Extra Space Storage Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to common stockholders was $1.17 per diluted share for the three months ended September 30, 2026, a 50.0% increase compared to the prior year period; for the nine months ended September 30, 2026, net income was $3.56 per diluted share, a 10.2% increase.
• Funds from operations (FFO) attributable to common stockholders and unit holders was $2.12 per diluted share for the three months ended September 30, 2026 (up from $2.01 in 2025) and $6.16 per diluted share for the nine months ended September 30, 2026 (up from $5.91 in 2025).
• Core FFO was $2.17 per diluted share for the three months ended September 30, 2026, a 4.3% increase year-over-year; Core FFO was $6.37 per diluted share for the nine months ended September 30, 2026, a 3.9% increase year-over-year.
• Same-store revenue increased 2.7% for the three months ended September 30, 2026, and 2.3% for the nine months ended September 30, 2026.
• Same-store expenses decreased 1.8% for the three months ended September 30, 2026, and increased 0.1% for the nine months ended September 30, 2026.
• Same-store net operating income (NOI) increased 4.6% for the three months ended September 30, 2026, and 3.2% for the nine months ended September 30, 2026.
• Ending same-store occupancy was 94.0% as of September 30, 2026, compared to 93.7% as of September 30, 2025.
• Total revenues were $889.8 million for the three months ended September 30, 2026, and $2.62 billion for the nine months ended September 30, 2026.
• Total expenses were $492.1 million for the three months ended September 30, 2026, and $1.46 billion for the nine months ended September 30, 2026.
• The Company recorded a net loss of $5.8 million on real estate assets held for sale and sold during the three months ended September 30, 2026.
• As of September 30, 2026, total assets were $28.96 billion and total liabilities were $15.20 billion.
• The weighted average interest rate on fixed and variable-rate debt was 4.4% with a weighted average maturity of approximately 4.0 years.
• The percentage of fixed-rate debt to total debt was 79.6% (89.3% net of variable rate receivables).

Guidance and Future Outlook:

• The Company raised its 2026 Core FFO per share guidance range to $8.40–$8.50, compared to the prior range of $8.25–$8.40.
• 2026 same-store revenue growth is now projected at 2.00%–2.50%, up from 1.00%–2.00%.
• 2026 same-store expense growth is now projected at 0.00%–0.50%, down from 1.00%–2.00%.
• 2026 same-store NOI growth is now projected at 2.50%–3.50%, up from 0.50%–2.50%.
• 2026 acquisitions guidance remains at $400.0 million, up from the prior $300.0 million.
• Bridge loans outstanding are projected at $1.425 billion for 2026, down from $1.475 billion.
• Management fees and other income are projected at $138.0 million–$139.0 million for 2026.
• Interest income is projected at $152.5 million–$153.5 million for 2026.
• General and administrative expenses are projected at $188.5 million–$189.5 million for 2026.
• Equity in earnings of real estate ventures is projected at $65.0 million–$66.0 million for 2026.
• Interest expense is projected at $602.0 million–$604.0 million for 2026.
• Income tax expense is projected at $48.0 million–$49.0 million for 2026.
• Net tenant reinsurance income is projected at $298.0 million–$300.0 million for 2026.

Business Segments and Product Lines:

• The Company owns and/or operates 4,411 self-storage stores in 43 states and Washington, D.C., comprising approximately 3.0 million units and 342.2 million square feet.
• The Company managed 2,371 stores as of September 30, 2026, including 1,963 third-party stores and 408 stores in unconsolidated joint ventures.
• During the nine months ended September 30, 2026, the Company added 229 stores to its third-party management platform (107 stores net).
• During the three months ended September 30, 2026, the Company purchased four operating stores for $48.6 million.
• During the nine months ended September 30, 2026, the Company purchased 22 operating stores and acquired a joint venture partner's interest in one consolidated joint venture for a total cost of $151.9 million.
• During the three months ended September 30, 2026, the Company completed the development of one store for approximately $16.6 million (Company investment of $15.7 million).
• During the nine months ended September 30, 2026, the Company completed the development of two stores for approximately $31.7 million (Company investment of $30.1 million).
• During the three months ended September 30, 2026, the Company originated $19.5 million in mortgage and mezzanine bridge loans.
• During the nine months ended September 30, 2026, the Company originated $165.6 million in mortgage and mezzanine bridge loans and sold $30.8 million in mortgage bridge loans.
• Outstanding bridge loan balances were approximately $1.4 billion at the end of the quarter.

Market and Competitive Landscape:

• The Company is the largest self-storage management company in the United States.
• The Company is a member of the S&P 500 index.
• The same-store pool consists of 1,869 stabilized stores.

Risks and Challenges:

• Forward-looking statements are subject to risks including adverse changes in general economic conditions, the real estate industry, and markets of operation.
• Potential liability for uninsured losses, environmental contamination, and the ability to recover losses under insurance policies.
• Regulatory environment impacts, including laws governing REITs and tenant reinsurance.
• Competition from new and existing stores or other storage alternatives could cause rents and occupancy rates to decline.
• Risks associated with acquisitions, dispositions, and development, including potential failure to close on expected terms or increased development costs due to regulatory requirements related to climate change.
• Reductions in asset valuations and related impairment charges.
• Reliance on information technologies vulnerable to cyberattacks, viruses, and unauthorized access.
• Impacts from infectious disease outbreaks, natural disasters, war, or terrorism.
• Lack of sole decision-making authority regarding joint venture investments.
• Disruptions in credit and financial markets affecting capital raising or credit availability.
• Changes in global financial markets, interest rates, and U.S. tariffs.
• Changes to U.S. tax laws and the failure to maintain REIT status.

Management Commentary and Tone:

• CEO Joe Margolis stated the platform, portfolio, and people continue to outperform with Core FFO per share growth of 4.3% and accelerating same-store performance.
• Management emphasized a focus on disciplined capital allocation and compounding long-term value per share through opportunistic share repurchases.
• Margolis noted that differentiating capabilities in pricing, customer acquisition, and growth continue to drive strong results.
• The Company is entering a leadership transition from a position of strength, with confidence in future opportunities.

Other Key Points:

• Noah Springer, President, was promoted to become the next Chief Executive Officer effective January 1, 2027; current CEO Joe Margolis will retire at the end of 2026 and serve as an adviser to the board.
• The Company repurchased 2,390,497 shares of common stock for $327.1 million during the three months ended September 30, 2026, at an average price of $136.85 per share.
• Subsequent to quarter end, the Company repurchased 164,724 shares for $21.8 million, fully utilizing the capacity of the previous $500.0 million share repurchase program.
• On October 15, 2026, the board authorized an updated share repurchase program allowing for the repurchase of shares with an aggregate value up to $500.0 million.
• The Company paid a quarterly dividend of $1.62 per share on September 30, 2026.
• In July 2026, the Company completed a public bond offering issuing $550.0 million of 4.90% unsecured senior notes due 2032.
• As of September 30, 2026, the Company had $800.0 million available for issuance under its ATM program.
• The Company's commercial paper program has a total capacity of $1.0 billion, with $850.0 million in outstanding issuances.
• A conference call to discuss results is scheduled for October 28, 2026, at 1:00 p.m. Eastern Time.