Extra Space Storage Inc. EXR reported third-quarter 2026 core funds from operations (FFO) per share of $2.17, beating the Zacks Consensus Estimate of $2.10, up 4.3% from a year ago.
Quarterly revenues grew 3.6% year over year to $889.79 million, outpacing the consensus estimate of $880.31 million. Same-store net operating income (NOI) climbed 4.6%, supported by higher rental revenues and lower property-level expenses. Management also raised its full-year core FFO outlook.
Extra Space's Same-Store Operations
Same-store revenues rose 2.7% to $701.68 million. Net rental income increased 2.9% to $675.22 million, partly offset by a 1% decline in other income to $26.46 million. The comparable pool comprised 1,869 properties.
Same-store operating expenses fell 1.8% to $197.01 million, supporting NOI of $504.67 million. Repairs and maintenance costs declined 20%, insurance expenses dropped 16.5%, marketing fell 6.8%, and payroll and benefits decreased 4.6%. Property taxes, however, increased 4.9%.
Quarter-end same-store occupancy improved to 94% from 93.7% a year ago. Average occupancy grew to 94.3% from 94.1%, while annualized net rent per occupied square foot reached $20.21 compared with $19.72 last year.
EXR's Revenue Mix and Cost Trends
Property rental revenues increased 3.4% year over year to $760.84 million. Tenant reinsurance revenues rose 4.3% to $94.20 million, while management fees and other income advanced 6.8% to $34.76 million. Growth across these businesses supported the company's quarterly top line.
Total expenses increased 3.8% to $492.10 million. Property operations costs rose 1.4% to $238.84 million, while general and administrative expenses increased 5.2% to $45.74 million. Depreciation and amortization climbed 6.8% to $189.60 million, outpacing revenue growth.
EXR's Acquisitions and Lending Activity
Extra Space purchased four operating stores for $48.60 million during the quarter. With a joint venture partner, it completed one development costing approximately $16.60 million, of which the company invested $15.70 million.
EXR originated $19.50 million in mortgage and mezzanine bridge loans. Outstanding bridge-loan balances totaled approximately $1.40 billion at quarter-end, with another $59.20 million closed subsequently or under agreement to close in 2026.
Extra Space Extends Its Management Footprint
EXR added 78 stores to its third-party management platform during the quarter, although third-party managed stores declined by one on a net basis. As of Sept. 30, Extra Space managed 1,963 properties for third parties and 408 in unconsolidated joint ventures, totaling 2,371 managed stores.
Across its owned and managed operations, the company operated 4,411 self-storage stores in 43 states and Washington, D.C. Its portfolio comprised approximately 3 million units and 342.2 million square feet of rentable space.
EXR's Balance Sheet and Share Repurchases
EXR repurchased 2.39 million shares for $327.10 million during the quarter. It bought another 164,724 shares for $21.80 million after quarter-end, exhausting its previous $500 million buyback authorization. The board approved an updated $500 million program on Oct. 15.
Cash and cash equivalents stood at $114.82 million on Sept. 30 compared with $695.17 million at the end of the previous quarter. The company had $800 million available under its at-the-market share issuance program and $850 million outstanding under its $1 billion commercial paper facility.
Fixed-rate debt represented 79.6% of total debt, or an effective 89.3% after considering variable-rate receivables. The blended interest rate was 4.4%, with an average maturity of around four years. In July, EXR issued $550 million of 4.90% unsecured notes due 2032.
Extra Space Raises Its 2026 Guidance
Extra Space increased its 2026 core FFO outlook to $8.40-$8.50 per share from $8.25-$8.40. The revised range assumes same-store revenue growth of 2%-2.5% compared with its earlier projection of 1%-2%.
Expected same-store expense growth was lowered to 0%-0.5% from 1%-2%, while the NOI growth forecast rose to 2.5%-3.5% from 0.5%-2.5%. The company raised its acquisition assumption to $400 million from $300 million.
EXR’s Zacks Rank
Extra Space Storage currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
Crown Castle Inc. CCI reported third-quarter 2026 adjusted FFO per share of $1.24, up 10.7% year over year. The metric surpassed the Zacks Consensus Estimate of $1.20 by 3.3%. Results benefited from lower interest expenses.
Prologis PLD reported third-quarter 2026 core FFO per share of $1.60, outpacing the Zacks Consensus Estimate of $1.58. Results were driven by higher rental revenues, steady leasing demand and improved occupancy levels.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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