Ki Bin Kim, an analyst from Truist Financial, maintained the Hold rating on Extra Space Storage (EXR – Research Report). The associated price target remains the same with $155.00.
Ki Bin Kim has given his Hold rating due to a combination of factors influencing Extra Space Storage’s financial performance. The company’s fourth-quarter results showed some stabilization in core operations, but there were still declines in key metrics. Specifically, same-store revenue slightly decreased year-over-year, and same-store net operating income saw a more significant drop, partly due to increased expenses.
Additionally, the company’s guidance for 2025 indicates modest growth in same-store revenue but also highlights continued pressure from rising expenses. The recent investments in acquisitions and joint ventures, along with bridge loan originations, suggest an active strategy, but these moves also contribute to the cautious outlook. The impact of LA rent moratoriums appears to be less severe for Extra Space Storage compared to its peers, yet it remains a factor to consider. Overall, these elements combined lead to a Hold rating as the company navigates these challenges.
Bin Kim covers the Real Estate sector, focusing on stocks such as Eastgroup Properties, Extra Space Storage, and Safehold. According to TipRanks, Bin Kim has an average return of 9.3% and a 63.13% success rate on recommended stocks.
In another report released yesterday, BMO Capital also maintained a Hold rating on the stock with a $170.00 price target.
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