Why Is Extra Space Storage (EXR) Down 1.1% Since Last Earnings Report?

It has been about a month since the last earnings report for Extra Space Storage (EXR). Shares have lost about 1.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Extra Space Storage due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Extra Space Storage Q3 Core FFO Beats Estimates, Revenues Lag

Extra Space Storage reported third-quarter 2025 core FFO per share of $2.08, surpassing the Zacks Consensus Estimate of $2.06. The figure increased 0.48% from the prior-year quarter.

Results reflected a year-over-year rise in revenues due to growth in occupancy. However, high same-store expenses and interest expenses during the quarter were a spoilsport.

Quarterly revenues of $858.5 million missed the Zacks Consensus Estimate of $864.8 million. However, the top line increased 4.1% year over year.

Quarter in Detail

Same-store revenues decreased 0.2% year over year to $674 million. Same-store operating expenses rose 5.8% to $196.7 million, reflecting an increase in overall expenses year over year. As a result, same-store NOI decreased 2.5% year over year to $477.2 million.

The same-store square-foot occupancy expanded 10 basis points year over year to 93.7% as of Sept. 30, 2025.

Interest expenses flared up 4.8% to $149.7 million. Our estimate stood at $146.4 million.

Portfolio Activity

During the July-September quarter, Extra Space Storage acquired one operating store for around $12.8 million. With JV partners, Extra Space Storage acquired one operating store for approximately $14.2 million, of which the company invested $1.4 million.

Extra Space Storage added 95 stores (62 stores net) to its third-party management platform. As of Sept. 30, 2025, it managed 1,811 stores for third parties and 414 stores in unconsolidated JVs, with a total store count of 2,222 under management.

Balance Sheet Position

Extra Space Storage exited the third quarter with $111.9 million of cash and cash equivalents, down from $125 million recorded as of June 30, 2025.

As of Sept. 30, 2025, Extra Space Storage's percentage of fixed-rate debt to total debt was 83.8%. The combined weighted average interest rate was 4.4%, with a weighted average maturity of around 4.6 years.

In the third quarter, the company did not issue any shares under its at-the-market program and has $800 million available for issuance as of Sept. 30, 2025.

During the third quarter, Extra Space Storage did not repurchase any shares under its stock repurchase program and had the authorization to buy up to an additional $491.4 million under the plan as of Sept. 30, 2025.

2025 Guidance Revised

Extra Space Storage has narrowed its range for 2025 core FFO per share, increasing the midpoint by a cent. The company now expects the same to be in the range of $8.12-$8.20 from the earlier guided range of $8.05-$8.25.

The full-year guidance is based on the assumption of negative 0.25% to 0.25% growth in same-store revenues and a 4.50%-5.00% increase in same-store expenses. Same-store NOI is projected within a negative 2.25% to negative 1.25% growth.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

Currently, Extra Space Storage has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Extra Space Storage has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Extra Space Storage belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Prologis (PLD), has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Prologis reported revenues of $2.05 billion in the last reported quarter, representing a year-over-year change of +8.3%. EPS of $0.82 for the same period compares with $1.43 a year ago.

Prologis is expected to post earnings of $1.44 per share for the current quarter, representing a year-over-year change of -4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Prologis. Also, the stock has a VGM Score of F.

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This article originally published on Zacks Investment Research (zacks.com).

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