Extra Space Storage Inc. Reports 2024 Fourth Quarter and Year-End Results
Extra Space Storage (NYSE: EXR) reported its Q4 and full-year 2024 results, with Q4 net income reaching $1.24 per diluted share, up 21.6% year-over-year. The company's Q4 Core FFO was $2.03 per diluted share, showing a 0.5% increase.
Key operational metrics showed mixed performance, with same-store revenue declining 0.4% and NOI decreasing 3.5% in Q4. However, ending same-store occupancy improved to 93.7% from 92.5% year-over-year.
Strategic growth initiatives included:
- Acquisition of 38 operating stores for $359.7 million in Q4
- Increased joint venture partnership stakes to 49% for $251.2 million
- Originated $224.4 million in bridge loans
- Added 130 stores to third-party management platform
- Initiated $1.0 billion commercial paper program
The company maintained its quarterly dividend at $1.62 per share and expects a challenging but slowly improving operating environment in 2025.
Extra Space Storage (NYSE: EXR) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, con un utile netto del quarto trimestre che ha raggiunto $1.24 per azione diluita, in aumento del 21.6% rispetto all'anno precedente. L'FFO Core del quarto trimestre dell'azienda è stato di $2.03 per azione diluita, mostrando un incremento dello 0.5%.
I principali indicatori operativi hanno mostrato performance miste, con i ricavi delle stesse strutture in calo dello 0.4% e l'NOI in diminuzione del 3.5% nel quarto trimestre. Tuttavia, l'occupazione delle stesse strutture è migliorata, passando dal 92.5% al 93.7% rispetto all'anno precedente.
Le iniziative strategiche di crescita hanno incluso:
- Acquisizione di 38 negozi operativi per $359.7 milioni nel quarto trimestre
- Aumento delle partecipazioni nelle joint venture al 49% per $251.2 milioni
- Origine di prestiti ponte per $224.4 milioni
- Aggiunta di 130 negozi alla piattaforma di gestione di terzi
- Avvio di un programma di carta commerciale da $1.0 miliardo
L'azienda ha mantenuto il suo dividendo trimestrale a $1.62 per azione e prevede un ambiente operativo difficile ma in lenta miglioramento nel 2025.
Extra Space Storage (NYSE: EXR) informó sus resultados del cuarto trimestre y del año completo 2024, con un ingreso neto del cuarto trimestre que alcanzó $1.24 por acción diluida, un aumento del 21.6% interanual. El FFO Core del cuarto trimestre de la compañía fue de $2.03 por acción diluida, mostrando un incremento del 0.5%.
Las métricas operativas clave mostraron un desempeño mixto, con los ingresos de las mismas tiendas disminuyendo un 0.4% y el NOI disminuyendo un 3.5% en el cuarto trimestre. Sin embargo, la ocupación de las mismas tiendas mejoró al 93.7% desde el 92.5% interanual.
Las iniciativas estratégicas de crecimiento incluyeron:
- Adquisición de 38 tiendas operativas por $359.7 millones en el cuarto trimestre
- Aumento de la participación en asociaciones conjuntas al 49% por $251.2 millones
- Origen de préstamos puente por $224.4 millones
- Adición de 130 tiendas a la plataforma de gestión de terceros
- Inicio de un programa de papel comercial de $1.0 mil millones
La compañía mantuvo su dividendo trimestral en $1.62 por acción y espera un entorno operativo desafiante pero en lenta mejora en 2025.
엑스트라 스페이스 스토리지 (NYSE: EXR)는 2024년 4분기 및 전체 연도 결과를 발표했으며, 4분기 순이익이 희석주당 $1.24에 도달하여 전년 대비 21.6% 증가했습니다. 회사의 4분기 핵심 FFO는 희석주당 $2.03으로 0.5% 증가했습니다.
주요 운영 지표는 혼합된 성과를 보였으며, 같은 매장 수익은 0.4% 감소하고 NOI는 4분기에 3.5% 감소했습니다. 그러나 같은 매장의 점유율은 전년 대비 92.5%에서 93.7%로 개선되었습니다.
전략적 성장 이니셔티브에는 다음이 포함되었습니다:
- 4분기에 $359.7 백만에 38개 운영 매장 인수
- 파트너십 지분을 49%로 증가시켜 $251.2 백만
- $224.4 백만의 브리지 론 발행
- 제3자 관리 플랫폼에 130개 매장 추가
- $10억 상업 어음 프로그램 시작
회사는 분기 배당금을 주당 $1.62로 유지했으며, 2025년에는 도전적이지만 천천히 개선되는 운영 환경을 예상하고 있습니다.
