Extra Space Storage (EXR) AI Stock Analysis

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Extra Space Storage

(NYSE:EXR)

Rating:79Outperform

Price Target:

$167.00

▲(12.90%Upside)

Extra Space Storage's strong financial performance and positive earnings call are the most significant contributors to its overall score. The technical analysis and high valuation present some challenges, but the company’s dividend yield and strategic initiatives support a positive outlook. While economic uncertainties pose risks, the company's resilience and operational efficiency provide confidence in its continued performance.

Positive Factors

Acquisitions and Investments

EXR continued to acquire various acquisitions/JVs with $153.8 million for the acquisition of 12 operating stores.

Interest Income Growth

EXR's loan book is expected to expand to $1.45B (+39% Y/Y) contributing +9¢ higher expected interest income.

Occupancy Rates

Average same store occupancy was 94.1% in 4Q24, up 70 basis points year-over-year, indicating improved occupancy.

Negative Factors

Guidance and Expectations

Initial '25 guidance missed by -1.9% with expected SSNOI also worse than expected.

Property Tax Impact

Property taxes were notably higher than expected.

SSNOI Performance

SSNOI did decline -1.2% YoY, which was weighed by the 4.2% increase in SSEXP.

Extra Space Storage (EXR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$32.29B

Dividend Yield4.45%

Average Volume (3M)933.72K

Price to Earnings (P/E)33.9

Beta (1Y)0.78

Revenue Growth14.72%

EPS Growth-4.21%

CountryUS

Employees8,012

SectorReal Estate

Sector Strength69

IndustryREIT - Industrial

Share Statistics

EPS (TTM)1.28

Shares Outstanding212,210,880

10 Day Avg. Volume885,776

30 Day Avg. Volume933,719

Financial Highlights & Ratios

PEG Ratio5.21

Price to Book (P/B)2.26

Price to Sales (P/S)0.00

P/FCF Ratio16.26

Enterprise Value/Market Cap0.97

Enterprise Value/Revenue2.43

Enterprise Value/Gross Profit14.53

Enterprise Value/Ebitda3.48

Forecast

1Y Price Target

$156.33

Price Target Upside5.69% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering15

Extra Space Storage Business Overview & Revenue Model

Company DescriptionExtra Space Storage Inc. (EXR) is a prominent real estate investment trust (REIT) specializing in self-storage properties across the United States. Founded in 1977 and headquartered in Salt Lake City, Utah, the company operates a vast portfolio of self-storage facilities, catering to both residential and commercial customers. Extra Space Storage offers a variety of storage solutions including climate-controlled units, RV and boat storage, and business storage options, aiming to provide convenient and secure storage experiences.

How the Company Makes MoneyExtra Space Storage generates revenue primarily through rental income from its self-storage units. The company leases storage spaces to individuals and businesses on a monthly basis, offering flexibility and convenience to its customers. In addition to rental income, Extra Space Storage also earns ancillary revenues from services such as tenant insurance plans, administrative fees, and the sale of storage-related products like locks and packing supplies. The company’s profitability is further enhanced through strategic acquisitions and partnerships, which help expand its footprint and diversify its asset base, as well as through efficient property management that focuses on maintaining high occupancy rates and optimizing rental pricing.

Extra Space Storage Key Performance Indicators (KPIs)

Any

Ending Same-Store Occupancy

Ending Same-Store Occupancy
Measures the occupancy rate of stores that have been open for a full year, providing insight into demand stability and operational efficiency.

Chart InsightsExtra Space Storage has maintained strong occupancy levels near historical highs, despite a slight dip in 2023. The recent earnings call highlighted strategic growth in third-party management and investments, which could bolster future occupancy rates. However, challenges such as increased property taxes and external factors like the LA wildfires pose risks to revenue and NOI. The company's guidance suggests a cautious outlook for 2025, with potential for modest revenue growth but continued pressure on expenses.

Data provided by:

Main Street Data

Extra Space Storage Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 4.59%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Positive

The earnings call highlighted a strong overall performance with increased FFO, high occupancy, and successful growth initiatives. However, there were challenges from uncontrollable expense increases and economic uncertainties. Despite the challenges, the company's strategic initiatives and resilience in the sector contributed to a positive outlook.

Q1-2025 Updates

Positive Updates

Solid First Quarter Performance

Core FFO increased by 2% year-over-year to $2 per share. Same-store occupancy was at 93.4%, showing a 100 basis points improvement from the first quarter of 2024.

