Extra Space Storage Inc【EXR】株式ニュース

Extra Space Storage Inc. Reports 2026 First Quarter ResultsApril 28, 2026 4:10 PM
PR Newswire (US)

SALT LAKE CITY, April 28, 2026 /PRNewswire/ -- Extra Space Storage Inc. (NYSE: EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a member of the S&P 500 index, announced operating results for the three months ended March 31, 2026.

Highlights for the three months ended March 31, 2026:Achieved net income attributable to common stockholders of $1.14 per diluted share, representing a 10.9% decrease compared to the same period in the prior year, which included a gain from real estate assets sold in 2025.Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.97 per diluted share. FFO, excluding adjustments ("Core FFO"), was $2.04 per diluted share, representing a 2.0% increase compared to the same period in the prior year.Same-store revenue increased by 1.7% and same-store net operating income ("NOI") increased by 1.2% compared to the same period in the prior year.Reported ending same-store occupancy of 93.0% as of March 31, 2026, compared to 93.2% as of March 31, 2025.Acquired one operating store for $12.5 million.In conjunction with joint venture partners, completed the development of one store for a total cost of approximately $15.1 million, of which the Company invested $14.4 million.Added 84 stores (60 stores net) to the Company's third-party management platform. As of March 31, 2026, the Company managed 1,916 stores for third parties and 408 stores in unconsolidated joint ventures, for a total of 2,324 managed stores.Paid a quarterly dividend of $1.62 per share.Joe Margolis, CEO of the Company, stated: "We are off to a strong start to 2026, with Core FFO of $2.04 per share in the first quarter, up 2.0% year-over-year. Our portfolio is experiencing broad-based improvement with positive new and existing customer rate gains and industry leading occupancy, resulting in same-store revenue growth of 1.7%. Also, our external growth channels continue to perform well, with disciplined investments across acquisitions, bridge lending, and third-party management driving consistent returns."FFO Per Share:The following table (unaudited) outlines the Company's FFO and Core FFO for the three months ended March 31, 2026 and 2025. 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 March 31,
2026
2025

(per share)1

(per share)1Net income attributable to common stockholders$  240,977
$    1.14
$  270,875
$       1.28Impact of the difference in weighted average number of shares – diluted2

(0.04)

(0.06)Adjustments:

Real estate depreciation170,895
0.77
159,170
0.72Amortization of intangibles3,723
0.02
11,079
0.05Gain on real estate assets held for sale and sold, net—
—
(35,761)
(0.16)Unconsolidated joint venture real estate depreciation and amortization7,607
0.03
8,689
0.04Equity in earnings of unconsolidated joint venture gain on sale of a joint
venture interest(207)
—
—
—Income allocated to Operating Partnership and other noncontrolling
interests 11,443
0.05
14,050
0.06FFO$  434,438
$    1.97
$  428,102
$       1.93

Adjustments:

Non-cash interest expense related to amortization of discount on unsecured
senior notes, net12,555
0.05
11,313
0.05Amortization of other intangibles related to the Life Storage Merger, net of
tax benefit3,917
0.02
4,531
0.02CORE FFO$  450,910
$    2.04
$  443,946
$       2.00

Weighted average number of shares – diluted3220,933,115

221,329,035

(1)Per share amounts may not recalculate due to rounding.

(2)This adjustment is 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 months ended March 31, 2026 and 2025 (amounts shown in thousands, except store count data)1:
For the Three Months Ended
March 31,
Percent
2026
2025
ChangeSame-store property revenues2

Net rental income$     654,365
$     642,993
1.8 %Other income24,244
24,556
(1.3) %Total same-store revenues$     678,609
$     667,549
1.7 %

Same-store operating expenses2

Payroll and benefits$      41,685
$      41,072
1.5 %Marketing14,468
14,314
1.1 %Office expense318,210
17,898
1.7 %Property operating expense424,100
22,731
6.0 %Repairs and maintenance16,714
15,494
7.9 %Property taxes77,791
77,190
0.8 %Insurance8,902
7,928
12.3 %Total same-store operating expenses$     201,870
$     196,627
2.7 %

Same-store net operating income2$     476,739
$     470,922
1.2 %

Same-store square foot occupancy as of quarter end93.0 %
93.2 %

Average same-store square foot occupancy92.7 %
93.1 %

Properties included in same-store51,870
1,870

(1) A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income."(2)Same-store revenues, operating expenses and net operating income do not include tenant reinsurance revenue or expense.(3)Includes general office expenses, computer, bank fees, and credit card merchant fees.(4)Includes utilities and miscellaneous other store expenses.(5)On January 1, 2026, the Company updated the property count of the same-store pool from 1,804 to 1,871 stores. In the quarter ended March 31, 2026, one property was removed due to casualty loss, reducing the same-store pool to 1,870 stores.Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three months ended March 31, 2026 and 2025 are provided in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/. Investment and Property Management Activity:The following table (unaudited) outlines the Company's acquisitions and developments that are closed, completed or under agreement (dollars in thousands).

Closed/Completed through
March 31, 2026
Closed /Completed or
Scheduled to Close/Complete
in 2026
Total 2026Wholly-Owned Investment1
Stores
Price
Stores
Price
Stores
PriceOperating Stores2
1
$       12,500
3
$         9,650
4
$       22,150Buyout of JV Partners' Interest in
Operating Stores
—
—
1
4,080
1
4,080EXR Investment in Wholly-
Owned Stores
1
12,500
4
13,730
5
26,230

