Extra Space Storage Inc. Reports 2025 Third Quarter Results
Extra Space Storage (NYSE: EXR) reported third-quarter 2025 results for the period ended September 30, 2025, with net income $0.78 per diluted share (a 14.3% decrease year-over-year) and FFO $2.01 per diluted share. Core FFO was $2.08 per diluted share, up 0.5% year-over-year. Same-store revenue fell (0.2)% and same-store NOI declined (2.5)%; ending same-store occupancy was 93.7%. Q3 included a $105.1 million loss on assets held for sale and sold. Company added 95 stores (62 net) to third-party management; total managed stores = 2,222. YTD acquisitions totaled 14 stores for $178.7M. Balance sheet actions included an $800M 4.95% note offering and an amended credit facility raising revolver to $3.0B.
Extra Space Storage (NYSE: EXR) ha riportato i risultati del terzo trimestre 2025 per il periodo terminato il 30 settembre 2025, con un utile netto di $0,78 per azione diluita (in diminuzione del 14,3% rispetto all'anno precedente) e FFO di $2,01 per azione diluita. Core FFO è stato di $2,08 per azione diluita, in crescita dello 0,5% rispetto all'anno precedente. I ricavi nello stesso negozio sono diminuiti dello 0,2% e l'NOI a parità di negozi è calato del 2,5%; l'occupazione a parità di negozi al termine del periodo era 93,7%. Il terzo trimestre ha incluso una perdita di $105,1 milioni su attività detenute per la vendita e vendute. L'azienda ha aggiunto 95 negozi (62 netti) alla gestione di terze parti; il totale dei negozi gestiti è di 2.222. Le acquisizioni cumulate nell'anno fino ad oggi ammontano a 14 negozi per $178,7 milioni. Le azioni di bilancio hanno incluso un'emissione di obbligazioni $800 milioni a 4,95% e una modifica della linea di credito che ha portato il revolver a $3,0 miliardi.
Extra Space Storage (NYSE: EXR) informó los resultados del tercer trimestre de 2025 para el periodo que terminó el 30 de septiembre de 2025, con utilidad neta de $0,78 por acción diluida (un descenso del 14,3 % interanual) y FFO de $2,01 por acción diluida. Core FFO fue de $2,08 por acción diluida, un aumento del 0,5 % interanual. Los ingresos de tiendas comparables cayeron un 0,2 % y el NOI de tiendas comparables disminuyó un 2,5 %; la ocupación de tiendas comparables al cierre fue del 93,7 %. El tercer trimestre incluyó una pérdida de $105,1 millones en activos mantenidos para la venta y vendidos. La compañía añadió 95 tiendas (62 netas) a la gestión de terceros; el total de tiendas gestionadas es 2.222. Las adquisiciones YTD totalizaron 14 tiendas por $178,7 millones. Las acciones de balance incluyeron una emisión de notas de $800 millones a 4,95 % y una línea de crédito modificada elevando el revolver a $3,0 mil millones.
Extra Space Storage (NYSE: EXR)는 2025년 9월 30일 종료된 기간의 2025년 3분기 실적을 발표했으며 희석 주당 순이익 $0.78 (전년 대비 -14.3%) 및 희석 주당 FFO $2.01를 기록했습니다. Core FFO는 $2.08로 전년 대비 0.5% 증가했습니다. 동기간 동일 매장 매출은 (0.2)% 감소했고 동기간 동일 매장 NOI도 (2.5)% 감소했습니다; 종료 시점의 동기간 매장 점유율은 93.7%였습니다. 3분기에는 매각 대상 자산에 대한 손실 $105.1백만이 포함되었습니다. 회사는 제3자 관리로 95개 매장을 추가했고 총 관리 매장은 2,222개입니다. 연간 누적 인수는 14개 매장, $178.7백만에 달했습니다. 대차대조표 조치로 $800백만, 4.95%의 채권 발행과 신용 한도 조정으로 레볼버를 $3.0B로 증가시켰습니다.
