EXR

A month has gone by since the last earnings report for Extra Space Storage (EXR). Shares have lost about 5.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Extra Space Storage due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. Extra Space Storage reported second-quarter 2026 core FFO per share of $2.15, beating the Zacks Consensus Estimate of $2.06 by 4.4%. Core FFO per share increased 4.9% year over year from $2.05. Quarterly revenues of $874.2 million surpassed the consensus estimate of $867.4 million by 0.8% and rose 3.9% year over year. Results benefited from higher same-store revenues and lower same-store operating expenses, which drove 3.5% growth in same-store NOI. Property rental revenues increased 3.5% year over year to $746.2 million. Tenant reinsurance revenues rose 5.1% to $93.1 million, while management fees and other income advanced 8.9% to $34.9 million. Total expenses increased 3.3% to $482 million. Property operations expenses rose 1.8% to $231.7 million, tenant reinsurance expenses climbed 2.2% to $17.3 million and general and administrative expenses increased 5.3% to $47.3 million. Depreciation and amortization expenses grew 4.7% to $185.6 million. Same-store revenues increased 2.4% year over year to $690.2 million. Net rental income rose 2.5% to $664.9 million, while other income declined 1.5% to $25.3 million. Same-store operating expenses decreased 0.5% to $194.1 million, supporting NOI of $496.1 million. Payroll and benefits, marketing, property operating expenses and repairs and maintenance declined during the second quarter. Ending same-store occupancy was 94.2%, down from 94.4% a year earlier, while average same-store occupancy edged down to 94% from 94.1%. During the second quarter, Extra Space Storage purchased 17 operating stores and acquired its joint venture partner's ownership interest in one consolidated joint venture for a total cost of $90.7 million. Extra Space Storage originated $140.6 million in mortgage and mezzanine bridge loans during the reported quarter. Outstanding bridge-loan balances were approximately $1.5 billion at quarter-end, with another $86.3 million closed after the quarter or under agreement to close in 2026. Extra Space Storage added 67 stores or 48 stores on a net basis to its third-party management platform during the second quarter. As of June 30, 2026, it managed 1,964 stores for third-party owners and 409 stores in unconsolidated joint ventures. The company owned or operated 4,410 self-storage stores across 42 states and Washington, D.C. Its stores comprised approximately 3 million units and 341 million square feet of rentable space. Extra Space ended the second quarter with $695.2 million in cash and cash equivalents, up from $139 million in the prior quarter. Its percentage of fixed-rate debt to total debt was 78.5%. After accounting for variable-rate receivables, the effective fixed-rate debt to total debt was 88.4%. The combined weighted average interest rate was 4.3%, with a weighted average maturity of approximately four years. In June, Extra Space Storage priced a public bond offering, issuing $550 million of 4.9% unsecured senior notes due in 2032. The company had $850 million outstanding under its $1 billion commercial paper program. Management raised its 2026 core FFO guidance to $8.25-$8.40 per share from the prior range of $8.05-$8.35. The updated outlook assumes same-store revenue growth of 1-2% compared with the previous projection of negative 0.5% to positive 1.5%. The company now expects same-store expense growth of 1-2%, down from 2-3.5% and same-store NOI growth of 0.5-2.5%, up from the earlier range of negative 2.25% to positive 1.25%. Its acquisition assumption was increased to $300 million from $200 million. Since the earnings release, investors have witnessed a flat trend in estimates revision. Currently, Extra Space Storage has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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. Extra Space Storage has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Extra Space Storage is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, SL Green (SLG), a stock from the same industry, has gained 9%. The company reported its results for the quarter ended June 2026 more than a month ago. SL Green reported revenues of $171.85 million in the last reported quarter, representing a year-over-year change of +16.5%. EPS of -$0.38 for the same period compares with $1.63 a year ago. SL Green is expected to post earnings of $1.42 per share for the current quarter, representing a year-over-year change of -10.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +12.9%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for SL Green. Also, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Extra Space Storage Inc (EXR) : Free Stock Analysis Report SL Green Realty Corporation (SLG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Extra Space Storage has delivered a 31.4% total return over the past three years, while the latest intrinsic value estimate from a Discounted Cash Flow (DCF) model points to the shares trading at about an 11.1% discount to that estimate. Traditional market multiples suggest the stock is priced roughly in line with peers. A 31.4% three year return signals that shareholders have already seen meaningful gains, which can reduce the margin of safety for new buyers if the market has already priced in much of the good news. Future cash flow from the storage portfolio and the company’s ability to manage debt and funding needs can support or weaken the case that the current price still leaves room for value to be realised. Extra Space Storage screens as undervalued on 3 of 6 valuation checks, which is a mixed picture rather than a clear bargain or clear overvaluation. You can see the breakdown at 3/6 valuation checks. The issue now is whether the market price already reflects the key cash flow and risk assumptions behind that Discounted Cash Flow intrinsic value estimate, or if there is still a reasonable gap for investors in Extra Space Storage. Extra Space Storage delivered 10.9% returns over the last year. See how this stacks up to the rest of the Specialized REITs industry. The Discounted Cash Flow (DCF) model uses Extra Space Storage’s projected cash generation to estimate what the stock could be worth today. For this company, the model is built on adjusted funds from operations and uses a 2 stage Free Cash Flow to Equity approach. Extra Space Storage produced around $1.75b of free cash flow over the last twelve months, and the DCF model assumes that free cash