Extra Space Storage (NYSE: EXR) a annoncé ses résultats pour le quatrième trimestre et l'année complète 2024, avec un bénéfice net du quatrième trimestre atteignant 1,24 $ par action diluée, en hausse de 21,6 % par rapport à l'année précédente. Le FFO Core du quatrième trimestre de l'entreprise était de 2,03 $ par action diluée, montrant une augmentation de 0,5 %.
Les principaux indicateurs opérationnels ont montré des performances contrastées, avec des revenus de magasins comparables en baisse de 0,4 % et un NOI en baisse de 3,5 % au quatrième trimestre. Cependant, l'occupation des mêmes magasins a amélioré pour atteindre 93,7 % contre 92,5 % l'année précédente.
Les initiatives stratégiques de croissance comprenaient :
- Acquisition de 38 magasins opérationnels pour 359,7 millions de dollars au quatrième trimestre
- Augmentation des participations dans les partenariats de coentreprise à 49 % pour 251,2 millions de dollars
- Origine de 224,4 millions de dollars en prêts relais
- Ajout de 130 magasins à la plateforme de gestion tiers
- Lancement d'un programme de papier commercial de 1,0 milliard de dollars
L'entreprise a maintenu son dividende trimestriel à 1,62 $ par action et s'attend à un environnement opérationnel difficile mais en lente amélioration en 2025.
Extra Space Storage (NYSE: EXR) hat die Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 bekannt gegeben, wobei der Nettogewinn im vierten Quartal $1.24 pro verwässerter Aktie erreichte, was einem Anstieg von 21.6% im Jahresvergleich entspricht. Der Core FFO des Unternehmens im vierten Quartal betrug $2.03 pro verwässerter Aktie, was einen Anstieg von 0.5% zeigt.
Wichtige betriebliche Kennzahlen zeigten eine gemischte Leistung, mit einem Rückgang der Same-Store-Umsätze um 0.4% und einem Rückgang des NOI um 3.5% im vierten Quartal. Die Belegung der gleichen Geschäfte verbesserte sich jedoch von 92.5% auf 93.7% im Jahresvergleich.
Strategische Wachstumsinitiativen umfassten:
- Akquisition von 38 Betriebsstätten für $359.7 Millionen im vierten Quartal
- Erhöhung der Anteile an Joint-Venture-Partnerschaften auf 49% für $251.2 Millionen
- Herkunft von $224.4 Millionen in Brückenfinanzierungen
- Hinzufügung von 130 Geschäften zur Drittanbieter-Managementplattform
- Einleitung eines $1.0 Milliarden kommerziellen Papierprogramms
Das Unternehmen hielt seine vierteljährliche Dividende bei $1.62 pro Aktie und erwartet ein herausforderndes, aber langsam verbessertes Betriebsumfeld im Jahr 2025.
- Q4 net income per share increased 21.6% year-over-year to $1.24
- Same-store occupancy improved to 93.7% from 92.5%
- Acquired 38 operating stores for $359.7M in Q4
- Added 130 stores to management platform
- Maintained strong quarterly dividend of $1.62 per share
- Q4 same-store revenue declined 0.4%
- Q4 same-store NOI decreased 3.5%
- Full-year net income decreased 15% compared to 2023
- Full-year same-store NOI declined 1.5%
Insights
Extra Space Storage's Q4 and full-year 2024 results reveal a company navigating challenging market conditions while positioning for future growth through multiple revenue streams. The company delivered Core FFO of $2.03 per share for Q4 (up 0.5% YoY) and $8.12 per share for the full year (up 0.2% YoY), demonstrating marginal growth amid headwinds.
The same-store performance metrics tell a complex story: Q4 revenue declined
EXR's multi-pronged growth strategy is particularly noteworthy. The company deployed
The capital recycling program (selling 5 properties in Q4 and 11 more post-quarter) suggests strategic portfolio optimization, likely divesting underperforming or non-core assets to redeploy capital toward higher-growth opportunities. The initiation of a
Management's outlook for 2025 acknowledges persistent challenges but anticipates gradual improvement. Their strategy appears to focus on maintaining high occupancy while leveraging ancillary businesses (management, bridge loans, insurance) to support FFO growth until storage market fundamentals strengthen. This diversified approach provides multiple income streams to weather continued softness in their core storage rental business.
The quarterly dividend of
Extra Space Storage's Q4 and full-year 2024 results reveal a REIT strategically navigating sector headwinds while diversifying revenue streams to maintain stability. The Core FFO of $2.03 per share for Q4 (up 0.5%) and $8.12 for the full year (up 0.2%) demonstrates minimal but positive growth in a challenging environment – outperforming several self-storage peers who reported FFO declines.
