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Extra Space Storage Q4 FFO Beats Estimates, Occupancy Grows Y/Y
EXRExtra Space Storage(EXR) ZACKS·2025-02-26 16:55

Core Insights - Extra Space Storage Inc. (EXR) reported fourth-quarter 2024 core funds from operations (FFO) per share of 2.03,slightlyexceedingtheZacksConsensusEstimatebyonecent,andreflectinga0.52.03, slightly exceeding the Zacks Consensus Estimate by one cent, and reflecting a 0.5% increase year-over-year [1] - The company experienced a revenue increase of 3% year-over-year, totaling 821.9 million, although this figure fell short of the Zacks Consensus Estimate of 831.5million[2]−Forthefullyear2024,coreFFOpersharewas831.5 million [2] - For the full year 2024, core FFO per share was 8.12, up 0.2% from the previous year, surpassing the Zacks Consensus Estimate of 8.10,withtotalrevenuesgrowing27.28.10, with total revenues growing 27.2% to 3.26 billion [3] Financial Performance - Same-store revenues decreased by 0.4% year-over-year to 415.9millioninQ42024,attributedtodeclinesinnetrentalincomeandotherincome[4]−Same−storeoperatingexpensesroseby9.5415.9 million in Q4 2024, attributed to declines in net rental income and other income [4] - Same-store operating expenses rose by 9.5% year-over-year to 110.5 million, driven by increases in marketing, payroll, property operating expenses, repairs, maintenance, and property taxes [4] - Same-store net operating income (NOI) decreased by 3.5% year-over-year to 305.4million[4]OccupancyandPortfolioActivity−Same−storesquare−footoccupancyincreasedby120basispointsyear−over−yearto93.7305.4 million [4] Occupancy and Portfolio Activity - Same-store square-foot occupancy increased by 120 basis points year-over-year to 93.7% as of December 31, 2024, surpassing the estimate of 93.2% [5] - During Q4, Extra Space Storage acquired 38 operating stores for approximately 359.7 million and increased its ownership stake in two existing joint ventures to 49% for 251.2million[6]−Thecompanyadded130stores(114storesnet)toitsthird−partymanagementplatform,managingatotalof2,035storesasofDecember31,2024[6]BalanceSheetandShareholderActivity−AsofDecember31,2024,ExtraSpaceStoragehad251.2 million [6] - The company added 130 stores (114 stores net) to its third-party management platform, managing a total of 2,035 stores as of December 31, 2024 [6] Balance Sheet and Shareholder Activity - As of December 31, 2024, Extra Space Storage had 138.2 million in cash and cash equivalents, an increase from 88.9millionasofSeptember30,2024[7]−Thecompanymaintainedafixed−ratedebtpercentageof75.888.9 million as of September 30, 2024 [7] - The company maintained a fixed-rate debt percentage of 75.8% of total debt, with a combined weighted average interest rate of 4.4% and a weighted average maturity of approximately 4.4 years [7] - No shares were issued under the at-the-market program during the quarter, with 800 million available for issuance and an additional 500millionauthorizedforrepurchaseasofDecember31,2024[8]2025Guidance−ExtraSpaceStorageprovidedinitialguidancefor2025,expectingcoreFFOpersharebetween500 million authorized for repurchase as of December 31, 2024 [8] 2025 Guidance - Extra Space Storage provided initial guidance for 2025, expecting core FFO per share between 8.00 and 8.30,whichisbelowtheZacksConsensusEstimateof8.30, which is below the Zacks Consensus Estimate of 8.34 [10] - The guidance is based on anticipated negative growth of 0.75% to 1.25% in same-store revenues and a projected increase of 3.75% to 5.25% in same-store expenses, with same-store NOI expected to decline between 3.00% to 0.25% [10]