Back to top

Image: Bigstock

Extra Space Storage (EXR) Q3 FFO & Revenues Beat Estimates

Read MoreHide Full Article

Extra Space Storage, Inc. (EXR - Free Report) reported third-quarter 2020 core funds from operations (FFO) per share of $1.31, beating the Zacks Consensus Estimate of $1.24. The figure comes in 5.6% higher than the prior-year quarter’s $1.24.

Results reflect improving leasing activity and occupancy. However, fall in same-store net operating income (NOI) is a concern.

Quarterly revenues came in at $343 million, up 1.6% year over year. Moreover, the revenue figure surpassed the Zacks Consensus Estimate of $330.6 million.

Quarter in Detail

Same-store rental revenues edged down 1.5% year over year to $271.7 million during the third quarter, while same-store NOI fell 2.7% to $192.5 million. This decline in same-store revenues resulted from lower net rental rates for customers, late fees collected and higher bad-debt expenses related to non-paying tenants. Same-store square-foot occupancy was 95.9% as of Sep 30, 2020, up 210 basis points (bps) year on year. Further, the same-store square-foot occupancy was 95.9% as of Oct 31, 2020, up 260 bps year on year.

Balance Sheet

Extra Space Storage exited third-quarter 2020 with $74.8 million of cash and cash equivalents, up from the $65.7 million recorded at the end of 2019. Notably, as of Sep 30, 2020 the company's percentage of fixed-rate debt to total debt was 77.7%.

During the September-end quarter, the company did not sell any shares of common stock using its ATM program. Extra Space Storage had $298.6 million available for issuance under its ATM program as of Sep 30, 2020.

Portfolio Activity

During the July-September quarter, Extra Space Storage, in conjunction with its joint-venture partners, acquired two stores at completion of construction for a total cost of $19.6 million. Of this, the company invested $9.8 million.

In the reported quarter, Extra Storage acquired eight operating stores for a total cost of $87.4 million.

Extra Space Storage added 42 stores (gross) to its third-party management platform. As of Sep 30, 2020, it managed 718 stores for third-party owners and 253 stores owned in joint ventures, with total stores under management reaching 971.

Dividend Update

On Sep 30, the company paid the third-quarter common stock dividend of $0.90 per share to stockholders of record at the close of business on Sep 15, 2020.

Extra Space Storage Inc Price, Consensus and EPS Surprise

Extra Space Storage Inc Price, Consensus and EPS Surprise

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

Extra Space Storage currently carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other REITS

Boston Properties Inc.’s (BXP - Free Report) third-quarter 2020 FFO per share of $1.57 missed the Zacks Consensus Estimate of $1.64. The reported figure also decreased 4.3% from the year-ago quarter’s $1.64.

SITE Centers Corp.’s (SITC - Free Report) third-quarter operating FFO per share of 23 cents came in line with the Zacks Consensus Estimate. The reported figure, however, declined 23.3% year over year.

Highwoods Properties, Inc. (HIW - Free Report) third-quarter 2020 FFO per share of 86 cents missed the Zacks Consensus Estimate of 88 cents. The figure included 5 cents from debt extinguishment charges and non-cash straight-line credit losses. Nonetheless, the reported figure improved 3.6% from the 83 cents reported in the year-ago period.

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.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Published in