In April Extra Space Storage allowed for the income from its established stores to fall this year, and on Tuesday it moved the floor of that range up 2.75 points

The range Extra Space Storage published in April allowed for the income from its established stores to fall this year. The range it published on Tuesday does not.

Same-store net operating income growth for 2026 is now guided between 0.50 percent and 2.50 percent, against a range of negative 2.25 percent to 1.25 percent set on April 28. The floor moved 2.75 points. Same-store revenue growth is now guided between 1.00 percent and 2.00 percent against negative 0.50 percent to 1.50 percent, and same-store expense growth between 1.00 percent and 2.00 percent against 2.00 percent to 3.50 percent. Core funds from operations is now guided between $8.25 and $8.40 per share against $8.05 to $8.35. The assumptions run against a same-store pool of 1,870 stores, and the weighted average one-month SOFR assumption rose to 3.73 percent from 3.65 percent.

Most of that revision sits on the expense side. The company cut the top of its expense growth assumption by 1.5 points and the bottom by a full point, while moving the revenue assumption up 1.5 points at the bottom and 0.5 at the top.

The quarter itself showed the same shape. Same-store revenue rose 2.4 percent, same-store expenses fell 0.5 percent and same-store net operating income rose 3.5 percent, which means the income line grew faster than the revenue line because the cost line went backwards. Net income attributable to common stockholders was $263.5m, or $1.25 per diluted share, a rise of 5.9 percent. Funds from operations were $2.07 per diluted share and core funds from operations were $2.15, up 4.9 percent. Ending same-store occupancy was 94.2 percent, against 94.4 percent a year earlier.

Extra Space bought 17 operating stores and the interest of a joint venture partner in one consolidated joint venture, for $90.7m in total. It kept lending too. Mortgage and mezzanine bridge loan originations were $140.6m in the quarter. It added 67 stores, 48 net, to its third-party management platform, and now manages 1,964 stores for third parties and 409 in unconsolidated joint ventures, 2,373 in all. The quarterly dividend of $1.62 per share was paid on June 30 to holders of record on June 15.

Joe Margolis, the chief executive, said the company is getting deeper into the storage sector's recovery, and attributed the quarter's core funds from operations growth to occupancy, improving store performance and expense control, with contributions from third-party management and bridge lending.

The call is at 1 p.m. eastern time on Wednesday.