Extra Space Storage (NYSE: EXR) a publié les résultats du troisième trimestre 2025 pour la période se terminant le 30 septembre 2025, avec un bénéfice net de 0,78 $ par action diluée (une baisse de 14,3 % en glissement annuel) et un FFO de 2,01 $ par action diluée. Core FFO était de 2,08 $ par action diluée, en hausse de 0,5 % sur un an. Le chiffre d'affaires des magasins comparables a diminué de 0,2 % et le NOI des magasins comparables a reculé de 2,5 %; le taux d'occupation des magasins comparables à la fin de la période était de 93,7 %. Le T3 a inclus une perte de 105,1 millions de dollars sur des actifs détenus en vue de la vente et cédés. L'entreprise a ajouté 95 magasins (62 nets) à la gestion par des tiers; le total des magasins gérés est de 2 222. Les acquisitions YTD s'élèvent à 14 magasins pour 178,7 millions de dollars. Les actions de bilan comprenaient une émission d'obligations 800 millions de dollars à 4,95 % et une ligne de crédit modifiée portant le revolver à 3,0 milliards de dollars.
Extra Space Storage (NYSE: EXR) meldete die Ergebnisse des dritten Quartals 2025 für den Zeitraum bis zum 30. September 2025, mit einem Nettogewinn von $0,78 pro verwässerter Aktie (Rückgang um 14,3% im Jahresvergleich) und FFO von $2,01 pro verwässerter Aktie. Core FFO betrug $2,08 pro verwässerter Aktie, ein Anstieg von 0,5% im Jahresvergleich. Die Umsatzentwicklung bei Same-Store-Locations ging um (0,2)% zurück und der Same-Store-NOI sank um (2,5)%; die End-Belegung der Same-Store-Locations lag bei 93,7%. Im Q3 war ein Verlust von $105,1 Millionen auf Vermögenswerte, die zum Verkauf gehalten wurden und verkauft wurden, enthalten. Das Unternehmen fügte 95 Stores (62 netto) zur Verwaltung durch Dritte hinzu; insgesamt verwaltete Stores = 2.222. YTD-Akquisitionen beliefen sich auf 14 Stores für $178,7 Millionen. Bilanzmaßnahmen umfassen eine Ausgabe von Anleihen in Höhe von $800 Millionen zu 4,95% und eine geänderte Kreditfazilität, die den Revolver auf $3,0 Mrd. erhöhte.
Extra Space Storage (NYSE: EXR) أبلغت عن نتائج الربع الثالث من 2025 للفترة المنتهية في 30 سبتمبر 2025، مع صافي دخل قدره 0.78 دولار للسهم المخفف (انخفاض 14.3% على أساس سنوي) وFFO قدره 2.01 دولار للسهم المخفف. Core FFO كان 2.08 دولاراً للسهم المخفف، بارتفاع 0.5% على أساس سنوي. إيرادات المتاجر المماثلة انخفضت بنسبة (0.2)% وتراجع NOI المتجر المماثل بنسبة (2.5)%؛ ونسبة إشغال المتاجر المماثلة عند الإغلاق كانت 93.7%. تضمن الربع الثالث خسارة قدرها 105.1 مليون دولار على أصول مطروحة للبيع ومباعة. أضافت الشركة 95 متجرًا (62 صافيًا) للإدارة من قبل أطراف ثالثة؛ الإجمالي للمحلات المُدارة هو 2,222. بلغت عمليات الاستحواذ حتى تاريخه للسنة المالية حتى الآن 14 متجرًا بقيمة 178.7 مليون دولار. شملت إجراءات الميزانية إصدار سندات بقيمة $800 مليون بسعر 4.95% وتعديل تسهيل ائتماني رفع الحد الائتماني إلى $3.0 مليار.
