SALT LAKE CITY, Aug. 21, 2025 /PRNewswire/ -- Extra Space Storage Inc. (the "Company") (NYSE: EXR) announced today that the Company's board of directors has declared a third quarter 2025 dividend of $1.62 per share on the common stock of the Company.  The dividend is payable on September 30, 2025, to stockholders of record at the close of business on September 15, 2025. About Extra Space Storage Inc.Extra Space Storage Inc., headquartered in Salt Lake City, is a fully integrated, self-administered and self- ...

Core Viewpoint - Extra Space Storage Inc. has announced a public offering of $800 million in senior notes with a 4.950% interest rate, maturing in 2033, to support its financial operations and potential acquisitions [1][3]. Group 1: Offering Details - The public offering is priced at 99.739% of the principal amount and is expected to close around August 8, 2025, pending customary closing conditions [2][1]. - The senior notes will be fully and unconditionally guaranteed by Extra Space and certain subsidiaries [2]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized to repay outstanding amounts under lines of credit and commercial paper programs, as well as for general corporate and working capital purposes, including potential acquisitions [3]. Group 3: Company Overview - Extra Space Storage Inc. is a self-administered and self-managed real estate investment trust, a member of the S&P 500, operating 4,179 self-storage stores across 43 states and Washington, D.C., with approximately 2.9 million units and 321.5 million square feet of rentable space [6].

Financial Data and Key Metrics Changes - The company reported a solid second quarter with key performance indicators exceeding expectations, with same store revenue growth down 0.5% year-over-year and average occupancy at 90.6%, down 80 basis points [13][14] - Funds from Operations (FFO) per share was reported at $0.65, at the high end of guidance [15] - Net debt to EBITDA ratio remained strong at 4.7 times [16] Business Line Data and Key Metrics Changes - Same store operating expenses grew by 1.2% year-over-year, indicating effective expense control [14] - The company added 30 stores to its third-party management platform, bringing the total to 873 stores [15] Market Data and Key Metrics Changes - Urban markets along the Acela Corridor and stores in Chicago were top performers, while Sunbelt markets, particularly Florida and Arizona, lagged due to reliance on housing mobility [10][11] - The New York MSA showed solid sequential acceleration in net rental income, with boroughs leading the way due to reduced new supply [11][24] Company Strategy and Development Direction - The company expects occupancy and move-in rates to approach parity by the end of the year, with a focus on stabilizing operational trends [11] - The management is cautious about the potential volatility in consumer behavior due to ongoing governmental and monetary policy decisions [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued improvement in operational trends through 2025, setting a positive outlook for 2026 [11][12] - The company acknowledged risks related to the housing market and the impact of new supply on performance [7][11] Other Important Information - The company is actively monitoring the market for long-term unsecured debt issuance as it prepares for the maturity of $300 million in senior unsecured notes [16] - The management highlighted the importance of expense efficiencies, particularly in insurance and property tax appeals, contributing to improved guidance [18][75] Q&A Session Summary Question: Revenue guidance adjustments - Management adjusted the top end of revenue guidance down due to lower expected demand levels, while raising the midpoint [20][21] Question: New York market performance - Positive trends in net rental income were noted, with some deceleration in growth, particularly in Northern New Jersey [22][24] Question: Customer turnover and recovery pace - The 5% monthly customer turnover impacts the pace of recovery, with improvements expected to take time to reflect in revenue [29][31] Question: Transaction market activity - The transaction market is seeing increased deal volume, but the company remains cautious about pricing and risk-adjusted returns [33][36] Question: Operating trends in Sunbelt markets - Sunbelt markets are expected to recover more slowly due to high supply levels, despite some positive trends emerging [40][42] Question: Impact of economic uncertainty on revenue management - The company will continue to monitor existing customer health and adjust strategies as needed, but remains optimistic about demand [43][44] Question: Expected deceleration in same store revenue - The deceleration is attributed to timing issues related to fee adjustments and the flow-through of rate increases [48][49] Question: Visibility on third-party management churn - Limited visibility on churn from third-party management, but the company is onboarding new stores to mitigate losses [50][52] Question: Construction starts and supply dynamics - No significant increase in construction starts is expected due to high costs and challenges in the market [58][60] Question: Update on Texas JV performance - The integration of the Texas JV portfolio is performing as expected, complementing existing assets [63][64] Question: Same store expense guidance - Expected acceleration in same store expenses is due to timing and inflationary pressures, with some favorable insurance renewals [72][75] Question: Customer acquisition and AI impact - Most traffic still comes from traditional searches, with AI tools not yet significantly impacting customer acquisition [77][78] Question: Credit rating comparison - The company acknowledges the disconnect in credit ratings compared to peers and is aware of the implications for investors [86][89]