flow continues to grow from this base rather than rely on aggressive jump shifts. On these assumptions, the intrinsic value comes out at about $166 per share in dollar terms. Compared with the current market price, that implies the stock trades at roughly an 11.1% discount. On this discounted cash flow view, Extra Space Storage stock currently appears undervalued relative to its estimated intrinsic value. Our Discounted Cash Flow (DCF) analysis suggests Extra Space Storage is undervalued by 11.1%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Extra Space Storage. The P/E ratio is a useful way to compare Extra Space Storage with other listed storage REITs that also report steady earnings. On this measure, Extra Space Storage trades on about 32.7x earnings, which is higher than the Specialized REITs industry average of around 16.6x. It is, however, below the broader peer group average of roughly 53.9x. A more tailored “fair” P/E for Extra Space Storage that accounts for its size, sector and risk profile comes out at about 34.3x. That is only slightly above the current 32.7x multiple, which suggests the stock is priced close to what this framework would expect rather than at a clear discount or premium. On the P/E multiple, Extra Space Storage stock appears roughly fairly valued compared with both peers and the modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the valuation work on Extra Space Storage leaves off by spelling out which assumptions on growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price. Each one sets out Extra Space Storage's fair value as a thesis about the business that you can track over time, and they live on Simply Wall St's Community page. You can add your voice to the Simply Wall St community by sharing a Narrative on Extra Space Storage that sets out your numbers based view on where its growth, margins and execution go from here. Put a clear thesis on record and see how it holds up as new results emerge. Do you think there's more to the story for Extra Space Storage? Head over to our Community to see what others are saying! For Extra Space Storage, the Discounted Cash Flow (DCF) work points to an intrinsic value above the current share price, while the P/E and other checks suggest the stock is roughly in line with peers rather than a clear bargain. That mixed picture means the stock does not screen as obviously cheap or clearly expensive. What matters most from here is whether the company can sustain the cash generation that underpins the DCF estimate without stretching its balance sheet, since that will decide whether the current valuation reflects a cautious market or a fair read on the risks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EXR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This story was originally published on CRE Daily. Join 70,000+ commercial real estate professionals getting daily news, market insights, and industry analysis delivered straight to their inbox with the free CRE Daily newsletter. The top three US self-storage REITs released Q2 2026 results signaling steady fundamentals with some divergence in NOI growth and expense trends. CubeSmart, Extra Space, and Public Storage reported varied same-store metrics, with Extra Space outperforming in NOI while Public Storage closed a major $10.5B acquisition. Operators are signaling ongoing appetite for property expansion and management platforms, despite rising operating costs and some revenue headwinds. CubeSmart, Extra Space Storage, and Public Storage reported Q2 2026 earnings, according to Inside Self-Storage. Results showed steady occupancy, firmer move-in pricing, and continued efficiency efforts. Public Storage also closed its $10.5B NSA deal after the quarter ended, reshaping the competitive landscape. Steady rental demand supported high occupancy across the sector. However, rising expenses continued to pressure margins. Operators still expanded through acquisitions and third-party management despite uneven revenue growth. CubeSmart reported adjusted FFO of $0.63 per diluted share. Same-store NOI fell 0.7% year over year. Revenue declined 0.8%, while expenses rose 4.4%. Average occupancy reached 90.4%, ending the quarter at 91%. The REIT owns or manages 1,534 facilities. Extra Space increased same-store revenue 2.4% and same-store NOI 3.5%. Expenses fell 0.5%, while occupancy reached 94.2%. The company expanded its third-party management platform to 2,373 properties. It also acquired $90.7M of facilities. Public Storage posted a 74.2% same-store NOI margin. Revenue fell 0.6%, while operating costs rose 4.4%. Occupancy improved to 92.5% as move-in rents recovered from Q1. The company acquired 20 properties for $222.5M. It also announced the $10.5B NSA acquisition and a $1.2B purchase of Public Storage Canada. Operators continue balancing rising costs with expansion. CubeSmart’s property expenses increased by $7M during Q2. Higher payroll and property taxes drove the increase. Still, the company added 25 stores to its management platform. Extra Space stood apart by lowering same-store expenses while expanding operations. Meanwhile, Public Storage doubled down on scale. Its NSA acquisition expands its US footprint. The biggest operators also face tougher competition for customers in major markets, making portfolio scale increasingly valuable. Its Canadian acquisition adds 68 properties. Planned development and expansion projects could add another 4M SF. Across the sector, operators rely on acquisitions and management growth to offset rising operating costs. These earnings highlight the balancing act facing self-storage REITs in 2026. Companies continue pursuing growth while managing higher operating costs. Occupancy remained healthy across the sector. Public Storage ended Q2 at 92.5%, Extra Space at 94.2%, and CubeSmart at 91%. Revenue trends, however, diverged. Extra Space outperformed peers in same-store NOI through disciplined cost control. CubeSmart and Public Storage both faced 4.4% annual expense growth. Public Storage also reported a 0.6% revenue decline despite higher occupancy. Lower annual rent per occupied SF weighed on results. Public Storage’s NSA acquisition also reflects accelerating industry consolidation. Larger deals strengthen market leaders but increase integration risks. These results set new benchmarks for efficiency, scale, and disciplined execution. All three REITs plan to keep expanding management platforms, pursuing acquisitions, and developing new facilities. Public Storage leads with 2.8M SF under development and a strong acquisition pipeline. Extra Space and CubeSmart also entered Q3 with larger third-party management portfolios. Investors will watch expense inflation, property taxes, and rental pricing through the rest of 2026. Slower rent growth or weaker occupancy could pressure margins further. For now, sector stability depends on scale, disciplined cost control, and careful portfolio expansion. Dallas-Fort Worth Rents Dip as Apartment Supply Grows Austin Multifamily Rents Edge Up as Supply Pressures Build Texas Multifamily Supply Dips as Investors Move Ahead of Rents

