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]

Core Insights - Extra Space Storage (EXR) reported revenue of $841.62 million for the quarter ended June 2025, reflecting a year-over-year increase of 3.8% [1] - Earnings per share (EPS) for the quarter was $2.05, significantly higher than the $0.88 reported in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $835.79 million by 0.7%, while the EPS fell short of the consensus estimate of $2.06 by 0.49% [1] Financial Performance Metrics - Same-store square foot occupancy was reported at 94.6%, slightly above the average estimate of 94.4% [4] - Property rental revenues reached $721 million, surpassing the estimated $716.45 million, marking a 3.4% increase year-over-year [4] - Management fees and other income totaled $32.04 million, exceeding the average estimate of $31.52 million, representing a 7.3% year-over-year increase [4] - Tenant reinsurance revenues were reported at $88.57 million, above the estimated $86.35 million, reflecting a 5.8% increase compared to the previous year [4] - Same-store rental revenues significantly increased to $665.56 million, compared to the average estimate of $531.07 million, indicating a remarkable 58.8% year-over-year growth [4] - Net income per common share (diluted) was $1.18, slightly below the average estimate of $1.21 [4] Stock Performance - Over the past month, shares of Extra Space Storage have returned +0.9%, while the Zacks S&P 500 composite has increased by +3.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - Extra Space Storage (EXR) reported quarterly funds from operations (FFO) of $2.05 per share, slightly missing the Zacks Consensus Estimate of $2.06 per share, and down from $2.06 per share a year ago [1][2] - The company posted revenues of $841.62 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.70%, compared to $810.66 million in the same quarter last year [3] Market Comparison - Extra Space Storage shares have increased by approximately 1.5% since the beginning of the year, while the S&P 500 has gained 8.3% [4] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $2.08 on revenues of $848.1 million, and for the current fiscal year, it is $8.18 on revenues of $3.32 billion [8] - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook for the industry [9] Estimate Revisions - The estimate revisions trend for Extra Space Storage was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7]

[Q2 2025 Financial Highlights](index=1&type=section&id=Highlights%20for%20the%20three%20months%20ended%20June%2030%2C%202025) In the second quarter of 2025, Extra Space Storage reported a 34.1% increase in net income per diluted share to $1.18, but a 0.5% decrease in Core FFO per diluted share to $2.05. Same-store revenue was flat while NOI decreased by 3.1%. The company was active in acquisitions, buying out JV partners for $326.4 million, originating $157.8 million in loans, and expanding its third-party management platform Q2 2025 Key Performance Indicators (vs. Q2 2024) | Metric | Value | Change vs. Prior Year | | :--- | :--- | :--- | | Net Income per Diluted Share | $1.18 | 34.1% | | Core FFO per Diluted Share | $2.05 | (0.5%) | | Same-Store Revenue | Flat | 0.0% | | Same-Store NOI | Decrease | (3.1%) | | Ending Same-Store Occupancy | 94.6% | +60 bps | - Acquired the interest of joint venture partners in two partnerships for **$326.4 million**, gaining full ownership of 27 properties[5](index=5&type=chunk) - Originated **$157.8 million** in mortgage and mezzanine bridge loans[5](index=5&type=chunk) - Expanded the third-party management platform by a net of 74 stores, reaching a total of **2,163 managed stores**[5](index=5&type=chunk) - Paid a quarterly dividend of **$1.62 per share**[5](index=5&type=chunk) [H1 2025 Financial Highlights](index=1&type=section&id=Highlights%20for%20the%20six%20months%20ended%20June%2030%2C%202025) For the first six months of 2025, net income per diluted share rose 30.3% to $2.45, and Core FFO per diluted share increased slightly by 0.7% to $4.05. Same-store revenue grew 0.1%, while NOI declined by 2.2%. The company acquired 13 operating stores for $165.9 million and originated $211.0 million in loans during this period H1 2025 Key Performance Indicators (vs. H1 2024) | Metric | Value | Change vs. Prior Year | | :--- | :--- | :--- | | Net Income per Diluted Share | $2.45 | 30.3% | | Core FFO per Diluted Share | $4.05 | 0.7% | | Same-Store Revenue | Increase | 0.1% | | Same-Store NOI | Decrease | (2.2%) | - Acquired **13 operating stores** for a total cost of **$165.9 million**[7](index=7&type=chunk) - Originated **$211.0 million** in mortgage and mezzanine bridge loans and sold **$34.7 million**[7](index=7&type=chunk) - Added a net of **174 stores** to the third-party management platform[7](index=7&type=chunk) [CEO Commentary](index=3&type=section&id=CEO%20Commentary) CEO Joe Margolis highlighted solid second-quarter results, attributing them to historically high occupancy, stable existing customer behavior, and improving new customer rates. He noted significant activity in third-party management, bridge loans, and JV partner buyouts. The company maintained its full-year FFO and same-store guidance, citing gradually improving storage fundamentals - Performance was driven by historically high occupancy, steady existing customer behavior, and gradually improving new customer rates[6](index=6&type=chunk) - The company has maintained its annual FFO and same-store guidance at the midpoints[6](index=6&type=chunk) [Operating and Financial Review](index=4&type=section&id=Operating%20and%20Financial%20Review) This section provides a detailed review of the company's financial performance, including FFO, same-store results, investment activities, and capital structure [Funds From Operations (FFO)](index=4&type=section&id=FFO%20Per%20Share) For Q2 2025, FFO per share was $1.98, flat compared to Q2 2024. Core FFO per share was $2.05, a slight decrease from $2.06 in the prior-year period. For the six-month period, FFO per share increased to $3.91 from $3.85, and Core FFO per share rose to $4.05 from $4.02 year-over-year FFO and Core FFO Reconciliation (per diluted share) | Period | Net Income | FFO | Core FFO | | :--- | :--- | :--- | :--- | | **Q2 2025** | $1.18 | $1.98 | $2.05 | | **Q2 2024** | $0.88 | $1.98 | $2.06 | | **H1 2025** | $2.45 | $3.91 | $4.05 | | **H1 2024** | $1.88 | $3.85 | $4.02 | [Same-Store Performance](index=5&type=section&id=Operating%20Results%20and%20Same-Store%20Performance) In Q2 2025, same-store NOI decreased by 3.1% year-over-year, driven by an 8.6% increase in operating expenses, primarily a 19.2% rise in property taxes. Same-store revenue remained flat. Quarter-end occupancy for the 1,829-store pool increased to 94.6% from 94.0% in the prior year Q2 2025 Same-Store Performance vs. Q2 2024 | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $665.6 | $665.8 | 0.0% | | Operating Expenses | $191.4 | $176.3 | 8.6% | | Net Operating Income | $474.2 | $489.5 | (3.1%) | - Property taxes for the same-store pool increased **19.2% in Q2** and **17.5% in H1 2025**, mainly due to reassessments in California, Georgia, Illinois, and Texas following the Life Storage merger[11](index=11&type=chunk)[13](index=13&type=chunk) - The same-store pool was updated on January 1, 2025, to include **1,829 stores**, up from 1,071[12](index=12&type=chunk) [Investment and Management Activity](index=6&type=section&id=Investment%20and%20Property%20Management%20Activity) Through June 30, 2025, the company's total investment reached $533.7 million, including acquiring 40 wholly-owned stores for $492.3 million (which includes a $326.4 million JV buyout) and investing $41.4 million in 5 JV properties. The company originated $157.8 million in bridge loans in Q2, with an outstanding balance of $1.5 billion. As the largest US self-storage manager, it oversees 2,163 properties Investment Activity through June 30, 2025 | Investment Type | Stores | EXR Investment (million USD) | | :--- | :--- | :--- | | Wholly-Owned (Acquisitions & JV Buyouts) | 40 | $492.3 | | Joint Venture | 5 | $41.4 | | **Total EXR Investment** | **45** | **$533.7** | - In April 2025, the company was repaid its **$200.0 million** convertible preferred stock investment in SmartStop Self Storage REIT, Inc[18](index=18&type=chunk) - Outstanding bridge loan balance was approximately **$1.5 billion** at quarter-end[20](index=20&type=chunk) - As of June 30, 2025, the company managed **1,749 third-party stores** and **414 JV stores**, totaling **2,163 managed properties**[21](index=21&type=chunk) [Balance