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Extra Space Storage Inc. EXR reported fourth-quarter 2024 core funds from operations (FFO) per share of $2.03, beating the Zacks Consensus Estimate by a penny. The figure increased 0.5% from the prior-year quarter.
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The results reflect higher revenues due to growth in occupancy. Lower same-store net operating income (NOI) during the quarter was a spoilsport.
Quarterly revenues of $821.9 million missed the Zacks Consensus Estimate of $831.5 million. However, the top line increased 3% year over year.
Per Joe Margolis, CEO of Extra Space Storage, “The outsized growth in our third-party management, bridge loan and insurance businesses, as well as our ability to find creative and off-market investment opportunities, continue to provide an avenue of growth in an otherwise tough operating environment, and contribute to Core FFO per share growth modestly ahead of our projections.”
For full-year 2024, core FFO per share was $8.12, up 0.2% from the prior-year tally and surpassed the Zacks Consensus Estimate of $8.10. Moreover, revenues grew 27.2% to $3.26 billion.
Extra Space Storage Inc Price, Consensus and EPS Surprise
Extra Space Storage Inc price-consensus-eps-surprise-chart | Extra Space Storage Inc Quote
EXR’s Fourth Quarter in Detail
Same-store revenues decreased 0.4% year over year to $415.9 million in the fourth quarter. This downtick resulted from a fall in both net rental income and other income.
Same-store operating expenses rose 9.5% year over year to $110.5 million, reflecting an increase in marketing, payroll and benefits, property operating expenses, repairs and maintenance, and property taxes.
Same-store NOI decreased 3.5% year over year to $305.4 million.
The same-store square-foot occupancy expanded 120 basis points year over year to 93.7% as of Dec. 31, 2024. Our estimate was pegged at 93.2%.
EXR’s Portfolio Activity
During the October-December quarter, Extra Space Storage acquired 38 operating stores for around $359.7 million.
The company increased its ownership stake in two existing joint venture (JV) partnerships to 49% for $251.2 million.
Extra Space Storage added 130 stores (114 stores net) to its third-party management platform. As of Dec. 31, 2024, it managed 1,575 stores for third parties and 460 stores in unconsolidated JVs, with a total store count of 2,035 under management.
EXR’s Balance Sheet Position
Extra Space Storage exited the fourth quarter with $138.2 million of cash and cash equivalents, up from $88.9 million recorded as of Sept. 30, 2024.