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Sep 30, 2021

Extra Space Q3 2021 Earnings Report

Extra Space Storage Inc. reported strong Q3 2021 results, marked by significant increases in net income, FFO, and same-store revenue and NOI, driven by record occupancy and rental rates.

Key Takeaways

Extra Space Storage Inc. announced strong operating results for the third quarter of 2021, with a 59.1% increase in net income per diluted share to $1.40, a 41.2% increase in FFO per diluted share to $1.85, and significant growth in same-store revenue and NOI. The company also expanded its portfolio through acquisitions and third-party management agreements.

Net income attributable to common stockholders increased by 59.1% to $1.40 per diluted share.

FFO increased by 41.2% to $1.85 per diluted share.

Same-store revenue increased by 18.4%, and same-store NOI increased by 27.8%.

Same-store occupancy reached 96.7% as of September 30, 2021.

Total Revenue
$351M
Previous year: $290M
+21.0%
EPS
$1.85
Previous year: $1.31
+41.2%
Same-store occupancy
96.7%
Previous year: 95.9%
+0.8%
FFO
$1.85
Previous year: $1.3
+42.3%
Gross Profit
$312M
Previous year: $244M
+28.2%
Cash and Equivalents
$65.6M
Previous year: $74.8M
-12.3%
Total Assets
$9.71B
Previous year: $8.76B
+10.8%

Extra Space

Extra Space

Extra Space Revenue by Segment

Forward Guidance

The company provided FFO estimates and annual assumptions for the year ending December 31, 2021.

Positive Outlook

  • FFO is expected to be between $6.75 and $6.85.
  • Core FFO is projected to be between $6.75 and $6.85.
  • Same-store revenue growth is anticipated to be between 12.50% and 13.50%.
  • Same-store NOI growth is expected to be between 18.00% and 19.50%.
  • Net tenant reinsurance income is estimated to be between $141,000,000 and $142,000,000.

Challenges Ahead

  • Dilution per share from C of O and value add acquisitions is estimated at $0.11.
  • Same-store expense growth is projected to be between -1.00% and 0.00%.
  • General and administrative expenses are expected to be between $100,000,000 and $101,000,000.
  • Interest expense is estimated to be between $163,500,000 and $164,500,000.
  • Taxes associated with the Company's taxable REIT subsidiary are projected to be between $22,000,000 and $23,000,000.