Summary
Extra Space Storage Inc. (EXR) reported its third-quarter 2017 financial results, showcasing continued growth in property rental revenue, driven by both strategic acquisitions and increased occupancy and rental rates at its stabilized stores. The company experienced a notable increase in total revenues by 10.5% for the quarter, reaching $284.2 million, and a 13.4% increase for the nine-month period, totaling $823.2 million. While property rental revenue saw significant year-over-year growth, the company also reported a rise in property operations expenses, partly due to hurricane-related damages and increased operational scale. Despite these increased costs, EXR maintained a strong operational performance, with same-store net operating income increasing by 5.5% for the quarter. The company's balance sheet reflects a moderate increase in debt to support its growth, with total debt rising to $4.36 billion, while maintaining a healthy debt-to-enterprise value ratio of 28.9%.
Financial Highlights
37 data points| Revenue | $284.16M |
| Cost of Revenue | $70.43M |
| Gross Profit | $213.73M |
| Operating Expenses | $144.28M |
| Operating Income | $139.88M |
| Interest Expense | $6.05M |
| Net Income | $93.74M |
| EPS (Basic) | $0.74 |
| EPS (Diluted) | $0.74 |
| Shares Outstanding (Basic) | 125.72M |
| Shares Outstanding (Diluted) | 133.04M |
Key Highlights
- 1Total revenues increased by 10.5% year-over-year to $284.2 million for the three months ended September 30, 2017, and by 12.6% to $823.2 million for the nine months ended September 30, 2017.
- 2Property rental revenue grew by 10.8% to $248.6 million for the quarter and by 13.4% to $720.9 million for the nine months, attributed to acquisitions and improved occupancy/rental rates.
- 3Same-store net operating income (NOI) increased by 5.5% for the three months and 7.4% for the nine months ended September 30, 2017, indicating strong underlying operational performance.
- 4The company acquired nine stores in the first nine months of 2017, contributing to the growth in rental revenue and operational scale.
- 5Total expenses increased by 7.3% for the quarter, largely due to higher property operations costs, tenant reinsurance expenses (impacted by hurricanes), and depreciation, reflecting the expansion of the property portfolio.
- 6Cash flows from operating activities increased significantly by $63.5 million year-over-year to $449.6 million for the nine months ended September 30, 2017.
- 7Debt levels increased to $4.36 billion by September 30, 2017, with the company maintaining a debt-to-enterprise value ratio of 28.9% and a strong compliance with financial covenants.