The Short Answer
Extra Space Storage (EXR) is currently doubtful under the examined quantitative screens. Its core self-storage leasing activity is generally permissible, but the latest debt/assets calculation is above the examined FTSE Yasaar, MSCI and Malaysia asset-based limits. Tenant reinsurance, variable-rate bridge lending and preferred Operating Partnership units also need qualitative review.
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.
This is a reproducible ZakatInvest calculation from Extra Space Storage's March 31, 2026 Form 10-Q. It is not an index-membership claim or a fatwa. Market-cap denominator methods are not estimated without a licensed historical market-cap series, and the qualitative analysis remains separate from the numerical result.
Sharia Screening Methodology
Islamic equity screens commonly examine:
- Business activity: whether the core activity and material revenue streams are permissible
- Debt and liquidity: interest-bearing liabilities and cash or interest-bearing securities relative to assets or market value
- Receivables: receivables plus cash relative to assets, with thresholds varying by methodology
- Non-compliant income: separately disclosed interest or other prohibited income, where the filing permits a reproducible numerator
Extra Space Storage's Business Activity
At March 31, 2026, Extra Space owned or managed 4,344 stores in 42 states and Washington, D.C., including 2,428 stores in which it held direct or indirect equity interests. The business is organized across the wholly-owned portfolio, joint ventures and a large third-party-management platform. General-purpose self-storage leasing and management fees are generally permissible at the activity level, but each ancillary stream still needs its own Sharia treatment.
Qualitative Concerns
1. Conventional REIT financing structure
The Q1 filing reports secured notes, unsecured term loans, unsecured senior notes and revolving lines or commercial paper. The quantitative panel uses those carrying amounts for the named asset-based calculations and excludes operating-lease liabilities and other non-debt liabilities. The resulting debt/assets ratio is 45.26%, above the examined 33% limits.
2. Bridge-loan financing
Extra Space offers bridge loans to third-party self-storage owners whose properties it manages. The filing says these mortgage and mezzanine notes generally carry variable interest rates. This is a direct riba-related qualitative concern separate from the property-leasing activity, and the filing does not provide a scholar-approved treatment for it.
3. Tenant reinsurance and ancillary revenue
Tenant reinsurance generated $89.119 million of revenue in the quarter, alongside management fees and other income. The filing does not allocate every insurance, tenant, management or joint-venture stream into a universal prohibited-revenue numerator, so no unsupported percentage is asserted. A qualified scholar should determine how the insurance contracts and related distributions should be treated.
4. Preferred Operating Partnership units
Preferred Operating Partnership units had a $47.827 million balance at March 31, 2026 and receive cumulative distributions under their governing terms. They are classified as equity in the filing, but remain a separate capital-stack consideration for a conservative Sharia review.
Current Financial Ratios (March 31, 2026)
- Interest-bearing debt / assets: 45.26% — above the examined 33% limits ❌
- Cash + interest-bearing securities / assets: 6.52% — below the examined liquidity limits ✅
- Receivables + cash / assets: 0.87% — below the examined receivables limits ✅
- Disclosed interest income / revenue: 4.62% — below the FTSE 5% threshold ✅
- Prohibited-revenue numerator: Not disclosed; business-activity screen remains incomplete
How to Read the Result
EXR is doubtful in this review: self-storage is generally permissible, but debt/assets of 45.26% fails the examined asset-based methods. The result does not claim that every methodology or scholar reaches the same conclusion.
- FTSE Yasaar asset-based debt screen — Fails at 45.26% ❌
- MSCI Islamic total-assets debt screen — Fails at 45.26% ❌
- Malaysia SAC asset-based debt screen — Fails at 45.26% ❌
Bottom Line
Extra Space Storage (EXR) is currently doubtful under the examined quantitative screens. The core self-storage business is generally permissible, but conventional financing fails the named asset-based debt tests. Tenant reinsurance, variable-rate bridge loans, preferred Operating Partnership units and the full prohibited-revenue allocation require additional scholar-specific analysis. No fixed purification percentage is asserted beyond reporting the disclosed interest-income ratio.
EXR's self-storage activity is generally permissible, but the current asset-based debt screen fails. Use the checker to compare other securities.
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