dólares y compró las participaciones de socios en joint ventures en 27 propiedades por 326,4 millones de dólares.
La compañía continuó expandiendo su plataforma de gestión, añadiendo 93 tiendas en el segundo trimestre, gestionando ahora un total de 2.163 tiendas. EXR mantuvo su dividendo trimestral en 1,62 dólares por acción y mantuvo sin cambios sus previsiones anuales de FFO y de ingresos en tiendas comparables en los puntos medios.
Extra Space Storage (NYSE:EXR)는 2025년 2분기 실적을 발표하며 희석 주당 순이익 1.18달러를 기록해 전년 동기 대비 34.1% 증가했습니다. 회사는 희석 주당 Core FFO 2.05달러를 달성했으며, 이는 2024년 2분기 대비 0.5% 소폭 감소한 수치입니다.
주요 운영 지표는 동일 점포 매출이 변동 없이 유지되었고, 동일 점포 NOI는 3.1% 감소했습니다. 2025년 6월 30일 기준 점유율은 94.6%로 견고하게 유지되었습니다. 2분기 동안 EXR은 1개의 운영 점포를 1,210만 달러에 인수했으며, 27개 부동산의 합작 투자 파트너 지분을 3억 2,640만 달러에 매입했습니다.
회사는 관리 플랫폼 확장을 계속하며 2분기에 93개 점포를 추가해 총 2,163개 점포를 관리하고 있습니다. EXR은 분기별 배당금을 주당 1.62달러로 유지했으며, 연간 FFO 및 동일 점포 실적 가이던스도 중간값에서 변동 없이 유지했습니다.
Extra Space Storage (NYSE:EXR) a publié ses résultats du deuxième trimestre 2025 avec un bénéfice net de 1,18 $ par action diluée, en hausse de 34,1 % en glissement annuel. La société a réalisé un Core FFO de 2,05 $ par action diluée, soit une légère baisse de 0,5 % par rapport au deuxième trimestre 2024.
Les indicateurs opérationnels clés ont montré que le chiffre d'affaires des magasins comparables est resté stable, tandis que le NOI des magasins comparables a diminué de 3,1 %. La société a maintenu un taux d'occupation solide de 94,6 % au 30 juin 2025. Au cours du deuxième trimestre, EXR a acquis un magasin en exploitation pour 12,1 millions de dollars et a racheté les parts de partenaires en coentreprise dans 27 propriétés pour 326,4 millions de dollars.
L'entreprise a poursuivi l'expansion de sa plateforme de gestion, ajoutant 93 magasins au deuxième trimestre, gérant désormais un total de 2 163 magasins. EXR a maintenu son dividende trimestriel à 1,62 $ par action et a conservé ses prévisions annuelles de FFO et de chiffre d'affaires comparable inchangées aux points médians.
Extra Space Storage (NYSE:EXR) meldete seine Ergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 1,18 USD je verwässerter Aktie, was einem Anstieg von 34,1 % im Jahresvergleich entspricht. Das Unternehmen erzielte einen Core FFO von 2,05 USD je verwässerter Aktie, was einem leichten Rückgang von 0,5 % gegenüber dem zweiten Quartal 2024 entspricht.
Wichtige operative Kennzahlen zeigten, dass die Umsätze in gleichbleibenden Filialen stabil blieben, während das NOI in gleichbleibenden Filialen um 3,1 % zurückging. Die Auslastung blieb mit 94,6 % zum 30. Juni 2025 stark. Im zweiten Quartal erwarb EXR ein betriebenes Geschäft für 12,1 Mio. USD und kaufte die Anteile von Joint-Venture-Partnern an 27 Immobilien für 326,4 Mio. USD zurück.
Das Unternehmen setzte den Ausbau seiner Managementplattform fort und fügte im zweiten Quartal 93 Filialen hinzu, womit es nun insgesamt 2.163 Filialen verwaltet. EXR behielt seine vierteljährliche Dividende von 1,62 USD je Aktie bei und bestätigte seine Jahresprognosen für FFO und Umsatz in gleichbleibenden Filialen unverändert auf den Mittelwerten.
