Highlights for the three months ended September 30, 2025:
Achieved net income attributable to common stockholders of $0.78 per diluted share, representing a (14.3%) decrease compared to the same period in the prior year, including a loss of $105.1 million related to assets held for sale and sold.
Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $2.01 per diluted share. FFO, excluding adjustments ("Core FFO"), was $2.08 per diluted share, representing a 0.5% increase compared to the same period in the prior year.
Same-store revenue decreased by (0.2)% and same-store net operating income ("NOI") decreased by (2.5)% compared to the same period in the prior year.
Reported ending same-store occupancy of 93.7% as of September 30, 2025, compared to 93.6% as of September 30, 2024.
Acquired one operating store for a total cost of $12.8 million.
In conjunction with joint venture partners, acquired one operating store for a total cost of approximately $14.2 million, of which the Company invested $1.4 million.
Originated $122.7 million in mortgage and mezzanine bridge loans and sold $71.1 million in mortgage bridge loans.
Added 95 stores (62 stores net) to the Company's third-party management platform. As of September 30, 2025, the Company managed 1,811 stores for third parties and 411 stores in unconsolidated joint ventures, for a total of 2,222 managed stores.
Paid a quarterly dividend of $1.62 per share.
Highlights for the nine months ended September 30, 2025:
Achieved net income attributable to common stockholders of $3.23 per diluted share, representing a 15.8% increase compared to the same period in the prior year, including a net loss of $70.2 million related to assets held for sale and sold.
Achieved FFO of $5.91 per diluted share, and Core FFO of $6.13 per diluted share, representing a 0.7% increase compared to the same period in the prior year.
Same-store revenue was flat and same-store NOI decreased by (2.3)% compared to the same period in the prior year.
Acquired 14 operating stores for a total cost of $178.7 million.
Acquired the interest of our joint venture partners in two separate partnerships for $326.4 million. The Company now wholly owns the 27 properties previously owned by these entities. Acquired six additional properties by exchanging ownership interest in 17 properties from an existing joint venture.
In conjunction with joint venture partners, acquired three operating stores, completed the development of two stores, acquired one store at completion of construction ("Certificate of Occupancy store" or "C of O store") for a total cost of approximately $76.7 million, of which the Company invested $42.8 million.
Originated $329.0 million in mortgage and mezzanine bridge loans and sold $105.8 million in mortgage bridge loans.
Added 301 stores (236 stores net) to the Company's third-party management platform.
Joe Margolis, CEO of the Company, stated: "We delivered solid third quarter results, while navigating a challenging operational landscape, allowing us to increase our annual Core FFO guidance. Although same-store revenue remained relatively flat, we are encouraged by the gradual improvement in market fundamentals. This improvement has resulted in accelerating new customer rate growth. Our external growth initiatives remained active during the quarter, highlighted by significant additions to our third-party management platform, substantial bridge loan originations, and strategic property acquisitions."
