Core Viewpoint - National Storage Affiliates Trust (NYSE:NSA) is a real estate investment trust (REIT) focusing on self-storage properties across the United States, competing with other self-storage REITs like Public Storage and Extra Space Storage [1] Price Target Trends - The consensus price target for NSA has fluctuated over the past year, with the average price target recently increasing to $33, indicating a positive outlook from analysts [2][6] - Analyst Todd Stender from Wells Fargo has set a higher price target of $52 for NSA, reflecting significant optimism towards the company's future performance [2][6] - A year ago, the average price target was $32.17, showing a generally stable or slightly improving sentiment towards the stock [4] Recent Developments - In the last quarter, the average price target rose from $31.5 to $33, suggesting that analysts have become more optimistic about NSA's stock in the past month [3][6] - The upcoming fourth quarter 2025 earnings release and conference call will provide further insights into NSA's potential trajectory [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-32269 EXTRA SPACE STORAGE INC. (Exact name of registrant as specified in its charter) Maryland 20-1076777 (State or other jurisdic ...

Financial Data and Key Metrics Changes - The company reported a Core FFO growth of 2.5% in Q4 2025 and 1.1% for the full year, despite challenging operating conditions [5] - Same-store revenue growth returned to positive at 0.4% in Q4 2025, compared to only two markets achieving this in Q4 2024 [5] - Same-store NOI growth was 0.1% for the quarter, with operating expenses increasing only 1.1% [9][10] Business Line Data and Key Metrics Changes - The company strategically repurchased approximately $141 million of common shares and closed on 27 operating stores for $305 million, totaling 69 stores for $826 million for the year [6] - The company added 379 stores and 281 net new stores to its managed portfolio, bringing the total to 1,856 stores [7] Market Data and Key Metrics Changes - In Q4 2025, 16 of the top 20 markets experienced positive year-over-year move-in rates, contributing to revenue growth [5] - As of mid-February 2026, occupancy was at 92.5%, down 40 basis points year-over-year, while rates for new customers increased slightly over 6% [20] Company Strategy and Development Direction - The company aims to capitalize on improving market fundamentals and expects gradual performance acceleration in 2026 [8] - The focus remains on a diversified external growth platform, with most acquisitions expected to be in joint venture formats to enhance returns [30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in storage fundamentals, with guidance for 2026 same-store revenue ranging from -0.5% to +1.5% [11] - The company does not anticipate significant changes in the housing market or pricing restrictions in Los Angeles County affecting operations [11] Other Important Information - The company maintains a strong balance sheet with 93% of total debt at fixed rates and a weighted average interest rate of 4.3% [10] - Management highlighted the importance of job growth and supply dynamics as key drivers for the storage industry [43] Q&A Session Summary Question: Same-store revenue guidance and expectations - Management indicated that the midpoint of guidance implies generally flat same-store revenue growth, with potential for acceleration or deceleration based on market conditions [16][18] Question: Trends in street rates - Management confirmed that trends observed in Q4 2025 continued into early 2026, with positive signals in occupancy and new customer rates [20] Question: Expense guidance and confidence - Management attributed lower expense growth expectations to normalizing property taxes and improved efficiencies in other areas [25][28] Question: Acquisition volume guidance - Management clarified that most acquisitions in 2026 will be in joint venture formats to enhance returns, leading to a lower guidance number compared to previous years [30] Question: Regulatory environment impact - Management noted that recent regulatory changes in California have not significantly affected leasing activity, and they remain prepared to address potential regulatory challenges [41][51] Question: Discounting strategy and promotional environment - Management explained that their discounting strategy is channel-based and will remain unchanged unless data indicates a need for adjustment [64] Question: Use of AI in operations - Management discussed the integration of AI in pricing models and marketing strategies, emphasizing its potential to enhance operational efficiency [67] Question: Future of store managers - Management affirmed the importance of store managers in customer interactions and asset management, indicating no plans to eliminate these roles [96][98]

