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Extra Space Storage (EXR)
NYSE:EXR
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Extra Space Storage
(NYSE:EXR)
74Outperform
Positive Factors
Financial performance
EXR reported core FFO of $2.07 compared with consensus of $2.04, indicating a positive surprise in financial performance.
Occupancy rates
Average same store occupancy was 94.1% in 4Q24, up 70 basis points year-over-year, indicating improved occupancy.
Negative Factors
Earnings guidance
EXR released initial 2025 guidance which implies 0.4% Core FFO growth y/y, slightly below consensus expectations.
Revenue outlook
EXR cut its same-store revenue outlook for LSI, with updated guidance implying LSI same-store revenues turn slightly negative in Q4.
Extra Space Storage (EXR) vs. S&P 500 (SPY)
Market Cap
$31.28B
Dividend Yield4.59%
Average Volume (3M)1.29M
Price to Earnings (P/E)35.0
Beta (1Y)0.78
Revenue Growth27.21%
EPS Growth-18.39%
CountryUS
Employees8,012
SectorReal Estate
Sector Strength78
IndustryREIT - Industrial
Share Statistics
EPS (TTM)4.03
Shares Outstanding212,225,360
10 Day Avg. Volume1,372,578
30 Day Avg. Volume1,285,433
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)9.36
Price to Cash Flow (P/CF)18.70
P/FCF Ratio21.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$162.85Price Target Upside15.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
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 Financial Statement Overview
Summary
Extra Space Storage maintains a strong financial position with robust revenue growth, a zero-debt strategy, and solid cash flow generation. However, the high equity ratio indicates potential under-leverage.Income Statement
Extra Space Storage has demonstrated strong revenue growth, with a significant increase from $1.31 billion in 2019 to $3.26 billion in 2024. Gross profit margins remain robust at 100% due to the nature of REITs, and net profit margins have been stable around 25-26% over recent years. EBIT and EBITDA margins are also strong, indicating efficient operational management. The company’s consistent revenue and profit growth trajectory reflect effective management and market demand.85
Very Positive
Balance Sheet
The balance sheet of Extra Space Storage shows a healthy equity position with stockholders' equity at $13.95 billion in 2024. The company has no debt in 2024, which is a significant strength, but the equity ratio indicates a moderate reliance on equity funding. The return on equity (ROE) remains strong, reflecting effective use of equity capital. The balance sheet stability is solid, though a high equity ratio suggests potential under-leverage.78
Positive
Cash Flow
The cash flow statement of Extra Space Storage highlights a robust free cash flow generation, showing a growth from $0.70 billion in 2019 to $1.89 billion in 2024. The operating cash flow to net income ratio is healthy, demonstrating strong cash conversion from earnings. Free cash flow growth rate reflects strong operational cash generation, supporting dividend payouts and potential reinvestments.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.26B | 2.56B | 1.92B | 1.58B | 1.36B |
| Gross Profit | ||||
| 2.35B | 1.89B | 1.46B | 1.18B | 969.10M |
| EBIT | ||||
| 1.32B | 1.17B | 1.05B | 975.95M | 666.14M |
| EBITDA | ||||
| 2.31B | 1.79B | 1.33B | 1.11B | 894.87M |
| Net Income Common Stockholders | ||||
| 854.68M | 803.20M | 860.69M | 827.65M | 481.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 138.22M | 99.06M | 92.87M | 71.13M | 109.12M |
| Total Assets | ||||
| 28.85B | 27.46B | 12.17B | 10.47B | 9.40B |
| Total Debt | ||||
| 13.03B | 11.25B | 7.56B | 6.19B | 6.01B |
| Net Debt | ||||
| 12.89B | 11.15B | 7.47B | 6.12B | 5.90B |
| Total Liabilities | ||||
| 13.99B | 12.04B | 8.09B | 6.69B | 6.46B |
| Stockholders Equity | ||||
| 13.95B | 14.39B | 3.26B | 3.12B | 2.55B |
| Cash Flow | Free Cash Flow | |||
| 1.89B | 1.39B | 1.22B | 948.78M | 764.14M |
| Operating Cash Flow | ||||
| 1.89B | 1.40B | 1.24B | 952.44M | 771.23M |
| Investing Cash Flow | ||||
| -1.65B | -1.82B | -1.65B | -837.54M | -955.43M |
| Financing Cash Flow | ||||
| -202.29M | 423.13M | 431.86M | -166.71M | 241.47M |
Extra Space Storage Technical Analysis
Neutral
141.18
Price Trends
147.44
Negative
150.23
Negative
157.21
Negative
Market Momentum
-3.01
Negative
49.27
Neutral