Sheet and Capital Structure](index=6&type=section&id=Balance%20Sheet) As of June 30, 2025, the company had $800.0 million available under its ATM program and repurchased $8.6 million of common stock in Q2. Total debt had a combined weighted average interest rate of 4.4% with a maturity of 4.3 years. The company maintained a strong fixed-rate debt profile, with 77.6% of total debt fixed (89.0% net of variable rate receivables) - During Q2 2025, the company repurchased **68,585 shares** for **$8.6 million** at an average price of **$125.60 per share**[23](index=23&type=chunk) - The company had **$700.0 million** in outstanding issuances under its **$1.0 billion** commercial paper program[23](index=23&type=chunk) Debt Profile as of June 30, 2025 | Metric | Value | | :--- | :--- | | Fixed-Rate Debt to Total Debt | 77.6% | | Effective Fixed-Rate Debt to Total Debt | 89.0% | | Weighted Average Interest Rate (Combined) | 4.4% | | Weighted Average Maturity | 4.3 years | [Dividends](index=7&type=section&id=Dividends) The company announced and paid a second quarter common stock dividend of $1.62 per share on June 30, 2025, to stockholders of record as of June 16, 2025 - A Q2 2025 dividend of **$1.62 per common share** was paid on June 30, 2025[25](index=25&type=chunk) [2025 Full-Year Outlook](index=8&type=section&id=Outlook) This section outlines the company's financial projections for the full year 2025, including guidance for Core FFO per share, same-store revenue, and NOI growth [2025 Guidance](index=8&type=section&id=2025%20Guidance) The company maintained its full-year 2025 guidance midpoints. The Core FFO per share range is projected to be $8.05 to $8.25. Same-store revenue growth is expected to be between -0.50% and 1.00%, with same-store NOI growth forecasted between -2.75% and 0.00%. The guidance reflects updated assumptions for interest income and expense, and equity in earnings from real estate ventures Full-Year 2025 Guidance (as of July 30, 2025) | Metric | Low | High | | :--- | :--- | :--- | | **Core FFO per share** | **$8.05** | **$8.25** | | Same-store revenue growth | (0.50)% | 1.00% | | Same-store expense growth | 4.00% | 5.00% | | **Same-store NOI growth** | **(2.75)%** | **0.00%** | | Acquisitions | $600.0M | $600.0M | | Bridge loans outstanding (avg) | $1.475B | $1.475B | - The guidance for Core FFO was slightly narrowed to **$8.05-$8.25** from the previous $8.00-$8.30, keeping the midpoint stable[26](index=26&type=chunk) - Guidance for Equity in earnings of real estate ventures was adjusted downward to **$70.5 million-$71.5 million**, reflecting the impact of JV buyouts[26](index=26&type=chunk) [Appendix](index=9&type=section&id=Appendix) This section provides supplementary information, including detailed financial statements, definitions of key non-GAAP metrics, forward-looking statements, and conference call details [Financial Statements](index=12&type=section&id=Financial%20Statements) This section contains the unaudited condensed consolidated financial statements for the periods ended June 30, 2025, including the Balance Sheets, Statement of Operations, and various reconciliations of GAAP metrics to non-GAAP measures like FFO and Same-Store NOI [Condensed Consolidated Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company reported total assets of $29.37 billion, an increase from $28.85 billion at year-end 2024. Total liabilities increased to $14.69 billion from $13.99 billion over the same period, primarily due to a rise in unsecured senior notes Balance Sheet Summary (in billions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $29.37 | $28.85 | | Total Liabilities | $14.69 | $13.99 | | Total Stockholders' Equity | $13.79 | $13.95 | [Consolidated Statement of Operations](index=13&type=section&id=Consolidated%20Statement%20of%20Operations) For the three months ended June 30, 2025, total revenues were $841.6 million, up from $810.7 million in the prior-year period. Net income attributable to common stockholders increased to $249.7 million ($1.18 per share) from $185.9 million ($0.88 per share) in Q2 2024 Statement of Operations Summary - Three Months Ended June 30 | Account (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | $841.6 | $810.7 | | Income from Operations | $374.0 | $304.8 | | Net Income