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Extra Area Storage beats quarterly FFO quotes on greater occupancy

Bonus Area Storage beat Wall Street expectations for thirdquarter adjusted funds from operations (FFO) on Tuesday, as the realty financial investment trust saw sustained strength in tenancy.

We continue to maintain strong tenancy during a time of year which is usually marked by tenancy declines, stated CEO Joe Margolis.

Extra Space, which has been protected from an industry-wide fall in tenancy rates post-pandemic, has been taking advantage of a unifying marketing method after its merger with peer Life Storage. Analysts expect the combined company to close the space with peers by the end of 2026.

The Salt Lake City, Utah-based company's quarterly core FFO of $2.07 per share, came above analysts' estimates of $2.04 per share, according to information put together by LSEG.

Nevertheless, earnings per share for the quarter fell by 5.2%,. compared with the exact same duration in 2015 primarily due to a $51.8. million loss related to the impairment of Life Storage's trade. name based upon the company's choice to run under a single. brand name after the merger.

Extra Space slightly raised the lower end of its 2024. changed FFO and same-store earnings growth projection ranges.

The REIT now anticipates 2024 changed FFO to vary in between. $ 8.00 and $8.15 per share, compared with the previous forecast. varying from $7.95 to $8.15 each.

The same-store occupancy rate in the quarter can be found in at. 94.3%, compared to 93.7% in 2015.

Nevertheless, total same store profits for the quarter ended. Sept. 30, fell partially from a year back, by 0.3% to $424. million.

(source: Reuters)