Joint Venture Investment1

EXR Investment in JV Acquisition of
Operating Stores
—
—
—
—
—
—EXR Investment in JV Development
and C of O
1
14,378
3
42,370
4
56,748EXR Investment in Joint
Ventures
1
14,378
3
42,370
4
56,748Total EXR Investment
2
$       26,878
7
$       56,100
9
$        82,978(1)The locations of certificate of occupancy ("C of O") and development stores and joint venture ownership interest details are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.The projected developments and acquisitions under agreement described above are subject to customary closing conditions and no assurance can be provided that these developments and acquisitions will be completed on the terms described, or at all.Property Sales:During the three months ended March 31, 2026, the Company sold one property which was previously held for sale and currently has four properties remaining as held for sale. Bridge Loans:During the three months ended March 31, 2026, the Company originated $5.5 million in bridge loans and sold two bridge loans for $30.8 million. Outstanding balances of the Company's bridge loans were approximately $1.5 billion at the end of the quarter. The Company has an additional $102.0 million in bridge loans that have closed subsequent to quarter end or are under agreement to close in 2026. Additional details related to the Company's loan activity and balances held are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/. Property Management:As of March 31, 2026, the Company managed 1,916 stores for third-party owners and 408 stores owned in unconsolidated joint ventures, for a total of 2,324 stores under management. The Company is the largest self-storage management company in the United States.Balance Sheet:During the three months ended March 31, 2026, the Company repurchased 11,109 shares of common stock for $1.4 million at an average price of $129.80 per share using its stock repurchase program, and as of March 31, 2026, the Company had authorization to purchase up to $349.1 million under the program. During the three months ended March 31, 2026, the Company did not issue any shares on its ATM program, and as of March 31, 2026, the Company had $800.0 million available for issuance.As of March 31, 2026, the Company's commercial paper program had total capacity of $1.0 billion, with $850.0 million in outstanding issuances.As of March 31, 2026, the Company's percentage of fixed-rate debt to total debt was 82.5%. Net of the impact of variable rate receivables, the effective fixed-rate debt to total debt was 92.9%. The weighted average interest rates of the Company's fixed and variable-rate debt were 4.2% and 4.6%, respectively. The combined weighted average interest rate was 4.3% with a weighted average maturity of approximately 4.3 years. Full details related to the Company's debt schedule are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/. Dividends:On March 31, 2026, the Company paid a first quarter common stock dividend of $1.62 per share to stockholders of record at the close of business on March 16, 2026.Outlook:The following table outlines the Company's Core FFO estimates and assumptions for the year ending December 31, 2026.
Ranges for 2026 Annual Assumptions
Ranges for 2026     Annual Assumptions
Notes
(April 28, 2026)
(February 19, 2026)

Low
High
Low
High

Core FFO$8.05
$8.35
$8.05
$8.35

Dilution per share from C of O
and value add acquisitions$0.18
$0.18
$0.18
$0.18

Same-store revenue growth(0.50) %
1.50 %
(0.50) %
1.50 %
Same-store pool of 1,870 storesSame-store expense growth2.00 %
3.50 %
2.00 %
3.50 %
Same-store pool of 1,870 storesSame-store NOI growth(2.25) %
1.25 %
(2.25) %
1.25 %
Same-store pool of 1,870 stores

Weighted average one-month
SOFR3.65 %
3.65 %
3.46 %
3.46 %

Net tenant reinsurance income$289,000,000
$292,000,000
$289,000,000
$292,000,000

Management fees and other
income$140,000,000
$141,500,000
$138,000,000
$139,500,000

