Extra Space Storage Inc. Reports 2025 Second Quarter Results
SALT LAKE CITY, July 30, 2025 /PRNewswire/ -- Extra Space Storage Inc. (NYSE:EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a constituent of the S&P 500, announced operating results for the three and six months ended June 30, 2025.
Highlights for the three months ended June 30, 2025:
Achieved net income attributable to common stockholders of $1.18 per diluted share, representing a 34.1% increase compared to the same period in the prior year.
Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.98 per diluted share. FFO, excluding adjustments ("Core FFO"), was $2.05 per diluted share, representing a (0.5%) decrease compared to the same period in the prior year.
Same-store revenue remained flat and same-store net operating income ("NOI") decreased by (3.1)% compared to the same period in the prior year.
Reported ending same-store occupancy of 94.6% as of June 30, 2025, compared to 94.0% as of June 30, 2024.
Acquired one operating store for a total cost of $12.1 million.
Acquired the interest of our joint venture partners in two separate partnerships for $326.4 million. The Company now wholly owns the 27 properties previously owned by these entities.
In conjunction with joint venture partners, acquired one store at completion of construction ("Certificate of Occupancy store" or "C of O store") and completed the development of one store for a total cost of approximately $24.2 million, of which the Company invested $16.9 million.
Originated $157.8 million in mortgage and mezzanine bridge loans and sold $7.0 million in mortgage bridge loans.
Added 93 stores (74 stores net) to the Company's third-party management platform. As of June 30, 2025, the Company managed 1,749 stores for third parties and 414 stores in unconsolidated joint ventures, for a total of 2,163 managed stores.
Paid a quarterly dividend of $1.62 per share.
Highlights for the six months ended June 30, 2025:
Achieved net income attributable to common stockholders of $2.45 per diluted share, representing a 30.3% increase compared to the same period in the prior year.
Achieved FFO of $3.91 per diluted share, and Core FFO of $4.05 per diluted share, representing a 0.7% increase compared to the same period in the prior year.
Increased same-store revenue by 0.1% and same-store NOI decreased by (2.2)% compared to the same period in the prior year.
Acquired 13 operating stores for a total cost of $165.9 million.
Acquired the interest of our joint venture partners in two separate partnerships for $326.4 million. The Company now wholly owns the 27 properties previously owned by these entities. Acquired six additional properties by exchanging ownership interest in 17 properties from an existing joint venture.
In conjunction with joint venture partners, acquired two operating stores, completed the development of two stores and acquired one C of O store for a total cost of approximately $62.5 million, of which the Company invested $41.4 million.
Originated $211.0 million in mortgage and mezzanine bridge loans and sold $34.7 million in mortgage bridge loans.
Added 206 stores (174 stores net) to the Company's third-party management platform.
Joe Margolis, CEO of the Company, stated: "We delivered solid second quarter results, driven by historically high occupancy, steady existing customer behavior and gradually improving new customer rates. We have been active on the external growth front, with significant third party management and bridge loan activity, as well as the buy out of our partners' interest in two joint ventures. Based on our year to date performance, and our current outlook, we have maintained our annual FFO and same-store guidance at the midpoints, while we continue to monitor gradually improving storage fundamentals."
