Extra Space Storage Inc. Reports 2024 Fourth Quarter and Year-End Results

Core Insights - Extra Space Storage Inc. reported strong operating results for the year ended December 31, 2024, despite a challenging macro environment [4][6] - The company achieved a net income attributable to common stockholders of $1.24 per diluted share, a 21.6% increase year-over-year [6] - Core FFO per share was $2.03, reflecting a 0.5% increase compared to the previous year [6] Financial Performance - For the three months ended December 31, 2024, the company reported net income of $262.5 million, compared to $216.1 million in the same period of 2023 [5] - The company’s FFO for the year was $7.57 per diluted share, with Core FFO at $8.12 per diluted share, a 0.2% increase from the prior year [6] - Same-store revenue decreased by 0.4% while same-store net operating income (NOI) decreased by 3.5% year-over-year [6][9] Operational Highlights - The company maintained a same-store occupancy rate of 93.7% as of December 31, 2024, up from 92.5% a year earlier [6][9] - Extra Space Storage acquired 38 operating stores for approximately $359.7 million and increased ownership interest in two joint ventures to 49.0% for $251.2 million [6][12] - The company added 130 stores to its third-party management platform, managing a total of 2,035 stores as of December 31, 2024 [6][18] Investment Activities - The company originated $224.4 million in mortgage and mezzanine bridge loans during the quarter, with outstanding bridge loans totaling approximately $1.2 billion at year-end [17] - Extra Space Storage initiated an unsecured commercial paper program with a total capacity of $1.0 billion, having $500 million in outstanding issuances [21] - The company invested $100 million in convertible preferred stock of Strategic Storage Growth Trust III, Inc., with an 8.85% annual dividend rate [15] Balance Sheet and Debt Management - As of December 31, 2024, the company had total assets of approximately $28.8 billion, up from $27.5 billion a year earlier [38] - The percentage of fixed-rate debt to total debt was 75.8%, with a combined weighted average interest rate of 4.4% [22] - The company did not issue shares under its ATM program during the quarter and had $800 million available for issuance [19]