Interest income$149,500,000
$151,000,000
$149,500,000
$151,000,000
Includes interest from bridge
loans and dividends from
NexPoint preferred investmentGeneral and administrative
expenses$190,500,000
$192,500,000
$190,500,000
$192,500,000
Includes non-cash
compensationEquity in earnings of real
estate ventures$63,500,000
$64,500,000
$63,500,000
$64,500,000
Includes dividends from
SmartStop preferred
investmentsInterest expense$592,000,000
$597,000,000
$590,000,000
$595,000,000
Excludes non-cash interest
expense shown belowNon-cash interest expense
related to amortization of
discount on unsecured senior
notes, net$42,000,000
$43,000,000
$42,000,000
$43,000,000
Amortization of debt mark-to-
market; excluded from Core
FFOIncome Tax Expense$47,000,000
$48,000,000
$47,000,000
$48,000,000
Taxes associated with the
Company's taxable REIT
subsidiaryAcquisitions$200,000,000
$200,000,000
$200,000,000
$200,000,000
Includes wholly-owned
acquisitions and the Company's
investment in joint venturesBridge loans outstanding$1,475,000,000
$1,475,000,000
$1,475,000,000
$1,475,000,000
Represents the Company's
average retained loan balances
for the yearWeighted average share count221,100,000
221,100,000
221,100,000
221,100,000
Assumes redemption of all OP
units for common stock(1)A reconciliation of net income outlook to same-store net operating income outlook is provided later in this release entitled "Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income." The reconciliation includes details related to same-store revenue and same-store expense outlooks. A reconciliation of net income per share outlook to funds from operations per share outlook is provided later in this release entitled "Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share."FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company's estimates are forward-looking and based on management's view of current and future market conditions. The Company's actual results may differ materially from these estimates.Supplemental Financial Information:Supplemental unaudited financial information regarding the Company's performance can be found on the Company's website at www.extraspace.com. Under the "Company Info" navigation menu on the home page, click on "Investor Relations," then under the "Financials" navigation menu click on "Quarterly Results." This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets.Conference Call:The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, April 29, 2026, to discuss its financial results. Telephone participants may avoid any delays in joining the conference call by pre-registering for the call using the following link to receive a special dial-in number and PIN: https://events.q4inc.com/analyst/970879752?pwd=s88EVPAR A live webcast of the call will also be available on the Company's investor relations website at https://ir.extraspace.com. To listen to the live webcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.A replay of the call will be available for 30 days on the investor relations section of the Company's website beginning at 5:00 p.m. Eastern Time on April 29, 2026. Forward-Looking Statements:Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include statements concerning the benefits of store acquisitions, developments, market conditions, our outlook and estimates for the year and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, the impact of broader economic trends on the storage industry, our plans or intentions relating to acquisitions and developments, and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," "outlook," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:adverse changes in general economic conditions, the real estate industry and the markets in which we operate;potential liability for uninsured losses and environmental contamination;our ability to recover losses under our insurance policies;the impact of the regulatory environment as well as national, state and local laws and regulations, including, without limitation, those governing real estate investment trusts ("REITs"), tenant reinsurance and other aspects of our business, which could adversely affect our results;the effect of competition from new and existing stores or other storage alternatives, including increased or unanticipated competition for our properties, which could cause rents and occupancy rates to decline;failure to close pending acquisitions and developments on expected terms, or at all;risks associated with acquisitions, dispositions and development of properties, including increased development costs due to additional regulatory requirements related to climate change and other factors;reductions in asset valuations and related impairment charges;our reliance on information technologies, which are vulnerable to, among other things, attack from computer viruses and malware, hacking, cyberattacks and other unauthorized access or misuse, any of which could adversely affect our business and results;impacts from any outbreak of highly infectious or contagious diseases, including reduced demand for self-storage space and ancillary products and services such as tenant reinsurance, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results;economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan;our lack of sole decision-making authority with respect to our joint venture investments;disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow;availability of financing and capital, the levels of debt that we maintain and our credit ratings;changes in global financial markets, increases in interest rates and the impact of enacted and proposed U.S. tariffs on global economic conditions;the effect of recent or future changes to U.S. tax laws; andthe failure to maintain our REIT status for U.S. federal income tax purposes.All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.Definition of FFO:FFO provides relevant and meaningful information about the Company's operating performance that is necessary, along with net income and cash flows, for an understanding of the Company's operating results. The Company believes FFO is a meaningful disclosure as a supplement to net income. Net income assumes that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company's real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of operating stores and impairment write downs of depreciable real estate assets, plus depreciation and amortization related to real estate and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. The Company believes that to further understand the Company's performance, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company's consolidated financial statements. FFO should not be considered a replacement of net income computed in accordance with GAAP.For informational purposes, the Company also presents Core FFO. Core FFO excludes revenues and expenses not core to our operations and transaction costs. It also includes certain costs associated with the Life Storage Merger including non-cash interest related to the amortization of discount on unsecured senior notes and amortization of other intangibles, net of tax benefit. Although the Company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding revenues and expenses not core to our operations and non-cash interest charges, stockholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Core FFO by the Company should not be considered a replacement of the NAREIT definition of FFO. The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company's performance, as an alternative to net cash flow from operating activities as a measure of liquidity, or as an indicator of the Company's ability to make cash distributions.Definition of Same-Store:The Company's same-store pool for the periods presented consists of 1,870 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented. The Company considers a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to occupancy, rental revenue (growth), operating expenses (growth), net operating income (growth), etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments. Same-store results should not be used as a basis for future same-store performance or for the performance of the Company's stores as a whole.About Extra Space Storage Inc.: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 March 31, 2026, the Company owned and/or operated 4,344 self-storage stores in 42 states and Washington, D.C. The Company's stores comprise approximately 3.0 million units and approximately 335.6 million square feet of rentable space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States. Extra Space Storage Inc.Condensed Consolidated Balance Sheets(In thousands, except share data)

March 31, 2026
December 31, 2025
(Unaudited)

Assets:

Real estate assets, net$        24,926,765
$       25,004,350Real estate assets - operating lease right-of-use assets737,606
732,176Investments in unconsolidated real estate entities1,069,602
1,066,783Investments in debt securities and notes receivable1,758,534
1,806,526Cash and cash equivalents138,986
138,920Other assets, net467,877
515,291Total assets $        29,099,370
$       29,264,046Liabilities, Noncontrolling Interests and Equity:

Secured notes payable, net$         1,076,443
$        1,079,565Unsecured term loans, net1,495,012
1,494,659Unsecured senior notes, net9,446,570
9,432,427Revolving lines of credit and commercial paper1,152,500
1,224,000Operating lease liabilities769,688
761,106Cash distributions in unconsolidated real estate ventures74,288
73,701Accounts payable and accrued expenses374,814
357,583Other liabilities497,553
516,969Total liabilities 14,886,868
14,940,010Commitments and contingencies

Noncontrolling Interests and Equity:

Extra Space Storage Inc. stockholders' equity:

Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued
or outstanding—
—Common stock, $0.01 par value, 500,000,000 shares authorized, 211,197,111
and 211,155,322 shares issued and outstanding at March 31, 2026 and
December 31, 2025, respectively2,112
2,112Additional paid-in capital14,882,445
14,880,646Accumulated other comprehensive income (loss)314
(420)Accumulated deficit(1,552,391)
(1,449,172)Total Extra Space Storage Inc. stockholders' equity13,332,480
13,433,166Noncontrolling interest represented by Preferred Operating Partnership units47,827
53,827Noncontrolling interests in Operating Partnership, net and other noncontrolling
interests832,195
837,043Total noncontrolling interests and equity14,212,502
14,324,036Total liabilities, noncontrolling interests and equity$        29,099,370
$       29,264,046 Consolidated Statement of Operations for the Three Months Ended March 31, 2026 and 2025 (In thousands, except share and per share data) - Unaudited

For the Three Months Ended
March 31,
2026
2025Revenues:

Property rental$      733,213
$    704,380Tenant reinsurance89,119
84,712Management fees and other income33,695
30,905Total revenues856,027
819,997Expenses:

Property operations238,303
223,582Tenant reinsurance 17,867
17,116General and administrative46,509
45,974Depreciation and amortization185,795
180,356Total expenses488,474
467,028Gain on real estate assets held for sale and sold, net—
35,761Income from operations367,553
388,730Interest expense(147,299)
(142,399)Non-cash interest expense related to amortization of discount on unsecured senior
notes, net(12,555)
(11,313)Interest income39,543
38,967Income before equity in earnings and dividend income from unconsolidated real
estate entities and income tax expense247,242
273,985Equity in earnings and dividend income from unconsolidated real estate entities15,760
19,931Equity in earnings of unconsolidated real estate ventures - gain on sale of a joint
venture interest207
—Income tax expense(10,789)
(8,991)Net income252,420
284,925Net income allocated to Preferred Operating Partnership noncontrolling interests(673)
(724)Net income allocated to Operating Partnership and other noncontrolling interests(10,770)
(13,326)Net income attributable to common stockholders$      240,977
$    270,875Earnings per common share

