Extra Space Storage – Q3 Earnings Report
Extra Space released its quarterly earnings on Oct. 29. The company hosted a conference call at 1 p.m. ET on Oct. 30 to discuss the results. The call was hosted by Spencer Kirk, CEO, Scott Stubbs, Executive Vice President and Chief Financial Officer, and Karl Haas, Executive Vice President and Chief Operations Officer.
Third-quarter performance and recent events were discussed and a question-and-answer was given for financial analysts.
Here is a summary of what was discussed:
- Increased same store revenue 6.8% and NOI 11.4%.
- Increased same store occupancy from 88% to 89.8%.
- Acquired 53 stores for $450 million.
- Reduced operating expenses by 2.8% due to fewer repairs and maintenance costs, utility costs, and lower credit card processing fees.
- Revenues increased due to higher occupancy and rental rates.
- Major markets with revenue growth above the portfolio average were Atlanta, Chicago, Dallas, Houston, San Francisco and Tampa. Under performers were Denver, Las Vegas, Memphis and Phoenix.
Acquisition and Third Party Management Activity
- 36 of the 53 acquired stores were Prudential RE Investors 95% interest in their joint venture that was formed in 2005. The JV owned 36 stores in 18 states.
- Have 6 stores under contract for $51.6 million and they are located in FL,MA, and NJ The company manages 190 stores for third party owners including 304 stores owned and operated in joint ventures for a total of 494 properties under management.
- 74.2% of total debt is fixed. Average rate on fixed debt is 4.9% and on variable rate.
- There are still two remaining Q3 REIT calls that we will be discussed, so stay posted.