Extra Space Storage Inc. Announces Robust 2025 Fourth Quarter and Year-End Results

Extra Space Storage Inc. (NYSE: EXR), the largest self-storage operator in the United States and a member of the S&P 500, has released its earnings report for the fourth quarter and the full year ended December 31, 2025. The Company continues its trajectory of growth and operational efficiency, underscored by strong financial performance and strategic investments.

Key Financial Highlights

• Q4 Net Income: \$1.36 per diluted share, an increase of 9.7% year-over-year.
• Q4 Funds from Operations (FFO): \$1.99 per diluted share; Core FFO (excluding adjustments) was \$2.08 per diluted share, up 2.5% versus Q4 2024.
• Full Year Net Income: \$4.59 per diluted share, up 13.9% year-over-year.
• Full Year FFO: \$7.90 per diluted share; Core FFO of \$8.21 per diluted share, up 1.1% year-over-year.
• Same-Store Performance: Q4 same-store revenue up 0.4%; same-store NOI up 0.1%. For the year, revenue up 0.1%, NOI down (1.7)%.
• Same-Store Occupancy: 92.6% as of year-end, down from 93.3% last year.
• Dividend: Paid \$1.62 per share for Q4.

Strategic Investment Activity

• Acquisitions: Q4: 27 stores acquired for \$304.8 million; Full Year: 41 stores for \$483.6 million.
• Joint Venture Buyouts: Acquired interests in three joint venture partnerships for \$342.2 million, now wholly owning 28 properties previously held in these entities.
• Joint Venture Investments: With partners, acquired 10 operating stores, developed 2 stores, and acquired one “Certificate of Occupancy” store for \$183.6 million (EXR invested \$53.5 million).
• Stock Repurchase: Repurchased 1,158,244 shares for \$149.5 million in 2025 (average price \$129.10).

Property Management and Ancillary Business Growth

• Third-Party Management Platform: Added 379 stores (281 net); now manages 1,856 third-party stores and 407 stores in unconsolidated joint ventures, totaling 2,263 managed stores.
• Bridge Loan Activity: Originated \$409.4 million in mortgage and mezzanine bridge loans; sold \$122.1 million in mortgage bridge loans. Outstanding bridge loans total ~\$1.5 billion, with an additional \$57.7 million closed or under agreement for 2026.

Balance Sheet & Capital Structure

• Debt Profile: 82.1% fixed-rate debt; effective fixed-rate (after variable receivables) is 92.7%. Weighted average interest rate 4.3%, maturity ~4.5 years.
• Stock Repurchase Authorization: \$350.5 million remaining; no shares issued via ATM program (\$800 million available).
• Commercial Paper Program: \$1 billion capacity; \$680 million outstanding.

2026 Outlook & Guidance

CEO Commentary

CEO Joe Margolis emphasized the company’s steady performance, industry-leading occupancy, and new customer rate growth in 2025. He highlighted growth in Core FFO per share, the strength of third-party management and bridge loan platforms, and disciplined capital allocation that enabled creative, off-market investments. Margolis is optimistic about 2026, noting strengthening customer rates, moderating new supply, and a portfolio well-positioned for improving operating environments.

Potential Price-Sensitive Items for Shareholders

• Same-Store NOI Decline: For full-year 2025, same-store NOI decreased (1.7)%, which may be a concern for investors focused on organic growth.
• Occupancy Decline: Ending occupancy decreased to 92.6% from 93.3%, potentially signaling competitive pressures or supply dynamics.
• Large Capital Deployment: Significant acquisitions, repurchases, and bridge loan originations signal aggressive growth but also increased leverage and risk.
• Debt Profile: High fixed-rate debt protects against interest rate volatility but leaves less flexibility if rates fall.
• Guidance Range: 2026 Core FFO per share guidance (\$8.05-\$8.35) is only modestly above 2025, potentially indicating limited near-term earnings upside.
• Repurchase Program: Continued share buybacks may support share price but also reduce liquidity.
• Forward-Looking Statements: Management cautions that actual results may materially differ from guidance due to market conditions, acquisition success, competition, and macroeconomic risks.

Company Profile & Scale

As of December 31, 2025, Extra Space Storage owns or operates 4,281 stores in 43 states and Washington, D.C., representing approximately 2.9 million units and 330.4 million square feet of rentable space under the Extra Space brand. It is the largest self-storage management company in the U.S., offering a broad range of storage solutions including boat, RV, and business storage.

Risks and Forward-Looking Statements

• Adverse economic conditions and real estate market trends.
• Competition, including new supply and alternative storage options.
• Regulatory risks, including REIT status, insurance, and environmental liabilities.
• Cybersecurity threats and operational disruptions.
• Risks associated with joint ventures, acquisitions, and developments.
• Potential impact of infectious diseases, natural disasters, and geopolitical events.
• Financing and capital availability, credit rating changes, and interest rate risk.

The company states that forward-looking statements are based on current expectations and assumptions, and there is no assurance that projected results will be achieved. Investors should review risk factors in the latest SEC filings.

Upcoming Events

Extra Space Storage will host a conference call at 1:00 p.m. Eastern Time on Friday, February 20, 2026 to discuss its results. Investors can pre-register and access the live webcast or replay via the company’s investor relations website.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties; actual results may differ materially. Investors should consult Extra Space Storage Inc.’s SEC filings and their independent advisors before making any investment decisions.

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