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Extra Space Storage Inc (EXR)
NYSE:EXR
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Extra Space Storage
(NYSE:EXR)
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Rating:75Outperform
Price Target:
$172.00
â–²(13.88% Upside)
Action:ReiteratedDate:02/23/26
EXR scores well primarily on strong underlying fundamentals (profitability and cash generation) and a supportive technical uptrend. The score is held back by a relatively rich valuation (high P/E) and cautious 2026 outlook that suggests limited near-term upside, plus leverage and cost/regulatory headwinds.
Positive Factors
High-quality cash generation
Extra Space generates strong, high-quality cash: FCF has historically tracked net income near 1x and operating cash flow has grown materially vs 2020. Durable cash conversion supports dividends, debt service, buybacks, and disciplined capital deployment over the next 2–6 months.
Large third-party management platform
Management Plus scale creates recurring fee income and an acquisition pipeline: a 1,856-store managed platform broadens revenue diversification, lowers operating unit cost via shared services, and supplies JV/acquisition opportunities that sustain external growth beyond cyclical tenant demand.
Conservative balance sheet structure
High proportion of fixed-rate debt and a moderate weighted-rate reduce refinancing and rate volatility risk, preserving cash flow stability. Limited near-term material maturities and a commercial paper program add funding flexibility and support steady capital allocation.
Negative Factors
Elevated absolute debt and rising leverage
Although leverage improved from peak levels, absolute debt remains substantial and leverage rose again in 2025. This limits financial flexibility if macro or operating pressures persist, increasing sensitivity to higher rates and potentially constraining opportunistic investment or buybacks.
Regulatory and litigation risk in key markets
Active NYC litigation and Los Angeles pricing limits create structural revenue and compliance risk in major markets. Price-cap actions or disclosures can permanently reduce achievable rates or raise operating/legal costs, eroding pricing power where urban exposure is material to returns.
Supply overhang and muted 2026 outlook
Ongoing new supply in several markets is slowing rate pass-through and NOI conversion; 2026 guidance centers on flat core FFO and same-store NOI ranges that include declines. Structural market absorption delays recovery in revenue-to-NOI flow and constrains near-term organic earnings growth.
Extra Space Storage (EXR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.31B
Dividend Yield5.01%
Average Volume (3M)1.35M
Price to Earnings (P/E)32.9
Beta (1Y)0.59
Revenue Growth3.38%
EPS Growth17.16%
CountryUS
Employees8,012
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)1.36
Shares Outstanding211,137,660
10 Day Avg. Volume1,356,725
30 Day Avg. Volume1,354,176
Financial Highlights & Ratios
PEG Ratio2.04
Price to Book (P/B)2.05
Price to Sales (P/S)8.17
P/FCF Ratio15.08
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue13.89
Enterprise Value/Gross Profit48.85
Enterprise Value/Ebitda14.69
Forecast
1Y Price Target
$153.00Price Target Upside1.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)4.77
Revenue Forecast (FY)$3.46B
Extra Space Storage Business Overview & Revenue Model
Company DescriptionExtra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of September 30, 2020, the Company owned and/or operated 1,906 self-storage stores in 40 states, Washington, D.C. and Puerto Rico. The Company's stores comprise approximately 1.4 million units and approximately 147.5 million square feet of rentable space. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. The Company is the second largest owner and/or operator of self-storage stores in the United States and is the largest self-storage management company in the United States.
How the Company Makes MoneyExtra Space Storage primarily generates revenue through the rental of storage units to customers. The company's revenue model is based on leasing space to individuals and businesses for short-term and long-term storage needs. Key revenue streams include monthly rental fees for storage units, which can vary based on size, location, and demand. Additional sources of income include the sale of retail products such as locks, boxes, and packing supplies, as well as fees from ancillary services like truck rentals. The company also benefits from partnerships with moving companies and online platforms that facilitate the booking of storage units. Seasonal demand fluctuations and local market conditions can impact revenue, but the company strategically manages pricing and promotions to optimize occupancy rates and maximize earnings.
Extra Space Storage Key Performance Indicators (KPIs)
Any
Ending Same-Store Occupancy
Tracks the occupancy rate of stores that have been open for a consistent period, reflecting demand stability and the effectiveness of the company's pricing and marketing strategies.
Tracks the occupancy rate of stores that have been open for a consistent period, reflecting demand stability and the effectiveness of the company's pricing and marketing strategies.
Data provided by:
The Fly
The FlyExtra Space Storage Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveys cautious optimism. Company results show improving operational trends (positive Q4 core FFO, improving move-in rates, modest same-store revenue and NOI gains), strong external growth execution (acquisitions, JV activity, managed-store growth), and a conservative, flexible balance sheet. Management tempered expectations with cautious 2026 guidance that includes ranges with possible negative outcomes, cited headwinds from localized regulatory actions (Los Angeles restrictions, NYC litigation), lingering supply effects in several markets, and elevated cost items (healthcare, insurance, marketing). Overall the positives around liquidity, disciplined capital deployment, and improving leasing trends outweigh the headwinds, but the tone remains prudent given ongoing uncertainty.Q4-2025 Updates
Positive Updates
Positive FFO and Same-Store Revenue Momentum
Delivered positive core FFO growth of 2.5% in Q4 and full-year core FFO growth of 1.1%; same-store revenue returned to positive +0.4% in Q4 and same-store NOI for the quarter was +0.1%.
