Extra Space Storage EXR, a leading self-storage real estate investment trust (REIT) in the United States, is set to release its second-quarter 2026 results on July 28, 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 $2.04, surpassing the Zacks Consensus Estimate of $2.01. Results reflected a year-over-year increase in same-store NOI. However, lower occupancy during the quarter was a spoilsport.
The company beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 1.11%. 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 second quarter, Extra Space Storage is likely to have gained from its high brand value, geographically diversified portfolio and presence in key cities in the United States. The self-storage asset category is need-based and recession-resilient in nature. The self-storage industry continues to benefit from favorable demographic changes. Collectively, these factors are likely to have contributed to the company’s top-line growth.
The Zacks Consensus Estimate of $738.7 million for quarterly property rental revenues suggests an increase from the year-ago period’s $721 million. The consensus estimate for revenues from tenant reinsurance is pegged at $91.3 million, up from the year-ago reported figure of $88.6 million. The consensus mark for management fees and other income for the quarter stands at $34.2 million, slightly up from $32 million in the year-ago period.
The Zacks Consensus Estimate of $867.4 million for quarterly revenues suggests a 3.07% increase year over year.
Extra Space Storage’s activities during the second quarter were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has moved a cent upward to $2.06 over the past two months. It also indicates a 0.5% rise from the year-ago reported figure.
However, EXR operates in a highly fragmented market in the United States, facing intense competition from numerous operators. This competitive environment is likely to have weighed on pricing in the to-be-reported quarter.
What Our Quantitative Model Predicts for EXR
Our proven model likely predicts 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 the case here.
Extra Space Storage currently has an Earnings ESP of +0.39% 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.
Other Stocks That Warrant a Look
Here are two stocks from the broader REIT industry — BXP, Inc. BXP and Cousins Properties CUZ — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
BXP, which is scheduled to report quarterly results on July 28, has an Earnings ESP of +0.18% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins Properties is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and carries 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.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Extra Space Storage Inc (EXR): Free Stock Analysis Report
BXP, Inc. (BXP): Free Stock Analysis Report
Cousins Properties Incorporated (CUZ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).