, /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced that the company will conduct a conference call and audio webcast on Tuesday, August 4, 2026 at 2:00 p.m. Eastern Time (ET), in conjunction with the release of its second quarter 2026 operating and financial results. Alexandria will release its operating and financial results after the market closes on Monday, August 3, 2026.
To participate in this conference call, dial (833) 366-1125 (U.S./Canada) or (412) 902-6738 (international) shortly before 2:00 p.m. ET and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The live audio webcast can be accessed on the company's website at http://investor.are.com/webcasts. A replay of the call will be available from 4:00 p.m. ET on Tuesday, August 4, 2026 through 4:00 p.m. ET on Tuesday, August 11, 2026. To access the replay, dial (855) 669-9658 (U.S./Canada) or (412) 317-0088 (international) and enter access code 5367901.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator and developer of collaborative Megacampus™ ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle and New York City. For more information, please visit www.are.com.
It has been about a month since the last earnings report for Alexandria Real Estate Equities (ARE - Free Report) . Shares have added about 20% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Alexandria Real Estate Equities due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Alexandria’s Q1 FFO Meets Estimates, Revenues Top on Tenant CollectionsAlexandria Real Estate Equities reported first-quarter 2026 AFFO per share of $1.73, in line with the Zacks Consensus Estimate. The metric declined 24.8% from $2.30 in the year-ago quarter.
Total revenues came in at $671.0 million, down 11.5% year over year. The top line edged past the Zacks Consensus Estimate, delivering a revenue surprise of 0.35%. Results reflected solid tenant collections and continued leasing activity during the quarter.
Alexandria’s Leasing Volume Stays Active in Q1During the quarter, Alexandria executed 647,356 RSF of leasing, led by 380,687 RSF of renewals and re-leasing. Leasing of previously vacant space totaled 148,734 RSF, while development and redevelopment leasing contributed 117,935 RSF.
Management also highlighted momentum after quarter-end, noting executed leases and/or letters of intent aggregating 276,188 RSF from April 1 through April 27, 2026, tied to the development and redevelopment pipeline. The company added that 72% of first-quarter leasing activity was generated from its existing tenant base.
Alexandria’s Tenant Base Remains a Key DifferentiatorAlexandria continued to emphasize tenant quality and cash-flow visibility. As of March 31, 2026, investment-grade or publicly traded large-cap tenants represented 55% of annual rental revenues, in effect, supporting stability in a choppier demand backdrop for life science real estate.
The company’s lease structure also remained geared toward embedded growth, with 97% of leases containing annual rent escalations. Weighted-average remaining lease term stood at 7.5 years for all tenants and 9.9 years for the top 20 tenants, reinforcing the long-duration nature of its contracted revenues.
Alexandria’s Rental Rates & Occupancy Show Pressure PointsThe company registered a negative rental rate of 15% during the quarter. On a cash basis, the rental rate decreased 15.8%. As of March 31, 2026, occupancy of operating properties was 87.7%, down 3.7% from the prior quarter and 4% from the year-ago quarter. Our estimate for the same was 89.4%.
On a year-over-year basis, same-property NOI decreased 11.9% and 11.7% on a cash basis.
Interest expenses jumped 26.9% year over year to $64.6 million.
Alexandria’s Balance Sheet Actions in FocusAlexandria underscored liquidity and debt-term advantages. As of March 31, 2026, the company reported $4.17 billion of liquidity and a weighted-average remaining debt term of 10 years. It also noted that only 9% of total debt matures through 2028. The net debt and preferred stock to adjusted EBITDA was 6.8X, and the fixed-charge coverage was 3.4X for the first quarter of 2026 on an annualized basis.
The quarter included notable capital markets and liability management activity. In February 2026, the company completed tender offers to repurchase $1.33 billion of debt principal amount, recognizing a $366.4 million gain on early extinguishment of debt. It funded the repurchase largely by issuing $750 million of 5.25% unsecured senior notes due 2036 and incremental commercial paper borrowings, intended to be repaid through planned dispositions and sales of partial interests.
Alexandria’s Capital Recycling Plan and 2026 OutlookA major strategic priority remains capital recycling to fund the business and reduce funding needs. As of April 27, 2026, Alexandria outlined $2.90 billion at the midpoint of its 2026 guidance for dispositions and sales of partial interests, with $151 million completed and pending, $2.181 billion identified and in process, and an additional $568 million projected.
For 2026, Alexandria maintained its updated FFO per share (as adjusted) guidance range of $6.30-$6.50 (midpoint $6.40). The company expects occupancy of operating properties to be between 86.2% and 87.8%. Rental rate changes for lease renewals and re-leasing of space are to be within negative 9% and negative 1%. Same-property NOI performance is projected in the range of negative 10.5%-8.5%.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
VGM ScoresAt this time, Alexandria Real Estate Equities has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Alexandria Real Estate Equities has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerAlexandria Real Estate Equities belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Crown Castle (CCI - Free Report) , has gained 5.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Crown Castle reported revenues of $1.01 billion in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $0.50 for the same period compares with $1.10 a year ago.
For the current quarter, Crown Castle is expected to post earnings of $1.00 per share, indicating a change of -2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Crown Castle has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
On May 27, 2026, Alexandria Real Estate Equities Inc ARE shares rose 3.0% today, closing at $49.93. The stock has seen a 52-week range with a high of $88.24 and a low of $39.41, indicating significant volatility over the past year.
GF Value™ verdict: Current price of $49.93 vs GF Value™ of $97.24, indicating a 48.7% upside.GF Score™: 58/100, which is considered average.Most notable signal: Insider activity shows a net purchase of $0.9M in the last 3 months. Is ARE Overvalued or Undervalued? According to the GF Value™, Alexandria Real Estate Equities Inc ARE is currently trading at $49.93, which is significantly below its estimated fair value of $97.24. This represents a margin of safety of 48.7%, suggesting that the stock is undervalued based on intrinsic value metrics. However, it is important to note that the GF Valuation label indicates that this could be a possible value trap, meaning that while there may appear to be an opportunity, risks are associated with investing at this time. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Investors might find an opportunity in ARE, but they should proceed with caution given the company's current financial strength rating of 4/10 and a profitability rank of 6/10. The potential for recovery exists, but the financial metrics suggest that investors need to be aware of the inherent risks, particularly in light of the stock's past performance, which has seen a decline of 24.3% over the past year.
How Does ARE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 75.7x 55.5x The current P/E ratio of 75.7x is significantly above its 5-year median P/E of 55.5x, indicating that the stock is trading at a premium compared to its historical valuation. This suggests that the P/E analysis disagrees with the GF Value™ verdict, which implies that while ARE may be undervalued in terms of intrinsic value, it is overvalued based on its earnings potential relative to historical performance.
What Does ARE's GF Score™ Tell Us? Metric Rating GF Score™ 58 Financial Strength 4/10 Profitability 6/10 Growth 3/10 Valuation 2/10 Momentum 4/10 The GF Score™ of 58/100 indicates that ARE is positioned in the average category when it comes to long-term return potential. The strongest area is profitability, rated at 6/10, suggesting that the company has some solid profit-generating capabilities. However, the weakest area is valuation, rated at 2/10, which aligns with the concerns raised by its high P/E ratio and the GF Value™ analysis. Overall, the mixed scores highlight the need for careful consideration before making any investment decisions.
What Are Insiders Doing with ARE Stock? Recent insider activity for Alexandria Real Estate Equities Inc shows that insiders bought $1.2 million worth of shares while selling $0.3 million in the last three months, indicating a net purchase of $0.9 million. This pattern of net insider buying could suggest that those with the most intimate knowledge of the company's prospects are optimistic about its future performance, despite the stock's recent struggles. However, potential investors should consider this alongside other financial indicators when assessing the stock's overall health.
What This Means for Investors In summary, Alexandria Real Estate Equities Inc ARE appears undervalued based on its GF Value™ of $97.24 compared to the current price of $49.93. However, the stock's high P/E ratio and average GF Score™ suggest that investors should approach this opportunity with caution, keeping in mind the risk factors indicated by its financial strength and valuation metrics.
For the complete analysis, visit the Alexandria Real Estate Equities Inc ARE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ARE's GF Score™?
ARE has a GF Score™ of 58/100, which is considered average in terms of long-term return potential.
Is ARE overvalued or undervalued?
ARE is currently undervalued according to its GF Value™ of $97.24, compared to its current price of $49.93.
What is ARE's P/E ratio?
ARE's P/E ratio is 75.7x, which is significantly higher than its 5-year median P/E of 55.5x, indicating it is trading at a premium compared to historical valuations.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Value-oriented, high-yield assets can serve as a shelter against potential drawdown risks in the richly priced large-cap growth arena. The trick is to find the highest-yielding opportunities possible without taking on the income reduction and NAV decay risks.
, /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced that its Board of Directors declared a quarterly cash dividend of $0.72 per common share for the second quarter of 2026. The dividend is payable on July 15, 2026 to stockholders of record on June 30, 2026.
The declared dividend of $0.72 per common share is consistent with that of the preceding quarter and reflects the company's commitment to fortify its already strong balance sheet, enhance financial flexibility and preserve liquidity. In addition to conserving significant capital, the dividend provides a competitive yield on its common stock of 5.8%, based on the closing stock price on May 28, 2026. Additionally, the company's dividend payout ratio (quarterly common stock dividends divided by quarterly funds from operations) remains conservative at 42% for the three months ended March 31, 2026.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus™ ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City. For more information, please visit www.are.com.
This press release includes "forward-looking statements" within the meaning of the federal securities laws. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in the company's Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission.
TORONTO, June 01, 2026 (GLOBE NEWSWIRE) -- Aecon Group Inc. (TSX: ARE) (“Aecon” or the “Corporation”) announced today that the nominees listed in the Management Information Circular dated April 29, 2026 were elected as Directors of Aecon, to hold office until the close of the next Annual General Meeting of the Corporation or until their successors are appointed.
Scott Thon was re-elected to Aecon’s Board of Directors and appointed independent Board Chair, as John M. Beck did not stand for re-election, and the Board conferred upon Mr. Beck the title of Chairman Emeritus.
“On behalf of my fellow members of the Board and Aecon’s management, we thank John for his strategic direction, exceptional leadership and extensive contributions to Aecon’s clients, employees, and shareholders – shaping Aecon’s evolution with extraordinary vision over his award-winning 60-plus year career,” said Scott Thon, Board Chair, Aecon Group Inc.
Shareholders also adopted all other resolutions submitted for their approval, as disclosed in the Management Information Circular dated April 29, 2026 including the advisory vote on the Corporation’s approach to executive compensation, and the re-appointment of PricewaterhouseCoopers LLP as the auditors of the Corporation to hold office until the close of the next Annual Meeting of the Corporation and that the board of directors be authorized to fix the auditors’ remuneration.
The complete voting results for each item of business are as follows:
Election of Directors
Name of NomineeVotes in Favour% Votes in FavourVotes Against% Votes AgainstScott Thon37,701,79895.3%1,841,7194.7%Susan Wolburgh Jenah38,350,17497.0%1,193,3433.0%Leslie Kass39,231,90999.2%311,6080.8%Stuart Lee37,158,44494.0%2,385,0756.0%Jeffrey Lyash39,419,88799.7%123,6320.3%Rod Phillips37,152,86794.0%2,390,6526.0%Eric Rosenfeld34,346,48386.9%5,197,03413.1%Jean-Louis Servranckx39,492,52299.9%50,9970.1%Deborah S. Stein36,869,10293.2%2,674,4156.8%Scott Stewart39,471,56599.8%71,9540.2%
Advisory Vote on Executive Compensation
Votes in Favour% Votes in FavourVotes Against% Votes Against36,532,42192.4%3,011,0987.6%
Re-Appointment and Remuneration of Auditors
Votes in Favour% Votes in FavourVotes Withheld% Votes Withheld38,240,94196.0%1,590,8984.0%
Dividend
Aecon’s Board of Directors approved its next quarterly dividend of 19.25 cents per common share. The dividend will be paid on July 3, 2026, to shareholders of record as of June 23, 2026. Unless indicated otherwise, all common share dividends paid by Aecon to shareholders are designated as “eligible” dividends for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.
About Aecon
Aecon Group Inc. (TSX: ARE) is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment. Join our online community on X, LinkedIn, Facebook, and Instagram @AeconGroupInc.
Statement on Forward-Looking Information
The information in this press release includes certain forward-looking statements. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties as discussed in greater detail in Section 13 – “Risk Factors” in Aecon’s 2025 Management’s Discussion and Analysis for the fiscal year ended December 31, 2025, and in Aecon’s Management’s Discussion and Analysis for the fiscal quarter ended March 31, 2026, filed on SEDAR+ (www.sedarplus.ca). Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
For further information:
Adam Borgatti
SVP, Corporate Development and Investor Relations
416-297-2600 [email protected]
Alexandria Real Estate Equities remains rated Hold as improved policy clarity and a recovering disposition market are offset by new operational headwinds. NIH indirect cost cap removal and better asset sale prospects reduce tail risks, but occupancy and NOI guidance have been revised downward amid weak leasing trends. A significant 2027 lease expiration wall (~$97m annual rent) now threatens to extend FFO pressures beyond Q4 2026, clouding recovery visibility.
TORONTO, June 04, 2026 (GLOBE NEWSWIRE) -- Aecon Group Inc. (TSX: ARE) (“Aecon”) and Arctic Gateway Group (“AGG”), an Indigenous and community-owned business, announced today that they have signed a Memorandum of Understanding (“MOU”), establishing a collaboration framework to explore strengthening Canada’s northern trade corridor and Arctic sovereignty through infrastructure advancement related to the Port of Churchill in Manitoba.
Under the MOU, Aecon and AGG will collaborate to pursue and develop project opportunities in connection with the development of the Port of Churchill and Hudson Bay Railway – leveraging Aecon’s diverse construction and infrastructure development expertise and AGG’s established Indigenous and economic development leadership in northern Canada. This work will be undertaken with a strong focus on ensuring that all development of the Port of Churchill and Hudson Bay Railway maximizes jobs, training and opportunities for Indigenous and northern people, as well as Indigenous and northern businesses. This focus aligns with Aecon’s broader approach to reconciliation and supports Indigenous participation in infrastructure development through Indigenous and community ownership, as well as AGG’s mandate as an Indigenous and community owned company.
“Aecon is proud to partner with Arctic Gateway Group through this collaboration agreement – bringing Aecon’s multidisciplinary expertise to explore infrastructure solutions that support Indigenous-led development, economic reconciliation, trade diversification, access to new markets and Arctic security,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc.
“The continued development of this project is a nation-building opportunity to transform the Port of Churchill as Canada’s Arctic and Northern gateway, while delivering lasting national and local benefits for generations to come,” said Tim Murphy, Executive Vice President and Chief Strategic Affairs Officer, Aecon Group Inc.
“This partnership with Aecon will help supercharge Arctic Gateway’s infrastructure planning, with proven expertise and advice from a major North American construction company,” said Chris Avery, President & CEO, Arctic Gateway Group. “As AGG works to further modernize the Port of Churchill, with planning for new terminals and year-round operations, as well as building up the Hudson Bay Railway to modern industrial weight standards that seamlessly intertie with Canada’s class 1 rail network, Aecon will be a trusted partner. Working together, we can ensure that all development of AGG’s infrastructure assets creates good jobs and opportunities for Indigenous and northern people, with lasting community benefits.”
The Port of Churchill is Canada’s only deep-water northern seaport with direct access to the Atlantic Ocean and a connection to the continental rail network through the Hudson Bay Railway. The port and railway are operated by AGG, whose ownership group is comprised of 29 First Nations and 12 remote northern Manitoba communities.
Further information about the Port of Churchill project is available on the AGG website and the Government of Canada’s Major Projects Office website.
Further information about Aecon’s Reconciliation Action Plan is available on the Aecon website.
About Arctic Gateway Group
Arctic Gateway Group is a proudly Indigenous and community owned Manitoba company that owns and operates the Port of Churchill, Canada’s only northern seaport serviced by rail, as well as the Hudson Bay Railway, operating from The Pas to Churchill. Together this northern infrastructure forms the nexus of Canada’s Arctic Trade Corridor, providing a reliable and efficient route for Western Canadian resources to access world markets.
About Aecon
Aecon Group Inc. (TSX: ARE) is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment. Join our online community on X, LinkedIn, Facebook, and Instagram @AeconGroupInc.
For further information:
Adam Borgatti
SVP, Corporate Development and Investor Relations
416-297-2600 [email protected]
The information in this press release includes certain forward-looking statements which may constitute forward-looking information under applicable securities laws. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. Forward-looking statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, ongoing objectives, strategies and outlook for Aecon, including statements regarding the potential opportunities to advance reconciliation efforts, the anticipated project opportunities from the collaboration; and the anticipated benefits this project will have on the economy and communities. Forward-looking statements may in some cases be identified by words such as “may,” “will,” “expects,” “target,” “future,” “plans,” “believes,” “anticipates,” “estimates,” “projects,” “intends,” “should” or the negative of these terms, or similar expressions.
In addition to events beyond Aecon’s control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to, the risk of not being able to meet contractual schedules and other performance requirements, the risks associated with a third party’s failure to perform; the risk of not being able to meet its labour needs at reasonable costs; the risk of not being able to address any supply chain issues which may arise; the risk of the anticipated benefits from the project not being fully realized; and the risk of Aecon not being selected or able to pursue projects as anticipated through this MOU. These forward-looking statements are based on a variety of factors and assumptions including but not limited to that: none of the risks identified above materialize, there are no unforeseen changes to economic and market conditions, and no significant events occur outside the ordinary course of business. These assumptions are based on information currently available to Aecon, including information obtained from third-party sources. While Aecon believes that such third-party sources are reliable sources of information, Aecon has not independently verified the information. Aecon has not ascertained the validity or accuracy of the underlying economic assumptions contained in such information from third-party sources and hereby disclaims any responsibility or liability whatsoever in respect of any information obtained from third-party sources.
Risk factors are discussed in greater detail in Section 13 – “Risk Factors” in Aecon’s 2025 Management’s Discussion and Analysis for the fiscal year ended December 31, 2025, and in Aecon’s Management’s Discussion and Analysis for the fiscal quarter ended March 31, 2026, filed on SEDAR+ (www.sedarplus.ca). Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
U.S. equity markets fell for a fifth-straight week— pulling several major benchmarks into correction territory— as the Iran conflict remained locked in a volatile stalemate, keeping energy markets on edge. The fourth week of the Iran conflict delivered little progress toward de-escalation, as Washington maintained strikes on Iranian nuclear sites while Tehran continued retaliatory attacks across the Persian Gulf. The S&P 500 declined 2.1% this week and now sits 8.7% below its late-January record. The Dow and Nasdaq both entered "correction" territory, while the VIX volatility index topped 30.
, /PRNewswire/ -- Extra Space Storage Inc. (the "Company") (NYSE: EXR) announced today it will release financial results for the three months ended March 31, 2026 on Tuesday, April 28, 2026 after the market closes. The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, April 29, 2026 to discuss its financial results. Hosting the call will be Extra Space Storage's CEO, Joe Margolis. Joining him will be Jeff Norman, Executive Vice President and CFO.
During the conference call, company officers will review operating performance, discuss recent events, and conduct a question-and-answer period. The question-and-answer period will be limited to registered financial analysts. All other participants will have listen-only capability.
To Participate in the Conference Call:
A live webcast of the conference call will be available online from the investor relations page of the Company's corporate website at www.extraspace.com. Telephone participants may avoid delays in joining the conference call by pre-registering for the call using the following link to receive a special dial-in number and PIN: https://events.q4inc.com/analyst/970879752?pwd=s88EVPAR.
The conference call will also be available on the Company's website under Investor Relations at www.extraspace.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
Conference Call Playback:
A replay of the webcast will be available on the Extra Space Storage Investor Relations website beginning April 29, 2026 at 5:00 p.m. ET, and will remain available for one year after the call.
Full Text of the Earnings Report and Supplemental Data
The full text of the earnings report and supplemental data will be available at the Company's investor relations website immediately following the earnings release to the wire services after the market close on Thursday, April 28, 2026.
About Extra Space Storage Inc.
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2025, the Company owned and/or operated 4,281 self-storage stores in 43 states and Washington, D.C. The Company's stores comprise approximately 2.9 million units and approximately 330.4 million square feet of rentable space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.
For more information, please visit www.extraspace.com.
As Dow Jones slides into the “correction territory” and the benchmark S&P 500 index logs its fifth consecutive week of losses, investors are increasingly desperate for a port in the storm.
According to Barclays’ senior analyst Andrew Ferremi, the market has shifted into a new, volatile era where geopolitical tensions, oil price spikes, and AI-driven disruption are “no longer episodic shocks but persistent features of the investment landscape.”
In response, the investment firm has identified four “overweight” rated stocks that offer a blend of defensive stability and attractive dividends to help portfolios weather the 2026 turbulence.