Attributable to Common Stockholders | $249.7 | $185.9 | [Reconciliations](index=14&type=section&id=Reconciliations) This sub-section provides detailed reconciliations of GAAP Net Income to non-GAAP measures. It includes the reconciliation to Same-Store Net Operating Income for historical periods and for the full-year 2025 estimate, as well as the reconciliation of estimated GAAP EPS to estimated Core FFO per share for the full year - Provides a reconciliation of GAAP Net Income to Total Same-Store Net Operating Income for Q2 and H1 2025[40](index=40&type=chunk) - Includes a reconciliation of the estimated range for GAAP EPS to the estimated range for FFO and Core FFO per share for the full year 2025[41](index=41&type=chunk) - Details the reconciliation of estimated GAAP Net Income to estimated Same-Store NOI for the full year 2025[42](index=42&type=chunk) [Definitions](index=10&type=section&id=Definitions) This section defines key non-GAAP metrics used throughout the report. It explains the calculation and significance of Funds from Operations (FFO) and Core FFO, as well as the criteria for the company's Same-Store pool [Definition of FFO](index=10&type=section&id=Definition%20of%20FFO) FFO is defined according to NAREIT standards as net income excluding gains/losses on property sales and real estate depreciation. The company also presents Core FFO, which further adjusts for non-core items and certain costs from the Life Storage Merger, to provide what management believes is a clearer indicator of operating performance - FFO is defined per NAREIT standards, excluding gains/losses on sales of operating stores and real estate-related depreciation and amortization[32](index=32&type=chunk) - Core FFO is a company-specific metric that further excludes non-core revenues/expenses and certain non-cash costs related to the Life Storage Merger[33](index=33&type=chunk) [Definition of Same-Store](index=11&type=section&id=Definition%20of%20Same-Store) The same-store pool consists of 1,829 wholly-owned and operated stores that were stabilized by the beginning of the earliest year presented. A store is considered stabilized after being open for three years or maintaining at least 80% average occupancy for one year. This metric is intended to show performance without the effects of acquisitions or non-stabilized assets - The same-store pool includes **1,829 stores** that have been stabilized for at least three years or have held over **80% occupancy** for a year[35](index=35&type=chunk) - No assets acquired from Life Storage have been included in the same-store pool[35](index=35&type=chunk) [Forward-Looking Statements](index=9&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement, warning that the report includes forward-looking statements regarding outlook, acquisitions, and future performance. It cautions that actual results may differ materially due to various risks and uncertainties, such as economic conditions, competition, and interest rate changes, as detailed in the company's Form 10-K and 10-Q filings - The report contains forward-looking statements concerning plans, outlook, and future performance, which are not guarantees of future results[30](index=30&type=chunk) - Key risks include adverse economic changes, competition, failure to close pending acquisitions, interest rate fluctuations, and reliance on information technologies[30](index=30&type=chunk)[34](index=34&type=chunk) [Conference Call Information](index=9&type=section&id=Conference%20Call%20Information) The company will host a conference call to discuss these financial results on Thursday, July 31, 2025, at 1:00 p.m. Eastern Time. Details for pre-registering and accessing the live webcast are provided - A conference call is scheduled for **1:00 p.m. ET** on **July 31, 2025**, to discuss the results[28](index=28&type=chunk)

SALT LAKE CITY, July 30, 2025 /PRNewswire/ -- Extra Space Storage Inc. (NYSE: EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a constituent of the S&P 500, announced operating results for the three and six months ended June 30, 2025. Highlights for the three months ended June 30, 2025: Highlights for the six months ended June 30, 2025: Joe Margolis, CEO of the Company, stated: "We delivered solid second quarter results, driven by historically high occup ...