Extra Space Storage (NYSE: EXR) 公布了截至 2025 年 9 月 30 日的 2025 年第三季度业绩，摊薄后每股净利润为 $0.78（同比下降 14.3%），以及 摊薄后每股 FFO 为 $2.01。核心 FFO为 $2.08，同比增长 0.5%。同店销售收入下降 0.2%，同店 NOI 下降 2.5%；期末同店入住率为 93.7%。第三季度包括对待售资产的损失 $105.1 百万美元。公司新增 95 家门店（净增 62 家）交由第三方管理；管理门店总数为 2,222。年度至今的并购为 14 家门店，价值 1.787 亿美元。资产负债表方面包括发行 $8 亿，4.95% 的票据，以及经修订的信贷便利，将循环额度提高到 $30 亿。
- Core FFO +0.5% YoY for Q3
- FFO $2.01 per diluted share in Q3 2025
- Total managed stores 2,222 as of Sept 30, 2025
- Revolving credit facility increased to $3.0B
- Net income per diluted share (Q3) down 14.3% YoY to $0.78
- Same-store NOI (Q3) down 2.5% YoY
- Same-store revenue (Q3) down 0.2% YoY
- Loss on properties held for sale and sold of $105.1M in Q3
Insights
Mixed operational results: modest Core FFO growth offset by same-store NOI decline and asset-sale losses; balance sheet moves increase flexibility.
Extra Space Storage reported
The quarter included a material non-operating net loss of
Watchables over the next 1–12 months: follow reported Core FFO trends versus the updated annual guidance referenced, monitor same-store NOI trajectory and occupancy stability, track realized gains/losses from the marketed properties and bridge loan balances (outstanding near
Highlights for the three months ended September 30, 2025:
- Achieved net income attributable to common stockholders of
$0.78 14.3% ) decrease compared to the same period in the prior year, including a loss of$105.1 million - Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of
$2.01 $2.08 0.5% increase compared to the same period in the prior year. - Same-store revenue decreased by (0.2)% and same-store net operating income ("NOI") decreased by (2.5)% compared to the same period in the prior year.
- Reported ending same-store occupancy of
93.7% as of September 30, 2025, compared to93.6% as of September 30, 2024. - Acquired one operating store for a total cost of
$12.8 million - In conjunction with joint venture partners, acquired one operating store for a total cost of approximately
$14.2 million $1.4 million - Originated
$122.7 million $71.1 million - Added 95 stores (62 stores net) to the Company's third-party management platform. As of September 30, 2025, the Company managed 1,811 stores for third parties and 411 stores in unconsolidated joint ventures, for a total of 2,222 managed stores.
- Paid a quarterly dividend of
$1.62
Highlights for the nine months ended September 30, 2025:
- Achieved net income attributable to common stockholders of
$3.23 15.8% increase compared to the same period in the prior year, including a net loss of$70.2 million - Achieved FFO of
$5.91 $6.13 0.7% increase compared to the same period in the prior year. - Same-store revenue was flat and same-store NOI decreased by (2.3)% compared to the same period in the prior year.
- Acquired 14 operating stores for a total cost of
$178.7 million - Acquired the interest of our joint venture partners in two separate partnerships for
$326.4 million - In conjunction with joint venture partners, acquired three 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
$76.7 million $42.8 million - Originated
$329.0 million $105.8 million - Added 301 stores (236 stores net) to the Company's third-party management platform.
Joe Margolis, CEO of the Company, stated: "We delivered solid third quarter results, while navigating a challenging operational landscape, allowing us to increase our annual Core FFO guidance. Although same-store revenue remained relatively flat, we are encouraged by the gradual improvement in market fundamentals. This improvement has resulted in accelerating new customer rate growth. Our external growth initiatives remained active during the quarter, highlighted by significant additions to our third-party management platform, substantial bridge loan originations, and strategic property acquisitions."