For investors seeking consistent income amidst the chaos, EXR stands out with a rather compelling 5.05% dividend yield – the highest on Barclays’ list.
While the broader market remains jittery over interest rates and real estate volatility, Barclays says the self-storage sector remains historically resilient through economic cycles.
According to analyst Brendan Lynch, this sector’s financials are poised for a “rebound” as supply pressures begin to ease.
Importantly, the NYSE-listed firm is leveraging the very technology causing stress elsewhere: AI.
“The largest players are best positioned to capture demand and leverage tech given large volumes of customer data and strong brand recognition,” Lynch told clients.
His $170 price target indicates potential upside of a whopping 33% in Extra Space Storage shares.
While the banking sector is facing headwinds from private credit redemptions, JPMorgan remains a cornerstone of defensive investing.
Although JPM shares are currently down about 15% versus their YTD high, analyst Jason Goldberg suggests that investors are essentially “getting paid to wait” – thanks to a 2.1% dividend yield.
In his research note, the Barclays analyst cited the bank’s strong balance sheet as a key differentiator during times of macro uncertainty.
Goldberg described the bank as “complete, global, diversified, and at scale”, adding that its massive footprint allows it to offset margin compression through sheer volume growth.
His $391 price target on JPMorgan stock is a bet on its ability to maintain stable earnings regardless of the operating environment.
In consumer staples, Coca-Cola shares remain the gold standard for safety.
While other sectors struggle with the fallout of the Iran conflict and rising oil prices, the beverage giant has managed to gain more than 10% since the start of 2026.
Analyst Lauren Lieberman labels the company “the best example of a truly defensive, high-quality staples business.”
The secret to its success lies in its decades of experience navigating “dynamic macro conditions”, and its inherent agility – whether it’s inflation or supply chain shifts, KO’s brand power provides a unique cushion.
Barclays currently has an $83 price target on KO shares, indicating a 10% upside on top of a 2.78% dividend yield.
Pharmaceutical giant Merck rounds out the list, providing the “safe haven” characteristics that define the healthcare sector during geopolitical unrest.
According to analyst Emily Field, MRK shares are “perfectly positioned” to withstand the current macro uncertainty.
Merck has already demonstrated its strength, rising 12% this year while broader indices crumbled.
Beyond its defensive profile, Merck stock offers a healthy 2.88% dividend yield, which makes it an attractive play for income-focused investors.
Field has a $140 price target on MRK, implying 17% upside from current levels.
As investors rotate out of high-growth tech and into sectors with proven earnings visibility, MRK’s role as a stable, cash-generative leader makes it a primary pick for navigating turbulence in 2026.
Key Takeaways EXR is set to report Q1 results with expected YoY growth in revenue and FFO per share.EXR benefits from strong brand, diversification and resilient self-storage demand trends.EXR faces pricing pressure from high supply and intense market competition. Extra Space Storage (EXR - Free Report) , a leading self-storage real estate investment trust (REIT) in the United States, is set to release its first-quarter 2026 results on April 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 $2.08, surpassing the Zacks Consensus Estimate of $2.03. Results reflected a year-over-year increase in same-store NOI. However, lower occupancy during the quarter was a spoilsport.
Over the trailing four quarters, the company beat the Zacks Consensus Estimate on three occasions and missed in the remainder, with the average surprise being 1.25%. The graph below depicts this surprise history:
Factors to Consider and Projections for EXRIn the first 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. All these factors cumulatively are likely to have contributed to the company’s top-line growth.
The Zacks Consensus Estimate of $726.7 million for quarterly property rental revenues suggests an increase from the year-ago period’s $704.4 million. The consensus estimate for revenues from tenant reinsurance is pegged at $89.6 million, which jumped from $84.7 million reported in the year-ago period. The consensus mark for management fees and other income for the quarter stands at $33.2 million, up from $30.9 million in the year-ago period.
The Zacks Consensus Estimate of $850.4 million for quarterly revenues suggests a 3.70% increase year over year.
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.
Extra Space Storage’s activities during the quarter were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has moved a cent southward to $2.01 over the past month. However, it indicates 0.5% rise compared to the year-ago reported figure.
What Our Quantitative Model Predicts for EXROur proven model does not conclusively predict 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 not the case here.
Extra Space Storage currently has an Earnings ESP of -1.73% 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.
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, scheduled to report quarterly numbers on April 28, has an Earnings ESP of +0.17% 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 April 29. VTR has an Earnings ESP of +0.94% 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.
Cwm LLC lessened its stake in Extra Space Storage Inc (NYSE:EXR – Free Report) by 53.6% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 19,274 shares of the real estate investment trust’s stock after selling 22,263 shares during the period. Cwm LLC’s holdings in Extra Space Storage were worth $2,510,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other large investors also recently bought and sold shares of EXR. Vanguard Group Inc. increased its position in Extra Space Storage by 0.5% during the third quarter. Vanguard Group Inc. now owns 34,430,823 shares of the real estate investment trust’s stock worth $4,852,680,000 after buying an additional 161,171 shares during the period. State Street Corp boosted its stake in Extra Space Storage by 1.7% during the 3rd quarter. State Street Corp now owns 13,910,878 shares of the real estate investment trust’s stock worth $1,960,599,000 after purchasing an additional 230,697 shares during the period. Capital World Investors boosted its stake in Extra Space Storage by 0.5% during the 3rd quarter. Capital World Investors now owns 7,161,360 shares of the real estate investment trust’s stock worth $1,009,371,000 after purchasing an additional 33,622 shares during the period. Principal Financial Group Inc. boosted its stake in Extra Space Storage by 6.4% during the 3rd quarter. Principal Financial Group Inc. now owns 6,715,901 shares of the real estate investment trust’s stock worth $946,540,000 after purchasing an additional 406,146 shares during the period. Finally, Capital International Investors boosted its stake in Extra Space Storage by 1.0% during the 3rd quarter. Capital International Investors now owns 3,597,740 shares of the real estate investment trust’s stock worth $507,065,000 after purchasing an additional 35,752 shares during the period. Institutional investors and hedge funds own 99.11% of the company’s stock.
Extra Space Storage Trading Down 0.4% Shares of Extra Space Storage stock opened at $142.10 on Friday. Extra Space Storage Inc has a 52-week low of $125.71 and a 52-week high of $155.19. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.92. The company’s 50-day simple moving average is $140.92 and its 200-day simple moving average is $138.59. The firm has a market cap of $30.01 billion, a price-to-earnings ratio of 30.89, a price-to-earnings-growth ratio of 2.86 and a beta of 1.26.
Extra Space Storage (NYSE:EXR – Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The real estate investment trust reported $2.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.03 by $0.05. Extra Space Storage had a net margin of 28.84% and a return on equity of 6.79%. The business had revenue of $857.47 million for the quarter, compared to analyst estimates of $732.92 million. During the same period in the previous year, the business posted $2.03 earnings per share. The business’s revenue was up 4.3% compared to the same quarter last year. Extra Space Storage has set its FY 2026 guidance at 8.050-8.350 EPS. As a group, equities research analysts anticipate that Extra Space Storage Inc will post 8.24 earnings per share for the current year.
Extra Space Storage Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were issued a $1.62 dividend. This represents a $6.48 annualized dividend and a dividend yield of 4.6%. The ex-dividend date of this dividend was Monday, March 16th. Extra Space Storage’s dividend payout ratio (DPR) is currently 140.87%.
Insider Activity at Extra Space Storage In other news, CEO Joseph D. Margolis sold 7,500 shares of the firm’s stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $142.08, for a total value of $1,065,600.00. Following the completion of the sale, the chief executive officer directly owned 66,495 shares of the company’s stock, valued at $9,447,609.60. This trade represents a 10.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.96% of the stock is owned by corporate insiders.
Wall Street Analyst Weigh In A number of brokerages recently weighed in on EXR. Mizuho increased their price target on shares of Extra Space Storage from $137.00 to $143.00 and gave the stock an “outperform” rating in a research note on Monday, January 12th. UBS Group dropped their price target on Extra Space Storage from $156.00 to $148.00 and set a “buy” rating on the stock in a research report on Thursday, January 8th. Bank of America cut Extra Space Storage from a “neutral” rating to an “underperform” rating and set a $143.00 price target on the stock. in a research report on Thursday, February 5th. Weiss Ratings restated a “hold (c)” rating on shares of Extra Space Storage in a research report on Tuesday. Finally, Wall Street Zen cut Extra Space Storage from a “hold” rating to a “sell” rating in a research report on Saturday. Six analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $143.67.
Get Our Latest Report on EXR
About Extra Space Storage (Free Report)
Extra Space Storage (NYSE: EXR) is a real estate investment trust that specializes in the ownership, development and operation of self-storage properties. The company provides storage solutions for residential and commercial customers, offering a range of unit sizes, climate-controlled units and specialized options such as vehicle and boat storage. Extra Space Storage markets itself as a customer-focused operator, with online rentals, contactless move-in options and ancillary retail products like packing supplies and insurance to support tenant needs.
Its business model combines property ownership with third-party management and development activities.
Recommended Stories Five stocks we like better than Extra Space Storage Want to see what other hedge funds are holding EXR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Extra Space Storage Inc (NYSE:EXR – Free Report).
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, /PRNewswire/ -- Extra Space Storage Inc. (NYSE: EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a member of the S&P 500 index, announced operating results for the three months ended March 31, 2026.
Highlights for the three months ended March 31, 2026:
Achieved net income attributable to common stockholders of $1.14 per diluted share, representing a 10.9% decrease compared to the same period in the prior year, which included a gain from real estate assets sold in 2025. Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.97 per diluted share. FFO, excluding adjustments ("Core FFO"), was $2.04 per diluted share, representing a 2.0% increase compared to the same period in the prior year. Same-store revenue increased by 1.7% and same-store net operating income ("NOI") increased by 1.2% compared to the same period in the prior year. Reported ending same-store occupancy of 93.0% as of March 31, 2026, compared to 93.2% as of March 31, 2025. Acquired one operating store for $12.5 million. In conjunction with joint venture partners, completed the development of one store for a total cost of approximately $15.1 million, of which the Company invested $14.4 million. Added 84 stores (60 stores net) to the Company's third-party management platform. As of March 31, 2026, the Company managed 1,916 stores for third parties and 408 stores in unconsolidated joint ventures, for a total of 2,324 managed stores. Paid a quarterly dividend of $1.62 per share. Joe Margolis, CEO of the Company, stated: "We are off to a strong start to 2026, with Core FFO of $2.04 per share in the first quarter, up 2.0% year-over-year. 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%. Also, our external growth channels continue to perform well, with disciplined investments across acquisitions, bridge lending, and third-party management driving consistent returns."
FFO Per Share:
The following table (unaudited) outlines the Company's FFO and Core FFO for the three months ended March 31, 2026 and 2025. The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data):
For the Three Months Ended March 31,
2026
2025
(per share)1
(per share)1
Net income attributable to common stockholders
$ 240,977
$ 1.14
$ 270,875
$ 1.28
Impact of the difference in weighted average number of shares – diluted2
(0.04)
(0.06)
Adjustments:
Real estate depreciation
170,895
0.77
159,170
0.72
Amortization of intangibles
3,723
0.02
11,079
0.05
Gain on real estate assets held for sale and sold, net
—
—
(35,761)
(0.16)
Unconsolidated joint venture real estate depreciation and amortization
7,607
0.03
8,689
0.04
Equity in earnings of unconsolidated joint venture gain on sale of a joint
venture interest
(207)
—
—
—
Income allocated to Operating Partnership and other noncontrolling
interests
11,443
0.05
14,050
0.06
FFO
$ 434,438
$ 1.97
$ 428,102
$ 1.93
Adjustments:
Non-cash interest expense related to amortization of discount on unsecured
senior notes, net
12,555
0.05
11,313
0.05
Amortization of other intangibles related to the Life Storage Merger, net of
tax benefit
3,917
0.02
4,531
0.02
CORE FFO
$ 450,910
$ 2.04
$ 443,946
$ 2.00
Weighted average number of shares – diluted3
220,933,115
221,329,035
(1)
Per share amounts may not recalculate due to rounding.
(2)
This adjustment is to account for the difference between the number of shares used to calculate earnings per share and the number of shares used to calculate FFO per share. Earnings per share is calculated using the two-class method, which uses a lower number of shares than the calculation for FFO per share and Core FFO per share, which are calculated assuming full redemption of all OP units as described in note (3).
(3)
Extra Space Storage LP (the "Operating Partnership") has outstanding preferred and common Operating Partnership units ("OP units"). These OP units can be redeemed for cash or, at the Company's election, shares of the Company's common stock. Redemption of all OP units for common stock has been assumed for purposes of calculating the weighted average number of shares — diluted, as presented above. The computation of weighted average number of shares — diluted, for FFO per share and Core FFO per share also includes the effect of share-based compensation plans.
Operating Results and Same-Store Performance:
The following table (unaudited) outlines the Company's same-store performance for the three months ended March 31, 2026 and 2025 (amounts shown in thousands, except store count data)1:
For the Three Months Ended
March 31,
Percent
2026
2025
Change
Same-store property revenues2
Net rental income
$ 654,365
$ 642,993
1.8 %
Other income
24,244
24,556
(1.3) %
Total same-store revenues
$ 678,609
$ 667,549
1.7 %
Same-store operating expenses2
Payroll and benefits
$ 41,685
$ 41,072
1.5 %
Marketing
14,468
14,314
1.1 %
Office expense3
18,210
17,898
1.7 %
Property operating expense4
24,100
22,731
6.0 %
Repairs and maintenance
16,714
15,494
7.9 %
Property taxes
77,791
77,190
0.8 %
Insurance
8,902
7,928
12.3 %
Total same-store operating expenses
$ 201,870
$ 196,627
2.7 %
Same-store net operating income2
$ 476,739
$ 470,922
1.2 %
Same-store square foot occupancy as of quarter end
93.0 %
93.2 %
Average same-store square foot occupancy
92.7 %
93.1 %
Properties included in same-store5
1,870
1,870
(1)
A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income."
(2)
Same-store revenues, operating expenses and net operating income do not include tenant reinsurance revenue or expense.
(3)
Includes general office expenses, computer, bank fees, and credit card merchant fees.
(4)
Includes utilities and miscellaneous other store expenses.
(5)
On January 1, 2026, the Company updated the property count of the same-store pool from 1,804 to 1,871 stores. In the quarter ended March 31, 2026, one property was removed due to casualty loss, reducing the same-store pool to 1,870 stores.
Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three months ended March 31, 2026 and 2025 are provided in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
Investment and Property Management Activity:
The following table (unaudited) outlines the Company's acquisitions and developments that are closed, completed or under agreement (dollars in thousands).
Closed/Completed through
March 31, 2026
Closed /Completed or
Scheduled to Close/Complete
in 2026
Total 2026
Wholly-Owned Investment1
Stores
Price
Stores
Price
Stores
Price
Operating Stores2
1
$ 12,500
3
$ 9,650
4
$ 22,150
Buyout of JV Partners' Interest in
Operating Stores
—
—
1
4,080
1
4,080
EXR Investment in Wholly-
Owned Stores
1
12,500
4
13,730
5
26,230
Joint Venture Investment1
EXR Investment in JV Acquisition of
Operating Stores
—
—
—
—
—
—
EXR Investment in JV Development
and C of O
1
14,378
3
42,370
4
56,748
EXR Investment in Joint
Ventures
1
14,378
3
42,370
4
56,748
Total EXR Investment
2
$ 26,878
7
$ 56,100
9
$ 82,978
(1)
The locations of certificate of occupancy ("C of O") and development stores and joint venture ownership interest details are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
The projected developments and acquisitions under agreement described above are subject to customary closing conditions and no assurance can be provided that these developments and acquisitions will be completed on the terms described, or at all.
Property Sales:
During the three months ended March 31, 2026, the Company sold one property which was previously held for sale and currently has four properties remaining as held for sale.
Bridge Loans:
During the three months ended March 31, 2026, the Company originated $5.5 million in bridge loans and sold two bridge loans for $30.8 million. Outstanding balances of the Company's bridge loans were approximately $1.5 billion at the end of the quarter. The Company has an additional $102.0 million in bridge loans that have closed subsequent to quarter end or are under agreement to close in 2026. Additional details related to the Company's loan activity and balances held are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
Property Management:
As of March 31, 2026, the Company managed 1,916 stores for third-party owners and 408 stores owned in unconsolidated joint ventures, for a total of 2,324 stores under management. The Company is the largest self-storage management company in the United States.
Balance Sheet:
During the three months ended March 31, 2026, the Company repurchased 11,109 shares of common stock for $1.4 million at an average price of $129.80 per share using its stock repurchase program, and as of March 31, 2026, the Company had authorization to purchase up to $349.1 million under the program.
During the three months ended March 31, 2026, the Company did not issue any shares on its ATM program, and as of March 31, 2026, the Company had $800.0 million available for issuance.
As of March 31, 2026, the Company's commercial paper program had total capacity of $1.0 billion, with $850.0 million in outstanding issuances.
As of March 31, 2026, the Company's percentage of fixed-rate debt to total debt was 82.5%. Net of the impact of variable rate receivables, the effective fixed-rate debt to total debt was 92.9%. The weighted average interest rates of the Company's fixed and variable-rate debt were 4.2% and 4.6%, respectively. The combined weighted average interest rate was 4.3% with a weighted average maturity of approximately 4.3 years. Full details related to the Company's debt schedule are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
Dividends:
On March 31, 2026, the Company paid a first quarter common stock dividend of $1.62 per share to stockholders of record at the close of business on March 16, 2026.
Outlook:
The following table outlines the Company's Core FFO estimates and assumptions for the year ending December 31, 2026.
Ranges for 2026
Annual Assumptions
Ranges for 2026
Annual Assumptions
Notes
(April 28, 2026)
(February 19, 2026)
Low
High
Low
High
Core FFO
$8.05
$8.35
$8.05
$8.35
Dilution per share from C of O
and value add acquisitions
$0.18
$0.18
$0.18
$0.18
Same-store revenue growth
(0.50) %
1.50 %
(0.50) %
1.50 %
Same-store pool of 1,870 stores
Same-store expense growth
2.00 %
3.50 %
2.00 %
3.50 %
Same-store pool of 1,870 stores
Same-store NOI growth
(2.25) %
1.25 %
(2.25) %
1.25 %
Same-store pool of 1,870 stores
Weighted average one-month
SOFR
3.65 %
3.65 %
3.46 %
3.46 %
Net tenant reinsurance income
$289,000,000
$292,000,000
$289,000,000
$292,000,000
Management fees and other
income
$140,000,000
$141,500,000
$138,000,000
$139,500,000
Interest income
$149,500,000
$151,000,000
$149,500,000
$151,000,000
Includes interest from bridge
loans and dividends from
NexPoint preferred investment
General and administrative
expenses
$190,500,000
$192,500,000
$190,500,000
$192,500,000
Includes non-cash
compensation
Equity in earnings of real
estate ventures
$63,500,000
$64,500,000
$63,500,000
$64,500,000
Includes dividends from
SmartStop preferred
investments
Interest expense
$592,000,000
$597,000,000
$590,000,000
$595,000,000
Excludes non-cash interest
expense shown below
Non-cash interest expense
related to amortization of
discount on unsecured senior
notes, net
$42,000,000
$43,000,000
$42,000,000
$43,000,000
Amortization of debt mark-to-
market; excluded from Core
FFO
Income Tax Expense
$47,000,000
$48,000,000
$47,000,000
$48,000,000
Taxes associated with the
Company's taxable REIT
subsidiary
Acquisitions
$200,000,000
$200,000,000
$200,000,000
$200,000,000
Includes wholly-owned
acquisitions and the Company's
investment in joint ventures
Bridge loans outstanding
$1,475,000,000
$1,475,000,000
$1,475,000,000
$1,475,000,000
Represents the Company's
average retained loan balances
for the year
Weighted average share count
221,100,000
221,100,000
221,100,000
221,100,000
Assumes redemption of all OP
units for common stock
(1)
A reconciliation of net income outlook to same-store net operating income outlook is provided later in this release entitled "Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income." The reconciliation includes details related to same-store revenue and same-store expense outlooks. A reconciliation of net income per share outlook to funds from operations per share outlook is provided later in this release entitled "Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share."
FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company's estimates are forward-looking and based on management's view of current and future market conditions. The Company's actual results may differ materially from these estimates.
Supplemental Financial Information:
Supplemental unaudited financial information regarding the Company's performance can be found on the Company's website at www.extraspace.com. Under the "Company Info" navigation menu on the home page, click on "Investor Relations," then under the "Financials" navigation menu click on "Quarterly Results." This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets.
Conference Call:
The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, April 29, 2026, to discuss its financial results. Telephone participants may avoid any delays in joining the conference call by pre-registering for the call using the following link to receive a special dial-in number and PIN: https://events.q4inc.com/analyst/970879752?pwd=s88EVPAR
A live webcast of the call will also be available on the Company's investor relations website at https://ir.extraspace.com. To listen to the live webcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
A replay of the call will be available for 30 days on the investor relations section of the Company's website beginning at 5:00 p.m. Eastern Time on April 29, 2026.
