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Extra Space Storage Q3 Core FFO Beats Estimates, Revenues Lag

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Key Takeaways

  • Extra Space Storage posted Q3 core FFO of $2.08 per share, topping the consensus estimate of $2.06.
  • Quarterly revenues rose 4.1% year over year to $858.5 million but missed analyst expectations.
  • Higher same-store and interest expenses pressured margins despite improved occupancy at 93.7%.

Extra Space Storage Inc. (EXR - Free Report) 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 Detail

Same-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 Activity

During 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 Position

Extra 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 Guidance

Extra 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 Rank

Extra 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 and EPS Surprise

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

Performance of Other REITs

Digital Realty Trust (DLR - Free Report) 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 - Free Report) 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.


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