Extra Space Earnings: Occupancy Holds Up but Same-Store Rent Growth Remains Under Pressure

No-moat-rated Extra Space Storage reported a lackluster set of numbers in the third quarter, given the difficult self-storage demand environment. The occupancy for the self-storage portfolio remained strong, but it came at the expense of weakness in same-store rent growth. The firm reported core funds from operations of $2.07 per share during the third quarter, up 2.5% compared with the same quarter in the previous year. The company has slightly revised the lower end of its 2024 full-year core FFO guidance upward to $8.00-$8.15 per share. We are maintaining our $165 per share fair value estimate for Extra Space Storage after incorporating the third-quarter results.