Forward-Looking Statements:
Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include statements concerning the benefits of store acquisitions, developments, market conditions, our outlook and estimates for the year and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, the impact of broader economic trends on the storage industry, our plans or intentions relating to acquisitions and developments, and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," "outlook," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:
adverse changes in general economic conditions, the real estate industry and the markets in which we operate; potential liability for uninsured losses and environmental contamination; our ability to recover losses under our insurance policies; the impact of the regulatory environment as well as national, state and local laws and regulations, including, without limitation, those governing real estate investment trusts ("REITs"), tenant reinsurance and other aspects of our business, which could adversely affect our results; the effect of competition from new and existing stores or other storage alternatives, including increased or unanticipated competition for our properties, which could cause rents and occupancy rates to decline; failure to close pending acquisitions and developments on expected terms, or at all; risks associated with acquisitions, dispositions and development of properties, including increased development costs due to additional regulatory requirements related to climate change and other factors; reductions in asset valuations and related impairment charges; our reliance on information technologies, which are vulnerable to, among other things, attack from computer viruses and malware, hacking, cyberattacks and other unauthorized access or misuse, any of which could adversely affect our business and results; impacts from any outbreak of highly infectious or contagious diseases, including reduced demand for self-storage space and ancillary products and services such as tenant reinsurance, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results; economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan; our lack of sole decision-making authority with respect to our joint venture investments; disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow; availability of financing and capital, the levels of debt that we maintain and our credit ratings; changes in global financial markets, increases in interest rates and the impact of enacted and proposed U.S. tariffs on global economic conditions; the effect of recent or future changes to U.S. tax laws; and the failure to maintain our REIT status for U.S. federal income tax purposes. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
Definition of FFO:
FFO provides relevant and meaningful information about the Company's operating performance that is necessary, along with net income and cash flows, for an understanding of the Company's operating results. The Company believes FFO is a meaningful disclosure as a supplement to net income. Net income assumes that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company's real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of operating stores and impairment write downs of depreciable real estate assets, plus depreciation and amortization related to real estate and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. The Company believes that to further understand the Company's performance, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company's consolidated financial statements. FFO should not be considered a replacement of net income computed in accordance with GAAP.
For informational purposes, the Company also presents Core FFO. Core FFO excludes revenues and expenses not core to our operations and transaction costs. It also includes certain costs associated with the Life Storage Merger including non-cash interest related to the amortization of discount on unsecured senior notes and amortization of other intangibles, net of tax benefit. Although the Company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding revenues and expenses not core to our operations and non-cash interest charges, stockholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Core FFO by the Company should not be considered a replacement of the NAREIT definition of FFO. The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company's performance, as an alternative to net cash flow from operating activities as a measure of liquidity, or as an indicator of the Company's ability to make cash distributions.
Definition of Same-Store:
The Company's same-store pool for the periods presented consists of 1,870 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented. The Company considers a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to occupancy, rental revenue (growth), operating expenses (growth), net operating income (growth), etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments. Same-store results should not be used as a basis for future same-store performance or for the performance of the Company's stores as a whole.
About Extra Space Storage Inc.:
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of March 31, 2026, the Company owned and/or operated 4,344 self-storage stores in 42 states and Washington, D.C. The Company's stores comprise approximately 3.0 million units and approximately 335.6 million square feet of rentable space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.
Extra Space Storage Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share data)
March 31, 2026
December 31, 2025
(Unaudited)
Assets:
Real estate assets, net
$ 24,926,765
$ 25,004,350
Real estate assets - operating lease right-of-use assets
737,606
732,176
Investments in unconsolidated real estate entities
1,069,602
1,066,783
Investments in debt securities and notes receivable
1,758,534
1,806,526
Cash and cash equivalents
138,986
138,920
Other assets, net
467,877
515,291
Total assets
$ 29,099,370
$ 29,264,046
Liabilities, Noncontrolling Interests and Equity:
Secured notes payable, net
$ 1,076,443
$ 1,079,565
Unsecured term loans, net
1,495,012
1,494,659
Unsecured senior notes, net
9,446,570
9,432,427
Revolving lines of credit and commercial paper
1,152,500
1,224,000
Operating lease liabilities
769,688
761,106
Cash distributions in unconsolidated real estate ventures
74,288
73,701
Accounts payable and accrued expenses
374,814
357,583
Other liabilities
497,553
516,969
Total liabilities
14,886,868
14,940,010
Commitments and contingencies
Noncontrolling Interests and Equity:
Extra Space Storage Inc. stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued
or outstanding
—
—
Common stock, $0.01 par value, 500,000,000 shares authorized, 211,197,111
and 211,155,322 shares issued and outstanding at March 31, 2026 and
December 31, 2025, respectively
2,112
2,112
Additional paid-in capital
14,882,445
14,880,646
Accumulated other comprehensive income (loss)
314
(420)
Accumulated deficit
(1,552,391)
(1,449,172)
Total Extra Space Storage Inc. stockholders' equity
13,332,480
13,433,166
Noncontrolling interest represented by Preferred Operating Partnership units
47,827
53,827
Noncontrolling interests in Operating Partnership, net and other noncontrolling
interests
832,195
837,043
Total noncontrolling interests and equity
14,212,502
14,324,036
Total liabilities, noncontrolling interests and equity
$ 29,099,370
$ 29,264,046
Consolidated Statement of Operations for the Three Months Ended March 31, 2026 and 2025
(In thousands, except share and per share data) - Unaudited
For the Three Months Ended
March 31,
2026
2025
Revenues:
Property rental
$ 733,213
$ 704,380
Tenant reinsurance
89,119
84,712
Management fees and other income
33,695
30,905
Total revenues
856,027
819,997
Expenses:
Property operations
238,303
223,582
Tenant reinsurance
17,867
17,116
General and administrative
46,509
45,974
Depreciation and amortization
185,795
180,356
Total expenses
488,474
467,028
Gain on real estate assets held for sale and sold, net
—
35,761
Income from operations
367,553
388,730
Interest expense
(147,299)
(142,399)
Non-cash interest expense related to amortization of discount on unsecured senior
notes, net
(12,555)
(11,313)
Interest income
39,543
38,967
Income before equity in earnings and dividend income from unconsolidated real
estate entities and income tax expense
247,242
273,985
Equity in earnings and dividend income from unconsolidated real estate entities
15,760
19,931
Equity in earnings of unconsolidated real estate ventures - gain on sale of a joint
venture interest
207
—
Income tax expense
(10,789)
(8,991)
Net income
252,420
284,925
Net income allocated to Preferred Operating Partnership noncontrolling interests
(673)
(724)
Net income allocated to Operating Partnership and other noncontrolling interests
(10,770)
(13,326)
Net income attributable to common stockholders
$ 240,977
$ 270,875
Earnings per common share
Basic
$ 1.14
$ 1.28
Diluted
$ 1.14
$ 1.28
Weighted average number of shares
Basic
210,896,947
211,850,618
Diluted
220,322,872
212,052,742
Cash dividends paid per common share
$ 1.62
$ 1.62
Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three Months Ended
March 31, 2026 and 2025 (In thousands) - Unaudited
For the Three Months Ended
March 31,
2026
2025
Net Income
$ 252,420
$ 284,925
Adjusted to exclude:
Gain on real estate assets held for sale and sold, net
—
(35,761)
Equity in earnings and dividend income from unconsolidated real
estate entities
(15,760)
(19,931)
Equity in earnings of unconsolidated real estate ventures - gain on sale
of a joint venture interest
(207)
—
Interest expense
147,299
142,399
Non-cash interest expense related to amortization of discount on
unsecured senior notes, net
12,555
11,313
Depreciation and amortization
185,795
180,356
Income tax expense
10,789
8,991
General and administrative
46,509
45,974
Management fees, other income and interest income
(73,238)
(69,872)
Net tenant insurance
(71,252)
(67,596)
Non same-store rental revenue
(54,604)
(36,831)
Non same-store operating expense
36,433
26,955
Total same-store net operating income
$ 476,739
$ 470,922
Same-store rental revenues
678,609
667,549
Same-store operating expenses
201,870
196,627
Same-store net operating income
$ 476,739
$ 470,922
Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per
Share — for the Year Ending December 31, 2026 - Unaudited
For the Year Ending
December 31, 2026
Low End
High End
Net income attributable to common stockholders per diluted share
$ 4.30
$ 4.60
Income allocated to noncontrolling interest - Preferred Operating
Partnership and Operating Partnership
0.22
0.22
Net income attributable to common stockholders for diluted computations
4.52
4.82
Adjustments:
Real estate depreciation
3.12
3.12
Amortization of intangibles
0.05
0.05
Unconsolidated joint venture real estate depreciation and amortization
0.13
0.13
Funds from operations attributable to common stockholders
7.82
8.12
Adjustments:
Non-cash interest expense related to amortization of discount on unsecured
senior notes, net
0.19
0.19
Amortization of other intangibles related to the Life Storage Merger, net of
tax benefit
0.04
0.04
Core funds from operations attributable to common stockholders
$ 8.05
$ 8.35
Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending
December 31, 2026 (In thousands) - Unaudited
For the Year Ending December 31, 2026
Low
High
Net Income
$ 975,500
$ 1,059,000
Adjusted to exclude:
Equity in earnings of unconsolidated joint ventures
(63,500)
(64,500)
Interest expense
597,000
592,000
Non-cash interest expense related to amortization of discount on
unsecured senior notes, net
43,000
42,000
Depreciation and amortization
738,500
738,500
Income tax expense
48,000
47,000
General and administrative
192,500
190,500
Management fees and other income
(140,000)
(141,500)
Interest income
(149,500)
(151,000)
Net tenant reinsurance income
(289,000)
(292,000)
Non same-store rental revenues
(221,000)
(222,000)
Non same-store operating expenses
145,000
144,500
Total same-store net operating income1
$ 1,876,500
$ 1,942,500
Same-store rental revenues1
2,691,000
2,745,000
Same-store operating expenses1
814,500
802,500
Total same-store net operating income1
$ 1,876,500
$ 1,942,500
(1)
Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2026 same-store pool of 1,870 stores. On January 1, 2026, the Company updated the property count of the same-store pool from 1,804 to 1,871 stores. In the quarter ended March 31, 2026, one property was removed due to casualty loss, reducing the same-store pool to 1,870 stores.
Extra Space Storage (EXR - Free Report) came out with quarterly funds from operations (FFO) of $2.04 per share, beating the Zacks Consensus Estimate of $2.01 per share. This compares to FFO of $2 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +1.29%. A quarter ago, it was expected that this self-storage facility real estate investment trust would post FFO of $2.03 per share when it actually produced FFO of $2.08, delivering a surprise of +2.46%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
Extra Space Storage, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $856.03 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.38%. This compares to year-ago revenues of $820 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Extra Space Storage shares have added about 7.2% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for Extra Space Storage?While Extra Space Storage has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Extra Space Storage was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $2.07 on $865.38 million in revenues for the coming quarter and $8.24 on $3.44 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, SmartStop (SMA - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This real estate investment trust with a focus on self-storage facilities is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +17.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
SmartStop's revenues are expected to be $72.56 million, up 10.9% from the year-ago quarter.
Extra Space Storage (EXR - Free Report) reported $856.03 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 4.4%. EPS of $2.04 for the same period compares to $1.28 a year ago.
The reported revenue represents a surprise of +0.38% over the Zacks Consensus Estimate of $852.77 million. With the consensus EPS estimate being $2.01, the EPS surprise was +1.29%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Extra Space Storage performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Property rental: $733.21 million versus $726.66 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +4.1% change.Revenues- Management fees and other income: $33.7 million compared to the $33.21 million average estimate based on three analysts. The reported number represents a change of +9% year over year.Revenues- Tenant reinsurance: $89.12 million versus $89.55 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.Same-store rental revenues: $678.61 million compared to the $659.72 million average estimate based on two analysts. The reported number represents a change of +2.9% year over year.Net income (loss) per common share - Diluted: $1.14 versus the three-analyst average estimate of $1.14.Net operating income- Same store properties: $476.74 million compared to the $439.21 million average estimate based on two analysts.Equity in earnings and dividend income from unconsolidated real estate entities: $15.76 million versus $16.77 million estimated by two analysts on average.View all Key Company Metrics for Extra Space Storage here>>>
Shares of Extra Space Storage have returned +8.8% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways EXR reported Q1 core FFO of $2.04, beating estimates and rising 2% year over year.Extra Space Storage posted 4.5% revenue growth and 1.2% same-store NOI gains.EXR expanded its platform, managing 2,324 stores while maintaining the 2026 FFO outlook. Extra Space Storage Inc. (EXR - Free Report) reported first-quarter 2026 core funds from operations (FFO) per share of $2.04, beating the Zacks Consensus Estimate of $2.01. The figure increased 2% year over year from $2.00.
Results reflected a year-over-year increase in same-store net operating income (NOI).
Quarterly revenues came in at $856 million, above the Zacks Consensus Estimate of $852.8 million. The top line increased 4.5% year over year.
EXR’s First Quarter in DetailSame-store revenues jumped 1.7% year over year to $678.6 million, while same-store operating expenses rose 2.7% to $201.9 million. As a result, same-store NOI improved 1.2% year over year to $476.7 million.
Same-store square-foot occupancy was 93% as of March 31, 2026, compared with 93.2% as of March 31, 2025.
EXR’s Portfolio ActivityDuring the quarter, Extra Space Storage acquired one operating store for $12.5 million. In partnership with joint venture partners, the company also completed the development of one store for a total cost of around $15.1 million, of which EXR invested $14.4 million.
The company added 84 stores, or 60 stores net, to its third-party management platform. As of March 31, 2026, EXR managed 1,916 stores for third parties and 408 stores in unconsolidated joint ventures for a total of 2,324 managed stores.
Balance Sheet Position of EXRExtra Space Storage exited the quarter with $139.0 million of cash and cash equivalents, roughly in line with $138.9 million as of Dec. 31, 2025.
As of March 31, 2026, EXR’s fixed-rate debt represented 82.5% of total debt. Net of variable-rate receivables, effective fixed-rate debt was 92.9% of total debt. The combined weighted average interest rate was 4.3%, with a weighted average maturity of about 4.3 years.
In the first quarter, the company did not issue any shares under its at-the-market program and had $800 million available for issuance as of March 31, 2026.
During the quarter, the company repurchased 11,109 shares for $1.4 million at an average price of $129.80 per share. As of March 31, 2026, it had $349.1 million remaining under its repurchase authorization.
EXR’s 2026 GuidanceExtra Space Storage maintained its 2026 core FFO outlook in the range of $8.05-$8.35 per share. The guidance assumes same-store revenue growth of negative 0.50% to 1.50%, same-store expense growth of 2.00%-3.50% and same-store NOI growth of negative 2.25% to 1.25%.
EXR’s Zacks RankExtra Space Storage currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Earnings ReleasesWe now look forward to the earnings releases of other REITs like Federal Realty Investment Trust (FRT - Free Report) and OUTFRONT Media (OUT - Free Report) , slated to report on May 1 and May 7, respectively.
The Zacks Consensus Estimate for Federal Realty Investment Trust’s first-quarter 2026 FFO per share stands at $1.82, which indicates 7.1% growth year over year. FRT currently has a Zacks Rank #2 (Buy).
The consensus estimate for OUTFRONT Media’s first-quarter 2026 FFO per share stands at 28 cents, which calls for significant growth year over year. OUT currently has a Zacks Rank #2.
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.
Q1: 2026-04-28 Earnings SummaryEPS of $1.14 beats by $0.04
|
Revenue of
$733.21M
(4.09% Y/Y)
beats by $5.50M
Extra Space Storage Inc. (EXR) Q1 2026 Earnings Call April 29, 2026 1:00 PM EDT
Company Participants
Jared Conley - Vice President of Financial Planning Analysis
Joseph Margolis - CEO & Director
Jeff Norman - Executive VP & CFO
Conference Call Participants
Michael Goldsmith - UBS Investment Bank, Research Division
Samir Khanal - BofA Securities, Research Division
Brendan Lynch - Barclays Bank PLC, Research Division
Ravi Vaidya - Mizuho Securities USA LLC, Research Division
Eric Wolfe - Citigroup Inc., Research Division
Viktor Fediv - Scotiabank Global Banking and Markets, Research Division
Juan Sanabria - BMO Capital Markets Equity Research
Michael Griffin - Evercore ISI Institutional Equities, Research Division
Ronald Kamdem - Morgan Stanley, Research Division
Todd Thomas - KeyBanc Capital Markets Inc., Research Division
Salil Mehta - Green Street Advisors, LLC, Research Division
Caitlin Burrows - Goldman Sachs Group, Inc., Research Division
Eric Luebchow - Wells Fargo Securities, LLC, Research Division
Michael Mueller - JPMorgan Chase & Co, Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to Extra Space Storage Inc. Q1 2026 Earnings Call. [Operator Instructions]
I will now hand the conference over to Jared Conley, Vice President of Investor Relations. Please go ahead.
Jared Conley
Vice President of Financial Planning Analysis
Thanks, Karen. Welcome to Extra Space Storage's First Quarter 2026 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 contained in the company's latest filings with the SEC, which we encourage our listeners to review. Forward-looking statements represent management's estimates as of today, April
Extra Space Storage Inc (EXR) Q1 2026 Earnings Call Highlights: Strong Financial Performance Amid Competitive Market Extra Space Storage Inc (EXR) reports a 2% increase in core FFO and exceeds revenue projections, while navigating challenges in occupancy and acquisition markets. Summary
Core FFO: $2.04 per share, up 2% year-over-year.Same-Store Revenue Growth: 1.7%, exceeding internal projections.Same-Store Occupancy: 93%, compared to 93.2% in the prior year.Projected Acquisitions for 2026: $200 million, primarily in asset-light joint venture structures.Bridge Loan Program Balance: Approximately $1.5 billion in Q1 2026.Third-Party Managed Stores: Added 84 stores, net growth of 60 stores, total managed portfolio at 1,916 stores.Same-Store NOI Growth: Improved 110 basis points from 0.1% to 1.2%.Management Fee and Other Income Growth: Over 9% year-over-year.Net Tenant Insurance Growth: Over 5% year-over-year.Debt at Fixed Interest Rates: 83%, increasing to 93% on an effective basis.Weighted Average Interest Rate: 4.3%.Revolving Lines of Credit Capacity: Approximately $2 billion.Full Year 2026 Core FFO Guidance Range: $8.05 to $8.35 per share.
Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Extra Space Storage Inc EXR reported a 2% year-over-year increase in core FFO, reaching $2.04 per share, demonstrating strong financial performance.The company achieved positive same-store revenue growth of 1.7%, exceeding internal projections, indicating effective operational strategies.EXR's diversified external growth platform remains effective, with a projection of $200 million in total acquisitions for 2026, primarily through asset-light joint venture structures.The Bridge Loan Program maintained an average balance of approximately $1.5 billion, generating attractive interest income and expanding the management business.The third-party management platform added 84 stores in the quarter, with net growth of 60 stores, showcasing the value delivered through superior property performance and operational expertise. Negative Points Same-store occupancy slightly decreased to 93% from 93.2% in the prior year, indicating a minor decline in occupancy rates.Utilities and repairs and maintenance expenses ran higher than expected due to weather-related items, impacting overall expense control.New customer rate growth moderated from 5-6% in January and February to just over 1% in March, suggesting potential challenges in maintaining rate growth.The acquisition market remains competitive, with recent transactions priced at sub-5 initial cap rates, posing challenges for accretive acquisitions.The company faces uncertainties in the broader macroeconomic environment, including potential impacts from higher gas prices and inflation, which could affect future performance. Q & A Highlights Q: With positive move-in rates over the past year, does the moderation of these rates weigh on same-store revenue growth for the rest of the year?
A: Jeff Norman, CFO, explained that while new customer rates are important for driving same-store revenue growth, other revenue levers are also crucial. Although new customer rate growth moderated, occupancy improved, and the focus remains on driving total revenue rather than any specific lever.
Q: How would you characterize the current demand compared to last year as the leasing season begins?
A: Joseph Margolis, CEO, described demand as steady, with no significant improvement or degradation. The company's platform allows it to capture more than its share of market demand, maintaining high occupancy and rates.
Q: Can you provide insights on the competitive impact of PSA and NSA combining?
A: Joseph Margolis, CEO, noted that Extra Space Storage already competes with these stores and expects them to perform better under a unified platform. The company remains focused on improving its operations to stay competitive.
Q: What are your expectations for transaction volume and seller expectations in the market?
A: Joseph Margolis, CEO, mentioned that while there is market activity, recent transactions have been priced aggressively. The company maintains a modest acquisition guidance and focuses on accretive transactions, often through joint ventures.
Q: How is the same-store revenue range expected to perform for the full year, given the strong first quarter?