The same-store performance metrics warrant careful analysis. The
However, the improvement in same-store occupancy to
EXR's external growth strategy has evolved beyond traditional acquisitions. While the company deployed
The bridge loan portfolio has emerged as a significant contributor to earnings, with
The company's capital recycling program (selling 5 properties in Q4 with an
EXR's dividend of
Management's cautious outlook for 2025 aligns with industry expectations of continued near-term challenges but positions EXR to benefit from both gradual fundamental improvement and its diversified income streams. The company's scale advantages and multi-channel growth strategy provide resilience that smaller competitors lack in this challenging operating environment.
Highlights for the three months ended December 31, 2024:
- Achieved net income attributable to common stockholders of
$1.24 21.6% increase compared to the same period in the prior year. - Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of
$1.96 $2.03 0.5% increase compared to the same period in the prior year. - Same-store revenue decreased by (0.4)% and same-store net operating income ("NOI") decreased by (3.5)% compared to the same period in the prior year.
- Reported ending same-store occupancy of
93.7% as of December 31, 2024, compared to92.5% as of December 31, 2023. - Acquired 38 operating stores for a total cost of approximately
$359.7 million - Increased ownership interest in two existing joint venture partnerships to
49.0% for$251.2 million - Originated
$224.4 million $9.2 million - Added 130 stores (114 stores net) to the Company's third-party management platform. As of December 31, 2024, the Company managed 1,575 stores for third parties and 460 stores in unconsolidated joint ventures, for a total of 2,035 managed stores.
- Initiated an unsecured commercial paper program. As of December 31, 2024, the commercial paper program had total capacity of
$1.0 billion $500.0 million - Paid a quarterly dividend of
$1.62
Highlights for the year ended December 31, 2024:
- Achieved net income attributable to common stockholders of
$4.03 - Achieved FFO of
$7.57 $8.12 0.2% increase compared to the same period in the prior year. - Increased same-store revenue by
0.2% and same-store NOI decreased by (1.5)% compared to the same period in the prior year. - Acquired 55 operating stores and three stores at completion of construction ("Certificate of Occupancy stores" or "C of O stores") for a total cost of approximately
$581.0 million - In conjunction with joint venture partners, acquired five operating stores, one C of O store, completed seven developments and increased ownership interest in two existing joint ventures to
49.0% for a total net investment of approximately$360.3 million - Originated
$980.2 million $199.3 million - Added 367 stores (238 stores net) to the Company's third-party management platform.
Joe Margolis, CEO of Extra Space Storage Inc., commented: "The team continues to optimize performance in a challenging macro environment. This is evidenced by our ability to maintain strong occupancy during a time of year which is typically marked by occupancy declines. Our people, systems and high occupancy position the portfolio for future revenue growth as conditions improve. The outsized growth in our third-party management, bridge loan and insurance businesses, as well as our ability to find creative and off-market investment opportunities, continue to provide an avenue of growth in an otherwise tough operating environment, and contribute to Core FFO per share growth modestly ahead of our projections."
"We expect much of the same in 2025 – a challenging but slowly improving operating environment, augmented by contributions to FFO from our ancillary businesses and structured investments."
FFO Per Share:
The following table (unaudited) outlines the Company's FFO and Core FFO for the three months and year ended December 31, 2024 and 2023. The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data):
For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
(per share)1 | (per share)1 | (per share)1 | (per share)1 | ||||||||||||
Net income attributable to | $ 262,487 | $ 1.24 | $ 216,134 | $ 1.02 | $ 854,681 | $ 4.03 | $ 803,198 | $ 4.74 | |||||||
Impact of the difference in | (0.05) | (0.05) | (0.17) | (0.25) | |||||||||||
Adjustments: | |||||||||||||||
Real estate depreciation | 156,027 | 0.70 | 152,881 | 0.69 | 618,189 | 2.78 | 418,149 | 2.34 | |||||||
Amortization of intangibles | 28,305 | 0.13 | 30,246 | 0.14 | 113,886 | 0.51 | 59,295 | 0.33 | |||||||
(Gain) loss on real estate | (37,714) | (0.17) | — | — | 25,906 | 0.12 | — | — | |||||||
Unconsolidated joint venture | 8,907 | 0.04 | 8,041 | 0.04 | 32,678 | 0.15 | 24,400 | 0.14 | |||||||