Basic $          1.14
$       1.28Diluted $          1.14
$       1.28Weighted average number of shares

Basic210,896,947
211,850,618Diluted220,322,872
212,052,742Cash dividends paid per common share$          1.62
$       1.62 Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three Months EndedMarch 31, 2026 and 2025 (In thousands) - Unaudited

For the Three Months Ended
March 31,
2026
2025Net Income$      252,420
$      284,925Adjusted to exclude:

Gain on real estate assets held for sale and sold, net—
(35,761)Equity in earnings and dividend income from unconsolidated real
estate entities(15,760)
(19,931)Equity in earnings of unconsolidated real estate ventures - gain on sale
of a joint venture interest(207)
—Interest expense147,299
142,399Non-cash interest expense related to amortization of discount on
unsecured senior notes, net12,555
11,313Depreciation and amortization185,795
180,356Income tax expense10,789
8,991General and administrative46,509
45,974Management fees, other income and interest income(73,238)
(69,872)Net tenant insurance(71,252)
(67,596)Non same-store rental revenue(54,604)
(36,831)Non same-store operating expense36,433
26,955Total same-store net operating income$      476,739
$      470,922

Same-store rental revenues678,609
667,549Same-store operating expenses201,870
196,627Same-store net operating income$      476,739
$      470,922 Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per
Share — for the Year Ending December 31, 2026 - Unaudited

For the Year Ending
December 31, 2026

Low End
High EndNet income attributable to common stockholders per diluted share
$                4.30
$                4.60Income allocated to noncontrolling interest - Preferred Operating
Partnership and Operating Partnership
0.22
0.22Net income attributable to common stockholders for diluted computations
4.52
4.82

Adjustments:

Real estate depreciation
3.12
3.12Amortization of intangibles
0.05
0.05Unconsolidated joint venture real estate depreciation and amortization
0.13
0.13Funds from operations attributable to common stockholders
7.82
8.12

Adjustments:

Non-cash interest expense related to amortization of discount on unsecured
senior notes, net
0.19
0.19Amortization of other intangibles related to the Life Storage Merger, net of
tax benefit
0.04
0.04Core funds from operations attributable to common stockholders
$                8.05
$                8.35 Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending
December 31, 2026 (In thousands) - Unaudited

For the Year Ending December 31, 2026
Low
High

Net Income$                975,500
$              1,059,000Adjusted to exclude:

Equity in earnings of unconsolidated joint ventures(63,500)
(64,500)Interest expense597,000
592,000Non-cash interest expense related to amortization of discount on
unsecured senior notes, net43,000
42,000Depreciation and amortization738,500
738,500Income tax expense48,000
47,000General and administrative 192,500
190,500Management fees and other income(140,000)
(141,500)Interest income(149,500)
(151,000)Net tenant reinsurance income(289,000)
(292,000)Non same-store rental revenues(221,000)
(222,000)Non same-store operating expenses145,000
144,500Total same-store net operating income1$              1,876,500
$              1,942,500

Same-store rental revenues12,691,000
2,745,000Same-store operating expenses1814,500
802,500Total same-store net operating income1$              1,876,500
$              1,942,500(1)Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2026 same-store pool of 1,870 stores. On January 1, 2026, the Company updated the property count of the same-store pool from 1,804 to 1,871 stores. In the quarter ended March 31, 2026, one property was removed due to casualty loss, reducing the same-store pool to 1,870 stores.

View original content to download multimedia:https://www.prnewswire.com/news-releases/extra-space-storage-inc-reports-2026-first-quarter-results-302756114.htmlSOURCE Extra Space Storage Inc.

Original: Extra Space Storage Inc. Reports 2026 First Quarter Results

Extra Space Storage Inc. Reports 2025 Fourth Quarter and Year-End ResultsFebruary 19, 2026 4:10 PM
PR Newswire (US)

SALT LAKE CITY, Feb. 19, 2026 /PRNewswire/ -- Extra Space Storage Inc. (NYSE: EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a member of the S&P 500 index, announced operating results for the three months and year ended December 31, 2025.