FFO Per Share:
The following table (unaudited) outlines the Company's FFO and Core FFO for the three and nine months ended September 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 September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||
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|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
|
|
|
(per share)1 |
|
|
|
(per share)1 |
|
|
|
(per share)1 |
|
|
|
(per share)1 |
|
Net income attributable to |
$ 165,998 |
|
$ 0.78 |
|
$ 193,210 |
|
$ 0.91 |
|
$ 686,604 |
|
$ 3.23 |
|
$ 592,194 |
|
$ 2.79 |
|
Impact of the difference in weighted average number of shares – diluted2 |
|
|
(0.02) |
|
|
|
(0.04) |
|
|
|
(0.15) |
|
|
|
(0.12) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation |
164,834 |
|
0.74 |
|
154,573 |
|
0.69 |
|
488,711 |
|
2.20 |
|
462,162 |
|
2.07 |
|
Amortization of intangibles |
3,037 |
|
0.01 |
|
28,160 |
|
0.13 |
|
17,341 |
|
0.08 |
|
85,581 |
|
0.39 |
|
Loss on real estate assets held for sale and sold, net |
105,128 |
|
0.47 |
|
8,961 |
|
0.04 |
|
70,231 |
|
0.32 |
|
63,620 |
|
0.29 |
|
Unconsolidated joint venture real estate depreciation and amortization |
7,466 |
|
0.03 |
|
7,922 |
|
0.04 |
|
23,896 |
|
0.11 |
|
23,771 |
|
0.11 |
|
Unconsolidated joint venture gain on sale of real estate assets and sale of a joint venture interest |
(9,354) |
|
(0.04) |
|
(13,730) |
|
(0.06) |
|
(9,354) |
|
(0.04) |
|
(13,730) |
|
(0.06) |
|
Income allocated to Operating Partnership and other noncontrolling interests |
8,035 |
|
0.04 |
|
9,735 |
|
0.04 |
|
35,070 |
|
0.16 |
|
30,237 |
|
0.14 |
|
FFO |
$ 445,144 |
|
$ 2.01 |
|
$ 388,831 |
|
$ 1.75 |
|
|
|
$ 5.91 |
|
|
|
$ 5.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash interest expense related to amortization of discount on unsecured senior notes, net |
12,086 |
|
0.05 |
|
11,005 |
|
0.06 |
|
35,169 |
|
0.16 |
|
32,563 |
|
0.15 |
|
Amortization of other intangibles related to the Life Storage Merger, net of tax benefit |
3,918 |
|
0.02 |
|
6,320 |
|
0.03 |
|
12,366 |
|
0.06 |
|
21,198 |
|
0.10 |
|
Impairment of Life Storage trade name |
— |
|
— |
|
51,763 |
|
0.23 |
|
— |
|
— |
|
51,763 |
|
0.23 |
|
CORE FFO |
$ 461,148 |
|
$ 2.08 |
|
$ 457,919 |
|
$ 2.07 |
|
|
|
$ 6.13 |
|
|
|
$ 6.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares – diluted3 |
221,968,328 |
|
|
|
221,684,684 |
|
|
|
221,945,990 |
|
|
|
221,750,047 |
|
|
|
|
|
|
(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 nine months ended September 30, 2025 and 2024 (amounts shown in thousands, except store count data)1:
|
|
For the Three Months |
|
Percent |
|
For the Nine Months |
|
Percent |
||||
|
|
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
|
Same-store property revenues2 |
|
|
|
|
|
|
|
|
|
|
|
|
Net rental income |
$ 647,739 |
|
$ 647,886 |
|
0.0 % |
|
|
|
|
|
0.3 % |
|
Other income |
26,243 |
|
27,465 |
|
(4.4) % |
|
75,338 |
|
80,379 |
|
(6.3) % |
|
Total same-store revenues |
$ 673,982 |
|
$ 675,351 |
|
(0.2) % |
|
|
|
|
|
0.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store operating expenses2 |
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and benefits |
$ 41,921 |
|
$ 38,859 |
|
7.9 % |
|
$ 123,134 |
|
$ 119,989 |
|
2.6 % |
|
Marketing |
17,818 |
|
13,967 |
|
27.6 % |
|
48,904 |
|
46,841 |
|
4.4 % |
|
Office expense3 |
20,251 |
|
20,158 |
|
0.5 % |
|
61,110 |
|
61,284 |
|
(0.3) % |
|
Property operating expense4 |
18,893 |
|
18,387 |
|
2.8 % |
|
54,234 |
|
52,867 |
|
2.6 % |
|
Repairs and maintenance |
13,759 |
|
12,642 |
|
8.8 % |
|
42,002 |
|
39,650 |
|
5.9 % |
|
Property taxes |
75,364 |
|
74,210 |
