Executive Summary
Extra Space Storage reported a solid QQ3 2024 with meaningful top-line growth and robust cash generation, underscoring the resilience of the US self-storage sector. Revenue for the quarter was $854.78 million, up 14.3% year-over-year and 3.2% sequentially, while EBITDA reached $588.49 million, supporting an EBITDA margin of approximately 68.8%. Net income was $192.82 million and basic earnings per share (EPS) was $0.95, with diluted EPS of $0.91. Free cash flow generated was $462.29 million, aided by operating cash flow of $468.35 million and a relatively modest capital expenditure run rate of $6.06 million, highlighting high cash conversion from operations to shareholder distributions. The balance sheet remains heavily levered, with total debt of $12.23 billion and net debt around $12.15 billion, yet liquidity remained adequate as cash and equivalents totaled $89 million at quarter-end and funds from operations supported a sizable dividend program (dividends paid approximately $343.41 million in the period). Management commentary is not captured in the provided transcript data, limiting the inclusion of direct qualitative guidance; nonetheless, the reported metrics point to durable cash flow generation and the ability to sustain distributions given the scale of the platform and the rent/growth dynamics typical of the sector.
Key Performance Indicators
QoQ: -0.66% | YoY:-14.47%
Key Insights
Revenue and profitability: Revenue of $854.78 million (+14.3% YoY, +3.24% QoQ); Gross profit $628.235 million with a gross margin of ~73.5% for the quarter; Operating income $302.739 million (operating margin ~35.4%); Net income $192.818 million (net margin ~22.6%); EPS $0.95 (non-diluted) / $0.91 (diluted)....
Financial Highlights
Revenue and profitability: Revenue of $854.78 million (+14.3% YoY, +3.24% QoQ); Gross profit $628.235 million with a gross margin of ~73.5% for the quarter; Operating income $302.739 million (operating margin ~35.4%); Net income $192.818 million (net margin ~22.6%); EPS $0.95 (non-diluted) / $0.91 (diluted).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
854.78M |
14.27% |
3.24% |
| Gross Profit |
628.24M |
-14.29% |
2.76% |
| Operating Income |
302.74M |
-14.47% |
-0.66% |
| Net Income |
192.82M |
2.37% |
3.74% |
| EPS |
0.95 |
-1.04% |
7.95% |
Key Financial Ratios
operatingProfitMargin
43%
operatingCashFlowPerShare
$2.21
freeCashFlowPerShare
$2.04
dividendPayoutRatio
177.7%
Management Commentary
No QQ3 2024 earnings call transcript data provided in the dataset. As a result, no management-quoted themes or context from the call can be cited here. The analysis relies on the reported financial results and the disclosed metrics.
Forward Guidance
Forward guidance is not included in the provided data. Inference based on sector trends suggests continued demand stability for self-storage, supported by rent growth and occupancy resilience in key markets. Key factors to monitor include: (1) rate of rent escalations and occupancy in core markets, (2) refinancing risk and interest expense given elevated leverage, (3) development/expansion activity and acquisitions, and (4) dividend sustainability in relation to free cash flow and capex needs. Management commentary, if disclosed elsewhere, would help calibrate expectations for 2025 and beyond.