75.3 F
Boston
HomeInvestmentsExtra Space Storage Inc. Reports 2024 First Quarter Results

Extra Space Storage Inc. Reports 2024 First Quarter Results

SALT LAKE CITY, April 30, 2024 /PRNewswire/ — Extra Space Storage Inc. (NYSE: EXR) (the “Company”), a leading owner and operator of self-storage facilities in the United States and a constituent of the S&P 500, announced operating results for the three months ended March 31, 2024.

Highlights for the three months ended March 31, 2024:

  • Achieved net income attributable to common stockholders of $1.01 per diluted share, representing a 30.8% decrease compared to the same period in the prior year primarily due to non-cash interest and amortization of intangibles related to the Company’s 2023 merger (the “Life Storage Merger”) with Life Storage, Inc. (“Life Storage” or “LSI”).
  • Achieved funds from operations attributable to common stockholders and unit holders (“FFO”) of $1.87 per diluted share. FFO, excluding adjustments (“Core FFO”), was $1.96 per diluted share, representing a 3.0% decrease compared to the same period in the prior year.
  • Increased same-store revenue by 1.0% and same-store net operating income (“NOI”) decreased by (0.5)% compared to the same period in the prior year.
  • Reported ending same-store occupancy of 93.2% as of March 31, 2024, compared to 92.7% as of March 31, 2023.
  • The Company acquired five operating stores and one store at completion of construction (“Certificate of Occupancy stores” or “C of O stores”) for a total cost of approximately $35.1 million.
  • In conjunction with a joint venture partner, completed one development for a total cost of approximately $20.4 million, of which the Company invested $19.4 million.
  • Originated $164.3 million in mortgage and mezzanine bridge loans.
  • Added 97 stores (72 stores net) to the Company’s third-party management platform. As of March 31, 2024, the Company managed 1,409 stores for third parties and 472 stores in unconsolidated joint ventures, for a total of 1,881 managed stores.
  • Paid a quarterly dividend of $1.62 per share.

Joe Margolis, CEO of Extra Space Storage Inc., commented: “We achieved positive year-over-year occupancy growth in the Extra Space and Life Storage same-store pools.  We have also continued to realize G&A savings and to expand our bridge lending and third party management programs.  Rental activity has been strong year to date and vacates remain muted, which positions us well to maximize revenue during the 2024 leasing season.”

FFO Per Share:

The following table (unaudited) outlines the Company’s FFO and Core FFO for the three months ended March 31, 2024 and 2023.  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,


2024


2023




(per share)1




(per share)1

Net income attributable to common stockholders

$   213,112


$       1.01


$   196,304


$       1.46

Impact of the difference in weighted average number of shares – diluted2



(0.05)




(0.09)

Adjustments:








Real estate depreciation

154,372


0.70


71,248


0.50

Amortization of intangibles

29,284


0.12


4,170


0.03

Unconsolidated joint venture real estate depreciation and amortization

7,840


0.04


4,939


0.03

Distributions paid on Series A Preferred Operating Partnership units



(159)


Income allocated to Operating Partnership and other noncontrolling interests

10,962


0.05


12,574


0.09

FFO

$   415,570


$       1.87


$   289,076


$       2.02









Adjustments:








Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes

10,705


0.05



Amortization of other intangibles related to the Life Storage Merger, net of tax benefit

7,440


0.04



CORE FFO

$   433,715


$       1.96


$   289,076


$       2.02









Weighted average number of shares – diluted3

221,737,606




143,357,961





(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 ended March 31, 2024 and 2023 (amounts shown in thousands, except store count data)1:


For the Three Months
Ended March 31,


Percent


2024


2023


Change

Same-store property revenues2






Net rental income

$   398,792


$   395,259


0.9 %

Other income

15,865


15,320


3.6 %

Total same-store revenues

$   414,657


$   410,579


1.0 %







Same-store operating expenses2






Payroll and benefits

$      24,506


$      22,526


8.8 %

Marketing

8,853


7,173


23.4 %

Office expense3

13,415


13,057


2.7 %

Property operating expense4

10,287


11,012


(6.6) %

Repairs and maintenance

7,470


7,085


5.4 %

Property taxes

38,057


37,416


1.7 %

Insurance

5,262


3,921


34.2 %

Total same-store operating expenses

$   107,850


$   102,190


5.5 %







Same-store net operating income2

$   306,807


$   308,389


(0.5) %







Same-store square foot occupancy as of quarter end

93.2 %


92.7 %









Average same-store square foot occupancy

93.1 %


92.8 %









Properties included in same-store5

1,078


1,078





(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, 2024 the Company updated the property count of the same-store pool from 913 to 1,078 stores.

