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Sep 30, 2024

Extra Space Q3 2024 Earnings Report

Extra Space Storage Inc. reported its Q3 2024 results, with a decrease in net income but an increase in Core FFO per share. Same-store revenue and NOI experienced slight declines, while ending same-store occupancy increased.

Key Takeaways

Extra Space Storage Inc. announced its Q3 2024 financial results, revealing a mixed performance. While net income attributable to common stockholders decreased by 5.2% year-over-year, Core FFO per share increased by 2.5%. Same-store revenue and NOI saw slight decreases, but the company maintained strong occupancy levels and expanded its third-party management platform.

Net income attributable to common stockholders decreased by 5.2% to $0.91 per diluted share.

Core FFO increased by 2.5% to $2.07 per diluted share.

Same-store revenue decreased by 0.3%, and same-store NOI decreased by 1.0%.

Ending same-store occupancy increased to 94.3% compared to 93.7% in the prior year.

Total Revenue
$825M
Previous year: $748M
+10.3%
EPS
$2.07
Previous year: $2.02
+2.5%
Same-store occupancy
94.3%
Previous year: 94.1%
+0.2%
FFO
$1.75
Previous year: $1.69
+3.6%
Gross Profit
$598M
Previous year: $733M
-18.4%
Cash and Equivalents
$88.9M
Previous year: $216M
-58.9%
Total Assets
$28.1B
Previous year: $27.6B
+1.6%

Extra Space

Extra Space

Extra Space Revenue by Segment

Forward Guidance

Extra Space Storage provided its outlook for the year ending December 31, 2024, with Core FFO estimates ranging from $8.00 to $8.15. The company anticipates same-store revenue growth between -0.25% and 0.50% for EXR stores and between 0.25% and 1.25% for Legacy LSI stores.

Positive Outlook

  • Net tenant reinsurance income is projected to be between $256,000,000 and $258,000,000.
  • Management fees and other income are expected to be between $119,000,000 and $120,000,000.
  • Interest income is estimated to be between $121,500,000 and $122,500,000.
  • Equity in earnings of real estate ventures is projected to be between $64,000,000 and $65,000,000.
  • The company anticipates acquisitions totaling $500,000,000.

Challenges Ahead

  • EXR Same-store NOI growth is projected to be between (2.25)% and (0.50)%.
  • Legacy LSI Same-store NOI growth is projected to be between (1.50)% and 0.50%.
  • General and administrative expenses are expected to be between $168,000,000 and $170,000,000.
  • Interest expense is estimated to be between $547,000,000 and $550,000,000.
  • Income Tax Expense is projected to be between $34,000,000 and $35,000,000.