Feb 19 (Reuters) - Extra Space Storage ( EXR ) on

Thursday forecast full-year funds from operations below Wall

Street estimates, as ​the real estate investment ‌trust grapples

with softening demand for its self-storage stores ⁠due to rising

competition in key markets.

The ⁠Salt Lake City, Utah-based ‌company's occupancy ‌continues

to fall as demand softens in a ​weak macro environment ‌and new

market entrants add to industry oversupply.

The company's annual same-store ​occupancy in 2025 ​fell ‌to

92.6% from 93.3% last year.

At the same time, inflation is slowing new ⁠customer growth,

while higher operating costs ⁠and increased discounting are

further pressuring margins.

The REIT expects annual adjusted FFO between $8.05 and $8.35

per share, the midpoint ⁠of ‌which comes a cent below $8.21 ‌per

share in 2025.

Analysts estimate per-share ⁠adjusted FFO of $8.29 for the

year, according to data compiled by LSEG.

The company posted fourth-quarter adjusted FFO of $2.08 per

share, compared with analysts' estimates of $2.04.

For the quarter ​ended December 31, total same-store revenues

rose marginally from a year ago to $664.2 ​million.