Details related to the same-store performance of stores by metropolitan statistical area (“MSA”) for the three months ended March 31, 2024 and 2023 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, 2024


Closed/Completed
Subsequent to 
March 31, 2024


Scheduled to Still
Close/Complete
in 2024


Total 2024


To Close/Complete
in 2025

Wholly-Owned Investment


Stores


Price


Stores


Price


Stores


Price


Stores


Price


Stores


Price

Operating Stores


5


$     25,150


1


$    8,500


1


$   6,700


7


$    40,350



$        —

C of O and Development Stores1


1


9,923


1


12,448


2


25,166


4


47,537



EXR Investment in Wholly-
Owned Stores


6


35,073


2


20,948


3


31,866


11


87,887
























Joint Venture Investment1





















EXR Investment in JV
      Acquisition of Operating
     Stores











EXR Investment in JV
      Development and C of O


1


19,395




9


95,866


10


115,261


3


44,082

EXR Investment in Joint
Ventures


1


19,395




9


95,866


10


115,261


3


44,082

Total EXR Investment


7


$     54,468


2


$  20,948


12


$  127,732


21


$ 203,148


3


$  44,082



(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/.

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.

Bridge Loans:

During the three months ended March 31, 2024, the Company originated $164.3 million in bridge loans and did not sell any bridge loans, resulting in outstanding balances of approximately $752.3 million at quarter end. The Company has an additional $543.5 million in bridge loans that have closed subsequent to quarter end or are under agreement to close in 2024 and 2025.  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, 2024, the Company managed 1,409 stores for third-party owners and 472 stores owned in unconsolidated joint ventures, for a total of 1,881 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, 2024, the Company completed a public bond offering issuing $600.0 million of 5.4% senior unsecured notes due 2034.

During the three months ended March 31, 2024, the Company did not issue any shares on its ATM program, and as of March 31, 2024 it had $800.0 million available for issuance. Likewise, the Company did not repurchase any shares of common stock using its stock repurchase program during the quarter, and as of March 31, 2024, the Company had authorization to purchase up to $500.0 million under the program. 

Subsequent to quarter end, on April 15, 2024, the Company reestablished its ATM program by entering a new equity distribution agreement for $800.0 million, which replaced and superseded its previous equity distribution agreement.

As of March 31, 2024, the Company’s percentage of fixed-rate debt to total debt was 77.2%. Net of the impact of variable rate receivables, the effective fixed-rate debt to total debt was 83.7%.  The weighted average interest rates of the Company’s fixed and variable-rate debt were 4.0% and 6.5%, respectively. The combined weighted average interest rate was 4.5% with a weighted average maturity of approximately 4.9 years.

Dividends:

On March 29, 2024, 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 15, 2024.

Outlook:

The following table outlines the Company’s Core FFO estimates and assumptions for the year ending December 31, 20241.


Ranges for 2024

Annual Assumptions


Ranges for 2024    

Annual Assumptions


Notes


(April 30, 2024)


(February 27, 2024)




Low


High


Low


High



Core FFO

$7.85


$8.15


$7.85


$8.15



Dilution per share from C of O and value add acquisitions

$0.20


$0.20


$0.20


$0.20



EXR Same-store revenue growth

(2.00) %


0.50 %


(2.00) %


0.50 %


Same-store pool of 1,078 stores

EXR Same-store expense growth

4.00 %


5.50 %


4.00 %


5.50 %


Same-store pool of 1,078 stores

EXR Same-store NOI growth

(4.25) %


(0.50) %


(4.25) %


(0.50) %


Same-store pool of 1,078 stores











Legacy LSI Same-store revenue growth

2.00 %


4.50 %


2.00 %


4.50 %


Same-store pool of 663 stores

Legacy LSI Same-store expense growth

6.25 %


7.75 %


6.25 %


7.75 %


Same-store pool of 663 stores

Legacy LSI Same-store NOI growth

(0.25) %


4.00 %


(0.25) %


4.00 %


Same-store pool of 663 stores











Weighted average one-month SOFR

5.20 %


5.20 %


4.75 %


4.75 %













Net tenant reinsurance income

$248,000,000


$251,000,000


$248,000,000


$251,000,000



Management fees and other income

$117,500,000


$118,500,000


$116,500,000


$117,500,000



Interest income

$105,000,000


$106,000,000


$95,000,000


$96,000,000


Includes interest from bridge loans
and dividends from NexPoint preferred
investment