FFO Per Share:
The following table (unaudited) outlines the Company's FFO and Core FFO for the three and nine months ended September 30, 2025 and 2024. The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data):
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2025
2024
2025
2024
(per share)1
(per share)1
(per share)1
(per share)1
Net income attributable tocommon stockholders
$ 165,998
$ 0.78
$ 193,210
$ 0.91
$ 686,604
$ 3.23
$ 592,194
$ 2.79
Impact of the difference in weighted average number of shares, diluted2
(0.02)
(0.04)
(0.15)
(0.12)
Adjustments:
Real estate depreciation
164,834
0.74
154,573
0.69
488,711
2.20
462,162
2.07
Amortization of intangibles
3,037
0.01
28,160
0.13
17,341
0.08
85,581
0.39
Loss on real estate assets held for sale and sold, net
105,128
0.47
8,961
0.04
70,231
0.32
63,620
0.29
Unconsolidated joint venture real estate depreciation and amortization
7,466
0.03
7,922
0.04
23,896
0.11
23,771
0.11
Unconsolidated joint venture gain on sale of real estate assets and sale of a joint venture interest
(9,354)
(0.04)
(13,730)
(0.06)
(9,354)
(0.04)
(13,730)
(0.06)
Income allocated to Operating Partnership and other noncontrolling interests
8,035
0.04
9,735
0.04
35,070
0.16
30,237
0.14
FFO
$ 445,144
$ 2.01
$ 388,831
$ 1.75
$ 1,312,499
$ 5.91
$ 1,243,835
$ 5.61
Adjustments:
Non-cash interest expense related to amortization of discount on unsecured senior notes, net
12,086
0.05
11,005
0.06
35,169
0.16
32,563
0.15
Amortization of other intangibles related to the Life Storage Merger, net of tax benefit
3,918
0.02
6,320
0.03
12,366
0.06
21,198
0.10
Impairment of Life Storage trade name
—
—
51,763
0.23
—
—
51,763
0.23
CORE FFO
$ 461,148
$ 2.08
$ 457,919
$ 2.07
$ 1,360,034
$ 6.13
$ 1,349,359
$ 6.09
Weighted average number of shares, diluted3
221,968,328
221,684,684
221,945,990
221,750,047
(1)
Per share amounts may not recalculate due to rounding.
(2)
The adjustment to account for the difference between the number of shares used to calculate earnings per share and the number of shares used to calculate FFO per share. Earnings per share is calculated using the two-class method, which uses a lower number of shares than the calculation for FFO per share and Core FFO per share, which are calculated assuming full redemption of all OP units as described in note (3).
(3)
Extra Space Storage LP (the "Operating Partnership") has outstanding preferred and common Operating Partnership units ("OP units"). These OP units can be redeemed for cash or, at the Company's election, shares of the Company's common stock. Redemption of all OP units for common stock has been assumed for purposes of calculating the weighted average number of shares, diluted, as presented above. The computation of weighted average number of shares, diluted, for FFO per share and Core FFO per share also includes the effect of share-based compensation plans.
Operating Results and Same-Store Performance:
The following table (unaudited) outlines the Company's same-store performance for the three and nine months ended September 30, 2025 and 2024 (amounts shown in thousands, except store count data)1:
For the Three MonthsEnded September 30,
Percent
For the Nine MonthsEnded September 30,
Percent
2025
2024
Change
2025
2024
Change
Same-store property revenues2
Net rental income
$ 647,739
$ 647,886
0.0 %
$ 1,924,023
$ 1,918,385
0.3 %
Other income
26,243
27,465
(4.4) %
75,338
80,379
(6.3) %
Total same-store revenues
$ 673,982
$ 675,351
(0.2) %
$ 1,999,361
$ 1,998,764
0.0 %
Same-store operating expenses2
Payroll and benefits
$ 41,921
$ 38,859
7.9 %
$ 123,134
$ 119,989
2.6 %
Marketing
17,818
13,967
27.6 %
48,904
46,841
4.4 %
Office expense3
20,251
20,158
0.5 %
61,110
61,284
(0.3) %
Property operating expense4
18,893
18,387
2.8 %
54,234
52,867
2.6 %
Repairs and maintenance
13,759
12,642
8.8 %
42,002
39,650
5.9 %
Property taxes
75,364
74,210
1.6 %
226,715
203,060
11.6 %
Insurance
8,731
7,741
12.8 %
24,463
23,255
5.2 %
Total same-store operating expenses
$ 196,737
$ 185,964
5.8 %
$ 580,562
$ 546,946
6.1 %
Same-store net operating income2
$ 477,245
$ 489,387
(2.5) %
$ 1,418,799
$ 1,451,818
(2.3) %
Same-store square foot occupancy as of quarter end
93.7 %
93.6 %
93.7 %
93.6 %
Average same-store square foot occupancy
94.1 %
93.8 %
93.9 %
93.2 %
Properties included in same-store5
1,829
1,829