A: Jeff Norman, CFO, stated that while Q1 performance exceeded expectations, the company is cautious due to macroeconomic uncertainties. They plan to revisit guidance after the leasing season, despite positive momentum.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Extra Space Storage Inc. (the "Company") (NYSE: EXR) announced today that the Company's board of directors has declared a second quarter 2026 dividend of $1.62 per share on the common stock of the Company. The dividend is payable on June 30, 2026, to stockholders of record at the close of business on June 15, 2026.
About Extra Space Storage Inc.
Extra Space Storage Inc., headquartered in Salt Lake City, is a fully integrated, self-administered and self-managed real estate investment trust, and a member of the S&P 500. As of March 31, 2026, the Company owned and/or operated 4,344 self-storage properties, which comprise approximately 3.0 million units and approximately 335.6 million square feet of rentable storage space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.
For more information, please visit www.extraspace.com.
The Stability CaseThe first clock most analysis reads is coverage — and EXR’s coverage reads steady. Core FFO of $2.04 per share against a $1.62 dividend leaves a visible cushion, and the company reaffirmed its $8.05–$8.35 full-year core FFO outlook unchanged from February. Same-store revenue rose 1.7% and same-store NOI rose 1.2%, both ahead of internal projections, with ending same-store occupancy at 93.0%.
For a self-storage REIT carrying a debt load in the low-$13 billion range, that combination — high effective fixed-rate mix, a 4.3% blended cost locked from a lower-rate window, and a maturity wall that is staggered rather than concentrated — is the buffer working as designed. The coupon is being paid by a cost structure that has not yet been forced to reprice.
Where Caution Is WarrantedThe caution is not in the buffer’s current width — it is in what the buffer is measured against. A 4.3% weighted-average rate is a legacy number. It reflects debt issued into a funding environment that no longer exists at that price. Each maturity that rolls is a step toward the current cost of capital, not a continuation of the old one.
What Would Shift The NarrativeThe narrative shifts if the maturity schedule stops being a slow drift and becomes a visible step. The relevant question is not whether EXR can refinance — an investment-grade storage REIT with bond-market access and $2 billion of revolver capacity can. The question is the spread at which it clears, and how much of the current 4.3% blended rate survives each refinancing event.
What I’d WatchThis is not a prediction — structural assessment.
Sources: Extra Space Storage Q1 2026 earnings release and 8-K (filed April 2026); EXR Q1 2026 supplemental financial information (Investor Relations); EXR Q1 2026 earnings call transcript (April 2026); Moody’s and S&P issuer ratings as disclosed in company filings.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
Market News and Data brought to you by Benzinga APIs
, /PRNewswire/ -- At the Extra Space Storage Inc. (NYSE: EXR) ("Extra Space") 2026 Annual Meeting of Shareholders, on May 14, 2026, Crystal Call Maggelet and RJ Pittman were elected to the board of directors. The addition of these new board members reflects Extra Space's ongoing commitment to regular board refreshment and the integration of high-caliber leadership with expertise in real estate, retail operations strategy, and technological innovation.
New Board Members:
Crystal Call Maggelet brings extensive experience in managing large-scale, multi-unit retail properties and executing complex operational strategies. She serves as the CEO and Chairperson of FJ Management Inc., a diversified family business including Maverik, an 850+ c-store chain and two fuel transportation divisions, Big West Oil, and TAB Bank. Additionally, Maggelet founded the Crystal Inn hotel chain in 1993 and serves as its Managing Director. Her robust background in corporate governance includes previous board roles at Savage Services, Intermountain Health and Pilot Flying J. She holds a bachelor's degree in Business Administration from Pepperdine University and earned a Master of Business Administration from Harvard Business School.
RJ Pittman joins the team as a premier technology pioneer with a proven track record of leading digital transformation and advancing artificial intelligence, machine learning, and data science. Pittman served as the CEO and Chairman of the Board of Matterport, a spatial data company and technology platform in real estate, from 2018 to 2025. Prior to Matterport, he served as eBay's first Chief Product Officer and held senior roles at Apple and Google where he led international e-commerce platforms and web search properties. He holds a Bachelor of Science in Computer Engineering from the University of Michigan and a Master of Science in Engineering-Economic Systems from Stanford.
Ms. Maggelet will serve as a member of the Nominating, Governance, & Corporate Responsibility Committee and Mr. Pittman will serve as a member of the Audit Committee. Full bios for both directors are available at ir.extraspace.com.
"We are thrilled to welcome Crystal and RJ to our Board of Directors," said Ken Woolley, Chairman of the Extra Space Board. "Crystal's execution in multi-unit retail operations and real estate, combined with RJ's leadership in AI strategy and technology driven customer experiences in and outside of the real estate sector, provide immense value to our shareholders. We look forward to their insights sharpening our competitive edge as we continue to lead the industry in technology and long-term growth. We also want to acknowledge and thank Spencer Kirk and Diane Olmstead for their dedicated service on our board."
With these new board members, Extra Space continues to maintain a highly independent board, with diverse skill sets and significant industry experience. Nine out of ten directors on the board are independent. Five of the ten directors will have joined the board in the last five years, demonstrating a healthy balance of tenure and fresh oversight. Mr. Kirk will remain as a special advisor to the board.
About Extra Space Storage Inc.:
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of March 31, 2026, the Company owned and/or operated 4,344 self storage stores in 42 states and Washington, D.C. The Company's stores comprise approximately 3.0 million units and approximately 335.6 million square feet of rentable space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage, and business storage. It is the largest operator of self storage properties in the United States.
Extra Space Storage remains a 'Hold' with a $107/share price target, reflecting muted growth prospects and valuation concerns. Expense growth outpacing revenue—6% versus 1.7% YoY—undermines AFFO expansion and challenges bullish expectations for EXR. Occupancy declines, regulatory scrutiny, and limited pricing power signal organic growth headwinds for the company through 2026-2028E.
Let me take you back to April 2001 for a second. Because that year brought a key turning point for income investors.
I’m talking about the launch of the SPDR Dow Jones REIT ETF (RWR). The fund rolled down the skids with a simple mission: Give investors an easy way to buy a diversified basket of real estate investment trusts (a.k.a. REITs) in one low-cost index fund.
It was exciting because, back then, REITs had outperformed stocks when their high payouts were reinvested. And their dividend yields were much higher than those of the typical S&P 500 name, too.
Backed by reliable rents, as well as the constant need for space to store and sell things (for businesses), as well as places to live, work and have fun (for individuals), the sense was that demand for real estate would never end.
As Mark Twain once said, “Buy land—they aren’t making any more of it!”
How have things played out since the fund’s launch? Pretty much as they had been before, with REITs continuing to outperform (even through the 2008 mess).
That is, until around 2020, when the pandemic threw them for a loop.
REITs have been lagging ever since, but the fact of the matter is, this underperformance has dragged on for far too long. With the economy and corporate profits growing strongly, I see real-estate demand outpacing the fear around the sector (including around interest rates, which we’ll talk about more in a moment) in the coming months and years.
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Let’s get into why I feel that’s the case now. I’ll also show you a 7.9%-paying REIT-focused closed-end fund (CEF) that’s been unfairly caught in the downdraft (as well as another 12.9% payer to avoid).
RWR Total Returns
Ycharts
As you can see above RWR (in orange) did well against the S&P 500 for a long time. From 2001 to 2020, the ETF’s annualized total return beat that of stocks: 8.5% versus 7.7% for the S&P 500 benchmark State Street SPDR S&P 500 ETF (SPY).
Also keep in mind that this period includes the subprime-mortgage crisis. RWR fell (and briefly underperformed SPY) in that time, but recovered fast and was back in the black before the S&P 500 was.
REITs 2009
Ycharts
In fact, on May 26, 2009 (shown at the right side of this chart), while the US was still in the throes of the Great Recession, RWR, in orange, was posting a positive return while SPY (in purple) was negative.
One thing made this possible: dividends.
At this time, RWR’s yield was a little higher than SPY’s: 2.3% versus 1.9%. It climbed from there as RWR’s price fell, since yields and prices move in opposite directions. That cash distribution was a real benefit to investors in those stressful times.
But as we saw a couple charts ago, in 2020, REITs started underperforming, a streak that continues today. Why?
Stocks are part of the reason: Since the pandemic, they’ve been roaring, up 14% per year on average over the last five years, much higher than their historical 10% annualized gain. This is great for stock investors, of course, but it does raise the odds of a correction, so we still want to be sure we’re well-diversified.
REITs post-COVID
Ycharts
Stocks’ strong performance is only one side of this story, though. On the other, REITs have seen a 5.7% annualized gain over the last five years, far lower than when they were beating stocks. That’s unusual, and it’s particularly strange that it’s lasted so long.
As a result, REITs—and in particular REIT-focused CEFs—are now providing a nice opportunity to diversify some of the profits many investors have made in stocks.
An Oversold High-Yield REIT Fund With a Solid Monthly PayoutOne strong REIT fund to consider is the Cohen & Steers REIT and Preferred Income Fund (RNP), a CEF that yields 7.9% today and, yes, pays monthly, too.
Over the last five years, RNP has returned around 30%—so right around the index fund’s performance. But the key difference has been that the bulk of that return has come in cash. That’s thanks to the fund’s steady monthly payout, which has not only held steady but grown in the last five years, with a special dividend thrown in:
RNP Dividend History
Dividend Channel
RNP, as the name suggests, holds REITs and preferred shares, the latter of which trade like stocks, but in a narrow range, with fixed dividends. As such, they’re best thought of as a kind of stock-bond hybrid. Those make up around half of the portfolio and bring additional stability (as well as income).
On the REIT side, which is nearly all of the other half of RNP’s holdings (there’s about 1% in cash), we’ve got a diversified set of names. They include healthcare REITs, such as Welltower (WELL); data-center and telecom firms like Digital Realty Trust (DLR) and American Tower (AMT); as well as self-storage, in the form of Extra Space Storage (EXR); housing, shopping-center REITs and more.
Both REITs and preferreds are sensitive to higher rates, which is part of the reason why the fund sports a 5.7% discount to net asset value (NAV, or the value of its underlying holdings) as I write this.
That’s far more than enough to price in today’s “sticky” rates, which are largely the result of the Iran situation. Until that’s resolved, this fund is overly marked down, especially when you consider that it’s traded at premiums many times in the past, including in 2019, 2023 and as recently as last year.
This High-Yield REIT Is Always on SaleWith all that said, not all REIT CEFs are attractive right now. Take the Principal Real Estate Income Fund (PGZ), which has a 12.2% discount and a 12.9% yield. Unfortunately, that discount never closes.
PGZ Discount
Ycharts
There are plenty of reasons for this, but past performance is likely the biggest thing keeping investors away: Over the last five years, PGZ has only returned around 11%, or about a third of what RNP and RWR have delivered.
A few bad years can be a sign to buy into a fund, but when that performance trails this badly and management hasn’t changed its strategy much in response, the fund is best avoided. That’s true no matter what the discount, or dividend yield, might say.
Michael Foster is the Lead Research Analyst for Contrarian Outlook. For more great retirement income ideas, click here for our latest report “Indestructible Income: 5 Bargain Funds with Steady 10% Dividends.”
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Vornado (VNO) and Extra Space Storage (EXR). But which of these two stocks offers value investors a better bang for their buck right now?
The aging of America continues to be an investable theme. And recent survey data from AARP gives investors a hint on where to direct their capital.
According to AARP, about 59 million Americans provided care for an adult family member, neighbor, or friend in 2024. That totaled 49.5 billion hours of care at a cost of around $1.01 trillion in annual economic value—a figure that exceeds the total for federal, state, and local Medicaid spending.
This is a complex reality for caregivers in the “sandwich generation” who are in their 40s to early 60s. In many cases, they are balancing raising a family of their own, caring for elderly loved ones, and managing careers.
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But in many cases, informal caregiving remains the more affordable alternative to institutional or assisted living arrangements. These options often require Medicaid approval for those who qualify based on income and asset limits, or they result in significant out-of-pocket expenses for those who don't.
The U.S. Census Bureau estimates the 65-and-older population will nearly double by 2060. This is why investors should consider healthcare stocks with business models that provide relief for caregivers.
Omega Healthcare Investors Delivers Income as Senior Housing Demand ReboundsOmega Healthcare Investors Today
OHI
Omega Healthcare Investors
$45.77 +0.49 (+1.08%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$35.70▼
$49.33Dividend Yield5.86%
P/E Ratio22.11
Price Target$49.00
Omega Healthcare Investors NYSE: OHI is a real estate investment trust (REIT) that owns and manages healthcare-related facilities, including skilled nursing facilities and assisted living communities. It acquires and leases these properties under triple net agreements, in turn providing investors with stable, inflation-protected cash flow.
According to the National Investment Center for Seniors Housing & Care, senior housing, assisted living, and independent living occupancy rates are nearly back to pre-pandemic levels, suggesting that demand for those services is strengthening.
After a run-up of almost 25% in the last 12 months, OHI stock looks to have much of that growth already priced in. However, a moderate pullback in the past month helps strengthen the buy case. Analysts have been raising their price targets, but the consensus price target of $48 is only slightly higher than the OHI price as of this writing.
Many investors turn to REITs because of their reliable dividend payments. In the case of Omega Healthcare, the dividend yield is 5.8% and looks sustainable based on future earnings and cash flow estimates.
Addus HomeCare Is Positioned for Growth as In-Home Care Gains TractionAddus HomeCare Today
$93.28 +0.24 (+0.26%)
As of 04:00 PM Eastern
52-Week Range$87.95▼
$124.43P/E Ratio17.24
Price Target$131.00
Addus HomeCare NASDAQ: ADUS leans directly into the current need for home health care. Addus is a leading provider of home- and community-based care services that operates through a network of company-owned and franchise locations in the United States.
Shares of ADUS are down about 7% over the past year, but that might be a function of the company’s ongoing battle with states to secure Medicaid dollars. Addus has argued that personal care can be materially less expensive than nursing home placement, thereby conserving Medicaid dollars.
To that end, the company recently noted that Medicaid redeterminations are easing, which can provide a tailwind.
Addus posted year-over-year revenue and earnings growth in the last several quarters. That’s expected to continue, with analysts forecasting over 16% earnings growth in the next 12 months.
Despite a solid earnings report in November, ADUS stock sold off sharply and is trading near its 52-week low. That’s where investors may have an opportunity. Analysts are bullish with a consensus price target that is more than 40% higher than recent prices. The stock currently receives a Moderate Buy rating.
Savaria Capitalizes on Aging-in-Place Trend With Accessibility SolutionsSavaria Today
$20.83 -0.11 (-0.53%)
As of 03:00 PM Eastern
52-Week Range$14.23▼
$22.78Dividend Yield0.60%
P/E Ratio94.68
Savaria OTCMKTS: SISXF straddles the line between industrial stocks and medical stocks. The company sells home-accessibility products (e.g., stairlifts, elevators, and platform lifts) that support the aging-in-place industry.
Savaria’s products are on the front line of the home healthcare movement. Many family members or caregivers will initially look to make modifications to a loved one’s home before taking steps to find alternate living or care arrangements.
This trend is reflected in the company's revenue and earnings estimates, which partially explain why SISXF is up more than 90% over the past 12 months. The Canada-based company doesn’t receive heavy analyst coverage, but MarketBeat's data shows a Buy rating.
Adding to the appeal of SISXF is its monthly dividend, which paid out 4.67 cents per share in March 2026. That makes this stock a savvy choice for investors looking for a reliable compounder with the potential for future growth.
Should You Invest $1,000 in Savaria Right Now?Before you consider Savaria, you'll want to hear this.
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Earned income has a ceiling. But passive income from dividends operates differently: Once established, cash flows in regardless of effort, and the only limit on it is how much you invest in the stocks of companies providing that yield. That independence is why income-focused investors treat dividend portfolios as core financial assets.
And as far as passive income sources go, high-yield dividend stocks offer the instant liquidity that income properties and private credit cannot. You can add to a position Tuesday morning or exit by Thursday afternoon. For investors navigating persistent uncertainty, that combination of yield and flexibility is hard to replicate.
We screened our 24/7 Wall St. dividend equity research database for stocks paying massive dividends. Combined, these three companies can generate approximately $4,335 annually in passive income if you invest $28,333 in each stock.
Omega Healthcare Investors Stock #1: Omega Healthcare Investors (NYSE:OHI | OHI Price Prediction) Yield: 6% Shares for $28,333: ~623 shares Annual Passive Income: ~$1,700 Omega Healthcare Investors is a healthcare REIT focused on skilled nursing and assisted living facilities. It owns real estate, leases it to operators under long-term triple-net agreements, and collects rent. The yield is high because REIT structure requires distributing at least 90% of taxable income to shareholders, producing elevated payout rates relative to conventional equities.
Omega’s fundamentals are strengthening. FAD per share grew 8% to $2.96 in 2025, and management issued 2026 adjusted FFO guidance of $3.15 to $3.25 per diluted share. The balance sheet is in its best shape in years: Leverage was reduced to the lowest level in company history after repaying $1.27 billion in debt during Q4 2025. Operator coverage sits at 2x EBITDARM on a trailing 12-month basis, and portfolio occupancy reached 83% for the twelve months ended September 30, 2025. The quarterly dividend of 67 cents per share has been maintained consistently since at least 2020, and institutional investors hold approximately 82% of shares outstanding.
Peoples Bancorp Stock #2: Peoples Bancorp (NASDAQ:PEBO) Yield: 5% Shares for $28,333: ~833 shares Annual Passive Income: ~$1,416.65 Peoples Bancorp is a regional bank headquartered in Marietta, Ohio, operating 144 locations and 126 full-service branches across Ohio, West Virginia, Kentucky, Virginia, DC, and Maryland. It generates income through commercial and retail lending, trust and investment services, insurance, and lease financing. The yield is elevated because the stock trades at modest valuation despite consistent profitability.
Peoples Bancorp raised its quarterly dividend from 40 cents to 41 cents per share starting in May 2025, a level sustained through February. The payout ratio of 46% in Q4 2025 leaves room for dividend sustainability. Management guided for net interest margin of 4% to 4% for full year 2026 alongside loan growth of 3% to 5%. CEO Tyler Wilcox stated: “I am optimistic about our projected results for 2026, and we will continue to look for opportunities to become more efficient and position ourselves to drive increasing shareholder value.”
Provident Financial Services Stock #3: Provident Financial Services (NYSE:PFS) Yield: 4% Shares for $28,333: ~1,279 shares Annual Passive Income: ~$1,133.32 Provident Financial Services is the banking holding company for Provident Bank, serving individuals, families, and businesses across the New York and New Jersey metro area. Its business spans commercial banking, wealth management through Beacon Trust Company, and insurance through Provident Protection Plus. The bank completed its acquisition of Lakeland Bancorp in May 2024, driving record net interest income in each of the last three quarters.
Provident posted Q4 2025 EPS of 64 cents, beating the consensus estimate of 56 cents by 14%, with net interest income of $197.41 million setting a new record. Non-performing loans fell 22% sequentially to 0.40% of total loans, and net charge-offs came in at an annualized 9 basis points. The quarterly dividend of $0.24 per share has been maintained consistently since 2021, and institutional investors hold approximately 74% of shares outstanding. The loan pipeline has held above $2.5 billion for four consecutive quarters, supporting forward earnings visibility that underpins the dividend.
Dividend portfolios offer frictionless rebalancing that real estate cannot. Reinvesting distributions into whichever position offers the best forward yield compounds the income base without transaction costs, renovation headaches, or tenant negotiations. Over time, that reinvestment flywheel builds a cash flow stream that grows faster than underlying positions alone would suggest.
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Hudson Pacific Properties (HPP) and Omega Healthcare Investors (OHI). But which of these two stocks offers value investors a better bang for their buck right now?
CPC Advisors LLC acquired a new stake in shares of Omega Healthcare Investors, Inc. (NYSE:OHI – Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 68,790 shares of the real estate investment trust’s stock, valued at approximately $3,050,000.
Several other hedge funds and other institutional investors have also recently modified their holdings of the company. Universal Beteiligungs und Servicegesellschaft mbH increased its holdings in shares of Omega Healthcare Investors by 12.6% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 439,597 shares of the real estate investment trust’s stock valued at $19,492,000 after acquiring an additional 49,115 shares in the last quarter. Optas LLC bought a new stake in Omega Healthcare Investors during the fourth quarter worth $398,000. SageGuard Financial Group LLC bought a new stake in Omega Healthcare Investors during the fourth quarter worth $1,684,000. Evergreen Capital Management LLC grew its holdings in Omega Healthcare Investors by 201.2% during the fourth quarter. Evergreen Capital Management LLC now owns 25,778 shares of the real estate investment trust’s stock worth $1,143,000 after buying an additional 17,219 shares in the last quarter. Finally, Checchi Capital Advisers LLC grew its holdings in Omega Healthcare Investors by 3.3% during the fourth quarter. Checchi Capital Advisers LLC now owns 8,184 shares of the real estate investment trust’s stock worth $363,000 after buying an additional 262 shares in the last quarter. Institutional investors own 65.25% of the company’s stock.
