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(Reuters) - Extra Space Storage beat Wall Street expectations for first-quarter revenue and funds from operations (FFO) on Tuesday, driven by high occupancy rates and the expansion of its low-capital business lines.
The Salt Lake City, Utah-based real estate investment trust (REIT) reported total revenue of $819.9 million for the quarter ended March 31, up from $799.5 million in the same period a year earlier. On average, analysts expected revenue of $763.5 million in the quarter, according to data compiled by LSEG.
As part of its capital-light ancillary businesses, the company offers services such as third-party management of storage properties, tenant insurance programs and data services, among others.
The self-storage operator expects its FFO for 2025 to be in a range of $8 to $8.3 per share, with the mid-point exceeding analysts' estimates of $8.2 per share.
The company may benefit from increased demand as importers and retailers frontload shipments in anticipation of tariff-related price hikes, driving the need for flexible, short-term storage solutions.
The REIT's same‑store occupancy rate for the quarter stood at 93.4%, compared to 92.4% in the same period last year.
"The recent economic uncertainty has caused us to maintain our same-store guidance. While the current environment is volatile and may lead to difficult economic times," said CEO Joe Margolis.
The company reported a core FFO of $2 per share for the quarter, surpassing analysts' estimates of $1.98 per share.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Mohammed Safi Shamsi)