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Key Takeaways Extra Space Storage is expected to report higher Q2 revenues and FFO per share year over year.EXR's diversified portfolio, strong brand and recession-resilient demand support expected top-line growth.Competitive pressure in the fragmented self-storage market may have weighed on pricing during the quarter. Extra Space Storage (EXR - Free Report) , a leading self-storage real estate investment trust (REIT) in the United States, is set to release its second-quarter 2026 results on July 28, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and funds from operations (FFO) per share.In the last reported quarter, this Salt Lake City, UT-based REIT reported FFO per share of $2.04, surpassing the Zacks Consensus Estimate of $2.01. Results reflected a year-over-year increase in same-store NOI. However, lower occupancy during the quarter was a spoilsport.
The company beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 1.11%. The graph below depicts this surprising history:
Factors to Consider & Projections for EXRIn the second quarter, Extra Space Storage is likely to have gained from its high brand value, geographically diversified portfolio and presence in key cities in the United States. The self-storage asset category is need-based and recession-resilient in nature. The self-storage industry continues to benefit from favorable demographic changes. Collectively, these factors are likely to have contributed to the company’s top-line growth.
The Zacks Consensus Estimate of $738.7 million for quarterly property rental revenues suggests an increase from the year-ago period’s $721 million. The consensus estimate for revenues from tenant reinsurance is pegged at $91.3 million, up from the year-ago reported figure of $88.6 million. The consensus mark for management fees and other income for the quarter stands at $34.2 million, slightly up from $32 million in the year-ago period.
The Zacks Consensus Estimate of $867.4 million for quarterly revenues suggests a 3.07% increase year over year.
Extra Space Storage’s activities during the second quarter were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has moved a cent upward to $2.06 over the past two months. It also indicates a 0.5% rise from the year-ago reported figure.
However, EXR operates in a highly fragmented market in the United States, facing intense competition from numerous operators. This competitive environment is likely to have weighed on pricing in the to-be-reported quarter.
What Our Quantitative Model Predicts for EXROur proven model likely predicts a surprise in terms of core FFO per share for Extra Space Storage this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
Extra Space Storage currently has an Earnings ESP of +0.39% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a LookHere are two stocks from the broader REIT industry — BXP, Inc. (BXP - Free Report) and Cousins Properties (CUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
BXP, which is scheduled to report quarterly results on July 28, has an Earnings ESP of +0.18% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins Properties is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and carries a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.