Unconsolidated joint venture | — | — | — | — | (13,730) | (0.06) | — | — | |||||||
Distributions paid on Series A | — | — | — | — | — | — | (159) | — | |||||||
Income allocated to Operating | 15,314 | 0.07 | 11,273 | 0.05 | 45,551 | 0.21 | 47,255 | 0.26 | |||||||
FFO | $ 433,326 | $ 1.96 | $ 418,575 | $ 1.89 | $ 7.57 | $ 7.56 | |||||||||
Adjustments: | |||||||||||||||
Life Storage Merger transition | — | — | 12,558 | 0.05 | — | — | 66,732 | 0.37 | |||||||
Non-cash interest expense | 11,157 | 0.05 | 10,558 | 0.05 | 43,720 | 0.20 | 18,786 | 0.10 | |||||||
Amortization of other | 5,761 | 0.02 | 7,440 | 0.03 | 26,959 | 0.12 | 12,400 | 0.07 | |||||||
Impairment of Life Storage | — | — | — | — | 51,763 | 0.23 | — | — | |||||||
CORE FFO | $ 450,244 | $ 2.03 | $ 449,131 | $ 2.02 | $ 8.12 | $ 8.10 | |||||||||
Weighted average number of | 221,329,035 | 221,916,681 | 221,623,954 | 178,969,993 | |||||||||||
(1) | Per share amounts may not recalculate due to rounding. |
(2) | The adjustment to account for the difference between the number of shares used to calculate earnings per share and the number of shares used to calculate FFO per share. Earnings per share is calculated using the two-class method, which uses a lower number of shares than the calculation for FFO per share and Core FFO per share, which are calculated assuming full redemption of all OP units as described in note (3). |
(3) | Extra Space Storage LP (the "Operating Partnership") has outstanding preferred and common Operating Partnership units ("OP units"). These OP units can be redeemed for cash or, at the Company's election, shares of the Company's common stock. Redemption of all OP units for common stock has been assumed for purposes of calculating the weighted average number of shares — diluted, as presented above. The computation of weighted average number of shares — diluted, for FFO per share and Core FFO per share also includes the effect of share-based compensation plans. |
Operating Results and Same-Store Performance:
The following table (unaudited) outlines the Company's same-store performance for the three months and year ended December 31, 2024, and 2023 (amounts shown in thousands, except store count data)1:
For the Three Months | Percent | For the Year Ended | Percent | ||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
Same-store property revenues2 | |||||||||||
Net rental income | $ 400,263 | $ 400,954 | (0.2) % | 0.3 % | |||||||
Other income | 15,622 | 16,508 | (5.4) % | 64,300 | 65,689 | (2.1) % | |||||
Total same-store revenues | $ 415,885 | $ 417,462 | (0.4) % | 0.2 % | |||||||
Same-store operating expenses2 | |||||||||||
Payroll and benefits | $ 24,247 | $ 23,466 | 3.3 % | $ 95,696 | $ 91,329 | 4.8 % | |||||
Marketing | 8,250 | 7,740 | 6.6 % | 34,038 | 30,327 | 12.2 % | |||||
Office expense3 | 12,635 | 12,816 | (1.4) % | 51,606 | 51,655 | (0.1) % | |||||
Property operating expense4 | 9,408 | 8,821 | 6.7 % | 37,646 | 38,491 | (2.2) % | |||||
Repairs and maintenance | 6,739 | 6,682 | 0.9 % | 27,934 | 26,469 | 5.5 % | |||||
Property taxes | 44,593 | 36,219 | 23.1 % | 165,617 | 152,028 | 8.9 % | |||||
Insurance | 4,645 | 5,210 | (10.8) % | 19,512 | 18,718 | 4.2 % | |||||
Total same-store operating expenses | $ 110,517 | $ 100,954 | 9.5 % | $ 432,049 | $ 408,927 | 5.7 % | |||||
Same-store net operating income2 | $ 305,368 | $ 316,508 | (3.5) % | (1.5) % | |||||||
Same-store square foot occupancy as of quarter end | 93.7 % | 92.5 % | 93.7 % | 92.5 % | |||||||
Average same-store square foot occupancy | 94.1 % | 92.9 % | 93.9 % | 93.3 % | |||||||
Properties included in same-store5 | 1,071 | 1,071 | 1,071 | 1,071 | |||||||
(1) | A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income." |
(2) | Same-store revenues, operating expenses and net operating income do not include tenant reinsurance revenue or expense. |
(3) | Includes general office expenses, computer, bank fees, and credit card merchant fees. |
(4) | Includes utilities and miscellaneous other store expenses. |
(5) | On January 1, 2024, the Company updated the property count of the same-store pool from 913 to 1,078 stores. In the year ended December 31, 2024, six properties were removed from the pool due to structural damage and redevelopment and one property was sold, reducing the same-store pool to 1,071 stores. |
Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three months and year ended December 31, 2024, and 2023 are provided in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
Investment and Property Management Activity:
The following table (unaudited) outlines the Company's acquisitions and developments that are closed, completed or under agreement (dollars in thousands).
