Summary
Extra Space Storage Inc. (EXR) reported strong growth in its third-quarter 2016 results, driven by significant increases in property rental revenue and strategic acquisitions. Total revenues for the nine months ended September 30, 2016, grew by 31.3% year-over-year to $730.9 million, with property rental revenue alone increasing by 32.3% to $635.7 million. This revenue expansion was largely attributed to the acquisition of 72 new stores during the first nine months of 2016 and a 31.6% increase in property rental revenue for the third quarter. The company also saw healthy growth in its tenant reinsurance and management fee segments, indicating a diversified revenue stream. The company's balance sheet shows a substantial increase in real estate assets, growing to $6.46 billion as of September 30, 2016, up from $5.69 billion at the end of 2015, reflecting its aggressive acquisition strategy. This growth was financed by an increase in total liabilities, primarily driven by higher notes payable. Despite increased leverage, the company maintained strong operational performance, with income from operations rising 28.4% for the nine-month period. Funds from Operations (FFO) also demonstrated robust growth, increasing by 28.4% for the same period, highlighting the company's ability to generate value for shareholders.
Financial Highlights
36 data points| Cost of Revenue | $62.34M |
| Operating Expenses | $134.46M |
| Operating Income | $122.72M |
| Interest Expense | $33.49M |
| Net Income | $118.09M |
| EPS (Basic) | $0.94 |
| EPS (Diluted) | $0.93 |
| Shares Outstanding (Basic) | 125.75M |
| Shares Outstanding (Diluted) | 133.76M |
Key Highlights
- 1Total revenues for the nine months ended September 30, 2016, increased by 31.3% to $730.9 million, compared to $556.5 million in the prior year.
- 2Property rental revenue, the largest revenue driver, grew by 32.3% year-over-year for the nine-month period, reaching $635.7 million.
- 3The company acquired 72 new stores in the first nine months of 2016, contributing significantly to the growth in real estate assets, which increased from $5.69 billion to $6.46 billion.
- 4Income from operations grew by 28.4% to $326.7 million for the nine months ended September 30, 2016.
- 5Funds from Operations (FFO) attributable to common stockholders and unit holders increased by 28.4% to $360.3 million for the nine-month period.
- 6Same-store net operating income (NOI) showed a healthy increase of 7.8% for the third quarter and 9.7% for the first nine months of 2016, indicating strong performance in existing, stabilized properties.