Extra Space Storage reported third‑quarter 2025 results, posting funds from operations of $461.1 million, or $2.08 per share, and net income attributable to common stockholders of $166.0 million, or $0.78 per share.
Same‑store revenue for the quarter was $674.0 million, a 0.2% decline from the prior year. Same‑store operating expenses increased 5.8% to $196.7 million, resulting in a same‑store net operating income of $477.2 million, down 2.5% year over year. Same‑store square‑foot occupancy rose to 93.7%, up from 93.6% in 2024.
New‑customer rates grew year over year for the first time since March 2022, reflecting a modest rebound in pricing power. Bridge loan originations totaled $122.7 million during the quarter, and the company’s outstanding bridge loan balance was approximately $1.5 billion.
Management highlighted that higher same‑store operating expenses were driven by increased insurance costs, payroll, and inflationary pressure on property maintenance. The company also noted that its acquisition pipeline remains robust, supporting the upward revision of Core FFO guidance.
For the full year, the company revised Core FFO guidance to $8.12 to $8.20 per share. Same‑store revenue growth guidance was adjusted to –0.25% to 0.25%, and same‑store expense growth guidance was set at 4.5% to 5.0%. Same‑store NOI growth guidance was revised to –2.25% to –1.25%. The quarterly dividend remains at $1.62 per share.
Extra Space Storage continues to expand its third‑party management platform, adding new stores and generating fee income with minimal capital investment. The company’s bridge lending program remains a key revenue source, providing financing to third‑party self‑storage operators. The shift to a single‑brand strategy, integrating Life Storage, is expected to reduce marketing costs and increase operational efficiency.
The self‑storage market remains competitive, with peers such as Public Storage and CubeSmart. Industry headwinds include a post‑pandemic cooling period that has increased competition and pressured pricing power. Despite these challenges, the company maintains a debt‑to‑equity ratio of 0.99 and a current ratio of 0.29, supporting its financial flexibility.
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