Extra Space Storage Inc. (EXR)

Price—Loading quote

AI: Fair-priced

Price checkAt $147.90, the shares look fairly priced for modest, steady growth.

The August 14 close was $147.90. Management expects 2026 core funds from operations of $8.25-$8.40 a share; this measure adds back property depreciation to better represent recurring property earnings. The price is therefore 17.6-17.9 times guidance. The $6.48 annual dividend yields 4.38% and consumes about 78% of midpoint earnings. Inference: this valuation requires several years of roughly 3% growth without a debt shock. Recent improvement supports that case, but neither the growth nor yield signals a clear bargain.

Big pictureStorage cash generation is improving, but demand and rental pricing remain cyclical.

First-half operating cash reached $1.08 billion, about 5% above 2025, while $99 million of investment spending left $977 million before financing—comfortably above $685 million of dividends. However, full-year operating cash slipped 2% in 2025. Second-quarter revenue from established stores rose 2.4%; property income after site costs rose 3.5% as expenses fell 0.5%. Occupancy remained high at 94.2%, though slightly below 94.4% previously. Management’s full-year property-income growth range of 0.5%-2.5% still signals a gradual, demand-sensitive recovery.

Business strengthScale and recurring fees help, while heavy borrowing limits balance-sheet comfort.

Extra Space owned or operated 4,410 stores and managed 2,373 stores for partners, providing recurring management, insurance, and lending income beyond rent. Borrowings totaled about $13.65 billion against $29.66 billion of assets and $695 million of cash. A reassuring 78.5% of debt was fixed-rate, with a 4.3% average rate and four-year average maturity. The 2023 Life Storage share deal lifted shares from 133.9 million to about 211 million, although assets more than doubled. Shares have since stabilized; dividends remain the main cash return, far exceeding recent buybacks.

What could change the storyFaster rent recovery could lift value, but debt costs and pricing rules could erase it.

The bull case strengthens if occupancy stays near 94%, established-store property income beats the 2.5% guidance ceiling, and core property earnings exceed $8.40 a share. Management fees and the $1.5 billion bridge-loan portfolio could add growth without issuing many shares. The bear case strengthens if occupancy approaches 93%, earnings fall below $8.25, or refinancing costs move materially above the current 4.3% average. Wider adoption of New York City-style limits on rapid rent increases would also weaken an important pricing tool, even though the current settlement is financially small.

$147.90 price considered

AI: News

Recovery gained momentumSecond-quarter property results improved, prompting management to raise its full-year earnings outlook.

On July 28, Extra Space reported second-quarter core property earnings of $2.15 a share, up 4.9%, while established-store property income rose 3.5%. Management raised 2026 core earnings guidance from $8.05-$8.35 to $8.25-$8.40 and improved its property-income outlook. Investing.com reported shares 1.69% higher at $154.79 in after-hours trading. That timing is consistent with a favorable response, although it does not prove the report alone caused the move.

Long-term debt issuedNew six-year notes extend funding but lock in interest costs above the existing average.

Extra Space completed a $550 million senior unsecured note offering on July 6. The notes pay 4.9% interest and mature in February 2032. This supports liquidity and pushes repayment farther into the future, but the rate exceeds the company’s 4.3% average borrowing cost at June 30. No reliable source isolated a stock-price reaction to the financing. Its main valuation effect is reduced near-term refinancing pressure offset by higher interest expense.

New York settlementA small settlement introduced operating rules that could matter if other cities copy them.

On July 9, New York City announced a $1.7 million settlement, including $1 million for customers and more than $700,000 in penalties. Extra Space also accepted tighter notice, advertising, facility-care, and auction requirements at roughly 60 city locations. The direct expense was immaterial beside first-half cash generation, and no reliable market reaction was established. The larger risk is precedent: broader restrictions on early rent increases could weaken the pricing approach used to convert promotional customers to higher rents.

Revenue

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$129.5M	$120.9M	$102.0M	$83.9M	$66.3M	$52.1M	$49.9M	$41.8M	$39.4M	$39.8M	—	—	—	—	—	—	—	—
Operating income	$1.41B	$1.32B	$1.17B	$1.05B	$976.0M	$666.1M	$635.0M	$619.7M	$654.4M	$458.3M	$294.7M	$278.5M	$213.5M	$157.2M	$115.5M	$90.8M	$71.9M	$92.5M
EBITDAderived	$2.13B	$2.11B	$1.68B	$1.34B	$1.22B	—	$854.8M	$828.8M	$847.7M	$640.9M	$428.1M	$393.5M	$308.7M	$231.7M	$173.5M	$141.2M	$124.3M	$142.0M
Net income	$974.0M	$854.7M	$803.2M	$860.7M	$827.6M	$481.8M	$420.0M	$415.3M	$479.0M	$366.1M	$189.5M	$178.4M	$172.1M	$117.3M	$50.4M	$26.3M	$32.0M	$35.8M
Basic EPSper diluted share	$4.59	$4.03	$4.74	$6.41	$6.20	$3.71	$3.27	$3.29	$3.79	$2.92	$1.58	$1.54	$1.54	$1.15	$0.55	$0.30	$0.37	$0.46
Diluted EPSper diluted share	$4.59	$4.03	$4.74	$6.41	$6.19	$3.71	$3.24	$3.27	$3.76	$2.91	$1.56	$1.53	$1.53	$1.14	$0.54	$0.30	$0.37	$0.46

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)16$11.28M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 11, 2026Form 4	McNeal Gwyn GoodsonEVP/Chief Legal Officer	SellCommon Stock	3.3K	$150.00	$495.0K	37.4K
Mar 13, 2026Form 4	Margolis Joseph DChief Executive Officer	SellCommon Stock · indirect	7.5K	$142.08	$1.07M	66.5K
Oct 1, 2025Form 4	Margolis Joseph DChief Executive Officer	SellCommon Stock · indirect	7.5K	$141.41	$1.06M	19.8K
Jul 1, 2025Form 4	Margolis Joseph DChief Executive Officer	SellCommon Stock · indirect	7.5K	$150.35	$1.13M	27.3K
Apr 1, 2025Form 4	Margolis Joseph DChief Executive Officer	SellCommon Stock · indirect	7.5K	$147.45	$1.11M	9.2K

Review ownership filings at SEC.gov ↗

Extra Space Storage Inc. (EXR)

Financial charts

Financial statements

Insider buys & sells