Albert Anthony is the pen name of a Croatian-American business author who is a media contributor on investor platform Seeking Alpha, where he has over +1K followers, & also writes for platforms like Investing dot com and is launching a book on Amazon in 2025 called Real Estate Investment Trusts (REITs): A Fundamental Analysis.The author comes from a non-traditional financial background having been an analyst in the IT sector for several Fortune 500 companies in the US, as well as the technical support team ...

In trading on Friday, shares of Extra Space Storage Inc (Symbol: EXR) crossed above their 200 day moving average of $155.97, changing hands as high as $156.06 per share. Extra Space Storage Inc shares are currently trading up about 1% on the day. The chart below shows the one year performance of EXR shares, versus its 200 day moving average: Looking at the chart above, EXR's low point in its 52 week range is $139.97 per share, with $216.52 as the 52 week high point — that compares with a last trade of $15 ...

Core Viewpoint - Extra Space Storage Inc. is a real estate investment trust (REIT) focused on owning, operating, and managing storage facilities across the U.S. The company is set to report its Q3 2025 earnings on October 28, with expectations of a decline in EPS but an increase in quarterly revenue compared to the previous year [1][2]. Financial Performance - For Q3 2025, analysts expect Extra Space Storage to post an EPS of $1.54, down from $2.07 in the prior-year period [2]. - Quarterly revenue is anticipated to reach $790.49 million, an increase from $710.87 million a year earlier [2]. - In Q2 2025, the company reported FFO of $2.05, slightly below the consensus estimate of $2.06, with revenues of $665.56 million, compared to the consensus of $761.95 million [7]. Historical Investment Performance - If an investor had purchased Extra Space Storage stock 10 years ago at approximately $73.08 per share, a $10,000 investment would have grown to $20,153 based on stock price appreciation alone, with current shares trading at $147.28 [3]. - Over the past decade, the company has paid about $47.13 in dividends per share, resulting in an additional $6,449 from dividends alone [4]. - The total value of the investment after 10 years would be $26,602, representing a total return of 166.02%, which is significantly lower than the S&P 500 total return of 292.70% for the same period [5]. Analyst Ratings and Future Outlook - Extra Space Storage has a consensus rating of "Neutral" with a price target of $155.53, indicating more than 5% potential upside from the current stock price [6]. - The CEO highlighted solid second-quarter results driven by high occupancy rates and improving customer behavior, while maintaining annual FFO and same-store guidance [8].

Company Overview - Extra Space Storage Inc. is a fully integrated, self-administered and self-managed real estate investment trust, and a member of the S&P 500 [2] - As of June 30, 2025, the company owned and/or operated 4,179 self-storage properties, comprising approximately 2.9 million units and about 321.5 million square feet of rentable storage space [2] - The company is the largest operator of self-storage properties in the United States, offering a wide selection of conveniently located and secure storage units, including boat storage, RV storage, and business storage [2] Dividend Announcement - The company's board of directors declared a third quarter 2025 dividend of $1.62 per share on the common stock [1] - The dividend is payable on September 30, 2025, to stockholders of record at the close of business on September 15, 2025 [1]

Group 1 - Federal Realty Trust (FRT) is highlighted as the only dividend king in the real estate sector, indicating its strong performance in maintaining and increasing dividends over time [1] - The article discusses the health of shopping centers within the real estate industry, suggesting a focus on the retail segment's resilience and potential for growth [1]

Core Viewpoint - Extra Space Storage Inc. has announced a public offering of $800 million in senior notes with a 4.950% interest rate, maturing in 2033, to support its financial operations and potential acquisitions [1][3]. Group 1: Offering Details - The public offering is priced at 99.739% of the principal amount and is expected to close around August 8, 2025, pending customary closing conditions [2][1]. - The senior notes will be fully and unconditionally guaranteed by Extra Space and certain subsidiaries [2]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized to repay outstanding amounts under lines of credit and commercial paper programs, as well as for general corporate and working capital purposes, including potential acquisitions [3]. Group 3: Company Overview - Extra Space Storage Inc. is a self-administered and self-managed real estate investment trust, a member of the S&P 500, operating 4,179 self-storage stores across 43 states and Washington, D.C., with approximately 2.9 million units and 321.5 million square feet of rentable space [6].

