Extra Space Storage initiated with a Sector Perform at RBC Capital

RBC Capital initiated coverage of Extra Space Storage with a Sector Perform rating and $180 price target. The company offers some of the highest platform value in REITs given its position as the largest third-party storage manager, but the new store additions are unlikely to track above historical levels, which leads to smaller accretion levels given Extra Space Storage’s larger post-merger size, the analyst tells investors in a research note. The REIT’s variable rate leverage profile is also partially offset by headwinds from the bridge loan program, while the valuation on the stock is seen as “fair”, the firm added.