Summary
Extra Space Storage Inc. (EXR) reported solid financial performance for the second quarter and the first half of 2018. Total revenues increased by 7.5% year-over-year for the quarter and 8.0% for the six-month period, driven primarily by a 7.1% increase in property rental revenue, reflecting strong rental rate growth and contributions from recent acquisitions. Net income attributable to common stockholders rose to $95.2 million for the quarter and $183.4 million for the first half, representing year-over-year increases of approximately 9.3% and 8.4%, respectively. The company's operational efficiency is highlighted by a 3.8% increase in same-store net operating income for the quarter. EXR also continued its strategic growth through acquisitions, adding 22 stores in the first six months of 2018, and maintained a healthy balance sheet with adequate liquidity and compliance with debt covenants. The company's Funds from Operations (FFO) attributable to common stockholders and unit holders also saw an increase, growing by 5.3% for the quarter and 5.6% for the first half, underscoring its ability to generate cash from its real estate operations. Management's proactive approach to revenue management and strategic acquisitions positions EXR for continued growth. The company's balance sheet remains robust, with total assets growing to $7.72 billion as of June 30, 2018. Debt levels increased, but the company maintained compliance with its debt covenants, indicating good financial management.
Financial Highlights
36 data points| Revenue | $296.81M |
| Cost of Revenue | $73.08M |
| Gross Profit | $223.73M |
| Operating Expenses | $152.10M |
| Operating Income | $144.72M |
| Interest Expense | $5.74M |
| Net Income | $95.15M |
| EPS (Basic) | $0.75 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 125.87M |
| Shares Outstanding (Diluted) | 132.77M |
Key Highlights
- 1Total revenues increased by 7.5% to $296.8 million for the three months ended June 30, 2018, and by 8.0% to $582.3 million for the six months ended June 30, 2018, compared to the prior year periods.
- 2Property rental revenue, the primary driver of growth, increased by 7.2% for the quarter and 7.1% for the six-month period, benefiting from higher rental rates and contributions from recent acquisitions.
- 3Net income attributable to common stockholders grew to $95.2 million for the quarter and $183.4 million for the six-month period, showing year-over-year increases.
- 4Same-store net operating income (NOI) increased by 3.8% for the quarter and 4.2% for the six-month period, indicating strong performance from stabilized properties.
- 5The company completed acquisitions of 22 stores in the first six months of 2018, contributing to revenue growth, and has a pipeline of further acquisitions under agreement.
- 6Funds from Operations (FFO) attributable to common stockholders and unit holders increased by 5.3% to $153.8 million for the quarter and by 5.6% to $300.1 million for the six-month period.
- 7The company's balance sheet shows total assets of $7.72 billion as of June 30, 2018, with total liabilities of $5.01 billion, and maintained compliance with all financial covenants.