Extra Space Q3 2022 Earnings Report
Key Takeaways
Extra Space Storage Inc. announced strong operating results for the third quarter of 2022, with a 15.5% increase in same-store revenue and a 16.4% increase in same-store net operating income. The company's Core FFO grew by 19.5%, and it completed the acquisition of Storage Express, which is expected to drive future growth.
Net income attributable to common stockholders increased by 17.9% to $1.65 per diluted share.
Core FFO increased by 19.5% to $2.21 per diluted share.
Same-store revenue increased by 15.5%, and same-store NOI increased by 16.4%.
Acquired 116 operating stores and completed one development for a total cost of approximately $759.9 million.
Extra Space
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Extra Space Revenue by Segment
Forward Guidance
The company provided its current and initial Core FFO estimates and annual assumptions for the year ending December 31, 2022.
Positive Outlook
- Same-store revenue growth is expected to be between 16.25% and 17.25%.
- Management fees and other income are projected to be between $83.5 million and $84.5 million.
- Interest income is estimated to be between $69 million and $70 million.
- Equity in earnings of real estate ventures is expected to be between $41 million and $42 million.
- The weighted average share count is projected to be 143,000,000.
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 8.50% and 9.50%.
- General and administrative expenses are expected to be between $126.5 million and $127.5 million.
- Interest expense is estimated to be between $219 million and $221 million.
- Income Tax Expense is estimated to be between $22 million and $23 million.