This article first appeared on GuruFocus. Core FFO per Share: $2.15, representing 4.9% year-over-year growth. Same-Store Revenue Growth: 2.4% in the second quarter, accelerating from the first quarter. Same-Store NOI Growth: 3.5% year-over-year, accelerating 230 basis points from the first quarter. Same-Store Expenses: Decreased modestly year-over-year. Occupancy: Ended the quarter at 94.2%. Acquisitions: Closed 18 stores for $91 million. Bridge Loan Program: Originated $141 million in new loans; ended the quarter with approximately $1.5 billion in outstanding balances. Third-Party Management: Added 67 stores during the quarter with net growth of 48 stores; total managed portfolio of 1,964 stores. Bond Offering: Priced a $550 million bond offering at 4.9%. Full Year 2026 Core FFO Guidance: Raised to a range of $8.25 to $8.40 per share. Full Year 2026 Same-Store Revenue Guidance: Raised to a range of 1% to 2%. Full Year 2026 Same-Store NOI Guidance: Raised to a range of positive 0.5% to 2.5%. Warning! GuruFocus has detected 9 Warning Signs with EXR. Is EXR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Core FFO per share grew 4.9% year-over-year to $2.15, exceeding internal projections. Same-store revenue growth accelerated to 2.4% in Q2, driven by effective pricing and occupancy management. Same-store NOI increased 3.5% year-over-year, with expenses declining modestly due to operational efficiencies. External growth channels performed well, including $91 million in acquisitions and $141 million in bridge loan originations. Third-party management added 67 stores in Q2, with net growth of 48 stores, expanding the managed portfolio to 1,964 stores. Guidance implies potential deceleration in same-store revenue growth in the second half due to difficult comps and macro risks. Customer demand remains steady but has not improved, with no pickup in housing market or organic demand catalysts. Asset pricing in the acquisition market remains elevated, limiting attractive brokerage deals and pushing focus to proprietary pipelines. Some Sunbelt markets like Houston, Tampa, and Phoenix continue to face challenges with negative move-in rate trends. The New York City settlement and upcoming licensing requirements introduce regulatory costs and operational adjustments. Here are the key highlights from Extra Space Storage Inc (NYSE:EXR)'s Q2 2026 earnings call. Q: The same-store revenue growth in the first half of 2% is equal to the high end of your updated 2026 guidance, implying a deceleration in the back half. What would drive this deceleration, and did you change any assumptions for the back half outside of updating for LA?A: (Jeff Norman, CFO) You are correct. The high end of the range implies similar growth to the first half, while the low end implies some deceleration. This is due to more difficult year-over-year comparisons in the second half. Additionally, while we haven't seen any change in customer health, we are factoring in macro risks related to consumer confidence and inflation. We feel these risks are appropriate to include in the range, but if they don't materialize, it presents an opportunity to outperform guidance. Q: Can you provide an update on what you are seeing so far in July?A: (Joseph Margolis, CEO) July was a good month. In June, we were slightly ahead in rate year-over-year but slightly behind in occupancy. In July, the system flipped that; we are now slightly ahead in occupancy and slightly behind in rate. This is a great example of our systems using different levers to optimize performance. The net result is that we are slightly ahead of our budget for July so far. Q: Can you expand on the customer demand side of the equation? Has the top of funnel improved, or is the acceleration in fundamentals mostly driven by a moderating supply picture?A: (Joseph Margolis, CEO) Our view is that customer demand is steady. We haven't seen any pickup in the housing market or indications of more customers. However, our systems are able to capture more than our share of customers and better-quality customers. The short answer is demand is steady, performance is improving due to the continued reduction in supply, and our systems are optimizing what's available in the market. Q: Can you give us a sense of the cap rates or unlevered IRRs on the deals you closed this quarter and the competition you are seeing for institutional-quality product?A: (Noah Springer, President) The market continues to be a little expensive. Cap rates on broker deals push us towards our proprietary pipelines, such as relationship deals, managed deals, and joint ventures. The majority of the stores we closed this quarter came from a relationship deal. We are happy with the accretion from those stores and will continue to look toward our proprietary pipelines as the brokerage market remains more expensive than we prefer. Q: Do you see potential for move-in rents to move ahead year-over-year again in the back half of the year?A: (Joseph Margolis, CEO) There are many factors that can lead to revenue growth beyond just rate and occupancy, such as ECRI (existing customer rate increases) and unit mix optimization. These other tools can provide positive revenue growth even with periods of flat rate growth. Q: What are your thoughts on the New York City settlement and the new licensing and registration requirements for operators in NYC?A: (Joseph Margolis, CEO) Regarding the settlement, we vigorously disputed the claims but chose to settle for $1.7 million to avoid lengthy litigation and remove uncertainty. This matter is now behind us. On the licensing requirements, all operators will need a license by August 24th. We are prepared to file and get licensed. The requirements will apply to everyone, creating an even playing field, and we will comply with the law. Q: In the past, when the macro environment deteriorated, how quickly did you see that in actual customer behavior and impact same-store NOI?A: (Jeff Norman, CFO) It depends on the type of economic stress. In general, demand has held steady and sometimes accelerated because