10-QPeriod: Q3 FY2021

Extra Space Storage Inc. Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 3, 2021For Securities:EXR

Summary

Extra Space Storage Inc. (EXR) reported strong financial results for the nine months ended September 30, 2021, with total revenues increasing by 14.7% to $1.15 billion compared to the prior year. Net income attributable to common stockholders surged by 71.7% to $559.2 million. This robust performance was driven by higher occupancy and rental rates across its self-storage portfolio, alongside growth in tenant reinsurance and management fees. The company demonstrated effective operational management, with same-store rental revenues increasing by 12.2% and same-store net operating income (NOI) growing by 18.1%. Despite an increase in property operations and depreciation expenses primarily due to recent acquisitions, the company maintained strong profitability. EXR also strengthened its balance sheet by issuing new senior notes and actively managing its debt, with a debt-to-enterprise value ratio of 19.1% as of September 30, 2021.

Financial Highlights

39 data points
Beta

Revenue

$412.49M

77.5% Gross Margin

Net Income

$188.28M

45.6% Net Margin

EPS (Diluted)

$1.40

Total Assets

$9.71B

Cash & Equivalents

$65.56M

Free Cash Flow

$265.58M

Financial Statements
Beta
Revenue$412.49M
Cost of Revenue$92.79M
Gross Profit$319.70M
Operating Expenses$186.21M
Operating Income$226.28M
Interest Expense$39.67M
Net Income$188.28M
EPS (Basic)$1.41
EPS (Diluted)$1.40
Shares Outstanding (Basic)133.81M
Shares Outstanding (Diluted)140.43M

Key Highlights

  • 1Total revenues for the nine months ended September 30, 2021, increased by 14.7% to $1.15 billion.
  • 2Net income attributable to common stockholders grew significantly by 71.7% to $559.2 million for the nine months.
  • 3Same-store rental revenues increased by 12.2% and same-store net operating income (NOI) rose by 18.1% for the nine months.
  • 4The company acquired 36 wholly-owned stores during the first nine months of 2021.
  • 5Debt-to-enterprise value ratio stood at a healthy 19.1% as of September 30, 2021.
  • 6The company issued new senior notes totaling $1.04 billion during the period, bolstering liquidity and extending debt maturities.
  • 7Occupancy rates remained strong, with same-store square foot occupancy at 96.7% as of September 30, 2021.

Frequently Asked Questions

For the nine months ended September 30, 2021, Extra Space Storage Inc. reported a significant increase in total revenues, up 14.7% to $1.15 billion, compared to $1.00 billion in the prior year. Net income attributable to common stockholders also saw substantial growth, rising 71.7% to $559.2 million from $325.7 million in the same period of 2020.

The revenue growth was primarily driven by an increase in property rental revenues, attributed to higher occupancy and increased rental rates at stabilized stores. Additionally, growth in tenant reinsurance revenues and management fees from an increasing number of managed stores contributed to the overall revenue increase.

Extra Space Storage Inc. has actively managed its debt and liquidity. During the nine months ended September 30, 2021, the company issued $1.04 billion in public bonds and also raised $3.32 billion from notes payable and revolving lines of credit, while making significant principal payments on existing debt. As of September 30, 2021, the company maintained a debt-to-enterprise value ratio of 19.1% and reported having $65.6 million in cash and cash equivalents, indicating a solid liquidity position.

The same-store portfolio showed strong performance. For the nine months ended September 30, 2021, same-store rental revenues increased by 12.2%, and same-store net operating income (NOI) grew by 18.1% compared to the same period in 2020. Same-store occupancy remained high at 96.7%.