10-QPeriod: Q1 FY2026

Extra Space Storage Inc. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 1, 2026For Securities:EXR

Summary

Extra Space Storage Inc. (EXR) reported its first-quarter 2026 results, showcasing continued revenue growth driven by increased property rental income and a growing portfolio. Total revenues rose by 4.4% to $856.0 million, with property rental revenue up 4.1% to $733.2 million, attributed to recent acquisitions and improved same-store performance. While net income saw a decrease year-over-year, primarily due to the absence of a significant gain on real estate sales recognized in the prior year, the operational performance remains robust. The company managed its expenses effectively, with total operating expenses increasing by 4.6% to $488.5 million, largely in line with revenue growth and driven by property operations. Cash flow from operations remained strong, providing ample liquidity for ongoing operations and strategic initiatives. The company's balance sheet reflects a solid real estate asset base, though total assets slightly decreased sequentially. Debt levels remain substantial, consistent with the nature of the real estate industry, with a significant portion of fixed-rate debt. The company successfully managed its debt and interest expenses, with overall weighted average interest rates remaining stable. EXR continues to execute its growth strategy through acquisitions and effective property management, positioning it for sustained performance in the self-storage market.

Financial Statements
Beta
Revenue$856.03M
Cost of Revenue$238.30M
Gross Profit$617.72M
Operating Expenses$488.47M
Operating Income$367.55M
Net Income$240.98M
EPS (Basic)$1.14
EPS (Diluted)$1.14
Shares Outstanding (Basic)210.90M
Shares Outstanding (Diluted)220.32M

Key Highlights

  • 1Total revenues increased by 4.4% to $856.0 million for the first quarter of 2026 compared to the prior year's period.
  • 2Property rental revenues grew by 4.1% to $733.2 million, driven by acquisitions and same-store performance improvements.
  • 3Net income attributable to common stockholders decreased to $241.0 million from $270.9 million in the prior year, largely due to the absence of a significant gain on real estate sales in Q1 2025.
  • 4Operating expenses increased by 4.6% to $488.5 million, primarily due to higher property operations costs related to acquisitions and same-store increases.
  • 5Cash flow from operating activities increased by 1.7% to $489.9 million, demonstrating strong operational cash generation.
  • 6The company maintained a strong liquidity position with $139.0 million in cash and cash equivalents as of March 31, 2026.
  • 7Same-store net operating income (NOI) increased by 1.2% to $476.7 million, indicating steady performance in its established portfolio.

Frequently Asked Questions

The primary driver of revenue growth was the increase in property rental revenues, which rose by 4.1% to $733.2 million. This growth was fueled by recent acquisitions completed in 2025 and early 2026, as well as improved operating results at the company's same-store properties.

Net income attributable to common stockholders decreased from $270.9 million in the first quarter of 2025 to $241.0 million in the first quarter of 2026. This decrease was primarily due to the absence of a significant gain of $35.8 million recognized on the sale of real estate assets in the prior year's first quarter, which was not repeated in the current period.

The company has a substantial debt load, consistent with real estate operations. As of March 31, 2026, the total face value of debt was approximately $13.4 billion. Approximately 82.5% of its debt is fixed-rate, and the company utilizes interest rate swaps to manage interest rate risk. The weighted average interest rate on its total debt was 4.3%.

Extra Space Storage reported $139.0 million in cash and cash equivalents as of March 31, 2026, and strong operating cash flows. Management believes that current cash on hand, operating cash flow, and availability under its credit facilities are sufficient to meet its operating expenses, debt service, and capital expenditure needs for the next twelve months. The company also has an 'at the market' equity program and may pursue additional financing for strategic growth.