Extra Space Storage Inc. has recently released its 10-K report, revealing that as of September 30, 2025, the company owned and/or operated 4,238 self-storage stores in 43 states and Washington, D.C., comprising approximately 2.9 million units and 326.9 million square feet of rentable space. The company offers a wide selection of storage units, including boat and RV storage, and is the largest operator of self-storage properties in the United States. In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, the company emphasized its revenue sources from self-storage operations and tenant reinsurance, highlighting its reliance on leasing available self-storage units and managing rental rates. The company also discussed its critical accounting policies and estimates, including the evaluation of asset impairment and income taxes, as well as its consolidation of variable interest entities.
The company's self-storage operations segment primarily generates revenue from rents received from tenants under leases at wholly-owned and consolidated joint venture stores. This segment's performance heavily depends on the company's ability to lease available self-storage units and manage rental rates effectively. Additionally, the company's tenant reinsurance segment contributes to its revenue through insurance revenues from the reinsurance of risks relating to the loss of goods stored by tenants in its stores.
Extra Space Storage Inc. operates in competitive markets, facing seasonal fluctuations in occupancy levels, with higher occupancy during the summer months due to increased moving activity. The company believes it can respond effectively to changes in local, regional, and national economic conditions by adjusting rental rates through its revenue management team and technology systems.
The company's critical accounting policies and estimates include the consolidation of variable interest entities, evaluation of asset impairment, and income taxes. Extra Space Storage Inc. evaluates its assets for impairment and reviews each store at least annually to determine if there are events or circumstances indicating potential impairment. Additionally, the company evaluates its goodwill for impairment at least annually and whenever events, circumstances, and related factors indicate that the fair value of the reporting unit may be less than the carrying value.
Moreover, as a REIT, the company has elected to be treated as such under Sections 856 through 860 of the Internal Revenue Code. To maintain its qualification as a REIT, the company is required to distribute annually at least 90% of its REIT taxable income to its stockholders and meet certain tests regarding the nature of its income and assets. Extra Space Storage Inc. plans to continue operating to meet the requirements for taxation as a REIT, acknowledging the technical and complex nature of these requirements. Following these announcements, the company's shares moved 1.18%, and are now trading at a price of $148.87. If you want to know more, read the company's complete 10-K report here.