Highlights for the three months ended December 31, 2025:Achieved net income attributable to common stockholders of $1.36 per diluted share, representing a 9.7% increase compared to the same period in the prior year.Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.99 per diluted share. FFO, excluding adjustments ("Core FFO"), was $2.08 per diluted share, representing a 2.5% increase compared to the same period in the prior year.Same-store revenue increased by 0.4% and same-store net operating income ("NOI") increased by 0.1% compared to the same period in the prior year.Reported ending same-store occupancy of 92.6% as of December 31, 2025, compared to 93.3% as of December 31, 2024.Acquired 27 operating stores for a total cost of $304.8 million.In conjunction with joint venture partners, acquired seven operating stores for a total cost of approximately $106.9 million, of which the Company invested $10.7 million.Repurchased 1,089,659 shares of common stock for $140.9 million at an average share price of $129.32.Originated $80.4 million in mortgage and mezzanine bridge loans and sold $16.2 million in mortgage bridge loans.Added 78 stores (45 stores net) to the Company's third-party management platform. As of December 31, 2025, the Company managed 1,856 stores for third parties and 407 stores in unconsolidated joint ventures, for a total of 2,263 managed stores.Paid a quarterly dividend of $1.62 per share.Highlights for the year ended December 31, 2025:Achieved net income attributable to common stockholders of $4.59 per diluted share, representing a 13.9% increase compared to the same period in the prior year.  Achieved FFO of $7.90 per diluted share, and Core FFO of $8.21 per diluted share, representing a 1.1% increase compared to the same period in the prior year.Same-store revenue increased by 0.1% and same-store NOI decreased by (1.7)% compared to the same period in the prior year.Acquired 41 operating stores for a total cost of $483.6 million.Acquired the interest of our joint venture partners in three separate partnerships for $342.2 million. The Company now wholly owns the 28 properties previously owned by these entities. Also acquired six additional properties by exchanging ownership interest in 17 properties from an existing joint venture.In conjunction with joint venture partners, acquired ten 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 $183.6 million, of which the Company invested $53.5 million.Repurchased 1,158,244 shares of common stock for $149.5 million at an average share price of $129.10.Originated $409.4 million in mortgage and mezzanine bridge loans and sold $122.1 million in mortgage bridge loans.Added 379 stores (281 stores net) to the Company's third-party management platform. Joe Margolis, CEO of the Company, stated: "The team delivered steady results in 2025, achieving industry-leading occupancy and new customer rate growth, resulting in positive same-store revenue growth. Core FFO per share grew 1.1%, driven by the strength of our third-party management and bridge loan platform. Our joint venture relationships and disciplined capital allocation enabled us to source creative, off-market investment opportunities that will generate attractive long-term future returns.As we look ahead to 2026, we are seeing positive trends. We believe customer rates are strengthening, new supply is moderating, and our portfolio is well-positioned to benefit as the operating environment improves. Along with the steady contributions from our ancillary businesses, we expect to deliver improving results in the coming year."FFO Per Share:The following table (unaudited) outlines the Company's FFO and Core FFO for the three months and year ended December 31, 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 December 31,
For the Year Ended December 31,
2025
2024
2025
2024

(per share)1

(per share)1

(per share)1

(per share)1Net income attributable to
common stockholders$    287,395
$       1.36
$   262,487
$           1.24
$   973,999
$       4.59
$    854,681
$      4.03Impact of the difference in
weighted average number of
shares – diluted2

(0.06)

(0.05)

(0.19)

(0.17)Adjustments:

Real estate depreciation166,741
0.75
156,027
0.70
655,452
2.95
618,189
2.78Amortization of intangibles2,975
0.01
28,305
0.13
20,316
0.09
113,886
0.51Loss (gain) on real estate
assets held for sale and sold,
net6,079
0.03
(37,714)
(0.17)
76,310
0.34
25,906
0.12Unconsolidated joint venture
real estate depreciation and
amortization8,852
0.04
8,907
0.04
32,748
0.15
32,678
0.15Unconsolidated joint venture
gain on sale of real estate
assets and sale of a joint
venture interest(45,167)
(0.20)
—
—
(54,521)
(0.25)
(13,730)
(0.06)Income allocated to Operating
Partnership and other
noncontrolling interests 13,469
0.06
15,314
0.07
48,539
0.22
45,551
0.21FFO$    440,344
$       1.99
$   433,326
$           1.96
$ 1,752,843
$       7.90
$ 1,677,161
$      7.57

Adjustments:

Non-cash interest expense
related to amortization of
discount on unsecured senior
notes, net12,350
0.05
11,157
0.05
47,519
0.22
43,720
0.20Amortization of other
intangibles related to the Life
Storage Merger, net of tax
benefit3,917
0.02
5,761
0.02
16,283
0.07
26,959
0.12Acceleration of share-based
compensation expense due to
executive officer retirement4,200
0.02
—
—
4,200
0.02
—
—Impairment of Life Storage
trade name—
—
—
—
—
—
51,763
0.23CORE FFO$    460,811
$       2.08
$   450,244
$           2.03
$ 1,820,845
$       8.21
$ 1,799,603
$      8.12

Weighted average number of
shares – diluted3221,727,769

221,329,035

221,891,065

221,623,954

(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 months and year ended December 31, 2025 and 2024 (amounts shown in thousands, except store count data)1:
For the Three Months
Ended December 31,
Percent
For the Year Ended
December 31,
Percent
2025
2024
Change
2025
2024
ChangeSame-store property revenues2

Net rental income$      639,489
$     636,530
0.5 %
$ 2,549,537
$ 2,540,782
0.3 %Other income24,744
25,278
(2.1) %
99,277
104,752
(5.2) %Total same-store revenues$      664,233
$     661,808
0.4 %
$ 2,648,814
$ 2,645,534
0.1 %

Same-store operating expenses2

Payroll and benefits$        42,387
$       39,983
6.0 %
$   164,241
$   158,699
3.5 %Marketing14,763
13,781
7.1 %
63,166
60,059
5.2 %Office expense319,727
19,765
(0.2) %
80,381
80,565
(0.2) %Property operating expense416,032
16,950
(5.4) %
69,649
69,108
0.8 %Repairs and maintenance13,782
12,547
9.8 %
55,391
51,742
7.1 %Property taxes73,079
75,654
(3.4) %
298,563
277,569
7.6 %Insurance8,559
7,619
12.3 %
32,626
30,586
6.7 %Total same-store operating expenses$      188,329
$     186,299
1.1 %
$   764,017
$   728,328
4.9 %

Same-store net operating income2$      475,904
$     475,509
0.1 %
$ 1,884,797
$ 1,917,206
(1.7) %

Same-store square foot occupancy as of quarter
end92.6 %
93.3 %

92.6 %
93.3 %

Average same-store square foot occupancy93.1 %
93.6 %

93.7 %
93.3 %

Properties included in same-store51,804
1,804

1,804
1,804

(1)A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income."(2)Same-store revenues, operating expenses and net operating income do not include tenant reinsurance revenue or expense.(3)Includes general office expenses, computer, bank fees, and credit card merchant fees.(4)Includes utilities and miscellaneous other store expenses.(5)On January 1, 2025, the Company updated the property count of the same-store pool from 1,071 to 1,829 stores. In the year ended December 31, 2025, 25 properties were sold, reducing the same-store pool to 1,804 stores.Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three months and year ended December 31, 2025 and 2024 are provided in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.Investment and Property Management Activity:The following table (unaudited) outlines the Company's acquisitions and developments that are closed, completed or under agreement (dollars in thousands).