Financial Data and Key Metrics Changes - The company reported a positive Core FFO growth of 2.5% in Q4 2025 and 1.1% for the full year, despite challenging operating conditions [5] - Same-store revenue growth returned to positive at 0.4% in Q4 2025, compared to only two markets achieving this in Q4 2024 [5] - Same-store NOI growth was 0.1% for the quarter, with operating expenses increasing only 1.1% [9][10] Business Line Data and Key Metrics Changes - The company strategically repurchased approximately $141 million of common shares and closed on 27 operating stores for $305 million, totaling 69 stores for $826 million for the year [6] - The managed portfolio grew to 1,856 stores, with 379 stores added and 281 net new stores for the year [7] Market Data and Key Metrics Changes - In Q4, 16 of the top 20 markets experienced positive year-over-year move-in rates, contributing to revenue growth [5] - As of mid-February 2026, occupancy was at 92.5%, down 40 basis points year-over-year, while rates for new customers increased slightly over 6% [20] Company Strategy and Development Direction - The company aims to capitalize on improving market fundamentals and expects gradual performance acceleration in 2026 [8] - The strategy includes a focus on joint ventures for acquisitions to enhance returns and maintain a conservative balance sheet [30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in storage fundamentals, with guidance for same-store revenue growth in 2026 ranging from -0.5% to +1.5% [11] - The company does not anticipate significant changes in the housing market or pricing restrictions in Los Angeles County impacting their outlook [11] Other Important Information - The company has a strong balance sheet with 93% of total debt at fixed rates and a weighted average interest rate of 4.3% [10] - Management highlighted the importance of job growth and supply dynamics as key drivers for the storage industry [44] Q&A Session Summary Question: Same-store revenue guidance and trends - Management indicated that the midpoint of guidance implies generally flat same-store revenue growth, with potential for both acceleration and deceleration depending on market conditions [16][17] Question: Update on street rate trends - Management confirmed that trends from Q4 continued into early 2026, with positive signals in occupancy and new customer rates [20] Question: Confidence in lower expense guidance - Management attributed lower expense guidance to normalizing property taxes and improved efficiencies in other areas [26][28] Question: Acquisition volume guidance - The company expects most acquisitions in 2026 to be in joint venture formats to enhance returns, with flexibility to adjust guidance based on market opportunities [30] Question: Impact of regulatory changes in California - Management noted that recent legislation did not significantly affect leasing activity, as their disclosure practices were already robust [42] Question: Interplay between rate and occupancy - Management clarified that pricing decisions are made dynamically based on occupancy and market conditions, rather than a fixed strategy [50] Question: ECRI strategy and customer behavior - Management did not disclose specifics on ECRI contributions but indicated that it remains a competitive advantage [82] Question: Supply expectations and market exposure - Management expects a modest reduction in new store deliveries, particularly in oversupplied markets, based on internal and external data sources [88][89]

Financial Data and Key Metrics Changes - The company reported a Core FFO growth of 2.5% in Q4 2025 and 1.1% for the full year, despite challenging operating conditions [5] - Same-store revenue growth returned to positive at 0.4% in Q4 2025, compared to only two markets achieving this in Q4 2024 [5] - Same-store NOI growth was 0.1% for the quarter, with operating expenses increasing by only 1.1% [9][10] Business Line Data and Key Metrics Changes - The company strategically repurchased approximately $141 million of common shares and closed on 27 operating stores for $305 million, totaling 69 stores for $826 million for the year [6] - The managed portfolio grew to 1,856 stores, with 379 stores added in 2025 [7] Market Data and Key Metrics Changes - In Q4 2025, 16 of the top 20 markets experienced positive year-over-year move-in rates, contributing to revenue growth [5] - As of mid-February 2026, occupancy was at 92.5%, down 40 basis points year-over-year, while rates for new customers increased slightly over 6% [19] Company Strategy and Development Direction - The company aims to gradually accelerate performance as market fundamentals improve through 2026, with a focus on maintaining a flexible and conservative balance sheet [11] - The guidance for 2026 reflects a slow recovery in storage fundamentals, with same-store revenue expected to range from -0.5% to +1.5% [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the positioning going into 2026, citing improvements in new customer move-in rates and same-store revenue [8] - The company does not anticipate significant changes in the housing market or pricing restrictions in Los Angeles County affecting their outlook [11] Other Important Information - The company has a low leverage balance sheet, with 93% of total debt at fixed rates and a weighted average interest rate of 4.3% [10] - The company is actively using AI and machine learning to enhance operational efficiency and marketing strategies [66][67] Q&A Session Summary Question: Same-store revenue guidance interpretation - Management clarified that the midpoint of guidance implies generally flat same-store revenue growth, with potential for acceleration or deceleration based on market trends [15][16] Question: Trends in street rates - Management reported that trends observed in Q4 2025 continued into early 2026, with occupancy and rates showing positive signals [19] Question: Confidence in lower expense guidance - Management attributed lower expense guidance to normalizing property taxes and improved efficiencies in other expense categories [24][25] Question: Acquisition volume guidance - The company expects most acquisitions in 2026 to be in joint venture formats, which may lower capital requirements while enhancing returns [27][28] Question: Transition of street rates to same-store NOI - Management noted that it takes time for new rates to impact same-store NOI due to customer churn rates [34][36] Question: Regulatory environment impact - Management indicated that recent regulatory changes in California have not significantly affected leasing activity [40][41] Question: Job growth as a demand driver - Management highlighted job growth as a key factor for self-storage performance, particularly in Sun Belt markets [42] Question: Discounting strategy - The company employs a channel-based discounting strategy, with selective discounts offered based on occupancy and unit type [63] Question: AI and operational efficiencies - Management discussed the use of AI for both external marketing and internal operations, indicating a focus on leveraging technology for efficiency [66][67] Question: Supply expectations - Management expects a continued incremental reduction in new store deliveries, particularly in oversupplied markets [85][86]