Closed/Completed | Closed/Completed | Scheduled to Still | Total 2025 | |||||||||||||
Wholly-Owned Investment1 | Stores | Price | Stores | Price | Stores | Price | Stores | Price | ||||||||
Operating Stores2 | 55 | $ 546,672 | 8 | $ 97,883 | 2 | 10 | ||||||||||
C of O and Development Stores1 | 3 | 34,337 | — | — | — | — | — | — | ||||||||
EXR Investment in Wholly-Owned Stores | 58 | 581,009 | 8 | 97,883 | 2 | 20,250 | 10 | 118,133 | ||||||||
Joint Venture Investment1 | ||||||||||||||||
EXR Investment in JV Acquisition of Operating Stores | 5 | 9,200 | 1 | 11,025 | 1 | 12,240 | 2 | 23,265 | ||||||||
EXR Increased Investment in Existing JVs | — | 251,200 | — | — | — | — | — | — | ||||||||
EXR Investment in JV Development and C of O | 8 | 99,917 | 1 | 12,138 | 6 | 73,641 | 7 | 85,779 | ||||||||
EXR Investment in Joint Ventures | 13 | 360,317 | 2 | 23,163 | 7 | 85,881 | 9 | 109,044 | ||||||||
Total EXR Investment | 71 | $ 941,326 | 10 | $ 121,046 | 9 | $ 106,131 | 19 | |||||||||
(1) | The locations of C of O and development stores and joint venture ownership interest details are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/. |
(2) | Includes the buyout of partner's interest in one property in the quarter. |
The projected developments and acquisitions under agreement described above are subject to customary closing conditions and no assurance can be provided that these developments and acquisitions will be completed on the terms described, or at all.
Other Investment Activity:
On February 4, 2025, the Company invested
Property Sales:
During the three months ended December 31, 2024, the Company sold five properties, four of which were previously held for sale, resulting in a net gain of
Bridge Loans:
During the three months ended December 31, 2024, the Company originated
Property Management:
As of December 31, 2024, the Company managed 1,575 stores for third-party owners and 460 stores owned in unconsolidated joint ventures, for a total of 2,035 stores under management. The Company is the largest self-storage management company in
Balance Sheet:
During the three months ended December 31, 2024, the Company did not issue any shares on its ATM program, and as of December 31, 2024, the Company had
During the three months ended December 31, 2024, the Company re-opened an existing issuance of
During the three months ended December 31, 2024, the Company initiated an unsecured commercial paper program which received initial short-term ratings of A-2 from S&P Global Ratings and P-2 from Moody's. As of December 31, 2024, the commercial paper program had total capacity of
As of December 31, 2024, the Company's percentage of fixed-rate debt to total debt was
Subsequent to quarter end, the Company re-opened an existing issuance of
Subsequent to quarter end the Company paid off a
Dividends:
On December 31, 2024, the Company paid a fourth quarter common stock dividend of
Outlook:
The following table outlines the Company's current and prior quarter Core FFO estimates and assumptions for the year ending December 31, 20251.
Ranges for 2025 Annual Assumptions | Notes | |||
(February 25, 2025) | ||||
Low | High | |||
Core FFO | ||||
Dilution per share from C of O and value | ||||
Same-store revenue growth | (0.75) % | 1.25 % | Same-store pool of 1,829 stores | |
Same-store expense growth | 3.75 % | 5.25 % | Same-store pool of 1,829 stores | |
Same-store NOI growth | (3.00) % | 0.25 % | Same-store pool of 1,829 stores | |
Weighted average one-month SOFR | 4.15 % | 4.15 % | ||
Net tenant reinsurance income | ||||
Management fees and other income | ||||
Interest income | Includes interest from bridge loans and dividends from | |||
General and administrative expenses | Includes non-cash compensation | |||
Average monthly cash balance | ||||
Equity in earnings of real estate ventures | Includes dividends from SmartStop preferred investments | |||
Interest expense | Excludes non-cash interest expense shown below. | |||
Non-cash interest expense related to | Amortization of LSI debt mark-to-market; excluded | |||
Income Tax Expense | Taxes associated with the Company's taxable REIT subsidiary | |||
Acquisitions | Includes wholly-owned acquisitions and the Company's | |||
Bridge loans outstanding | Represents the Company's average retained loan | |||
Weighted average share count | 222,200,000 | 222,200,000 | Assumes redemption of all OP units for common stock | |
(1) A reconciliation of net income outlook to same-store net operating income outlook is provided later in this release entitled "Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income." The reconciliation includes details related to same-store revenue and same-store expense outlooks. A reconciliation of net income per share outlook to funds from operations per share outlook is provided later in this release entitled "Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share." |
FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company's estimates are forward-looking and based on management's view of current and future market conditions. The Company's actual results may differ materially from these estimates.
