Executive Summary
Extra Space Storage reported a solid QQ1 2025, with revenue of $839.9 million and a gross margin of 73.15%, delivering an EBITDA of $553.3 million and net income of $270.9 million (EPS $1.28). YoY revenue rose 3.12% while QoQ revenue declined marginally by 0.09%, reflecting seasonal dynamics in the portfolio. Operating income expanded 15.8% YoY and 2.29% QoQ, supported by efficient cost management and stable occupancy across the portfolio. Free cash flow was robust at $477.1 million in the quarter, with cash flow from operations of $481.4 million and capex of only $4.3 million, underscoring the business’ mature capital allocation profile and cash-generative characteristics.
Balance sheet strength is evident in a total asset base of $28.99 billion and total liabilities of $14.21 billion, with net debt of roughly $13.13 billion and debt-to-capitalization at 0.488. The company generated a cash-rich operating cadence but exhibits a modest liquidity cushion (cash and equivalents around $119.6 million at period end, cash to debt considerations) and interest coverage of 2.53x. The equity base stands at approximately $13.89 billion, indicating a solid capital-structure foundation to weather rate volatility and pursue value-accretive acquisitions.
From a market perspective, Extra Space Storage continues to exhibit leading scale within the self-storage space and a relatively favorable margin profile versus select peers. The QQ1 2025 results support a constructive longer-term view, but the company remains exposed to leverage-associated risk and potential rent/occupancy cyclicality in a competitive storage landscape. Absent explicit near-term guidance in the release, investors should monitor occupancy trends, rental rate momentum, debt maturities, and capex discipline as key drivers of the forward trajectory.
Key Performance Indicators
Key Insights
Revenue: $839.928 million (YoY +3.12%; QoQ -0.09%).
Gross Profit: $614.38 million; Gross Margin: 73.15% (YoY +1.02%; QoQ -14.19%).
Operating Income: $388.73 million; Operating Margin: 46.28% (YoY +15.75%; QoQ +2.29%).
Net Income: $270.88 million; Net Margin: 32.25% (YoY +27.10%; QoQ +3.20%).
EPS: $1.28 (YoY +26.73%; QoQ +3.23%).
EBITDA: $553.26 million; EBITDA Margin (EBITDA / Revenue): ~65.75% (from reported margins).
Cash Flow: Net cash provided by operating activities $481.40 million; Free ca...
Financial Highlights
Revenue: $839.928 million (YoY +3.12%; QoQ -0.09%).
Gross Profit: $614.38 million; Gross Margin: 73.15% (YoY +1.02%; QoQ -14.19%).
Operating Income: $388.73 million; Operating Margin: 46.28% (YoY +15.75%; QoQ +2.29%).
Net Income: $270.88 million; Net Margin: 32.25% (YoY +27.10%; QoQ +3.20%).
EPS: $1.28 (YoY +26.73%; QoQ +3.23%).
EBITDA: $553.26 million; EBITDA Margin (EBITDA / Revenue): ~65.75% (from reported margins).
Cash Flow: Net cash provided by operating activities $481.40 million; Free cash flow $477.14 million; Capital expenditures $4.27 million; Dividends paid $344.20 million.
Balance Sheet: Total assets $28.99 billion; Total liabilities $14.21 billion; Total debt $13.25 billion; Net debt $13.13 billion; Cash and cash equivalents $119.56 million; Shareholders’ equity $13.89 billion.
Liquidity/Leverage: Current ratio 1.23; Interest coverage 2.53x; Debt-to-capitalization 0.488; Debt-to-equity 0.954; Cash ratio ~0.0846; Cash flow to debt 0.0363.
Valuation/Market: Price-to-book 2.27x; Price-to-earnings 29.03x; EV/EBITDA 80.59x; Dividend yield 1.09%; Price-to-sales 37.45x; Free cash flow per share $2.25; Operating cash flow per share $2.27.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
839.93M |
3.12% |
-0.09% |
| Gross Profit |
614.38M |
1.02% |
-14.19% |
| Operating Income |
388.73M |
15.75% |
2.29% |
| Net Income |
270.88M |
27.10% |
3.20% |
| EPS |
1.28 |
26.73% |
3.23% |
Key Financial Ratios
operatingProfitMargin
46.3%
operatingCashFlowPerShare
$2.27
freeCashFlowPerShare
$2.25
dividendPayoutRatio
127.1%
Management Commentary
Note: The earnings transcript data for QQ1 2025 was not provided in the materials. As a result, there are no management quotes available to quote or group by theme. If transcripts become available, a subsequent update will include themes such as strategy execution, operations, market conditions, and capital allocation discussions with direct quotes.
Forward Guidance
No formal QQ1 2025 forward guidance was published in the provided materials. Based on the QA and sector dynamics, we expect management to continue emphasizing disciplined capital allocation, occupancy stabilization, and rent growth optimization. Near-term factors to monitor include: (1) occupancy trends and average rent per occupied unit across major markets, (2) debt maturity schedule and refinancing risk in a higher-for-longer rate environment, (3) capex efficiency and potential accretive acquisitions, (4) continued progress on cost controls and operating leverage. Given the current leverage profile, any guidance around targeted leverage metrics or FFO/ AFFO growth would be material to assess the sustainability of the dividend and the ability to fund growth without additional equity issuance.