Wall Street Analyst Weigh In OHI has been the subject of several recent research reports. UBS Group reiterated a “buy” rating and set a $52.00 price target on shares of Omega Healthcare Investors in a report on Friday, February 6th. Scotiabank upped their price target on Omega Healthcare Investors from $45.00 to $48.00 and gave the stock a “sector perform” rating in a report on Monday, March 2nd. Truist Financial upped their price target on Omega Healthcare Investors from $46.00 to $48.00 and gave the stock a “hold” rating in a report on Thursday, March 5th. Bank of America reiterated an “underperform” rating and set a $46.00 price target (down from $52.00) on shares of Omega Healthcare Investors in a report on Tuesday, April 14th. Finally, Royal Bank Of Canada upped their price target on Omega Healthcare Investors from $44.00 to $47.00 and gave the stock a “sector perform” rating in a report on Tuesday, February 10th. Six equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $47.83.
Get Our Latest Stock Report on Omega Healthcare Investors
Omega Healthcare Investors Stock Down 1.2% Shares of NYSE:OHI opened at $45.95 on Wednesday. The company has a market capitalization of $13.58 billion, a PE ratio of 23.81, a price-to-earnings-growth ratio of 2.07 and a beta of 0.59. The company has a debt-to-equity ratio of 0.78, a current ratio of 5.04 and a quick ratio of 5.04. The business has a fifty day moving average price of $46.46 and a two-hundred day moving average price of $44.56. Omega Healthcare Investors, Inc. has a 1 year low of $35.08 and a 1 year high of $49.14.
Omega Healthcare Investors Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Shareholders of record on Monday, February 9th were paid a $0.67 dividend. This represents a $2.68 dividend on an annualized basis and a yield of 5.8%. The ex-dividend date was Monday, February 9th. Omega Healthcare Investors’s dividend payout ratio is 138.86%.
Omega Healthcare Investors Profile (Free Report)
Omega Healthcare Investors, Inc is a real estate investment trust (REIT) that specializes in the ownership and management of healthcare-related facilities. The company’s core business involves acquiring and leasing long-term care properties, including skilled nursing facilities and assisted living communities, under net lease agreements. Its portfolio is designed to provide stable, inflation-protected cash flows from operators responsible for day-to-day property management.
Founded in 1992 and headquartered in Hunt Valley, Maryland, Omega Healthcare Investors has grown its holdings to encompass hundreds of facilities across the United States, with a smaller presence in select international markets.
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HUNT VALLEY, Md.--(BUSINESS WIRE)--Omega Healthcare Investors, Inc. (NYSE:OHI) today announced that the Company’s Board of Directors declared a cash dividend of $0.67 per share on its common stock. The dividend is payable Friday, May 15, 2026, to common stockholders of record as of the close of business on Monday, May 4, 2026.
Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the US, as well as in the UK and Canada. More information on Omega is available at www.omegahealthcare.com.
Cwm LLC lifted its stake in shares of Omega Healthcare Investors, Inc. (NYSE:OHI – Free Report) by 32.2% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 73,716 shares of the real estate investment trust’s stock after purchasing an additional 17,966 shares during the quarter. Cwm LLC’s holdings in Omega Healthcare Investors were worth $3,269,000 at the end of the most recent reporting period.
Several other institutional investors have also bought and sold shares of the stock. GeoWealth Management LLC raised its position in shares of Omega Healthcare Investors by 1.3% during the 3rd quarter. GeoWealth Management LLC now owns 18,850 shares of the real estate investment trust’s stock worth $796,000 after buying an additional 239 shares in the last quarter. Smartleaf Asset Management LLC lifted its stake in shares of Omega Healthcare Investors by 40.9% in the 2nd quarter. Smartleaf Asset Management LLC now owns 924 shares of the real estate investment trust’s stock worth $34,000 after acquiring an additional 268 shares during the period. DAVENPORT & Co LLC boosted its holdings in shares of Omega Healthcare Investors by 2.1% in the fourth quarter. DAVENPORT & Co LLC now owns 13,035 shares of the real estate investment trust’s stock valued at $578,000 after acquiring an additional 272 shares in the last quarter. Guggenheim Capital LLC increased its stake in shares of Omega Healthcare Investors by 1.0% during the second quarter. Guggenheim Capital LLC now owns 29,398 shares of the real estate investment trust’s stock valued at $1,077,000 after acquiring an additional 280 shares during the period. Finally, CI Investments Inc. increased its stake in shares of Omega Healthcare Investors by 19.8% during the third quarter. CI Investments Inc. now owns 1,715 shares of the real estate investment trust’s stock valued at $72,000 after acquiring an additional 283 shares during the period. Institutional investors and hedge funds own 65.25% of the company’s stock.
Omega Healthcare Investors Price Performance OHI opened at $46.36 on Friday. The firm has a market capitalization of $13.81 billion, a P/E ratio of 24.02, a PEG ratio of 2.00 and a beta of 0.59. The stock has a fifty day moving average of $46.41 and a 200-day moving average of $44.58. The company has a quick ratio of 5.04, a current ratio of 5.04 and a debt-to-equity ratio of 0.78. Omega Healthcare Investors, Inc. has a 12-month low of $35.08 and a 12-month high of $49.14.
Omega Healthcare Investors Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Monday, May 4th will be paid a $0.67 dividend. The ex-dividend date of this dividend is Monday, May 4th. This represents a $2.68 dividend on an annualized basis and a dividend yield of 5.8%. Omega Healthcare Investors’s dividend payout ratio is 138.86%.
Analyst Ratings Changes Several analysts have recently weighed in on the company. Royal Bank Of Canada upped their price objective on Omega Healthcare Investors from $44.00 to $47.00 and gave the company a “sector perform” rating in a report on Tuesday, February 10th. Wells Fargo & Company lifted their target price on Omega Healthcare Investors from $45.00 to $47.00 and gave the stock an “equal weight” rating in a report on Thursday, March 26th. UBS Group reiterated a “buy” rating and issued a $52.00 price target on shares of Omega Healthcare Investors in a research report on Friday, February 6th. Scotiabank upped their price target on shares of Omega Healthcare Investors from $45.00 to $48.00 and gave the company a “sector perform” rating in a report on Monday, March 2nd. Finally, Bank of America restated an “underperform” rating and set a $46.00 price objective (down from $52.00) on shares of Omega Healthcare Investors in a research report on Tuesday, April 14th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $47.83.
Read Our Latest Stock Analysis on OHI
Omega Healthcare Investors Profile (Free Report)
Omega Healthcare Investors, Inc is a real estate investment trust (REIT) that specializes in the ownership and management of healthcare-related facilities. The company’s core business involves acquiring and leasing long-term care properties, including skilled nursing facilities and assisted living communities, under net lease agreements. Its portfolio is designed to provide stable, inflation-protected cash flows from operators responsible for day-to-day property management.
Founded in 1992 and headquartered in Hunt Valley, Maryland, Omega Healthcare Investors has grown its holdings to encompass hundreds of facilities across the United States, with a smaller presence in select international markets.
Recommended Stories Five stocks we like better than Omega Healthcare Investors Want to see what other hedge funds are holding OHI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Omega Healthcare Investors, Inc. (NYSE:OHI – Free Report).
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Evergreen Capital Management LLC boosted its holdings in Omega Healthcare Investors, Inc. (NYSE:OHI – Free Report) by 201.2% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 25,778 shares of the real estate investment trust’s stock after acquiring an additional 17,219 shares during the quarter. Evergreen Capital Management LLC’s holdings in Omega Healthcare Investors were worth $1,143,000 at the end of the most recent quarter.
Several other large investors have also recently added to or reduced their stakes in OHI. Royal Bank of Canada increased its position in Omega Healthcare Investors by 29.4% in the 1st quarter. Royal Bank of Canada now owns 144,339 shares of the real estate investment trust’s stock valued at $5,496,000 after acquiring an additional 32,798 shares during the period. Focus Partners Wealth increased its position in Omega Healthcare Investors by 3.1% in the 1st quarter. Focus Partners Wealth now owns 19,862 shares of the real estate investment trust’s stock valued at $756,000 after acquiring an additional 597 shares during the period. Sivia Capital Partners LLC acquired a new stake in Omega Healthcare Investors in the 2nd quarter valued at approximately $257,000. Guggenheim Capital LLC increased its position in Omega Healthcare Investors by 1.0% in the 2nd quarter. Guggenheim Capital LLC now owns 29,398 shares of the real estate investment trust’s stock valued at $1,077,000 after acquiring an additional 280 shares during the period. Finally, First Trust Advisors LP increased its position in Omega Healthcare Investors by 32.8% in the 2nd quarter. First Trust Advisors LP now owns 193,099 shares of the real estate investment trust’s stock valued at $7,077,000 after acquiring an additional 47,649 shares during the period. 65.25% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth Several research firms recently commented on OHI. Royal Bank Of Canada raised their target price on Omega Healthcare Investors from $44.00 to $47.00 and gave the company a “sector perform” rating in a research report on Tuesday, February 10th. Wells Fargo & Company raised their target price on Omega Healthcare Investors from $45.00 to $47.00 and gave the company an “equal weight” rating in a research report on Thursday, March 26th. Bank of America restated an “underperform” rating and issued a $46.00 target price (down from $52.00) on shares of Omega Healthcare Investors in a research report on Tuesday, April 14th. Weiss Ratings upgraded Omega Healthcare Investors from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Tuesday. Finally, The Goldman Sachs Group started coverage on Omega Healthcare Investors in a research note on Friday, January 9th. They set a “buy” rating and a $54.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $47.83.
Get Our Latest Stock Analysis on Omega Healthcare Investors
Omega Healthcare Investors Price Performance NYSE:OHI opened at $46.36 on Friday. The business’s 50-day moving average price is $46.41 and its 200 day moving average price is $44.58. The firm has a market cap of $13.81 billion, a P/E ratio of 24.02, a PEG ratio of 2.00 and a beta of 0.59. Omega Healthcare Investors, Inc. has a 52-week low of $35.08 and a 52-week high of $49.14. The company has a quick ratio of 5.04, a current ratio of 5.04 and a debt-to-equity ratio of 0.78.
Omega Healthcare Investors Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Monday, May 4th will be issued a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a yield of 5.8%. The ex-dividend date of this dividend is Monday, May 4th. Omega Healthcare Investors’s payout ratio is presently 138.86%.
Omega Healthcare Investors Company Profile (Free Report)
Omega Healthcare Investors, Inc is a real estate investment trust (REIT) that specializes in the ownership and management of healthcare-related facilities. The company’s core business involves acquiring and leasing long-term care properties, including skilled nursing facilities and assisted living communities, under net lease agreements. Its portfolio is designed to provide stable, inflation-protected cash flows from operators responsible for day-to-day property management.
Founded in 1992 and headquartered in Hunt Valley, Maryland, Omega Healthcare Investors has grown its holdings to encompass hundreds of facilities across the United States, with a smaller presence in select international markets.
Recommended Stories Five stocks we like better than Omega Healthcare Investors Want to see what other hedge funds are holding OHI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Omega Healthcare Investors, Inc. (NYSE:OHI – Free Report).
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Advisors Capital Management LLC boosted its holdings in Omega Healthcare Investors, Inc. (NYSE:OHI – Free Report) by 2.0% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 936,433 shares of the real estate investment trust’s stock after purchasing an additional 18,342 shares during the period. Advisors Capital Management LLC owned about 0.32% of Omega Healthcare Investors worth $41,521,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors have also bought and sold shares of the company. Smartleaf Asset Management LLC lifted its holdings in Omega Healthcare Investors by 40.9% during the second quarter. Smartleaf Asset Management LLC now owns 924 shares of the real estate investment trust’s stock valued at $34,000 after purchasing an additional 268 shares during the last quarter. V Square Quantitative Management LLC purchased a new stake in Omega Healthcare Investors during the fourth quarter valued at about $47,000. True Wealth Design LLC lifted its holdings in Omega Healthcare Investors by 273.5% during the third quarter. True Wealth Design LLC now owns 1,113 shares of the real estate investment trust’s stock valued at $47,000 after purchasing an additional 815 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. lifted its holdings in Omega Healthcare Investors by 823.3% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,228 shares of the real estate investment trust’s stock valued at $54,000 after purchasing an additional 1,095 shares during the last quarter. Finally, SJS Investment Consulting Inc. lifted its holdings in Omega Healthcare Investors by 1,159.0% during the third quarter. SJS Investment Consulting Inc. now owns 1,259 shares of the real estate investment trust’s stock valued at $53,000 after purchasing an additional 1,159 shares during the last quarter. Hedge funds and other institutional investors own 65.25% of the company’s stock.
Analysts Set New Price Targets A number of analysts recently issued reports on the company. Bank of America reiterated an “underperform” rating and set a $46.00 price objective (down from $52.00) on shares of Omega Healthcare Investors in a research note on Tuesday, April 14th. Weiss Ratings upgraded Omega Healthcare Investors from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Tuesday. UBS Group reiterated a “buy” rating and set a $52.00 price objective on shares of Omega Healthcare Investors in a research note on Friday, February 6th. Cantor Fitzgerald boosted their price objective on Omega Healthcare Investors from $50.00 to $52.00 and gave the company an “overweight” rating in a research note on Tuesday, February 10th. Finally, Scotiabank boosted their price objective on Omega Healthcare Investors from $45.00 to $48.00 and gave the company a “sector perform” rating in a research note on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $47.83.
Check Out Our Latest Stock Report on Omega Healthcare Investors
Omega Healthcare Investors Price Performance Shares of NYSE OHI opened at $46.40 on Friday. The firm has a market capitalization of $13.82 billion, a P/E ratio of 24.04, a P/E/G ratio of 2.06 and a beta of 0.59. The company has a quick ratio of 5.04, a current ratio of 5.04 and a debt-to-equity ratio of 0.78. The stock’s 50-day simple moving average is $46.39 and its two-hundred day simple moving average is $44.64. Omega Healthcare Investors, Inc. has a twelve month low of $35.08 and a twelve month high of $49.14.
Omega Healthcare Investors Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Monday, May 4th will be paid a $0.67 dividend. This represents a $2.68 dividend on an annualized basis and a yield of 5.8%. The ex-dividend date is Monday, May 4th. Omega Healthcare Investors’s dividend payout ratio is currently 138.86%.
Omega Healthcare Investors Company Profile (Free Report)
Omega Healthcare Investors, Inc is a real estate investment trust (REIT) that specializes in the ownership and management of healthcare-related facilities. The company’s core business involves acquiring and leasing long-term care properties, including skilled nursing facilities and assisted living communities, under net lease agreements. Its portfolio is designed to provide stable, inflation-protected cash flows from operators responsible for day-to-day property management.
Founded in 1992 and headquartered in Hunt Valley, Maryland, Omega Healthcare Investors has grown its holdings to encompass hundreds of facilities across the United States, with a smaller presence in select international markets.
See Also Five stocks we like better than Omega Healthcare Investors Want to see what other hedge funds are holding OHI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Omega Healthcare Investors, Inc. (NYSE:OHI – Free Report).
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Completed $251 Million in New Investments in Q1 2026
Raises Full Year Adjusted FFO Guidance Mid-Point
HUNT VALLEY, Md.--(BUSINESS WIRE)--Omega Healthcare Investors, Inc. (NYSE: OHI) (the “Company” or “Omega”) announced today its results for the quarter ended March 31, 2026.
FIRST QUARTER 2026 AND RECENT HIGHLIGHTS
Net income for the quarter of $159 million, or $0.47 per diluted share, compared to $112 million, or $0.33 per diluted share, for Q1 2025. Adjusted Funds From Operations (“Adjusted FFO” or “AFFO”) for the quarter of $260 million, or $0.82 per diluted share, on 315 million weighted-average common shares outstanding, compared to $221 million, or $0.75 per diluted share, on 295 million weighted-average common shares outstanding, for Q1 2025. Funds Available for Distribution (“FAD”) for the quarter of $247 million, or $0.78 per diluted share, compared to FAD of $211 million, or $0.71 per diluted share, for Q1 2025. Completed $251 million of investments in Q1 consisting of $126 million in real estate acquisitions, $27 million in real estate loan fundings and $97 million of investments in unconsolidated entities, including the acquisition of a 9.9% equity interest in the Saber OpCo JV for $93 million. Issued 2 million common shares in Q1 for gross proceeds of $107 million. Completed $75 million in new investments in April 2026. 18 CommuniCare facilities expected to be sold in Q2 for $480 million. Nareit Funds From Operations (“Nareit FFO”), AFFO and FAD are supplemental non-GAAP financial measures the Company believes are useful in evaluating the performance of real estate investment trusts (“REITs”). Reconciliations and further information regarding these non-GAAP measures are provided at the end of this press release.
CEO COMMENTS
Taylor Pickett, Omega’s Chief Executive Officer, stated, “We are pleased to report strong first quarter results, with FAD per share up 9.5% over the same quarter last year. This reflects our continued accretive investment activity, augmented by active portfolio management. As a result of our strong start to 2026, we were able to increase the low end of our AFFO guidance, moving the midpoint up by two cents to $3.22.”
Mr. Pickett continued, “Our first quarter investments included both skilled nursing triple-net and senior housing RIDEA real estate investments, as well as, our equity investment in Saber, and our first investment in Canada. Additionally, we announced the expected sale of 18 skilled nursing facilities for proceeds of $480 million, which, when redeployed, we believe will add a further three cents to FAD. Each of these investment decisions reflect our relentless focus on driving shareholder value through innovative and thoughtful investments, while aligning our interests with our operating partners.”
Mr. Pickett concluded, “Overall, the backdrop continues to be favorable. Operating metrics remain strong, with coverage continuing to modestly improve in the quarter. Despite elevated interest in senior care real estate, the pipeline is very active, the team is highly engaged, and we have a cost of capital that should allow us to continue to accretively invest.”
FIRST QUARTER 2026 PORTFOLIO AND RECENT ACTIVITY
Operator Updates:
Genesis – As previously disclosed, Genesis Healthcare, Inc. (“Genesis”) filed for Chapter 11 bankruptcy protection on July 9, 2025. Since filing for bankruptcy, Genesis has made all required contractual rent and interest payments through April 2026. In March 2026, Omega agreed to provide $26.7 million in a new super-priority secured $80.0 million debtor-in-possession (“DIP”) financing. As of March 31, 2026, Omega funded $25.0 million under the new DIP financing. A portion of the proceeds was used to fully repay the $9.2 million of outstanding obligations due to Omega under the original DIP loan. In the first quarter of 2026, the Company recognized rental income of $13.3 million for contractual rent payments received from Genesis, and interest income of $7.0 million, consisting of $0.4 million of cash interest and $6.6 million of paid-in-kind interest.
Maplewood – In the first quarter of 2026, Maplewood Senior Living (along with affiliates “Maplewood”) paid $19.4 million in rent (compared to $18.9 million in the fourth quarter of 2025).
New Investments:
The following table presents investment activity:
Three Months Ended
Investment Activity ($000’s)
March 31, 2026
$ Amount
%
Real property
$
126,434
50.4
%
Real estate loan fundings
27,343
10.9
%
Investments in unconsolidated entities
96,996
38.7
%
Total real property and loan investments
$
250,773
100.0
%
$126 Million in Real Estate Acquisitions – In the first quarter of 2026, the Company acquired 15 facilities for aggregate consideration of $126.4 million, comprised of:
$120 Million in U.S. Real Estate Acquisitions – In two first quarter transactions, the Company acquired one senior housing facility in Alabama and 13 skilled nursing facilities (“SNFs”) in Georgia for aggregate consideration of $119.8 million. The Company will operate the Alabama facility, through a new third-party property manager, utilizing the REIT Investment Diversification and Empowerment Act of 2007 (“RIDEA”) structure. The 13 Georgia SNFs were leased to an existing operator with an initial cash yield of 10.6% and annual escalators of 2.5%. $7 Million U.K. Real Estate Acquisition – The Company acquired one care home in the U.K. for $6.6 million and leased it to an existing operator. The investment has an initial annual cash yield of 10.0% with annual escalators of 2.5%. $27 Million in Real Estate Loans – In the first quarter of 2026, the Company funded $27.3 million in real estate loans, comprised of:
$21 Million U.K. Mortgage Loan – The Company funded a new $21.3 million mortgage loan to an existing operator secured by a U.K care home. The loan has an interest rate of 13% and a maturity date in March 2027. $4 Million of Additional Fundings on Existing U.S Real Estate Loans – The Company funded $3.8 million of additional draws on existing U.S. real estate loans during the first quarter of 2026 at a weighted average interest rate of 10.7%. $2 Million of Fundings on Canada Development Loan – In the first quarter of 2026, the Company funded $2.2 million ($CAD $3.0 million) under a previously disclosed Canadian dollar denominated real estate loan, with maximum capacity of $62.8 million ($CAD $87.6 million), that was executed in December 2025. The proceeds of the loan will be utilized for the development of five long-term care facilities in Canada. The loan has an interest rate of 10.0% with a maturity date in December 2035. At Omega’s option, the loan is convertible into a 34.9% equity stake in the borrower. $97 Million of Investments in Unconsolidated Entities – In the first quarter of 2026, the Company funded $97.0 million of investments in several unconsolidated entities. The primary investment was a 9.9% equity interest in Saber Healthcare Holdings, LLC (“Saber”) that the Company acquired in January 2026 for $92.6 million in cash consideration. Omega will receive minimum quarterly cash distributions equivalent to an annualized yield of 8% on its 9.9% investment. In the first quarter of 2026, the Company recognized income of $1.1 million, which is net of $1.8 million of depreciation and amortization expense, related to the Company’s investment in Saber. Saber leases 53 operating facilities from the Company under a master lease with monthly contractual rent of $5.4 million as of March 31, 2026, and also operates 65 facilities owned by the Saber PropCo joint venture, in which the Company holds a 49% equity interest.
