Salt Lake City-based Extra Space Storage Inc., recently revealed its operating results for the three months ending June 30. According to Joseph Margolis, CEO, the REIT had another solid quarter despite headwinds from new supply and tough year-over-year comparables. “We increased rates and gained occupancy, leading to same-store revenue growth of 5.2% and NOI growth of 7.7%.”
Margolis continues that “acquisitions and third-party management platforms enhanced the growth of our FFO as adjusted, which was up 16.0% year-over-year.”
According to analyst Wes Golladay of RBC Capital Markets LLC, the REIT had a strong first half and notes that he expects “SS revenue growth to be moderate, as will the benefit from stabilization of the SmartShop portfolio.”
Golladay notes that the REIT is “well ahead” with expense decline driving its results.
Highlights of the REIT’s Q2 numbers were as follows:
Achieved net income attributable to common stockholders of $0.69 per diluted share, representing a 4.5% increase compared to the same period in 2016.
Achieved funds from operations attributable to common stockholders and unit holders (“FFO”) of $1.08 per diluted share. Excluding non-cash interest, FFO as adjusted was $1.09 per diluted share, representing a 16.0% increase compared to the same period in 2016.
Increased same-store revenue by 5.2% and same-store net operating income (“NOI”) by 7.7% compared to the same period in 2016.
Reported same-store occupancy of 94.4% as of June 30, 2017, compared to 93.7% as of June 30, 2016.
Acquired one operating store and one store at completion of construction (“Certificate of Occupancy store”) for a total purchase price of approximately $18.3 million.
Acquired one Certificate of Occupancy store with a joint venture partner for a total purchase price of approximately $15.9 million.
Paid a quarterly dividend of $0.78 per share.