Extra Space Storage Q3 Core FFO Beats Estimates, Revenues Lag

Extra Space Storage Inc. EXR reported third-quarter 2025 core funds from operations (FFO) per share of $2.08, surpassing the Zacks Consensus Estimate of $2.06. The figure increased 0.48% 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, EXR stock has declined 3.79% during the after-market hours yesterday.Quarterly revenues of $858.5 million missed the Zacks Consensus Estimate of $864.8 million. However, the top line increased 4.1% year over year.EXR’s Third Quarter in DetailSame-store revenues decreased 0.2% year over year to $674 million. Same-store operating expenses rose 5.8% to $196.7 million, reflecting an increase in overall expenses year over year. As a result, same-store net operating income (NOI) decreased 2.5% year over year to $477.2 million.The same-store square-foot occupancy expanded 10 basis points year over year to 93.7% as of Sept. 30, 2025.Interest expenses flared up 4.8% to $149.7 million. Our estimate stood at $146.4 million.EXR’s Portfolio ActivityDuring the July-September quarter, Extra Space Storage acquired one operating store for around $12.8 million. With JV partners, EXR acquired one operating store for approximately $14.2 million, of which the company invested $1.4 million.Extra Space Storage added 95 stores (62 stores net) to its third-party management platform. As of Sept. 30, 2025, it managed 1,811 stores for third parties and 414 stores in unconsolidated JVs, with a total store count of 2,222 under management.EXR’s Balance Sheet PositionExtra Space Storage exited the third quarter with $111.9 million of cash and cash equivalents, down from $125 million recorded as of June 30, 2025.As of Sept. 30, 2025, EXR's percentage of fixed-rate debt to total debt was 83.8%. The combined weighted average interest rate was 4.4%, with a weighted average maturity of around 4.6 years.In the third quarter, the company did not issue any shares under its at-the-market program and has $800 million available for issuance as of Sept. 30, 2025.During the third quarter, EXR did not repurchase any shares under its stock repurchase program and had the authorization to buy up to an additional $491.4 million under the plan as of Sept. 30, 2025.EXR Revises 2025 GuidanceExtra Space Storage has narrowed its range for 2025 core FFO per share, increasing the midpoint by a cent. The company now expects the same to be in the range of $8.12-$8.20 from the earlier guided range of $8.05-$8.25. The Zacks Consensus Estimate of $8.15 lies within this range.The full-year guidance is based on the assumption of negative 0.25% to 0.25% growth in same-store revenues and a 4.50%-5.00% increase in same-store expenses. Same-store NOI is projected within a negative 2.25% to negative 1.25% 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 third-quarter 2025 core FFO per share of $1.89, beating the Zacks Consensus Estimate of $1.78. FFO also increased 13.2% year over year.Results reflected steady leasing momentum with better rental rates amid rising demand. DLR raised its 2025 core FFO guidance range.W.P. Carey WPC reported third-quarter 2025 AFFO per share of $1.25, topping the Zacks Consensus Estimate of $1.23. The figure improved 5.9% from the year-ago quarter.Results reflected higher revenues, aided by strong investment activity and a disciplined disposition strategy.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.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 W.P. Carey Inc. (WPC): 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