```markdown [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=6&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(unaudited)) The company's financial statements show an increase in total assets to **$29.4 billion** as of June 30, 2025, from **$28.8 billion** at year-end 2024, primarily driven by growth in real estate assets. For the six months ended June 30, 2025, total revenues grew to **$1.66 billion** from **$1.61 billion** year-over-year, and net income attributable to common stockholders increased to **$520.6 million** from **$399.0 million**. Net cash from operations remained stable at approximately **$1.0 billion** [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$29,368,011** | **$28,847,926** | | Real estate assets, net | $25,099,810 | $24,587,627 | | **Total Liabilities** | **$14,690,922** | **$13,988,564** | | Unsecured senior notes, net | $8,618,943 | $7,756,968 | | **Total Extra Space Storage Inc. stockholders' equity** | **$13,790,842** | **$13,947,535** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$841,618** | **$810,663** | **$1,661,615** | **$1,610,202** | | Property rental | $721,004 | $697,100 | $1,425,384 | $1,385,144 | | **Net Income** | **$262,716** | **$195,412** | **$547,641** | **$419,486** | | Net income attributable to common stockholders | $249,731 | $185,872 | $520,606 | $398,984 | | **Diluted EPS** | **$1.18** | **$0.88** | **$2.45** | **$1.88** | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,025,265 | $1,010,800 | | Net cash used in investing activities | ($614,255) | ($764,767) | | Net cash used in financing activities | ($425,625) | ($269,572) | | **Net decrease in cash** | **($14,615)** | **($23,539)** | - Key investing activities in the first six months of 2025 included **$464.5 million** for real estate acquisitions and **$360.4 million** for issuing new notes receivable, partially offset by **$133.2 million** in proceeds from real estate sales and a **$200.0 million** return of investment from an unconsolidated venture[28](index=28&type=chunk) - Financing activities were dominated by significant debt turnover, with **$6.44 billion** in proceeds from new debt and **$6.97 billion** in principal payments. The company also paid **$688.1 million** in dividends to common stockholders[28](index=28&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The notes detail the company's structure as a self-storage REIT operating **4,179 stores** (owned and/or managed) as of June 30, 2025. Key activities include the acquisition of **45 stores** for **$697.1 million** and the sale of **12 stores** for **$133.8 million** in the first half of 2025. The company's debt portfolio totaled **$12.0 billion**, with a weighted average interest rate of **4.4%**. Segment reporting highlights two main operations: self-storage and tenant reinsurance, with self-storage operations generating **$974.2 million** in NOI for the six-month period [Note 1: Organization](index=13&type=section&id=1.%20ORGANIZATION) - Extra Space Storage Inc. is a self-administered REIT focused on owning, operating, and managing self-storage properties across the United States[32](index=32&type=chunk) - As of June 30, 2025, the company owns and/or manages a total of **4,179 stores**, comprising **2,430 stores** with direct or indirect equity interests and **1,749 stores** managed for third parties[33](index=33&type=chunk) [Note 4: Acquisitions and Dispositions](index=16&type=section&id=4.%20ACQUISITIONS%20AND%20DISPOSITIONS) Store Acquisitions Summary | Period | Number of Stores | Total Real Estate Assets Value (in thousands) | | :--- | :--- | :--- | | **Total 2025 (YTD)** | **45** | **$697,149** | | Q2 2025 | 28 | $448,928 | | Q1 2025 | 17 | $248,221 | | **Total 2024 (YTD)** | **9** | **$62,996** | - During the six months ended June 30, 2025, the company sold **12 stores** for approximately **$133.8 million**, resulting in a net gain of **$34.9 million** after accounting for losses on other asset sales[53](index=53&type=chunk) [Note 7: Earnings Per Common Share](index=18&type=section&id=7.%20EARNINGS%20PER%20COMMON%20SHARE) Earnings Per Common Share Calculation (in thousands, except per share data) | Description | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $520,606 | $398,984 | | Weighted average common shares outstanding - basic | 211,895,586 | 211,433,877 | | Weighted average common shares outstanding - diluted | 211,895,586 | 220,114,016 | | **Basic EPS** | **$2.45** | **$1.88** | | **Diluted EPS** | **$2.45** | **$1.88** | [Note 10: Debt](index=22&type=section&id=10.