What to Expect From Extra Space Storage's Next Quarterly Earnings Report

With a market cap of $32.1 billion, Salt Lake City, Utah-based Extra Space Storage Inc. EXR is a leading real estate investment trust (REIT) and the largest operator of self-storage properties in the United States. With a portfolio of 3,862 stores across 42 states and Washington, D.C., the company provides 296.7 million square feet of secure, rentable storage space under its Extra Space, Life Storage, and Storage Express brands. EXR is expected to release its fiscal Q4 earnings results on Tuesday, Feb. 25. 

Ahead of this event, analysts project the self-storage facility REIT to report an AFFO of $2.02 per share, in line with the results from the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarterly reports while missing on another. In the most recent quarter, EXR exceeded the consensus AFFO estimate by a margin of nearly 2%.

For fiscal 2024, analysts forecast EXR to report an AFFO of $8.10 per share, matching the figure recorded in the prior year. 

Extra Space Storage has risen 3.5% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 25.3% gain and the Real Estate Select Sector SPDR Fund's (XLRE) 8.9% return over the same time frame. 

Despite beating expectations with Q3 core FFO of $2.07 per share and revenue of $824.8 million on Oct. 29, shares of Extra Space Storage fell marginally the next day due to concerns over operational headwinds. The decline in same-store revenues and NOI signaled challenges in core property performance. Additionally, a 16.2% rise in interest expenses to $142.9 million, highlighting higher borrowing costs. The updated 2024 guidance also included negative same-store NOI growth, reflecting ongoing pressure on profitability.

Analysts' consensus view on EXR stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 18 analysts covering the stock, five suggest a "Strong Buy," one gives a "Moderate Buy," 11 recommend a "Hold," and one advises "Moderate Sell." 

As of writing, EXR is trading below the average analyst price target of $168.18. 

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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