General and administrative expenses

$176,000,000


$178,000,000


$180,500,000


$182,500,000


Includes non-cash compensation

Average monthly cash balance

$60,000,000


$60,000,000


$65,000,000


$65,000,000



Equity in earnings of real estate ventures

$66,000,000


$67,000,000


$66,000,000


$67,000,000


Includes dividends from SmartStop
preferred investments

Interest expense

$537,000,000


$541,000,000


$521,000,000


$525,000,000


Excludes non-cash interest expense
shown below

Non-cash interest expense related to amortization of discount
on Life Storage unsecured senior notes

$43,000,000


$44,000,000


$43,000,000


$44,000,000


Amortization of LSI debt mark-to-market;
excluded from Core FFO

Income Tax Expense

$32,000,000


$33,000,000


$31,000,000


$32,000,000


Taxes associated with the Company’s
taxable REIT subsidiary

Acquisitions

$250,000,000


$250,000,000


$250,000,000


$250,000,000


Represents the Company’s investment

Bridge loans outstanding

$825,000,000


$825,000,000


$750,000,000


$750,000,000


Represents the Company’s average retained
loan balances for 2024

Weighted average share count

221,800,000


221,800,000


221,800,000


221,800,000


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 & Stock Information” navigation menu click on “Quarterly Earnings.” 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, May 1, 2024, 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://register.vevent.com/register/BI2a9f1400a8d044119e6707854d2128d9.

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 May 1, 2024. 

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, favorable market conditions, our outlook and estimates for the year, statements concerning the impact of the Life Storage Merger and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, plans or intentions relating to acquisitions and developments, estimated hurricane-related insurance claims 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;
  • failure to realize the expected benefits of the Life Storage Merger;
  • the risk that Life Storage’s business will not be fully integrated successfully or that such integration may be more difficult, time-consuming or costly than expected;
  • the uncertainty of expected future financial performance and results of the combined company following completion of the Life Storage Merger;
  • failure to close pending acquisitions and developments on expected terms, or at all;
  • 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;
  • potential liability for uninsured losses and environmental contamination;
  • 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;
  • our ability to recover losses under our insurance policies;
  • 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;
  • 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;
  • changes in global financial markets and increases in interest rates;
  • availability of financing and capital, the levels of debt that we maintain and our credit ratings;
  • 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 lack of sole decision-making authority with respect to our joint venture investments;
  • the effect of recent or future changes to U.S. tax laws;
  • the failure to maintain our REIT status for U.S. federal income tax purposes;
  • 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; and
  • economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan.

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 transition costs, 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 1,078 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. No modification has been made to the same-store pool to include any assets acquired from Life Storage.

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, 2024, the Company owned and/or operated 3,793 self-storage stores in 42 states and Washington, D.C. The Company’s stores comprise approximately 2.6 million units and approximately 290.0 million square feet of rentable space operating under the Extra Space, Life Storage and Storage Express brands. 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, 2024


December 31, 2023


(Unaudited)



Assets: 




Real estate assets, net

$            24,494,676


$          24,555,873

Real estate assets – operating lease right-of-use assets

222,940


227,241

Investments in unconsolidated real estate entities

1,066,032


1,071,617

Investments in debt securities and notes receivable

1,058,506


904,769

Cash and cash equivalents

50,816


99,062

Other assets, net

587,147


597,700

Total assets 

$            27,480,117


$          27,456,262

Liabilities, Noncontrolling Interests and Equity:




Secured notes payable, net

$              1,269,752


$             1,273,549

Unsecured term loans, net

2,251,714


2,650,581

Unsecured senior notes, net

7,016,085


6,410,618

Revolving lines of credit

620,000


682,000

Operating lease liabilities

232,682


236,515

Cash distributions in unconsolidated real estate ventures

71,988


71,069

Accounts payable and accrued expenses

338,027


334,518

Other liabilities

390,894


383,463

Total liabilities 

12,191,142


12,042,313

Commitments 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, 211,658,812 and 211,278,803
shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively

2,117


2,113

Additional paid-in capital

14,776,888


14,750,388

Accumulated other comprehensive income

28,191


17,435

Accumulated deficit

(510,680)


(379,015)

Total Extra Space Storage Inc. stockholders’ equity

14,296,516


14,390,921

Noncontrolling interest represented by Preferred Operating Partnership units, net

218,824


222,360

Noncontrolling interests in Operating Partnership, net and other noncontrolling interests

773,635


800,668

Total noncontrolling interests and equity

15,288,975


15,413,949

Total liabilities, noncontrolling interests and equity

$            27,480,117


$          27,456,262

Consolidated Statement of Operations for the Three Months Ended March 31, 2024 and 2023

