In This Article:
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Core FFO: $2 per share, a 2% increase year-over-year.
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Same Store Occupancy: 93.4%, an improvement of 100 basis points from Q1 2024.
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Same Store Revenue Growth: 0.3% increase.
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Wholly Owned Acquisitions: $153.8 million, adding 12 stores.
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Joint Venture Dissolution: Realized an embedded promote of $1.7 million.
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Bridge Loan Program: $53.2 million in loans closed; $27.7 million in loans sold.
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Third-Party Managed Portfolio: Net addition of 100 properties, totaling 1,675 stores.
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Controllable Expenses: Reduced by 1.9% year-over-year.
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Uncontrollable Expenses: Increased by 8% due to property tax and weather-related expenses.
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Same Store NOI: Decrease of 1.2% compared to Q1 2024.
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Bond Offerings: $350 million at 5.17% (5-year) and $500 million at 5.4% (10-year).
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Weighted Average Interest Rate: 4.4%.
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Debt Profile: Almost 90% at fixed rates.
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Annual Acquisition Guidance: Increased to account for JV buyouts.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Extra Space Storage Inc (NYSE:EXR) reported a solid first quarter with a core FFO of $2 per share, representing a 2% increase year-over-year.
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Same store occupancy remained high at 93.4%, showing resilience and effective management strategies.
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The company completed $153.8 million in wholly owned acquisitions, adding 12 high-quality stores to its portfolio.
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The management plus platform showed remarkable growth, adding a net of 100 properties, reinforcing its position as a leading third-party management provider.
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Extra Space Storage Inc (NYSE:EXR) maintained a conservative leverage profile with almost 90% of its debt at fixed rates, insulating it from interest rate fluctuations.
Negative Points
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Uncontrollable expenses increased by 8% due to property tax pressure and weather-related expenses, leading to a same store NOI decrease of 1.2%.
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The company did not raise its guidance despite strong performance, indicating caution due to economic uncertainties.
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There is continued pressure from property taxes and other uncontrollable costs, which could impact future financial performance.
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The acquisition market remains muted with continued bid-ask spread issues, affecting potential growth opportunities.
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The company faces challenges from macroeconomic factors such as interest rate volatility and economic uncertainty, which could impact future performance.
Q & A Highlights
Q: Michael Goldsmith from UBS asked about the significant improvement in street rates during the first quarter and whether demand is picking up. He also inquired about conditions in April. A: Peter Stubbs, CFO, explained that street rates improved from negative 9% in Q3 last year to flat by the end of Q1 2025. He noted that while the improvement is encouraging, it's too early to predict trends for the rental season.