10-QPeriod: Q1 FY2022

Extra Space Storage Inc. Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 6, 2022For Securities:EXR

Summary

Extra Space Storage Inc. (EXR) reported solid financial results for the first quarter ended March 31, 2022, demonstrating strong revenue growth and operational efficiency. Total revenues increased by 23.6% year-over-year to $443.6 million, driven by a significant 25.1% rise in property rental revenues, attributed to higher average rental rates and recent acquisitions. The company's operational performance was further bolstered by a 27.6% increase in same-store net operating income, indicating effective management of both stabilized and newly acquired properties. Financially, EXR maintained a healthy balance sheet with total assets growing to $10.6 billion. While total liabilities also increased, the company's debt-to-enterprise value ratio remained at a manageable 17.1%. The company's liquidity position appears stable, with sufficient cash on hand and access to credit facilities to meet its obligations and fund growth initiatives. The report highlights continued strategic expansion through acquisitions, alongside a consistent focus on maximizing cash flows from its extensive portfolio of self-storage facilities.

Financial Highlights

37 data points
Beta

Revenue

$443.56M

76.7% Gross Margin

Net Income

$203.58M

45.9% Net Margin

EPS (Diluted)

$1.51

Total Assets

$10.59B

Cash & Equivalents

$65.98M

Free Cash Flow

$287.46M

Financial Statements
Beta
Revenue$443.56M
Cost of Revenue$103.54M
Gross Profit$340.02M
Operating Expenses$208.25M
Operating Income$235.31M
Interest Expense$42.54M
Net Income$203.58M
EPS (Basic)$1.52
EPS (Diluted)$1.51
Shares Outstanding (Basic)134.18M
Shares Outstanding (Diluted)141.58M

Key Highlights

  • 1Total revenues increased by 23.6% to $443.6 million for the three months ended March 31, 2022, compared to $358.9 million in the prior year period.
  • 2Property rental revenue saw a substantial 25.1% increase, reaching $379.8 million, primarily due to higher average rental rates at stabilized properties and contributions from recent acquisitions.
  • 3Same-store net operating income (NOI) grew by 27.6% to $257.0 million, indicating strong performance from the core, stabilized portfolio.
  • 4The company completed the acquisition of 14 wholly-owned stores in Q1 2022, continuing its growth strategy.
  • 5Total assets grew to $10.6 billion, reflecting continued investment in real estate assets.
  • 6Net income attributable to common stockholders was $203.6 million, a slight increase from $203.0 million in the prior year, resulting in diluted EPS of $1.51.
  • 7The company ended the quarter with $66.0 million in cash and cash equivalents and a debt-to-total enterprise value ratio of 17.1%.

Frequently Asked Questions

The primary driver of revenue growth was a 25.1% increase in property rental revenue, which rose to $379.8 million. This was largely due to higher average rental rates at stabilized properties and the contribution from recent acquisitions.

Extra Space Storage Inc. continued its expansion by acquiring 14 wholly-owned stores in the first quarter of 2022. The total number of owned or managed stores reached 2,130 by the end of the quarter.

The company maintained a manageable financial position. The debt-to-total enterprise value ratio was 17.1% as of March 31, 2022. The weighted average interest rate on its total debt was 2.8%.

The company believes its cash flows generated from operations, existing cash balances, and credit facilities are sufficient to meet its foreseeable cash needs, including operating expenses, debt service, capital expenditures, and dividends.