life transitions give rise to storage. We have not seen elevated vacate activity; in fact, our length of stay is about 1.5 months longer than last year. We haven't felt the macro risks in our customer behavior year-to-date, so if that continues, our guidance assumption could prove conservative. Q: How much further do you think you can go in terms of improving the average customer's behavior, like length of stay and churn?A: (Joseph Margolis, CEO) That's a hard question. We don't have a specific goal for length of stay, but our scale and data allow us to continually test ways to optimize performance. We continually try to improve across all these metrics and have a good track record, but I don't know how far we have to go. Q: On the expense side, what more opportunities do you have for savings, and is there a scenario where expense growth can be lower than inflation?A: (Jeff Norman, CFO) We are pleased with our expense performance. The run rates we have imply we will stay in sub-inflationary ranges for the year. Long-term, our scale advantage and efficiencies will continue to be an operational advantage. One specific example is our mid-year insurance renewal, which was very favorable and will continue to benefit results through the rest of this year and into 2027. Q: Do you think you have the mathematical ability to get back to a 3% same-store revenue number without a substantial lift in street rates in a flat occupancy world?A: (Joseph Margolis, CEO) To get to 3% without improvement in occupancy or rate would be difficult. However, we believe if supply continues to decrease and there is no significant change in customer demand, we can get back to historical levels of revenue growth between 3% and 4%. Our guidance doesn't suggest it will happen this year, but we are in the recovery stage of the storage cycle. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Extra Space Storage Inc? Here are five stocks we like better. Extra Space Storage reported strong second-quarter results: Core FFO rose 4.9% year over year to $2.15 per share, while same-store revenue growth accelerated to 2.4% and NOI growth reached 3.5%. Lower expenses, favorable insurance costs and stronger tenant-insurance income supported the outperformance. Management raised its 2026 outlook for core FFO to $8.25–$8.40 per share, same-store revenue growth to 1%–2% and same-store NOI growth to 0.5%–2.5%. The company cited stronger pricing power, customer retention and moderating new supply, while warning of tougher comparisons and macroeconomic risks in the second half. The company continued expanding through selective acquisitions, lending and management: It acquired 18 stores for $91 million, originated $141 million in bridge loans and added 48 net third-party-managed properties, ending the quarter managing 1,964 stores. The Bank of Mom and Dad Is Booming—3 Stocks to Watch Extra Space Storage (NYSE:EXR) reported second-quarter core funds from operations, or FFO, of $2.15 per share, up 4.9% from a year earlier, as same-store revenue growth accelerated and expenses declined modestly. Management said the company’s operating results exceeded its internal forecasts, prompting it to raise full-year guidance. Chief Executive Officer Joseph Margolis said same-store revenue increased 2.4% year over year in the second quarter, accelerating from the first quarter and exceeding internal projections. Same-store occupancy ended the quarter at 94.2% as the company balanced pricing and occupancy across its portfolio. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? “The pricing power we have been building over the past several quarters is now clearly flowing through our results,” Margolis said. He cited steady customer demand, strong retention among existing tenants and gradually moderating new supply as factors supporting the company’s performance. Chief Financial Officer Jeff Norman said same-store net operating income, or NOI, rose 3.5% year over year, an acceleration of 230 basis points from the first quarter. Same-store revenue growth accelerated by 70 basis points sequentially to 2.4%. → Innovative ETF Strategies That Are Paying Off This Summer Same-store expenses decreased modestly from a year earlier, with all major expense categories meeting or outperforming the company’s expectations, Norman said. He added that a favorable midyear insurance renewal contributed to lower premiums in June and should continue benefiting results through the rest of 2026 and into 2027. Ancillary businesses also helped drive the FFO outperformance. Net tenant insurance income exceeded expectations due to stronger customer penetration and lower claims volume, while interest income surpassed forecasts because of modestly higher interest rates and greater-than-modeled loan retention. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The company priced a $550 million bond offering at 4.9% at the end of June, with the transaction settling in early July. The proceeds were used to repay the company’s first bond maturity on July 1. Norman said Extra Space Storage had roughly $2 billion available on revolving credit lines, net of amounts reserved to backstop its commercial paper program. Extra Space Storage raised its full-year 2026 core FFO outlook to a range of $8.25 to $8.40 per share. It also increased its same-store revenue growth outlook by 100 basis points to 1% to 2%, while raising same-store NOI growth guidance by 200 basis points to 0.5% to 2.5%. The revised outlook assumes that Los Angeles-area pricing restrictions will create a 20- to 30-basis-point full-year headwind, compared with the company’s initial estimate of a 40-basis-point impact. Margolis said the restrictions were lifted around midyear, though the resulting benefit would not be fully immediate. Management cautioned that the second half faces more difficult comparisons. Norman said the company has not observed any deterioration in customer health, but management incorporated potential macroeconomic risks, including consumer confidence and inflation pressures, into its guidance range. July performance has been similar to June, according to management. Margolis said the company was modestly ahead of budget during July, with occupancy slightly ahead of the prior year but rates slightly below the prior-year level. In June, the relationship was reversed, with rates slightly ahead and occupancy slightly behind. Management said customer demand remains steady rather than expanding materially, as it has not seen a pickup in housing-market activity. Margolis attributed improving operating performance primarily to lower