Strong External Growth Initiatives

Completed $153.8 million in wholly owned acquisitions, adding 12 high-quality stores to the portfolio. Management Plus platform added a net of 100 properties, bringing the third-party managed portfolio to 1,675 stores.

Effective Capital Strategy

Executed two bond offerings, showing continued access to public debt markets. Maintained a conservative leverage profile with almost 90% of debt at fixed rates.

Positive Impact from Life Storage Assets

Former Life Storage assets showed improvements in leasing and pricing. Rentals at these stores are up 10.4% since rebranding.

Negative Updates

Uncontrollable Expense Increase

Uncontrollable expenses increased by 8% due to property tax pressure and weather-related expenses, leading to a same-store NOI decrease of 1.2%.

Challenging Economic Environment

Concerns about interest rates, volatility, and economic uncertainty remain, affecting the broader market.

Company Guidance

During Extra Space Storage's Q1 2025 earnings call, the company provided a robust outlook for the year. Key metrics highlighted included a 2% year-over-year increase in core funds from operations (FFO) to $2 per share and a historically high same-store occupancy rate of 93.4%, reflecting a 100 basis points improvement from Q1 2024. The company also reported a 0.3% same-store revenue growth driven by effective revenue management. External growth initiatives were underscored by $153.8 million in wholly-owned acquisitions and the addition of 12 stores to the portfolio. The bridge loan program remained active with $53.2 million in loans closed and a $1.4 billion loan balance maintained. The company's management plus platform expanded by 113 stores, reinforcing its industry-leading position with 1,675 third-party managed stores. Despite economic uncertainties, Extra Space Storage maintained its 2025 guidance, emphasizing the self-storage sector's resilience, a diversified portfolio, and strong operational strategies. The company ended the quarter with a conservative leverage profile and a 4.4% weighted average interest rate, demonstrating robust financial health and strategic growth planning.

Extra Space Storage Financial Statement Overview

Summary

Extra Space Storage displays a strong financial profile with solid revenue growth, healthy profit margins, and robust cash flow generation. The balance sheet reflects a stable leverage position with adequate equity backing. While the return on equity could be improved, the company's financials suggest a well-managed business with good growth potential and operational efficiency.

Income Statement

Very Positive

Extra Space Storage shows strong financial performance with significant revenue growth, evidenced by a 27.87% increase from 2022 to 2023. The TTM (Trailing-Twelve-Months) data reveals a solid gross profit margin of approximately 65.91% and a net profit margin of 27.83%. The EBIT and EBITDA margins are also robust at 43.67% and 72.58% respectively. The company has maintained profitability while expanding its revenue base, indicating effective management and operational efficiency.

Balance Sheet

Positive

The company's balance sheet is relatively strong with a decent equity ratio of 47.89% in TTM, suggesting a healthy level of equity financing. The debt-to-equity ratio stands at 0.95, indicating a balanced leverage position. However, the return on equity (ROE) is moderate at 6.57%, which could be improved to enhance shareholder value. Overall, the company maintains a stable financial position with manageable debt levels.

Cash Flow

Very Positive

Extra Space Storage exhibits strong cash flow generation capabilities. The operating cash flow to net income ratio is high at 2.09, demonstrating effective cash conversion from profits. The free cash flow to net income ratio is also robust at 2.12, indicating substantial free cash flow relative to earnings. The company has shown consistent free cash flow growth, enhancing its capacity to fund operations and invest in growth opportunities.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.28B	3.26B	2.56B	1.92B	1.58B	1.36B
	Gross Profit
2.16B	2.35B	1.89B	1.46B	1.18B	969.10M
	EBIT
1.43B	1.32B	1.17B	1.05B	975.95M	666.14M
	EBITDA
2.38B	2.16B	1.79B	1.33B	1.11B	894.87M
	Net Income Common Stockholders
912.05M	854.68M	803.20M	860.69M	827.65M	481.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
119.56M	138.22M	99.06M	92.87M	71.13M	109.12M
	Total Assets
28.99B	28.85B	27.46B	12.17B	10.47B	9.40B
	Total Debt
13.25B	13.03B	11.25B	7.56B	6.19B	6.01B
	Net Debt
13.13B	12.89B	11.15B	7.47B	6.12B	5.90B
	Total Liabilities
14.22B	13.99B	12.04B	8.09B	6.69B	6.46B
	Stockholders Equity
13.89B	13.95B	14.39B	3.26B	3.12B	2.55B
Cash Flow		Free Cash Flow
1.94B	1.87B	1.39B	1.22B	948.78M	764.14M
	Operating Cash Flow
1.90B	1.89B	1.40B	1.24B	952.44M	771.23M
	Investing Cash Flow
-1.71B	-1.65B	-1.82B	-1.65B	-837.54M	-955.43M
	Financing Cash Flow
-128.73M	-202.29M	423.13M	431.86M	-166.71M	241.47M