|
1.6 % |
|
226,715 |
|
203,060 |
|
11.6 % |
|
Insurance |
8,731 |
|
7,741 |
|
12.8 % |
|
24,463 |
|
23,255 |
|
5.2 % |
|
Total same-store operating expenses |
$ 196,737 |
|
$ 185,964 |
|
5.8 % |
|
$ 580,562 |
|
$ 546,946 |
|
6.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store net operating income2 |
$ 477,245 |
|
$ 489,387 |
|
(2.5) % |
|
|
|
|
|
(2.3) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store square foot occupancy as of quarter end |
93.7 % |
|
93.6 % |
|
|
|
93.7 % |
|
93.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average same-store square foot occupancy |
94.1 % |
|
93.8 % |
|
|
|
93.9 % |
|
93.2 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three and nine months ended September 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 |
|
Total 2025 |
|
To Close/Complete |
||||||||||
|
Wholly-Owned Investment 1 |
|
Stores |
|
Price |
|
Stores |
|
Price |
|
Stores |
|
Price |
|
Stores |
|
Price |
|
Stores |
|
Price |
|
Operating Stores2 |
|
14 |
|
$ 178,733 |
|
11 |
|
$ 118,250 |
|
14 |
|
$ 143,528 |
|
39 |
|
|
|
— |
|
$ — |
|
C of O and Development |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Buyout of JV Partners' Interest |
|
27 |
|
326,400 |
|
— |
|
— |
|
— |
|
— |
|
27 |
|
326,400 |
|
— |
|
— |
|
EXR Investment in Wholly- |
|
41 |
|
505,133 |
|
11 |
|
118,250 |
|
14 |
|
143,528 |
|
66 |
|
766,911 |
|
— |
|
— |
|
|
|
|
|
|
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|
|
|
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Joint Venture Investment 1 |
|
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|
|
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|
|
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|
EXR Investment in JV |
|
3 |
|
13,805 |
|
2 |
|
2,455 |
|
4 |
|
7,326 |
|
9 |
|
23,586 |
|
— |
|
— |
|
EXR Investment in JV |
|
3 |
|
29,031 |
|
— |
|
— |
|
1 |
|
14,378 |
|
4 |
|
43,409 |
|
3 |
|
48,564 |
|
EXR Investment in Joint |
|
6 |
|
42,836 |
|
2 |
|
2,455 |
|
5 |
|
21,704 |
|
13 |
|
66,995 |
|
3 |
|
48,564 |
|
Total EXR Investment |
|
47 |
|
$ 547,969 |
|
13 |
|
$ 120,705 |
|
19 |
|
$ 165,232 |
|
79 |
|
|
|
3 |
|
$ 48,564 |
|
|
|
|
(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 nine months ended September 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.
Property Sales:
During the three months ended September 30, 2025, the Company sold two operating properties into a joint venture and marketed an additional 25 properties for sale. The properties held for sale were adjusted to fair value less selling costs. The properties held for sale and sold resulted in a net loss of
In July 2025, the Company sold its interest in a joint venture, which held six properties, resulting in a net gain of
Bridge Loans:
During the three months ended September 30, 2025, the Company originated
Property Management:
As of September 30, 2025, the Company managed 1,811 stores for third-party owners and 411 stores owned in unconsolidated joint ventures, for a total of 2,222 stores under management. The Company is the largest self-storage management company in
Balance Sheet:
During the three months ended September 30, 2025, the Company did not issue any shares on its ATM program, and as of September 30, 2025, the Company had
In August 2025, the Company completed a public bond offering issuing
As of September 30, 2025, the Company's commercial paper program had total capacity of
As of September 30, 2025, the Company's percentage of fixed-rate debt to total debt was
Dividends:
On September 30, 2025, the Company paid a third 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 |
