three months ended September 30, 2026
Filed Oct 27, 2026Extra Space Storage Inc. Reports 2026 Third Quarter Results
Core FFO per share increased 4.3%, same-store NOI increased 4.6%, and the Company raised its 2026 Core FFO range to $8.40 to $8.50 from $8.25 to $8.40 while repurchasing $327.1 million of shares.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30GAAP | $889.8M | – | – |
| Property rental revenue, three months ended September 30GAAP | $760.8M | – | – |
| Tenant reinsurance revenue, three months ended September 30GAAP | $94.20M | – | – |
| Management fees and other income, three months ended September 30GAAP | $34.76M | – | – |
| Total expenses, three months ended September 30GAAP | $492.1M | – | – |
| Property operations expense, three months ended September 30GAAP | $238.8M | – | – |
| Tenant reinsurance expense, three months ended September 30GAAP | $17.93M | – | – |
| General and administrative expense, three months ended September 30GAAP | $45.74M | – | – |
| Depreciation and amortization, three months ended September 30GAAP | $189.6M | – | – |
| Loss on real estate assets held for sale and sold, net, three months ended September 30GAAP | $5.82M | – | – |
| Income from operations, three months ended September 30GAAP | $391.9M | – | – |
| Interest expense, three months ended September 30GAAP | $151.2M | – | – |
| Non-cash interest expense related to amortization of discount on unsecured senior notes, net, three months ended September 30GAAP | $9.71M | – | – |
| Interest income, three months ended September 30GAAP | $37.4M | – | – |
| Equity in earnings and dividend income from unconsolidated real estate entities, three months ended September 30GAAP | $17.01M | – | – |
| Income tax expense, three months ended September 30GAAP | $12.07M | – | – |
| Net income, three months ended September 30GAAP | $259.4M | – | – |
| Net income attributable to common stockholders, three months ended September 30GAAP | $247.8M | – | – |
| Diluted earnings per common share, three months ended September 30GAAP | $ 1.17 | – | 50.0% |
| FFO attributable to common stockholders and unit holders per share, three months ended September 30non-GAAP | $ 2.12 per diluted share | – | – |
| Core FFO per share, three months ended September 30non-GAAP | $ 2.17 per diluted share | – | 4.3% |
| Total same-store revenues, three months ended September 30other | $701.7M | – | 2.7% |
| Total same-store operating expenses, three months ended September 30other | $197.0M | – | (1.8)% |
| Same-store net operating income, three months ended September 30other | $504.7M | – | 4.6% |
| Same-store square foot occupancy as of quarter endother | 94.0% | – | – |
| Average same-store square foot occupancy, three months ended September 30other | 94.3% | – | – |
| Total revenues, nine months ended September 30GAAP | $2.62B | – | – |
| Net income attributable to common stockholders, nine months ended September 30GAAP | $752.2M | – | – |
| Diluted earnings per common share, nine months ended September 30GAAP | $ 3.56 | – | 10.2% |
| FFO attributable to common stockholders and unit holders per share, nine months ended September 30non-GAAP | $ 6.16 per diluted share | – | – |
| Core FFO per share, nine months ended September 30non-GAAP | $ 6.37 per diluted share | – | 3.9% |
| Same-store net operating income, nine months ended September 30other | $1.48B | – | 3.2% |
| Cash and cash equivalents as of September 30, 2026GAAP | $114.8M | – | – |
| Total assets as of September 30, 2026GAAP | $28.96B | – | – |
| Total liabilities as of September 30, 2026GAAP | $15.20B | – | – |
| Unsecured senior notes, net, as of September 30, 2026GAAP | $9.42B | – | – |
| Revolving lines of credit and commercial paper as of September 30, 2026GAAP | $1.42B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Same-store property revenuesNet rental income was $ 675,218 and other income was $ 26,463. | $701.7M | – | 2.7% |
| Net rental incomeSame-store property revenue line item. | $675.2M | – | 2.9% |
| Other incomeSame-store property revenue line item. | $26.46M | – | (1.0)% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
year ending December 31, 2026 outlook