%20DEBT) - Total term debt increased to **$12.0 billion** at June 30, 2025, from **$11.2 billion** at December 31, 2024[71](index=71&type=chunk) - As of June 30, 2025, the company's debt had a combined weighted average interest rate of **4.4%**, with **77.6%** of it being fixed-rate debt[78](index=78&type=chunk) - The company established a **$1 billion** commercial paper program in November 2024, with **$700 million** outstanding as of June 30, 2025[74](index=74&type=chunk) [Note 12: Stockholders' Equity](index=24&type=section&id=12.%20STOCKHOLDERS%27%20EQUITY) - In the first six months of 2025, the company repurchased **68,585 shares** for **$8.6 million** under its **$500 million** share repurchase program, with **$491.4 million** remaining authorized[89](index=89&type=chunk) - The company has an **$800 million** "at the market" (ATM) equity program established in April 2024, but no shares have been sold under it as of June 30, 2025[88](index=88&type=chunk) [Note 15: Segment Information](index=27&type=section&id=15.%20SEGMENT%20INFORMATION) - The company operates through two reportable segments: (1) self-storage operations and (2) tenant reinsurance. Performance is assessed by the Executive Committee based on Net Operating Income (NOI)[106](index=106&type=chunk) Segment Net Operating Income (NOI) (in thousands) | Segment | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Self-Storage Operations | $974,181 | $983,724 | | Tenant Reinsurance | $139,223 | $126,916 | | **Total Segment NOI** | **$1,113,404** | **$1,110,640** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management reports that revenue growth for the first half of 2025 was driven by acquisitions, which added **$47.6 million** in property rental revenue. However, same-store NOI decreased by **2.2%** year-over-year due to an **17.5%** increase in property taxes. The company's liquidity remains strong with **$125 million** in cash and access to credit facilities. The FFO attributable to common stockholders and unit holders was **$867.4 million** for the first six months of 2025, a slight increase from **$855.0 million** in the prior year [Properties](index=31&type=section&id=PROPERTIES) - As of June 30, 2025, the company's portfolio includes **4,179 owned and/or managed stores** across **43 states** and Washington, D.C[122](index=122&type=chunk) - The portfolio consists of **2,005 wholly-owned stores**, **11 in consolidated joint ventures**, **414 in unconsolidated joint ventures**, and **1,749 stores** managed for third parties[122](index=122&type=chunk) - The top three states by total store count are **Florida (542)**, **Texas (537)**, and **California (421)**[125](index=125&type=chunk) [Results of Operations](index=33&type=section&id=RESULTS%20OF%20OPERATIONS) Revenue Analysis for the Six Months Ended June 30 (in thousands) | Revenue Source | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Property rental | $1,425,384 | $1,385,144 | $40,240 | 2.9% | | Tenant reinsurance | $173,284 | $165,052 | $8,232 | 5.0% | | Management fees and other income | $62,947 | $60,006 | $2,941 | 4.9% | | **Total revenues** | **$1,661,615** | **$1,610,202** | **$51,413** | **3.2%** | - The **$40.2 million** increase in property rental revenue for H1 2025 was primarily due to **$47.6 million** from acquisitions, partially offset by a **$10.7 million** decrease from dispositions[127](index=127&type=chunk) Expense Analysis for the Six Months Ended June 30 (in thousands) | Expense Category | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Property operations | $451,203 | $401,420 | $49,783 | 12.4% | | General and administrative | $90,926 | $83,623 | $7,303 | 8.7% | | Depreciation and amortization | $357,622 | $391,775 | ($34,153) | (8.7)% | | **Total expenses** | **$933,812** | **$914,954** | **$18,858** | **2.1%** | [Funds From Operations (FFO)](index=35&type=section&id=FUNDS%20FROM%20OPERATIONS) FFO Reconciliation (in thousands) | Description | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $520,606 | $398,984 | | Adjustments (Depreciation, Amortization, etc.) | $346,749 | $456,020 | | **FFO attributable to common stockholders and unit holders** | **$867,355** | **$855,004** | [Same-Store Results](index=36&type=section&id=SAME-STORE%20RESULTS) - The same-store pool consists of **1,829 wholly-owned, stabilized properties**[143](index=143&type=chunk) Same-Store Performance for the Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Total rental revenues | $1,325,379 | $1,323,413 | 0.1% | | Total operating expenses | $383,824 | $360,981 | 6.3% | | **Net operating income (NOI)** | **$941,555** | **$962,432** | **(2.2)%** | | Square foot occupancy (period end) | 94.6% | 94.0% | 0.6% | - The increase in same-store operating expenses was driven by a **17.5%** rise in property taxes for the six-month period[144](index=144&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) - As of June 30, 2025, the company had **$125.0 million** in cash and cash equivalents[149](index=149&type=chunk) Debt Profile as of June 30, 2025 | Metric | Value (USD) | | :--- | :--- | | Total face value of debt | $13,169,719,000 | | Total fixed-rate debt % | 77.6% | | Weighted average interest rate | 4.4% | - The company holds a **BBB+/Stable** rating from S&P and a **Baa2/Positive** rating from Moody's[153](index=153&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to interest rate risk, primarily through its variable-rate debt. As of June 30, 2025, approximately **$2.9 billion** of its **$13.2 billion** total debt was subject to variable rates. A hypothetical **100 basis point (1%)** change in the SOFR would impact annual earnings and cash flows by approximately **$29.4 million** - As of June 30, 2025, the company had approximately **$13.2 billion** in total debt, with **$2.9 billion** subject to variable interest rates[161](index=161&type=chunk) - A **100 basis point (1%)** increase or decrease in SOFR would change annual interest expense by approximately **$29.4 million**[161](index=161&type=chunk) [Controls and Procedures](index=41&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of June 30, 2025. There were no material changes to the internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[165](index=165&type=chunk) - No changes occurred during the most recent quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[166](index=166&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=42&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings and claims arising in the ordinary course of business. Management establishes accrued liabilities for losses that are both probable and reasonably estimable, but the ultimate outcomes are inherently unpredictable - The company is subject to various legal proceedings and claims from its ordinary course of business, with outcomes that cannot be determined with certainty[167](index=167&type=chunk) [Risk Factors](index=42&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have been made to the risk factors described in the Annual Report on Form 10-K for the year ended December 31, 2024[168](index=168&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) There were no unregistered sales of equity securities during the period - None[169](index=169&type=chunk) [Exhibits](index=43&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including various agreements, indentures, and certifications by the CEO and CFO - The report includes a comprehensive list of filed exhibits, such as the Equity Distribution Agreement, merger agreements, articles of incorporation, debt indentures, and executive certifications[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) ```

Financial Data and Key Metrics Changes - Same store occupancy reached 94.6%, up 60 basis points year over year and 120 basis points sequentially from the first quarter [7] - Same store revenue growth was flat in the quarter, but there was positive year over year rate growth for new customers for the first time since March 2022 [8][11] - Core FFO guidance for the full year is maintained at $8.15 per share, with same store revenue growth anticipated between negative 0.5% and positive 1% for the full year [11][18] Business Line Data and Key Metrics Changes - The company completed one acquisition for $12 million and bought out two joint venture partners' interests in 27 properties for $326 million [9] - The bridge loan program generated $158 million in new originations, while the third-party management program added 93 stores, expanding the managed portfolio to 1,749 stores [9][10] Market Data and Key Metrics Changes - The self-storage sector continues to show resilience, with geographic diversification helping to offset softer conditions in certain regions [10] - New customer rates improved year over year by over 2% in July, indicating positive trends [22] Company Strategy and Development Direction - The company is focused on balancing pricing and occupancy to maximize revenue while pursuing strategic growth to enhance long-term shareholder value [11] - A multichannel approach combining opportunistic acquisitions