Extra Space Storage Earnings: Rent Growth Moderates As Demand for Self-Storage Falters

No-moat-rated Extra Space Storage reported a middling set of numbers in the third quarter as demand for self-storage starts to cool down. The firm reported core funds from operations, or FFO, of $2.02 per share, 8.6% lower than the $2.21 per share FFO during the third quarter of 2022 partly due to higher interest expenses. The company has largely maintained its FFO guidance as it expects 2023 full-year core FFO to be in the $8.05-$8.20 per share range, representing a 3.7% decline compared with last year. We are maintaining our $165 per share fair value estimate for Extra Space Storage after incorporating the third-quarter results.