Extra Space Storage enters $4.5 billion amended credit agreement

Extra Space Storage Inc. (NYSE:EXR), a prominent player in the Specialized REITs industry with a market capitalization of $31.1 billion, announced it has entered into a fourth amended and restated credit agreement through its operating partnership, Extra Space Storage LP, according to a press release statement filed with the Securities and Exchange Commission. According to InvestingPro data, the company maintains strong financial metrics with $3.4 billion in trailing twelve-month revenue.

The agreement, signed Thursday, provides for aggregate borrowings of up to $4.5 billion. This includes a $3.0 billion senior unsecured revolving credit facility due August 21, 2029, and three senior unsecured term loan facilities: $500 million due October 13, 2026; $500 million due January 28, 2028; and $500 million due July 27, 2029. The company may also increase the total commitments under the credit facility up to $5.5 billion. This new facility complements Extra Space’s existing total debt of $13.7 billion, while maintaining a healthy current ratio of 2.08x, indicating strong liquidity position. For detailed financial analysis and more insights, check out the comprehensive research report available on InvestingPro.

The revolving credit facility and term loans bear interest at floating rates, which may be based on Term SOFR, Daily Simple SOFR, or a base rate, plus applicable margins. The applicable SOFR rate margin for the revolving credit facility ranges from 0.700% to 1.400% per annum, and for the term loan facilities ranges from 0.750% to 1.600% per annum, depending on the company’s credit ratings.

The company may voluntarily prepay loans under the agreement, subject to certain notice requirements. Amounts repaid or prepaid under the term loan facilities may not be reborrowed.

The credit agreement is guaranteed by Extra Space Storage Inc. and certain subsidiaries, but is not secured by company assets. It replaces a prior third amended and restated credit agreement dated June 22, 2023.

The agreement includes financial covenants requiring the company to maintain a ratio of total indebtedness to total asset value of no more than 60%, a ratio of total secured debt to total asset value of no more than 40%, a minimum adjusted EBITDA to fixed charges ratio of 1.50 to 1.00, and a ratio of total unsecured debt to total unencumbered asset value of no more than 60%. Certain exceptions apply following material acquisitions.

The information is based on a press release statement filed with the SEC.

In other recent news, Extra Space Storage has declared a third-quarter dividend of $1.62 per share, payable on September 30, 2025, to shareholders recorded by September 15, 2025. The company also announced the pricing of $800 million in senior notes due in 2033, set at a 4.950% interest rate, with an expected closing around August 8, 2025. In terms of analyst activity, Wells Fargo upgraded Extra Space Storage from Equal Weight to Overweight, citing a favorable risk/reward setup. Conversely, Goldman Sachs downgraded the company from Buy to Neutral, attributing the decision to a slower growth outlook and estimating an average annual growth of 2.5% in funds from operations from 2025 to 2027. Truist Securities also adjusted its price target for Extra Space Storage to $150 while maintaining a Hold rating, slightly reducing its funds from operations estimates for 2025 and 2026.

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