and capital-light activities is being employed to create value regardless of market conditions [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while near-term revenue growth remains muted, operational discipline and investment strategy position the company well to navigate current conditions [11] - The company is optimistic about gradually improving fundamentals and expects potential acceleration in revenue growth in the second half of the year, particularly in the fourth quarter [18] Other Important Information - Same store expenses increased by 8.6%, primarily due to higher property taxes in certain states [16] - The company maintains 89% of its debt at fixed rates, with a weighted average interest rate of 4.4% and an average maturity of 4.3 years [17] Q&A Session Summary Question: Update on street rates and occupancy trends - Occupancy remained flat at 94.6% in July, with new customer rates up over 2% year over year [22] Question: Factors affecting gradual rate improvement - It takes time for positive new customer rates to flow through to revenue, with a gradual build-up expected [24] Question: Impact of LSI portfolio on same store performance - The LSI portfolio is performing as expected, with rates improving faster than Extra Space rates [37] Question: Expectations for same store revenue growth - Same store revenue growth is expected to be slightly positive in the back half of the year, with potential acceleration in the fourth quarter [44] Question: Insights on property tax expenses - Property tax increases are expected to normalize in the second half of the year [51] Question: Demand and market health - Demand is steady, and the company is capturing a disproportionate share of the market, with occupancy levels indicating a healthy market [56] Question: Future of bridge loan products - Demand for bridge loans remains strong, with no imminent paybacks expected from preferred holders [62] Question: Disposition strategy for LSI assets - The company is disposing of 22 former LSI properties to optimize the portfolio [65] Question: Market performance in NYC and Chicago - NYC saw modestly negative same store revenue, while Chicago experienced acceleration in revenue progress [71] Question: Housing market impact on storage demand - A strong housing market would be beneficial but is not necessary for recovery [75] Question: Seasonal expectations for leasing - The company expects the second half of the year to align with prior expectations, maintaining higher occupancy levels [81] Question: Customer behavior and ECRI acceptance - Existing customers are staying longer, with bad debt below 2%, indicating a healthy customer base [83] Question: Competitive dynamics in acquisition market - The company remains active in evaluating acquisition opportunities but will only pursue deals that are accretive [105]

Financial Data and Key Metrics Changes - Same store occupancy reached 94.6%, up 60 basis points year over year and 120 basis points sequentially from the first quarter [4] - Flat same store revenue growth in the quarter, with positive year over year rate growth for new customers for the first time since March 2022 [4][11] - Core FFO guidance maintained at $8.15 per share, with same store revenue growth anticipated between negative 0.5% and positive 1% for the full year [7][13] Business Line Data and Key Metrics Changes - Completed one acquisition for $12 million and bought out two joint venture partners' interests in 27 properties for $326 million [5] - Bridge loan program generated $158 million in new originations, while third-party management program added 93 stores, expanding the managed portfolio to 1,749 stores [5][6] Market Data and Key Metrics Changes - Geographic diversification continues to benefit the portfolio, with growth markets offsetting softer conditions in regions affected by new supply or emergencies [6] - New customer rates improved year over year by over 2%, indicating positive trends in July [17] Company Strategy and Development Direction - The company is focused on balancing pricing and occupancy to maximize revenue while pursuing strategic growth to enhance long-term shareholder value [8] - A multichannel approach combining opportunistic acquisitions and capital-light activities is being employed to create value regardless of market conditions [6] Management's Comments on Operating Environment and Future Outlook - Management noted that while near-term revenue growth remains muted, operational discipline and investment strategy position the company well to