Extra Space Storage Inc. (EXR) Bundle
A Brief History of Extra Space Storage Inc.
Company Overview
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed Real Estate Investment Trust (REIT) and a member of the S&P 500. As of September 30, 2024, the Company owned and/or operated 3,862 self-storage stores across 42 states and Washington, D.C., with approximately 2.7 million units and around 296.7 million square feet of rentable space. The stores operate under the Extra Space, Life Storage, and Storage Express brands, making it the largest operator of self-storage properties in the United States.
Financial Performance
For the three months ended September 30, 2024, Extra Space Storage reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $824,804,000 | $748,034,000 | 10.2% |
| Net Income | $202,945,000 | $198,856,000 | 1.0% |
| FFO (Funds from Operations) | $388,831,000 | $348,459,000 | 11.6% |
| Core FFO | $457,919,000 | $415,821,000 | 10.1% |
| Earnings Per Share (EPS) | $0.91 | $0.96 | -5.2% |
Acquisitions and Growth
In 2024, Extra Space Storage has been active in expanding its portfolio:
- Acquired 17 operating stores and three Certificate of Occupancy (C of O) stores for approximately $226.6 million.
- Partnered in acquiring five operating stores and completing five developments for a total cost of about $163.7 million.
- Originated $755.9 million in mortgage and mezzanine bridge loans and sold $190.1 million in mortgage bridge loans.
Market Conditions
As of September 30, 2024, the average same-store square foot occupancy stood at 94.4%, compared to 93.9% in the previous year. The company reported an increase in same-store revenue of 0.4% and a decrease in same-store net operating income (NOI) of 0.9% from the prior year.
Balance Sheet Highlights
As of September 30, 2024, Extra Space Storage reported the following balance sheet metrics:
| Asset/Liability | Amount (in thousands) |
|---|---|
| Total Assets | $28,063,117 |
| Total Liabilities | $13,104,434 |
| Stockholders' Equity | $14,010,613 |
Outlook and Future Projections
For the year ending December 31, 2024, the projected Core FFO per share ranges between $8.00 and $8.15. The company anticipates same-store revenue growth between -0.25% and 0.50%, with same-store NOI growth projected between -2.25% and -0.50%.
A Who Owns Extra Space Storage Inc. (EXR)
Major Shareholders
As of 2024, Extra Space Storage Inc. (EXR) has a diverse ownership structure. The top institutional shareholders include:
| Shareholder Name | Ownership Percentage | Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 8.25% | 17,500,000 |
| BlackRock, Inc. | 7.55% | 15,800,000 |
| State Street Corporation | 4.80% | 10,100,000 |
| Nuveen LLC | 3.20% | 6,750,000 |
| Wellington Management Group LLP | 3.10% | 6,500,000 |
Insider Ownership
Insider ownership is also a significant aspect of Extra Space Storage's equity structure. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| Joe Margolis | Chief Executive Officer | 250,000 |
| Randy D. Smith | Chief Financial Officer | 150,000 |
| J. Michael O'Brien | Chief Operating Officer | 200,000 |
Stock Performance and Financials
Extra Space Storage has shown robust performance in the stock market. As of September 30, 2024, the stock price was approximately $60.25, with a year-to-date return of 15.3%. The financial highlights for the third quarter of 2024 include:
| Financial Metric | Value |
|---|---|
| Net Income (Q3 2024) | $202.9 million |
| Earnings Per Share (EPS) | $0.91 |
| Funds from Operations (FFO) | $388.8 million |
| Core FFO | $457.9 million |
| Dividends Paid Per Share | $1.62 |
Market Capitalization
The market capitalization of Extra Space Storage Inc. as of September 30, 2024, is approximately $12.75 billion, making it one of the largest self-storage REITs in the United States.
Ownership Summary
The ownership of Extra Space Storage is characterized by substantial institutional investments, a solid insider presence, and strong stock performance. The company continues to pursue growth through strategic acquisitions and efficient management of its extensive self-storage portfolio.
Extra Space Storage Inc. (EXR) Mission Statement
Current Mission Statement
As of 2024, Extra Space Storage Inc. (EXR) defines its mission as providing an exceptional self-storage experience for its customers by offering the most convenient locations, a wide variety of unit sizes, and outstanding customer service. The company aims to create value for its shareholders while maintaining a commitment to sustainability and community engagement.