Financial Data and Key Metrics Changes - The company reported a solid second quarter with key performance indicators exceeding expectations, with a trough to peak occupancy growth of 190 basis points compared to 180 basis points last year [11] - Net effective rates for new customers increased by 28.3% compared to 15% in 2024, indicating constructive rate trends [11] - Same store revenue growth was down 0.5% year over year, with average occupancy for the same store portfolio down 80 basis points to 90.6% during the quarter [14][15] - FFO per share as adjusted was reported at $0.65, at the high end of guidance [16] Business Line Data and Key Metrics Changes - The company added 30 stores to its third-party management platform, bringing the total to 873 stores at quarter end [16] - Same store operating expenses grew by 1.2% over last year, reflecting strong expense controls [15] Market Data and Key Metrics Changes - Urban markets along the Acela Corridor and stores in Chicago continued to perform well, while markets in the Sunbelt, particularly Florida and Arizona, lagged due to reliance on housing mobility [12] - The New York MSA showed solid sequential acceleration in net rental income, with boroughs leading the way due to reduced new supply and strong consumer demand [13] Company Strategy and Development Direction - The company expects occupancy and move-in rates to approach parity by the end of the year, with a focus on improving operational trends through 2025 [13] - The company is evaluating acquisition opportunities but has not found compelling risk-adjusted returns in the current market [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged risks of volatility due to ongoing governmental and monetary policy decisions but expressed confidence in continued improvement in operational trends [13] - The company anticipates that same store revenue growth will be slightly more negative in the third quarter but expects improvements in the fourth quarter [19] Other Important Information - Balance sheet metrics remain strong with net debt to EBITDA at 4.7 times [16] - The company is focused on issuing long-term unsecured debt as it approaches the maturity of its senior unsecured notes [16] Q&A Session Summary Question: What were the assumptions at the top end of revenue guidance? - Management indicated that the top end assumed stronger overall demand, which has not materialized, leading to a narrowing of expectations [22] Question: Can you provide color on the New York boroughs and Northern New Jersey? - Positive trends in net rental income were noted, with Northern New Jersey gradually improving as supply is absorbed [26] Question: How does the 5% customer churn affect recovery? - Management explained that even with good months, the 5% churn means it takes time for improvements to reflect in revenue [32] Question: What is the outlook for the transaction market? - The company noted an increase in deal volume but remains cautious about pricing and risk-adjusted returns [35][102] Question: What are the expectations for same store revenue in the third quarter? - Management indicated that timing and volatility from previous adjustments would impact revenue, but overall trends are positive [49] Question: How are operating expenses trending in Austin? - Operating expenses were impacted by taxes and supply pressures, with a difficult comp from the previous year [70] Question: What is the appetite for acquisitions? - The company is focused on high-quality assets in top markets but is currently not seeing attractive pricing for acquisitions [105]

Core Insights - Public Storage (PSA) is expected to report quarterly earnings of $4.23 per share, unchanged from the same period last year, with revenues projected at $1.19 billion, reflecting a year-over-year increase of 1.8% [1] - The consensus EPS estimate has remained stable over the last 30 days, indicating analysts have not altered their initial projections significantly during this period [1][2] Revenue Estimates - Analysts forecast 'Revenues- Self-storage facilities' to be $1.11 billion, indicating a year-over-year increase of 1.1% [4] - The estimate for 'Revenues- Ancillary operations' is projected at $79.66 million, representing a year-over-year increase of 8.4% [4] Key Metrics - The consensus estimate for 'Square Foot Occupancy' is 92.7%, slightly down from 93.0% a year ago [4] - 'Rent per Occupied Square Foot' is expected to reach $22.23, down from $22.72 a year ago [5] - Analysts predict 'Depreciation and amortization' will total $285.08 million [5] Market Performance - Public Storage shares have decreased by 0.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of 4.6% [6] - PSA holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]

