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Jun 30, 2021

Extra Space Q2 2021 Earnings Report

Extra Space Storage Inc. reported strong second-quarter results, marked by record occupancy and rental rates, leading to substantial same-store NOI growth and increased FFO guidance.

Key Takeaways

Extra Space Storage Inc. announced strong Q2 2021 results, with a 56.3% increase in net income per diluted share, a 33.3% increase in FFO per diluted share, and a 20.2% increase in same-store NOI. The company also increased its FFO guidance for the year by 8.3%.

Net income attributable to common stockholders increased by 56.3% compared to the same period in 2020, reaching $1.25 per diluted share.

FFO attributable to common stockholders and unit holders was $1.64 per diluted share, representing a 33.3% increase compared to the same period in 2020.

Same-store revenue increased by 13.6%, and same-store net operating income (NOI) increased by 20.2% compared to the same period in 2020.

Same-store occupancy reached 97.0% as of June 30, 2021, compared to 94.2% as of June 30, 2020.

Total Revenue
$322M
Previous year: $279M
+15.1%
EPS
$1.64
Previous year: $1.23
+33.3%
Same-store occupancy
97%
Previous year: 94.5%
+2.6%
FFO
$1.64
Previous year: $1.21
+35.5%
Gross Profit
$283M
Previous year: $231M
+22.2%
Cash and Equivalents
$56M
Previous year: $56.4M
-0.7%
Total Assets
$9.46B
Previous year: $8.53B
+10.9%

Extra Space

Extra Space

Extra Space Revenue by Segment

Forward Guidance

The company has increased the midpoint of its FFO guidance by 8.3% to $6.53 per share.

Positive Outlook

  • FFO guidance raised to $6.45 - $6.60
  • Same-store revenue growth expected between 10.00% and 11.00%
  • Same-store expense growth expected between 0.00% and 1.00%
  • Net tenant reinsurance income projected between $136,500,000 and $137,500,000
  • Acquisitions projected at $500,000,000

Challenges Ahead

  • Dilution per share from C of O and value add acquisitions estimated at $0.12
  • General and administrative expenses projected between $100,000,000 and $101,000,000
  • Interest expense projected between $161,500,000 and $162,500,000
  • Taxes associated with the Company's taxable REIT subsidiary projected between $20,000,000 and $21,000,000
  • Weighted average share count at 141,100,000