$75 Million in Q2 2026 Real Estate Investment Activity – In the second quarter of 2026, the Company completed $75.0 million of new investments, comprised of:
$42 Million Real Estate Acquisition – In April 2026, the Company acquired three facilities in Rhode Island for a contractual purchase price of $42.0 million. The Company will operate the facilities, through a new third-party property manager, utilizing a RIDEA structure. $33 Million Real Estate Acquisition – In April 2026, the Company acquired two facilities in Indiana for a contractual purchase price of $33.0 million and leased them to one existing operator. The investment has an initial annual cash yield of 10.0% with annual escalators of 2.0%. The operator’s lease, with $41.3 million in annual contractual rent before the acquisition, was extended from August 2027 to August 2036, concurrent with adding the acquired facilities to the master lease. Asset Sales:
$34 Million in Asset Sales – In the first quarter of 2026, the Company sold four facilities for $34.5 million in cash, recognizing a gain of $3.0 million.
Assets Held for Sale – As of March 31, 2026, the Company had 19 facilities classified as assets held for sale, totaling $233.1 million in net book value. These include 18 facilities leased to CommuniCare Health Services, Inc. (“CommuniCare”) that are part of a strategic disposition. These facilities, located throughout Maryland and West Virginia, were moved from assets held for use. In April 2026, 12 Maryland facilities were sold with the remaining six West Virginia expected to sell in the second quarter of 2026 for an expected aggregate total contractual purchase price of $479.9 million. There can be no assurance that the West Virginia facilities will be sold as expected. Contractual first quarter rent related to these 18 facilities was $9.2 million and, as of December 31, 2025, trailing 12-month EBITDAR coverage was 0.87x.
TRIPLE-NET AND MORTGAGE LOAN OPERATOR COVERAGE DATA
The following tables present operator revenue mix, census and coverage data based on information provided by the Company’s operators for the indicated periods. The Company has not independently verified this information and is providing this data for informational purposes only.
Operator Revenue Mix (1)
Medicare /
Private /
Medicaid
Insurance
Other
Three-months ended December 31, 2025
49.6
%
25.9
%
24.5
%
Three-months ended September 30, 2025
49.4
%
26.1
%
24.5
%
Three-months ended June 30, 2025
50.2
%
26.8
%
23.0
%
Three-months ended March 31, 2025
50.5
%
27.8
%
21.7
%
Three-months ended December 31, 2024
50.4
%
27.6
%
22.0
%
Coverage Data
Before
After
Occupancy (2)
Management
Management
Operator Census and Coverage (1)
Fees (3)
Fees (4)
Twelve-months ended December 31, 2025
82.6
%
1.94x
1.58x
Twelve-months ended September 30, 2025
82.6
%
1.93x
1.57x
Twelve-months ended June 30, 2025
82.6
%
1.91x
1.55x
Twelve-months ended March 31, 2025
82.2
%
1.88x
1.51x
Twelve-months ended December 31, 2024
81.8
%
1.88x
1.51x
FINANCING ACTIVITIES
ATM Program and Dividend Reinvestment and Common Stock Purchase Plan – The following is a summary of the common shares issued in the first quarter of 2026:
Dividend
Reinvestment and
At-the-Market
Common Stock
Program
Purchase Plan
Q1 2026
Number of shares (000’s)
2,219
9
Average price per share
$
48.08
$
47.12
Gross proceeds ($000’s)
$
106,684
$
438
BALANCE SHEET AND LIQUIDITY
As of March 31, 2026, the Company had $4.5 billion in outstanding indebtedness with a weighted average annual interest rate of 4.2%. The Company’s indebtedness consisted of an aggregate principal amount of $3.8 billion of senior unsecured notes, $425.0 million on its revolving credit facility, and $300.0 million on the 2028 Term Loan. As of March 31, 2026, total cash and cash equivalents were $26.1 million, and the Company had $1.6 billion in undrawn capacity under its unsecured revolving credit facility.
DIVIDENDS
On April 23, 2026, the Board of Directors declared a quarterly cash dividend of $0.67 per share, to be paid May 15, 2026, to common stockholders of record as of the close of business on May 4, 2026.
2026 GUIDANCE MID-POINT INCREASED
The Company’s expected 2026 Adjusted FFO range is between $3.19 to $3.25 per diluted share compared to the previous range of $3.15 and $3.25 per diluted share.
The guidance assumes:
all new investments disclosed above in the press release; no additional operators are placed on a cash-basis for revenue recognition; Genesis continues to pay its full contractual rental obligations of $13.3 million per quarter; Maplewood pays rent at $19.5 million per quarter; quarterly G&A expense of approximately $14 million to $15 million; no material changes in market interest rates or changes in foreign currency exchange rates, including those due to derivative instruments entered into to minimize the fluctuation in the GBP spot rates; $65 million of the $159 million in mortgages and other real estate-backed investments that are set to mature in 2026 will be converted from loans to fee simple real estate and the remaining balance will be repaid in 2026; $224 million in non-real estate backed loans at March 31, 2026 are expected to be repaid throughout 2026 (including $160 million in loans to Genesis to be repaid in Q4 2026); 18 CommuniCare facilities in assets held for sale on March 31st expected to be sold for $480 million; and no other asset sales beyond those described above. The Company’s guidance is based on several assumptions including those noted above, which are subject to change and many of which are outside the Company’s control. However, it excludes any additional:
acquisitions or acquisitions costs; capital markets activity; interest refinancing expenses; provisions for credit losses, if any; and certain revenue and expense items. If actual results vary from these assumptions, the Company's expectations may change. Without limiting the generality of the foregoing, the timing of collection of rental obligations from operators on a cash basis and the timing and completion of acquisitions, divestitures, restructurings and capital and financing transactions may cause actual results to vary materially from the Company’s current expectations. There can be no assurance that the Company will achieve its projected results. The Company may, from time to time, update its publicly announced AFFO guidance, but it is not obligated to do so.
The Company does not provide a reconciliation for its AFFO guidance to GAAP net income because it is unable to determine meaningful or accurate estimates of reconciling items without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amounts of various items that would impact future net income. This includes, but is not limited to, changes in the provision for credit losses, real estate impairments, acquisition, merger and transition related costs, straight-line write-offs, gain/loss on assets sold, etc. In particular, the Company is unable to predict with reasonable certainty the amount of change in the provision for credit losses in future periods, which is often a significant reconciling adjustment.
ADDITIONAL INFORMATION
Additional information regarding the Company can be found in its First Quarter 2026 Financial Supplemental posted under “Financial Info” in the Investors section of Omega’s website. The information contained on, or that may be accessed through, Omega’s website, including the information contained in the aforementioned supplemental, is not incorporated by any reference into, and is not part of, this document.
CONFERENCE CALL
The Company will be conducting a conference call on Wednesday, April 29, 2026, at 10 a.m. Eastern Time to review the Company’s 2026 first quarter results and current developments. Investors and other interested parties may access the conference call in the following ways:
At the Company’s website: https://www.omegahealthcare.com/ Via webcast: https://events.q4inc.com/attendee/811963547 . Joining via webcast is recommended for those who will not be asking questions. By telephone: The participant toll-free dial-in number is (800) 715-9871. The international dial-in is +1 (646) 307-1963. The conference ID number is 1388157. Webcast replays of the call will be available on Omega’s website for approximately two weeks following the call. Additionally, a copy of the earnings release will be available in the “Financial Information” section on the “Investors” page of Omega’s website.
Omega is a real estate investment trust (“REIT”) that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the U.S., as well as in the U.K.
Forward-Looking Statements and Cautionary Language
This press release includes forward-looking statements within the meaning of the federal securities laws. All statements regarding Omega’s or its tenants’, operators’, borrowers’ or managers’ expected future financial condition, results of operations, cash flows, funds from operations, dividends and dividend plans, financing opportunities and plans, capital markets transactions, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, dispositions, facility transitions, growth opportunities, expected lease income, continued qualification as a REIT, plans and objectives of management for future operations and statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will” and other similar expressions are forward-looking statements. These forward-looking statements are inherently uncertain, and actual results may differ from Omega's expectations.
Omega’s actual results may differ materially from those reflected in such forward-looking statements as a result of a variety of factors, including, among other things: (i) uncertainties relating to the business operations of the operators of our assets, including those relating to reimbursement by third-party payors, regulatory matters, occupancy levels and quality of care, including the management of infectious diseases; (ii) our operators’ ability to manage industry challenges, including staffing shortages, which may impact certain regions more acutely, increased costs, and the sufficiency of governmental reimbursement rates to offset such costs and the conditions related thereto; (iii) additional regulatory and other changes in the healthcare sector, including changes to Medicaid and Medicare reimbursements, the potential impact of recent changes to state Medicaid funding levels as well as legislative and regulatory initiatives related to establishing minimum staffing requirements for skilled nursing facilities (“SNFs”) that may further exacerbate labor and occupancy challenges for Omega’s operators; (iv) the ability of any of Omega’s operators in bankruptcy to reject unexpired lease obligations, modify the terms of Omega’s mortgages and impede the ability of Omega to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor’s obligations, and other costs and uncertainties associated with operator bankruptcies; (v) changes in tax laws and regulations affecting REITs, including as the result of any federal or state policy changes driven by the current focus on capital providers to the healthcare industry; (vi) Omega’s ability to re-lease, otherwise transition or sell underperforming assets or assets held for sale on a timely basis and on terms that allow Omega to realize the carrying value of these assets or to redeploy the proceeds therefrom on favorable terms, including due to the potential impact of changes in the SNF and assisted living facility (“ALF”) markets or local real estate conditions; (vii) the availability and cost of capital to Omega; (viii) changes in Omega’s credit ratings and the ratings of its debt securities; (ix) competition in the financing of healthcare facilities; (x) competition in the long-term healthcare industry and shifts in the perception of various types of long-term care facilities, including SNFs and ALFs; (xi) changes in the financial position of Omega’s operators; (xii) the effect of economic, regulatory and market conditions generally, and particularly in the healthcare industry in the U.S. and in other jurisdictions where we conduct business, including the U.K.; (xiii) changes in interest rates and foreign currency exchange rates and the impact of inflation and changes in global tariffs and international trade disputes; (xiv) the timing, amount and yield of any additional investments; (xv) Omega’s ability to maintain its status as a REIT; (xvi) operational risks associated with our investments in healthcare operating companies, including senior housing properties managed through structures authorized by the REIT Investment Diversification and Empowerment Act of 2007 (commonly referred to as “RIDEA”); (xvii) the use of, or inability to use, artificial intelligence by us, our operators, managers, vendors and investors; (xviii) the effect of other factors affecting our business or the businesses of Omega’s operators that are beyond Omega’s or operators’ control, including natural disasters, public health crises or pandemics, cyber threats and governmental action, particularly in the healthcare industry, and (xix) other factors identified in Omega’s filings with the Securities and Exchange Commission. Statements regarding future events and developments and Omega’s future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements.
We caution you that the foregoing list of important factors may not contain all the material factors that are important to you. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
March 31,
December 31,
2026
2025
(Unaudited)
ASSETS
Real estate assets
Buildings and improvements
$
7,696,967
$
7,901,652
Land
1,160,474
1,179,463
Furniture and equipment
531,005
539,775
Construction in progress
11,991
12,492
Total real estate assets
9,400,437
9,633,382
Less accumulated depreciation
(2,930,373)
(2,930,611)
Real estate assets – net
6,470,064
6,702,771
Real estate loans receivable – net
1,389,666
1,380,949
Investments in unconsolidated entities
507,720
414,127
Assets held for sale
233,128
4,000
Total real estate investments
8,600,578
8,501,847
Non-real estate loans receivable – net
354,953
330,322
Total investments
8,955,531
8,832,169
Cash and cash equivalents
26,149
27,024
Restricted cash
27,172
27,539
Contractual and other receivables – net
292,141
280,774
Goodwill
644,352
644,626
Other assets
289,206
236,927
Total assets
$
10,234,551
$
10,049,059
LIABILITIES AND EQUITY
Revolving credit facility
$
425,000
$
242,000
Senior notes and other unsecured borrowings – net
4,016,289
4,014,011
Accrued expenses and other liabilities
338,243
352,549
Total liabilities
4,779,532
4,608,560
Preferred stock $1.00 par value authorized – 20,000 shares, issued and outstanding – none
—
—
Common stock $0.10 par value authorized – 700,000 shares, issued and outstanding – 297,797 shares as of March 31, 2026 and 295,539 shares as of December 31, 2025
29,779
29,553
Additional paid-in capital
8,775,469
8,693,033
Cumulative net earnings
4,828,141
4,677,092
Cumulative dividends paid
(8,495,911)
(8,297,416)
Accumulated other comprehensive income
54,004
79,037
Total stockholders’ equity
5,191,482
5,181,299
Noncontrolling interest
263,537
259,200
Total equity
5,455,019
5,440,499
Total liabilities and equity
$
10,234,551
$
10,049,059
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in thousands, except per share amounts)
Three Months Ended
March 31,
2026
2025
Revenues
Rental income
$
266,864
$
228,375
Real estate tax and ground lease income
3,753
3,803
Real estate loans interest income
32,566
33,162
Non-real estate loans interest income
12,589
9,954
Resident fees and services
6,657
—
Miscellaneous income
526
1,491
Total revenues
322,955
276,785
Expenses
Depreciation and amortization
84,140
79,875
Interest expense
49,755
52,280
Senior housing operating expenses
5,427
—
General and administrative
14,995
13,321
Real estate tax and ground lease expense
4,016
3,826
Stock-based compensation expense
10,592
9,210
Severance expense
—
9,011
Acquisition, merger and transition related costs
1,114
1,464
Impairment on real estate properties
392
1,235
(Recovery) provision for credit losses
(3,294
)
5,092
Total expenses
167,137
175,314
Other income
Other income – net
1,076
3,047
Gain on assets sold – net
3,024
10,075
Total other income
4,100
13,122
Income before income tax expense and income from unconsolidated entities
159,918
114,593
Income tax expense
(5,106
)
(3,611
)
Income from unconsolidated entities
3,764
1,078
Net income
158,576
112,060
Net income attributable to noncontrolling interest
(7,527
)
(3,028
)
Net income available to common stockholders
$
151,049
$
109,032
Earnings per common share available to common stockholders:
Basic:
Net income available to common stockholders
$
0.47
$
0.34
Diluted:
Net income available to common stockholders
$
0.47
$
0.33
Dividends declared per common share
$
0.67
$
0.67
OMEGA HEALTHCARE INVESTORS, INC.
Nareit FFO, Adjusted FFO and FAD Reconciliation
Unaudited
(in thousands, except per share amounts)
Three Months Ended
March 31,
2026
2025
Net income (1)
$
158,576
$
112,060
Deduct gain from real estate dispositions
(3,024
)
(10,075
)
Sub-total
155,552
101,985
Elimination of non-cash items included in net income:
Depreciation and amortization
84,140
79,875
Depreciation – unconsolidated entities
9,412
683
Impairment on real estate properties
392
1,235
Nareit funds from operations (“Nareit FFO”)
$
249,496
$
183,778
Weighted-average common shares outstanding, basic
297,047
283,015
Restricted stock and PRSUs
3,014
3,703
Omega OP Units
15,067
8,210
Weighted-average common shares outstanding, diluted
315,128
294,928
Nareit funds from operations available per share
$
0.79
$
0.62
Adjustments to calculate adjusted funds from operations
Nareit FFO
$
249,496
$
183,778
Add back (deduct):
Stock-based compensation expense
10,592
9,210
Straight-line rent and other write-offs (2)
2,377
10,000
Acquisition, merger and transition related costs
1,114
1,464
Severance expense (3)
—
9,011
Non-cash (recovery) provision for credit losses
(1,051
)
7,579
Other normalizing items – net (4)
(2,855
)
355
Adjusted funds from operations (“AFFO”) (1)(5)
$
259,673
$
221,397
Adjustments to calculate funds available for distribution
Non-cash expense (6)
$
1,298
$
3,187
Capitalized interest
(136
)
(751
)
Non-cash revenue
(14,083
)
(13,022
)
Funds available for distribution (“FAD”) (1)(5)
$
246,752
$
210,811
__________________
(1)
The three months ended March 31, 2025 include the application of $4.3 million of security deposits (letters of credit and cash deposits) in revenue.
(2)
The three months ended March 31, 2025 includes a $10.0 million lease inducement recorded as a reduction to rental income related to a one-time payment made to an operator upon entering a new 10-year master lease.
(3)
The three months ended March 31, 2025 includes $6.6 million of non-cash stock-based compensation expense associated with the previously disclosed leadership transition that occurred in January 2025.
(4)
Primarily consists of cash interest received on seller financing loans related to asset sales not recognized, gains and losses associated with certain financial instruments and foreign currency and other normalizing revenue and expense adjustments for discrete items.
(5)
Adjusted funds from operations per share and funds available for distribution per share can be calculated using weighted-average common shares outstanding, diluted, as shown above.
(6)
Primarily consists of non-cash items within interest expense, such as the amortization of deferred financing fees and discounts, as well as the amortization of deferred gains from forward swaps designated as cash flow hedges and other non-cash items. For the three months ended March 31, 2025, Non-cash expense is not adjusted to include $2.4 million of amortization related to the above market loan assumed as part of the Cindat JV acquisition in July 2024. The above market loan was fully repaid in November 2025.
Nareit Funds From Operations (“Nareit FFO”), Adjusted FFO and Funds Available for Distribution (“FAD”) are non-GAAP financial measures. As used in this press release, GAAP refers to generally accepted accounting principles in the United States of America. The Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
The Company calculates and reports Nareit FFO in accordance with the definition and interpretive guidelines issued by the National Association of Real Estate Investment Trusts (“Nareit”), and consequently, Nareit FFO is defined as net income (computed in accordance with GAAP), adjusted for the effects of asset dispositions and certain non-cash items, primarily depreciation and amortization and impairments on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures and changes in the fair value of warrants. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. Revenue recognized based on the application of security deposits and letters of credit or based on the ability to offset against other financial instruments is included within Nareit FFO. The Company believes that Nareit FFO, Adjusted FFO and FAD are important supplemental measures of its operating performance. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time, while real estate values instead have historically risen or fallen with market conditions. The term funds from operations was designed by the real estate industry to address this issue. Funds from operations described herein is not necessarily comparable to funds from operations of other real estate investment trusts, or REITs, that do not use the same definition or implementation guidelines or interpret the standards differently from the Company.
Adjusted FFO is calculated as Nareit FFO excluding the impact of non-cash stock-based compensation and certain revenue and expense items (e.g., acquisition, merger and transition related costs, straight-line rent and other write-offs, recoveries and provisions for credit losses (excluding certain cash recoveries on impaired loans), severance expense and other normalizing items). FAD is calculated as Adjusted FFO less non-cash expense, such as the amortization of deferred financing costs, and non-cash revenue, such as straight-line rent. FAD includes the non-cash amortization of premiums associated with the fair value of debt assumed in acquisitions. The Company believes these measures provide an enhanced measure of the operating performance of the Company’s core portfolio as a REIT. The Company’s computation of Adjusted FFO and FAD may not be comparable to the Nareit definition of funds from operations or to similar measures reported by other REITs, but the Company believes that they are appropriate measures for this Company.
The Company uses these non-GAAP measures among the criteria to measure the operating performance of its business. The Company also uses FAD among the performance metrics for performance-based compensation of officers. The Company further believes that by excluding the effect of depreciation, amortization, impairments on real estate assets and gains or losses from sales of real estate, all of which are based on historical costs, and which may be of limited relevance in evaluating current performance, funds from operations can facilitate comparisons of operating performance between periods. The Company offers these measures to assist the users of its financial statements in analyzing its operating performance. These non-GAAP measures are not measures of financial performance under GAAP and should not be considered as measures of liquidity or cash flow, alternatives to net income or indicators of any other performance measure determined in accordance with GAAP. Investors and potential investors in the Company’s securities should not rely on these non-GAAP measures as substitutes for any GAAP measure, including net income.