||||
|
|
(October 29, 2025) |
|
(July 30, 2025) |
|
|
||||
|
|
Low |
|
High |
|
Low |
|
High |
|
|
|
Core FFO |
|
|
|
|
|
|
|
|
|
|
Dilution per share from C of O |
|
|
|
|
|
|
|
|
|
|
Same-store revenue growth |
(0.25) % |
|
0.25 % |
|
(0.50) % |
|
1.00 % |
|
Same-store pool of 1,829 stores |
|
Same-store expense growth |
4.50 % |
|
5.00 % |
|
4.00 % |
|
5.00 % |
|
Same-store pool of 1,829 stores |
|
Same-store NOI growth |
(2.25) % |
|
(1.25) % |
|
(2.75) % |
|
0.00 % |
|
Same-store pool of 1,829 stores |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average one-month |
4.21 % |
|
4.21 % |
|
4.25 % |
|
4.25 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net tenant reinsurance income |
|
|
|
|
|
|
|
|
|
|
Management fees and other |
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
|
Includes interest from bridge |
|
General and administrative |
|
|
|
|
|
|
|
|
Includes non-cash compensation |
|
Average monthly cash balance |
|
|
|
|
|
|
|
|
|
|
Equity in earnings of real |
|
|
|
|
|
|
|
|
Includes the impact of the |
|
Interest expense |
|
|
|
|
|
|
|
|
Excludes non-cash interest |
|
Non-cash interest expense |
|
|
|
|
|
|
|
|
Amortization of debt mark-to- |
|
Income Tax Expense |
|
|
|
|
|
|
|
|
Taxes associated with the |
|
Acquisitions |
|
|
|
|
|
|
|
|
Includes wholly-owned |
|
Bridge loans outstanding |
|
|
|
|
|
|
|
|
Represents the Company's |
|
Weighted average share count |
222,200,000 |
|
222,200,000 |
|
222,200,000 |
|
222,200,000 |
|
Assumes redemption of all OP |
|
|
|
|
(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, October 30, 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://pinconnect.conferenceconsole.com/PINConf?110eb349-2eed-4af8-a040-6fd113eaf595
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 October 30, 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. |
|
|
|
|
|
|
|
|
|
|
September 30, 2025 |
|
December 31, 2024 |
|
|
(Unaudited) |
|
|
|
Assets: |
|
|
|
|
Real estate assets, net |
$ 24,926,700 |
|
$ 24,587,627 |
|
Real estate assets - operating lease right-of-use assets |
732,103 |
|
689,803 |
|
Investments in unconsolidated real estate entities |
1,063,969 |
|
1,332,338 |
|
Investments in debt securities and notes receivable |
1,851,094 |
|
1,550,950 |
|
Cash and cash equivalents |
111,931 |
|
138,222 |
|
Other assets, net |
547,172 |
|
548,986 |
|
Total assets |
$ 29,232,969 |
|
$ 28,847,926 |
|
Liabilities, Noncontrolling Interests and Equity: |
|
|
|
|
Secured notes payable, net |
$ 1,042,178 |
|
$ 1,010,541 |
|
Unsecured term loans, net |
1,494,914 |
|
2,192,507 |
|
Unsecured senior notes, net |
9,423,613 |
|
7,756,968 |
|
Revolving lines of credit and commercial paper |
942,000 |
|
1,362,000 |
|
Operating lease liabilities |
757,807 |
|
705,845 |
|
Cash distributions in unconsolidated real estate ventures |
77,705 |
|
75,319 |
|
Accounts payable and accrued expenses |
472,831 |
|
346,519 |
|
Other liabilities |
525,509 |
|
538,865 |
|
Total liabilities |
14,736,557 |
|
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 |
14,867,437 |
|
14,831,946 |
|
Accumulated other comprehensive income |
1,338 |
|
12,806 |
|
Accumulated deficit |
(1,253,277) |
|
(899,337) |
|
Total Extra Space Storage Inc. stockholders' equity |
13,617,621 |
|
13,947,535 |
|
Noncontrolling interest represented by Preferred Operating Partnership units |
53,827 |
|
76,092 |
|
Noncontrolling interests in Operating Partnership, net and other noncontrolling |
824,964 |
|
835,735 |
|
Total noncontrolling interests and equity |
14,496,412 |
|
14,859,362 |
|
Total liabilities, noncontrolling interests and equity |
