Analysis of Extra Space Storage Investment Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy EXR?
Source: Fool
- Market Performance: Extra Space Storage (EXR) has not surpassed $180 per share in over three and a half years and has barely dipped below $120 in the past year, indicating market perception of stability but lack of growth expectations.
- Industry Competitive Pressure: While EXR benefits from scale in the self-storage sector, it faces supply pressures, slower rent growth, and rising interest rates impacting real estate valuations, making it appear as a 'fine' rather than 'great' investment.
- Earnings Stability: With a dividend yield of 4.43%, EXR's business model ensures stability; however, slowing growth may render it a mediocre investment, unable to generate significant wealth.
- Investor Expectations: Current investors in EXR are likely to experience modest returns rather than market-beating gains, suggesting it is a safe long-term hold but lacks excitement as an investment.
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Analyst Views on EXR
Wall Street analysts forecast EXR stock price to rise
11 Analyst Rating
4 Buy
7 Hold
0 Sell
Moderate Buy
Current: 147.840
Low
142.00
Averages
152.00
High
178.00
Current: 147.840
Low
142.00
Averages
152.00
High
178.00
About EXR
Extra Space Storage, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, manages, provides lending to, acquires, develops and redevelops self-storage properties (stores). Its stores offer month-to-month rental of storage space for personal or business use. Its segments include self-storage operations and tenant reinsurance. Its self-storage operations segment includes rental operations of wholly owned stores. Its tenant reinsurance segment includes the reinsurance of risks relating to the loss of goods stored by tenants in its stores. The Company owns and operates 4,238 self-storage properties, which comprise approximately 2.9 million units and approximately 326.9 million square feet of rentable storage space operating under the Extra Space brand. It offers customers a selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage.
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.
Extra Space Storage to Announce Q4 Earnings on February 19
- Earnings Announcement Schedule: Extra Space Storage is set to announce its Q4 earnings on February 19 after market close, with consensus estimates predicting a FFO of $2.04 per share and revenue of $732.86 million, indicating investor focus on the company's financial performance.
- Market Reaction Analysis: Ahead of the earnings release, BofA downgraded both Public Storage and Extra Space Storage, reflecting a cautious market sentiment regarding the future performance of these companies, which may impact investor confidence.
- Dividend Declaration: Extra Space Storage declared a dividend of $1.62 per share, demonstrating the company's ongoing commitment to maintaining stable cash flow and returning value to shareholders despite market challenges.
- Historical Performance Review: Seeking Alpha's Quant Rating provides crucial historical earnings data for Extra Space Storage, offering investors important insights to assess the company's future growth potential and associated risks.
See More
Analysis of CubeSmart's Performance in Self-Storage Sector
- Improving Industry Fundamentals: CubeSmart achieved its first year-over-year increase in move-in rates in Q3 2023 since early 2022, indicating a gradual recovery in the self-storage market after several challenging years, which could lay the groundwork for future market performance.
- Market Share Disadvantage: With only 4.9% of the U.S. self-storage market, CubeSmart lags significantly behind leaders Extra Space Storage at 14.4% and Public Storage at 11.2%, placing it at a competitive disadvantage that impacts its growth potential.
- Lack of Differentiated Growth Strategy: Unlike its competitors, CubeSmart lacks an effective differentiated growth strategy, as Extra Space Storage boasts a leading third-party management platform while Public Storage has strong in-house development capabilities, making it difficult for CubeSmart to stand out in the market.
- Joint Ventures Driving Growth: CubeSmart recently formed a $250 million joint venture with CBRE Investment Management to invest in high-growth markets, and is also constructing a $19 million joint venture development property, demonstrating its potential to accelerate growth through joint ventures.
See More
CubeSmart Faces Market Challenges and Opportunities
- Underperformance: CubeSmart has underperformed the market over the past decade, holding only 4.9% of the U.S. self-storage market compared to Extra Space Storage's 14.4%, indicating a need for a differentiated growth strategy to enhance its competitive position.
- Supply-Demand Imbalance: The influx of new self-storage properties due to low interest rates post-pandemic has pressured CubeSmart, leading to declining occupancy and rental rates, which has adversely affected overall performance, necessitating close monitoring of market recovery.
- Joint Venture Opportunities: CubeSmart recently formed a $250 million joint venture with CBRE Investment Management to invest in high-growth markets, a strategic move that could provide new growth momentum and accelerate development in the coming years.
- Customer Growth Trend: Despite challenges, CubeSmart achieved its first year-over-year increase in move-in rates since early 2022 in Q3, indicating signs of market recovery, and if this trend continues, it could significantly improve the company's market performance.
See More
Analysis of Extra Space Storage Investment Outlook
- Market Performance: Extra Space Storage (EXR) has not surpassed $180 per share in over three and a half years and has barely dipped below $120 in the past year, indicating market perception of stability but lack of growth expectations.
- Industry Competitive Pressure: While EXR benefits from scale in the self-storage sector, it faces supply pressures, slower rent growth, and rising interest rates impacting real estate valuations, making it appear as a 'fine' rather than 'great' investment.
- Earnings Stability: With a dividend yield of 4.43%, EXR's business model ensures stability; however, slowing growth may render it a mediocre investment, unable to generate significant wealth.
