Monday, Extra Space Storage Inc. (EXR) reported a jump in profit for the first quarter, as well as higher funds from operations, as total rental revenues increased, driven primarily by rise in non same-store rental revenues. The company also provided its earnings guidance for the second quarter and fiscal 2009, expected to come in below current Street estimates.
The Salt Lake City, Utah-based company reported funds from operations, or FFO, of $0.47 per share, including development dilution of $0.02 per share. This compares to FFO of $0.23 per share a year ago.
Adjusted FFO was $0.23 per share, after realizing a $0.25 gain on repurchase of exchangeable senior notes and adding back $0.01 of non-cash interest charges related to a new accounting pronouncement. Adjusted FFO for the first quarter of 2008 was $0.25 per share.
On average, seven analysts polled by Thomson Reuters estimated earnings of $0.49 per share for the quarter.
Net income attributable to common shareholders jumped to $28.97 million or $0.34 per share from $5.67 million or $0.09 per share in the prior year period.
Total revenues for the quarter increased to $69.3 million from $65.7 million in the year ago quarter. Five analysts had a consensus revenue estimate of $67.08 million for the quarter.
Same-store rental revenue for the quarter decreased to $56.63 million from $56.68 million in the same quarter of 2008, primarily due to decreased rental rates to incoming customers and a reduction in occupancy due to lower move-in activity and higher move-out activity.
Non same-store rental revenues increased to $2.78 million from $0.34 million in the corresponding quarter last year.
Looking forward, the company expects second-quarter adjusted FFO per share between $0.21 and $0.23, including lease-up dilution of $0.02 per share. Analysts currently expect earnings of $0.24 per share for the quarter, with estimates ranging between $0.23 per share and $0.26 per share.
For fiscal 2009, the company estimates adjusted FFO per share between $0.92 and $0.96, including lease-up dilution of $0.07 per share. Consensus earnings estimate of analysts currently is $1.21 per share for the full year, with a low estimate of $1.17 per share and a high estimate of $1.25 per share.
EXR closed Monday's regular trading at $7.89, up $1.09 or 16.03%, on a volume of 3.14 million shares on the NYSE. In after hours, the stock is down $0.29 or 3.68%, at $7.60.
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