Key Takeaways EXR posted Q4 core FFO of $2.08, beating estimates, as revenues rose 4.3% year over year.Same-store NOI edged up 0.1% despite a 70-basis-point drop in occupancy to 92.6%.Extra Space Storage sees 2026 core FFO of $8.05-$8.35 on flat to negative same-store NOI growth.Extra Space Storage Inc. (EXR) reported fourth-quarter 2025 core funds from operations (FFO) per share of $2.08, surpassing the Zacks Consensus Estimate of $2.03. The figure increased 2.05% from the prior-year quarter.The results re ...

Financial Performance - For the quarter ended December 2025, Extra Space Storage (EXR) reported revenue of $857.47 million, up 4.3% year-over-year [1] - EPS for the quarter was $2.08, compared to $1.24 in the same quarter last year, indicating significant growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $851.03 million by 0.76%, and the EPS also surpassed the consensus estimate of $2.03 by 2.29% [1] Key Metrics - Same-store square foot occupancy was reported at 92.6%, slightly below the estimated 93.1% [4] - Property rental revenues were $734.23 million, exceeding the average estimate of $731.87 million, reflecting a year-over-year increase of 3.8% [4] - Management fees and other income reached $33.99 million, surpassing the average estimate of $32.09 million, with a year-over-year growth of 9.8% [4] - Tenant reinsurance revenues were $89.25 million, above the average estimate of $88.44 million, marking a 6.6% increase year-over-year [4] - Same-store rental revenues were $664.23 million, slightly below the estimated $665.27 million, but showed a remarkable year-over-year increase of 59.7% [4] - Net income per diluted share was $1.36, exceeding the average estimate of $1.13 [4] - Equity in earnings and dividend income from unconsolidated real estate entities was $16.93 million, slightly above the average estimate of $16.79 million [4] - Net operating income for same-store properties was $475.9 million, surpassing the estimated $473.41 million [4] Stock Performance - Shares of Extra Space Storage have returned -0.2% over the past month, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Extra Space Storage (EXR) reported quarterly funds from operations (FFO) of $2.08 per share, exceeding the Zacks Consensus Estimate of $2.03 per share, and showing an increase from $2.03 per share a year ago [1][2] Financial Performance - The FFO surprise for the quarter was +2.29%, with the company surpassing consensus FFO estimates three times over the last four quarters [2] - Revenues for the quarter ended December 2025 were $857.47 million, surpassing the Zacks Consensus Estimate by 0.76%, compared to $821.9 million in the same quarter last year [3] Stock Performance - Extra Space Storage shares have increased by approximately 11.5% since the beginning of the year, while the S&P 500 has gained 0.5% [4] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $2.02 on revenues of $849.89 million, and for the current fiscal year, it is $8.25 on revenues of $3.44 billion [8] - The estimate revisions trend for Extra Space Storage was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The REIT and Equity Trust - Other industry is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [9]

