EXR's Q2 Core FFO Beats Estimates on Strong Same-Store NOI

EXR’s Revenues & Expense Trends

Property rental revenues increased 3.5% year over year to $746.2 million. Tenant reinsurance revenues rose 5.1% to $93.1 million, while management fees and other income advanced 8.9% to $34.9 million.

Total expenses increased 3.3% to $482 million. Property operations expenses rose 1.8% to $231.7 million, tenant reinsurance expenses climbed 2.2% to $17.3 million and general and administrative expenses increased 5.3% to $47.3 million. Depreciation and amortization expenses grew 4.7% to $185.6 million.

EXR's Same-Store Results

Same-store revenues increased 2.4% year over year to $690.2 million. Net rental income rose 2.5% to $664.9 million, while other income declined 1.5% to $25.3 million.

Same-store operating expenses decreased 0.5% to $194.1 million, supporting NOI of $496.1 million. Payroll and benefits, marketing, property operating expenses, and repairs and maintenance declined during the second quarter. Ending same-store occupancy was 94.2%, down from 94.4% a year earlier, while average same-store occupancy edged down to 94% from 94.1%.

EXR's Portfolio & Lending Activity

During the second quarter, Extra Space Storage purchased 17 operating stores and acquired its joint venture partner's ownership interest in one consolidated joint venture for a total cost of $90.7 million.

EXR originated $140.6 million in mortgage and mezzanine bridge loans during the reported quarter. Outstanding bridge-loan balances were approximately $1.5 billion at quarter-end, with another $86.3 million closed after the quarter or under agreement to close in 2026.

EXR Expands Platform

Extra Space Storage added 67 stores or 48 stores on a net basis to its third-party management platform during the second quarter. As of June 30, 2026, it managed 1,964 stores for third-party owners and 409 stores in unconsolidated joint ventures.

The company owned or operated 4,410 self-storage stores across 42 states and Washington, D.C. Its stores comprised approximately 3 million units and 341 million square feet of rentable space.

EXR's Balance Sheet & Liquidity

Extra Space ended the second-quarter with $695.2 million in cash and cash equivalents, up from $139 million in the prior quarter. Its percentage of fixed-rate debt to total debt was 78.5%. After accounting for variable-rate receivables, the effective fixed-rate debt to total debt was 88.4%.

The combined weighted average interest rate was 4.3%, with a weighted average maturity of approximately four years. In June, EXR priced a public bond offering, issuing $550 million of 4.9% unsecured senior notes due in 2032. The company had $850 million outstanding under its $1 billion commercial paper program.

EXR Raises Its 2026 Outlook

Management raised its 2026 core FFO guidance to $8.25-$8.40 per share from the prior range of $8.05-$8.35. The Zacks Consensus Estimate for the same is pinned at $8.26, which lies within the range.

The updated outlook assumes same-store revenue growth of 1-2% compared with the previous projection of negative 0.5% to positive 1.5%. The company now expects same-store expense growth of 1-2%, down from 2-3.5% and same-store NOI growth of 0.5-2.5%, up from the earlier range of negative 2.25% to positive 1.25%. Its acquisition assumption was increased to $300 million from $200 million.

EXR’s Zacks Rank

Extra Space Storage currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other REITs

SL Green Realty Corp. SLG reported second-quarter 2026 FFO per share of $1.43, which beat the Zacks Consensus Estimate of $1.19 by 20.17%. However, FFO declined 12.3% from $1.63 in the year-ago quarter.

Net rental revenues of $171.85 million surpassed the consensus estimate of $171.48 million by 0.22% and increased 16.5% year over year. SLG’s results reflected stronger Manhattan leasing, higher occupancy and growth in same-store cash net operating income.

Crown Castle Inc. CCI reported second-quarter 2026 adjusted funds from operations (AFFO) per share of $1.13, up 10.8% year over year. The metric surpassed the Zacks Consensus Estimate of $1.00 by 13%.

Results reflected a rise in AFFO per share, driven by a decrease in interest expense and an increase in interest income resulting from the use of proceeds from the sale of CCI’s Fiber and Small Cell businesses.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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