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Extra Space Storage books 9.5% YOY rise in Q4'17 core FFO

Self-storage real estate investment trust Extra Space Storage Inc. disclosed funds from operations attributable to common stockholders and unit holders for the 2017 fourth quarter of $158.6 million, or $1.17 per share, an 18.0% increase in the aggregate from $134.4 million, or $1.00 per share, in the 2016 fourth quarter.

Excluding adjustments for noncash interest and to remove the benefit from tax reform, FFO as adjusted totaled $1.12 per diluted share, representing an 8.7% year-over-year increase.

For the quarter, core FFO attributable to common stockholders and unit holders grew 9.5% from the year-ago period to $151.7 million, or $1.12 per share, from $138.6 million, or $1.03 per share.

Total revenues for the quarter came to $281.8 million, a rise of 8.0% from $261.0 million in the year-ago period.

The company disclosed a 19.3% year-over-year gain in FFO for the full year 2017. In the aggregate, results totaled $590.2 million, or $4.37 per share, compared with $494.7 million, or $3.70 per share. Core FFO for the year totaled $591.5 million, or $4.38 per share, a 14.9% increase from $514.9 million, or $3.85 per share, the previous year.

Total revenues for the year came to $1.11 billion for the year, a gain of 10.24% from the previous year's total of $991.9 million.

The S&P Capital IQ consensus FFO-per-share estimate for the quarter was $1.08. For the full year, the S&P Capital IQ consensus estimate for FFO was $4.33 per share.

Extra Space Storage forecasts FFO per share in the range of $4.52 to $4.62 for the 2018 full year. The company also forecasts core FFO for the 2018 full year between $4.55 and $4.65 per share.

The S&P Capital IQ consensus FFO-per-share estimate for the 2018 full year is $4.50.

In November 2017, Extra Space Storage sold 36 stores, 30 of which were in the same store pool, for $295.0 million into a joint venture. The company owns a 10% stake in the venture, with accounting firm TIAA, through a TH Real Estate managed account, owning the remaining stake. Extra Space Storage continues to manage the properties and plans to reinvest the sale proceeds into various acquisitions via 1031 exchanges.