NYSE$EXR

Extra Space Storage Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Extra Space Storage successfully completed its transformative merger with Life Storage and smoothly integrated its stores, team, and systems onto the Extra Space Storage platform.

Extra Space Storage Inc. reported Q3 2023 results, which included the successful completion of its merger with Life Storage. The company has integrated Life Storage's operations and is on track to achieve total synergies by Q1 2024. Same-store revenue increased by 1.9%, and the company maintained strong same-store occupancy.

  • Net income attributable to common stockholders was $0.96 per diluted share, a 41.8% decrease year-over-year, primarily due to transition costs related to the Life Storage Merger.
  • FFO was $1.69 per diluted share, and Core FFO was $2.02 per diluted share, representing an 8.6% decrease compared to the same period in the prior year.
  • Same-store revenue increased by 1.9%, and same-store NOI increased by 0.7% compared to the same period in the prior year.
  • The company closed its merger with Life Storage, Inc. on July 20, 2023, in an $11.6 billion all-stock transaction.

Headline financials

Total Revenue

$748M

Previous: $499M+49.9%
EPS (adj)

$2.02

Previous: $2.21-8.6%
FFO per diluted share

$1.69

Previous: $2.16-21.8%
Ending same-store occupancy

94.1%

Previous: 95.2%-1.2%
Capital Expenditures

-$273M

Previous: -$1.18B+76.8%
Free Cash Flow

-$85M

Previous: -$955M+91.1%
Net Income

$188M

Previous: $221M-14.7%
Operating Income

$300M

Previous: $270M+11.1%
Gross Profit

$563M

Previous: $384M+46.4%
Cash & Equivalents

$216M

Previous: $87M+148.4%
Total Assets

$27.6B

Previous: $11.8B+133.3%
Stock-Based Comp

$6.99M

Previous: $5.64M+23.9%

Revenue & EPS history

Extra Space · Revenue · Quarterly

$748M

Q3 2023+49.9%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Extra Space · $69.1M total across 1 segment · Q3 2023

  • Tenant reinsurance
    $69.1M+44.4%

Forward guidance

The company provided Core FFO estimates and annual assumptions for the year ending December 31, 2023, including the impact of the Life Storage Merger. The company estimates Core FFO to be between $8.05 and $8.20.

Tailwinds

  • Includes dilutive impact of Life Storage Merger
  • Same-store pool of 914 stores
  • Includes interest from bridge loans and dividends from NexPoint preferred investment
  • Includes non-cash compensation
  • Includes dividends from SmartStop preferred investments

Headwinds

  • Dilution per share from C of O and value add acquisitions: $0.23
  • Same-store revenue growth: 2.75% - 3.50%
  • Same-store expense growth: 4.00% - 5.00%
  • Weighted average one-month SOFR: 5.02%
  • Bridge loans outstanding: $550,000,000

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.0%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+1.1%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+12.0%

Q3 2023

Best reaction

-10.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.2%-1.2%+2.5%
Q4 2025+4.8%+0.5%-10.8%
Q3 2025-4.8%-7.3%-6.1%
Q1 2025+3.6%+5.6%+6.9%
Q4 2024-4.6%-4.5%-9.8%
Q3 2024-1.6%-3.8%+3.1%
Q2 2024-2.7%+0.6%+7.0%
Q1 2024+1.0%+3.3%+3.1%
Q4 2023-0.7%+3.0%+5.6%
Q3 2023+12.0%+12.6%+29.6%
Q2 2023-8.1%-5.9%-5.9%
Q1 2023-3.4%+1.5%-5.9%
Q4 2022+0.1%+2.1%-3.4%
Q3 2022-10.7%-13.3%-9.8%
Q2 2022+2.8%+4.3%+6.3%
Q1 2022+6.9%-0.7%-1.7%
Q4 2021+2.4%+1.5%+6.6%
Q3 2021+3.4%+5.2%+6.1%
Q2 2021+1.1%+2.0%+6.3%
Q1 2021-0.3%-1.1%+1.7%
Q4 2020+5.7%+5.1%+9.5%
Q3 2020-2.5%-8.5%-2.1%
Q2 2020+0.3%+1.8%+6.1%
Q1 2020+2.6%+7.0%+20.3%
Q4 2019-6.9%-5.4%-24.9%
Q3 2019-1.1%-0.8%-5.2%
Q2 2019+0.9%+3.1%+8.8%
Q1 2019+3.3%+3.5%+2.9%
Q4 2018-6.9%-5.7%+1.5%
Q3 2018-0.6%-3.7%+4.2%
Q2 2018-0.9%-1.4%-1.8%
Q1 2018-0.0%+2.9%+7.4%
Q4 2017-0.9%+5.4%+2.6%
Q3 2017+1.9%+5.4%+4.4%
Q2 2017-0.3%-2.2%-2.4%
Q1 2017-3.2%-4.0%-0.7%
Q4 2016+0.9%+2.9%-2.3%
Q3 2016-6.2%-2.8%-6.9%
Q2 2016-4.9%-4.2%-11.6%
Q1 2016+4.6%
Q4 2015-4.4%
Q3 2015-0.7%
Q2 2015+2.6%
Q1 2015-1.4%
Q4 2014+0.2%
Q3 2014-0.2%
Q2 2014-2.3%
Q1 2014+1.9%
Q4 2013+0.2%
Q3 2013-2.7%
Q2 2013+1.5%
Q1 2013+3.8%
Q4 2012-0.7%
Q3 2012+4.2%
Q2 2012+1.6%
Q1 2012-0.9%
Q4 2011+0.4%
Q3 2011+1.0%
Q2 2011+0.9%
Q1 2010+0.2%
Q1 2011-1.8%
Q4 2010+5.2%
Q4 2008+5.2%
Q3 2010-0.6%
Q3 2009-0.6%
Q2 2010+1.6%
Q2 2009+1.6%
Q4 2009+1.6%

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