Extra Space Storage recently released its 10-Q report for the quarter ended June 30, 2026. Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of June 30, 2026, it owned or managed 4,410 self-storage 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. The company also provides storage for boats, RVs and businesses, and it was incorporated in Maryland in 1977.
In Item 2, management said the company’s discussion is based on unaudited condensed consolidated financial statements prepared under GAAP and that its estimates, judgments and assumptions can affect reported assets, liabilities, revenues and expenses. It described the business as a fully integrated REIT that owns, operates, manages, acquires, develops and redevelops self-storage properties and also provides lending to store owners. Revenue comes mainly from self-storage operations and tenant reinsurance, with results tied to leasing available units, adjusting rental rates and collecting tenant payments. Management said its stores are generally clustered near population centers, which it said helps reduce operating costs through scale, and that it uses daily revenue management systems to adjust rates across the portfolio.
The company said same-store and portfolio performance continued to be shaped by acquisitions, dispositions, occupancy and pricing. For the three months ended June 30, 2026, total revenue rose 3.9% to $874.2 million from $841.6 million a year earlier, while six-month revenue increased 4.1% to $1.730 billion from $1.662 billion. Property rental revenue increased 3.5% in the quarter to $746.2 million and 3.8% for the half to $1.479 billion, driven mainly by acquisitions completed in 2025 and in the first six months of 2026, plus higher average annual rent per occupied square foot. The company acquired 18 wholly owned stores in the first half of 2026 and 76 wholly owned stores in 2025.
Tenant reinsurance revenue increased 5.1% in both the quarter and six-month period, reaching $93.1 million and $182.2 million, respectively, as the number of stores operated increased to 4,410 from 4,179 a year earlier. Management fees and other income rose 8.9% in the quarter to $34.9 million and 9.0% in the half to $68.6 million, reflecting more third-party managed stores and higher revenue from stores under management. As of June 30, 2026, the company managed 1,964 stores for third parties, up from 1,749 a year earlier.
Expenses also moved higher. Property operations expense increased 1.8% in the quarter to $231.7 million and 4.2% in the half to $470.0 million, mainly because of acquisitions, partly offset by expense control across most categories except property taxes and insurance. Tenant reinsurance expense rose to $17.3 million in the quarter and $35.2 million in the half. General and administrative expense increased 5.3% to $47.3 million in the quarter and 3.2% to $93.8 million in the half. Depreciation and amortization climbed 4.7% to $185.6 million in the quarter and 3.9% to $371.4 million in the half, reflecting new store acquisitions.
Total expenses were $482.0 million in the quarter, up from $466.8 million, and $970.4 million in the first half, up from $933.8 million. Other revenues and expenses, net, were a $116.3 million expense in the quarter and a $231.4 million expense in the half. Interest expense was $146.7 million in the quarter and $294.0 million in the half, while interest income was $38.8 million and $78.3 million, respectively. Equity in earnings and dividend income from unconsolidated real estate entities totaled $15.8 million in the quarter and $31.6 million in the half. Income tax expense was $12.1 million in the quarter and $22.9 million in the half. Following these announcements, the company's shares moved -0.12%, and are now trading at a price of $148.04. For more information, read the company's full 10-Q submission here.
