EXR
Extra Space Storage Inc.
Is EXR Halal?
Self-storage leasing is generally permissible, but Extra Space Storage's current debt/assets ratio fails the examined asset-based Sharia limits and its tenant-reinsurance and bridge-lending activities remain qualitative concerns.
What You Should Know
Extra Space Storage owns or manages 4,344 stores in 42 states and Washington, D.C. as of March 31, 2026. Its Q1 2026 Form 10-Q reports $29,099.370 million of total assets, $13,170.525 million of interest-bearing debt, $138.986 million of cash, $1,758.534 million of investments in debt securities and notes receivable, $115.380 million of other receivables and $856.027 million of quarterly revenue. Those inputs produce debt/assets of 45.26%, liquidity of 6.52%, receivables plus cash/assets of 0.87% and disclosed interest income/revenue of 4.62%. Debt fails the examined FTSE Yasaar, MSCI and Malaysia asset-based limits; the core self-storage activity is generally permissible, but tenant reinsurance, variable-rate bridge loans, preferred Operating Partnership units and the full prohibited-revenue allocation require qualitative review. This is a current ZakatInvest calculation, not an index-membership claim.
⚠️ Concerns
- •Debt/assets of 45.26% exceed the examined 33% asset-based limits; the calculation includes secured notes, unsecured term loans and senior notes plus revolving lines/commercial paper
- •Extra Space offers variable-rate bridge loans to third-party self-storage owners; those interest-bearing notes receivable are a direct riba-related qualitative concern
- •Tenant reinsurance produced $89.119 million of quarterly revenue and requires scholar-specific treatment rather than an unsupported haram-revenue estimate
- •Disclosed interest income was 4.62% of quarterly revenue; no fixed purification rate is asserted
- •Preferred Operating Partnership units receive cumulative distributions and remain a separate capital-stack consideration
- •Market-cap denominator methods are not calculated without a licensed historical market-cap series
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
13,170.525 / 29,099.37
1,897.52 / 29,099.37
254.366 / 29,099.37
39.543 / 856.027
- Financial
- Fails
- Overall
- Fails
Debt is 45.26%, above the examined 33.333% limit. Liquidity is 6.52% and receivables plus cash are 0.87%, below their limits; disclosed interest income is 4.62%, below the 5% threshold.
- Financial
- Fails
- Overall
- Fails
Debt is 45.26%, above the examined 33.33% total-assets limit. Liquidity and receivables plus cash are below the examined limits. This is a calculation against the named method, not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt is 45.26%, above the examined 33% limit; liquidity is 6.52%. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Extra Space Storage owns, operates and manages self-storage facilities. General-purpose self-storage leasing and management fees are generally permissible at the activity level, while tenant reinsurance and bridge-loan financing require separate scholar-specific review.
Limitation: The quarterly filing reports tenant reinsurance, management and other income, but does not allocate every contract, tenant activity or joint-venture stream into a universal prohibited-revenue numerator.
Purification
The filing separately reports $39.543 million of interest income, but it does not provide a scholar-approved purification percentage for interest income, tenant reinsurance, bridge-loan returns or leverage-related distributions.
Inputs, assumptions and primary sources
- Assets use Extra Space Storage's consolidated total assets of $29,099.370 million at March 31, 2026.
- Interest-bearing debt uses the balance-sheet carrying amounts of secured notes payable, unsecured term loans, unsecured senior notes, and revolving lines/commercial paper, totaling $13,170.525 million. Operating lease liabilities and other non-debt liabilities are not entered as conventional debt.
- Cash uses $138.986 million of cash and cash equivalents. Interest-bearing securities use the reported $1,758.534 million of investments in debt securities and notes receivable. Separately reported receivables of $115.380 million are used for the receivables input and are not double-counted in that securities field.
- Quarterly revenue uses $856.027 million of property rental, tenant reinsurance, management fees and other income. Separately disclosed interest income was $39.543 million, or 4.62% of that revenue base.
- Extra Space reports tenant reinsurance and bridge-loan financing, but does not provide a universal prohibited-revenue numerator for every insurance, management, tenant or joint-venture stream.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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