(Reuters) – Extra Space Storage on Tuesday raised the lower end of its forecast for annual same-store revenue growth on the back of improved occupancy and higher rent per square feet.
The company’s shares rose 2.2% to $109.60 after the bell.
The self-storage REIT now expects 2023 same-store revenue growth between 2.75% and 3.50%, compared with its previous forecast of 2.50% to 3.50%.
The Salt Lake City, Utah-based real estate investment trust (REIT) owns and operates stores which lease out storage spaces on a monthly basis.
Earlier this year, the company acquired Life Storage for $12.7 billion in a deal that created the largest U.S. self-storage space operator by store count.
On Tuesday, Extra Space Storage reported third-quarter core funds from operations of $2.02 per share. Analysts had expected $2.03, according to LSEG data.
The company reported same-store revenue of $397.9 million, compared with $390.6 million a year earlier.
(Reporting by Priyamvada C and Mehr Bedi in Bengaluru; Editing by Shounak Dasgupta)
