Extra Space Storage, Inc. (NYSE: EXR) stock fell over 4.7% on 21st Feb, 2019 (Source: Google finance) after the company posted mixed results for the fourth quarter of FY 18. As of December 31, 2018, the Company managed 536 stores for third-party owners. With an additional 233 stores owned and operated in joint ventures, the Company had a total of 769 stores under management. During the three months ended December 31, 2018, the Company sold 590,538 shares of common stock under its ATM equity program at an average sales price of $96.87 per share resulting in net proceeds of $56.6 million after deducting offering costs. As of December 31, 2018, the Company had $257.9 million available for issuance under its ATM equity program.
EXR in the fourth quarter of FY 18 has reported the adjusted funds from operations (FFO) of $1.22, beating the analysts’ estimates for the adjusted earnings per share of $1.20. The company had reported the adjusted revenue growth of 35.9 percent to $307.35 million in the fourth quarter of FY 18, missing the analysts’ estimates for revenue by 0.36%. Same-store revenues for the three months and year ended December 31, 2018 rose due to higher rental rates for both new and existing customers. Expenses were higher for the three months ended December 31, 2018, primarily on the back of the increases in property taxes, marketing and insurance. Expenses were higher for the year ended December 31, 2018, primarily due to increases in property taxes, payroll and benefits, and marketing.
Meanwhile, during the fourth quarter, EXR had amended and restated its senior unsecured credit facility, increasing capacity by $200.0 million to a total of $1.4 billion. The facility consists of a senior unsecured revolving credit facility of $650.0 million due January 2023, a senior unsecured term loan of $480.0 million due January 2024, and a senior unsecured term loan of $220.0 million due October 2023. As of December 31, 2018, the Company’s percentage of fixed-rate debt to total debt was 74.1%. Further, during the quarter, EXR had declared a quarterly dividend of $0.86 per share, which is payable on March 29, 2019 to stockholders of record at the close of business on March 15, 2019.
Additionally, during the quarter, the company has acquired three operating stores and three stores at completion of construction for a total investment of approximately $74.3 million. In conjunction with joint venture partners, acquired two operating stores and four Certificate of Occupancy stores for a total cost of approximately $69.8 million, of which the Company invested $15.7 million.