Extra Space Storage forecasts annual FFO below estimates as demand softens

Extra Space Storage

28/04/2026 22:41

(Reuters) April 28 - Extra Space Storage EXR.N on Tuesday forecast full-year funds from operations below Wall Street estimates, citing weaker demand for its self-storage units amid rising competition in key markets.

The real estate investment trust expects annual core FFO to be between $8.05 and $8.35 per share, the midpoint of which is below analysts' average estimate of $8.27 per share, according to data compiled by LSEG.

The Salt Lake City‑based company's occupancy remains under pressure as demand weakens amid a soft economy and increased competition adds to industry oversupply.

At the same time, inflation is slowing new customer growth, while higher operating costs and increased discounting are further pressuring margins.

The company’s same-store occupancy as of March 31, 2026, fell to 93.0%, from 93.2% a year earlier.

Shares of the company fell 1.93% after the bell.

"Our portfolio is experiencing broad-based improvement with positive new and existing customer rate gains and industry leading occupancy, resulting in same-store revenue growth of 1.7%," CEO Joseph D. Margolis said.

The REIT's quarterly core FFO of $2.04 per share came in above analysts' average estimate of $2.01 per share.

However Peer Public Storage PSA.N reported first-quarter core funds from operations (FFO) above Wall Street estimates on Monday, helped by better-than-expected occupancy and move-in rates.

 (Reporting by Megha Kumari in Bengaluru; Editing by Tasim Zahid)

 ((Megha.Kumari@thomsonreuters.com))