Financial Performance - Achieved net income attributable to common stockholders of $1.36 per diluted share, a 9.7% increase year-over-year[5] - Funds from operations (FFO) attributable to common stockholders was $1.99 per diluted share, with Core FFO at $2.08 per diluted share, reflecting a 2.5% increase year-over-year[5] - Total revenues for Q4 2025 reached $857.5 million, a 4.3% increase from $821.9 million in Q4 2024[39] - Net income attributable to common stockholders for Q4 2025 was $287.4 million, up 9.5% from $262.5 million in Q4 2024[39] - Same-store rental revenues for the year ended December 31, 2025, were $2.65 billion, slightly up from $2.64 billion in 2024[40] - Total same-store net operating income for the year ended December 31, 2025, was $1.88 billion, compared to $1.92 billion in 2024, reflecting a decrease of 1.8%[40] - The company expects fully diluted earnings per share for the year ending December 31, 2026, to range between $4.40 and $4.70[41] - Net income for the year ending December 31, 2026, is estimated to be between $1.00 billion and $1.08 billion[42] Operational Metrics - Same-store revenue increased by 0.4% and same-store net operating income (NOI) increased by 0.1% compared to the prior year[5] - Reported ending same-store occupancy of 92.6% as of December 31, 2025, down from 93.3% as of December 31, 2024[5] - Same-store net rental income for Q4 2025 was $639,489,000, a 0.5% increase from Q4 2024's $636,530,000[1] - Total same-store revenues for the year ended December 31, 2025, reached $2,648,814,000, reflecting a 0.1% increase from $2,645,534,000 in 2024[1] - Same-store operating expenses increased by 1.1% to $188,329,000 in Q4 2025, compared to $186,299,000 in Q4 2024[1] - The company reported a total of 1,871 stores in its same-store pool for 2026[42] Investments and Acquisitions - Acquired 27 operating stores for a total cost of $304.8 million and seven additional stores for approximately $106.9 million[5] - Acquired joint venture interests for $342.2 million, now wholly owning 28 properties previously held by partners[7] - The company sold its interest in nine of ten properties held in a joint venture, resulting in a net gain of $45.2 million during Q4 2025[17] Shareholder Actions - Repurchased 1,089,659 shares of common stock for $140.9 million at an average price of $129.32 per share[5] - The company paid a fourth quarter common stock dividend of $1.62 per share on December 31, 2025[24] Debt and Assets - As of December 31, 2025, the company's percentage of fixed-rate debt to total debt was 82.1%[22] - Total assets increased to $29.26 billion in 2025 from $28.85 billion in 2024, reflecting a growth of approximately 1.4%[38] - Real estate assets, net, rose to $25.00 billion in 2025, up from $24.59 billion in 2024, indicating an increase of about 1.7%[38] - The company's total liabilities increased to $14.94 billion in 2025 from $13.99 billion in 2024, representing a growth of approximately 6.8%[38] - The company reported an accumulated deficit of $1.45 billion as of December 31, 2025, compared to $899.34 million in 2024, showing a significant increase in losses[38] Future Outlook - For 2026, the company expects improving results due to strengthening customer rates and moderating new supply[6] - Core FFO estimates for 2026 range from $8.05 to $8.35 per share, with same-store revenue growth projected between (0.50)% and 1.50%[25] - Estimated same-store rental revenues for 2026 are projected to be between $2.69 billion and $2.75 billion[42] - Interest expense for the year ending December 31, 2026, is estimated at approximately $595 million[42] Risk Factors - The company faces risks including adverse changes in economic conditions, competition, and potential liabilities related to environmental contamination[34] - The company emphasizes the importance of maintaining its REIT status for U.S. federal income tax purposes to ensure operational viability[34] Management and Operations - Added 78 stores to the third-party management platform, bringing the total to 2,263 managed stores[5] - The company managed a total of 2,263 stores as of December 31, 2025, including 1,856 stores for third-party owners[19] - The company originated $80.4 million in mortgage and mezzanine bridge loans and sold $16.2 million in mortgage bridge loans[5] - The company originated $80.4 million in bridge loans during Q4 2025, with outstanding balances of approximately $1.5 billion at the end of the quarter[18] - The company defines FFO (Funds From Operations) as net income excluding gains or losses on sales of operating stores and impairment write-downs, plus depreciation and amortization related to real estate[32] - Core FFO excludes non-core revenues and expenses, providing a clearer picture of operating performance, particularly post-merger with Life Storage[33] - The same-store pool consists of 1,804 stores that are wholly-owned and stabilized, allowing for a more accurate evaluation of operating performance[35]

Core Insights - Extra Space Storage Inc. reported steady financial results for Q4 and the full year of 2025, highlighting a focus on occupancy and revenue growth despite slight declines in same-store metrics [1][2]. Financial Performance - For Q4 2025, the company paid a dividend of $1.62 per share and achieved net income of $287.4 million, or $1.36 per diluted share, a 9.7% increase from Q4 2024 [1][2]. - Funds from operations (FFO) for Q4 were $440.3 million, translating to $1.99 per diluted share, while Core FFO was $460.8 million, or $2.08 per diluted share, marking a 2.5% increase year-over-year [1][2]. - For the full year 2025, net income attributable to common stockholders was $974.0 million, or $4.59 per diluted share, a 13.9% increase from 2024 [1][2]. Operational Highlights - The company added 379 stores to its third-party management platform in 2025, bringing the total managed stores to 2,263 [1][2]. - Same-store revenue increased by 0.1% for the year, while same-store net operating income (NOI) decreased by 1.7% compared to 2024 [1][2]. - As of December 31, 2025, same-store occupancy was reported at 92.6%, down from 93.3% in the previous year [1][2]. Investment Activities - In 2025, the company originated $409.4 million in mortgage and mezzanine bridge loans and sold $122.1 million in mortgage bridge loans [1][2]. - The company acquired 41 operating stores for a total cost of $483.6 million during the year [1][2]. - The company also repurchased 1,158,244 shares of common stock for $149.5 million at an average price of $129.10 per share [1][2]. Outlook for 2026 - The company anticipates Core FFO for 2026 to range between $8.05 and $8.35 per share, with same-store revenue growth projected between -0.5% and 1.5% [2][5]. - Management expects customer rates to strengthen and new supply to moderate, positioning the portfolio for improved results in the coming year [1][2].