Supplemental Financial Information:
Supplemental unaudited financial information regarding the Company's performance can be found on the Company's website at www.extraspace.com. Under the "Company Info" navigation menu on the home page, click on "Investor Relations," then under the "Financials & Stock Information" navigation menu click on "Quarterly Earnings." This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets.
Conference Call:
The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, February 26, 2025, to discuss its financial results. Telephone participants may avoid any delays in joining the conference call by pre-registering for the call using the following link to receive a special dial-in number and PIN: https://emportal.ink/3PKtvFm
A live webcast of the call will also be available on the Company's investor relations website at https://ir.extraspace.com. To listen to the live webcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
A replay of the call will be available for 30 days on the investor relations section of the Company's website beginning at 5:00 p.m. Eastern Time on February 26, 2025.
Forward-Looking Statements:
Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include statements concerning the benefits of store acquisitions, developments, market conditions, our outlook and estimates for the year and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, plans or intentions relating to acquisitions and developments, estimated hurricane-related insurance claims and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:
- adverse changes in general economic conditions, the real estate industry and the markets in which we operate;
- potential liability for uninsured losses and environmental contamination;
- our ability to recover losses under our insurance policies;
- the impact of the regulatory environment as well as national, state and local laws and regulations, including, without limitation, those governing real estate investment trusts ("REITs"), tenant reinsurance and other aspects of our business, which could adversely affect our results;
- the effect of competition from new and existing stores or other storage alternatives, including increased or unanticipated competition for our properties, which could cause rents and occupancy rates to decline;
- failure to close pending acquisitions and developments on expected terms, or at all;
- risks associated with acquisitions, dispositions and development of properties, including increased development costs due to additional regulatory requirements related to climate change and other factors;
- reductions in asset valuations and related impairment charges;
- our reliance on information technologies, which are vulnerable to, among other things, attack from computer viruses and malware, hacking, cyberattacks and other unauthorized access or misuse, any of which could adversely affect our business and results;
- impacts from any outbreak of highly infectious or contagious diseases, including reduced demand for self-storage space and ancillary products and services such as tenant reinsurance, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results;
- economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan;
- our lack of sole decision-making authority with respect to our joint venture investments;
- disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow;
- availability of financing and capital, the levels of debt that we maintain and our credit ratings;
- changes in global financial markets and increases in interest rates;
- the effect of recent or future changes to
U.S. tax laws; and - the failure to maintain our REIT status for
U.S. federal income tax purposes.
All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
Definition of FFO:
FFO provides relevant and meaningful information about the Company's operating performance that is necessary, along with net income and cash flows, for an understanding of the Company's operating results. The Company believes FFO is a meaningful disclosure as a supplement to net income. Net income assumes that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company's real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income computed in accordance with
For informational purposes, the Company also presents Core FFO. Core FFO excludes revenues and expenses not core to our operations and transaction costs. It also includes certain costs associated with the Life Storage Merger including transition costs, non-cash interest related to the amortization of discount on unsecured senior notes, amortization of other intangibles, net of tax benefit, and impairment of Life Storage trade name. Although the Company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding revenues and expenses not core to our operations and non-cash interest charges, stockholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Core FFO by the Company should not be considered a replacement of the NAREIT definition of FFO. The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company's performance, as an alternative to net cash flow from operating activities as a measure of liquidity, or as an indicator of the Company's ability to make cash distributions.