- Net income per share increased 34.1% year-over-year to $1.18
- Strong occupancy rate of 94.6%, up from 94.0% in 2024
- Strategic expansion through $326.4M acquisition of JV partners' interests in 27 properties
- Significant growth in managed portfolio, adding 93 stores in Q2
- Maintained quarterly dividend at $1.62 per share
- Healthy bridge loan portfolio with $1.5B in outstanding balances
- Core FFO decreased 0.5% year-over-year to $2.05 per share
- Same-store NOI declined 3.1% compared to Q2 2024
- Property tax expenses increased significantly, particularly in California, Georgia, Illinois and Texas
- Same-store revenue remained flat year-over-year
- Operating expenses increased 8.6% year-over-year
Insights
Extra Space Storage reported mixed Q2 results with flat revenue, declining NOI, but higher EPS and solid occupancy.
Extra Space Storage delivered Q2 2025 results showing the challenging environment facing the self-storage sector. The company reported
Same-store performance metrics reveal the pressure points: while revenue remained flat year-over-year, NOI declined by
On a positive note, occupancy metrics remain strong, with same-store occupancy reaching
External growth initiatives continue at a steady pace. The company acquired one operating store for
The balance sheet remains solid with a weighted average interest rate of
Highlights for the three months ended June 30, 2025:
- Achieved net income attributable to common stockholders of
$1.18 34.1% increase compared to the same period in the prior year. - Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of
$1.98 $2.05 0.5% ) decrease compared to the same period in the prior year. - Same-store revenue remained flat and same-store net operating income ("NOI") decreased by (3.1)% compared to the same period in the prior year.
- Reported ending same-store occupancy of
94.6% as of June 30, 2025, compared to94.0% as of June 30, 2024. - Acquired one operating store for a total cost of
$12.1 million - Acquired the interest of our joint venture partners in two separate partnerships for
$326.4 million - In conjunction with joint venture partners, acquired one store at completion of construction ("Certificate of Occupancy store" or "C of O store") and completed the development of one store for a total cost of approximately
$24.2 million $16.9 million - Originated
$157.8 million $7.0 million - Added 93 stores (74 stores net) to the Company's third-party management platform. As of June 30, 2025, the Company managed 1,749 stores for third parties and 414 stores in unconsolidated joint ventures, for a total of 2,163 managed stores.
- Paid a quarterly dividend of
$1.62
Highlights for the six months ended June 30, 2025:
- Achieved net income attributable to common stockholders of
$2.45 30.3% increase compared to the same period in the prior year. - Achieved FFO of
$3.91 $4.05 0.7% increase compared to the same period in the prior year. - Increased same-store revenue by
0.1% and same-store NOI decreased by (2.2)% compared to the same period in the prior year. - Acquired 13 operating stores for a total cost of
$165.9 million - Acquired the interest of our joint venture partners in two separate partnerships for
$326.4 million - In conjunction with joint venture partners, acquired two operating stores, completed the development of two stores and acquired one C of O store for a total cost of approximately
$62.5 million $41.4 million - Originated
$211.0 million $34.7 million - Added 206 stores (174 stores net) to the Company's third-party management platform.
Joe Margolis, CEO of the Company, stated: "We delivered solid second quarter results, driven by historically high occupancy, steady existing customer behavior and gradually improving new customer rates. We have been active on the external growth front, with significant third party management and bridge loan activity, as well as the buy out of our partners' interest in two joint ventures. Based on our year to date performance, and our current outlook, we have maintained our annual FFO and same-store guidance at the midpoints, while we continue to monitor gradually improving storage fundamentals."
