NYSE:EXR
Extra Space Storage Inc.
EXR is the largest self-storage REIT in the US, offering secure storage space with strong cash flow growth and a dominant market position across North America.
Key Metrics
Investment Thesis
Bull Case
EXR offers attractive exposure to the secular growth trend of moving and storage needs with a dominant market share that provides pricing power and high occupancy rates. The company's strong operating cash flow of $1.85B supports consistent dividend payments of $1.37B and allows for strategic acquisitions without compromising financial stability.
Bear Case
The stock faces headwinds from elevated interest rates which increase the cost of capital for this asset-heavy REIT with significant long-term operating lease assets of $732.2M. Additionally, a retained earnings deficit of -$1.45B suggests historical pressure on profitability that requires careful monitoring against future revenue growth targets.
About Extra Space Storage Inc.
Extra Space Storage Inc. (EXR) is a leading self-storage real estate investment trust operating approximately 1,700 facilities across the United States. The company generates revenue primarily through monthly rental fees from residential and commercial storage units while strategically expanding its footprint in high-growth markets. With total assets of $29.26B and revenue reaching $3.38B in 2025, EXR leverages its extensive network to provide secure storage solutions for consumers and businesses.
Analysis
Management Discussion
Financial performance remains robust with net profit reaching $1.02B in 2025, up from $900.2M the prior year, reflecting successful execution of expansion strategies and operational efficiency gains. Operating cash flow of $1.85B demonstrates strong liquidity generation despite a net change in cash of -$123,000 due to substantial capital expenditures for investing activities totaling $814.2M.
Industry Overview
The self-storage industry is characterized by low correlation to the broader economy as demand persists even during downturns due to essential moving and storage needs. As a REIT, EXR benefits from tax advantages regarding dividends while facing competition from other institutional players and non-REIT developers in key metropolitan areas.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.92B | $2.56B | $3.26B | $3.38B |
| Cost of Revenue | $435.3M | $612.0M | $831.6M | $918.1M |
| Gross Profit | $1.49B | $1.95B | $2.43B | $2.46B |
| Operating Expenses | $438.4M | $778.1M | $1.10B | $1.05B |
| Operating Income | $1.05B | $1.17B | $1.32B | $1.41B |
| G&A | $129.3M | $146.4M | $167.4M | $186.3M |
| Stock-Based Comp | $21.4M | $26.6M | $22.9M | $35.5M |
| D&A | — | $506.1M | $783.0M | $715.2M |
| Amortization | $14.0M | $59.8M | $114.6M | $21.2M |
| Other OpEx | $309.2M | $631.7M | $934.6M | $860.4M |
| Non-Operating Income | $-149.7M | $-353.0M | $-470.7M | $-471.9M |
| Interest Expense | — | $419.0M | — | — |
| Interest Income | $69.4M | $84.9M | $124.4M | $163.2M |
| Pre-Tax Income | $900.7M | $817.2M | $852.7M | $940.8M |
| Income Tax | $20.9M | $21.6M | $33.5M | $41.6M |
| Continuing Ops | $879.7M | $795.6M | $819.2M | $899.2M |
| Discontinued Ops | $41.4M | $54.8M | $81.0M | $123.3M |
| Net Income | $921.2M | $850.5M | $900.2M | $1.02B |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $921.2M | $850.5M | $900.2M | $1.02B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $92.9M | $99.1M | $138.2M | $138.9M |
| PP&E (Net) | $42.8M | $48.7M | $50.4M | $65.2M |
| Goodwill | $170.8M | $170.8M | $170.8M | $170.8M |
| Operating Leases | $221.7M | $227.2M | $689.8M | $732.2M |
| Total Assets | $12.17B | $27.46B | $28.85B | $29.26B |
| Total Liabilities | $8.09B | $12.04B | $13.99B | $14.94B |
| Shareholders' Equity | $4.08B | $15.41B | $14.86B | $14.32B |
| Retained Earnings | $-135.9M | $-379.0M | $-899.3M | $-1.45B |
| AOCI | $48.8M | $17.4M | $12.8M | $-420.0K |
| Total L&E | $12.17B | $27.46B | $28.85B | $29.26B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $921.2M | $850.5M | $900.2M | $1.02B |
| Non-Cash Adjustments | $278.5M | $487.6M | $905.4M | $883.8M |
| Working Capital Changes | $38.5M | $64.5M | $81.8M | $-56.2M |
| Cash from Operations | $1.24B | $1.40B | $1.89B | $1.85B |
| Cash from Investing | $-1.65B | $-1.82B | $-1.65B | $-814.2M |
| Share Buybacks | $63.0M | $0 | $0 | $149.5M |
| Dividends Paid | $805.3M | $1.05B | $1.38B | $1.37B |
| Cash from Financing | $431.9M | $423.1M | $-202.3M | $-1.04B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $21.5M | $7.3M | $38.2M | $-123.0K |
| Beginning Cash | $76.2M | $97.7M | $105.1M | $143.3M |
| Ending Cash | $97.7M | $105.1M | $143.3M | $143.2M |
Frequently Asked Questions
How does Extra Space Storage Inc. make money?
The company operates through three primary segments: Residential Storage serving individual households, Commercial Storage for businesses and moving companies, and Specialty Storage including climate-controlled units for sensitive items like wine, art, and documents.
What are the main risks for EXR?
Investors should consider the risk of rising interest rates impacting financing costs for the company's significant debt load, potential declines in consumer demand during recessionary periods affecting residential storage occupancy, and exposure to property-level casualty losses or natural disasters.
What is EXR's competitive advantage?
EXR benefits from a first-mover advantage in many markets allowing it to set competitive rental rates, a highly optimized logistics network that reduces operating costs per unit, and a diversified geographic footprint that mitigates local economic downturns.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.