Extra Space Storage(EXR) - 2025 Q3 - Quarterly Results

Financial Performance - Achieved net income attributable to common stockholders of $0.78 per diluted share, a decrease of 14.3% compared to the same period last year[5] - Net income attributable to common stockholders for Q3 2025 was $166.00 million, down 14.2% from $193.21 million in Q3 2024[40] - Basic earnings per share for Q3 2025 was $0.78, down from $0.91 in Q3 2024[40] - Estimated net income for the year ending December 31, 2025, ranges from $1,037,636,000 to $1,064,636,000[43] Funds from Operations (FFO) - Funds from operations (FFO) attributable to common stockholders was $2.01 per diluted share, with Core FFO at $2.08 per diluted share, reflecting a 0.5% increase year-over-year[5] - Core FFO for 2025 is estimated to range from $8.12 to $8.20 per share, compared to the prior estimate of $8.05 to $8.25[26] - Funds from operations (FFO) per share for the year ending December 31, 2025 is estimated to be between $7.84 and $7.92[42] Revenue and Operating Income - Same-store revenue decreased by 0.2% and same-store net operating income (NOI) decreased by 2.5% compared to the prior year[5] - Same-store net operating income for Q3 2025 was $477,245, a decrease of 2.5% compared to $489,387 in Q3 2024[1] - Total same-store revenues for the nine months ended September 30, 2025, were $1,999,361, reflecting a slight increase of 0.0% from $1,998,764 in the same period of 2024[1] - Total same-store net operating income is estimated between $1,887,000,000 and $1,904,000,000[43] - Same-store rental revenues are projected to be between $2,659,000,000 and $2,672,000,000[43] Expenses - Total same-store operating expenses for the nine months ended September 30, 2025, were $580,562, an increase of 6.1% from $546,946 in the same period of 2024[1] - Same-store operating expenses are expected to be between $768,000,000 and $772,000,000[43] - Interest expense is projected at approximately $583,000,000 to $585,000,000[43] - General and administrative expenses are estimated to be between $184,000,000 and $185,000,000[43] Acquisitions and Investments - Acquired one operating store for $12.8 million and partnered in acquiring another for approximately $14.2 million, with the company's investment being $1.4 million[5] - Acquired 14 operating stores for a total cost of $178.7 million and completed several strategic property acquisitions[7] - The company plans to maintain acquisitions at $900 million for 2025, consistent with the previous estimate[26] Debt and Financing - The percentage of fixed-rate debt to total debt was 83.8% as of September 30, 2025, with a combined weighted average interest rate of 4.4%[24] - The company completed a public bond offering in August 2025, issuing $800.0 million in unsecured senior notes due 2033[21] - The company increased its revolving line of credit capacity to $3.0 billion, up from $2.0 billion, and extended the maturity to August 2029[22] - Unsecured senior notes increased to $9.42 billion in Q3 2025, up from $7.76 billion in Q4 2024[39] Market and Operational Metrics - Ending same-store occupancy was reported at 93.7% as of September 30, 2025, slightly up from 93.6% a year earlier[5] - Added 95 stores (62 stores net) to the third-party management platform, bringing the total managed stores to 2,222[5] - The company managed a total of 2,222 stores as of September 30, 2025, including 1,811 stores for third-party owners[19] - The company operates 4,238 self-storage stores across 43 states and Washington, D.C., comprising approximately 2.9 million units and 326.9 million square feet of rentable space[36] Dividends - Paid a quarterly dividend of $1.62 per share[5] - The company paid a third quarter common stock dividend of $1.62 per share on September 30, 2025[25] - Cash dividends paid per common share remained stable at $1.62 for both Q3 2025 and Q3 2024[40] Guidance and Projections - Same-store revenue growth is projected between (0.25)% and 0.25%, an improvement from the previous range of (0.50)% to 1.00%[26] - Same-store expense growth is expected to be between 4.50% and 5.00%, consistent with the prior estimate of 4.00% to 5.00%[26] - Same-store NOI growth is forecasted to range from (2.25)% to (1.25)%, compared to the previous estimate of (2.75)% to 0.00%[26] - Net tenant reinsurance income is projected at $281 million to $283 million, up from $277 million to $280 million in the prior estimate[26] - Management fees and other income are expected to be between $127 million and $128 million, slightly higher than the previous range of $125.5 million to $126.5 million[26] - Interest income is estimated to be between $162 million and $163 million, compared to the prior estimate of $159.5 million to $161 million[26] - Bridge loans outstanding are expected to remain at $1.45 billion, unchanged from the prior estimate[26]