Omega Healthcare Investors (OHI - Free Report) came out with quarterly funds from operations (FFO) of $0.82 per share, beating the Zacks Consensus Estimate of $0.8 per share. This compares to FFO of $0.75 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +2.50%. A quarter ago, it was expected that this health care real estate investment trust would post FFO of $0.79 per share when it actually produced FFO of $0.8, delivering a surprise of +1.27%.
Over the last four quarters, the company has surpassed consensus FFO estimates four times.
Omega Healthcare Investors, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $322.96 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.20%. This compares to year-ago revenues of $276.79 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Omega Healthcare Investors shares have added about 5.3% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for Omega Healthcare Investors?While Omega Healthcare Investors has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Omega Healthcare Investors was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.80 on $318.17 million in revenues for the coming quarter and $3.19 on $1.29 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Medical Properties (MPT - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.
This health care real estate investment trust is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +7.1%. The consensus EPS estimate for the quarter has been revised 13.3% higher over the last 30 days to the current level.
Medical Properties' revenues are expected to be $252.59 million, up 12.9% from the year-ago quarter.
Omega Healthcare Investors is rated Buy, with strong long-term potential and a valuation reflecting elevated risk. OHI delivered a solid Q1, raised 2026 AFFO guidance to $3.19–$3.25 per share, and advanced its SHOP/RIDEA operational pivot. Risks include macro headwinds from the Iran conflict, higher rates, tenant pressures, and increased operational exposure from the SHOP model.
The Stability CaseQ1 2026 results showed clear improvement across the income statement. Revenue rose to $322.9M from $276.8M a year earlier, driven mainly by rental income growth and new senior housing operating revenue from RIDEA structures. Net income available to common stockholders reached $151.0M, or $0.47 per diluted share — up from $109.0M and $0.33 the prior year.
Cash generation strengthened in parallel. AFFO came in at $0.82 per share, FAD at $0.78. Operating cash flow of $215.5M comfortably covered $198.5M in common dividends. Management narrowed full-year AFFO guidance to $3.19–$3.25, and the payout ratio dropped to 82% of AFFO and 86% of FAD — meaningful headroom relative to prior years.
Liquidity remains intact. The company ended the quarter with $4.5 billion of debt, $26.1 million of cash, and $1.6 billion of undrawn revolver capacity, supplemented by ATM equity access through 2.2M shares issued for net proceeds of roughly $105.5M in the quarter.
Where Caution Is WarrantedThe same disclosures show stress at the operator level — the layer that sits underneath OHI’s financial statements but ultimately determines what flows through them.
Maplewood’s $329.5M revolver is on non-accrual, and Genesis is in Chapter 11, supported by a $25.0M Super-Priority DIP Loan plus two term loans totaling $134.5M. CommuniCare is the subject of a planned $479.9 million skilled nursing portfolio disposition involving 18 assets, with twelve already sold after quarter-end and six expected to close in Q2.
These aren’t isolated names. They reflect the structural reality that Omega’s coverage today depends on operating performance of skilled nursing operators whose own coverage is tied to a federal-state reimbursement environment they don’t control. When that environment tightens, the pressure shows up on the operator’s income statement first — and on OHI’s only when leases or loans are restructured.
What Would Shift The NarrativeWhat I’d WatchThis is not a prediction — structural assessment.
This essay applies the DFB Signal Frameworks — Three Clocks™, BBB- Cliff™, and Buffer Half-Life™. More structural income notes are published at Dividend Forensics Bureau.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Alpine Income (PINE) and Omega Healthcare Investors (OHI). But which of these two stocks presents investors with the better value opportunity right now?
Taylor Pickett, CEO, to retire October 1st; stepping down from Board of Directors
Matthew Gourmand, President, promoted to CEO; to join Board
Bob Stephenson, CFO, to retire August 1st
Neal Ballew, CAO, promoted to CFO
HUNT VALLEY, Md.--(BUSINESS WIRE)--Omega Healthcare Investors, Inc. (NYSE: OHI) (the “Company” or “Omega”) today announced that Matthew Gourmand, President of Omega, will become the Company’s Chief Executive Officer in conjunction with the planned retirement of Taylor Pickett effective October 1, 2026. Mr. Pickett will step down from the Board of Directors upon his retirement, and the Board of Directors intends to appoint Mr. Gourmand to the Board, effective on that date.
Omega also announced the planned retirement of Bob Stephenson as the Company’s Chief Financial Officer effective August 1, 2026, with Neal Ballew, currently Omega’s Chief Accounting Officer of six years, succeeding Mr. Stephenson in that role.
Craig Callen, Chair of the Board of Directors, stated, “I am excited to announce the next generation leadership of Omega, with Matthew and Neal stepping up into the CEO and CFO roles as the culmination of a carefully managed, multi-year succession plan. The Board has been developing this plan over an extended period and believes it will lead to Omega’s continued success.”
Mr. Callen continued regarding Mr. Gourmand, “We have had the opportunity to see Matthew evolve in various roles and, with his deep investing experience and a leadership style rooted in collaboration and innovation, he is well-prepared to lead the Company in its next phase of growth.”
Mr. Pickett stated, “Having worked with Matthew for the past eight years, I believe he is the right person to take the Company forward. With a highly experienced and driven team to support him, I am confident that Omega is well-positioned to continue to increase shareholder value.”
Mr. Pickett’s retirement marks the end of a remarkable 25 years as Omega’s CEO, during which Omega has achieved a total shareholder return of over 10,000%, the highest return of all publicly traded REITs over that period. Its portfolio of predominantly senior care assets grew from 258 to 1,124 as of the past quarter, and its market capitalization increased from approximately $60 million to over $15 billion today.
Mr. Callen commented, “Throughout Taylor’s 25 years as CEO of Omega, his strategic vision and strong leadership have created an industry-leading company well-positioned to capture current and future demographic trends. Taylor created a strong culture based on achievement, prudent capital allocation and development of future executives. That team now stands ready to build upon this success.”
Mr. Stephenson also has had a remarkable career at Omega, overseeing significant growth in the capital base and the establishment of investment grade credit ratings, reflecting strong balance sheet management.
Mr. Pickett stated, “During Bob’s 25-year tenure as CFO, his financial management has been exceptional. He inherited a deeply challenged balance sheet, which he has methodically and judiciously strengthened over the years. He leaves Omega as an investment-grade credit, with a well-laddered maturity schedule, and leverage near all-time lows, with Neal very well-trained and ready to step up. I would like to thank Bob for being such a great partner to me in the leadership of Omega.”
Mr. Callen continued, “We thank both Taylor and Bob for their unwavering service to shareholders and wish each of them a long and well-deserved retirement.”
Mr. Pickett said, “It has been an honor and a privilege to lead Omega since 2001. I am proud of our team’s many accomplishments, and I am grateful to my colleagues, our Board of Directors, our operating partners, and all those who have contributed to Omega’s success during my tenure.”
Mr. Stephenson commented, “It has been the highlight of my professional life to be part of the Omega leadership team and oversee the financial evolution and growth of the Company from its early day struggles to its present position as a large scale, financially sound industry leader.”
Mr. Stephenson continued, “I have worked very closely with Neal since he joined Omega. He is highly skilled, bright, and talented, and will provide great continuity. As we start a multi-decade tailwind from the aging of the baby boomers, and with Matthew and Neal ready to step into their new roles, I feel as confident about the future of Omega as I feel proud of the past.”
Reflecting on his impending new role, Mr. Gourmand noted, “I am excited to serve as Omega’s next CEO and lead this exceptional team in its next chapter. I am grateful for the trust that the Board has placed in me, and I will work tirelessly to repay that trust. I want to thank Taylor and Bob for growing and shaping Omega into what it is today, as well as all their mentorship and counsel to prepare me for this next step. They will be deeply missed, but the culture of excellence and an unwavering focus on creating shareholder value will continue.”
Both Mr. Pickett and Mr. Stephenson have agreed to remain in consulting roles after their retirements, being available to the Company as requested from time to time during their consulting periods.
Omega is a real estate investment trust (“REIT”) that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the U.S., as well as in the U.K.
Forward-Looking Statements and Cautionary Language
This press release includes forward-looking statements within the meaning of the federal securities laws. All statements regarding Omega’s or its tenants’, operators’, borrowers’ or managers’ expected future financial condition, results of operations, cash flows, funds from operations, dividends and dividend plans, financing opportunities and plans, capital markets transactions, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, dispositions, facility transitions, growth opportunities, expected lease income, continued qualification as a REIT, plans and objectives of management for future operations and statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will” and other similar expressions are forward-looking statements. These forward-looking statements are inherently uncertain, and actual results may differ from Omega's expectations.
Omega’s actual results may differ materially from those reflected in such forward-looking statements as a result of a variety of factors, including, among other things: (i) uncertainties relating to the business operations of the operators of our assets, including those relating to reimbursement by third-party payors, regulatory matters, occupancy levels and quality of care, including the management of infectious diseases; (ii) our operators’ ability to manage industry challenges, including staffing shortages, which may impact certain regions more acutely, increased costs, and the sufficiency of governmental reimbursement rates to offset such costs and the conditions related thereto; (iii) additional regulatory and other changes in the healthcare sector, including changes to Medicaid and Medicare reimbursements, the potential impact of recent changes to state Medicaid funding levels as well as legislative and regulatory initiatives related to establishing minimum staffing requirements for skilled nursing facilities (“SNFs”) that may further exacerbate labor and occupancy challenges for Omega’s operators; (iv) the ability of any of Omega’s operators in bankruptcy to reject unexpired lease obligations, modify the terms of Omega’s mortgages and impede the ability of Omega to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor’s obligations, and other costs and uncertainties associated with operator bankruptcies; (v) changes in tax laws and regulations affecting REITs, including as the result of any federal or state policy changes driven by the current focus on capital providers to the healthcare industry; (vi) Omega’s ability to re-lease, otherwise transition or sell underperforming assets or assets held for sale on a timely basis and on terms that allow Omega to realize the carrying value of these assets or to redeploy the proceeds therefrom on favorable terms, including due to the potential impact of changes in the SNF and assisted living facility (“ALF”) markets or local real estate conditions; (vii) the availability and cost of capital to Omega; (viii) changes in Omega’s credit ratings and the ratings of its debt securities; (ix) competition in the financing of healthcare facilities; (x) competition in the long-term healthcare industry and shifts in the perception of various types of long-term care facilities, including SNFs and ALFs; (xi) changes in the financial position of Omega’s operators; (xii) the effect of economic, regulatory and market conditions generally, and particularly in the healthcare industry in the U.S. and in other jurisdictions where we conduct business, including the U.K.; (xiii) changes in interest rates and foreign currency exchange rates and the impact of inflation and changes in global tariffs and international trade disputes; (xiv) the timing, amount and yield of any additional investments; (xv) Omega’s ability to maintain its status as a REIT; (xvi) operational risks associated with our investments in healthcare operating companies, including senior housing properties managed through structures authorized by the REIT Investment Diversification and Empowerment Act of 2007 (commonly referred to as “RIDEA”); (xvii) the use of, or inability to use, artificial intelligence by us, our operators, managers, vendors and investors; (xviii) the effect of other factors affecting our business or the businesses of Omega’s operators that are beyond Omega’s or operators’ control, including natural disasters, public health crises or pandemics, cyber threats and governmental action, particularly in the healthcare industry, and (xix) other factors identified in Omega’s filings with the Securities and Exchange Commission. Statements regarding future events and developments and Omega’s future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements.
We caution you that the foregoing list of important factors may not contain all the material factors that are important to you. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Alpine Income (PINE - Free Report) and Omega Healthcare Investors (OHI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Alpine Income has a Zacks Rank of #2 (Buy), while Omega Healthcare Investors has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that PINE likely has seen a stronger improvement to its earnings outlook than OHI has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PINE currently has a forward P/E ratio of 9.07, while OHI has a forward P/E of 15.02. We also note that PINE has a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OHI currently has a PEG ratio of 2.05.
Another notable valuation metric for PINE is its P/B ratio of 0.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OHI has a P/B of 2.62.
These are just a few of the metrics contributing to PINE's Value grade of B and OHI's Value grade of D.
PINE sticks out from OHI in both our Zacks Rank and Style Scores models, so value investors will likely feel that PINE is the better option right now.
Omega Healthcare Investors offers a compelling high-yield opportunity after a recent price pullback, now yielding over 6%. OHI's fundamentals are robust, with FAD per share up 9.5% YoY, improved dividend coverage at 86%, and tenant rent coverage at a decade high. Strategic expansion into RIDEA structures and value-added acquisitions positions OHI for potentially strong total returns.
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Alpine Income (PINE) or Omega Healthcare Investors (OHI). But which of these two stocks offers value investors a better bang for their buck right now?
Dropbox, Decagon, and Swinerton Builders among new leases underscoring strong demand in the city’s leading innovation corridor
SAN FRANCISCO--(BUSINESS WIRE)--BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, today announced more than 200,000 square feet of new leases at 680 Folsom and 50 Hawthorne in San Francisco's South Financial District. These transactions bring 50 Hawthorne to full occupancy and 680 Folsom to more than 90% leased, illustrating accelerating momentum in one of the city’s most dynamic submarkets.
Dropbox, a cloud-based content collaboration platform, has leased the entire 64,000 square foot building at 50 Hawthorne. At 680 Folsom, following an extensive refresh, Decagon, a leading enterprise AI firm, has leased approximately 70,000 square feet across the sixth and seventh floors, and national construction firm Swinerton Builders and a software company each leased 35,000 square feet.
“The activity we’re seeing across our San Francisco premier workplace portfolio reflects the continued flight to quality in the market,” said Christine Yuen, Senior Vice President, Leasing, BXP. “Today’s companies prioritize highly amenitized, transit-oriented workplaces that foster collaboration and authentically celebrate their culture. Our ongoing investment strategy is directly aligned with this demand, reinforcing the strength of our repositioning efforts and enhancing the competitiveness of our assets in dynamic submarkets like the South Financial District.”
“We’re building for the long term and need a workplace that matches both our pace of growth and culture of innovation,” said Chloe Mark, SVP Operations and People at Decagon. “Doubling down on San Francisco was a deliberate decision for us, and finding the right partner was crucial. BXP has been instrumental in this next chapter, helping us secure and create a space at 680 Folsom that supports not only how we work today but where we're going as we build the next world-class enterprise technology company.”
Spanning 469,000 square feet, 680 Folsom delivers a curated, hospitality-driven workplace experience. A newly enhanced lounge offers flexible workspace and event capabilities, featuring a commissary kitchen, coffee bar, elevated concierge services, and state-of-the-art AV. Designed for year-round use, the reimagined rooftop provides sweeping San Francisco views alongside built-in speakers, heaters, fireplaces, and refined patio furnishings, with flexible configurations to accommodate gatherings of up to 400 guests. Project partners included Revel Architecture & Design, NBBJ Architects, GCI and MCS Construction.
“For more than 120 years, Swinerton has proudly maintained a presence in San Francisco,” said Paul Hinz, Vice President, Division Manager at Swinerton Builders. “Securing the right space for our team was a meaningful process, and we’re especially pleased to be moving into a property owned by our long-standing, trusted partner, BXP. A key priority was bringing all of our San Francisco operations together on a single floor, and 680 Folsom delivers exactly that.”
“We’re continuing to see strong momentum in the South Financial District submarket, especially among innovative companies like Dropbox and Decagon,” said Angus Scott, Executive Vice President at CBRE. “These types of companies are attracted to high-quality, creative spaces, with large floorplates, incredible natural light and high ceilings, which 680 Folsom and 50 Hawthorne both offer.”
According to CBRE 2026 Q1 data:
San Francisco recorded the highest growth rate in tech industry leasing between 2024 and 2025, with total square footage leased increasing by 44%. The 15 largest AI companies by venture capital funding expanded their workforce from approximately 7,500 employees in 2020 to 48,000 by year end 2025. The City of San Francisco has received the majority of AI VC funding since 2024 and has become more dominant in 2025 and 2026, accounting for 62% and 81% of U.S. AI funding. Leasing activity among tech and AI firms is expected to remain strong over the next 12 to 18 months, driven by sustained levels of tenant demand. Angus Scott and Madison Dutra Sarro of CBRE represented BXP in all transactions. Blake Walker and Ryan Lowe of CBRE represented Decagon, and Jonathan Allen and Griggs Ziesing of JLL represented Swinerton Builders. Luke Ogelsby and Sarah Kelley of CBRE represented Dropbox.
About BXP
BXP, Inc. (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 55 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). As of December 31, 2025, BXP’s portfolio, including properties owned by unconsolidated joint ventures, totaled 52.9 million square feet and 180 properties, including eight properties under construction or redevelopment. For more information, visit www.bxp.com or follow us on LinkedIn or Instagram.
Key Takeaways BXP signed 200K sq ft of SF leases, filling 50 Hawthorne and lifting 680 Folsom above 90% leased.Dropbox, Decagon and Swinerton deals highlight strong demand from tech and AI tenants.San Francisco tech leasing rose 44%, with AI funding dominance driving hiring and future office demand BXP, Inc. (BXP - Free Report) recently announced more than 200,000 square feet of new leases in San Francisco’s South Financial District, highlighting solid momentum amid rising demand for premier offices. These leases at 50 Hawthorne and 680 Folsom bring the former to 100% occupancy and the latter to more than 90% leased.
50 Hawthorne, spanning 64,000 square feet, was fully leased to Dropbox, a cloud-based content collaboration platform. On the other hand, at 680 Folsom, Decagon, a leading enterprise AI firm, leased around 70,000 square feet across the sixth and seventh floors, and Swinerton Builders, a national construction firm and a software company, leased 35,000 square feet each.
Stretching over 469,000 square feet, 680 Folsom is equipped with amenities like a newly enhanced lounge offering flexible workspace and event organizing setup. It features a commissary kitchen, coffee bar, elevated concierge services and state-of-the-art AV, with a rooftop offering flexible build-up to accommodate 400 guests.
As per the CBRE first-quarter 2026 data, San Francisco witnessed higher tech industry leasing between 2024 and 2025, with total square footage leased up by 44%. The city has received the majority of AI VC funding since 2024, and clear dominance in 2025 and 2026, representing 62% and 81% of U.S. AI funding, respectively.
The largest 15 AI companies by venture capital funding have been on a hiring spree, expanding their workforce from 7,500 employees in 2020 to 48,000 by 2025 year-end. With growing demand, leasing activity is expected to remain resilient over the next 12 to 18 months.
Wrapping Up on BXPBXP boasts a portfolio of Class A office assets in a few select markets in the United States. The healthy tenant demand for premier office assets and the company's ability to offer such spaces are likely to drive leasing activity.
In January 2026, the company announced that Starr had signed a long-term lease at 343 Madison Avenue, which is currently under development near Grand Central. In the fourth quarter of 2025, the company executed 87 leases totaling around 1.8 million square feet with a weighted average lease term of 11.3 years. This emphasizes the sustained demand and long-term commitment by corporates for quality office spaces with premier amenities as their key business strategy.
Over the past month, shares of this Zacks Rank #3 (Hold) company have gained 4.6% compared with the industry's growth of 1.3%.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Crown Castle Inc. (CCI - Free Report) and Prologis (PLD - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CCI’s 2026 FFO per share is pegged at $4.43, which indicates year-over-year growth of 1.6%.
The consensus estimate for PLD’s full-year FFO per share is pinned at $6.14, which calls for an increase of 5.7% from the year-ago period.
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.
BOSTON--(BUSINESS WIRE)--BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, today announced the release of BXP’s 2025 Sustainability & Impact Report.
2025 highlights include:
Improving energy efficiency by achieving an energy intensity reduction of 38% below a 2008 base year Achieving carbon-neutral operations for greenhouse gas emissions scopes 1 and 2 Initiating 2.1 million square feet of retro-commissioning, bringing our three-year retro-commissioning program total to 15.3 million square feet Completing a major heat recovery retrofit at 601 Lexington Avenue in New York, NY, as the first company in the cohort to fulfill obligations under NYSERDA’s Empire Building Challenge Progressing contracted clean energy supply with the construction phase commencement of a 20 MW solar project, from which we will procure clean power under a power purchase agreement “Excellence and leadership in sustainability is important to our clients, communities, and capital providers,” said Owen Thomas, Chairman & CEO, BXP. “Delivering measurable impact for our stakeholders is central to our strategy and a key driver of our ongoing success.”
“In 2025, we remained focused on managing energy-related operating expenses, advancing carbon-neutral operations, and further differentiating BXP’s premier workplaces. I’m proud of the progress our teams delivered and grateful for the talented professionals whose expertise made it possible. These achievements reflect a disciplined, performance-driven approach to operations and capital allocation, positioning BXP to navigate evolving regulatory requirements and client expectations,” said Ben Myers, SVP, Sustainability, BXP.
BXP’s 2025 Sustainability & Impact Report provides details on BXP’s approach, goals, key performance indicators, leadership, and reporting methodologies related to sustainability, social impact, and governance. The complete report is available under the Commitment section of our website at www.bxp.com.
