Extra Space raises annual Core FFO forecast as revenue tops estimates

Extra Space Storage Inc. (EXR) said on Oct. 27 that third-quarter revenue rose to $889.79 million, and it raised its full-year Core FFO forecast. The results cover the three months ended Sept. 30, 2026.

The company, headquartered in Salt Lake City, Utah, is a self-administered REIT that owned or operated 4,411 self-storage stores in 43 states and Washington, D.C., as of Sept. 30.

Revenue topped the $829.41 million consensus estimate compiled by Finnhub.

Here's how the company did:

• Revenue: $889.79 million vs. $858.46 million a year earlier, according to Finnhub estimate $829.41 million
• Diluted EPS: $1.17 vs. $0.78 a year earlier
• Core FFO per diluted share: $2.17 vs. $2.08 a year earlier
• FFO per diluted share: $2.12 vs. $2.01 a year earlier

The company said net income attributable to common stockholders was $247.76 million, or $1.17 per diluted share, up from $166.00 million a year earlier. Diluted earnings per share rose 50.0% from a year earlier, a comparison the company tied in part to a loss on real estate assets it sold in 2025.

Core FFO per diluted share rose 4.3% from a year earlier, to $2.17. For the nine months, Core FFO was $6.37 per diluted share, up 3.9% from the same period a year earlier.

CEO Joe Margolis said: “Our platform, portfolio and people continue to outperform, with Core FFO per share growth of 4.3% and accelerating same-store performance.” He added: “We remain focused on disciplined capital allocation and compounding long-term value per share, including through the opportunistic repurchase of our shares this quarter.”

Same-store performance

Same-store revenue increased 2.7% from a year earlier, and same-store expenses decreased 1.8%. Same-store net operating income rose 4.6%.

Same-store occupancy was 94.0% as of Sept. 30, compared with 93.7% a year earlier. The same-store pool includes 1,869 stores.

The company sold one operating property, one land parcel and one property marketed for sale during the quarter. The properties sold and the property held for sale resulted in a net loss of $5.8 million, compared with a loss of $105.1 million a year earlier.

2026 guidance

The company raised its 2026 Core FFO forecast to $8.40 to $8.50 per share. That compares with the $8.25 to $8.40 range it gave on July 28.

It now expects same-store revenue growth of 2.00% to 2.50%, up from 1.00% to 2.00%. Same-store net operating income growth is now forecast at 2.50% to 3.50%, from 0.50% to 2.50%.

The company lowered its same-store expense growth forecast to 0.00% to 0.50%, from 1.00% to 2.00%. It expects acquisitions of $400 million for the year, up from $300 million, including investments in joint ventures.

Leadership transition

The company announced on Aug. 24 that Noah Springer, president, will become chief executive officer effective Jan. 1, 2027. Margolis will retire at the end of the year and serve as an adviser to the board.

Balance sheet and capital returns

The company repurchased 2,390,497 shares for $327.1 million in the quarter, at an average price of $136.85. After quarter end, it repurchased 164,724 shares for $21.8 million, fully using its $500.0 million repurchase program.

On Oct. 15, the board authorized an updated repurchase program allowing for up to $500.0 million in share repurchases.

The company paid a quarterly dividend of $1.62 per share on Sept. 30, to holders of record on Sept. 15. The dividend rate was unchanged from a year earlier.

As of Sept. 30, fixed-rate debt was 79.6% of total debt. The combined weighted average interest rate was 4.4%, with a weighted average maturity of about 4.0 years. Commercial paper had $850.0 million outstanding against $1.0 billion of capacity.

The company will host a conference call on Oct. 28 at 1:00 p.m. Eastern Time to discuss the results.