new supply and the company’s systems for capturing market share and optimizing pricing. President Noah Springer said Extra Space Storage closed on 18 stores for $91 million during the quarter, with nearly all of the transactions completed off market. The company remains active but selective in acquisitions, he said, as asset pricing remains elevated. Springer said acquisition cap rates in brokered transactions generally ranged from the high 4% area to the high 5% area, depending on market quality. The company has increasingly focused on proprietary deal sources, including relationship transactions, managed properties, joint ventures and bridge loans, where it believes it can find more attractive opportunities. Originated $141 million in bridge loans during the quarter. Ended the quarter with about $1.5 billion of outstanding bridge-loan balances. Added 67 third-party managed stores, for net growth of 48 stores in the quarter. Reported year-to-date net managed-store growth of 108 properties. Ended the quarter managing 1,964 stores, while its broader technology and operating platform supports more than 4,400 stores. Springer said the company views the current $1.5 billion bridge-loan balance as an appropriate level, though it retains flexibility to adjust it by selling or holding loans. The lending program generates interest income, management fees and tenant-insurance revenue, while also creating a potential pipeline for future acquisitions, management said. Management said longer customer stays have supported the company’s results. Norman said the average length of stay for in-place customers was about one and a half months longer than a year earlier, while Margolis said the share of customers storing due to a lack of space has increased as the share of moving-related customers declined. Margolis said approximately 76% of customers who leave do so because they no longer need storage. For customers receiving rent increases, the company provides some level of relief to about 16% of those tenants, helping retain them, he said. Geographically, management cited broad-based outperformance in markets including parts of the Midwest, Washington, D.C., Boston, Chicago, Richmond, Virginia, and San Diego. In the Sun Belt, Austin, Dallas and Miami turned positive in year-over-year new-customer move-in rates, while Houston, Tampa and Phoenix remained more difficult markets. Margolis also addressed the company’s $1.7 million settlement with New York City over claims tied to customer complaints. He said Extra Space Storage disputed the claims but chose to settle rather than pursue lengthy litigation. He said the matter was behind the company and that management did not expect broader repercussions. All self-storage operators in New York City are expected to require licenses beginning Aug. 24, according to Margolis. He said Extra Space Storage is prepared to comply with the licensing process and any accompanying operating requirements. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Extra Space Storage Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Same-store revenue and NOI acceleration was driven by the company's ability to balance rate and occupancy through sophisticated pricing systems. Management attributes improving fundamentals to steady customer demand and a gradual moderation in new supply across almost all major markets. Operational leverage was enhanced by modest year-over-year declines in same-store expenses, which management describes as sub-inflationary performance. The company is capturing a disproportionate market share by utilizing best-in-class digital marketing and technology infrastructure to attract higher-quality customers. External growth remains focused on proprietary pipelines, including off-market transactions, bridge loans, and third-party management, rather than chasing expensive brokered deals. Customer retention remains high, with the average length of stay increasing by approximately one and a half months compared to the prior year. The raised full-year FFO guidance reflects stronger-than-expected store-level performance and outperformance in ancillary businesses like tenant insurance. Updated revenue guidance assumes a potential deceleration in the second half of the year due to more difficult year-over-year comparisons and macro-economic risks. Management refined the L.A. price restriction headwind to 20-30 basis points, down from the initial 40 basis point estimate, following the mid-year lifting of regulations. The bridge loan program is expected to maintain a balance of approximately $1.5 billion, serving as a natural pipeline for future accretive acquisitions. Guidance assumes no material catalyst from the housing market, with performance instead relying on continued supply reduction and internal system optimization. The company settled a New York City regulatory claim for $1.7 million to avoid lengthy litigation, though management continues to dispute the underlying claims. New licensing and registration requirements for self-storage operators in New York City are expected to create an even playing field for all market participants. A favorable mid-year insurance renewal completed in June is expected to provide continued expense tailwinds through the remainder of 2026 and into 2027. Ancillary income outperformed due to higher tenant insurance penetration and lower-than-modeled claims volume. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that the low end of the guidance range accounts for difficult year-over-year comparisons and potential macro-economic pressure on consumer confidence. July performance has remained consistent with June, suggesting that if macro risks do not materialize, there may be further upside to the guidance. The lack of housing turnover has shifted the customer mix toward those storing due to a lack of space, who typically stay twice as long as moving-related customers. Management is focused on providing high-quality service and selective rate relief to maintain high retention levels in a low-mobility environment. Markets like Austin, Dallas, and Miami have turned positive in year-over-year move-in rates, while Houston, Tampa, and Phoenix remain more challenging. Management views the company's Sun Belt overweighting as a future growth driver once the remaining laggard markets in that region begin to accelerate. Scale advantages and efficiencies in controllable line items are expected to keep expense growth below inflation levels. The favorable insurance renewal in June will provide a structural benefit to the expense profile for the next several quarters.