Definition of Same-Store:
The Company's same-store pool for the periods presented consists of 1,071 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented. The Company considers a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of
About Extra Space Storage Inc.:
Extra Space Storage Inc., headquartered in
Extra Space Storage Inc. Condensed Consolidated Balance Sheets (In thousands, except share data)
| |||
December 31, 2024 | December 31, 2023 | ||
(Unaudited) | |||
Assets: | |||
Real estate assets, net | $ 24,587,627 | $ 24,555,873 | |
Real estate assets - operating lease right-of-use assets | 689,803 | 227,241 | |
Investments in unconsolidated real estate entities | 1,332,338 | 1,071,617 | |
Investments in debt securities and notes receivable | 1,550,950 | 904,769 | |
Cash and cash equivalents | 138,222 | 99,062 | |
Other assets, net | 548,986 | 597,700 | |
Total assets | $ 28,847,926 | $ 27,456,262 | |
Liabilities, Noncontrolling Interests and Equity: | |||
Secured notes payable, net | $ 1,010,541 | $ 1,273,549 | |
Unsecured term loans, net | 2,192,507 | 2,650,581 | |
Unsecured senior notes, net | 7,756,968 | 6,410,618 | |
Revolving lines of credit and commercial paper | 1,362,000 | 682,000 | |
Operating lease liabilities | 705,845 | 236,515 | |
Cash distributions in unconsolidated real estate ventures | 75,319 | 71,069 | |
Accounts payable and accrued expenses | 346,519 | 334,518 | |
Other liabilities | 538,865 | 383,463 | |
Total liabilities | 13,988,564 | 12,042,313 | |
Commitments and contingencies | |||
Noncontrolling Interests and Equity: | |||
Extra Space Storage Inc. stockholders' equity: | |||
Preferred stock, | — | — | |
Common stock, | 2,120 | 2,113 | |
Additional paid-in capital | 14,831,946 | 14,750,388 | |
Accumulated other comprehensive income | 12,806 | 17,435 | |
Accumulated deficit | (899,337) | (379,015) | |
Total Extra Space Storage Inc. stockholders' equity | 13,947,535 | 14,390,921 | |
Noncontrolling interest represented by Preferred Operating Partnership units, net | 76,092 | 222,360 | |
Noncontrolling interests in Operating Partnership, net and other noncontrolling interests | 835,735 | 800,668 | |
Total noncontrolling interests and equity | 14,859,362 | 15,413,949 | |
Total liabilities, noncontrolling interests and equity | $ 28,847,926 | $ 27,456,262 | |
Consolidated Statement of Operations for the Three Months and Year Ended December 31, 2024 and 2023 (In thousands, except share and per share data) - Unaudited
| |||||||
For the Three Months Ended | For the Year Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenues: | |||||||
Property rental | $ 707,234 | $ 696,982 | $ 2,803,252 | $ 2,222,578 | |||
Tenant reinsurance | 83,695 | 70,415 | 332,795 | 235,680 | |||
Management fees and other income | 30,967 | 30,377 | 120,855 | 101,986 | |||
Total revenues | 821,896 | 797,774 | 3,256,902 | 2,560,244 | |||
Expenses: | |||||||
Property operations | 221,111 | 195,039 | 831,566 | 612,036 | |||
Tenant reinsurance | 18,240 | 21,173 | 73,886 | 58,874 | |||
Life Storage Merger transition costs | — | 12,558 | — | 66,732 | |||
General and administrative | 44,025 | 39,397 | 167,398 | 146,408 | |||
Depreciation and amortization | 196,202 | 196,139 | 783,023 | 506,053 | |||
Total expenses | 479,578 | 464,306 | 1,855,873 | 1,390,103 | |||
Gain (loss) on real estate assets held for sale and sold, net | 37,714 | — | (25,906) | — | |||
Impairment of Life Storage trade name | — | — | (51,763) | — | |||
Income from operations | 380,032 | 333,468 | 1,323,360 | 1,170,141 | |||
Interest expense | (138,479) | (129,665) | (551,354) | (419,035) | |||
Non-cash interest expense related to amortization of discount on Life Storage | (11,157) | (10,558) | (43,720) | (18,786) | |||
Interest income | 34,676 | 22,250 | 124,422 | 84,857 | |||
Income before equity in earnings and dividend income from unconsolidated real | 265,072 | 215,495 | 852,708 | 817,177 | |||
Equity in earnings and dividend income from unconsolidated real estate entities | 18,764 | 16,233 | 67,272 | 54,835 | |||
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate | — | — | 13,730 | — | |||
Income tax expense | (6,035) | (4,321) | (33,478) | (21,559) | |||
Net income | 277,801 | 227,407 | 900,232 | 850,453 | |||
Net income allocated to Preferred Operating Partnership noncontrolling interests | (1,189) | (2,250) | (7,262) | (9,011) | |||
Net income allocated to Operating Partnership and other noncontrolling interests | (14,125) | (9,023) | (38,289) | (38,244) | |||
Net income attributable to common stockholders | $ 262,487 | $ 216,134 | $ 854,681 | $ 803,198 | |||
