Extra Space Storage EXR, a leading self-storage real estate investment trust (REIT) in the United States, is set to release its third-quarter 2026 results on Oct. 27, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Salt Lake City, UT-based REIT reported FFO per share of $2.15, surpassing the Zacks Consensus Estimate of $2.06. Results benefited from higher same-store revenues and lower same-store operating expenses, which drove 3.5% growth in same-store net operating income (NOI).
The company beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 2.32%. The graph below depicts this surprising history:
Extra Space Storage Inc Price and EPS Surprise
Extra Space Storage Inc price-eps-surprise | Extra Space Storage Inc Quote
Factors to Consider & Projections for EXR
In the third quarter of 2026, Extra Space Storage is likely to have benefited from its geographically diversified portfolio, strong brand recognition and advanced revenue management platform. Steady customer demand, strong retention and moderating new supply are expected to have supported occupancy and same-store revenue growth.
Management noted that July operating trends remained favorable, with occupancy improving year over year and revenues tracking slightly ahead of expectations. Improving pricing trends in Austin, Dallas and Miami, along with disciplined expense management and contributions from ancillary businesses, are likely to have aided performance.
However, continued pricing pressures in Houston, Tampa and Phoenix, new customer price sensitivity and subdued housing market activity may have limited growth. Tougher year-over-year comparisons and broader macroeconomic uncertainties are also likely to have weighed on performance in the to-be-reported quarter.
The Zacks Consensus Estimate of $749.9 million for quarterly property rental revenues suggests an increase from the year-ago period’s $735.6 million. The consensus estimate for revenues from tenant reinsurance is pegged at $93.4 million, up from the year-ago reported figure of $90.3 million. The consensus mark for management fees and other income for the quarter stands at $35 million, slightly up from $32.5 million in the year-ago period.
The Zacks Consensus Estimate of $880.3 million for quarterly revenues suggests a 2.54% increase year over year.
Extra Space Storage’s activities during the third quarter were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has remained unchanged at $2.10 over the past three months. It also indicates a 1% rise from the year-ago reported figure.
What Our Quantitative Model Predicts for EXR
Our proven model does not conclusively predict a surprise in terms of core FFO per share for Extra Space Storage this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Extra Space Storage currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector, Innovative Industrial Properties IIPR and Host Hotels & Resorts HST, which you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.
Innovative Industrial Properties is slated to report quarterly numbers on Nov. 2. IIPR has an Earnings ESP of +1.64% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Host Hotels & Resorts is slated to report quarterly numbers on Nov. 4. HST has an Earnings ESP of +3.20% and a Zacks Rank of 3 at present.
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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This article originally published on Zacks Investment Research (zacks.com).