SALT LAKE CITY, July 28, 2026 /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 and six months ended June 30, 2026. Highlights for the three months ended June 30, 2026: Achieved net income attributable to common stockholders of $1.25 per diluted share, representing a 5.9% increase compared to the same period in the prior year. Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $2.07 per diluted share. FFO, excluding adjustments ("Core FFO"), was $2.15 per diluted share, representing a 4.9% increase compared to the same period in the prior year. Same-store revenue increased by 2.4% and same-store expense decreased by 0.5%, resulting in a same-store net operating income ("NOI") increase of 3.5% compared to the same period in the prior year. Reported ending same-store occupancy of 94.2% as of June 30, 2026, compared to 94.4% as of June 30, 2025. Purchased 17 operating stores and acquired the ownership interest of our joint venture partner in one consolidated joint venture for a total cost of $90.7 million. Originated $140.6 million in mortgage and mezzanine bridge loans. Added 67 stores (48 stores net) to the Company's third-party management platform. As of June 30, 2026, the Company managed 1,964 stores for third parties and 409 stores in unconsolidated joint ventures, for a total of 2,373 managed stores. Paid a quarterly dividend of $1.62 per share. Highlights for the six months ended June 30, 2026: Achieved net income attributable to common stockholders of $2.39 per diluted share, representing a 2.5% decrease compared to the same period in the prior year, which included a gain from real estate assets sold in 2025. Achieved FFO of $4.04 per diluted share, and Core FFO of $4.19 per diluted share, representing a 3.5% increase compared to the same period in the prior year. Increased same-store revenue by 2.0% and same-store expense increased by 1.1%, resulting in a same-store NOI increase of 2.4% compared to the same period in the prior year. Purchased 18 operating stores and acquired the ownership interest of our joint venture partner in one consolidated joint venture for a total cost of $103.2 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. Originated $146.1 million in mortgage and mezzanine bridge loans and sold $30.8 million in mortgage bridge loans. Added 151 stores (108 stores net) to the Company's third-party management platform. Joe Margolis, CEO of the Company, stated: "Our operating systems and platform continue to optimize performance as we get deeper into the storage sector's recovery. Core FFO growth of 4.9% for the quarter was driven by strong occupancy, improving store performance, and smart expense control — with meaningful contributions from our ancillary businesses, including third-party management and bridge lending. We are never satisfied with, and always seek to improve, our technology, systems, process, and people, and it is gratifying to see that commitment reflected in our results." FFO Per Share: The following table (unaudited) outlines the Company's FFO and Core FFO for the three and six months ended June 30, 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): Operating Results and Same-Store Performance: The following table (unaudited) outlines the Company's same-store performance for the three and six months ended June 30, 2026 and 2025 (amounts shown in thousands, except store count data)1: Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three and six months ended June 30, 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). 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: The Company did not dispose of any properties during the three months ended June 30, 2026, and currently has six properties held for sale. Bridge Loans: During the three months ended June 30, 2026, the Company originated $140.6 million in bridge loans. Outstanding balances of the Company's bridge loans were approximately $1.5 billion at the end of the quarter. The Company has an additional $86.3 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 June 30, 2026, the Company managed 1,964 stores for third-party owners and 409 stores owned in unconsolidated joint ventures, for a total of 2,373 stores under management. The Company is the largest self-storage management company in the United States. Balance Sheet: During the three months ended June 30, 2026, the Company did not issue any shares on its ATM program, and as of June 30, 2026, the Company had $800.0 million available for issuance. Likewise, the Company did not repurchase any shares of common stock using its stock repurchase program during the quarter. As of June 30, 2026, the Company had authorization to purchase up to $349.0 million under the program. On June 24, 2026, the Company priced a public bond offering issuing $550.0 million aggregate principal amount of 4.90% unsecured senior notes due 2032. As of June 30, 2026, the Company's commercial paper program had total capacity of $1.0 billion, with $850.0 million in outstanding issuances. As of June 30, 2026, the Company's percentage of fixed-rate debt to total debt was 78.5%. Net of the impact of variable rate receivables, the effective fixed-rate debt to total debt was 88.4%. The weighted average interest rates of the Company's fixed and variable-rate debt were 4.3% and 4.6%, respectively. The combined weighted average interest rate was 4.3% with a weighted average maturity of approximately 4.0 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 June 30, 2026, the Company paid a second quarter common stock dividend of $1.62 per share to stockholders of record at the close of business on June 15, 2026. Outlook: The following table outlines the Company's Core FFO estimates and assumptions for the year ending December 31, 20261. 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, July 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/293950168?pwd=CHtG2oiN 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 July 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, or January 1, 2025. 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 June 30, 2026, the Company owned and/or operated 4,410 self-storage stores in 42 states and Washington, D.C. The Company's stores comprise approximately 3.0 million units and approximately 341.0 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/extra-space-storage-inc-reports-2026-second-quarter-results-302836983.html