BXP’s commitment to sustainability and impact has been recognized by numerous industry groups and rankings, including being listed as a responsible and sustainable company by multiple national publications. BXP was again named a Best in Building Health winner by the Center for Active Design. BXP was also recognized as an inaugural Platinum-level Green Lease Leader by the Institute for Market Transformation and the U.S. Department of Energy and was named a Sustainalytics Low Carbon Leader and S&P Global Sustainability Yearbook Member.
About BXP
BXP, Inc. (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 55 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). As of December 31, 2025, BXP’s portfolio, including properties owned by unconsolidated joint ventures, totaled 52.6 million square feet and 179 properties, including eight properties under construction or redevelopment. For more information, visit www.bxp.com or follow us on LinkedIn or Instagram.
Key Takeaways BXP is expected to report Q1 revenue and FFO declines when it announces results on April 28.BXP may see leasing gains from strong office demand and flight-to-quality trends in premium spaces.BXP faces margin pressure from higher operating, redevelopment costs and competitive leasing conditions. BXP, Inc. (BXP - Free Report) is slated to report first-quarter 2026 results on April 28, after market close. The company’s quarterly results are likely to display a year-over-year decline in revenues and funds from operations (FFO) per share.
In the last reported quarter, this office real-estate investment trust (REIT) reported FFO per share of $1.76, which missed the Zacks Consensus Estimate of $1.80. The quarterly results reflected higher expenses impacting the performance, though revenues improved year over year.
Over the preceding four quarters, BXP’s FFO per share surpassed the Zacks Consensus Estimate twice and missed in the remaining period, the average beat being 0.18%. This is depicted in the graph below:
US Office Market in Q1Per a Cushman & Wakefield report, U.S. office demand remained resilient in the first quarter of 2026 amid macro uncertainty. The healthy demand for office spaces led to improved leasing and occupancy fundamentals. With new construction taking a back seat, vacancy is nearing an inflection point. To fill in gaps owing to the declining supply, the sublease market is witnessing renewed interest. To adapt to the changing customer needs and tastes, obsolete offices are increasingly being renovated, converted or demolished.
With high demand, net absorption turned positive in approximately half of the U.S. markets. Though negative in the first quarter, the four-quarter rolling net absorption exceeded 5.2 million square feet (msf), the highest since the pandemic. The national sublease inventory declined for the eighth consecutive quarter, down 3.4% quarter on quarter and 13.6% year on year.
High-quality office space demand has been an outperformer across the markets, with Class A net absorption at 1.4 msf in the first quarter of 2026 and the four-quarter rolling nearly at 18.7 msf. Out of 91 markets tracked by Cushman, 47 were on a positive trajectory. While the ongoing AI frenzy led this push in office demand, the same remained strong across sectors, including finance, hospitality, manufacturing, professional services and distribution/logistics.
On the supply front, the construction pipeline has reduced 86% from 2020, down 4.2% quarter on quarter to 18.6 msf. New deliveries stood at a meager 3 msf, being the third lowest quarterly total in the past 14 years. As the new supply is on a downtick, a shrinking inventory is giving impetus to this high demand, with vacancy remaining flat at 20.2%, up just 5 basis points (bps) quarterly. Class A office has passed peak vacancy as available space shrank 4 bps quarter on quarter while falling 30 bps year over year.
Factors at Play and Q1 Projections for BXPAmid improving U.S. office fundamentals, BXP is well-positioned to benefit from the ongoing flight-to-quality trend, with tenants increasingly favoring premium, well-located office spaces. This, along with return-to-office mandates, is likely to have driven healthy leasing activity across its portfolio in the first quarter.
However, some pressure points persist. Competitive leasing conditions and higher operating and redevelopment costs tied to asset repositioning efforts could have tempered margin growth.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $801.4 million, implying a 1.2% decrease from the prior-year quarter’s reported number.
BXP’s activities in the to-be-reported quarter were inadequate in garnering analysts’ confidence. The Zacks Consensus Estimate for first-quarter FFO per share has moved southward to $1.58 over the past month. It suggests a 3.7% decline from the year-ago quarter’s tally.
What Our Quantitative Model Predicts for BXPOur proven model predicts a surprise in terms of FFO per share for BXP this quarter. 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.
BXP has an Earnings ESP of +0.17% and currently carries a Zacks Rank of 3. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a LookHere are two other stocks from the broader REIT sector — Ventas (VTR - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.
Ventas, scheduled to report quarterly numbers on April 27, has an Earnings ESP of +0.62% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins Properties, slated to release quarterly numbers on April 29, has an Earnings ESP of +0.94% 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.
VICI Properties (NYSE:VICI – Get Free Report) and BXP (NYSE:BXP – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.
Profitability This table compares VICI Properties and BXP’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets VICI Properties 69.28% 10.02% 6.01% BXP 7.95% 3.59% 1.07% Dividends VICI Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.3%. BXP pays an annual dividend of $2.80 per share and has a dividend yield of 4.8%. VICI Properties pays out 69.0% of its earnings in the form of a dividend. BXP pays out 160.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VICI Properties has raised its dividend for 4 consecutive years. VICI Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership 97.7% of VICI Properties shares are held by institutional investors. Comparatively, 98.7% of BXP shares are held by institutional investors. 0.3% of VICI Properties shares are held by company insiders. Comparatively, 1.5% of BXP shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk VICI Properties has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, BXP has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Valuation & Earnings This table compares VICI Properties and BXP”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio VICI Properties $4.01 billion 7.59 $2.78 billion $2.61 10.90 BXP $3.48 billion 2.63 $276.80 million $1.74 33.20 VICI Properties has higher revenue and earnings than BXP. VICI Properties is trading at a lower price-to-earnings ratio than BXP, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings This is a breakdown of current ratings and recommmendations for VICI Properties and BXP, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score VICI Properties 0 6 7 0 2.54 BXP 0 11 10 0 2.48 VICI Properties presently has a consensus target price of $33.42, indicating a potential upside of 17.48%. BXP has a consensus target price of $73.60, indicating a potential upside of 27.40%. Given BXP’s higher possible upside, analysts plainly believe BXP is more favorable than VICI Properties.
Summary VICI Properties beats BXP on 11 of the 17 factors compared between the two stocks.
About VICI Properties (Get Free Report)
VICI Properties Inc. is an S&P 500 experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, three of the most iconic entertainment facilities on the Las Vegas Strip. VICI Properties owns 93 experiential assets across a geographically diverse portfolio consisting of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio is comprised of approximately 127 million square feet and features approximately 60,300 hotel rooms and over 500 restaurants, bars, nightclubs and sportsbooks. Its properties are occupied by industry-leading gaming, leisure and hospitality operators under long-term, triple-net lease agreements. VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including Bowlero, Cabot, Canyon Ranch, Chelsea Piers, Great Wolf Resorts, Homefield, and Kalahari Resorts. VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip. VICI Properties’ goal is to create the highest quality and most productive experiential real estate portfolio through a strategy of partnering with the highest quality experiential place makers and operators.
About BXP (Get Free Report)
Boston Properties, Inc. (NYSE: BXP) (BXP or the Company) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets – Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by joint ventures, BXP's portfolio totals 53.3 million square feet and 188 properties, including 10 properties under construction/redevelopment. BXP's properties include 167 office properties, 14 retail properties (including two retail properties under construction/redevelopment), six residential properties (including one residential property under construction) and one hotel. BXP is well-known for its inhouse building management expertise and responsiveness to clients' needs. BXP holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner. BXP has earned a twelfth consecutive GRESB Green Star recognition and the highest GRESB 5-star Rating. BXP, an S&P 500 company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.
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Exceeded the Midpoint of Guidance for Q1; Executed More Than 1.1 Million SF of Leases in Q1; Increased Total Portfolio Occupancy by 70 Basis Points; More Than 1.4 Million Square Feet of Leasing Scheduled to Commence Through the End of 2026
BOSTON--(BUSINESS WIRE)--BXP, Inc. (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, reported results today for the first quarter ended March 31, 2026.
First Quarter 2026 Financial Highlights
Revenue increased 0.8% to $872.1 million for the quarter ended March 31, 2026, compared to $865.2 million for the quarter ended March 31, 2025. Net income attributable to BXP, Inc. of $101.6 million, or $0.64 per diluted share (EPS), for the quarter ended March 31, 2026, compared to $61.2 million, or $0.39 per diluted share, for the quarter ended March 31, 2025. EPS exceeded the midpoint of BXP’s guidance by $0.31 per diluted share primarily due to gains on sales recognized in connection with the disposition activity completed in the first quarter. Funds from Operations (FFO) of $252.2 million, or $1.59 per diluted share, for the quarter ended March 31, 2026, compared to FFO of $260.6 million, or $1.64 per diluted share, for the quarter ended March 31, 2025. FFO for the first quarter exceeded the midpoint of BXP’s guidance by $0.02 primarily due to portfolio outperformance. Guidance
BXP provided guidance for second quarter 2026 EPS of $0.44 - $0.46 and FFO of $1.69 - $1.71 per diluted share, and updated guidance for full year 2026 EPS of $2.15 - $2.29 and FFO of $6.90 - $7.04 per diluted share.
The midpoint of full year 2026 guidance for EPS increased by $0.04 per diluted share primarily due to gains on sales recognized in connection with the disposition activity and better-than-projected portfolio performance.
The midpoint of full year 2026 guidance for FFO increased by $0.01 per diluted share primarily due to better-than-projected portfolio performance.
See “EPS and FFO per Share Guidance” below.
Leasing & Occupancy
Executed 68 leases in the first quarter totaling more than 1.1 million square feet with a weighted-average lease term of 8.7 years. Notable leasing includes: approximately 140,000 square feet of leases at 360 Park Avenue South in New York City, NY, bringing the leased percentage of the building to 90%, and approximately 104,000 square feet of leases at 680 Folsom Street in San Francisco, CA, bringing the leased percentage of the building to 92%. For the first quarter, BXP’s CBD portfolio of premier workplaces was 89.9% occupied and 93.4% leased (including vacant space for which we have signed leases that have not yet commenced revenue recognition in accordance with GAAP). Approximately 90.0% of BXP’s Share of annualized rental obligations is derived from clients located in our CBD portfolio, underscoring the strength of BXP’s strategy to invest in the highest quality buildings in dynamic urban gateway markets. BXP’s total portfolio occupancy for the first quarter was 87.4%, an increase of 70 basis points from Q4 2025. Total portfolio leased percentage was 90.9% (including vacant space for which we have signed leases that have not yet commenced revenue recognition in accordance with GAAP), an increase of 150 basis points from Q4 2025. The spread between leased and occupied square footage has grown to 350 basis points, representing approximately 1.6 million square feet of leases yet to commence, of which approximately 90% is expected to commence throughout 2026, consistent with the trajectory outlined at our Investor Day in September 2025. Transactions
Consistent with the strategic asset sales plan outlined at our Investor Day, BXP has generated approximately $1.2 billion of aggregate net proceeds from completed asset sales to date, including approximately $180.0 million since our last earnings call on January 28, 2026, further enhancing balance sheet flexibility and supporting our capital needs and strategic priorities. During the first quarter, we completed the sales of North First Business Park in San Jose, CA, a land parcel in Rockville, MD, The Lofts at Atlantic Wharf in Boston, MA, and BXP’s ownership interest in each of Gateway Commons in South San Francisco, CA and 7750 Wisconsin Avenue in Bethesda, MD. The aggregate gross proceeds of these residential, land and non-strategic office sales totaled approximately $495.7 million, resulting in net proceeds of approximately $339.0 million and gains on sales of real estate and our investment in joint ventures of $54.7 million, in each case based on BXP’s share. EPS and FFO per Share Guidance:
BXP’s guidance for the second quarter and full year 2026 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in this release and those referenced during the related conference call. The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions not under contract as of the date hereof, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may fluctuate as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.
Second Quarter 2026
Full Year 2026
Low
High
Low
High
Projected EPS (diluted)
$
0.44
$
0.46
$
2.15
$
2.29
Add:
Projected Company share of real estate depreciation and amortization
1.29
1.29
5.10
5.10
Projected Company share of (gains)/losses on sales of real estate, gain on investment from unconsolidated joint venture and impairments
(0.04
)
(0.04
)
(0.35
)
(0.35
)
Projected FFO per share (diluted)
$
1.69
$
1.71
$
6.90
$
7.04
The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter ended March 31, 2026. In the opinion of management, BXP has made all adjustments considered necessary for a fair statement of these reported results.
BXP will host a conference call on Wednesday, April 29, 2026 at 10:00 AM Eastern Time, open to the general public, to discuss the first quarter results and earnings guidance, provide a business update, and discuss other business matters that may be of interest to investors. Participants who would like to join the call and ask a question may register at https://register-conf.media-server.com/register/BI2c9150dbdfd1462e81d510e93738b5eb to receive the dial-in numbers and unique PIN to access the call. There will also be a live audio, listen-only webcast of the call, which may be accessed in the Investors section of BXP’s website at https://investors.bxp.com/events-webcasts. Shortly after the call, a replay of the call will be available on BXP’s website at https://investors.bxp.com/events-webcasts for up to twelve months following the call.
Additionally, a copy of BXP’s first quarter 2026 “Supplemental Operating and Financial Data” and this press release are available in the Investors section of BXP’s website at investors.bxp.com.
BXP, Inc. (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 55 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). As of March 31, 2026, including properties owned by unconsolidated joint ventures, BXP’s portfolio totals 50.4 million square feet and 164 properties, including six properties under construction/redevelopment. For more information about BXP, please visit our website or follow us on LinkedIn or Instagram.
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will,” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond BXP’s control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the risks and uncertainties related to adverse changes in general economic and capital market conditions, including continued inflation, elevated interest rates, supply chain disruptions, dislocation and volatility in capital markets, potential longer-term changes in consumer and client behavior resulting from the severity and duration of any downturn in the U.S. or global economy, general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on favorable terms, sustained changes in client preferences and space utilization, dependence on clients’ financial condition, and competition from other developers, owners and operators of real estate), the impact of adverse political conditions, including policy changes by the U.S. Government, such as the direct and indirect negative impacts that new and increased tariffs may have on (1) our current and prospective clients and their demand for office space and (2) the costs and availability of construction materials and the economic returns on our construction and development activities, and prolonged government shutdowns or disruptions, the impact of geopolitical conflicts, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on BXP’s accounting policies and on period-to-period comparisons of financial results, the uncertainties of costs to comply with regulatory changes and other risks and uncertainties detailed from time to time in BXP’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance, or achievements. BXP does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as otherwise required by law.
Financial tables follow.
BXP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31,
2026
December 31,
2025
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost
$
26,256,207
$
26,248,130
Construction in progress
1,626,073
1,475,257
Land held for future development
493,212
518,492
Right of use assets - finance leases
372,476
372,470
Right of use assets - operating leases
321,030
325,841
Less: accumulated depreciation
(8,170,334
)
(8,040,311
)
Total real estate
20,898,664
20,899,879
Cash and cash equivalents
512,783
1,478,206
Cash held in escrows
68,471
79,060
Investments in securities
42,072
44,614
Tenant and other receivables, net
90,137
92,625
Note receivable, net
10,071
9,373
Related party note receivables, net
31,447
28,346
Sales-type lease receivable, net
15,921
15,672
Accrued rental income, net
1,558,226
1,538,515
Deferred charges, net
830,917
847,690
Prepaid expenses and other assets
188,819
108,105
Investments in unconsolidated joint ventures
854,722
999,309
Assets held for sale
—
24,770
Total assets
$
25,102,250
$
26,166,164
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net
$
4,280,639
$
4,280,067
Unsecured senior notes, net
8,808,674
9,806,100
Unsecured exchangeable senior notes, net
977,387
976,263
Unsecured line of credit
—
—
Unsecured term loans, net
797,309
797,053
Unsecured commercial paper
750,000
750,000
Lease liabilities - finance leases
357,039
360,039
Lease liabilities - operating leases
387,481
389,213
Accounts payable and accrued expenses
418,443
480,017
Dividends and distributions payable
124,018
123,753
Accrued interest payable
124,068
125,345
Other liabilities
352,813
386,074
Total liabilities
17,377,871
18,473,924
Commitments and contingencies
—
—
Redeemable deferred stock units
6,058
7,538
Equity:
Stockholders’ equity attributable to BXP, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding
—
—
Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued or outstanding
—
—
Common stock, $0.01 par value, 250,000,000 shares authorized, 158,754,863 and 158,627,198 issued and 158,675,963 and 158,548,298 outstanding at March 31, 2026 and December 31, 2025, respectively
1,587
1,585
Additional paid-in capital
6,843,822
6,836,243
Dividends in excess of earnings
(1,684,492
)
(1,674,995
)
Treasury common stock at cost, 78,900 shares at March 31, 2026 and December 31, 2025
(2,722
)
(2,722
)
Accumulated other comprehensive loss
(6,082
)
(12,921
)
Total stockholders’ equity attributable to BXP, Inc.
5,152,113
5,147,190
Noncontrolling interests:
Common units of the Operating Partnership
583,922
566,563
Property partnerships
1,982,286
1,970,949
Total equity
7,718,321
7,684,702
Total liabilities and equity
$
25,102,250
$
26,166,164
BXP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended March 31,
2026
2025
(in thousands, except for per share amounts)
Revenue
Lease
$
818,156
$
811,102
Parking and other
30,814
30,242
Hotel
9,101
9,597
Development and management services
9,207
9,775
Direct reimbursements of payroll and related costs from management services contracts
4,870
4,499
Total revenue
872,148
865,215
Expenses
Operating
Rental
344,082
331,578
Hotel
7,982
7,565
General and administrative
59,341
52,284
Payroll and related costs from management services contracts
4,870
4,499
Transaction costs
129
768
Depreciation and amortization
227,967
220,107
Total expenses
644,371
616,801
Other income (expense)
Income (loss) from unconsolidated joint ventures
35,413
(2,139
)
Gains on sales of real estate
13,402
—
Loss on sales-type lease
—
(2,490
)
Interest and other income (loss)
8,885
7,750
Losses from investments in securities
(566
)
(365
)
Unrealized gain (loss) on non-real estate investments
188
(483
)
Loss from early extinguishment of debt
—
(338
)
Interest expense
(152,093
)
(163,444
)
Net income
133,006
86,905
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships
(19,869
)
(18,749
)
Noncontrolling interest—common units of the Operating Partnership
(11,561
)
(6,979
)
Net income attributable to BXP, Inc.
$
101,576
$
61,177
Basic earnings per common share attributable to BXP, Inc.
Net income
$
0.64
$
0.39
Weighted average number of common shares outstanding
158,555
158,202
Diluted earnings per common share attributable to BXP, Inc.
Net income
$
0.64
$
0.39
Weighted average number of common and common equivalent shares outstanding
159,056
158,632
BXP, INC.
FUNDS FROM OPERATIONS (1)
(Unaudited)
Three months ended March 31,
2026
2025
(in thousands, except for per share amounts)
Net income attributable to BXP, Inc.
$
101,576
$
61,177
Add:
Noncontrolling interest - common units of the Operating Partnership
11,561
6,979
Noncontrolling interests in property partnerships
19,869
18,749
Net income
133,006
86,905
Add:
Depreciation and amortization expense
227,967
220,107
Noncontrolling interests in property partnerships’ share of depreciation and amortization
(20,871
)
(20,464
)
Company’s share of depreciation and amortization from unconsolidated joint ventures
13,506
17,327
Corporate-related depreciation and amortization
(567
)
(716
)
Non-real estate related amortization
2,131
2,130
Loss on sales-type lease
—
2,490
Less:
Gains on sales of real estate
13,402
—
Gains on sales included within income (loss) from unconsolidated joint ventures
41,233
—
Unrealized gain (loss) on non-real estate investments
188
(483
)
Noncontrolling interests in property partnerships
19,869
18,749
Funds from operations (FFO) attributable to the Operating Partnership (including BXP, Inc.)
280,480
289,513
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations
28,244
28,922
Funds from operations attributable to BXP, Inc.
$
252,236
$
260,591
BXP, Inc.’s percentage share of funds from operations - basic
89.93
%
90.01
%
Weighted average shares outstanding - basic
158,555
158,202
FFO per share basic
$
1.59
$
1.65
Weighted average shares outstanding - diluted
159,056
158,632
FFO per share diluted
$
1.59
$
1.64
(1)
Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to BXP, Inc. (computed in accordance with GAAP) for gains (or losses) from sales of properties, including a change in control, impairment losses on depreciable real estate consolidated on our balance sheet, impairment losses on our investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures and real estate-related depreciation and amortization. FFO is a non-GAAP financial measure, but we believe the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO and FFO per share to be useful measures for understanding and comparing our operating results because, by excluding gains and losses related to sales or a change in control of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO per share can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies.
Our calculation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current Nareit definition or that interpret the current Nareit definition differently.
In order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income attributable to BXP, Inc. as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income attributable to BXP, Inc. (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.