- Revenue$ 2,756,000 to $ 2,770,000 same-store rental revenues (In thousands)
- Operating expenses$ 790,100 to $ 786,300 same-store operating expenses (In thousands)
- NoteCore FFO: $8.40 to $8.50
- NoteNet income attributable to common stockholders per diluted share: $ 4.48 to $ 4.58
- NoteFunds from operations attributable to common stockholders: 8.15 to 8.25
- NoteSame-store revenue growth: 2.00% to 2.50%
- NoteSame-store expense growth: 0.00% to 0.50%
- NoteSame-store NOI growth: 2.50% to 3.50%
- NoteTotal same-store net operating income: $ 1,965,900 to $ 1,983,700 (In thousands)
- NoteNet tenant reinsurance income: $298,000,000 to $300,000,000
- NoteManagement fees and other income: $138,000,000 to $139,000,000
- NoteInterest income: $152,500,000 to $153,500,000
- NoteGeneral and administrative expenses: $188,500,000 to $189,500,000
- NoteEquity in earnings of real estate ventures: $65,000,000 to $66,000,000
- NoteInterest expense: $602,000,000 to $604,000,000
- NoteIncome Tax Expense: $48,000,000 to $49,000,000
- NoteAcquisitions: $400,000,000
- NoteBridge loans outstanding: $1,425,000,000
- NoteWeighted average share count: 220,500,000
Capital returns
- Repurchased 2,390,497 shares of common stock for $327.1 million at an average price of $136.85 per share during the three months ended September 30, 2026.
- Repurchased 2,401,606 shares of common stock for $328.6 million at an average price of $136.81 per share during the nine months ended September 30, 2026.
- Subsequent to quarter end, repurchased 164,724 shares of common stock for $21.8 million at an average price of $132.45.
- The subsequent repurchases fully utilized the capacity of the Company's $500.0 million share repurchase program.
- On October 15, 2026, the board authorized an updated share repurchase program allowing repurchases with an aggregate value up to $500.0 million.
- Paid a third quarter common stock dividend of $1.62 per share on September 30, 2026.
- Cash dividends paid per common share were $ 1.62 for the three months ended September 30, 2026 and $ 4.86 for the nine months ended September 30, 2026.
What drove it
- Same-store revenue increased 2.7%, while same-store operating expenses decreased 1.8%, resulting in 4.6% same-store NOI growth.
- Same-store net rental income increased 2.9%; other income decreased (1.0)%.
- Payroll and benefits decreased (4.6)%, marketing decreased (6.8)%, repairs and maintenance decreased (20.0)%, and insurance decreased (16.5)%.
- Property taxes increased 4.9% and office expense increased 4.9%.
- Ending same-store occupancy was 94.0%, compared with 93.7% as of September 30, 2025.
- The Company purchased four operating stores for a total cost of $48.6 million during the quarter and originated $19.5 million in mortgage and mezzanine bridge loans.
- The Company added 78 stores (-1 store net) to its third-party management platform during the quarter.
Concerns
- Interest expense was $ 151,170 (In thousands), compared with $ 149,650 (In thousands) in the prior-year quarter.
- Interest income was $ 37,400 (In thousands), compared with $ 43,588 (In thousands) in the prior-year quarter.
- The Company recorded $ 13,883 (In thousands) of impairment loss on unconsolidated joint venture interests during the quarter, compared with a $ 9,354 (In thousands) gain on sale of unconsolidated joint venture interests in the prior-year quarter.
- Other same-store income declined (1.0)% year over year.
- Current 2026 guidance assumes $400,000,000 of acquisitions and $1,425,000,000 of bridge loans outstanding.
What to watch
- Progress toward the 2.00% to 2.50% 2026 same-store revenue growth outlook and 2.50% to 3.50% same-store NOI growth outlook.
- Same-store occupancy relative to the 94.0% ending level as of September 30, 2026.
- Execution of the updated share repurchase program authorized for up to $500.0 million.
- Bridge-loan balances, which were approximately $1.4 billion at quarter end, relative to the $1,425,000,000 full-year assumption.
- The leadership transition under which Noah Springer becomes chief executive officer effective January 1, 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $ 114,824 (In thousands) as of September 30, 2026.
