EXR Rallies 15% in 3 Months: Time to Buy, Hold or Sell the Stock?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 04 2025
0mins
Source: NASDAQ.COM
Stock Performance and Investment Outlook: Extra Space Storage Inc. (EXR) has seen a 15.5% increase in share price over the past three months, outperforming its industry, but current valuations suggest a "Hold" stance may be prudent due to macroeconomic uncertainties and stretched valuations.
Operational Strength and Future Challenges: The company maintains solid fundamentals with strong cash flows and dividend growth, yet faces challenges such as new customer price sensitivity and projected negative revenue growth for 2025, indicating potential headwinds ahead.
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Analyst Views on PSA
Wall Street analysts forecast PSA stock price to rise
14 Analyst Rating
5 Buy
9 Hold
0 Sell
Moderate Buy
Current: 292.370
Low
276.00
Averages
311.58
High
349.00
Current: 292.370
Low
276.00
Averages
311.58
High
349.00
About PSA
Public Storage is a real estate investment trust. Its principal business activities include the ownership and operation of self-storage facilities that offer storage spaces for lease, generally on a month-to-month basis, for personal and business use, and other related operations, such as tenant reinsurance, merchandise sales, third party management, and bridge lending to third-party self-storage owners, as well as the acquisition and development of additional self-storage space. Its Self-Storage Operations segment includes the aggregated rental operations from the self-storage facilities it owns from same store facilities, acquired facilities, newly developed and expanded facilities, and other non-same store facilities. Its Ancillary Operations segment includes the combined operations of its tenant reinsurance, merchandise sales, and third-party property management operating segments. It owned interests in over 3,085 self-storage facilities located in 40 states in the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Public Storage Leadership Transition and Earnings Insights
- Leadership Transition: Public Storage announced Tom Boyle's promotion to CEO and Trustee, marking a significant shift in strategic direction, with Boyle's exceptional performance in finance and operations laying the groundwork for future growth.
- Financial Performance: Core FFO for Q4 was $4.26 per share, with full-year core FFO at $16.97, and despite same-store revenue and NOI declining by 0.2% and 1.5% respectively, a 20% growth in non-same-store NOI demonstrates the company's success in diversifying revenue sources.
- Future Outlook: The company established initial 2026 core FFO guidance in the range of $16.35 to $17, and while facing negative expectations for same-store NOI and revenue, management remains optimistic about contributions from non-same-store income and tenant insurance programs.
- Strategic Shift: The launch of PS4.0 represents not only a leadership update but also a strategic overhaul in capital allocation and digital transformation, aimed at enhancing overall performance and addressing market challenges.
See More
Public Storage Q4 Earnings Exceed Expectations
- Strong Financial Performance: Public Storage reported a Q4 core FFO of $4.26, beating expectations by $0.05, which reflects the company's robust market performance and boosts investor confidence.
- Stable Revenue Growth: The company achieved Q4 revenue of $1.22 billion, a 3.4% year-over-year increase, exceeding market expectations by $10 million, indicating a solid growth trajectory in the competitive REIT sector.
- 2026 Guidance Outlook: Public Storage forecasts 2026 same-store revenue growth between -2.2% and 0%, with expense growth projected at 1.5% to 2.8%, reflecting a cautious outlook on future market conditions that may impact long-term investor confidence.
- Non-Same Store NOI Projections: The expected non-same store net operating income for 2026 ranges from $335,000 to $355,000, with core FFO per share anticipated between $16.35 and $17.00, showcasing the company's potential for business expansion and strategic planning.
See More
Public Storage Set to Release Q4 Earnings on February 12
- Earnings Announcement Schedule: Public Storage (PSA) is set to announce its Q4 earnings on February 12 after market close, with consensus estimates predicting a FFO of $4.21 per share and revenue of $1.21 billion, providing crucial financial health indicators for investors.
- Market Expectation Analysis: Ahead of the earnings report, the market maintains a cautious stance on Public Storage's FFO and revenue expectations, reflecting investor concerns about its long-term growth potential, which may influence its stock performance.
- Rating Changes Impact: Prior to the earnings release, BofA downgraded Public Storage and Extra Space Storage, which could negatively affect market sentiment, particularly against a backdrop of waning investor confidence in REITs.
- Industry Dynamics Observation: Concurrently, J.P. Morgan adjusted ratings for other real estate firms like Realty Income and FRT, indicating fluctuations in market confidence regarding real estate investments, prompting investors to closely monitor potential impacts on Public Storage.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
BofA Downgrades Self-Storage REITs, Impacting Stocks
- Rating Downgrade Impact: BofA Securities downgraded Public Storage (PSA) from Buy to Neutral, lowering the price target from $336 to $310, which led to a 1.79% drop in PSA's stock price to $283.34 during Thursday morning trading, reflecting market concerns over future profitability.