FFO Per Share:
The following table (unaudited) outlines the Company's FFO and Core FFO for the three and six months ended June 30, 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 June 30, | For the Six Months Ended June 30, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
(per share)1 | (per share)1 | (per share)1 | (per share)1 | ||||||||||||
Net income attributable to common stockholders | $ 249,731 | $ 1.18 | $ 185,872 | $ 0.88 | $ 520,606 | $ 2.45 | $ 398,984 | $ 1.88 | |||||||
Impact of the difference in weighted average number of shares – diluted2 | (0.05) | (0.04) | (0.10) | (0.08) | |||||||||||
Adjustments: | |||||||||||||||
Real estate depreciation | 164,707 | 0.74 | 153,217 | 0.68 | 323,877 | 1.46 | 307,589 | 1.38 | |||||||
Amortization of intangibles | 3,225 | 0.01 | 28,137 | 0.13 | 14,304 | 0.07 | 57,421 | 0.26 | |||||||
(Gain)/Loss on real estate assets held for sale and sold, net | 864 | — | 54,659 | 0.25 | (34,897) | (0.16) | 54,659 | 0.25 | |||||||
Unconsolidated joint venture real estate depreciation and amortization | 7,741 | 0.04 | 8,009 | 0.04 | 16,430 | 0.07 | 15,849 | 0.07 | |||||||
Income allocated to Operating Partnership and other noncontrolling interests | 12,985 | 0.06 | 9,540 | 0.04 | 27,035 | 0.12 | 20,502 | 0.09 | |||||||
FFO | $ 439,253 | $ 1.98 | $ 439,434 | $ 1.98 | $ 867,355 | $ 3.91 | $ 855,004 | $ 3.85 | |||||||
Adjustments: | |||||||||||||||
Non-cash interest expense related to amortization of discount on unsecured senior notes, net | 11,770 | 0.05 | 10,853 | 0.05 | 23,083 | 0.10 | 21,558 | 0.10 | |||||||
Amortization of other intangibles related to the Life Storage Merger, net of tax benefit | 3,917 | 0.02 | 7,438 | 0.03 | 8,448 | 0.04 | 14,878 | 0.07 | |||||||
CORE FFO | $ 454,940 | $ 2.05 | $ 457,725 | $ 2.06 | $ 898,886 | $ 4.05 | $ 891,440 | $ 4.02 | |||||||
Weighted average number of shares – diluted3 | 221,971,567 | 221,857,627 | 221,934,254 | 221,797,751 | |||||||||||
(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 and six months ended June 30, 2025 and 2024 (amounts shown in thousands, except store count data)1:
For the Three Months Ended June 30, | Percent | For the Six Months Ended June 30, | Percent | ||||||||
2025 | 2024 | Change | 2025 | 2024 | Change | ||||||
Same-store property revenues2 | |||||||||||
Net rental income | $ 640,422 | $ 639,094 | 0.2 % | 0.5 % | |||||||
Other income | 25,141 | 26,681 | (5.8) % | 49,095 | 52,914 | (7.2) % | |||||
Total same-store revenues | $ 665,563 | $ 665,775 | 0.0 % | 0.1 % | |||||||
Same-store operating expenses2 | |||||||||||
Payroll and benefits | $ 40,985 | $ 39,968 | 2.5 % | $ 81,213 | $ 81,130 | 0.1 % | |||||
Marketing | 17,146 | 16,946 | 1.2 % | 31,086 | 32,874 | (5.4) % | |||||
Office expense3 | 20,553 | 20,250 | 1.5 % | 40,859 | 41,126 | (0.6) % | |||||
Property operating expense4 | 15,792 | 15,335 | 3.0 % | 35,341 | 34,480 | 2.5 % | |||||
Repairs and maintenance | 13,047 | 12,426 | 5.0 % | 28,243 | 27,008 | 4.6 % | |||||
Property taxes | 75,881 | 63,661 | 19.2 % | 151,350 | 128,849 | 17.5 % | |||||
Insurance | 7,968 | 7,667 | 3.9 % | 15,732 | 15,514 | 1.4 % | |||||
Total same-store operating expenses | $ 191,372 | $ 176,253 | 8.6 % | $ 383,824 | $ 360,981 | 6.3 % | |||||
Same-store net operating income2 | $ 474,191 | $ 489,522 | (3.1) % | $ 941,555 | $ 962,432 | (2.2) % | |||||
Same-store square foot occupancy as of quarter end | 94.6 % | 94.0 % | 94.6 % | 94.0 % | |||||||
Average same-store square foot occupancy | 94.2 % | 93.6 % | 93.8 % | 92.8 % | |||||||
Properties included in same-store5 | 1,829 | 1,829 | 1,829 | 1,829 | |||||||
(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. |
For the three and six months ended June 30, 2025 property taxes increased over the same period of the prior year as a result of increases primarily in
Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three and six months ended June 30, 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 | Closed/Completed | Scheduled to Still Close/Complete | Total 2025 | To Close/Complete | ||||||||||||||||
Wholly-Owned Investment1 | Stores | Price | Stores | Price | Stores | Price | Stores | Price | Stores | Price | ||||||||||
Operating Stores2 | 13 | $ 165,908 | — | $ — | — | $ — | 13 | — | $ — | |||||||||||
C of O and Development Stores1 | — | — | — | — | — | — | — | — | — | — | ||||||||||
Buyout of JV Partners' Interest in Operating Stores | 27 | 326,400 | — | — | — | — | 27 | 326,400 | — | — | ||||||||||
EXR Investment in Wholly-Owned Stores | 40 | 492,308 | — | — | — | — | 40 | 492,308 | — | — | ||||||||||
Joint Venture Investment1 | ||||||||||||||||||||
EXR Investment in JV Acquisition of Operating Stores | 2 | 12,385 | — | — | — | — | 2 | 12,385 | — | — | ||||||||||
EXR Investment in JV Development and C of O | 3 | 29,031 | — | — | 2 | 30,114 | 5 | 59,145 | 2 | 26,634 | ||||||||||
EXR Investment in Joint Ventures | 5 | 41,416 | — | — | 2 | 30,114 | 7 | 71,530 | 2 | 26,634 | ||||||||||
Total EXR Investment | 45 | $ 533,724 | — | $ — | 2 | 47 | 2 | $ 26,634 | ||||||||||||
(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 six months ended June 30, 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.