Earnings per common share | |||||||
Basic | $ 1.24 | $ 1.02 | $ 4.03 | $ 4.74 | |||
Diluted | $ 1.24 | $ 1.02 | $ 4.03 | $ 4.74 | |||
Weighted average number of shares | |||||||
Basic | 211,737,843 | 211,071,794 | 211,575,240 | 169,216,989 | |||
Diluted | 211,737,843 | 219,961,282 | 211,577,680 | 169,220,882 | |||
Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three Months and Year Ended December 31, 2024 and 2023 (In thousands) - Unaudited
| |||||||
For the Three Months Ended | For the Year Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net Income | $ 277,801 | $ 227,407 | $ 900,232 | $ 850,453 | |||
Adjusted to exclude: | |||||||
Gain (loss) on real estate assets held for sale and sold, net | (37,714) | — | 25,906 | — | |||
Equity in earnings and dividend income from unconsolidated real | (18,764) | (16,233) | (67,272) | (54,835) | |||
Equity in earnings of unconsolidated real estate ventures - gain on sale | — | — | (13,730) | — | |||
Interest expense | 138,479 | 129,665 | 551,354 | 419,035 | |||
Non-cash interest expense related to amortization of discount on Life | 11,157 | 10,558 | 43,720 | 18,786 | |||
Depreciation and amortization | 196,202 | 196,139 | 783,023 | 506,053 | |||
Impairment of Life Storage trade name | — | — | 51,763 | — | |||
Income tax expense | 6,035 | 4,321 | 33,478 | 21,559 | |||
Life Storage Merger transition costs | — | 12,558 | — | 66,732 | |||
General and administrative | 44,025 | 39,397 | 167,398 | 146,408 | |||
Management fees, other income and interest income | (65,643) | (52,627) | (245,277) | (186,843) | |||
Net tenant insurance | (65,455) | (49,242) | (258,909) | (176,806) | |||
Non same-store rental revenue | (291,349) | (279,520) | (1,137,497) | (560,874) | |||
Non same-store operating expense | 110,594 | 94,085 | 399,517 | 203,109 | |||
Total same-store net operating income | $ 305,368 | $ 316,508 | $ 1,233,706 | $ 1,252,777 | |||
Same-store rental revenues | 415,885 | 417,462 | 1,665,755 | 1,661,704 | |||
Same-store operating expenses | 110,517 | 100,954 | 432,049 | 408,927 | |||
Same-store net operating income | $ 305,368 | $ 316,508 | $ 1,233,706 | $ 1,252,777 | |||
Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share — for the Year Ending December 31, 2025 - Unaudited
| ||||
For the Year Ending December 31, 2025 | ||||
Low End | High End | |||
Net income attributable to common stockholders per diluted share | $ 4.38 | $ 4.68 | ||
Income allocated to noncontrolling interest - Preferred Operating | 0.27 | 0.27 | ||
Net income attributable to common stockholders for diluted computations | 4.65 | 4.95 | ||
Adjustments: | ||||
Real estate depreciation | 2.61 | 2.61 | ||
Amortization of intangibles | 0.28 | 0.28 | ||
Unconsolidated joint venture real estate depreciation and amortization | 0.16 | 0.16 | ||
Funds from operations attributable to common stockholders | 7.70 | 8.00 | ||
Adjustments: | ||||
Non-cash interest expense related to amortization of discount on Life | 0.21 | 0.21 | ||
Amortization of other intangibles related to the Life Storage Merger, net of | 0.09 | 0.09 | ||
Core funds from operations attributable to common stockholders | $ 8.00 | $ 8.30 | ||
Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending December 31, 2025 (In thousands) - Unaudited
| |||
For the Year Ending December 31, 2025 | |||
Low | High | ||
Net Income | $ 1,039,500 | $ 1,120,250 | |
Adjusted to exclude: | |||
Equity in earnings of unconsolidated joint ventures | (89,000) | (90,000) | |
Interest expense | 575,000 | 570,000 | |
Non-cash interest expense related to amortization of discount on Life | 47,000 | 46,000 | |
Depreciation and amortization | 682,750 | 682,750 | |
Income tax expense | 39,000 | 38,000 | |
General and administrative | 186,000 | 184,000 | |
Management fees and other income | (125,000) | (126,500) | |
Interest income | (150,500) | (152,000) | |
Net tenant reinsurance income | (268,000) | (271,000) | |
Non same-store rental revenues | (179,000) | (179,000) | |
Non same-store operating expenses | 114,000 | 114,000 | |
Total same-store net operating income1 | $ 1,871,750 | $ 1,936,500 | |
Same-store rental revenues1 | 2,645,000 | 2,698,500 | |
Same-store operating expenses1 | 773,250 | 762,000 | |
Total same-store net operating income1 | $ 1,871,750 | $ 1,936,500 | |
(1) Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2025 same-store pool of 1,829 stores. |
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SOURCE Extra Space Storage Inc.
FAQ
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