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Extra Space Storage (EXR)
NYSE:EXR

Extra Space Storage (EXR) AI Stock Analysis

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EX

Extra Space Storage

(NYSE:EXR)

Rating:78Outperform
Price Target:
$167.00
â–²(14.03%Upside)
Extra Space Storage shows strong financial performance and strategic growth, supported by a positive earnings call. While technical indicators are mixed and valuation is on the higher side, the company's resilience in the self-storage sector and effective management provide a solid foundation for continued success.
Positive Factors
Acquisitions
EXR continued to acquire various acquisitions/JVs with $153.8 million for the acquisition of 12 operating stores.
Pricing Momentum
Results show pricing regaining some momentum in self-storage.
Negative Factors
Guidance
EXR released initial 2025 guidance which implies 0.4% Core FFO growth y/y, slightly below consensus expectations.
Property Taxes
Property taxes were notably higher than expected.
Same Store Net Operating Income (SSNOI)
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)

Extra Space Storage Business Overview & Revenue Model

Company DescriptionExtra Space Storage (EXR) is a leading real estate investment trust (REIT) specializing in self-storage properties. The company operates in the United States, offering secure and convenient storage solutions for personal, business, and vehicle needs. With a focus on customer service and innovative technology, Extra Space Storage provides a variety of unit sizes, climate-controlled options, and easy access to its facilities, catering to diverse storage demands.
How the Company Makes MoneyExtra Space Storage makes money primarily through rental income generated from leasing storage units to individuals and businesses. This revenue is sourced from monthly rental fees paid by customers for the use of storage space. The company also generates income from ancillary services such as insurance offerings, which provide additional coverage options for stored items and generate additional fees. Extra Space Storage's earnings are bolstered by strategic acquisitions and partnerships that expand its property portfolio and market presence, as well as initiatives focused on operational efficiency and maximizing occupancy rates. Revenue growth is further supported by the company’s dynamic pricing model, which adjusts rental rates based on market demand and conditions.

Extra Space Storage Key Performance Indicators (KPIs)

Any
Any
Ending Same-Store Occupancy
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.
Chart InsightsExtra Space Storage's same-store occupancy has stabilized around 93-94% after peaking in 2021. The latest earnings call highlights a 100 basis points improvement from Q1 2024, reaching 93.4% in Q1 2025, reflecting effective revenue management and strategic growth initiatives. Despite economic uncertainties and rising uncontrollable expenses, the company maintains a positive outlook, supported by strong external growth and a resilient self-storage sector. This stability in occupancy, coupled with strategic acquisitions, underscores the company's robust operational strategy and financial health.
Data provided by:Main Street Data

Extra Space Storage Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 4.68%|
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 demonstrates strong financial performance with robust revenue growth and healthy profit margins. The company's cash flow generation is impressive, but a moderate return on equity suggests room for improvement in shareholder value.
Income Statement
85
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
78
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
82
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.28B3.26B2.56B1.92B1.58B1.36B
Gross Profit
2.16B2.35B1.89B1.46B1.18B969.10M
EBIT
1.43B1.32B1.17B1.05B975.95M666.14M
EBITDA
2.38B2.16B1.79B1.33B1.11B894.87M
Net Income Common Stockholders
912.05M854.68M803.20M860.69M827.65M481.78M
Balance SheetCash, Cash Equivalents and Short-Term Investments
119.56M138.22M99.06M92.87M71.13M109.12M
Total Assets
28.99B28.85B27.46B12.17B10.47B9.40B
Total Debt
13.25B13.03B11.25B7.56B6.19B6.01B
Net Debt
13.13B12.89B11.15B7.47B6.12B5.90B
Total Liabilities
14.22B13.99B12.04B8.09B6.69B6.46B
Stockholders Equity
13.89B13.95B14.39B3.26B3.12B2.55B
Cash FlowFree Cash Flow
1.94B1.87B1.39B1.22B948.78M764.14M
Operating Cash Flow
1.90B1.89B1.40B1.24B952.44M771.23M
Investing Cash Flow
-1.71B-1.65B-1.82B-1.65B-837.54M-955.43M
Financing Cash Flow
-128.73M-202.29M423.13M431.86M-166.71M241.47M

Extra Space Storage Technical Analysis

Technical Analysis Sentiment
Negative
Last Price146.45
Price Trends
50DMA
144.19
Positive
100DMA
146.36
Positive
200DMA
153.05
Negative
Market Momentum
MACD
0.68
Positive
RSI
47.31
Neutral
STOCH
12.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXR, the sentiment is Negative. The current price of 146.45 is below the 20-day moving average (MA) of 147.72, above the 50-day MA of 144.19, and below the 200-day MA of 153.05, indicating a neutral trend. The MACD of 0.68 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 12.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.59B10.937.78%13.13%-1.33%-8.62%
EXEXR
78
Outperform
$32.77B34.386.46%4.42%14.72%-4.21%
76
Outperform
$63.15M26.254.98%5.21%3.58%8.22%
PSPSA
74
Outperform
$51.52B29.1620.20%4.13%3.08%-8.54%
73
Outperform
$9.78B25.2213.72%4.87%2.15%-5.99%
61
Neutral
$2.84B10.850.42%9.90%5.94%-21.26%
NSNSA
53
Neutral
$2.51B55.315.66%6.95%-9.89%-70.29%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EXR
Extra Space Storage
146.45
-6.00
-3.94%
CUBE
Cubesmart
42.71
-0.56
-1.29%
PSA
Public Storage
290.81
10.55
3.76%
NSA
National Storage Affiliates
32.82
-7.05
-17.68%
IIPR
Innovative Industrial Properties
57.89
-40.53
-41.18%
SELF
Global Self Storage
5.57
1.09
24.33%

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
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.