Extra Space Storage Inc. (EXR) Q3 2022 Earnings Call Transcript

Extra Space Storage Inc. (NYSE:EXR) Q3 2022 Earnings Conference Call November 2, 2022 1:00 PM ET

Company Participants

Jeff Norman - Senior Vice President, Capital Markets

Joe Margolis - Chief Executive Officer

Scott Stubbs - Chief Financial Officer

Conference Call Participants

Jeff Spector - Bank of America

Michael Goldsmith - UBS

Todd Thomas - KeyBanc Capital Markets

Juan Sanabria - BMO Capital Markets

Spenser Allaway - Green Street

Smedes Rose - Citi

Samir Khanal - Evercore

Ronald Kamdem - Morgan Stanley

Operator

Good day and thank you for standing by. Welcome to the Extra Space Storage Third Quarter 2022 Earnings Call. [Operator Instructions] Please be advised that this call is being recorded. I will now turn it over to Jeff Norman, Senior Vice President of Capital Markets. Please go ahead.

Jeff Norman

Thank you, Hope. Welcome to Extra Space Storage’s third quarter 2022 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, November 2, 2022. The company assumes no obligation to revise or update any forward-looking statements because of changing market conditions or other circumstances after the date of this conference call.

With that, I’d like to now turn it over to Joe Margolis, Chief Executive Officer.

Joe Margolis

Thanks, Jeff and thank you everyone for joining today’s call. We had another strong quarter with same-store revenue growth of 15.5%, driven by strong rental rate growth, partially offset by lower year-over-year occupancy. We felt expense pressure across many line items, resulting in total same-store expense growth of 12.6% and same-store NOI growth of 16.4%.

We continue to be busy on the external growth front, adding 40 stores gross to our third-party management platform, closing over $100 million in bridge loans in closing a number of acquisitions, most notably the purchase of Storage Express. We view Storage Express as a strategic opportunity to acquire not only an attractive portfolio with operational upside, but a remote storage platform. We believe this will unlock an additional growth channel for Extra Space to acquire and integrate smaller properties that lend themselves to a remotely managed model.