Yahoo Finance

• Core FFO (Q4 2024): $2.03 per share

• Full Year Core FFO (2024): $8.12 per share

• Same-Store Revenue (Q4 2024): Decrease of 0.4%

• Same-Store NOI (Q4 2024): Negative 3.5%

• Property Taxes Impact: Higher than estimated, contributing to 9.5% increase in same-store expenses

• Investment in 2024: $950 million in joint ventures, structured, and wholly owned investments

• Bridge Loan Origination (Q4 2024): $224 million

• Total Bridge Loan Origination (2024): $980 million

• Third-Party Management Growth (Q4 2024): 114 net new stores

• Total Net New Managed Stores (2024): 238 stores

• Bond Reopenings (Q4 2024): $300 million

• Bond Reopenings (Q1 2025): $350 million

• Commercial Paper Program Initiation (Q4 2024): $1 billion

• 2025 Core FFO Guidance: $8 to $8.30 per share

• 2025 Same-Store Revenue Guidance: Negative 0.75% to positive 1.25%

• 2025 Same-Store Expense Growth Guidance: Positive 3.75% to 5.25%

• 2025 Same-Store NOI Guidance: Negative 3% to positive 0.25%

• Warning! GuruFocus has detected 7 Warning Signs with EXR.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Extra Space Storage Inc (NYSE:EXR) reported core FFO of $2.03 per share for Q4 2024, slightly ahead of internal expectations.

• The company maintained near-record occupancy levels, indicating strong demand and operational efficiency.

• Extra Space Storage Inc (NYSE:EXR) successfully integrated Life Storage stores into its brand, resulting in marketing savings and increased rental activity.

• The company invested $950 million in joint ventures and other investments in 2024, with a significant portion occurring in Q4, showcasing robust external growth strategies.

• Extra Space Storage Inc (NYSE:EXR) expanded its third-party management program significantly, adding 238 net new managed stores in 2024, marking its best growth year in this segment.

Negative Points

• Same-store revenue decreased by 0.4% in Q4 2024 due to lower new customer rates, despite strong occupancy.

• Property taxes exceeded expectations, contributing to a same-store NOI decline of 3.5% in the quarter.

• The company faces challenges in regaining pricing power with new customers, impacting revenue growth potential.

• Guidance for 2025 includes a potential 20-basis-point revenue headwind due to state of emergency restrictions in Los Angeles County.

• Property tax increases in states like Georgia, Illinois, and Indiana are expected to continue, with a budgeted increase of 6% to 8% for 2025.

Q & A Highlights

Q: Can you elaborate on your guidance regarding pricing power and rate trends for the year? A: Joseph Margolis, CEO: Our rates were down about 9% in the third quarter of last year and ended the year down about 6%. Currently, rates are essentially flat. We expect moderate improvement in rates and a slight benefit from occupancy throughout the year, but we do not anticipate a significant recovery in the housing market.