Extra Space Storage (EXR) reported $874.15 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 3.9%. EPS of $2.15 for the same period compares to $1.25 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $867.44 million, representing a surprise of +0.77%. The company delivered an EPS surprise of +4.37%, with the consensus EPS estimate being $2.06. 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: $746.16 million compared to the $738.53 million average estimate based on two analysts. The reported number represents a change of +3.5% year over year. Same-store rental revenues: $690.19 million versus $683.36 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +3.7% change. Revenues- Tenant reinsurance: $93.08 million compared to the $91.34 million average estimate based on two analysts. The reported number represents a change of +5.1% year over year. Revenues- Management fees and other income: $34.9 million versus the two-analyst average estimate of $34.59 million. The reported number represents a year-over-year change of +8.9%. Net income (loss) per common share - Diluted: $1.25 versus the two-analyst average estimate of $1.15. Net operating income- Same store properties: $496.08 million compared to the $481.24 million average estimate based on two analysts. Equity in earnings and dividend income from unconsolidated real estate entities: $15.8 million versus the two-analyst average estimate of $16.02 million. View all Key Company Metrics for Extra Space Storage here>>> Shares of Extra Space Storage have remained unchanged over the past month versus the Zacks S&P 500 composite's +1.7% 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Extra Space Storage Inc (EXR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Vornado Realty Trust VNO is scheduled to report second-quarter 2026 results on Aug. 3, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues as well as funds from operations (FFO) per share. In the last reported quarter, this New York-based real estate investment trust’s (REIT) FFO per share, plus assumed conversions, on an adjusted basis, was 52 cents, in line with the Zacks Consensus Estimate. Results displayed year-over-year growth in same-store NOI and occupancy for the New York and THE MART portfolios. The company witnessed decent leasing activities in the New York and THE MART portfolios. Over the trailing four quarters, Vornado’s FFO per share, plus assumed conversions, on an adjusted basis, topped the Zacks Consensus Estimate on three occasions and missed in the remainder, the average surprise being 1.45%. This is depicted in the graph below: Vornado Realty Trust price-eps-surprise | Vornado Realty Trust Quote As we approach the release of Vornado's second-quarter 2026 earnings report, it is important to examine how this office REIT is likely to have performed amid the current market conditions. Per a Cushman & Wakefield report, the U.S. office market continued to recover in the second quarter of 2026, with AI-driven business expansion emerging as a key catalyst for demand, particularly in major gateway markets. AI companies, along with law firms and other professional-services tenants, increasingly sought high-quality office space to support employee collaboration, productivity and growth. Although quarterly net absorption was slightly negative at 360,000 square feet, the four-quarter rolling total rose to 14.3 msf — the strongest since 2020 and the seventh consecutive quarter of improvement. Demand was broad-based, with positive annual absorption in 60% of tracked markets. Vacancy stabilized at 20.1%, while available sublease space fell 15% year over year and 28% from its first-quarter 2024 peak. Class A offices continued to outperform, with vacancy declining 50 bps year over year and four-quarter net absorption reaching 24.5 msf, the highest since mid-2020. This stronger demand also supported premium pricing, with Class A asking rents averaging $44.17 per square foot in second-quarter 2026, well above the $38.38 national average across all office classes. Supply conditions also remain supportive. Office completions fell to a 14-year low, the construction pipeline stayed below 20 msf, while conversions, demolitions and repositioning surged. These trends should limit oversupply and support further improvement in premium office fundamentals. In reference to the above U.S. office market environment, strong demand for high-quality office space is likely to have supported leasing activity for Vornado’s strategically located premium portfolio in the second quarter of 2026. The company entered second-quarter 2026 with more than 1 million square feet of New York office leases under negotiation, while first-quarter 2026 Manhattan leasing generated average starting rents of $103 per square foot and positive cash mark-to-market spreads of 9.7%. However, second-quarter 2026 may reflect lower rent from the modified 350 Park Avenue master lease, with management indicating that most of this impact would begin in the said period, as well as continued pressure from financing costs despite expectations for interest expense to ease after the June bond repayment. The consensus mark for Vornado’s New York revenues is pinned at $368.7 million, up 2.9% from the prior-year quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $472.4 million, implying a 7% year-over-year gain. The consensus mark for Vornado’s other revenues stands at $84.6 million, up 1.6% from the prior-year quarter. The Zacks Consensus Estimate for occupancy in the New York office portfolio is pegged at 92%, up from 91.6% reported in the prior quarter. The company’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unchanged at 57 cents for more than three months. The figure indicates a 1.79% increase from the prior-year period’s reported number. Our proven model does not conclusively predict a surprise in terms of FFO per share for Vornado 