Other Investment Activity:
During the three months ended June 30, 2025, the Company acquired joint venture partners' interest in two separate partnerships for
In April 2025, SmartStop Self Storage REIT, Inc. completed an initial public offering and the Company was repaid its
Property Sales:
During the three months ended June 30, 2025, the Company sold one operating property resulting in a net loss of
Bridge Loans:
During the three months ended June 30, 2025, the Company originated
Property Management:
As of June 30, 2025, the Company managed 1,749 stores for third-party owners and 414 stores owned in unconsolidated joint ventures, for a total of 2,163 stores under management. The Company is the largest self-storage management company in
Balance Sheet:
During the three months ended June 30, 2025, the Company did not issue any shares on its ATM program, and as of June 30, 2025, the Company had
During the three months ended June 30, 2025, the Company repurchased 68,585 shares of common stock for
As of June 30, 2025, the Company's commercial paper program had total capacity of
As of June 30, 2025, the Company's percentage of fixed-rate debt to total debt was
Dividends:
On June 30, 2025, the Company paid a second quarter common stock dividend of
Outlook:
The following table outlines the Company's current and prior quarter Core FFO estimates and assumptions for the year ending December 31, 20251.
Ranges for 2025 Annual Assumptions | Ranges for 2025 Annual Assumptions | Notes | |||||||
(July 30, 2025) | (April 29, 2025) | ||||||||
Low | High | Low | High | ||||||
Core FFO | |||||||||
Dilution per share from C of O and value add acquisitions | |||||||||
Same-store revenue growth | (0.50) % | 1.00 % | (0.75) % | 1.25 % | Same-store pool of 1,829 stores | ||||
Same-store expense growth | 4.00 % | 5.00 % | 3.75 % | 5.25 % | Same-store pool of 1,829 stores | ||||
Same-store NOI growth | (2.75) % | 0.00 % | (3.00) % | 0.25 % | Same-store pool of 1,829 stores | ||||
Weighted average one-month SOFR | 4.25 % | 4.25 % | 4.05 % | 4.05 % | |||||
Net tenant reinsurance income | |||||||||
Management fees and other income | |||||||||
Interest income | Includes interest from bridge loans and dividends from NexPoint preferred investment | ||||||||
General and administrative expenses | Includes non-cash compensation | ||||||||
Average monthly cash balance | |||||||||
Equity in earnings of real estate ventures | 1) Includes the impact of the repayment of SmartStop preferred investment. 2) Adjusted for JV buyouts with NOI now included in non-same store properties | ||||||||
Interest expense | Excludes non-cash interest expense shown below. | ||||||||
Non-cash interest expense related to amortization of discount on unsecured senior notes, net | Amortization of debt mark-to-market; excluded from Core FFO | ||||||||
Income Tax Expense | Taxes associated with the Company's taxable REIT subsidiary | ||||||||
Acquisitions | Includes wholly-owned acquisitions and the Company's investment in joint ventures | ||||||||
Bridge loans outstanding | Represents the Company's average retained loan balances for the year | ||||||||
Weighted average share count | 222,200,000 | 222,200,000 | 222,200,000 | 222,200,000 | 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 Thursday, July 31, 2025, 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://emportal.ink/3DPDVBn
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 July 31, 2025.