- Investor Expectations: Current investors in EXR are likely to experience modest returns rather than market-beating gains, suggesting it is a safe long-term hold but lacks excitement as an investment.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
Extra Space Storage Declares Quarterly Dividend
- Quarterly Dividend Declaration: Extra Space Storage has declared a quarterly dividend of $1.62 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Yield Information: The forward yield of this dividend stands at 4.43%, providing investors with a relatively attractive return, reflecting the company's competitiveness in the current market environment.
- Payment Schedule: The dividend will be payable on March 31, with a record date of March 16 and an ex-dividend date also on March 16, ensuring shareholders receive their earnings promptly.
- Investor Insights: Investors can refer to EXR's Dividend Scorecard, Yield Chart, and Dividend Growth information to assess its long-term investment value and stability.
See More
Extra Space Storage to Announce Q4 Earnings on February 19
- Earnings Announcement Schedule: Extra Space Storage is set to announce its Q4 earnings on February 19 after market close, with consensus estimates predicting a FFO of $2.04 per share and revenue of $732.86 million, indicating investor focus on the company's financial performance.
- Market Reaction Analysis: Ahead of the earnings release, BofA downgraded both Public Storage and Extra Space Storage, reflecting a cautious market sentiment regarding the future performance of these companies, which may impact investor confidence.
- Dividend Declaration: Extra Space Storage declared a dividend of $1.62 per share, demonstrating the company's ongoing commitment to maintaining stable cash flow and returning value to shareholders despite market challenges.
- Historical Performance Review: Seeking Alpha's Quant Rating provides crucial historical earnings data for Extra Space Storage, offering investors important insights to assess the company's future growth potential and associated risks.
See More
Analysis of CubeSmart's Performance in Self-Storage Sector
- Improving Industry Fundamentals: CubeSmart achieved its first year-over-year increase in move-in rates in Q3 2023 since early 2022, indicating a gradual recovery in the self-storage market after several challenging years, which could lay the groundwork for future market performance.
- Market Share Disadvantage: With only 4.9% of the U.S. self-storage market, CubeSmart lags significantly behind leaders Extra Space Storage at 14.4% and Public Storage at 11.2%, placing it at a competitive disadvantage that impacts its growth potential.
- Lack of Differentiated Growth Strategy: Unlike its competitors, CubeSmart lacks an effective differentiated growth strategy, as Extra Space Storage boasts a leading third-party management platform while Public Storage has strong in-house development capabilities, making it difficult for CubeSmart to stand out in the market.
- Joint Ventures Driving Growth: CubeSmart recently formed a $250 million joint venture with CBRE Investment Management to invest in high-growth markets, and is also constructing a $19 million joint venture development property, demonstrating its potential to accelerate growth through joint ventures.
See More
CubeSmart Faces Market Challenges and Opportunities
- Underperformance: CubeSmart has underperformed the market over the past decade, holding only 4.9% of the U.S. self-storage market compared to Extra Space Storage's 14.4%, indicating a need for a differentiated growth strategy to enhance its competitive position.
- Supply-Demand Imbalance: The influx of new self-storage properties due to low interest rates post-pandemic has pressured CubeSmart, leading to declining occupancy and rental rates, which has adversely affected overall performance, necessitating close monitoring of market recovery.
- Joint Venture Opportunities: CubeSmart recently formed a $250 million joint venture with CBRE Investment Management to invest in high-growth markets, a strategic move that could provide new growth momentum and accelerate development in the coming years.
- Customer Growth Trend: Despite challenges, CubeSmart achieved its first year-over-year increase in move-in rates since early 2022 in Q3, indicating signs of market recovery, and if this trend continues, it could significantly improve the company's market performance.
See More
Analysis of Extra Space Storage Investment Outlook
- Market Performance: Extra Space Storage (EXR) has not surpassed $180 per share in over three and a half years and has barely dipped below $120 in the past year, indicating market perception of stability but lack of growth expectations.
- Industry Competitive Pressure: While EXR benefits from scale in the self-storage sector, it faces supply pressures, slower rent growth, and rising interest rates impacting real estate valuations, making it appear as a 'fine' rather than 'great' investment.
- Earnings Stability: With a dividend yield of 4.43%, EXR's business model ensures stability; however, slowing growth may render it a mediocre investment, unable to generate significant wealth.
- Investor Expectations: Current investors in EXR are likely to experience modest returns rather than market-beating gains, suggesting it is a safe long-term hold but lacks excitement as an investment.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
Extra Space Storage Declares Quarterly Dividend
- Quarterly Dividend Declaration: Extra Space Storage has declared a quarterly dividend of $1.62 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Yield Information: The forward yield of this dividend stands at 4.43%, providing investors with a relatively attractive return, reflecting the company's competitiveness in the current market environment.
- Payment Schedule: The dividend will be payable on March 31, with a record date of March 16 and an ex-dividend date also on March 16, ensuring shareholders receive their earnings promptly.
- Investor Insights: Investors can refer to EXR's Dividend Scorecard, Yield Chart, and Dividend Growth information to assess its long-term investment value and stability.
See More
