Extra Space Storage Reports 10.3% Revenue Growth, Net Income Slightly Up in Q3 2024

Extra Space Storage Inc. reported significant financial performance for the three and nine months ended September 30, 2024, reflecting robust growth in revenues and strategic developments following its merger with Life Storage.

For the third quarter of 2024, total revenues reached $824.8 million, a 10.3% increase from $748.0 million in the same period of 2023. For the nine months ended September 30, 2024, revenues surged to $2.4 billion, up 38.2% from $1.8 billion in the prior year. This growth was primarily driven by a 9.2% increase in property rental revenues, which amounted to $710.9 million for the third quarter, and a 37.4% increase to $2.1 billion for the nine-month period. Tenant reinsurance revenues also saw substantial growth, rising 21.6% to $84.0 million in Q3 and 50.7% to $249.1 million for the nine months.

Despite the revenue growth, total expenses increased significantly, with Q3 expenses rising 2.9% to $461.3 million and nine-month expenses increasing 48.7% to $1.4 billion. The rise in expenses was largely attributed to the Life Storage merger and related acquisitions, which added $175 million in property operations expenses. Depreciation and amortization expenses also surged, reflecting the impact of the merger.

Net income for the third quarter was $202.9 million, slightly up from $198.9 million in Q3 2023. However, net income for the nine months decreased marginally to $622.4 million from $623.0 million in the previous year. Net income attributable to common stockholders for Q3 2024 was $193.2 million, compared to $188.4 million in Q3 2023.

The merger with Life Storage, completed on July 20, 2023, involved the acquisition of 757 wholly-owned stores and was accounted for as an asset acquisition. The total equity consideration for the merger was approximately $11.6 billion. As of September 30, 2024, Extra Space Storage operated 3,862 stores, an increase from 3,651 stores a year earlier.

The company’s total assets as of September 30, 2024, were $28.1 billion, up from $27.5 billion at the end of 2023. Total liabilities increased to $13.1 billion, primarily due to the merger-related debt. The company maintained a strong liquidity position, with cash and cash equivalents of $88.9 million and compliance with all financial covenants.

Extra Space Storage continues to focus on strategic growth through acquisitions and operational efficiencies, positioning itself as a leader in the self-storage industry.