Closed/Completed through
December 31, 2025
Closed /Completed or
Scheduled to Still
Close/Complete in 2026
Total 2026Wholly-Owned Investment1
Stores
Price
Stores
Price
Stores
PriceOperating Stores2
41
$         483,561
1
$           12,500
1
$           12,500Buyout of JV Partners' Interest in
Operating Stores
28
342,150
—
—
—
—EXR Investment in Wholly-
Owned Stores
69
825,711
1
12,500
1
12,500

Joint Venture Investment1

EXR Investment in JV Acquisition of
Operating Stores
10
24,495
4
2,730
4
2,730EXR Investment in JV Development
and C of O
3
29,031
8
58,091
8
58,091EXR Investment in Joint
Ventures
13
53,526
12
60,821
12
60,821Total EXR Investment
82
$         879,237
13
$           73,321
13
$            73,321

(1)The locations of C of O and development stores and joint venture ownership interest details are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.(2)Includes the buyout of a partner's interest in one existing consolidated joint venture in the year ended December 31, 2025.The projected developments and acquisitions under agreement described above are subject to customary closing conditions and no assurance can be provided that these developments and acquisitions will be completed on the terms described, or at all.Property Sales:During the three months ended December 31, 2025, the Company sold its interest in nine of ten properties held in a joint venture, resulting in a net gain of $45.2 million, and the Company continues to manage these properties. The Company purchased the interest of its partner in the remaining property for $15.8 million. During the quarter the Company also completed the sale of 26 properties previously held for sale. Additionally, the Company listed one property as held for sale.  Bridge Loans:During the three months ended December 31, 2025, the Company originated $80.4 million in bridge loans and sold two bridge loans for $16.2 million. Outstanding balances of the Company's bridge loans were approximately $1.5 billion at the end of the quarter. The Company has an additional $57.7 million in bridge loans that have closed subsequent to quarter end or are under agreement to close in 2026. Additional details related to the Company's loan activity and balances held are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.Property Management:As of December 31, 2025, the Company managed 1,856 stores for third-party owners and 407 stores owned in unconsolidated joint ventures, for a total of 2,263 stores under management. The Company is the largest self-storage management company in the United States.Balance Sheet:During the three months ended December 31, 2025, the Company repurchased 1,089,659 shares of common stock for $140.9 million at an average price of $129.32 per share using its stock repurchase program, and as of December 31, 2025, the Company had authorization to purchase up to $350.5 million under the program. During the three months ended December 31, 2025, the Company did not issue any shares on its ATM program, and as of December 31, 2025, the Company had $800.0 million available for issuance.As of December 31, 2025, the Company's commercial paper program had total capacity of $1.0 billion, with $680.0 million in outstanding issuances.As of December 31, 2025, the Company's percentage of fixed-rate debt to total debt was 82.1%. Net of the impact of variable rate receivables, the effective fixed-rate debt to total debt was 92.7%. The weighted average interest rates of the Company's fixed and variable-rate debt were 4.2% and 4.8%, respectively. The combined weighted average interest rate was 4.3% with a weighted average maturity of approximately 4.5 years. Full details related to the Company's debt schedule are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.Dividends:On December 31, 2025, the Company paid a fourth quarter common stock dividend of $1.62 per share to stockholders of record at the close of business on December 15, 2025.Outlook:The following table outlines the Company's Core FFO estimates and assumptions for the year ending December 31, 2026.
Ranges for 2026 Annual Assumptions
Notes
(February 19, 2026)

Low
High

Core FFO$8.05
$8.35

Dilution per share from C of O and
value add acquisitions$0.18
$0.18

Same-store revenue growth(0.50) %
1.50 %
Same-store pool of 1,871 storesSame-store expense growth2.00 %
3.50 %
Same-store pool of 1,871 storesSame-store NOI growth(2.25) %
1.25 %
Same-store pool of 1,871 stores

Weighted average one-month SOFR3.46 %
3.46 %

Net tenant reinsurance income$289,000,000
$292,000,000

Management fees and other income$138,000,000
$139,500,000

Interest income$149,500,000
$151,000,000
Includes interest from bridge loans and dividends from
NexPoint preferred investmentGeneral and administrative expenses$190,500,000
$192,500,000
Includes non-cash compensationEquity in earnings of real estate
ventures$63,500,000
$64,500,000
Includes dividends from SmartStop preferred
investmentsInterest expense$590,000,000
$595,000,000
Excludes non-cash interest expense shown belowNon-cash interest expense related to
amortization of discount on unsecured
senior notes, net$42,000,000
$43,000,000
Amortization of debt mark-to-market; excluded from
Core FFOIncome Tax Expense$47,000,000
$48,000,000
Taxes associated with the Company's taxable REIT
subsidiaryAcquisitions$200,000,000
$200,000,000
Includes wholly-owned acquisitions and the Company's
investment in joint venturesBridge loans outstanding$1,475,000,000
$1,475,000,000
Represents the Company's average retained loan
balances for the yearWeighted average share count221,100,000
221,100,000
Assumes redemption of all OP units for common stock

