Extra Space Storage(US:EXR) ZACKSยท2025-04-30 17:15Core Insights - Extra Space Storage Inc. (EXR) reported first-quarter 2025 core funds from operations (FFO) per share of $2.00, exceeding the Zacks Consensus Estimate of $1.96, marking a 2% increase from the prior-year quarter [1] - Quarterly revenues reached $820 million, slightly below the Zacks Consensus Estimate of $823.4 million, but reflecting a year-over-year increase of 2.6% [1] Financial Performance - Same-store revenues increased by 0.3% year over year to $659.7 million, driven by a rise in net rental income, partially offset by other income [3] - Same-store operating expenses rose 4.2% year over year to $192.4 million, influenced by higher property operating expenses, repairs and maintenance, and property taxes [3] - Same-store net operating income (NOI) decreased by 1.2% year over year to $467.3 million [3] Occupancy and Interest Expenses - Same-store square-foot occupancy improved by 100 basis points year over year to 93.4% as of March 31, 2025, slightly below the estimate of 93.6% [4] - Interest expenses increased to $142.4 million from $132.9 million a year ago, surpassing the estimate of $139.7 million [4] Portfolio Activity - During the first quarter, Extra Space Storage acquired 12 operating stores for approximately $153.8 million and exchanged ownership interest in 17 properties from an existing joint venture [5] - The company added 113 stores (net increase of 100) to its third-party management platform, managing a total of 2,114 stores as of March 31, 2025 [6] Balance Sheet Position - As of March 31, 2025, Extra Space Storage had $119.6 million in cash and cash equivalents, down from $138.2 million at the end of 2024 [7] - The percentage of fixed-rate debt to total debt was 78.8%, with a combined weighted average interest rate of 4.4% and a weighted average maturity of around 4.5 years [7] Shareholder Actions - The company did not issue any shares under its at-the-market program during the first quarter and had $800 million available for issuance as of March 31, 2025 [8] - Subsequent to the quarter end, EXR repurchased 68,585 shares of common stock for $8.6 million at an average price of $125.60 per share [9] 2025 Guidance - Extra Space Storage reaffirmed its 2025 core FFO per share guidance in the range of $8.00 to $8.30, with the Zacks Consensus Estimate of $8.16 falling within this range [10] - The full-year guidance is based on an expected decline of 0.75% to 1.25% in same-store revenues and a 3.75% to 5.25% increase in same-store expenses [10]