Extra Space Storage to Report Q3 Earnings: What to Expect?

Core Insights - Extra Space Storage (EXR) is expected to report a year-over-year increase in revenues for Q3 2025, with projected revenues of $864.80 million, reflecting a 4.85% rise from $825.00 million in the previous year [5][9] - The company is likely to experience a slight decline in funds from operations (FFO) per share, with the Zacks Consensus Estimate remaining at $2.06, indicating a 0.48% decrease compared to the prior year [7][9] Financial Performance - In the last reported quarter, EXR's FFO per share was $2.05, slightly below the Zacks Consensus Estimate of $2.06, despite a year-over-year revenue increase driven by higher occupancy [2][3] - The company has a mixed performance history over the last four quarters, beating estimates three times with an average surprise of 1.01% [3] Market Dynamics - The self-storage industry is characterized as need-based and resilient to economic downturns, benefiting from favorable demographic trends [4] - EXR operates in a highly fragmented market with intense competition, which may limit its ability to raise rents and could impact earnings due to increased discounting [6][9] Revenue Projections - The Zacks Consensus Estimate for property rental revenues is $732.32 million, up from $710.87 million year-over-year, while tenant insurance revenues are projected to rise to $87.99 million from $84.05 million [5][6] - Management fees and other revenues are expected to increase to $31.59 million from $29.88 million in the same period last year [5] Competitive Position - EXR's strong brand value, diversified portfolio, and strategic store expansions through acquisitions and partnerships are expected to contribute positively to revenue growth [3] - Despite these strengths, high-interest expenses are anticipated to negatively affect the company's performance, with a projected 2.5% year-over-year increase in interest expenses [6][7] Earnings Prediction - The company's Earnings ESP is +0.23%, and it holds a Zacks Rank of 3 (Hold), indicating a potential for a positive surprise in FFO this quarter [8]