- Price
- $139.61
- Fair value
- $168.00
- Discount
- 16.9%
- Uncertainty
- Medium
- LSEG rating
- 2.57
- Moat
- None
- Next earnings
- 2026-10-27
- Next earnings is estimate
- No
- Company name
- Extra Space Storage
- Sector
- Self-storage REIT
- About
- Extra Space Storage is a real estate investment trust (REIT) that owns and operates self-storage stores in the United States. At June 30, 2026, it had direct and indirect interests in 2,446 stores, and it managed 1,964 more stores for other owners, so it owned or managed 4,410 stores in 42 states and Washington, D.C. It is the largest self-storage management company in the United States. Customers rent storage units mostly on month-to-month leases. Extra Space also sells tenant insurance for stored goods and makes bridge loans to other self-storage owners, with about $1.5 billion of loans outstanding at June 30, 2026. It merged with Life Storage in 2023.
- Thesis
- The market prices Extra Space for a slow recovery in self-storage demand and for new stores that compete for customers. Fewer home sales mean fewer moves, and moves are a main reason that people rent storage. Same-store revenue grew only 2.0% in the first half of 2026, and the 2026 guidance is for growth of 1.0% to 2.0%. Same-store occupancy was 94.2% at June 30, 2026, slightly lower than a year earlier. The CEO, Joe Margolis, also retires at the end of 2026. For the gap to close, three things must be true. Same-store revenue growth must keep improving, from 2.4% in Q2 2026 toward 3% or more in 2027, as rents for new customers rise. Core FFO must reach the $8.25 to $8.40 per share range of the 2026 guidance. The management and bridge loan businesses must keep growing, and the new CEO, Noah Springer, must keep the same strategy from January 1, 2027. The Q3 2026 report on October 27, 2026 gives the next test. The 2027 guidance in February 2027 is the main test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a weak housing market that keeps moves, and so storage demand, low for longer.
- Risks
- Demand for storage depends on moves, home sales and the economy. The company names fewer housing market transactions, higher unemployment and higher interest rates as risks to occupancy and rents.
Other operators keep building new self-storage stores. The company says that this new supply has increased competition and can stop rent increases in some markets.
Extra Space had about $13.6 billion of debt at June 30, 2026, with a weighted average maturity of about 4.0 years. About 21.5% of debt had variable rates. Higher interest rates raise the cost of refinancing.
The CEO changes on January 1, 2027. The new CEO is an insider who has been with the company since 2006, but any change in strategy can affect results.
- Balance sheet
- Cash: $695M
Debt: $13.6B
Net debt: $13.0B
Extra Space funds itself mainly with unsecured senior notes. At June 30, 2026, debt net of discounts and costs was about $13.6 billion: $9.46 billion of unsecured senior notes, $1.50 billion of unsecured term loans, $1.07 billion of secured notes and $1.62 billion drawn on revolving lines of credit and commercial paper. Commercial paper was $850 million of a $1.0 billion program. Cash was $695 million. On July 6, 2026, after the quarter, it completed a $550 million offering of 4.90% notes due 2032. The weighted average interest rate was 4.3% and the weighted average maturity was about 4.0 years. About 78.5% of debt had fixed rates, or 88.4% after the effect of its variable rate bridge loans. Interest expense was $294 million in the first half of 2026. The company had $800 million available under its at-the-market share program and did not use it in Q2 2026.
As of 2026-06-30.
- Checkpoints
- Oct 27, 2026: Q3 2026 results: same-store revenue and occupancy. Pending. Watch: Same-store revenue growth of 2.4% or more and Core FFO guidance kept at $8.25 to $8.40 per share pass; slower revenue growth or lower occupancy fails.
Feb 2027 (estimate): 2027 guidance: first outlook under the new CEO. Pending. Watch: 2027 guidance for same-store revenue growth of about 3% or more and higher Core FFO passes; guidance for flat revenue or lower Core FFO fails.
- Recent events
- 2026-08-24: Extra Space said that its CEO, Joe Margolis, will retire at the end of 2026 and serve as an adviser to the board. Noah Springer, President since January 1, 2026, will become CEO on January 1, 2027. Mr. Springer joined the company in 2006 and built its third-party management platform.
2026-07-28: Extra Space reported Q2 2026 results. Core FFO rose 4.9% to $2.15 per share. Same-store revenue rose 2.4%, same-store expenses fell 0.5% and same-store NOI rose 3.5%. Same-store occupancy was 94.2%. Extra Space raised its 2026 Core FFO guidance to $8.25 to $8.40 per share from $8.05 to $8.35, and its same-store revenue growth guidance to 1.0% to 2.0%.
2026-07-06: Extra Space completed an offering of $550 million of 4.90% unsecured senior notes due 2032.
2026-04-28: Extra Space reported Q1 2026 results and gave 2026 same-store revenue guidance of a fall of 0.5% to a rise of 1.5%, and Core FFO guidance of $8.05 to $8.35 per share.