Extra Space Storage Lifts 2026 Core FFO Outlook To $8.40-$8.50 As Store Costs Fall
The self-storage owner also repurchased $327.1 million of stock in the third quarter and authorized a new $500.0 million buyback.
Extra Space Storage, which owns, operates and manages self-storage properties, raised its 2026 forecast for core cash earnings to $8.40 to $8.50 per share, up from $8.25 to $8.40 in July, after third-quarter same-store results improved. The company reported on Tuesday in an 8-K that same-store expenses fell 1.8% while revenue rose 2.7%.
Costs fell, occupancy ticked up
Third-quarter Core FFO, the company's adjusted measure of cash earnings for real estate firms, was $2.17 per diluted share, up 4.3% from a year earlier. Net income was $1.17 per diluted share, up 50.0%, against a prior-year quarter that included a loss on real estate assets sold in 2025.
Same-store net operating income rose 4.6%. Same-store occupancy reached 94.0% on September 30, against 93.7% a year earlier. Repairs and maintenance dropped 20.0% and insurance fell 16.5%, while property taxes rose 4.9%.
For the first nine months, Core FFO was $6.37 per share, up 3.9%, with same-store net operating income up 3.2%.
The new full-year guide
The company now expects same-store net operating income growth of 2.50% to 3.50%, up from 0.50% to 2.50% in July. Same-store revenue growth is projected at 2.00% to 2.50%, and expense growth at 0.00% to 0.50%, down from 1.00% to 2.00%. It also lifted its acquisitions plan to $400 million from $300 million.
CEO Joe Margolis said the company's "platform, portfolio and people continue to outperform."
Buybacks and a CEO handoff
In the third quarter the company repurchased 2,390,497 shares for $327.1 million, an average of $136.85. After quarter-end it bought another 164,724 shares for $21.8 million, using up its $500.0 million program. On October 15, the board authorized a new program of up to $500.0 million.
Bridge loans outstanding were about $1.4 billion at quarter-end, after $19.5 million of new originations. As of September 30, the company managed 1,963 stores for third-party owners.
Margolis retires at year-end and will advise the board. Noah Springer, now President, becomes CEO on January 1, 2027, in a transition the board approved unanimously.
Management hosts a conference call at 1:00 p.m. Eastern on Wednesday, October 28, to discuss the results and the raised outlook.
