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Dec 31, 2021

Extra Space Q4 2021 Earnings Report

Extra Space Storage Inc. reported strong Q4 2021 results, marked by significant growth in net income, FFO, and same-store revenue.

Key Takeaways

Extra Space Storage Inc. announced exceptional Q4 2021 results, featuring all-time high occupancy and strong pricing power, leading to a 24.2% increase in same-store NOI. The company's Core FFO grew by 29.1%, driven by both internal and external growth strategies. Management anticipates continued solid storage fundamentals in 2022.

Net income attributable to common stockholders increased by 68.1% to $2.00 per diluted share.

FFO was $1.91 per diluted share, with Core FFO also at $1.91 per diluted share, a 29.1% increase year-over-year.

Same-store revenue increased by 18.3%, and same-store NOI increased by 24.2%.

Same-store occupancy was reported at 95.3% as of December 31, 2021, compared to 94.9% as of December 31, 2020.

Total Revenue
$365M
Previous year: $301M
+21.1%
EPS
$1.91
Previous year: $1.48
+29.1%
Same Store Occupancy
95.3%
Previous year: 94.8%
+0.5%
Funds From Operations
$1.91
Previous year: $1.48
+29.1%
Gross Profit
$325M
Previous year: $259M
+25.6%
Cash and Equivalents
$71.1M
Previous year: $109M
-34.8%
Total Assets
$10.5B
Previous year: $9.4B
+11.5%

Extra Space

Extra Space

Extra Space Revenue by Segment

Forward Guidance

The company expects solid storage fundamentals again in 2022, with anticipated same-store revenue growth of 11.5% and Core FFO growth of 13.2% at the mid-points, despite very challenging 2021 comparables.

Positive Outlook

  • FFO between $7.70 and $7.95
  • Core FFO between $7.70 and $7.95
  • Same-store revenue growth between 10.50% and 12.50%
  • Net tenant reinsurance income between $153,500,000 and $155,500,000
  • Management fees and other income between $76,000,000 and $77,000,000

Challenges Ahead

  • Dilution per share from C of O and value add acquisitions of $0.23
  • Same-store expense growth between 6.00% and 7.50%
  • Weighted average one-month LIBOR of 0.80%
  • General and administrative expenses between $121,500,000 and $123,000,000
  • Interest expense between $183,500,000 and $185,500,000