(In thousands, except share and per share data) – Unaudited



For the Three Months Ended
March 31,


2024


2023

Revenues:




Property rental

$         688,044


$      433,962

Tenant reinsurance

81,347


47,704

Management fees and other income

30,148


21,384

Total revenues

799,539


503,050

Expenses:




Property operations

204,518


117,166

Tenant reinsurance

18,505


9,089

General and administrative

43,722


34,763

Depreciation and amortization

196,966


78,490

Total expenses

463,711


239,508

Income from operations

335,828


263,542

Interest expense

(132,887)


(80,099)

Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes

(10,705)


Interest income

23,573


19,438

Income before equity in earnings and dividend income from unconsolidated real estate entities and income tax expense

215,809


202,881

Equity in earnings and dividend income from unconsolidated real estate entities

15,007


10,305

Income tax expense

(6,742)


(4,308)

Net income

224,074


208,878

Net income allocated to Preferred Operating Partnership noncontrolling interests

(2,208)


(2,254)

Net income allocated to Operating Partnership and other noncontrolling interests

(8,754)


(10,320)

Net income attributable to common stockholders

$         213,112


$      196,304

Earnings per common share




Basic

$               1.01


$            1.46

Diluted

$               1.01


$            1.46

Weighted average number of shares




Basic

211,283,335


134,511,273

Diluted

220,018,777


142,940,384

Cash 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 Ended March 31,
2024 and 2023
(In thousands) – Unaudited  



For the Three Months Ended
March 31,


2024


2023

Net Income

$         224,074


$         208,878

Adjusted to exclude:




Equity in earnings and dividend income from unconsolidated real estate entities

(15,007)


(10,305)

Interest expense

132,887


80,099

Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes

10,705


Depreciation and amortization

196,966


78,490

Income tax expense

6,742


4,308

General and administrative

43,722


34,763

Management fees, other income and interest income

(53,721)


(40,822)

Net tenant insurance

(62,842)


(38,615)

Non same-store rental revenue

(273,387)


(23,383)

Non same-store operating expense

96,668


14,976

Total same-store net operating income

$         306,807


$         308,389





Same-store rental revenues

414,657


410,579

Same-store operating expenses

107,850


102,190

Same-store net operating income

$         306,807


$         308,389

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, 2024
 – Unaudited




For the Year Ending December 31, 2024



Low End


High End

Net income attributable to common stockholders per diluted share


$                         3.86


$                         4.16

Income allocated to noncontrolling interest – Preferred Operating Partnership and Operating Partnership


0.21


0.21

Net income attributable to common stockholders for diluted computations


4.07


4.37






Adjustments:





Real estate depreciation


2.79


2.79

Amortization of intangibles


0.53


0.53

Unconsolidated joint venture real estate depreciation and amortization


0.14


0.14

Funds from operations attributable to common stockholders


7.53


7.83






Adjustments:





Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes


0.20


0.20

Amortization of other intangibles related to the Life Storage Merger, net of tax benefit


0.12


0.12

Core funds from operations attributable to common stockholders


$                         7.85


$                         8.15

Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending
December 31, 2024
(In thousands) – Unaudited



For the Year Ending December 31, 2024


 Low


 High





Net Income

$                         896,000


$                         958,500

Adjusted to exclude:




Equity in earnings of unconsolidated joint ventures

(66,000)


(67,000)

Interest expense

541,000


537,000

Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes

44,000


43,000

Depreciation and amortization

786,500


786,500

Income tax expense

33,000


32,000

General and administrative

178,000


176,000

Management fees and other income

(117,500)


(118,500)

Interest income

(105,000)


(106,000)

Net tenant reinsurance income

(248,000)


(251,000)

Non same-store rental revenues

(1,134,000)


(1,134,000)

Non same-store operating expenses

398,000


398,000

Total same-store net operating income1

$                     1,206,000


$                     1,254,500





Same-store rental revenues1

1,640,500


1,683,000

Same-store operating expenses1

434,500


428,500

Total same-store net operating income1

$                     1,206,000


$                     1,254,500



(1)

Estimated same-store rental revenues, operating expenses and net operating income are for the Company’s 2024 same-store pool of 1,078 stores.

SOURCE Extra Space Storage Inc.

Originally published at https://www.prnewswire.com/news-releases/extra-space-storage-inc-reports-2024-first-quarter-results-302132076.html
Images courtesy of https://pixabay.com

- Part of VUGA -marketing agency

latest articles

gossip tv free

explore more

free fashion tv