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Jun 30, 2022
Extra Space Q2 2022 Earnings Report
Extra Space Storage Inc. reported a strong second quarter in 2022, marked by significant growth in net income, FFO, and same-store revenue.
Key Takeaways
Extra Space Storage Inc. announced strong operating results for the second quarter of 2022, featuring a 38.4% increase in net income per diluted share, a 29.9% increase in Core FFO per diluted share, and a 21.7% increase in same-store revenue. The company actively expanded its portfolio through acquisitions and developments, and increased its annual FFO guidance for the second time this year.
Net income attributable to common stockholders increased by 38.4% to $1.73 per diluted share.
Funds from operations (FFO) reached $2.12 per diluted share, with Core FFO at $2.13 per diluted share, a 29.9% increase.
Same-store revenue increased by 21.7%, and same-store net operating income (NOI) increased by 26.0%.
The company acquired 12 operating stores and three stores at completion of construction, and completed one development for a total cost of approximately $231.4 million.
Revenue by Segment
Forward Guidance
The company updated its annual FFO guidance and assumptions for the year ending December 31, 2022.
Positive Outlook
- Core FFO is projected to be between $8.30 and $8.50.
- Same-store revenue growth is expected to be between 16.00% and 18.00%.
- Same-store NOI growth is anticipated to be between 18.50% and 21.50%.
- Net tenant reinsurance income is projected to be between $153,500,000 and $155,500,000.
- Management fees and other income are expected to be between $82,500,000 and $83,500,000.
Challenges Ahead
- Dilution per share from C of O and value add acquisitions is estimated at $0.20.
- Same-store expense growth is projected to be between 7.50% and 9.00%.
- General and administrative expenses are expected to be between $124,500,000 and $125,500,000.
- Interest expense is projected to be between $210,000,000 and $212,000,000.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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