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Dec 31, 2023
Extra Space Q4 2023 Earnings Report
Extra Space Storage reported a solid quarter with a focus on optimizing recently added Life Storage assets and maximizing legacy Extra Space Storage locations.
Key Takeaways
Extra Space Storage Inc. reported its Q4 2023 results, which included a decrease in net income attributable to common stockholders and a slight decrease in Core FFO per diluted share. The company focused on optimizing the performance of recently added Life Storage assets while maximizing the performance of legacy Extra Space Storage locations.
Net income attributable to common stockholders decreased by 32.9% to $1.02 per diluted share.
FFO was $1.89 per diluted share, with Core FFO at $2.02 per diluted share, a 3.3% decrease.
Same-store revenue increased by 0.8%, while same-store NOI decreased by 0.1%.
Ending same-store occupancy was 93.0% as of December 31, 2023, compared to 94.1% as of December 31, 2022.
Extra Space
Extra Space
Extra Space Revenue by Segment
Revenue by Segment
Tenant Reinsurance Revenue
CapyFin.com Forward Guidance
The company provided its Core FFO estimates and annual assumptions for the year ending December 31, 2024.
Positive Outlook
- Stronger revenue growth from the Life Storage assets.
- The Life Storage assets are benefiting from the sophistication of the Extra Space platform.
- Durability of self-storage.
- Highly diversified portfolio.
- Platform's ability to capture customer volume when sector demand accelerates.
Challenges Ahead
- Dilution per share from C of O and value add acquisitions is expected to be $0.20.
- EXR Same-store revenue growth is projected to be between (2.00)% and 0.50%.
- EXR Same-store NOI growth is projected to be between (4.25)% and (0.50)%.
- Legacy LSI Same-store NOI growth is projected to be between (0.25)% and 4.00%.
- Weighted average one-month SOFR is expected to be 4.75%.