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Should Extra Space Storage Stock Be in Your Portfolio Pre-Q1 Earnings?
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Key Takeaways
EXR is set to report Q1 results with expected YoY growth in revenue and FFO per share.
EXR benefits from strong brand, diversification and resilient self-storage demand trends.
EXR faces pricing pressure from high supply and intense market competition.
Extra Space Storage (EXR - Free Report) , a leading self-storage real estate investment trust (REIT) in the United States, is set to release its first-quarter 2026 results on April 28, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Salt Lake City, UT-based REIT reported FFO per share of $2.08, surpassing the Zacks Consensus Estimate of $2.03. Results reflected a year-over-year increase in same-store NOI. However, lower occupancy during the quarter was 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 1.25%. The graph below depicts this surprise history:
In the first 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. The self-storage asset category is need-based and recession-resilient in nature. 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 $726.7 million for quarterly property rental revenues suggests an increase from the year-ago period’s $704.4 million. The consensus estimate for revenues from tenant reinsurance is pegged at $89.6 million, which jumped from $84.7 million reported in the year-ago period. The consensus mark for management fees and other income for the quarter stands at $33.2 million, up from $30.9 million in the year-ago period.
The Zacks Consensus Estimate of $850.4 million for quarterly revenues suggests a 3.70% increase year over year.
EXR operates in a highly fragmented market in the United States, facing intense competition from numerous operators. This competitive environment is likely to have weighed on pricing in the to-be-reported quarter.
Extra Space Storage’s activities during the quarter were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has moved a cent southward to $2.01 over the past month. However, it indicates 0.5% rise compared to the year-ago reported figure.
What Our Quantitative Model Predicts for EXR
Our proven model does not conclusively predict 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 not the case here.
Extra Space Storage currently has an Earnings ESP of -1.73% 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.
Stocks That Warrant a Look
Here are two stocks from the broader REIT industry — BXP, Inc. (BXP - Free Report) and Cousins Properties (CUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Cousins Properties is slated to report quarterly numbers on April 29. VTR has an Earnings ESP of +0.94% and carries a Zacks Rank of 3 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.
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Should Extra Space Storage Stock Be in Your Portfolio Pre-Q1 Earnings?
Key Takeaways
Extra Space Storage (EXR - Free Report) , a leading self-storage real estate investment trust (REIT) in the United States, is set to release its first-quarter 2026 results on April 28, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Salt Lake City, UT-based REIT reported FFO per share of $2.08, surpassing the Zacks Consensus Estimate of $2.03. Results reflected a year-over-year increase in same-store NOI. However, lower occupancy during the quarter was 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 1.25%. 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
Factors to Consider and Projections for EXR
In the first 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. The self-storage asset category is need-based and recession-resilient in nature. 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 $726.7 million for quarterly property rental revenues suggests an increase from the year-ago period’s $704.4 million. The consensus estimate for revenues from tenant reinsurance is pegged at $89.6 million, which jumped from $84.7 million reported in the year-ago period. The consensus mark for management fees and other income for the quarter stands at $33.2 million, up from $30.9 million in the year-ago period.
The Zacks Consensus Estimate of $850.4 million for quarterly revenues suggests a 3.70% increase year over year.
EXR operates in a highly fragmented market in the United States, facing intense competition from numerous operators. This competitive environment is likely to have weighed on pricing in the to-be-reported quarter.
Extra Space Storage’s activities during the quarter were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has moved a cent southward to $2.01 over the past month. However, it indicates 0.5% rise compared to the year-ago reported figure.
What Our Quantitative Model Predicts for EXR
Our proven model does not conclusively predict 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 not the case here.
Extra Space Storage currently has an Earnings ESP of -1.73% 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.
Stocks That Warrant a Look
Here are two stocks from the broader REIT industry — BXP, Inc. (BXP - Free Report) and Cousins Properties (CUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
BXP, scheduled to report quarterly numbers on April 28, has an Earnings ESP of +0.17% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins Properties is slated to report quarterly numbers on April 29. VTR has an Earnings ESP of +0.94% and carries a Zacks Rank of 3 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.