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What's in Store for Extra Space Storage (EXR) in Q3 Earnings?
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Extra Space Storage (EXR - Free Report) is slated to report third-quarter 2022 results on Nov 1 after market close. Its quarterly revenues and funds from operations (FFO) per share are likely to have witnessed year-over-year increases.
In the last reported quarter, this Salt Lake City, Utah-based self-storage real estate investment trust (REIT) delivered a surprise of 4.41% in terms of FFO per share. Results reflected a better-than-anticipated top line. The same-store net operating income (NOI) improved year over year, partially offset by higher same-store operating expenses.
Over the trailing four quarters, the company surpassed the Zacks Consensus Estimate on each occasion, the average beat being 5.84%. The graph below depicts this surprise history:
Let’s see how things have shaped up before this announcement.
Factors to Consider
Extra Space Storage is likely to have continued to benefit from its solid presence in key cities and measures to boost the company’s geographical footprint through accretive acquisitions and third-party management in the third quarter.
High brand value and technological advantage are expected to have aided EXR’s top and bottom lines in the quarter under consideration. Also, this REIT is likely to have maintained a healthy balance sheet position.
Amid these, Extra Space Storage is likely to have seen growth in revenues in the quarter to be reported with healthy rental rates. However, with the impact of the pandemic abating, vacancy is likely to increase. The consensus mark for third-quarter same-store square foot occupancy is expected to have been 95.45%, down from 95.90% in the prior quarter and 95.80% in the year-ago period.
The Zacks Consensus Estimate of $412.5 million for quarterly property rental revenues suggests an increase from the prior quarter’s $408.04 million and the year-ago period’s $351.36 million. Management and franchise fees for the quarter are projected at $20.68 million, indicating an improvement from the prior quarter’s $20.52 million and the year-ago quarter’s $16.88 million.
Same-store rental revenues for the quarter are pegged at $360.21 million, suggesting a slight decrease from the prior quarter’s $362.19 million but up from the year-ago period’s $318.45 million.
The Zacks Consensus Estimate of $496.4 million for quarterly revenues suggests a 20.3% increase year over year.
Extra Space Storage’s activities during the quarter were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has moved two cents north to $2.18 in the past two months. It also calls for a 17.8% year-over-year rise.
However, EXR operates in a highly fragmented market in the United States, with intense competition from numerous private, regional and local operators. In addition, there is a development boom of self-storage units in several markets. This high supply is likely to have fueled competition.
Here Is What Our Quantitative Model Predicts:
Our proven model predicts a surprise in terms of 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 carries a Zacks Rank of 3 and has an Earnings ESP of +1.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are some other stocks from the broader REIT sector — Public Storage (PSA - Free Report) and SBA Communications Corporation (SBAC - Free Report) — that you may want to consider as our model shows that these too have the right combination of elements to report a surprise this quarter.
SBA Communications Corporation, scheduled to report quarterly numbers on Oct 31, currently has an Earnings ESP of +0.44% and carries a Zacks Rank of 3.
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.
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What's in Store for Extra Space Storage (EXR) in Q3 Earnings?
Extra Space Storage (EXR - Free Report) is slated to report third-quarter 2022 results on Nov 1 after market close. Its quarterly revenues and funds from operations (FFO) per share are likely to have witnessed year-over-year increases.
In the last reported quarter, this Salt Lake City, Utah-based self-storage real estate investment trust (REIT) delivered a surprise of 4.41% in terms of FFO per share. Results reflected a better-than-anticipated top line. The same-store net operating income (NOI) improved year over year, partially offset by higher same-store operating expenses.
Over the trailing four quarters, the company surpassed the Zacks Consensus Estimate on each occasion, the average beat being 5.84%. 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 Quote
Let’s see how things have shaped up before this announcement.
Factors to Consider
Extra Space Storage is likely to have continued to benefit from its solid presence in key cities and measures to boost the company’s geographical footprint through accretive acquisitions and third-party management in the third quarter.
High brand value and technological advantage are expected to have aided EXR’s top and bottom lines in the quarter under consideration. Also, this REIT is likely to have maintained a healthy balance sheet position.
Amid these, Extra Space Storage is likely to have seen growth in revenues in the quarter to be reported with healthy rental rates. However, with the impact of the pandemic abating, vacancy is likely to increase. The consensus mark for third-quarter same-store square foot occupancy is expected to have been 95.45%, down from 95.90% in the prior quarter and 95.80% in the year-ago period.
The Zacks Consensus Estimate of $412.5 million for quarterly property rental revenues suggests an increase from the prior quarter’s $408.04 million and the year-ago period’s $351.36 million. Management and franchise fees for the quarter are projected at $20.68 million, indicating an improvement from the prior quarter’s $20.52 million and the year-ago quarter’s $16.88 million.
Same-store rental revenues for the quarter are pegged at $360.21 million, suggesting a slight decrease from the prior quarter’s $362.19 million but up from the year-ago period’s $318.45 million.
The Zacks Consensus Estimate of $496.4 million for quarterly revenues suggests a 20.3% increase year over year.
Extra Space Storage’s activities during the quarter were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has moved two cents north to $2.18 in the past two months. It also calls for a 17.8% year-over-year rise.
However, EXR operates in a highly fragmented market in the United States, with intense competition from numerous private, regional and local operators. In addition, there is a development boom of self-storage units in several markets. This high supply is likely to have fueled competition.
Here Is What Our Quantitative Model Predicts:
Our proven model predicts a surprise in terms of 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 carries a Zacks Rank of 3 and has an Earnings ESP of +1.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are some other stocks from the broader REIT sector — Public Storage (PSA - Free Report) and SBA Communications Corporation (SBAC - Free Report) — that you may want to consider as our model shows that these too have the right combination of elements to report a surprise this quarter.
Public Storage, slated to release quarterly numbers on Nov 1, has an Earnings ESP of +1.34% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SBA Communications Corporation, scheduled to report quarterly numbers on Oct 31, currently has an Earnings ESP of +0.44% and carries a Zacks Rank of 3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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.