Improving New-Customer Rate Trends and Occupancy
16 of the top 20 markets had positive year-over-year move-in rates in Q4; new-customer rates were up slightly over 6% in the first 45 days of 2026; mid-February occupancy was 92.5% (≈40 bps down year-over-year) while move-in trends continued to improve.
Active and Diversified External Growth Execution
Closed 27 operating stores for $305M in the quarter (69 stores / $826M for the full year); acquired 7 JV stores for $107M gross and sold interests in 9 JV properties, unlocking a $37M promote; added 78 third-party managed stores with net growth of 45 stores in the quarter; full-year added 379 stores (281 net), bringing total managed portfolio to 1,856 stores.
Capital Deployment and Share Repurchase
Repurchased approximately $141M of common shares at an average price of about $129, while also deploying capital into acquisitions and JV transactions to drive accretive external growth.
Bridge Loan Platform Expansion
Originated $80M in bridge loans in the quarter, growing the portfolio to approximately $1.5B at year-end and creating an acquisition pipeline and recurring return stream.
Operating Expense Improvements and Targeted Investments
Same-store operating expenses increased only 1.1% in the quarter; property taxes declined 3.4% (normalization of prior increases) and property operating expenses (including utilities) were down over 5%; company invested in marketing to drive move-ins.
Conservative, Flexible Balance Sheet
Low leverage profile with ~93% of total debt at fixed rates (net of loan receivables), weighted average interest rate of 4.3%; commercial paper program saved over $3M in incremental interest expense during 2025 and only one material debt maturity in 2026.
Prudent 2026 Guidance Reflecting Recovery Path
2026 guidance implies a slow, steady recovery: same-store revenue -0.5% to +1.5%, expense growth 2%–3.5%, same-store NOI -2.25% to +1.25%, and core FFO $8.05–$8.35 per share (roughly flat at midpoint), with most acquisitions expected to be JV-structured.
Negative Updates
Cautious / Mixed 2026 Guidance
Guidance range includes potential declines: same-store revenue -0.5% to +1.5% and same-store NOI -2.25% to +1.25%; core FFO guidance is roughly flat at the midpoint, indicating limited near-term upside baked into guidance.
Occupancy Slightly Below Prior Year and Slow NOI Conversion
Occupancy was 92.5% (≈40 bps down year-over-year) and conversion of improving street rates to same-store NOI is gradual — only ~0.1% same-store NOI growth in the quarter and about half of markets remained in negative NOI territory.
Elevated Certain Operating Costs
Health care costs were higher in Q4 and insurance was described as 'running a little hot' in Q3/Q4 (though expected to improve midyear); marketing expense was elevated (intentional investment) and remains a variable expense that could pressure margins if returns weaken.
Regulatory and Legal Risk in Key Jurisdictions
Facing an active litigation complaint from the New York City Department of Consumer and Worker Protection citing 117 consumer complaints over 3 years (≈0.1% of customers in that period); ongoing regulatory scrutiny and potential for disclosure/price-cap actions (Los Angeles County pricing restrictions expected to dilute results by ~40 bps).
Slower/Selective Acquisition Posture
Management expects lower on-balance-sheet acquisition capital deployment (guidance implies less direct acquisition volume vs. prior year) with most 2026 acquisitions expected to be JV-structured; acquisition volume guidance is lower than last year, reflecting deal return considerations.
Supply Overhang and Slow Flow-Through
Markets are still absorbing new supply delivered over the last few years; while supply additions are expected to step down modestly in 2026, prior deliveries continue to pressure some markets' performance and delay rate roll-through to NOI.
Bridge Loan Balances Expected to Remain Flat
Bridge loan portfolio (~$1.5B) is expected to be generally flat in 2026, indicating limited growth contribution from this channel in the near term despite origination activity.