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. Vornado has an Earnings ESP of -1.56% and currently carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two stocks from the broader REIT sector — Extra Space Storage EXR and Highwoods Properties HIW— you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter. Extra Space Storage is slated to report quarterly numbers on July 28. EXR has an Earnings ESP of +0.39% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Highwoods Properties is slated to report quarterly numbers on July 28. HIW has an Earnings ESP of +0.47% and 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vornado Realty Trust (VNO) : Free Stock Analysis Report Highwoods Properties, Inc. (HIW) : Free Stock Analysis Report Extra Space Storage Inc (EXR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Camden Property Trust CPT is slated to report second-quarter 2026 results on July 30, after market close. The company’s quarterly results are likely to witness a year-over-year decline in revenues and funds from operations (FFO) per share. In the last reported quarter, this residential real estate investment trust (REIT) reported FFO per share of $1.70, delivering a surprise of 1.80%. Results reflected higher same-property net operating income (NOI). In the preceding four quarters, CPT’s FFO per share outpaced the Zacks Consensus Estimate on all occasions, with the average beat being 1.18%. The graph below depicts this surprise history: Camden Property Trust price-eps-surprise | Camden Property Trust Quote In this article, we will dive deep into the U.S. apartment market environment and the company's fundamentals and analyze the factors that might have contributed to its second-quarter 2026 performance. The U.S. multifamily market entered the second half of 2026 with a clearer recovery taking shape, as strong renter demand and a rapidly shrinking supply pipeline began translating into lower vacancy and improving rent growth. According to a Cushman & Wakefield report, net absorption reached roughly 124,600 units, up from 83,500 units in the first quarter and 8% above the prior year, making it the fifth-strongest quarter in nearly 25 years. The supply picture also became more favorable. Approximately 88,000 units were delivered during the quarter, down 27% year over year. Around 475,000 units remained under construction at quarter-end, equal to just 3.5% of existing inventory. Improving demand and slowing supply pushed the national vacancy rate down 35 basis points quarter over quarter to 8.9%, its first move below 9% since 2024. On a trailing four-quarter basis, absorption of approximately 362,000 units exceeded deliveries of about 358,000 units for the first time since early 2022, indicating vacancy is likely to have passed its cyclical peak. The recovery was particularly pronounced in previously overbuilt markets: Austin; Charleston, SC; Savannah, GA; Huntsville, AL; Salt Lake City, UT, and Colorado Springs recorded some of the largest quarterly vacancy declines. Rent growth remains modest but is beginning to improve. National asking rents reached approximately $1,945 per month, up 1.5% year over year, compared with 1.1% growth in the first quarter. The Bay Area led the recovery, with San Francisco rents rising 13%, San Jose 7% and the East Bay 4.8%. Norfolk, VA; Toledo, OH; Reno, NV, and Boise, ID, also posted strong gains. High-supply markets remained softer, with rents still declining in Austin and Sarasota, FL, although the pace of those declines moderated as excess supply was absorbed. Overall, the market appears to be shifting from stabilization into an occupancy-led recovery, with broader rent growth likely as the construction pipeline continues to shrink. Camden is expected to have benefited from gradually improving apartment fundamentals as peak leasing season gained momentum and new supply continued to moderate across its Sun Belt markets. April occupancy increased to approximately 95.4% from 95.1% in the first quarter, while blended lease rates improved by about 100 basis points sequentially. Strong resident retention, historically low turnover and renewal offers in the mid-3% range are likely to have supported revenue stability, although seasonal expense pressure, including higher repair and maintenance costs and annual merit increases, may have weighed on same-store NOI and earnings growth. For the second quarter, management guided to core FFO of $1.65-$1.69 per share, down approximately $0.03 sequentially at the midpoint. The decline is expected to reflect a roughly $0.04 reduction in same-store NOI, as improving revenues are more than offset by seasonal repair and maintenance costs, and annual merit increases, partly cushioned by $0.01 of incremental non-same-store NOI from acquisitions. For the second quarter, the Zacks Consensus Estimate for CPT’s revenues currently stands at $391.7 million, implying a 1.2% decline from the year-ago reported number. However, before the second-quarter earnings release, the company’s activities were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has been revised southward by a cent to $1.67 over the past week, which lies within the guided range and shows a decline of 1.8% year over year. Our proven model does not conclusively predict a surprise in terms of FFO per share for Camden 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. Camden currently carries a Zacks Rank of 3 and has an Earnings ESP of -0.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two stocks from the broader REIT sector — Extra Space Storage EXR and Highwoods Properties HIW— you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter. Extra Space Storage is slated to report quarterly numbers on July 28. EXR has an Earnings ESP of +0.39% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Highwoods Properties is slated to report quarterly numbers on July 28. HIW has an Earnings ESP of +0.47% and 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Camden Property Trust (CPT) : Free Stock Analysis Report Highwoods Properties, Inc. (HIW) : Free Stock Analysis Report Extra Space Storage Inc (EXR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research