77.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXR, the sentiment is Neutral. The current price of 141.18 is above the 20-day moving average (MA) of 140.62, below the 50-day MA of 147.44, and below the 200-day MA of 157.21, indicating a neutral trend. The MACD of -3.01 indicates Negative momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 77.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $51.93B | 27.83 | 21.01% | 4.05% | 3.94% | -3.81% | |
74 Outperform | $31.28B | 35.01 | 6.02% | 4.59% | 27.21% | -18.39% | |
72 Outperform | $9.11B | 22.98 | 13.80% | 5.18% | 1.51% | -5.16% | |
71 Outperform | $1.46B | 9.34 | 8.20% | 14.72% | -0.32% | -4.24% | |
66 Neutral | $58.73M | 27.70 | 4.36% | 5.60% | 2.79% | -28.56% | |
60 Neutral | $4.96B | 31.03 | 8.92% | 6.15% | -10.22% | -27.58% | |
59 Neutral | $2.71B | 11.71 | 0.09% | 8691.97% | 5.58% | -17.58% |
* Real Estate Sector Average
Performance Comparison
EXR
Extra Space Storage
141.18
13.77
10.81%
CUBE
Cubesmart
39.57
-0.72
-1.79%
PSA
Public Storage
296.01
44.50
17.69%
NSA
National Storage Affiliates
36.76
3.21
9.57%
IIPR
Innovative Industrial Properties
51.61
-36.55
-41.46%
SELF
Global Self Storage
5.18
1.10
26.96%
Extra Space Storage Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -11.47% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong occupancy levels, strategic growth in third-party management, and successful investment activities. However, it also noted declines in same-store revenue and NOI due to increased property taxes and external challenges like the LA wildfires. While the company is optimistic about its strategic repositioning and ancillary revenue growth, cost pressures and market uncertainties persist.Highlights
Steady Occupancy and Improved New Customer Rates
Near-record occupancy levels were maintained, and the rate gap to new customers improved from negative 9% in Q3 to negative 6% by year-end 2024.
Growth in Third-Party Management Program
The third-party management program grew by 114 net new stores in Q4, with a total of 238 net new managed stores for the year, marking the best year for third-party growth excluding Life Storage merger gains.
Strategic Investments and Capital Allocation
Invested $950 million in joint ventures and other investments, with $610 million in Q4 alone. Bridge loan origination totaled $980 million for the year.
Rebranding to Extra Space
Concluded dual-brand test, resulting in marketing savings and increased rental activity, with former Life Storage stores expected to outperform legacy Extra Space properties in 2025.
Strong Financial Position
Completed $300 million and $350 million bond reopenings, initiated a $1 billion commercial paper program, enabling lower borrowing costs.
Lowlights
Same-Store Revenue and NOI Decline
Same-store revenue decreased by 0.4%, and same-store NOI was negative 3.5% due to higher-than-expected property taxes.
Challenges with Uncontrollable Expenses
Property taxes increased by 9.5% in Q4, particularly in Illinois, Georgia, and Indiana, impacting same-store expenses.
LA Wildfire Impact on Guidance
State of emergency restrictions in Los Angeles County are modeled to cause a 20 basis point revenue headwind in 2025.
Company Guidance
During the Extra Space Storage Q4 2024 earnings call, several key metrics and guidance were highlighted. Core FFO for the quarter was reported at $2.03 per share, with full-year core FFO at $8.12 per share. The company maintained near-record occupancy levels and narrowed the year-over-year rate gap to new customers from negative 9% in Q3 to negative 6% by year-end. Same-store revenue saw a slight decrease of 0.4%, while same-store NOI decreased by 3.5% due to higher-than-expected property taxes. In terms of external growth, Extra Space Storage invested $950 million in various ventures, including $610 million in Q4 alone, and originated $224 million in bridge loans, totaling $980 million for the year. The third-party management program added 114 net new stores in Q4, reaching a total of 238 net new managed stores for the year. The company's 2025 guidance projects same-store revenue growth between negative 0.75% and positive 1.25%, with expense growth between 3.75% and 5.25%, resulting in an NOI range of negative 3% to positive 0.25%. Core FFO for 2025 is expected to range from $8.00 to $8.30 per share, implying a growth rate of up to 2% at the top end.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.