Financial Performance Overview
Extra Space Storage has shown robust financial performance. For the third quarter of 2024, the company reported:
| Metric | 2024 Q3 | 2023 Q3 | Change (%) |
|---|---|---|---|
| Total Revenues | $824,804,000 | $748,034,000 | 10.2% |
| Net Income | $193,210,000 | $188,350,000 | 1.0% |
| FFO (Funds From Operations) | $388,831,000 | $348,459,000 | 11.6% |
| Core FFO | $457,919,000 | $415,821,000 | 10.1% |
| Cash Dividends per Share | $1.62 | $1.62 | 0.0% |
Operational Highlights
As of September 30, 2024, Extra Space Storage operated a total of:
- 3,862 self-storage stores across 42 states and Washington, D.C.
- Approximately 2.7 million units and 296.7 million square feet of rentable space.
- Management of 1,921 stores, including 1,461 for third-party owners.
Same-Store Performance Metrics
For the third quarter of 2024, the company's same-store performance metrics included:
| Metric | 2024 Q3 | 2023 Q3 | Change (%) |
|---|---|---|---|
| Same-Store Revenue | $424,037,000 | $425,262,000 | (0.3)% |
| Same-Store NOI (Net Operating Income) | $314,258,000 | $317,570,000 | (1.0)% |
| Same-Store Occupancy Rate | 94.4% | 93.9% | 0.5% |
Strategic Initiatives
Extra Space Storage continues to pursue growth through:
- Acquisitions: In 2024, the company acquired 17 operating stores and three Certificate of Occupancy (C of O) stores for approximately $226.6 million.
- Joint Ventures: Collaborated on acquisitions and developments valued at about $163.7 million.
- Bridge Loans: Originated $755.9 million in mortgage and mezzanine bridge loans.
Market Position and Outlook
Extra Space Storage is recognized as the largest self-storage operator in the U.S., with a strong outlook for continued growth. The company reported a revised credit outlook to positive from stable by Moody's Ratings.
Dividends and Shareholder Returns
As of September 30, 2024, the company maintained a steady dividend payout:
- Quarterly dividend of $1.62 per share.
- Year-to-date cash dividends paid per common share totaled $4.86.
Future Projections
For the year ending December 31, 2024, Extra Space Storage expects:
| Metric | Low Estimate | High Estimate |
|---|---|---|
| Core FFO per Share | $8.00 | $8.15 |
| Net Income | $946,125,000 | $974,625,000 |
| Same-Store Revenue Growth | (0.25)% | 0.50% |
Extra Space Storage continues to focus on optimizing its operational efficiency and enhancing customer satisfaction while delivering solid financial returns to its shareholders.
How Extra Space Storage Inc. (EXR) Works
Business Model
Extra Space Storage Inc. (EXR) operates as a real estate investment trust (REIT) focused on the ownership, operation, and acquisition of self-storage facilities. The company offers various storage solutions, including climate-controlled units, RV and boat storage, and business storage options.
Financial Performance
As of September 30, 2024, Extra Space Storage reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Income Attributable to Common Stockholders | $193,210,000 | $188,350,000 | $592,194,000 | $587,064,000 |
| Earnings Per Share (Diluted) | $0.91 | $0.96 | $2.79 | $3.78 |
| Funds from Operations (FFO) | $388,831,000 | $348,459,000 | $1,243,835,000 | $933,563,000 |
| Core FFO | $457,919,000 | $415,821,000 | $1,349,359,000 | $1,000,925,000 |
| Same-Store Revenue Growth | -0.3% | 0.4% | 0.4% | 0.5% |
| Same-Store NOI Growth | -1.0% | -0.9% | -0.9% | -0.9% |
Debt and Capital Structure
As of September 30, 2024, Extra Space Storage maintained a significant amount of debt:
| Debt Type | Amount |
|---|---|
| Secured Notes Payable | $1,011,705,000 |
| Unsecured Term Loans | $2,194,894,000 |
| Unsecured Senior Notes | $7,437,231,000 |
| Revolving Lines of Credit | $884,000,000 |
The percentage of fixed-rate debt to total debt was reported at 78.3%, with a combined weighted average interest rate of 4.5% and a weighted average maturity of approximately 4.7 years.
Occupancy Rates
As of September 30, 2024, Extra Space Storage reported a same-store occupancy rate of 94.3%, up from 93.7% in the previous year.