FFO Per Share:
The following table (unaudited) outlines the Company's FFO and Core FFO for the three and six months ended June 30, 2025 and 2024. The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data):
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2025
2024
2025
2024
(per share)1
(per share)1
(per share)1
(per share)1
Net income attributable to common stockholders
$ 249,731
$ 1.18
$ 185,872
$ 0.88
$ 520,606
$ 2.45
$ 398,984
$ 1.88
Impact of the difference in weighted average number of shares, diluted2
(0.05)
(0.04)
(0.10)
(0.08)
Adjustments:
Real estate depreciation
164,707
0.74
153,217
0.68
323,877
1.46
307,589
1.38
Amortization of intangibles
3,225
0.01
28,137
0.13
14,304
0.07
57,421
0.26
(Gain)/Loss on real estate assets held for sale and sold, net
864
—
54,659
0.25
(34,897)
(0.16)
54,659
0.25
Unconsolidated joint venture real estate depreciation and amortization
7,741
0.04
8,009
0.04
16,430
0.07
15,849
0.07
Income allocated to Operating Partnership and other noncontrolling interests
12,985
0.06
9,540
0.04
27,035
0.12
20,502
0.09
FFO
$ 439,253
$ 1.98
$ 439,434
$ 1.98
$ 867,355
$ 3.91
$ 855,004
$ 3.85
Adjustments:
Non-cash interest expense related to amortization of discount on unsecured senior notes, net
11,770
0.05
10,853
0.05
23,083
0.10
21,558
0.10
Amortization of other intangibles related to the Life Storage Merger, net of tax benefit
3,917
0.02
7,438
0.03
8,448
0.04
14,878
0.07
CORE FFO
$ 454,940
$ 2.05
$ 457,725
$ 2.06
$ 898,886
$ 4.05
$ 891,440
$ 4.02
Weighted average number of shares, diluted3
221,971,567
221,857,627
221,934,254
221,797,751
(1)
Per share amounts may not recalculate due to rounding.
(2)
The adjustment to account for the difference between the number of shares used to calculate earnings per share and the number of shares used to calculate FFO per share. Earnings per share is calculated using the two-class method, which uses a lower number of shares than the calculation for FFO per share and Core FFO per share, which are calculated assuming full redemption of all OP units as described in note (3).
(3)
Extra Space Storage LP (the "Operating Partnership") has outstanding preferred and common Operating Partnership units ("OP units"). These OP units can be redeemed for cash or, at the Company's election, shares of the Company's common stock. Redemption of all OP units for common stock has been assumed for purposes of calculating the weighted average number of shares, diluted, as presented above. The computation of weighted average number of shares, diluted, for FFO per share and Core FFO per share also includes the effect of share-based compensation plans.
Operating Results and Same-Store Performance:
The following table (unaudited) outlines the Company's same-store performance for the three and six months ended June 30, 2025 and 2024 (amounts shown in thousands, except store count data)1:
For the Three Months Ended June 30,
Percent
For the Six Months Ended June 30,
Percent
2025
2024
Change
2025
2024
Change
Same-store property revenues2
Net rental income
$ 640,422
$ 639,094
0.2 %
$ 1,276,284
$ 1,270,499
0.5 %
Other income
25,141
26,681
(5.8) %
49,095
52,914
(7.2) %
Total same-store revenues
$ 665,563
$ 665,775
0.0 %
$ 1,325,379
$ 1,323,413
0.1 %
Same-store operating expenses2
Payroll and benefits
$ 40,985
$ 39,968
2.5 %
$ 81,213
$ 81,130
0.1 %
Marketing
17,146
16,946
1.2 %
31,086
32,874
(5.4) %
Office expense3
20,553
20,250
1.5 %
40,859
41,126
(0.6) %
Property operating expense4
15,792
15,335
3.0 %
35,341
34,480
2.5 %
Repairs and maintenance
13,047
12,426
5.0 %
28,243
27,008
4.6 %
Property taxes
75,881
63,661
19.2 %
151,350
128,849
17.5 %
Insurance
7,968
7,667
3.9 %
15,732
15,514
1.4 %
Total same-store operating expenses
$ 191,372
$ 176,253
8.6 %
$ 383,824
$ 360,981
6.3 %
Same-store net operating income2
$ 474,191
$ 489,522
(3.1) %
$ 941,555
$ 962,432
(2.2) %
Same-store square foot occupancy as of quarter end
94.6 %
94.0 %
94.6 %
94.0 %
Average same-store square foot occupancy
94.2 %
93.6 %
93.8 %
92.8 %
Properties included in same-store5
1,829
1,829
1,829
1,829