$ 29,232,969 |
|
$ 28,847,926 |
|
Consolidated Statement of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 |
|||||||
|
|
|||||||
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Revenues: |
|
|
|
|
|
|
|
|
Property rental |
$ 735,581 |
|
$ 710,874 |
|
$ 2,160,965 |
|
$ 2,096,018 |
|
Tenant reinsurance |
90,341 |
|
84,048 |
|
263,625 |
|
249,100 |
|
Management fees and other income |
32,538 |
|
29,882 |
|
95,485 |
|
89,888 |
|
Total revenues |
858,460 |
|
824,804 |
|
2,520,075 |
|
2,435,006 |
|
Expenses: |
|
|
|
|
|
|
|
|
Property operations |
235,486 |
|
209,035 |
|
686,689 |
|
610,455 |
|
Tenant reinsurance |
17,781 |
|
17,510 |
|
51,842 |
|
55,646 |
|
General and administrative |
43,479 |
|
39,750 |
|
134,405 |
|
123,373 |
|
Depreciation and amortization |
177,466 |
|
195,046 |
|
535,088 |
|
586,821 |
|
Total expenses |
474,212 |
|
461,341 |
|
1,408,024 |
|
1,376,295 |
|
Loss on real estate assets held for sale and sold, net |
(105,128) |
|
(8,961) |
|
(70,231) |
|
(63,620) |
|
Impairment of Life Storage trade name |
— |
|
(51,763) |
|
— |
|
(51,763) |
|
Income from operations |
279,120 |
|
302,739 |
|
1,041,820 |
|
943,328 |
|
Interest expense |
(149,650) |
|
(142,855) |
|
(438,177) |
|
(412,875) |
|
Non-cash interest expense related to amortization of discount on unsecured senior |
(12,086) |
|
(11,005) |
|
(35,169) |
|
(32,563) |
|
Interest income |
43,588 |
|
34,947 |
|
124,553 |
|
89,746 |
|
Income before equity in earnings and dividend income from unconsolidated real |
160,972 |
|
183,826 |
|
693,027 |
|
587,636 |
|
Equity in earnings and dividend income from unconsolidated real estate entities |
15,669 |
|
16,246 |
|
51,884 |
|
48,508 |
|
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate |
9,354 |
|
13,730 |
|
9,354 |
|
13,730 |
|
Income tax expense |
(11,962) |
|
(10,857) |
|
(32,591) |
|
(27,443) |
|
Net income |
174,033 |
|
202,945 |
|
721,674 |
|
622,431 |
|
Net income allocated to Preferred Operating Partnership noncontrolling interests |
(724) |
|
(1,932) |
|
(2,171) |
|
(6,073) |
|
Net income allocated to Operating Partnership and other noncontrolling interests |
(7,311) |
|
(7,803) |
|
(32,899) |
|
(24,164) |
|
Net income attributable to common stockholders |
$ 165,998 |
|
$ 193,210 |
|
$ 686,604 |
|
$ 592,194 |
|
Earnings per common share |
|
|
|
|
|
|
|
|
Basic |
$ 0.78 |
|
$ 0.91 |
|
$ 3.23 |
|
$ 2.79 |
|
Diluted |
$ 0.78 |
|
$ 0.91 |
|
$ 3.23 |
|
$ 2.79 |
|
Weighted average number of shares |
|
|
|
|
|
|
|
|
Basic |
211,963,870 |
|
211,698,436 |
|
211,918,589 |
|
211,522,578 |
|
Diluted |
221,304,958 |
|
220,298,870 |
|
211,918,589 |
|
220,177,692 |
|
Cash dividends paid per common share |
$ 1.62 |
|
$ 1.62 |
|
$ 4.86 |
|
$ 4.86 |
|
Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three and Nine Months Ended |
|||||||
|
|
|||||||
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Net Income |
$ 174,033 |
|
$ 202,945 |
|
$ 721,674 |
|
$ 622,431 |
|
Adjusted to exclude: |
|
|
|
|
|
|
|
|
Loss on real estate assets held for sale and sold, net |
105,128 |
|
8,961 |
|
70,231 |
|
63,620 |
|
Equity in earnings and dividend income from unconsolidated real |
(15,669) |
|
(16,246) |
|
(51,884) |
|
(48,508) |
|
Equity in earnings of unconsolidated real estate ventures - gain on sale |
(9,354) |
|
(13,730) |
|
(9,354) |
|
(13,730) |
|
Interest expense |
149,650 |
|
142,855 |
|
438,177 |
|
412,875 |
|
Non-cash interest expense related to amortization of discount on |
12,086 |
|
11,005 |
|
35,169 |
|
32,563 |
|
Depreciation and amortization |
177,466 |
|
195,046 |
|
535,088 |
|
586,821 |
|
