Extra Space Storage Q4 Net Income Up 21.6%

By Bobby Samwell • Wednesday, February 26 06:16 • Permanent Link

Extra Space Storage Inc. has reported its operating results for the fourth quarter and year ended December 31, 2024. The company achieved a net income attributable to common stockholders of $1.24 per diluted share for the fourth quarter, representing a 21.6% increase compared to the same period in the prior year. Funds from operations attributable to common stockholders and unit holders (FFO) was reported at $1.96 per diluted share, with core FFO at $2.03 per diluted share, representing a 0.5% increase compared to the same period in the prior year.

However, same-store revenue decreased by 0.4%, and same-store net operating income (NOI) decreased by 3.5% compared to the same period in the prior year. The reported ending same-store occupancy was at 93.7% as of December 31, 2024, compared to 92.5% as of December 31, 2023.

For the year ended December 31, 2024, the company achieved net income attributable to common stockholders of $4.03 per diluted share, representing a 15.0% decrease compared to the same period in the prior year. FFO was reported at $7.57 per diluted share, and core FFO at $8.12 per diluted share, representing a 0.2% increase compared to the same period in the prior year.

The company acquired 38 operating stores for a total cost of approximately $359.7 million during the fourth quarter and increased ownership interest in two existing joint venture partnerships to 49.0% for $251.2 million. Additionally, 130 stores (114 stores net) were added to the company's third-party management platform, bringing the total to 2,035 managed stores.

The company initiated an unsecured commercial paper program with a total capacity of $1.0 billion, with $500.0 million in outstanding issuances as of December 31, 2024. The quarterly dividend paid was $1.62 per share.

In terms of property performance, same-store property revenues saw a decrease of 0.2% in net rental income and 5.4% in other income for the fourth quarter of 2024, compared to the same period in the prior year. Same-store NOI saw a decrease of 3.5% for the same period.

Looking ahead, the company provided its current and prior quarter core FFO estimates and assumptions for the year ending December 31, 2025, with a range of $8.00 to $8.30 for core FFO per share. Following these announcements, the company's shares moved 1.4%, and are now trading at a price of $161.28. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.