Core Insights - Extra Space Storage Inc. (EXR) reported a third-quarter 2024 core funds from operations (FFO) per share of $2.07, exceeding the Zacks Consensus Estimate of $2.03, marking a 2.5% year-over-year increase [1] - Quarterly revenues reached $824.8 million, surpassing the Zacks Consensus Estimate of $821.4 million, and reflecting a 10.3% year-over-year growth [2] - The company experienced a decline in same-store net operating income (NOI) and increased interest expenses during the quarter, which negatively impacted overall performance [1][3] Financial Performance - Same-store revenues decreased by 0.3% year over year to $424 million in Q3, while same-store square-foot occupancy increased by 60 basis points to 94.3% as of September 30, 2024 [2] - Same-store operating expenses rose by 1.9% year over year to $109.8 million, driven by higher marketing, insurance, payroll, and property taxes [3] - Interest expenses increased by 16.2% to $142.9 million compared to $122.9 million a year ago [3] Portfolio Activity - During the April-June quarter, Extra Space Storage acquired ten operating stores and one newly constructed store for a total cost of $163.9 million [4] - The company, in partnership with a joint venture, acquired five properties and completed two developments for a total cost of $114.6 million, with an investment of $30.7 million [4] - Extra Space Storage added 63 stores to its third-party management platform, managing a total of 1,921 stores as of September 30, 2024 [5] Balance Sheet - As of September 30, 2024, Extra Space Storage had nearly $88.9 million in cash and cash equivalents, an increase from $77 million as of June 30, 2024 [6] - The percentage of fixed-rate debt to total debt was 78.3%, with a combined weighted average interest rate of 4.5% and a weighted average maturity of approximately 4.7 years [6] 2024 Guidance - The company projects its 2024 core FFO per share to be in the range of $8.00-$8.15, compared to the previous outlook of $7.95-$8.15, with the Zacks Consensus Estimate at $8.08 [7] - The full-year guidance assumes a negative growth of 0.25% to 0.50% in same-store revenues and a 4.25%-5.25% increase in same-store expenses, with same-store NOI projected to decline between negative 2.25% and negative 0.50% [7]
Extra Space Storage Q3 FFO Tops Estimates, Occupancy Rises