Extra Space Storage Inc. has recently released its 10-Q report, providing a detailed insight into its financial performance for the first quarter of 2024. The company, headquartered in Salt Lake City, Utah, is a self-administered and self-managed real estate investment trust (REIT) and a member of the S&P 500. As of December 31, 2023, the company owned and/or operated 3,714 self-storage stores in 42 states and Washington, D.C., comprising approximately 2.6 million units and 283.0 million square feet of rentable space. The stores operate under the Extra Space, Life Storage, and Storage Express brands, offering a wide selection of conveniently located and secure storage units, including boat storage, RV storage, and business storage, making it the largest operator of self-storage properties in the United States.
The 10-Q report provides a comprehensive overview of the company's management's discussion and analysis of financial condition and results of operations. The report emphasizes that the company's operating results depend on its ability to lease available self-storage units, actively manage unit rental rates, and ensure tenants' ability to make required rental payments. The company's revenue is derived from two primary segments: storage operations and tenant reinsurance. The report also highlights the company's focus on maximizing cash flows from its diverse portfolio of stores and its ability to respond to changing market conditions through industry-leading revenue management systems.
As of March 31, 2024, Extra Space Storage owned or had ownership interests in 2,384 operating stores, with an additional 1,409 stores managed for third parties, bringing the total number of stores owned and/or managed to 3,793. The report also provides insights into the average length of stay for tenants, the average annual rent per square foot, and the types of construction and building configurations within its store portfolio.
The report further delves into the financial performance of the company, comparing the results for the three months ended March 31, 2024, with the same period in 2023. It outlines the revenues earned from property rental, tenant reinsurance, and management fees and other income, which saw significant increases compared to the previous year. Additionally, the report details the expenses incurred, including property operations, tenant reinsurance, general and administrative expenses, and depreciation and amortization.
Furthermore, the 10-Q report provides insights into other revenues and expenses, such as interest expense, interest income, equity in earnings, dividend income from unconsolidated real estate entities, and income tax expense. The report highlights the company's increased interest expense due to a higher debt balance and a higher weighted average interest rate compared to the previous year.
The market has reacted to these announcements by moving the company's shares 1.5% to a price of $141.87. For more information, read the company's full 10-Q submission here.
