Extra Space Storage Q4 Core FFO & Revenues Surpass Estimates

Extra Space Storage Inc. EXR reported fourth-quarter 2025 core funds from operations (FFO) per share of $2.08, surpassing the Zacks Consensus Estimate of $2.03. The figure increased 2.05% from the prior-year quarter.

The results reflect a year-over-year rise in same-store net operating income (NOI). However, lower occupancy during the quarter was a spoilsport.

Quarterly revenues of $857.5 million outpaced the Zacks Consensus Estimate of $851 million. The top line increased 4.3% year over year.

For full-year 2025, core FFO per share was $8.21, up 1.1% from the prior-year tally. It surpassed the Zacks Consensus Estimate of $8.16. Moreover, revenues grew 3.7% to $3.38 billion.

EXR’s Fourth Quarter in Detail

Same-store revenues increased 0.4% year over year to $664.2 million. Same-store operating expenses rose 1.1% year over year to $188.3 million. As a result, same-store NOI increased 0.1% year over year to $475.9 million.

The same-store square-foot occupancy contracted 70 basis points year over year to 92.6% as of Dec. 31, 2025.

Interest expenses increased 7.9% to $149.4 million.

EXR’s Portfolio Activity

During the fourth quarter, Extra Space Storage acquired 27 operating stores for around $304.8 million. With JV partners, EXR acquired seven operating stores for approximately $106.9 million, of which the company invested $10.7 million.

Extra Space Storage added 78 stores (45 stores net) to its third-party management platform. As of Dec. 31, 2025, it managed 1,856 third-party stores and 407 stores in unconsolidated JVs, with a total of 2,263 stores under management.

EXR’s Balance Sheet Position

Extra Space Storage exited the fourth quarter with $138.9 million of cash and cash equivalents, up from $138.2 million recorded as of Sept. 30, 2025.

As of Dec. 31, 2025, EXR's percentage of fixed-rate debt to total debt was 82.1%. The combined weighted average interest rate was 4.3%, with a weighted average maturity of around 4.5 years.

In the fourth quarter, the company did not issue any shares under its at-the-market program and had $800 million available for issuance as of Dec. 31, 2025.

During the fourth quarter, EXR repurchased 1.09 million shares under its stock repurchase program for an aggregate amount of $140.9 million. The company had the authorization to buy up to an additional $350.5 million under the plan as of Dec. 31, 2025.

2026 Guidance by EXR

Extra Space Storage provided its initial 2026 outlook.

It expects core FFO per share between $8.05 and $8.35. The Zacks Consensus Estimate for the same is pinned at $8.25, which lies within the range.

The full-year guidance is based on the assumption of negative 0.5% to 1.50% growth in same-store revenues and a 2-3.50% increase in same-store expenses. Same-store NOI is projected to grow within negative 2.25% to 1.25%.

EXR’s Zacks Rank

Extra Space Storage currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Extra Space Storage Inc Price, Consensus and EPS Surprise

Extra Space Storage Inc price-consensus-eps-surprise-chart | Extra Space Storage Inc Quote

Performance of Other REITs

Digital Realty Trust DLR reported fourth-quarter 2025 core FFO per share of $1.86, beating the Zacks Consensus Estimate of $1.83. FFO also increased 7.5% year over year.

Results reflected steady leasing momentum with better rental rates amid rising demand.

W.P. Carey WPC reported fourth-quarter 2025 AFFO per share of $1.27, topping the Zacks Consensus Estimate of $1.26. The figure improved 5% from the year-ago quarter.

Results reflected higher revenues, aided by strong investment activity and improved rents.

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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