- Revenue Growth Slowdown: BofA highlighted that despite PSA's fundamentals having bottomed, there are no meaningful catalysts to drive improvement, and limited rental revenue growth is expected in 2026, particularly due to pricing restrictions related to the Los Angeles fires affecting 16.2% of same-store net operating income.
- EXR Rating Downgrade: Extra Space Storage (EXR) was downgraded to Underperform with a price target cut from $163 to $143, as BofA noted a lack of clear signs of demand recovery, which could lead to guidance falling short of market expectations and increase the risk of near-term negative revenue surprises.
- Divergent Market Reactions: While BofA lowered its 2026 same-store revenue growth assumptions by approximately 30 basis points and cut estimates by about 1.3% for both self-storage REITs, some analysts still rate PSA as a Buy, whereas EXR faces mixed opinions, with Quant rating it as Hold.
See More
Public Storage Leadership Transition and Earnings Insights
- Leadership Transition: Public Storage announced Tom Boyle's promotion to CEO and Trustee, marking a significant shift in strategic direction, with Boyle's exceptional performance in finance and operations laying the groundwork for future growth.
- Financial Performance: Core FFO for Q4 was $4.26 per share, with full-year core FFO at $16.97, and despite same-store revenue and NOI declining by 0.2% and 1.5% respectively, a 20% growth in non-same-store NOI demonstrates the company's success in diversifying revenue sources.
- Future Outlook: The company established initial 2026 core FFO guidance in the range of $16.35 to $17, and while facing negative expectations for same-store NOI and revenue, management remains optimistic about contributions from non-same-store income and tenant insurance programs.
- Strategic Shift: The launch of PS4.0 represents not only a leadership update but also a strategic overhaul in capital allocation and digital transformation, aimed at enhancing overall performance and addressing market challenges.
See More
Public Storage Q4 Earnings Exceed Expectations
- Strong Financial Performance: Public Storage reported a Q4 core FFO of $4.26, beating expectations by $0.05, which reflects the company's robust market performance and boosts investor confidence.
- Stable Revenue Growth: The company achieved Q4 revenue of $1.22 billion, a 3.4% year-over-year increase, exceeding market expectations by $10 million, indicating a solid growth trajectory in the competitive REIT sector.
- 2026 Guidance Outlook: Public Storage forecasts 2026 same-store revenue growth between -2.2% and 0%, with expense growth projected at 1.5% to 2.8%, reflecting a cautious outlook on future market conditions that may impact long-term investor confidence.
- Non-Same Store NOI Projections: The expected non-same store net operating income for 2026 ranges from $335,000 to $355,000, with core FFO per share anticipated between $16.35 and $17.00, showcasing the company's potential for business expansion and strategic planning.
See More
Public Storage Set to Release Q4 Earnings on February 12
- Earnings Announcement Schedule: Public Storage (PSA) is set to announce its Q4 earnings on February 12 after market close, with consensus estimates predicting a FFO of $4.21 per share and revenue of $1.21 billion, providing crucial financial health indicators for investors.
- Market Expectation Analysis: Ahead of the earnings report, the market maintains a cautious stance on Public Storage's FFO and revenue expectations, reflecting investor concerns about its long-term growth potential, which may influence its stock performance.
- Rating Changes Impact: Prior to the earnings release, BofA downgraded Public Storage and Extra Space Storage, which could negatively affect market sentiment, particularly against a backdrop of waning investor confidence in REITs.
- Industry Dynamics Observation: Concurrently, J.P. Morgan adjusted ratings for other real estate firms like Realty Income and FRT, indicating fluctuations in market confidence regarding real estate investments, prompting investors to closely monitor potential impacts on Public Storage.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
BofA Downgrades Self-Storage REITs, Impacting Stocks
- Rating Downgrade Impact: BofA Securities downgraded Public Storage (PSA) from Buy to Neutral, lowering the price target from $336 to $310, which led to a 1.79% drop in PSA's stock price to $283.34 during Thursday morning trading, reflecting market concerns over future profitability.
- Revenue Growth Slowdown: BofA highlighted that despite PSA's fundamentals having bottomed, there are no meaningful catalysts to drive improvement, and limited rental revenue growth is expected in 2026, particularly due to pricing restrictions related to the Los Angeles fires affecting 16.2% of same-store net operating income.
- EXR Rating Downgrade: Extra Space Storage (EXR) was downgraded to Underperform with a price target cut from $163 to $143, as BofA noted a lack of clear signs of demand recovery, which could lead to guidance falling short of market expectations and increase the risk of near-term negative revenue surprises.
- Divergent Market Reactions: While BofA lowered its 2026 same-store revenue growth assumptions by approximately 30 basis points and cut estimates by about 1.3% for both self-storage REITs, some analysts still rate PSA as a Buy, whereas EXR faces mixed opinions, with Quant rating it as Hold.
See More
