Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is Extra Space Storage Inc. (EXR) Halal?

FAIL

Extra Space Storage Inc. · NYSE: EXR · Real Estate

The short answer

Extra Space Storage fails this screener's Shariah gates on debt: its $13.65 billion of interest-bearing debt is 48.7% of its ~$28.03 billion market cap, over the 33% ceiling. The self-storage business itself passes the business gate, and interest income of 4.83% of revenue is under the 5% ceiling - but REIT leverage is the deciding factor.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. Extra Space Storage Inc. is a fully integrated, self-administered and self-managed real estate investment trust (REIT) formed in 2004 and headquartered in Salt Lake City, Utah. Per its FY2025 Form 10-K (Item 1, Business), it owns, operates, manages, provides lending for, acquires, develops and redevelops self-storage properties (“stores”), which offer month-to-month rental of storage space for personal or business use. As of December 31, 2025 it owned and/or operated 4,281 stores in 43 states and Washington, D.C., comprising approximately 330.4 million square feet of net rentable space in roughly 2.9 million units.

The 10-K discloses two ancillary activities worth noting. First, the company originates mortgage and mezzanine bridge loans and holds debt securities and notes receivable — its MD&A states that interest income “represents interest earned on variable interest rate bridge loans, debt securities and on notes receivable,” with bridge loans outstanding of $1,500,151 thousand at December 31, 2025 (about $1.5 billion still outstanding at June 30, 2026). Second, its tenant reinsurance activities are the reinsurance of risks relating to the loss of goods stored by tenants in its stores. The company is not involved in alcohol, tobacco, gambling, pork or weapons. The core activity — rental of storage space — is permissible, and the interest-based lending income is quantified separately at gate 3; assessed on that basis, the business passes gate 1.

Gate 2 — Debt and cash: FAIL

Gate 2 — interest-bearing debt: FAIL (48.7%, ceiling 33%). Per Extra Space Storage's June 30, 2026 condensed consolidated balance sheet (published with its July 28, 2026 earnings release), interest-bearing debt totaled $13,646,620 thousand: secured notes payable, net of $1,073,327 thousand; unsecured term loans, net of $1,495,365 thousand; unsecured senior notes, net of $9,460,928 thousand; and revolving lines of credit and commercial paper of $1,617,000 thousand. Operating lease liabilities ($767,584 thousand) are excluded — they are not interest-bearing debt.

About $13.65 billion of interest-bearing debt against a market capitalization of about $28.03 billion (Finnhub, October 2, 2026) is 48.7%, well over the 33% ceiling — the stock fails this gate. The company discloses that 78.5% of its total debt was fixed-rate at June 30, 2026, with a combined weighted average interest rate of 4.3%, and priced a $550 million public offering of 4.90% unsecured senior notes due 2032 in June 2026. Cash and cash equivalents of $695,171 thousand at June 30, 2026 represent about 2.5% of market cap.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (4.83%, ceiling 5%). Extra Space Storage's FY2025 Form 10-K separately discloses interest income of $163,202 thousand (FY2024: $124,422 thousand; FY2023: $84,857 thousand). The MD&A states this represents interest earned on variable interest rate bridge loans, debt securities and notes receivable. FY2025 interest income of $163,202 thousand against FY2025 total revenue of $3,377,542 thousand is 4.83%, under the 5% ceiling.

The six months ended June 30, 2026 corroborate the figure: interest income of $78,320 thousand against total revenue of $1,730,179 thousand, about 4.5%. This gate passes — but note it is the interest-based debt at gate 2 that the stock fails on.

Key figures used

Frequently asked questions

What does Extra Space Storage do?

Extra Space Storage Inc. (NYSE: EXR) is a fully integrated, self-administered and self-managed real estate investment trust headquartered in Salt Lake City, Utah, and a member of the S&P 500. Per its FY2025 Form 10-K, it owns, operates, manages, acquires, develops and redevelops self-storage properties. As of December 31, 2025 it owned and/or operated 4,281 stores in 43 states and Washington, D.C., comprising approximately 330.4 million square feet of net rentable space in roughly 2.9 million units. It also manages stores for third-party owners and originates mortgage and mezzanine bridge loans, with approximately $1.5 billion in bridge loans outstanding at June 30, 2026.

Is Extra Space Storage's business Shariah compliant?

Its core business - renting storage space to individuals and businesses on a month-to-month basis - is a permissible activity, and the 10-K discloses no involvement in alcohol, tobacco, gambling, pork or weapons. For transparency, the 10-K does disclose interest-based activities: the company originates mortgage and mezzanine bridge loans and holds debt securities and notes receivable, and its tenant reinsurance line is reinsurance of risks relating to goods stored by tenants in its stores. The interest income from the lending activity was 4.83% of FY2025 revenue and is quantified separately under the non-compliant-income gate, so the business passes this screener's first gate on its core storage-rental activity.

How much interest-bearing debt does Extra Space Storage have?

Per its June 30, 2026 condensed consolidated balance sheet (published with its July 28, 2026 earnings release): secured notes payable of $1,073,327 thousand, unsecured term loans of $1,495,365 thousand, unsecured senior notes of $9,460,928 thousand, and revolving lines of credit and commercial paper of $1,617,000 thousand - total interest-bearing debt of $13,646,620 thousand (about $13.65 billion). Operating lease liabilities ($767,584 thousand) are excluded as they are not interest-bearing debt. Against a market capitalization of about $28.03 billion (Finnhub, October 2, 2026) that is 48.7%, over the 33% ceiling, so the stock fails this screener's debt gate. In June 2026 the company priced a $550 million public bond offering of 4.90% unsecured senior notes due 2032.

How much interest income does Extra Space Storage earn?

Extra Space Storage's FY2025 Form 10-K separately discloses interest income of $163,202 thousand (FY2024: $124,422 thousand; FY2023: $84,857 thousand). The MD&A states this represents interest earned on variable interest rate bridge loans, debt securities and notes receivable, with bridge loans outstanding of $1,500,151 thousand at December 31, 2025. FY2025 interest income of $163,202 thousand against FY2025 total revenue of $3,377,542 thousand is 4.83% - under the 5% non-compliant income ceiling. (For the six months ended June 30, 2026, interest income was $78,320 thousand against total revenue of $1,730,179 thousand, about 4.5%.)

What do third-party Shariah screeners say about Extra Space Storage?

Zoya publishes an Extra Space Storage (EXR) page and currently flags the stock as not Shariah-compliant; its page shows the same filing numbers used here (FY2025 interest income $163,202,000 against total revenue $3,377,542,000). I could not verify a Musaffa rating page for EXR or a ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).