Extra Space Q1 2021 Earnings Report
Key Takeaways
Extra Space Storage Inc. announced strong operating results for the three months ended March 31, 2021. The company achieved a significant increase in net income per diluted share and FFO per diluted share compared to the same period in 2020. Same-store revenue and net operating income also increased, driven by record-high occupancy.
Net income attributable to common stockholders increased by 84.3% to $1.53 per diluted share.
FFO increased by 21.0% to $1.50 per diluted share.
Same-store revenue increased by 4.6% and same-store NOI increased by 6.5%.
Same-store occupancy reached 95.7% as of March 31, 2021.
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Extra Space Revenue by Segment
Forward Guidance
The company raised its 2021 annual FFO guidance based on year-to-date performance, the resilience of storage fundamentals and accretive external growth.
Positive Outlook
- FFO is expected to be between $5.95 and $6.10
- Core FFO is expected to be between $5.95 and $6.10
- Same-store revenue growth is expected to be between 5.00% and 6.00%
- Same-store NOI growth is expected to be between 6.00% and 8.00%
- Net tenant reinsurance income is expected to be between $132,500,000 and $134,000,000
Challenges Ahead
- Dilution per share from C of O and value add acquisitions is expected to be $0.14
- Same-store expense growth is expected to be between 2.00% and 3.00%
- Weighted average one-month LIBOR is expected to be 0.14%
- General and administrative expenses are expected to be between $96,500,000 and $97,500,000
- Interest expense is expected to be between $162,000,000 and $164,000,000