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Dec 31, 2019

Extra Space Q4 2019 Earnings Report

Extra Space Storage's Q4 2019 performance showed positive growth, with increases in net income, FFO, and same-store revenue.

Key Takeaways

Extra Space Storage Inc. reported a positive fourth quarter, marked by a 7.5% increase in net income attributable to common stockholders, a 2.5% rise in same-store revenue, and the addition of 41 stores to its third-party management platform.

Net income attributable to common stockholders increased by 7.5% to $0.86 per diluted share.

FFO reached $1.26 per diluted share, with Core FFO at $1.27 per diluted share, a 4.1% increase.

Same-store revenue grew by 2.5%, and same-store NOI increased by 1.0%.

Same-store occupancy was 92.4% as of December 31, 2019, compared to 91.7% the previous year.

Total Revenue
$289M
Previous year: $267M
+8.3%
EPS
$1.27
Previous year: $1.22
+4.1%
Same-store occupancy
92.4%
Previous year: 91.7%
+0.8%
FFO
$1.26
Gross Profit
$240M
Previous year: $228M
+5.3%
Cash and Equivalents
$65.7M
Previous year: $57.5M
+14.3%
Total Assets
$8.53B
Previous year: $7.85B
+8.7%

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, 2020.

Positive Outlook

  • FFO is expected to be between $4.96 and $5.05.
  • Core FFO is projected to be in the range of $4.99 to $5.08.
  • Same-store revenue growth is anticipated to be between 0.75% and 1.75%.
  • Net tenant reinsurance income is estimated at $107,000,000 to $108,000,000.
  • Management fees, other income, and interest income are projected to be $69,000,000 to $70,000,000.

Challenges Ahead

  • Dilution per share from C of O and value add acquisitions is expected to be $0.20.
  • Same-store expense growth is projected to be between 4.00% and 5.00%.
  • Same-store NOI growth is expected to be between -0.50% and 1.00%.
  • Interest expense is estimated to be $179,000,000 to $181,000,000.
  • Taxes associated with the Company's taxable REIT subsidiary are projected to be $13,000,000 to $14,000,000.