Extra Space Storage recently released its 10-Q report for the quarter ended June 30, 2026. The Salt Lake City-based company is a self-administered, self-managed REIT that owns, operates, manages, acquires, develops, redevelops, and lends to self-storage properties across the United States. At June 30, 2026, it owned and/or operated 4,410 stores in 42 states and Washington, D.C., with about 3.0 million units and 341.0 million rentable square feet under the Extra Space brand.
In Item 2, management said the discussion should be read alongside the company’s unaudited condensed consolidated financial statements and its 2025 Form 10-K, and noted that the section includes forward-looking statements. It also said its financial reporting relies on GAAP estimates, judgments, and assumptions that can affect reported assets, liabilities, revenues, and expenses if actual results differ from those estimates.
The company said substantially all revenue comes from two segments: self-storage operations and tenant reinsurance. Self-storage revenue is driven mainly by rents from wholly owned stores and consolidated joint ventures, while tenant reinsurance revenue comes from reinsurance of tenant goods stored at its facilities. Management said operating results depend materially on leasing available units, adjusting rental rates, and collecting tenant payments.
At June 30, 2026, Extra Space owned or had ownership interests in 2,446 operating stores, including 2,026 wholly owned stores, 11 stores in consolidated joint ventures, and 409 stores in unconsolidated joint ventures. It also managed 1,964 stores for third parties, bringing the total owned and/or managed count to 4,410. The company said approximately 2.58 million tenants were leasing units at its operating stores, generally on a month-to-month basis.
Revenue for the second quarter rose to $874.2 million from $841.6 million a year earlier, an increase of $32.5 million, or 3.9%. For the first six months of 2026, revenue increased to $1.730 billion from $1.662 billion, up $68.6 million, or 4.1%. Property rental revenue increased 3.5% in the quarter to $746.2 million and 3.8% year to date to $1.479 billion, helped by acquisitions completed in 2025 and in the first half of 2026, plus higher average annual rent per occupied square foot. Tenant reinsurance revenue rose 5.1% in both periods, to $93.1 million in the quarter and $182.2 million year to date, reflecting the larger store base.
Management fees and other income increased to $34.9 million in the quarter from $32.0 million, and to $68.6 million from $62.9 million for the six-month period, driven by more third-party managed stores and higher revenue at stores under management. The company managed 1,964 third-party stores at June 30, 2026, up from 1,749 a year earlier.
Total expenses increased to $482.0 million in the quarter from $466.8 million, and to $970.4 million from $933.8 million for the first six months. Property operations expense rose to $231.7 million in the quarter and $470.0 million year to date, while depreciation and amortization climbed to $185.6 million and $371.4 million, respectively, mainly because of acquisitions. General and administrative expense increased to $47.3 million in the quarter and $93.8 million year to date.
Interest expense was $146.7 million in the quarter and $294.0 million for the first half, compared with $146.1 million and $288.5 million a year earlier. Non-cash interest expense tied to amortization of the discount on unsecured senior notes rose to $12.7 million in the quarter and $25.3 million year to date. Interest income declined to $38.8 million in the quarter from $42.0 million, and to $78.3 million from $81.0 million for the six-month period.
Net other revenues and expenses were a loss of $116.3 million in the quarter, compared with a loss of $112.1 million a year earlier, and a loss of $231.4 million for the first six months, compared with a loss of $180.2 million. The six-month comparison included the absence of a $34.9 million gain on real estate assets held for sale and sold that was recorded in the prior-year period. Following these announcements, the company's shares moved -0.12%, and are now trading at a price of $148.04. If you want to know more, read the company's complete 10-Q report here.