Core Insights - Public Storage (PSA) is expected to report second-quarter 2025 results on July 30, with anticipated revenue growth and stable core funds from operations (FFO) per share [1][11] Financial Performance - In the last reported quarter, PSA achieved a core FFO per share of $4.12, exceeding the Zacks Consensus Estimate of $4.06, driven by top-line growth despite a decline in occupancy [2][11] - The Zacks Consensus Estimate for second-quarter revenues from self-storage facilities is projected at $1.112 billion, reflecting an increase from $1.099 billion in the same period last year, with total quarterly revenues expected to reach $1.19 billion, indicating a 1.8% year-over-year increase [6][11] Market Dynamics - The self-storage industry is characterized by need-based demand and resilience during economic downturns, with low capital expenditure requirements and high operating margins contributing to favorable performance [5] - Despite softer demand and lower operating trends in the first quarter of 2025, management is focusing on attracting tenants by lowering rental rates and increasing promotional discounts [7][11] Strategic Factors - PSA's strong presence in major metropolitan markets, established brand, and technological upgrades are likely to support revenue growth in the second quarter [4][11] - Strategic acquisitions are expected to further enhance revenue generation during the quarter [4][11] Analyst Sentiment - The Zacks Consensus Estimate for second-quarter core FFO per share has remained unchanged at $4.23, indicating no year-over-year change [8][11] - PSA currently holds a Zacks Rank of 3 and an Earnings ESP of 0.00%, suggesting uncertainty regarding a surprise in FFO per share this quarter [10]

Company Overview - Shurgard Self Storage Ltd. (OTCPK:SSSAF) is positioned in a fragmented market with a strong balance sheet and visible growth outlook, making it an attractive investment opportunity [1] Investment Thesis - The company is expected to continue scaling over time, unlocking significant terminal value due to its competitive advantages and solid unit economics [1] - The focus on long-term free cash flow generation and shareholder value creation is central to the investment strategy [1] Analyst Background - The analysis is conducted by a self-educated investor with 10 years of experience in managing funds, emphasizing the importance of fundamental research and sectors with strong secular tailwinds [1]

Group 1 - Public Storage (PSA) and Ki Corporation have made a revised, non-binding offer to acquire Abacus Storage King at A$1.65 per stapled security, up from A$1.47 [1][8] - The consortium aims to acquire all outstanding stapled securities of Abacus not held by Ki Group, with each party set to own a 50% stake if the acquisition is completed [2] - Abacus Storage King operates around 126 properties, 21 development sites, and 75 managed or licensed locations, making it a leading self-storage operator in Australia and New Zealand [2] Group 2 - Public Storage plans to leverage its collaboration with Shurgard Self Storage Limited to enhance Abacus's customer experience, optimize operations, and accelerate portfolio expansion [3] - The self-storage market in Australia and New Zealand is characterized by strong population growth and stable economic conditions, presenting attractive opportunities for market consolidation [4] Group 3 - Public Storage has acquired 195 facilities with 14.5 million net rentable square feet for $3.1 billion from the beginning of 2023 through the first quarter of 2025, contributing a net operating income of $35.8 million in Q1 2025 [6] - The company is well-positioned to capitalize on potential opportunities due to solid access to capital [6] Group 4 - Despite the growth prospects, the industry faces challenges such as soft demand and lower occupancy rates, with expectations for a decline in the 2025 weighted average square foot occupancy to 91.8% [7] - High supply in the market is increasing competition, which affects pricing power and margins [7]

Core Viewpoint - Extra Space Storage Inc. is set to release its financial results for the three and six months ending June 30, 2025, on July 30, 2025, after market close, followed by a conference call on July 31, 2025, at 1:00 p.m. Eastern Time to discuss these results [1][2]. Company Overview - Extra Space Storage Inc. is a fully integrated, self-administered, and self-managed real estate investment trust (REIT) and a member of the S&P 500 [7]. - As of March 31, 2025, the company owned and/or operated 4,099 self-storage properties, comprising approximately 2.8 million units and about 315.0 million square feet of rentable storage space [7]. - The company is the largest operator of self-storage properties in the United States, offering a wide selection of conveniently located and secure storage units, including options for boat storage, RV storage, and business storage [7]. Conference Call Details - The conference call will include a review of operating performance, discussion of recent events, and a question-and-answer period limited to registered financial analysts [2]. - A live webcast of the conference call will be available on the company's investor relations page, and participants can pre-register to receive a special dial-in number and PIN [3][4]. - A replay of the conference call will be accessible on the investor relations website starting July 31, 2025, at 5:00 p.m. ET, remaining available for one year [5]. Earnings Report Availability - The full text of the earnings report and supplemental data will be available on the company's investor relations website immediately following the earnings release on July 30, 2025 [6].

Core Viewpoint - Extra Space Storage Inc. (NYSE: EXR) is recommended as a Buy for income investors interested in real estate investment trusts (REITs) due to its status as the largest self-storage REIT in the U.S. and its consistent outperformance compared to peers in total return over time [1]. Group 1 - Extra Space Storage Inc. is recognized as the largest self-storage REIT in the United States [1]. - The company consistently outperforms its peers in terms of total return, making it a favored choice among investors [1].