Core Viewpoint - Analysts expect Extra Space Storage (EXR) to report quarterly earnings of $2.06 per share, indicating no change from the previous year, with revenues projected at $835.79 million, reflecting a 3.1% increase year-over-year [1]. Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2]. Key Metrics Projections - Analysts project 'Property rental' revenue to reach $716.45 million, a 2.8% increase from the prior year [4]. - 'Management and franchise fees' are expected to be $31.52 million, indicating a 5.6% year-over-year increase [4]. - 'Tenant insurance' revenue is estimated at $86.35 million, reflecting a 3.2% increase from the previous year [4]. - 'Same-store rental revenue' is projected at $531.07 million, showing a significant 26.7% increase year-over-year [5]. - 'Same-store square foot occupancy' is expected to reach 94.4%, slightly up from 94.3% in the previous year [5]. - 'Depreciation and amortization' is estimated at $178.73 million [6]. Stock Performance - Extra Space Storage shares have increased by 3.4% over the past month, compared to a 4.9% increase in the Zacks S&P 500 composite, with a Zacks Rank of 3 (Hold), indicating expected performance in line with the overall market [7].

Core Insights - Extra Space Storage (EXR) is expected to report second-quarter 2025 results on July 30, with anticipated year-over-year revenue growth and stable funds from operations (FFO) per share [1][8] Financial Performance - In the last reported quarter, EXR achieved a core FFO per share surprise of 2.04%, driven by increased revenues from higher occupancy, although high interest expenses negatively impacted results [2][5] - The Zacks Consensus Estimate for quarterly property rental revenues is $716.45 million, up from $697.1 million year-over-year, while tenant insurance revenues are projected to rise to $86.35 million from $83.71 million [4][5] - Total revenues for the second quarter are estimated to increase by 3.1% year-over-year, attributed to brand strength and acquisitions [5][8] Market Dynamics - The self-storage industry is characterized by its need-based and recession-resilient nature, with low capital expenditure requirements and high operating margins, contributing to EXR's revenue growth [3] - EXR operates in a highly fragmented market with intense competition, which affects its ability to raise rents and may impact earnings due to increased discounting [5][8] Interest Expenses and Projections - Interest expenses are projected to rise by 4.9% year-over-year in the second quarter, which is expected to weigh on FFO per share, projected to remain unchanged at $2.06 [6][8] - The company's current Earnings ESP is 0.00%, indicating uncertainty in predicting a surprise in core FFO per share for the upcoming quarter [7][9]

Company Overview - Extra Space Storage(EXR) is a member of the S&P 500 since 2015[7] - The company has 2.6 million storage units and 3,793 properties across 42 states[7] - The company has 289 million+ square feet of rentable space with 94% average occupancy in 2023[7] - The company merged with Life Storage in 2023 for $15 billion[7,11] Financial Performance & Balance Sheet - The company's net debt to EBITDA is 4.9x[7] - The company's equity market capitalization is $32.6 billion[7] - The company achieved a 336.7% 10-year total shareholder return[7] - Q1 2024 same-store revenue growth was 1.0%[7] - The company's enterprise value increased from $15.9 billion in 2017 to $46.9 billion in 2023[68] Strategic Advantages - The company has a diversified portfolio with 3,793 properties, including 1,912 wholly-owned/consolidated (51%), 472 joint venture (13%), and 1,409 managed (36%)[38] - The company estimates total 2024 synergies from the Life Storage merger to be $36 million from LSI property revenue, $16 million from tenant insurance, and $46 million from corporate overhead synergies[109]