Extra Space Storage Q2 Core FFO Lags Estimates, Revenues Beat

Extra Space Storage Inc. EXR reported second-quarter 2025 core funds from operations (FFO) per share of $2.05, missing the Zacks Consensus Estimate of $2.06. The figure decreased 0.5% from the prior-year quarter.Results reflect a year-over-year rise in revenues due to growth in occupancy. However, high same-store expenses and interest expenses during the quarter were a spoilsport. Amid this, the stock is down around 3% in the pre-market trading hours.Quarterly revenues of $841.6 million surpassed the Zacks Consensus Estimate of $835.8 million. The top line increased 3.8% year over year.EXR’s Second Quarter in DetailSame-store revenues remained mostly flat year over year at $665.6 million. Same-store operating expenses rose 8.6% to $191.4 million, reflecting an increase in overall expenses year over year. As a result, same-store net operating income (NOI) decreased 3.1% year over year to $474.2 million.The same-store square-foot occupancy expanded 60 basis points year over year to 94.6% as of June 30, 2025. Our estimate was pegged at 94.2%.Interest expenses flared up 6.6% to $146.1 million. Our estimate stood at $143.8 million.EXR’s Portfolio ActivityDuring the April-June quarter, Extra Space Storage acquired one operating store for around $12.1 million. The company also acquired stakes of its joint venture partners in two separate arrangements for $326.4 million, now wholly owning the 27 properties previously held by them.With JV partners, EXR acquired one operating store after construction and completed the development of one store for approximately $24.2 million, of which the company invested $16.9 million.Extra Space Storage added 93 stores (74 stores net) to its third-party management platform. As of June 30, 2025, it managed 1,749 stores for third parties and 414 stores in unconsolidated JVs, with a total store count of 2,163 under management.EXR’s Balance Sheet PositionExtra Space Storage exited the second quarter with $125.0 million of cash and cash equivalents, up from $119.6 million recorded as of March 31, 2025.As of June 30, 2025, EXR's percentage of fixed-rate debt to total debt was 77.6%. The combined weighted average interest rate was 4.4%, with a weighted average maturity of around 4.3 years.In the second quarter, the company did not issue any shares under its at-the-market program and has $800 million available for issuance as of June 30, 2025.During the second quarter, the company repurchased 68,585 shares of common stock for $8.6 million under its stock repurchase program and had the authorization to buy up to an additional $491.4 million under the plan as of June 30, 2025.2025 Guidance Revised by EXRExtra Space Storage has narrowed its range for 2025 core FFO per share, keeping the midpoint constant. The company now expects the same to be in the range of $8.05-$8.25 from the earlier guided range of $8.00-$8.30. The Zacks Consensus Estimate of $8.18 lies within this range.The full-year guidance is based on the assumption of negative 0.50% to 1.00% growth in same-store revenues and a 4.00%-5.00% increase in same-store expenses. Same-store NOI is projected within a negative 2.75% to flat growth.EXR’s Zacks RankExtra 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.Extra Space Storage Inc Price, Consensus and EPS Surprise Extra Space Storage Inc price-consensus-eps-surprise-chart | Extra Space Storage Inc QuotePerformance of Other REITsDigital Realty Trust DLR reported second-quarter 2025 core FFO per share of $1.87, beating the Zacks Consensus Estimate of $1.74. FFO also increased 13.3% year over year.Results reflected steady leasing momentum with better rental rates amid rising demand. DLR raised its 2025 core FFO guidance range.Alexandria Real Estate Equities, Inc. ARE reported second-quarter 2025 AFFO per share of $2.33, beating the Zacks Consensus Estimate of $2.29. This compares unfavorably to the AFFO of $2.36 reported in the prior year.Results reflected decent leasing activity and rental rate growth. However, lower occupancy and higher interest expenses year over year undermined the results to some extent.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.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.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 Digital Realty Trust, Inc. (DLR): Free Stock Analysis Report Extra Space Storage Inc (EXR): Free Stock Analysis Report Alexandria Real Estate Equities, Inc. (ARE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks