Extra Space Storage lifts 2026 FFO forecast on higher pricing, cost controls

• Net rental income during the second quarter rose 2.5% from last year, while same-store operating expenses fell 0.5% from a year ago.
• The REIT now expects annual core FFO to be between $8.25 and $8.40 per share, compared with an earlier range of $8.05 to $8.35 a share.
• The midpoint of the new forecast is above analysts' estimate of $8.28 per share, according to data compiled by LSEG.
• It also lowered its 2026 same-store expense growth forecast to a range of 1% to 2%, compared with an earlier forecast of 2% to 3.5%.
• The REIT's core FFO for the quarter ending June 30 was $2.15 apiece, above analysts' average estimate of $2.07 per share.

July 28 (Reuters) - Extra Space Storage raised its forecast for full-year funds from operations on Tuesday, driven by higher rates for its self-storage units and a cutback in expenses.

Storage companies have been benefiting from a decline in new supply and moderation in available units, enabling them to regain pricing power.