Extra Space Storage forecasts 2024 core FFO below Wall St estimates

Extra Space Storage

27/02/2024 22:19

Feb 27 (Reuters) - Extra Space Storage  EXR.N  on
Tuesday forecast 2024 core funds from operations below analysts'
estimates, as demand for self storage spaces decline from the
highs at the peak of the pandemic. 
    The return-to-offices by employees from remote working
setups coupled with a decline in homes sales have weakened
demand for storage, forcing self storage companies to lower rent
to attain new customers. 
    The self-storage REIT now expects 2024 core FFO between
$7.85 and $8.15 per share, compared with estimates of $8.34 per
share. 
    "While we expect a headwind from lower new customer rates,
we are confident in the durability of self-storage," CEO Joe
Margolis said. 
    The REIT, which owns more than 3,600 storage stores in 42
different states, reported a fourth-quarter adjusted FFO of
$2.02 per share, narrowly falling short of analysts' estimates
of $2.03 per share, according to LSEG data
    Total revenue for the quarter ended Dec. 31 came in at
$797.8 million, compared with estimates of $720.8 million.

 (Reporting by Abhinav Parmar and Kannaki Deka in Bengaluru;
Editing by Shailesh Kuber)
 ((kannaki.deka@thomsonreuters.com))