Extra Space Storage to Report Q3 Earnings: What to Expect?

Extra Space Storage EXR, a leading self-storage real estate investment trust (REIT) in the United States, is set to release its third-quarter 2025 results on Oct. 29, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues, with a marginal dip in funds from operations (FFO) per share.In the last reported quarter, this Salt Lake City, UT-based REIT reported FFO per share of $2.05, missing the Zacks Consensus Estimate of $2.06. Results reflected a year-over-year increase in revenues due to growth in occupancy. However, high same-store expenses and interest expenses during the quarter were a spoilsport.Over the trailing four quarters, the company beat the Zacks Consensus Estimate on three occasions and missed in the remainder, with the average surprise being 1.01%. The graph below depicts this surprise history:Extra Space Storage Inc Price and EPS Surprise Extra Space Storage Inc price-eps-surprise | Extra Space Storage Inc QuoteFactors to Consider and Projections for EXRIn the third 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. Moreover, the company’s focus on store expansion through accretive buyouts, mutually beneficial joint venture partnerships and third-party management services has contributed to higher revenues.The self-storage asset category is need-based and recession-resilient in nature. Additionally, the self-storage industry continues to benefit from favorable demographic changes. All these factors cumulatively are likely to have contributed to the company’s top-line growth.The Zacks Consensus Estimate of $732.32 million for quarterly property rental revenues suggests an increase from the year-ago period’s $710.87 million. The consensus estimate for revenues from tenant insurance of $87.99 million implies a jump from $84.05 million reported in the year-ago period. Moreover, the consensus mark for management fees and other for the quarter is projected at $31.59 million, up from $29.88 million in the year-ago period.The Zacks Consensus Estimate of $864.80 million for quarterly revenues suggests a 4.85% increase year over year.However, EXR operates in a highly fragmented market in the United States, with intense competition from numerous operators. This has fueled competition, affecting its power to raise rents and turn on more discounting, impacting its third-quarter earnings. Further, high-interest expenses are expected to have cast a pall on the company's performance to some extent.We estimate a 2.5% year-over-year increase in interest expenses in the third quarter.Extra Space Storage’s activities during the quarter were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has remained unchanged at $2.06 over the past two months. Also, it indicates a 0.48% decrease compared to the year-ago reported figure.What Our Quantitative Model Predicts for EXROur proven model 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 +0.23% 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 LookHere are two other stocks from the broader REIT sector — Ventas VTR and Federal Realty Investment Trust FRT— that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.Ventas, scheduled to report quarterly numbers on Oct. 29, has an Earnings ESP of +0.84% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Federal Realty, slated to release quarterly numbers on Oct. 31, has an Earnings ESP of +0.26% and carries a Zacks Rank of 2 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 HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI 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 Ventas, Inc. (VTR): Free Stock Analysis Report Federal Realty Investment Trust (FRT): Free Stock Analysis Report Extra Space Storage Inc (EXR): 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