(1)A reconciliation of net income outlook to same-store net operating income outlook is provided later in this release entitled "Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income." The reconciliation includes details related to same-store revenue and same-store expense outlooks. A reconciliation of net income per share outlook to funds from operations per share outlook is provided later in this release entitled "Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share."FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company's estimates are forward-looking and based on management's view of current and future market conditions. The Company's actual results may differ materially from these estimates.Supplemental Financial Information:Supplemental unaudited financial information regarding the Company's performance can be found on the Company's website at www.extraspace.com. Under the "Company Info" navigation menu on the home page, click on "Investor Relations," then under the "Financials" navigation menu click on "Quarterly Results." This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets.Conference Call:The Company will host a conference call at 1:00 p.m. Eastern Time on Friday, February 20, 2026, to discuss its financial results. Telephone participants may avoid any delays in joining the conference call by pre-registering for the call using the following link to receive a special dial-in number and PIN: https://events.q4inc.com/analyst/127770346?pwd=vGIh5v5JA live webcast of the call will also be available on the Company's investor relations website at https://ir.extraspace.com. To listen to the live webcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.A replay of the call will be available for 30 days on the investor relations section of the Company's website beginning at 5:00 p.m. Eastern Time on February 20, 2026. Forward-Looking Statements:Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include statements concerning the benefits of store acquisitions, developments, market conditions, our outlook and estimates for the year and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, the impact of broader economic trends on the storage industry, our plans or intentions relating to acquisitions and developments, and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:adverse changes in general economic conditions, the real estate industry and the markets in which we operate;potential liability for uninsured losses and environmental contamination;our ability to recover losses under our insurance policies;the impact of the regulatory environment as well as national, state and local laws and regulations, including, without limitation, those governing real estate investment trusts ("REITs"), tenant reinsurance and other aspects of our business, which could adversely affect our results;the effect of competition from new and existing stores or other storage alternatives, including increased or unanticipated competition for our properties, which could cause rents and occupancy rates to decline;failure to close pending acquisitions and developments on expected terms, or at all;risks associated with acquisitions, dispositions and development of properties, including increased development costs due to additional regulatory requirements related to climate change and other factors;reductions in asset valuations and related impairment charges;our reliance on information technologies, which are vulnerable to, among other things, attack from computer viruses and malware, hacking, cyberattacks and other unauthorized access or misuse, any of which could adversely affect our business and results;impacts from any outbreak of highly infectious or contagious diseases, including reduced demand for self-storage space and ancillary products and services such as tenant reinsurance, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results;economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan;our lack of sole decision-making authority with respect to our joint venture investments;disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow;availability of financing and capital, the levels of debt that we maintain and our credit ratings;changes in global financial markets, increases in interest rates and the impact of enacted and proposed U.S. tariffs on global economic conditions;the effect of recent or future changes to U.S. tax laws; andthe failure to maintain our REIT status for U.S. federal income tax purposes.All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.Definition of FFO:FFO provides relevant and meaningful information about the Company's operating performance that is necessary, along with net income and cash flows, for an understanding of the Company's operating results. The Company believes FFO is a meaningful disclosure as a supplement to net income. Net income assumes that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company's real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of operating stores and impairment write downs of depreciable real estate assets, plus depreciation and amortization related to real estate and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. The Company believes that to further understand the Company's performance, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company's consolidated financial statements. FFO should not be considered a replacement of net income computed in accordance with GAAP.For informational purposes, the Company also presents Core FFO. Core FFO excludes revenues and expenses not core to our operations and transaction costs. It also includes certain costs associated with the Life Storage Merger including non-cash interest related to the amortization of discount on unsecured senior notes and amortization of other intangibles, net of tax benefit. Although the Company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding revenues and expenses not core to our operations and non-cash interest charges, stockholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Core FFO by the Company should not be considered a replacement of the NAREIT definition of FFO. The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company's performance, as an alternative to net cash flow from operating activities as a measure of liquidity, or as an indicator of the Company's ability to make cash distributions.Definition of Same-Store:The Company's same-store pool for the periods presented consists of 1,804 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented. The Company considers a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to occupancy, rental revenue (growth), operating expenses (growth), net operating income (growth), etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments. Same-store results should not be used as a basis for future same-store performance or for the performance of the Company's stores as a whole.About Extra Space Storage Inc.: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 December 31, 2025, the Company owned and/or operated 4,281 self-storage stores in 43 states and Washington, D.C. The Company's stores comprise approximately 2.9 million units and approximately 330.4 million square feet of rentable space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.Extra Space Storage Inc.Condensed Consolidated Balance Sheets(In thousands, except share data)
December 31, 2025
December 31, 2024
(Unaudited)

Assets:

Real estate assets, net$            25,004,350
$          24,587,627Real estate assets - operating lease right-of-use assets732,176
689,803Investments in unconsolidated real estate entities1,066,783
1,332,338Investments in debt securities and notes receivable1,806,526
1,550,950Cash and cash equivalents138,920
138,222Other assets, net515,291
548,986Total assets $            29,264,046
$          28,847,926Liabilities, Noncontrolling Interests and Equity:

Secured notes payable, net$              1,079,565
$             1,010,541Unsecured term loans, net1,494,659
2,192,507Unsecured senior notes, net9,432,427
7,756,968Revolving lines of credit and commercial paper1,224,000
1,362,000Operating lease liabilities761,106
705,845Cash distributions in unconsolidated real estate ventures73,701
75,319Accounts payable and accrued expenses357,583
346,519Other liabilities516,969
538,865Total liabilities 14,940,010
13,988,564Commitments and contingencies

Noncontrolling Interests and Equity:

Extra Space Storage Inc. stockholders' equity:

Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued
or outstanding—
—Common stock, $0.01 par value, 500,000,000 shares authorized, 211,155,322
and 211,995,510 shares issued and outstanding at December 31, 2025 and
December 31, 2024, respectively2,112
2,120Additional paid-in capital14,880,646
14,831,946Accumulated other comprehensive income(420)
12,806Accumulated deficit(1,449,172)
(899,337)Total Extra Space Storage Inc. stockholders' equity13,433,166
13,947,535Noncontrolling interest represented by Preferred Operating Partnership units53,827
76,092Noncontrolling interests in Operating Partnership, net and other noncontrolling
interests837,043
835,735Total noncontrolling interests and equity14,324,036
14,859,362Total liabilities, noncontrolling interests and equity$            29,264,046
$          28,847,926 Consolidated Statement of Operations for the Three Months and Year Ended December 31, 2025 and 2024 (In thousands, except share and per share data) - Unaudited

For the Three Months Ended
December 31,
For the Year Ended
December 31,
2025
2024
2025
2024Revenues:

Property rental$         734,225
$      707,234
$      2,895,190
$    2,803,252Tenant reinsurance89,251
83,695
352,876
332,795Management fees and other income33,991
30,967
129,476
120,855Total revenues857,467
821,896
3,377,542
3,256,902Expenses:

Property operations231,459
221,111
918,148
831,566Tenant reinsurance 17,031
18,240
68,873
73,886General and administrative51,938
44,025
186,343
167,398Depreciation and amortization180,089
196,202
715,177
783,023Total expenses480,517
479,578
1,888,541
1,855,873(Loss) gain on real estate assets held for sale and sold, net(6,079)
37,714
(76,310)
(25,906)Impairment of Life Storage trade name—
—
—
(51,763)Income from operations370,871
380,032
1,412,691
1,323,360Interest expense(149,436)
(138,479)
(587,613)
(551,354)Non-cash interest expense related to amortization of discount on unsecured senior
notes, net(12,350)
(11,157)
(47,519)
(43,720)Interest income38,649
34,676
163,202
124,422Income before equity in earnings and dividend income from unconsolidated real
estate entities and income tax expense247,734
265,072
940,761
852,708Equity in earnings and dividend income from unconsolidated real estate entities16,931
18,764
68,815
67,272Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate
assets and sale of a joint venture interest45,167
—
54,521
13,730Income tax expense(8,968)
(6,035)
(41,559)
(33,478)Net income300,864
277,801
1,022,538
900,232Net income allocated to Preferred Operating Partnership noncontrolling interests(723)
(1,189)
(2,894)
(7,262)Net income allocated to Operating Partnership and other noncontrolling interests(12,746)
(14,125)
(45,645)
(38,289)Net income attributable to common stockholders$         287,395
$      262,487
$         973,999
$       854,681Earnings per common share

Basic $               1.36
$            1.24
$               4.59
$             4.03Diluted $               1.36
$            1.24
$               4.59
$             4.03Weighted average number of shares

Basic211,648,451
211,737,843
211,850,521
211,575,240Diluted221,052,557
211,737,843
211,850,521
211,577,680  Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three Months and Year EndedDecember 31, 2025 and 2024 (In thousands) - Unaudited

For the Three Months Ended
December 31,
For the Year Ended December
31,
2025
2024
2025
2024Net Income$         300,864
$         277,801
$     1,022,538
$         900,232Adjusted to exclude:

Loss (gain) on real estate assets held for sale and sold, net6,079
(37,714)
76,310
25,906Equity in earnings and dividend income from unconsolidated real
estate entities(16,931)
(18,764)
(68,815)
(67,272)Equity in earnings of unconsolidated real estate ventures - gain on sale
of real estate assets and sale of a joint venture interest(45,167)
—
(54,521)
(13,730)Interest expense149,436
138,479
587,613
551,354Non-cash interest expense related to amortization of discount on
unsecured senior notes, net12,350
11,157
47,519
43,720Depreciation and amortization180,089
196,202
715,177
783,023Impairment of Life Storage trade name—
—
—
51,763Income tax expense8,968
6,035
41,559
33,478General and administrative51,938
44,025
186,343
167,398Management fees, other income and interest income(72,640)
(65,643)
(292,678)
(245,277)Net tenant insurance(72,220)
(65,455)
(284,003)
(258,909)Non same-store rental revenue(69,992)
(45,426)
(246,376)
(157,718)Non same-store operating expense43,130
34,812
154,131
103,238Total same-store net operating income$         475,904
$         475,509
$     1,884,797
$     1,917,206

Same-store rental revenues664,233
661,808
2,648,814
2,645,534Same-store operating expenses188,329
186,299
764,017
728,328Same-store net operating income$         475,904
$         475,509
$     1,884,797
$     1,917,206 Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share —
for the Year Ending December 31, 2026 - Unaudited

For the Year Ending December 31, 2026

Low End
High EndNet income attributable to common stockholders per diluted share
$                         4.40
$                         4.70Income allocated to noncontrolling interest - Preferred Operating
Partnership and Operating Partnership
0.22
0.22Net income attributable to common stockholders for diluted computations
4.62
4.92

Adjustments:

Real estate depreciation
3.02
3.02Amortization of intangibles
0.05
0.05Unconsolidated joint venture real estate depreciation and amortization
0.13
0.13Funds from operations attributable to common stockholders
7.82
8.12

Adjustments:

Non-cash interest expense related to amortization of discount on unsecured
senior notes, net
0.19
0.19Amortization of other intangibles related to the Life Storage Merger, net of
tax benefit
0.04
0.04Core funds from operations attributable to common stockholders
$                         8.05
$                         8.35 Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income —
for the Year Ending December 31, 2026 (In thousands) - Unaudited

For the Year Ending December 31, 2026
Low
High

Net Income$                     1,000,500
$                     1,084,000Adjusted to exclude:

Equity in earnings of unconsolidated joint ventures(63,500)
(64,500)Interest expense595,000
590,000Non-cash interest expense related to amortization of discount on
unsecured senior notes, net43,000
42,000Depreciation and amortization713,500
713,500Income tax expense48,000
47,000General and administrative 192,500
190,500Management fees and other income(138,000)
(139,500)Interest income(149,500)
(151,000)Net tenant reinsurance income(289,000)
(292,000)Non same-store rental revenues(219,000)
(220,000)Non same-store operating expenses144,500
144,000Total same-store net operating income1$                     1,878,000
$                     1,944,000

Same-store rental revenues12,693,000
2,747,000Same-store operating expenses1815,000
803,000Total same-store net operating income1$                     1,878,000
$                     1,944,000

(1)Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2026 same-store pool of 1,871 stores.

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Original: Extra Space Storage Inc. Reports 2025 Fourth Quarter and Year-End Results