EXR Filings — Extra Space Storage Inc. - FilingSpy
EXR
Extra Space Storage Inc.
A self-storage real estate company, renting out thousands of units where people and businesses keep everything from furniture to inventory. Founder Kenneth Woolley was inspired while studying at Stanford, building his first facility in Billings, Montana under the name "Secure-it Mini Storage" before the brand grew into Extra Space Storage. Today it's the largest U.S. self-storage operator, managing stores for other owners and even reinsuring tenants' goods against loss.
Same-store NOI grew 3.5% in Q2 2026, the second straight quarter of growth after a prolonged decline.
Same-store performance strengthened for a second consecutive quarter. Total rose 3.9% to $874.2 million and rose 5.9% to $1.25, driven by a 3.5% increase in as operating expenses fell slightly. The core portfolio is expanding again, though $3.0 billion in leaves earnings sensitive to interest rates.
Key takeaways
grew 3.5% to $496.1 million, accelerating from the 1.2% increase in Q1 2026, as net rental income rose 2.5% and operating expenses declined 0.5%.
Total rose 3.9% to $874.2 million, with property rental revenue up 3.5% to $746.2 million, driven by acquisitions and higher average rent per occupied square foot.
widened 0.5 points to 73.5%, and widened 0.4 points to 44.9%, as expense growth of 3.3% lagged growth.
Section summaries
Management's Discussion and Analysis
Total revenues rose 3.9% to $874.2M in Q2 2026, driven by acquisitions and higher rental rates, while same-store NOI grew 3.5%.
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Total revenues increased 3.9% to $874.2M in Q2 2026, with property rental up 3.5% to $746.2M, primarily from acquisitions and higher average rent per occupied square foot.
grew 3.5% to $496.1M, as a 2.5% increase in net rental income and a 0.5% decline in operating expenses offset a slight dip in occupancy to 94.2%.
rose 5.9% to $1.25 and rose 5.5% to $263.5 million, while rose 7.8% to $586.4 million.
Cash and equivalents rose to $695.2 million from $125.0 million a year earlier, while total debt face value reached approximately $13.9 billion with $3.0 billion subject to variable rates.
Tenant reinsurance rose 5.1% to $93.1 million and management fees grew 8.9% to $34.9 million, both reflecting a larger base of operated and managed stores.
What changed
The Q1 2026 filing flagged whether the +1.2% same-store print would hold: Q2 confirmed the reversal with a 3.5% gain, the strongest same-store NOI growth since the Life Storage merger.
The same-store operating expense trend flagged in Q1—a 2.7% rise led by repairs, maintenance, and insurance—reversed in Q2, with expenses declining 0.5% .
The $1.0 billion program flagged as unused at Q1 2026 quarter-end now has $850 million outstanding, contributing to the $695.2 million cash balance.
Property tax expense, a persistent drag flagged across multiple prior filings, was not cited as a driver of expense growth in Q2 2026, marking a departure from the pattern of the previous year.
What to watch
Q3 2026 same-store and occupancy after the +3.5% Q2 print to confirm the trajectory is sustained through the seasonally important summer quarter.
2026 acquisition spend total disclosed next quarter against the $1.0 billion deployed in 2025.
trajectory as $3.0 billion in faces a shifting SOFR environment, with each 100-basis-point move impacting earnings by approximately $29.8 million annually.
Utilization of the remaining capacity under the $1.0 billion program and any share issuance under the $800 million .
Tenant reinsurance rose 5.1% to $93.1M, and management fees and other income grew 8.9% to $34.9M, both driven by an increase in the total number of stores operated and managed.
Total expenses increased 3.3% to $482.0M, with property operations up 1.8% due to acquisitions and higher property taxes and insurance, and up 4.7% from newly acquired stores.
rose to $1.08B for the six months, and the company held $695.2M in cash with $850M in outstanding, stating sufficient liquidity for the next twelve months.
Quantitative and Qualitative Disclosures About Market Risk
Market Risk Market risk refers to the risk of loss from adverse changes in market prices and interest rates. Our future income, cash flows and fair values of financial instruments are dependent upon prevailing market interest rates. Interest Rate Risk Interest rate risk is highl…
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Market Risk
Market risk refers to the risk of loss from adverse changes in market prices and interest rates. Our future income, cash flows and fair values of financial instruments are dependent upon prevailing market interest rates.
Interest Rate Risk
Interest rate risk is highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond our control.
As of June 30, 2026, we had approximately $13.9 billion in total face value of debt, of which approximately $3.0 billion was subject to variable interest rates (excluding debt with interest rate swaps). If SOFR was to increase or decrease by 100 basis points, the increase or decrease in interest expense on the variable-rate debt would increase or decrease future earnings and cash flows by approximately $29.8 million annually.
Interest rate risk amounts were determined by considering the impact of hypothetical interest rates on our financial instruments. These analyses do not consider the effect of any change in overall economic activity that could occur. Further, in the event of a change of that magnitude, we may take actions to further mitigate our exposure to the change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, these analyses assume no changes in our financial structure.
We are involved in various legal proceedings and are subject to various claims and complaints arising in the ordinary course of business. Because litigation is inherently unpredictable, the outcome of these matters cannot presently be determined with any degree of certainty. In…
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We are involved in various legal proceedings and are subject to various claims and complaints arising in the ordinary course of business. Because litigation is inherently unpredictable, the outcome of these matters cannot presently be determined with any degree of certainty. In accordance with applicable accounting guidance, management establishes an accrued liability for litigation when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. The estimated loss, if any, is based upon currently available information and is subject to significant judgment, a variety of assumptions, and known and unknown uncertainties. We could in the future incur judgments or enter into settlements of claims that could have a material adverse effect on our results of operations in any particular period, notwithstanding the fact that we are currently vigorously defending any legal proceedings against us.
In addition to the other information set forth in this report, you should carefully consider the factors discussed in “Part I. Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial con…
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In addition to the other information set forth in this report, you should carefully consider the factors discussed in “Part I. Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition and results of operations. There have been no material changes to the risk factors described in the “Risk Factors” section in our Annual Report on Form 10-K for the year ended December 31, 2025. The risks described in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition and results of operations.