Core Funds From Operations (FFO) per share for the fourth quarter of 2025 rose to $2.08, beating the consensus estimate of $2.03 by $0.05 (a 1.6% beat). Full‑year Core FFO per share climbed to $8.21, up 1.1% from $8.12 in 2024. The earnings beat was driven by strong performance in the third‑party management and bridge‑loan platforms, disciplined cost control, and a modest lift in new‑customer rates that offset the impact of a slight occupancy decline.
Revenue for the quarter reached $857.47 million, surpassing the consensus estimate of $851 million by $6.47 million (a 0.76% beat). The revenue increase was largely supported by higher same‑store revenue and growth in the third‑party management segment, while a small decline in occupancy tempered the overall growth.
Same‑store occupancy at the end of the quarter and for the full year was 92.6%, down 70 basis points from 93.7% in 2024. The contraction reflects strategic discounts and a shift toward higher‑margin, lower‑occupancy properties within the newly acquired portfolio.
Management highlighted disciplined capital allocation, noting the disposal of lower‑performing assets and the acquisition of a $244 million portfolio of 24 self‑storage properties. The acquisition is expected to deliver higher stabilized yields and supports the company’s strategy of growth through both organic expansion and targeted acquisitions.
A quarterly dividend of $1.62 per share was paid in the fourth quarter, maintaining the high payout ratio. Management emphasized that the dividend is sustainable given the company’s strong cash‑flow generation and robust balance sheet.
The company raised its full‑year 2026 Core FFO guidance to $8.05–$8.35 per share, a modest increase from the prior range of $8.00–$8.30. The adjustment reflects confidence in continued demand and the impact of the new portfolio, and signals management’s belief that margin expansion can be maintained despite rising interest expenses.
Analysts noted the earnings beat and the strategic acquisition as positive signals, while noting the occupancy decline and high dividend payout ratio as potential headwinds. The company’s focus on third‑party management and bridge‑loan platforms is expected to drive future growth.
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