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 and increases in interest rates;
- 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
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 1,829 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
About Extra Space Storage Inc.:
Extra Space Storage Inc., headquartered in
Extra Space Storage Inc. | |||
June 30, 2025 | December 31, 2024 | ||
(Unaudited) | |||
Assets: | |||
Real estate assets, net | $ 25,099,810 | $ 24,587,627 | |
Real estate assets - operating lease right-of-use assets | 720,357 | 689,803 | |
Investments in unconsolidated real estate entities | 1,088,983 | 1,332,338 | |
Investments in debt securities and notes receivable | 1,849,068 | 1,550,950 | |
Cash and cash equivalents | 125,045 | 138,222 | |
Other assets, net | 484,748 | 548,986 | |
Total assets | $ 29,368,011 | $ 28,847,926 | |
Liabilities, Noncontrolling Interests and Equity: | |||
Secured notes payable, net | $ 1,126,237 | $ 1,010,541 | |
Unsecured term loans, net | 1,948,801 | 2,192,507 | |
Unsecured senior notes, net | 8,618,943 | 7,756,968 | |
Revolving lines of credit and commercial paper | 1,211,000 | 1,362,000 | |
Operating lease liabilities | 742,847 | 705,845 | |
Cash distributions in unconsolidated real estate ventures | 76,827 | 75,319 | |
Accounts payable and accrued expenses | 438,062 | 346,519 | |
Other liabilities | 528,205 | 538,865 | |
Total liabilities | 14,690,922 | 13,988,564 | |
Commitments and contingencies | |||
Noncontrolling Interests and Equity: | |||
Extra Space Storage Inc. stockholders' equity: | |||
Preferred stock, | — | — | |
Common stock, | 2,123 | 2,120 | |
Additional paid-in capital | 14,860,946 | 14,831,946 | |
Accumulated other comprehensive income | 3,203 | 12,806 | |
Accumulated deficit | (1,075,430) | (899,337) | |
Total Extra Space Storage Inc. stockholders' equity | 13,790,842 | 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 | 832,420 | 835,735 | |
Total noncontrolling interests and equity | 14,677,089 | 14,859,362 | |
Total liabilities, noncontrolling interests and equity | $ 29,368,011 | $ 28,847,926 | |
Consolidated Statement of Operations for the Three and Six Months Ended June 30, 2025 and 2024 | |||||||
For the Three Months Ended | For the Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenues: | |||||||
Property rental | $ 721,004 | $ 697,100 | $ 1,425,384 | $ 1,385,144 | |||
Tenant reinsurance | 88,572 | 83,705 | 173,284 | 165,052 | |||
Management fees and other income | 32,042 | 29,858 | 62,947 | 60,006 | |||
Total revenues | 841,618 | 810,663 | 1,661,615 | 1,610,202 | |||
Expenses: | |||||||
Property operations | 227,621 | 196,902 | 451,203 | 401,420 | |||
Tenant reinsurance | 16,945 | 19,631 | 34,061 | 38,136 | |||
General and administrative | 44,952 | 39,901 | 90,926 | 83,623 | |||
Depreciation and amortization | 177,266 | 194,809 | 357,622 | 391,775 | |||
Total expenses | 466,784 | 451,243 | 933,812 | 914,954 | |||
Gain (loss) on real estate assets held for sale and sold, net | (864) | (54,659) | 34,897 | (54,659) | |||
Income from operations | 373,970 | 304,761 | 762,700 | 640,589 | |||
Interest expense | (146,128) | (137,133) | (288,527) | (270,020) | |||
Non-cash interest expense related to amortization of discount on unsecured senior notes, net | (11,770) | (10,853) | (23,083) | (21,558) | |||
Interest income | 41,998 | 31,226 | 80,965 | 54,799 | |||
Income before equity in earnings and dividend income from unconsolidated real estate entities and income tax expense | 258,070 | 188,001 | 532,055 | 403,810 | |||
Equity in earnings and dividend income from unconsolidated real estate entities | 16,284 | 17,255 | 36,215 | 32,262 | |||
Income tax expense | (11,638) | (9,844) | (20,629) | (16,586) | |||
Net income | 262,716 | 195,412 | 547,641 | 419,486 | |||
Net income allocated to Preferred Operating Partnership noncontrolling interests | (723) | (1,933) | (1,447) | (4,141) | |||
Net income allocated to Operating Partnership and other noncontrolling interests | (12,262) | (7,607) | (25,588) | (16,361) | |||
Net income attributable to common stockholders | $ 249,731 | $ 185,872 | $ 520,606 | $ 398,984 | |||
Earnings per common share | |||||||
Basic | $ 1.18 | $ 0.88 | $ 2.45 | $ 1.88 | |||
Diluted | $ 1.18 | $ 0.88 | $ 2.45 | $ 1.88 | |||