Acquisitions and Developments
During the nine months ended September 30, 2024, Extra Space Storage engaged in significant acquisition activity:
| Type of Acquisition | Number of Stores | Total Cost |
|---|---|---|
| Operating Stores | 17 | $226,637,000 |
| C of O and Development Stores | 3 | $34,337,000 |
| Joint Venture Acquisitions | 5 | $77,735,000 |
Dividends
On September 30, 2024, Extra Space Storage declared a quarterly dividend of $1.62 per share, consistent with the previous quarter.
Third-Party Management
As of September 30, 2024, the company managed a total of 1,921 stores, which includes 1,461 stores for third-party owners and 460 stores in unconsolidated joint ventures.
Market Position
Extra Space Storage is recognized as one of the largest self-storage management companies in the United States, maintaining a strong position in the market through strategic acquisitions and effective management practices.
How Extra Space Storage Inc. (EXR) Makes Money
Revenue Streams
Extra Space Storage Inc. generates revenue primarily through the operation of self-storage facilities, which include:
- Property Rental Income: As of September 30, 2024, property rental revenue was $710,874,000 for the quarter and $2,096,018,000 year-to-date.
- Tenant Reinsurance: The company reported tenant reinsurance revenue of $84,048,000 for the quarter and $249,100,000 year-to-date.
- Management Fees and Other Income: Total management fees and other income amounted to $29,882,000 for the quarter and $89,888,000 year-to-date.
| Revenue Source | Q3 2024 Revenue (in thousands) | YTD 2024 Revenue (in thousands) |
|---|---|---|
| Property Rental Income | $710,874 | $2,096,018 |
| Tenant Reinsurance | $84,048 | $249,100 |
| Management Fees and Other Income | $29,882 | $89,888 |
| Total Revenue | $824,804 | $2,435,006 |
Operational Performance
For the three months ended September 30, 2024, Extra Space Storage reported:
- Same-store Revenue: Decreased by 0.3% year-over-year.
- Same-store Net Operating Income (NOI): Decreased by 1.0% year-over-year.
- Same-store Occupancy Rate: 94.3%, compared to 93.7% in the prior year.
| Performance Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Same-store Revenue (in thousands) | $424,037 | $425,262 |
| Same-store NOI (in thousands) | $314,258 | $317,570 |
| Same-store Operating Expenses (in thousands) | $109,779 | $107,692 |
| Same-store Occupancy Rate | 94.3% | 93.7% |
Financial Metrics
As of the third quarter of 2024:
- Net Income: $202,945,000 for the quarter, $622,431,000 year-to-date.
- Earnings per Share: $0.91 diluted for the quarter, $2.79 diluted year-to-date.
- Funds from Operations (FFO): $1.75 per diluted share for the quarter, $5.61 year-to-date.
- Core FFO: $2.07 per diluted share for the quarter, $6.09 year-to-date.
| Financial Metric | Q3 2024 | YTD 2024 |
|---|---|---|
| Net Income (in thousands) | $202,945 | $622,431 |
| Earnings per Share (diluted) | $0.91 | $2.79 |
| FFO per Share (diluted) | $1.75 | $5.61 |
| Core FFO per Share (diluted) | $2.07 | $6.09 |
Acquisitions and Investments
During Q3 2024, Extra Space Storage made several key acquisitions:
- Acquired 10 operating stores and one C of O store for approximately $163.9 million.
- In partnership with joint ventures, acquired five properties and completed two developments for a total cost of approximately $114.6 million, with a company investment of $30.7 million.
- Originated $158.4 million in mortgage and mezzanine bridge loans, and sold $179 million in mortgage bridge loans.
| Acquisition Type | Number of Stores | Investment Amount (in thousands) |
|---|---|---|
| Operating Stores | 10 | $163,900 |
| C of O Stores | 1 | $30,700 |
| Joint Venture Acquisitions | 5 | $114,600 |
| Total Investment | 16 | $309,200 |
Dividends
Extra Space Storage paid a quarterly dividend of $1.62 per share as of September 30, 2024.
Balance Sheet Highlights
As of September 30, 2024, the company reported:
- Total Assets: $28,063,117,000
- Total Liabilities: $13,104,434,000
- Stockholders' Equity: $14,010,613,000
| Balance Sheet Item | Value (in thousands) |
|---|---|
| Total Assets | $28,063,117 |
| Total Liabilities | $13,104,434 |
| Stockholders' Equity | $14,010,613 |
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Article updated on 8 Nov 2024
Resources:
- Extra Space Storage Inc. (EXR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Extra Space Storage Inc. (EXR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Extra Space Storage Inc. (EXR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.