Extra Space Storage Technical Analysis

Technical Analysis Sentiment

Positive

Last Price147.92

Price Trends

50DMA

144.04

Positive

100DMA

147.60

Positive

200DMA

155.93

Negative

Market Momentum

MACD

1.04

Positive

RSI

53.02

Neutral

STOCH

31.57

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXR, the sentiment is Positive. The current price of 147.92 is above the 20-day moving average (MA) of 147.80, above the 50-day MA of 144.04, and below the 200-day MA of 155.93, indicating a neutral trend. The MACD of 1.04 indicates Positive momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 31.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXR.

Extra Space Storage Risk Analysis

Extra Space Storage disclosed 30 risk factors in its most recent earnings report. Extra Space Storage reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 2 New Risks

We may record losses as a result of the bankruptcy, insolvency, or other credit failure of the borrowers under our bridge lending program or other companies in which we have invested. In that case, our revenues and results of operations may be materially and adversely impacted. Q4, 2024

State and federal regulations relating to natural disasters, public health emergencies or consumer protection could adversely affect our results of operations. Q4, 2024

Extra Space Storage Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXR	79 Outperform	$32.29B	33.88	6.46%	4.45%	14.72%	-4.21%
CUBE	76 Outperform	$9.59B	24.73	13.72%	4.99%	2.15%	-5.99%
IIPR	75 Outperform	$1.56B	10.68	7.78%	13.69%	-1.33%	-8.62%
SELF	73 Outperform	$62.93M	26.15	4.98%	5.22%	3.58%	8.22%
PSA	73 Outperform	$52.05B	29.46	20.20%	4.04%	3.08%	-8.54%
Sector *	60 Neutral	$2.76B	10.59	0.51%	8507.90%	5.51%	-19.44%
NSA	53 Neutral	$4.59B	57.55	5.66%	6.62%	-9.89%	-70.29%

* Real Estate Sector Average

Performance Comparison

EXR

Extra Space Storage

147.92

11.28

8.26%

CUBE

Cubesmart

41.88

2.19

5.52%

PSA

Public Storage

300.14

39.92

15.34%

NSA

National Storage Affiliates

34.05

0.44

1.31%

IIPR

Innovative Industrial Properties

56.62

-40.23

-41.54%

SELF

Global Self Storage

5.64

0.95

20.26%

Extra Space Storage Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy

Extra Space Storage Approves Key Proposals at Annual Meeting

Neutral

May 23, 2025

On May 21, 2025, Extra Space Storage Inc. held its annual meeting of stockholders, where several key proposals were approved. These included the election of ten board members, the ratification of Ernst & Young LLP as the independent auditor for 2025, and the approval of the Amended and Restated 2015 Incentive Award Plan. These decisions are expected to impact the company’s governance and operational strategies moving forward.

The most recent analyst rating on (EXR) stock is a Hold with a $163.00 price target. To see the full list of analyst forecasts on Extra Space Storage stock, see the EXR Stock Forecast page.

Executive/Board Changes

Extra Space Storage Announces CFO Transition Plan

Neutral

May 19, 2025

On May 19, 2025, Extra Space Storage Inc. announced the retirement of P. Scott Stubbs, its Executive Vice President and Chief Financial Officer, effective December 31, 2025. Jeff Norman, currently the Senior Vice President of Capital Markets and Treasury, will succeed Stubbs as CFO starting July 1, 2025. Norman, who has been with the company since 2012, has played a key role in its financial operations and will continue to work closely with Stubbs until the end of the year. This leadership transition is expected to maintain the company’s strategic direction and stability, as Norman has been a primary contact for investors and has been prepared for this role.

The most recent analyst rating on (EXR) stock is a Hold with a $180.00 price target. To see the full list of analyst forecasts on Extra Space Storage stock, see the EXR Stock Forecast page.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.