Extra Space Storage, Inc. (EXR) CEO Joseph Margolis on Q2 2022 Results - Earnings Call Transcript

Extra Space Storage (NYSE:EXR) Q2 2022 Earnings Conference Call August 3, 2022 1:00 PM ET

Company Participants

Joseph Margolis - CEO & Director

Scott Stubbs - EVP & CFO

Jeffrey Norman - SVP, Capital Markets

Conference Call Participants

Todd Thomas - KeyBanc Capital Markets

Spenser Allaway - Green Street Advisors

Juan Sanabria - BMO Capital Markets

Keegan Carl - Berenberg

Michael Bilerman - Citigroup

Hong Liang Zhang - JPMorgan Chase & Co.

Ki Bin Kim - Truist Securities

Samir Khanal - Evercore ISI

Jeffrey Spector - Bank of America Merrill Lynch

Ronald Kamdem - Morgan Stanley

Smedes Rose - Citigroup

Operator

Good day, and thank you for standing by. Welcome to the Q2 2022 Extra Space Storage, Inc. Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded.

And I would now like to hand the conference over to your speaker today, Mr. Jeff Norman. Mr. Norman. Please go ahead.

Jeffrey Norman

Thank you, Chris. Welcome to Extra Space Storage's Second 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, August 3, 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.

And with that, I'd now like to it over -- time over to Joe Margolis, Chief Executive Officer.

Joseph Margolis

Thanks, Jeff, and thank you, everyone, for joining today's call. Before I report on our performance, I am happy to announce that we recently published our Annual Sustainability Report. We are proud to be a sector leader, not only operationally, but also in sustainability. I encourage you to review our report, which is posted on our Investor Relations website.

Turning to results. The strong trends we experienced in the first quarter continued into the leasing season. Year-over-year same-store revenue growth in the quarter was 21.7%, matching our first quarter growth rate. This is an all-time high for Extra Space Storage. Despite expense pressure on several line items, NOI growth remained very strong at 26%. This was achieved primarily through year-over-year rental rate growth, partially offset by a modest decrease in year-over-year occupancy due to elevated vacate activity.