Company Guidance
Extra Space guided 2026 same-store revenue of -0.5% to +1.5% (midpoint 0.5%), expense growth of 2.0%–3.5%, resulting in same-store NOI of -2.25% to +1.25% and core FFO of $8.05–$8.35 per share (midpoint roughly flat year‑over‑year); the outlook assumes average bridge loan balances generally flat versus 2025 and that most 2026 acquisitions will be completed in joint‑venture structures. Management emphasized the guidance does not assume any meaningful housing recovery or changes to Los Angeles County pricing restrictions (an estimated ~40 bps drag), and noted positive operating trends entering the year (mid‑February occupancy ~92.5%, ~40 bps down YoY, and new‑customer rates up ~6%) while calling for disciplined expense management (property taxes normalizing, insurance expected to improve midyear) and flexible, marketing‑driven investments.Extra Space Storage Financial Statement Overview
Summary
Strong profitability and cash generation support a high-quality fundamental profile (high margins; free cash flow closely tracking earnings). The main offsets are meaningful leverage (with a slight uptick in 2025) and recent volatility/softness in gross margin and free-cash-flow trends.Income Statement
Revenue has expanded meaningfully over the cycle (2020–2024), with growth slowing in 2024 and re-accelerating in 2025. Profitability remains a clear strength: operating and EBITDA margins are consistently very high, supporting strong earnings power. The key weakness is margin volatility—2025 shows a sharp drop in gross margin versus prior years, which warrants monitoring even though net margin held up well.86
Very Positive
Balance Sheet
The balance sheet is solid but levered. Debt-to-equity improved materially from elevated levels in 2020–2022 to a more moderate range in 2023–2025, but 2025 shows leverage ticking up again. Equity and assets have scaled up significantly since 2022, supporting a larger platform, yet the company still carries substantial absolute debt, which can pressure flexibility if rates stay higher or fundamentals weaken.72
Positive
Cash Flow
Cash generation is strong and high-quality: free cash flow closely tracks net income across years (near 1x), indicating earnings are well supported by cash. Operating cash flow has grown substantially versus 2020, though growth moderated recently and free cash flow declined in 2025 after gains in 2022–2024. Overall cash flow remains a strength, with the main risk being the recent slowdown/decline in free cash flow growth.83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.38B | 3.34B | 2.62B | 1.97B | 1.61B |
| Gross Profit | 960.17M | 2.55B | 2.02B | 1.54B | 1.23B |
| EBITDA | 2.41B | 2.26B | 1.79B | 1.37B | 1.11B |
| Net Income | 974.00M | 854.68M | 803.20M | 860.69M | 827.65M |
Balance Sheet | |||||
| Total Assets | 29.26B | 28.85B | 27.46B | 12.17B | 10.47B |
| Cash, Cash Equivalents and Short-Term Investments | 138.92M | 138.22M | 99.06M | 92.87M | 71.13M |
| Total Debt | 14.97B | 13.03B | 11.25B | 7.56B | 6.19B |
| Total Liabilities | 14.94B | 13.99B | 12.04B | 8.09B | 6.69B |
| Stockholders Equity | 13.43B | 13.95B | 14.39B | 3.26B | 3.12B |
Cash Flow | |||||
| Free Cash Flow | 1.83B | 1.87B | 1.39B | 1.22B | 948.78M |
| Operating Cash Flow | 1.85B | 1.89B | 1.40B | 1.24B | 952.44M |
| Investing Cash Flow | -814.21M | -1.65B | -1.82B | -1.65B | -837.54M |
| Financing Cash Flow | -1.04B | -202.29M | 423.13M | 431.86M | -166.71M |
Extra Space Storage Technical Analysis
Positive
151.03
Price Trends
139.64
Positive
137.65
Positive
139.72
Positive
Market Momentum
2.91
Negative
62.55
Neutral
52.17
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 151.03 is above the 20-day moving average (MA) of 144.20, above the 50-day MA of 139.64, and above the 200-day MA of 139.72, indicating a bullish trend. The MACD of 2.91 indicates Negative momentum. The RSI at 62.55 is Neutral, neither overbought nor oversold. The STOCH value of 52.17 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 0 New Risks
Extra Space Storage Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $33.31B | 32.91 | 7.10% | 5.01% | 3.38% | 17.16% | |
72 Outperform | $1.49B | 13.48 | 6.09% | 13.07% | -11.22% | -24.64% | |
71 Outperform | $9.43B | 26.39 | 12.82% | 5.69% | 4.19% | -12.19% | |
71 Outperform | $53.89B | 34.06 | 18.82% | 4.63% | 2.30% | -0.22% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $4.71B | 50.33 | 7.29% | 8.28% | -4.98% | -65.45% |
* Real Estate Sector Average
EXR
Extra Space Storage
151.03
5.24
3.59%
CUBE
Cubesmart
41.14
1.96
5.01%
PSA
Public Storage
307.06
15.71
5.39%
NSA
National Storage Affiliates
35.02
-0.99
-2.75%
IIPR
Innovative Industrial Properties
52.96
-12.19
-18.71%
Extra Space Storage Corporate Events
Business Operations and StrategyExecutive/Board Changes
Extra Space Storage Names Noah Springer as President
Positive
Jan 5, 2026
On January 5, 2026, Extra Space Storage Inc. announced that its Board of Directors promoted longtime executive Noah Springer, formerly Executive Vice President, Chief Strategy and Partnership Officer, to President, with the company’s operations function now reporting directly to him. The appointment elevates a 20-year company veteran who played a central role in building Management Plus, the sector’s largest third-party management platform with over 1,800 locations, and signals a consolidation of strategic, operational and human capital oversight under Springer as Extra Space’s senior leadership team prepares to present to investors at the KeyBanc Capital Markets Self Storage Investor Forum in New York on January 8, 2026.
The most recent analyst rating on (EXR) stock is a Hold with a $142.00 price target. To see the full list of analyst forecasts on Extra Space Storage stock, see the EXR Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.