Weighted average number of shares | |||||||
Basic | 211,940,903 | 211,584,155 | 211,895,586 | 211,433,877 | |||
Diluted | 211,940,903 | 211,587,105 | 211,895,586 | 220,114,016 | |||
Cash dividends paid per common share | $ 1.62 | $ 1.62 | $ 3.24 | $ 3.24 | |||
Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three and Six Months Ended | |||||||
For the Three Months Ended | For the Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net Income | $ 262,716 | $ 195,412 | $ 547,641 | $ 419,486 | |||
Adjusted to exclude: | |||||||
(Gain) loss on real estate assets held for sale and sold, net | 864 | 54,659 | (34,897) | 54,659 | |||
Equity in earnings and dividend income from unconsolidated real estate entities | (16,284) | (17,255) | (36,215) | (32,262) | |||
Interest expense | 146,128 | 137,133 | 288,527 | 270,020 | |||
Non-cash interest expense related to amortization of discount on unsecured senior notes, net | 11,770 | 10,853 | 23,083 | 21,558 | |||
Depreciation and amortization | 177,266 | 194,809 | 357,622 | 391,775 | |||
Income tax expense | 11,638 | 9,844 | 20,629 | 16,586 | |||
General and administrative | 44,952 | 39,901 | 90,926 | 83,623 | |||
Management fees, other income and interest income | (74,040) | (61,084) | (143,912) | (114,805) | |||
Net tenant insurance | (71,627) | (64,074) | (139,223) | (126,916) | |||
Non same-store rental revenue | (55,441) | (31,325) | (100,005) | (61,731) | |||
Non same-store operating expense | 36,249 | 20,649 | 67,379 | 40,439 | |||
Total same-store net operating income | $ 474,191 | $ 489,522 | $ 941,555 | $ 962,432 | |||
Same-store rental revenues | 665,563 | 665,775 | 1,325,379 | 1,323,413 | |||
Same-store operating expenses | 191,372 | 176,253 | 383,824 | 360,981 | |||
Same-store net operating income | $ 474,191 | $ 489,522 | $ 941,555 | $ 962,432 | |||
Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per | ||||
For the Year Ending December 31, 2025 | ||||
Low End | High End | |||
Net income attributable to common stockholders per diluted share | $ 4.49 | $ 4.69 | ||
Income allocated to noncontrolling interest - Preferred Operating Partnership and Operating Partnership | 0.24 | 0.24 | ||
Net income attributable to common stockholders for diluted computations | 4.73 | 4.93 | ||
Adjustments: | ||||
Real estate depreciation | 2.85 | 2.85 | ||
Amortization of intangibles | 0.20 | 0.20 | ||
Unconsolidated joint venture real estate depreciation and amortization | 0.15 | 0.15 | ||
Gain on real estate transactions | (0.16) | (0.16) | ||
Funds from operations attributable to common stockholders | 7.77 | 7.97 | ||
Adjustments: | ||||
Non-cash interest expense related to amortization of discount on unsecured senior notes, net | 0.21 | 0.21 | ||
Amortization of other intangibles related to the Life Storage Merger, net of tax benefit | 0.07 | 0.07 | ||
Core funds from operations attributable to common stockholders | $ 8.05 | $ 8.25 | ||
Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending December 31, 2025 (In thousands) - Unaudited | |||
For the Year Ending December 31, 2025 | |||
Low | High | ||
Net Income | $ 1,030,900 | $ 1,093,400 | |
Adjusted to exclude: | |||
Equity in earnings of unconsolidated joint ventures | (70,500) | (71,500) | |
Interest expense | 586,000 | 582,000 | |
Non-cash interest expense related to amortization of discount on unsecured senior notes, net | 47,000 | 46,000 | |
Depreciation and amortization | 714,600 | 714,600 | |
Income tax expense | 42,000 | 41,000 | |
General and administrative | 188,000 | 186,000 | |
Management fees and other income | (125,500) | (126,500) | |
Interest income | (159,500) | (161,000) | |
Net tenant reinsurance income | (277,000) | (280,000) | |
Non same-store rental revenues | (225,000) | (225,000) | |
Non same-store operating expenses | 129,000 | 129,000 | |
Total same-store net operating income1 | $ 1,880,000 | $ 1,928,000 | |
Same-store rental revenues1 | 2,652,000 | 2,692,000 | |
Same-store operating expenses1 | 772,000 | 764,000 | |
Total same-store net operating income1 | $ 1,880,000 | $ 1,928,000 | |
(1) | Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2025 same-store pool of 1,829 stores. |
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SOURCE Extra Space Storage Inc.
FAQ
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