- In July 2026, the Company issued $550.0 million aggregate principal amount of 4.90% unsecured senior notes due 2032.
- The commercial paper program had total capacity of $1.0 billion, with $850.0 million in outstanding issuances as of September 30, 2026.
- Fixed-rate debt to total debt was 79.6%; net of the impact of variable rate receivables, effective fixed-rate debt to total debt was 89.3%.
- The weighted average interest rates of fixed- and variable-rate debt were 4.3% and 4.8%, respectively.
- The combined weighted average interest rate was 4.4% with a weighted average maturity of approximately 4.0 years.
- The Company originated $19.5 million in bridge loans during the quarter; outstanding bridge-loan balances were approximately $1.4 billion at quarter end.
- The Company had an additional $59.2 million in bridge loans that closed subsequent to quarter end or were under agreement to close in 2026.
Analysis
Extra Space reported a solid third quarter, led by improved same-store operating performance. Total revenues were $ 889,792 (In thousands), versus $ 858,460 (In thousands) in the prior-year quarter. Net income attributable to common stockholders was $ 247,759 (In thousands), and diluted EPS was $ 1.17 versus $ 0.78. The release attributes the 50.0% EPS increase in part to the prior-year period's loss from real estate assets sold in 2025. Core FFO was $ 2.17 per diluted share, up 4.3% from $ 2.08 per diluted share.
The same-store portfolio showed stronger revenue and cost dynamics. Same-store revenue grew 2.7% to $ 701,681 (In thousands), while same-store operating expenses declined 1.8% to $ 197,007 (In thousands), producing 4.6% growth in same-store NOI to $ 504,674 (In thousands). Net rental income increased 2.9%, and ending same-store occupancy was 94.0%, compared with 93.7% a year earlier. Lower payroll and benefits, marketing, repairs and maintenance, and insurance expenses more than offset higher office expense and property taxes.
Capital allocation remained active. The Company repurchased 2,390,497 shares for $327.1 million during the quarter and subsequently used the remaining capacity of its $500.0 million program through repurchases of 164,724 additional shares for $21.8 million. The board subsequently authorized a new program up to $500.0 million. The Company also purchased four operating stores for $48.6 million, invested $15.7 million in a joint-venture development, and originated $19.5 million in bridge loans. It paid a quarterly dividend of $1.62 per share.
The balance sheet includes $ 114,824 (In thousands) of cash and cash equivalents and $ 1,424,000 (In thousands) of revolving lines of credit and commercial paper. The Company issued $550.0 million of 4.90% unsecured senior notes due 2032 during July. Outstanding commercial paper was $850.0 million, and outstanding bridge-loan balances were approximately $1.4 billion. The combined weighted average interest rate was 4.4% with a weighted average maturity of approximately 4.0 years.
The outlook was increased for Core FFO to $8.40 to $8.50 from the prior range of $8.25 to $8.40. The Company also raised its same-store revenue growth range to 2.00% to 2.50% from 1.00% to 2.00%, lowered same-store expense growth to 0.00% to 0.50% from 1.00% to 2.00%, and raised same-store NOI growth to 2.50% to 3.50% from 0.50% to 2.50%. Management fees and other income, interest income, and bridge loans outstanding assumptions were reduced from the prior ranges, while acquisitions were raised to $400,000,000 from $300,000,000.
Management, verbatim
Our platform, portfolio and people continue to outperform, with Core FFO per share growth of 4.3% and accelerating same-store performance.
Joe Margolis, CEO of the Company
We remain focused on disciplined capital allocation and compounding long-term value per share, including through the opportunistic repurchase of our shares this quarter.
Joe Margolis, CEO of the Company
Extra Space is entering its leadership transition from a position of strength, and I am confident in the opportunities ahead.
Joe Margolis, CEO of the Company
Not in the filing
stated, not guessed- Operating cash flow
- Free cash flow
- Gross margin
- GAAP tax rate
- Prior-quarter comparisons for reported quarterly metrics
- Formal reportable operating segments
- Actual full-year 2026 results for comparison with the prior annual outlook
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.