Q3 2024 Extra Space Storage Inc Earnings Call Transcript
Key Points
- Extra Space Storage Inc (EXR) reported a strong quarter with occupancy gains and G&A savings, leading to an increase in the midpoint of their full-year FFO guidance.
- The company successfully increased the bottom end of their same-store revenue guidance by 75 basis points, indicating solid store performance.
- External growth initiatives exceeded projections, with the addition of 63 third-party managed stores in the third quarter, netting 38 stores.
- The bridge loan program expanded significantly, with $158 million in new loans originated in the quarter, and an expected average hold of $925 million for the year.
- Extra Space Storage Inc (EXR) continues to find efficiencies in the business, resulting in lowered G&A guidance for the year.
- Revenue for the Life Storage same-store pool came in slightly below expectations, leading to a reduction in annual same-store revenue guidance by 50 basis points at the midpoint.
- Increases in property taxes have necessitated a raise in expense guidance by 25 basis points.
- The impact of Hurricane Milton resulted in estimated property damage and tenant insurance claims of $10 million or more, with three REIT stores remaining closed.
- Lower-than-expected pricing power to new customers in the Life Storage same-store pool contributed to reduced revenue expectations.
- The company experienced a negative 9% year-over-year average new customer move-in rate, indicating challenges in attracting new customers at higher rates.
Ladies and gentlemen, thank you for standing by. Welcome to the third quarter 2024 Extra Space Storage earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would like now to turn the conference over to Jared Conley, Vice President of Investor Relations. Sir, please go ahead.
Thank you, Michelle. Welcome to Extra Space Storage's third quarter 2024 earnings call. In addition to our press release, we have furnished unaudited supplemental financial information on our website.
Please remember that management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act. Actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with the company's business.
These forward-looking statements are qualified by the cautionary statements
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