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Dec 31, 2022

Extra Space Q4 2022 Earnings Report

Extra Space Storage Inc. reported strong Q4 2022 results, with increased same-store revenue and NOI, and Core FFO growth.

Key Takeaways

Extra Space Storage Inc. reported Q4 2022 results, featuring a decrease in net income attributable to common stockholders, but an increase in FFO. The company also saw growth in same-store revenue and NOI.

Net income attributable to common stockholders decreased by 24.0% to $1.52 per diluted share.

FFO was $2.09 per diluted share, with Core FFO also at $2.09 per diluted share, representing a 9.4% increase.

Same-store revenue increased by 11.8% and same-store NOI increased by 13.4%.

Same-store occupancy was 94.2% as of December 31, 2022, compared to 95.3% as of December 31, 2021.

Total Revenue
$438M
Previous year: $365M
+20.2%
EPS
$2.09
Previous year: $1.91
+9.4%
Same-store occupancy
94.2%
Previous year: 95.3%
-1.2%
FFO
$2.09
Previous year: $1.91
+9.4%
Gross Profit
$386M
Previous year: $325M
+18.6%
Cash and Equivalents
$92.9M
Previous year: $71.1M
+30.6%
Total Assets
$12.2B
Previous year: $10.5B
+16.2%

Extra Space

Extra Space

Extra Space Revenue by Segment

Forward Guidance

The company provided initial Core FFO estimates and annual assumptions for the year ending December 31, 2023.

Positive Outlook

  • Core FFO is estimated to be between $8.30 and $8.60 per share.
  • Same-store revenue growth is projected to be between 3.75% and 5.25%.
  • Net tenant reinsurance income is expected to be between $158,500,000 and $159,500,000.
  • Management fees and other income are projected to be between $86,000,000 and $87,000,000.
  • Interest income is estimated to be between $87,000,000 and $88,000,000.

Challenges Ahead

  • Dilution per share from C of O and value add acquisitions is estimated at $0.25.
  • Same-store expense growth is projected to be between 5.00% and 6.00%.
  • Weighted average one-month LIBOR/SOFR is projected at 4.77% / 4.68%.
  • General and administrative expenses are expected to be between $140,500,000 and $141,500,000.
  • Interest expense is estimated to be between $333,000,000 and $336,000,000.