navigate current conditions [8] - The company is optimistic about gradually improving fundamentals and expects potential acceleration in revenue growth in the second half of the year, particularly in the fourth quarter [13][31] Other Important Information - Same store expenses increased by 8.6%, primarily due to higher property taxes in certain states [12] - The company maintains a strong balance sheet with 89% of debt at fixed rates and a weighted average interest rate of 4.4% [12] Q&A Session Summary Question: Update on street rates and occupancy trends - Occupancy remained flat at 94.6% in July, with new customer rates up over 2% year over year [17] Question: Insights on net rental rate growth - Minor headwinds in LA, but the primary driver of net decrease is the move-out activity [21] Question: Comments on gradual progress and market performance - Positive trends in customer rates are expected to compound and improve revenue in the fourth quarter [19][25] Question: Performance of the LSI portfolio - The LSI portfolio is performing as expected, with rates improving faster than Extra Space rates [27] Question: Expectations for expenses and property taxes - Anticipated deceleration in expense growth in the second half of the year [39] Question: Demand and market health - Demand is steady, with occupancy levels indicating a healthy market despite challenges from new supply [41] Question: Insights on bridge loan products and repayments - Good demand for bridge loan products, with no imminent paybacks from preferred holders [47] Question: Competitive dynamics and acquisition strategy - The company remains active in evaluating acquisition opportunities but is disciplined regarding pricing [75] Question: Markets with easing supply headwinds - Markets like Portland, Seattle, Chicago, and Denver are seeing easing supply pressures, which is expected to improve revenue [81] Question: Third-party management program performance - Strong growth in the third-party management business, with new partners contributing to expansion [85] Question: Impact of AI on customer behavior - Increased use of AI in customer inquiries, leading to higher conversion rates on the website [71] Question: Future earnings growth expectations - Improvement in rate, moderation of vacates, and expiration of state emergencies are expected to aid recovery [109]

Core Insights - Extra Space Storage Inc. (EXR) reported second-quarter 2025 core funds from operations (FFO) per share of $2.05, missing the Zacks Consensus Estimate of $2.06, and reflecting a 0.5% decrease from the prior-year quarter [1][10] - Quarterly revenues reached $841.6 million, surpassing the Zacks Consensus Estimate of $835.8 million, marking a 3.8% year-over-year increase [2] - The company experienced high same-store expenses and interest expenses, which negatively impacted results despite revenue growth [1][10] Financial Performance - Same-store revenues remained mostly flat year over year at $665.6 million, while same-store operating expenses rose 8.6% to $191.4 million, leading to a 3.1% decrease in same-store net operating income (NOI) to $474.2 million [3] - Interest expenses increased by 6.6% to $146.1 million, exceeding the estimate of $143.8 million [4] - The company narrowed its 2025 core FFO forecast to a range of $8.05-$8.25, with the midpoint unchanged, based on expectations of negative growth in same-store revenues and an increase in same-store expenses [10][11] Portfolio Activity - During the April-June quarter, Extra Space Storage acquired one operating store for approximately $12.1 million and stakes in two joint venture properties for $326.4 million, gaining full ownership of 27 properties [5] - The company added 93 stores (74 stores net) to its third-party management platform, managing a total of 2,163 stores as of June 30, 2025 [6] Balance Sheet Position - As of June 30, 2025, Extra Space Storage had $125.0 million in cash and cash equivalents, an increase from $119.6 million as of March 31, 2025 [7] - The percentage of fixed-rate debt to total debt was 77.6%, with a combined weighted average interest rate of 4.4% and a weighted average maturity of around 4.3 years [7] Shareholder Actions - The company did not issue any shares under its at-the-market program during the second quarter and had $800 million available for issuance as of June 30, 2025 [8] - Extra Space Storage repurchased 68,585 shares of common stock for $8.6 million under its stock repurchase program, with an additional $491.4 million authorized for future buybacks [8]