Extra Space Storage (EXR.N), which opened a new tab on Tuesday, forecasted that its core funds from operations in 2024 would be lower than what experts had anticipated.
This is due to the fact that the demand for self-storage spaces has decreased from its peak during the pandemic.
Combined with a decrease in house sales, the return of employees from remote working settings to their offices has resulted in a decrease in the need for storage space.
As a result, self-storage companies have been forced to drop their rent in order to attract new customers.
In comparison to the previous expectations of $8.34 per share, the self-storage REIT now anticipates that its core FFO for 2024 will fall somewhere between $7.85 and $8.15 per share.
"While we expect a headwind from lower new customer rates, we are confident in the durability of self-storage," President and CEO Joe Margolis stated.
Reported fourth-quarter adjusted FFO of $2.02 per share, falling just shy of analysts' projections of $2.03 per share, according to LSEG data. According to the statistics provided by LSEG, the REIT, which is the owner of more than 3,600 storage stores located in 42 different states, posted an adjusted FFO for the fourth quarter of $2.02 per share. This figure was only slightly lower than the predictions of $2.03 per share that were provided by analysts.
For the period that concluded on December 31st, the total revenue came in at $797.8 million, which was significantly more than the forecasts of $720.8 million.
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