Impairment of Life Storage trade name |
— |
|
51,763 |
|
— |
|
51,763 |
|
Income tax expense |
11,962 |
|
10,857 |
|
32,591 |
|
27,443 |
|
General and administrative |
43,479 |
|
39,750 |
|
134,405 |
|
123,373 |
|
Management fees, other income and interest income |
(76,126) |
|
(64,829) |
|
(220,038) |
|
(179,634) |
|
Net tenant insurance |
(72,560) |
|
(66,538) |
|
(211,783) |
|
(193,454) |
|
Non same-store rental revenue |
(61,599) |
|
(35,523) |
|
(161,604) |
|
(97,254) |
|
Non same-store operating expense |
38,749 |
|
23,071 |
|
106,127 |
|
63,509 |
|
Total same-store net operating income |
$ 477,245 |
|
$ 489,387 |
|
$ 1,418,799 |
|
$ 1,451,818 |
|
|
|
|
|
|
|
|
|
|
Same-store rental revenues |
673,982 |
|
675,351 |
|
1,999,361 |
|
1,998,764 |
|
Same-store operating expenses |
196,737 |
|
185,964 |
|
580,562 |
|
546,946 |
|
Same-store net operating income |
$ 477,245 |
|
$ 489,387 |
|
$ 1,418,799 |
|
$ 1,451,818 |
|
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 |
|
$ 4.16 |
|
$ 4.24 |
|
Income allocated to noncontrolling interest - Preferred Operating |
|
0.22 |
|
0.22 |
|
Net income attributable to common stockholders for diluted computations |
|
4.38 |
|
4.46 |
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
Real estate depreciation |
|
2.95 |
|
2.95 |
|
Amortization of intangibles |
|
0.09 |
|
0.09 |
|
Unconsolidated joint venture real estate depreciation and amortization |
|
0.14 |
|
0.14 |
|
Unconsolidated joint venture gain on sale of real estate assets and sale of a |
|
(0.04) |
|
(0.04) |
|
(Gain) loss on real estate assets held for sale and sold, net |
|
0.32 |
|
0.32 |
|
Funds from operations attributable to common stockholders |
|
7.84 |
|
7.92 |
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
Non-cash interest expense related to amortization of discount on unsecured |
|
0.21 |
|
0.21 |
|
Amortization of other intangibles related to the Life Storage Merger, net of |
|
0.07 |
|
0.07 |
|
Core funds from operations attributable to common stockholders |
|
$ 8.12 |
|
$ 8.20 |
|
Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending |
|||
|
|
|||
|
|
For the Year Ending December 31, 2025 |
||
|
|
Low |
|
High |
|
|
|
|
|
|
Net Income |
$ 1,037,636 |
|
$ 1,064,636 |
|
Adjusted to exclude: |
|
|
|
|
Equity in earnings of unconsolidated joint ventures |
(68,000) |
|
(69,000) |
|
Interest expense |
585,000 |
|
583,000 |
|
Non-cash interest expense related to amortization of discount on |
47,000 |
|
46,000 |
|
Depreciation and amortization |
713,600 |
|
713,600 |
|
Income tax expense |
43,000 |
|
42,000 |
|
General and administrative |
185,000 |
|
184,000 |
|
Management fees and other income |
(127,000) |
|
(128,000) |
|
Interest income |
(162,000) |
|
(163,000) |
|
Net tenant reinsurance income |
(281,000) |
|
(283,000) |
|
Non same-store rental revenues |
(232,667) |
|
(232,667) |
|
Non same-store operating expenses |
146,431 |
|
146,431 |
|
Total same-store net operating income1 |
$ 1,887,000 |
|
$ 1,904,000 |
|
|
|
|
|
|
Same-store rental revenues1 |
2,659,000 |
|
2,672,000 |
|
Same-store operating expenses1 |
772,000 |
|
768,000 |
|
Total same-store net operating income1 |
$ 1,887,000 |
|
$ 1,904,000 |
|
|
|
|
(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
What were Extra Space Storage (EXR) Q3 2025 earnings per diluted share?
How much FFO and Core FFO did EXR report for Q3 2025?
What happened to EXR same-store performance in Q3 2025?
Did EXR make acquisitions or management platform additions in 2025?
How did EXR strengthen its liquidity in 2025?
What was the impact of property sales on EXR's Q3 2025 results?
